Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 7 January 2021
Statement from U.S. Attorney Andrew E. Lelling on Breach of U.S. CapitolRead the Press Release
“Yesterday’s events in Washington were shocking and, once peaceful demonstrations turned violent, they became criminal. The Constitution protects the right to freedom of speech and assembly. What is does not protect is a violent assault on government institutions. Americans on the right and left must re-learn the difference. Anyone who traveled from Massachusetts with the intent to commit such crimes will be prosecuted in the District of Massachusetts.”
Statement of U.S. Attorney James P. Kennedy, Jr.Read the Press Release
“We have received a number of leads and tips regarding yesterday’s events at the Capitol Building. Working with our law enforcement partners, we are actively investigating the information we have obtained. Should we determine that there is a legal nexus between the crimes committed at the Capitol and our jurisdiction, we will not hesitate to charge those responsible. Violence is never an acceptable means of protest. We are one Nation, and as such, the unity which comes from a shared respect for both the rule of law and one another represents our only hope for lasting solutions to the challenges we face. Escalating hostility and violence diminishes us all.”
# # # #
Statement of Acting United States Attorney Regarding Yesterday’s Activities at the U.S. Capitol BuildingRead the Press Release
HARRISBURG – Acting United States Attorney Bruce D. Brandler provides the following statement:
“The violence and destruction that occurred yesterday at our Nation’s Capitol Building was reprehensible and repugnant. Our office will prosecute to the fullest extent of the law any individual who traveled from the Middle District of Pennsylvania to Washington D.C. with the intent to incite or commit those violent and destructive acts. We also stand ready to assist our law enforcement partners to identify any individual who committed any federal offense connected to those abhorrent activities.”
# # #
Statement by U.S. Attorney J. Douglas Overbey on Protecting the Constitution and Upholding the Rule of LawRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey joins Acting Attorney General Jeffrey A. Rosen and other U.S. Attorneys in the continued commitment to protect the Constitution and uphold the Rule of Law under all circumstances.
“I am shocked and appalled by the mob violence that occurred yesterday in our nation’s Capitol,” said U.S. Attorney J. Douglas Overbey. “As the United States Attorney for the Eastern District of Tennessee, I took an oath to protect and defend the Constitution of the United States, which carries with it a duty to uphold the Rule of Law.”
“Our office remains dedicated to preserving the public’s constitutional right to peaceably assemble, demonstrate, and petition the government for a redress of grievances. However, it is also our duty to protect citizens from violence and criminal activity. Accordingly, where appropriate under the facts, our office will consider the prosecution of those whose conduct crosses the line from peaceful protest to violence and other criminal activity in violation of federal law.”
###
Sioux Falls Man Sentenced to 20 Years in Federal Prison for Trafficking Heroin that Led to Fatal OverdoseRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man charged with Distribution of a Controlled Substance Resulting in Death pled guilty and was sentenced on January 5, 2021, by District Judge Lawrence L. Piersol.
Aaron Anthony Wodzinski, age 24, was sentenced to 240 months in federal prison, followed by three years of supervised release, and $100 to the Federal Crime Victims Fund.
Wodzinski was indicted by a federal grand jury on March 10, 2020.
The conviction stems from an incident that took place in November 2018, when Wodzinski knowingly and intentionally distributed heroin to an individual in Sioux Falls who used that heroin, overdosed, and died.
The investigation was conducted by the Sioux Falls Area Drug Task Force, United States Customs and Border Patrol, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Jennifer D. Mammenga.
Wodzinski was remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 10 Years for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on January 5, 2021, by U.S. District Judge Lawrence L. Piersol.
Matthew Edmond Donegan, age 23, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Donegan was indicted by a federal grand jury on February 4, 2020. He pled guilty on October 21, 2020.
The conviction stemmed from an incident on December 16, 2019, when Donegan was arrested in possession of 144 grams of methamphetamine, which was tested and found to be 97% pure. Donegan intended for some, or all, of that methamphetamine to be distributed.
This case was investigated by the Sioux Falls Police Department, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Donegan was immediately turned over to the custody of the U.S. Marshals Service.
Seven People Charged with Trafficking Cocaine in the Fox ValleyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that seven defendants have been charged with offenses related to a conspiracy to distribute large amounts of cocaine in the Fox Valley in Wisconsin.
Name
Charge(s)
Residence
Luis A. Morales (40)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Possession with Intent to Distribute at least 500 Grams of Cocaine
Felon in Possession of a Firearm
Appleton, WI
Eduardo F. Morales (26)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Rialto, CA
Sandra M. Munoz (36)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Appleton, WI
Jennifer Almeida-Sandoval (30)
Possession with Intent to Distribute at least 500 Grams of Cocaine
Hilbert, WI
Javier Guzman-Becerra (32)
Conspiracy to Distribute at least 500 Grams of Cocaine
Menasha, WI
Frank DiMatteo (66)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
New London, WI
Cory J. Ulrich (42)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Appleton, WI
According to the criminal complaint, Luis Morales is the owner of several restaurants in the Fox Valley, including Mr. Taco (Appleton, Kimberly, and Hilbert locations) and Savor Food & Spirits.
The investigation revealed that Luis Morales and his co-conspirators distributed numerous kilograms of cocaine in the Appleton, Wisconsin area since June of 2019. On several occasions, Luis Morales arranged for employees of Mr. Taco to distribute and accept payments for large amounts of cocaine at the Mr. Taco (Kimberly) restaurant. During the takedown on December 2, 2020, over two kilograms of cocaine were seized from Luis Morales’ vehicle and residence.
If convicted, Luis Morales, Eduardo Morales, Sandra Munoz, Frank DiMatteo, and Cory Ulrich face a mandatory minimum of 10 years and up to life in prison. Jennifer Almeida-Sandoval and Javier Guzman-Becerra face a mandatory minimum of 5 years and up to 40 years in prison.
“Drug-trafficking organizations harm our communities by maintaining arsenals of weapons and fueling addiction,” said United States Attorney Krueger. “This case underscores the extraordinary cooperation among federal, state, and local law enforcement to combat drug trafficking in Wisconsin.”
“The Drug Enforcement Administration (DEA) is committed to working with its local, state and federal law enforcement partners to keep Wisconsin citizens safe from the distribution of illegal drugs and the violence that is always associated with it,” said DEA Special Agent in Charge Robert J. Bell. “This indictment shows the resolve of law enforcement to bring to justice those who profit from drug trafficking.”
“Outstanding work by agents with Wisconsin DOJ’s Division of Criminal Investigation and local and federal law enforcement led to the arrests in this case and seizures of large quantities of narcotics,” said Wisconsin Attorney General Josh Kaul. “This case is a great example of the impact that enforcement efforts focused on large-scale drug trafficking can have.”
The defendants were charged based on a multi-year investigation led by law enforcement agents and officers from the Drug Enforcement Administration – Green Bay Residential Office (DEA-GBRO), the Lake Winnebago Area Metropolitan Enforcement Group – Drug Unit (LWAM), and the Wisconsin Department of Justice – Division of Criminal Investigation (DCI). Several other law enforcement agencies assisted throughout this investigation, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wisconsin National Guard Counterdrug Program, the Wisconsin State Patrol, the Appleton Police Department, the Calumet County District Attorney’s Office, the Fond du Lac County District Attorney’s Office, and the Outagamie County District Attorney’s Office. Assistant United States Attorney Alex Duros and Assistant United States Attorney William Roach are prosecuting the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Saturday, January 9, 2020 Law Enforcement Appreciation DayRead the Press Release
Spokane – William D. Hyslop, U.S. Attorney for the Eastern District of Washington, announced that this Saturday, January 9th, 2021, is National Law Enforcement Appreciation Day. This day was established to thank and show support to our local law enforcement officers for their dedication to duty and service to their communities.
U.S. Attorney Hyslop stated, “Each and every day, our law enforcement officers put on their uniforms and leave the safety of their homes and the comfort of their families to protect and serve our communities. National Law Enforcement Appreciation Day is a time to show them we appreciate their sacrifice and that we stand with them as they work to make our communities safe and secure. I ask everyone to send a note of thanks to their local law enforcement agency; their addresses are readily available online. And when you see an officer, wave to them and say ‘Thank you for all you do.”
Hyslop added, “The U.S. Attorney’s Office works closely with all federal, state, local and tribal law enforcement. We can’t complete the work we do without the support of our law enforcement partners. We appreciate them every day. We’re asking the residents of Eastern Washington to say Thank You this Saturday.”
Please take time this Saturday, January 9th, 2021 to show your appreciation to the law enforcement professionals by:
- Wear blue in support of law enforcement
- Send a card or letter of support to your local police department, county sheriff, tribal or state agency
- Tell an officer “Thank You”
- Share a story about a positive law enforcement experience on social media
- Participate in Project Blue Light – Proudly display your blue light in support of law enforcement
- Turn your social media channel blue
- Fly a blue ribbon on your car antenna, mailbox, or anywhere a ribbon can be tied
Most importantly, if you see a police officer, thank a police officer.
Russian Hacker Sentenced to 12 Years in Prison for Involvement in Massive Network Intrusions at U.S. Financial Institutions, Brokerage Firms, A Major News Publication, and Other CompaniesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” was sentenced in Manhattan federal court to 144 months in prison for computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies. TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” Joshua Samuel Aaron, a/k/a “Mike Shields,” and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators. TYURIN previously pled guilty to these charges, and was sentenced today before U.S. District Judge Laura Taylor Swain.
Acting U.S. Attorney Audrey Strauss said: “From his home in Moscow, Andrei Tyurin played a major role in orchestrating and facilitating an international hacking campaign that included one of the largest thefts of U.S. customer data from a single financial institution in history, stealing the personal information of more than 80 million J.P. Morgan Chase customers. The conspiracy targeted major financial institutions, brokerage firms, news agencies, and other companies, and netted Tyurin over $19 million in criminal proceeds. Now Tyurin has been sentenced to 12 years in prison for his crimes.”
According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:
From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S. (including but not limited to J.P. Morgan Chase Bank, E*Trade, Scottrade, and the Wall Street Journal), and was responsible for the theft of personal information of over 100 million customers of the victim companies. TYURIN’s hack of J.P. Morgan Chase Bank alone resulted in the theft of personal information of over 80 million customers. TYURIN engaged in these crimes at the direction of his partner Gery Shalon, and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States. For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.
In addition to the U.S. financial sector hacks, from approximately 2007 to mid-2015 TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors. Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns. TYURIN’s hacking activity included the targeting of companies known to be used for email marketing campaigns, competitor online casinos, and a merchant risk intelligence firm based in the United States, in order for the co-conspirators to monitor the firm’s efforts to audit potentially criminal online credit card transactions on behalf of major credit card networks, and thus avoid detection of their own criminal schemes.
In furtherance of his hacking activities, TYURIN used computer infrastructure located across five continents, which he controlled from his home in Moscow, and maintained persistent access over extended periods of time to the victims’ networks, regularly refreshing the stolen data by repeatedly downloading information from these companies. And once his hacking activities were detected, TYURIN worked with Shalon to destroy the evidence of their criminal activity and undermine U.S. law enforcement’s efforts to identify and arrest them.
Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds, and TYURIN himself earned over $19 million in profits from his hacking activity.
* * *
TYURIN, 37, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, and one count of conspiracy to commit wire fraud and bank fraud. In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, and one count of conspiracy to commit computer hacking, from charges that were transferred from the Northern District of Georgia for purposes of his plea. In addition to the prison term, Judge Swain ordered TYURIN to serve three years of supervised release, and to pay forfeiture in the amount of $19,214,956. The Court will determine TYURIN’s restitution obligations at a hearing scheduled for April 6, 2021. TYURIN has been in U.S. custody since he was extradited from the country of Georgia in September 2018, and will commence serving his sentence immediately.
* * *
Ms. Strauss praised the investigative work of the FBI and the U.S. Secret Service, and expressed her sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings. She also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.
Rankin Man Sentenced to 5 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania has been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of five years of imprisonment, followed by five years of supervised release, on Marcell Sewell, 60, of Rankin, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Law enforcement identified several individuals who were illegally distributing controlled substances in the Greater Pittsburgh Region, as members of a neighborhood-based street gang, self-titled "SCO" and whose leader was identified as Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. As a result of this investigation, Sewell, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that early in the investigation, Mr. Sewell was identified as an associate of SCO and, in particular an associate of Howard McFadden. Investigators observed Mr. Sewell meeting with Howard McFadden at a stash house location on Seddon Avenue, via pole camera footage. Once law enforcement began intercepting communications, in January of 2019, the government confirmed that these meetings pertained to drug trafficking. Mr. Sewell was intercepted communicating with Howard McFadden, discussing their drug customers and drug-trafficking businesses. Mr. Sewell regularly met with Howard McFadden at various locations, in and around Braddock, to obtain cocaine and cocaine base from Howard McFadden and/or to pay him. Mr. Sewell admitted to conspiring to distribute 182 grams of cocaine and 114 grams of cocaine base.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Sewell.
Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Pocahontas County man facing several firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Julian N. Waddell, of Durbin, West Virginia, appeared in federal court today to face several firearms charges, U.S. Attorney Bill Powell announced.
Waddell, 36, was indicted by a federal grand jury sitting in Wheeling in October 2020. He is facing four counts of “Unlawful Possession of a Firearm” and one count of “Unlawful Possession of an Unregistered Firearm.” Waddell, a person who isn’t permitted to have a firearm because of a prior conviction, is accused of having three revolvers, a shotgun, a semi-automatic rifle, and an unregistered silencer from April to August 2019 in Pocahontas County.
Waddell is facing up to 10 years of incarceration and a fine of up to $250,000 for each of the first four counts and face up to 10 years of incarceration and a fine of up to $10,000 for the unregistered firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mountain Region Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Michael John Aloi presided.
Pittsburgh Man Charged with Threatening Communications and Impeding FBI InvestigationRead the Press Release
PITTSBURGH – Khaled Miah, 27, a resident of Pittsburgh, Pennsylvania, and former student at the University of Pittsburgh, has been charged by federal criminal complaint with one count of making interstate threatening communications, one count of influencing, impeding or retaliating against a Federal law enforcement officer, and one count of destruction of records in a federal investigation, United States Attorney Scott Brady announced today. Miah was arrested on Wednesday and made an initial appearance in U.S. District Court via video teleconference. A preliminary and detention hearing is scheduled for tomorrow, January 8, 2021, at 10 a.m., before Chief Magistrate Judge Cynthia Eddy.
"Khaled Miah’s use of multiple Twitter accounts to threaten and harass federal law enforcement officers and their family members and to obstruct a federal investigation are clear violations of federal law," said U.S. Attorney Brady. "We will not hesitate to pursue and prosecute individuals who cross the line from interest to intimidation."
"This arrest is the culmination of a year-long investigation which included threatening federal law enforcement officers," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Threatening online statements, whether directed to a federal officer or any other person, is not harmless activity. It is serious criminal activity with consequences. Threats against law enforcement officers are particularly egregious in that it interferes with our ability to protect the communities we are charged with serving. We should all understand that the First Amendment is not a license to threaten others with harm and that the FBI and our law enforcement partners will relentlessly pursue those who pose a threat to the community."
According to an affidavit filed in U.S. District Court in Pittsburgh, on or about December 27, 2020, Miah posted threats directed at individual FBI agents who were investigating him, as well as the FBI generally. In December 2020, FBI personnel identified a publicly visible Twitter account created by Miah. From the date of its creation to on or about January 1, 2021, Miah used this Twitter account to threaten, intimidate and harass FBI Pittsburgh Agents and the FBI. In addition, after posting the threatening statements, and with full knowledge of the FBI investigation into his conduct, Miah subsequently deleted those posts which impeded, obstructed, and influenced the FBI investigation.
Specifically, as referenced in the criminal complaint, among other statements, Miah posted the following statement on Twitter: "Currently eating pasta and watching videos of the secind plane hit the south tower."
Based upon their lengthy investigation of Miah, the FBI assessed that by referring to watching "videos of the second plane hit the south tower," Miah was referring to the coordinated Al-Qaeda terrorist attacks of September 11, 2001, at which time two commercial airplanes were hijacked and crashed into the North and South towers of the World Trade Center in New York City. As a result, the North and South towers ultimately burned and collapsed causing the deaths of more than 2900 people. Miah went on to state that "the deed will be done, at a time which is most opportunistic for me, chosen by myself."
Miah additionally commented on December 29, 2020, that the "zero hour" was approaching and posted the geographic location of FBI Headquarters in Washington, D.C. According to the criminal complaint affidavit, Miah also traveled to Washington, D.C., and was surveilled on at least 11 occasions in the immediate vicinity of the FBI headquarters building in Pittsburgh between November 1, 2020, and January 3, 2021.
The criminal complaint affidavit also details that, after seizing and searching Miah’s electronic devices pursuant to a federal search warrant, FBI’s forensic analysis revealed that Miah apparently idealized the Boston Marathon Bombers, Tamerlan and Dzhokhar Tsarnaev, and visited several landmarks in Massachusetts associated with the bombings, including where each of the two bombings took place, where the Tsarnaev brothers participated in a violent shootout with local police, and the gym where Tamerlan Tsarnaev previously trained in mixed martial arts.
Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, University of Pittsburgh Police Department, Pittsburgh Bureau of Police, Allegheny County Police Department, Allegheny County Port Authority Police, Pennsylvania State Police, Allegheny County Probation, the Department of Homeland Security, and the Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorneys Jessica Lieber Smolar and Soo C. Song of the Western District of Pennsylvania.
Charges pursuant to a criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Passaic County Man Sentenced to 63 Months for Role in Fentanyl ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 63 months in prison for conspiring to distribute fentanyl and distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Keith Brinkley, a/k/a “K Murder,” 30, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to fentanyl and knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Brinkley and his conspirators are all members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Brinkley and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Brinkley to three years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Owner of Westwego, Louisiana Accounting Business Pleads Guilty to Tax Fraud ChargesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Henry J. Timothy, 69, of Westwego, pleaded guilty in United States District Court to four counts of tax fraud.
Timothy is the owner and sole tax preparer for B&B Accounting Services, located in Westwego, Louisiana. He operates his business out of his home and has been a tax preparer since 2012. According to information presented to the court at the guilty plea hearing, Timothy admitted to preparing and electronically submitting false and fraudulent U.S. Individual Tax Returns on behalf of himself and his wife for the tax years of 2013, 2014, 2015 and 2016.
Timothy purposefully omitted approximately $83,304 in gross receipts for year 2013; $80,932 in gross receipts for year 2014; $73,391.79 in gross receipts for year 2015; and $82,592 in gross receipts for year 2016 from Schedule C of his 1040 U.S. Individual Tax Returns where the gross receipts are listed. The omission of this income resulted in an additional tax liability of $88,593. As a tax preparer, Timothy was well aware that he had to list all of his gross receipts but failed to do so in order to reduce his tax liability.
Timothy faces a maximum penalty of up to 3 years in prison, a $100,000 fine, or both, at sentencing. The sentencing hearing has been set for April 15, 2021 at 2:00.
The Internal Revenue Service and FBI conducted the investigation and Assistant United States Attorneys Kelly P. Uebinger and David J. Ayo are prosecuting the case.
# # #
Ohio men admit to roles in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Dominique Revell Dungey, of Martins Ferry, Ohio, and Denico Anderson, of Columbus, Ohio, have admitted to their roles in a drug trafficking conspiracy, U.S. Attorney Bill Powell announced.
Dungey, also known as “Murda,” age 29, pled guilty to one count of “Distribution of Cocaine Base.” Dungey admitted to selling cocaine base, also known as “crack,” in May 2019 in Ohio County.
Anderson, also known as “Tone,” age 23, pled guilty to one count of “Distribution of Methamphetamine.” Anderson admitted to selling methamphetamine in September 2019 in Ohio County.
Dungey and Anderson each face 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Ohio Man Pleads Guilty to Armed Robbery of Robinson Twp. BankRead the Press Release
PITTSBURGH, PA- A former resident of Wintersville, Ohio, pleaded guilty in federal court to an armed bank robbery charge, United States Attorney Scott W. Brady announced today.
Montague Howard, 33, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was informed that on January 15, 2020, Howard entered the First Commonwealth Bank located at 198 Park Manor Drive, Pittsburgh, PA 15205, approached each of the three tellers and pointed a bb gun in their direction, requesting that they give him all the money. In all, Howard took $8,583.00 from the bank. Howard fled from the bank in a vehicle. Later that day, Howard was stopped by law enforcement in the get-away vehicle, and investigators located a black garbage bag containing all but $20.00 of the stolen money. Howard, after waiving his rights, confessed to committing the bank robbery and informed law enforcement where they could find the clothing, shoes and mask he wore during the bank robbery as well as the bb gun that he used during the robbery.
Sentencing has not yet been scheduled. The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Howard remains incarcerated pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation the Robinson Township Police Department and the Wintersville Police Department conducted the investigation leading to the Indictment in this case.
New Hampshire Man Sentenced for Financial Fraud Scheme Using Stolen IdentitiesRead the Press Release
BOSTON – A New Hampshire man was sentenced today in connection with engaging in a complex scheme to conduct fraudulent financial transactions using stolen account information and other personally identifiable information (PII) of victims in Massachusetts and elsewhere throughout the United States.
Jonathan Nguyen, 23, of Windham, N.H., was sentenced by U.S. District Court Judge Allison D. Burroughs to a year and a day in prison, two years of supervised release and ordered to pay $250,000 in forfeiture. In June 2020, Nguyen pleaded guilty to conspiring to engage in wire fraud, access-device fraud and identity theft.
Nguyen and others involved in the scheme used Bitcoin to purchase names, addresses, dates of birth, Social Security numbers, email addresses and passwords as well as credit card account numbers, expiration dates, card verification values and other forms of PII. Nguyen and others then used this information to purchase tickets to sporting events and gift cards that Nguyen sold for profit. Nguyen also created e-commerce websites for sham companies and obtained payment-card processing capabilities for these sham companies in order to cash out the stolen credit cards. He used various technological means to thwart the fraud-detection mechanisms deployed by the internet merchants where he made purchases with the stolen PII.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by U.S. Customs and Border Protection. Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Missoula man sentenced to prison for illegal possession of firearmRead the Press Release
MISSOULA — A Missoula man who admitted illegally possessing a gun after having been convicted of a felony was sentenced today to 30 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Roosevelt Kenneth Thompson, 35, pleaded guilty on Sept. 11, 2020 to prohibited person in possession of a firearm.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court documents that a Missoula Police Department officer stopped a vehicle in which Thompson was riding on Feb. 4, 2020. The officer learned from dispatch that Thompson was on parole. The driver informed the officer that Thompson had a gun on his person. Thompson had prior felony convictions. The officer had Thompson exit the vehicle, and Thompson informed the officer of the gun. Officers located a .45-caliber gun in a holster on Thompson’s chest.
Assistant U.S. Attorney Jennifer Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
XXX
McKees Rocks Woman Sentenced to 12 Years in Prison for Drug Trafficking in the Greenway ProjectsRead the Press Release
PITTSBURGH - A resident of McKees Rocks, PA, has been sentenced in federal court to 144 months’ imprisonment on her convictions of conspiracy to distribute crack cocaine, conspiracy to distribute heroin, and conspiracy to distribute cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Tamra Moore, age 37.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Tamra Moore conspired to distribute quantities of crack cocaine, heroin, and cocaine primarily in and around the area of the Greenway Projects.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Moore.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Troy Cote, 52, of Manchester, pleaded guilty in federal court on Wednesday to fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Cote was part of a drug trafficking organization that sold fentanyl and cocaine to customers in Manchester. In July 2019, a cooperating individual purchased fentanyl from Cote. The investigation revealed that Cote had sold drugs as part of a drug trafficking organization on numerous occasions.
Cote is scheduled to be sentenced on April 16, 2021. Rosemarie Cote pleaded guilty on November 25, 2020 and awaits sentencing. Christopher Juneau pleaded guilty on September 28, 2020 and awaits sentencing. Two other defendants are scheduled to go to trial in March.
“Criminal drug trafficking organizations make dangerous substances like fentanyl and cocaine available for purchase in New Hampshire,” said U.S. Attorney Murray. “Their illegal activities undermine public health and safety, diminishing the quality of life for all who are impacted. I am grateful for the strong enforcement action taken by the FBI Safe Streets Gang Task Force in this case. By facilitating cooperation between federal, state and local law enforcement agencies they make the Granite State a safer place.”
“This group’s constant churn of drug transactions kept their customers in Manchester awash in deadly fentanyl and cocaine. Shutting them down makes the community safer, and with today’s guilty plea---Troy Cote is out of business,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Investigations like this illustrate the continuing impact our Safe Streets Gang Task Force has on illegal drug trafficking organizations that prey on our communities amid the opioid epidemic.”
This matter was investigated by the FBI NH Safe Streets Gang Task Force which is comprised of the Federal Bureau of Investigation, New Hampshire State Police, Dover Police Department, Portsmouth Police Department, and Nashua Police Department. The Manchester Police Department provided valuable assistance as well. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald and Assistant U.S. Attorney Aaron Gingrande.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Man Who Sold Midland/Odessa Shooter AR-15 Used in Massacre Sentenced for Unlicensed Firearms DealingRead the Press Release
The man who sold the AR-15 used to gun down 32 people in Midland and Odessa, Texas has been sentenced to two years in federal prison, announced U.S. Attorney Erin Nealy Cox.
Marcus Anthony Braziel, 45, of Lubbock, Texas, pleaded guilty in October to one count of dealing firearms without a license and one count of subscribing to a false tax return. He was sentenced Thursday to 24 months in federal prison by U.S. District Judge James Wesley Hendrix.
“Federal firearm laws, including those that mandate background checks by licensed dealers, ensure that guns don’t fall into the hands of prohibited persons,” said U.S. Attorney Erin Nealy Cox. “By subverting those laws, Mr. Braziel enabled a deranged mass shooter. We hope this case sends a message: The U.S. Department of Justice will not give unlicensed dealers a pass. To do so would endanger our communities.”
“Knowingly dealing firearms without a license is a significant crime and often times leads to extreme violence. In this particular case, Mr. Braziel’s acts were implicit in the murders of seven innocent victims. In subverting the law, an individual otherwise prohibited from obtaining firearms was able to purchase a gun from Mr. Braziel. ATF will continue to do whatever necessary to keep firearms out of the hands of those that should not have them,” said ATF Special Agent in Charge of the Dallas Field Office Jeffrey C. Boshek II.
According to plea papers, Mr. Braziel admitted he sold Midland Odessa shooter Seth Aaron Ator an AR-15-style rifle on October 8, 2016 – nearly three years before Mr. Ator used the gun to murder seven people and wound 25 more.
Mr. Ator, who had been adjudicated “mentally defective” and was therefore legally prohibited from possessing firearms, first attempted to purchase a gun from a sporting goods store, but was rejected after the National Instant Criminal Background Check System (NICS) flagged his mental status. He later circumvented the NICS system by purchasing a gun from Mr. Braziel, who elected not to run background checks on any of his buyers.
Background checks are not necessarily required for in-state, private transfers. However, Mr. Braziel admitted he was “engaged in the business of selling firearms” – repeatedly devoting time and attention to purchasing and reselling guns for pecuniary gain – and thus should have been licensed and conducting background checks.
In his plea papers, Mr. Braziel admitted he routinely bought firearm firing mechanisms (termed “lower receivers”), used milling equipment to build them into full-fledged guns, and then sold the completed weapons for roughly $100 - $200 profit. He said he typically listed his firearms for sale on Armslist.com and conducted the sales in the parking lot of a local sporting goods store or out of his garage.
In a four-year span, Mr. Braziel inadvertently sold firearms to four prohibited persons: a convicted felon, an man under felony indictment, an immigrant in the U.S. illegally, and Mr. Ator, a man who the courts deemed unfit to possess a firearm.Agents traced the lower receiver of the gun Mr. Braziel sold to Mr. Ator to Mulehead Dans, a federally licensed firearm dealer in Lubbock. The owner of Mulehead Dans confirmed that Mr. Braziel often purchased lower receivers and firearms there.
In addition to concealing his unlicensed dealing, Mr. Braziel admitted he also concealed the income from his firearms sales from the IRS.
“IRS-CI is dedicated to using the full strength of the federal government to ensure strict and lengthy sentences for those who violate our country’s tax laws. In this case, Mr. Braziel made illegal business decisions directly contributing to the death and injury of multiple civilians and today’s sentence reflects the courts’ acknowledgment of this preventable tragedy,” stated IRS-CI Acting Special Agent in Charge Mark Pearson, Dallas Field Office, who praised the joint efforts of the IRS-CI agents and their federal partners.
Mr. Braziel has been ordered to self-surrender to the Federal Bureau of Prisons by April 7, 2021.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, IRS-Criminal Investigations Division, the Federal Bureau of Investigation, Homeland Security Investigations, the United States Postal Inspection Service, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeffrey Haag, NDTX’s West Texas Branch Chief, is prosecuting the case.
Man Sentenced to Federal Prison for Transporting Illegal AlienRead the Press Release
St. Thomas, USVI – Courtney Matthias was sentenced today on his conviction for transporting an illegal alien, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Robert Molloy sentenced Matthias to a 24 month term of imprisonment, a 3 year term of supervised release, a $7,500 fine, and a $100 special assessment.
According to court documents filed in the case, on October 1, 2019, five aliens traveled by boat from Tortola to St. John, United States Virgin Islands, where they entered the United States without inspection at a place not designated as a point of entry. Matthias then transported several of those aliens in his vehicle to the ferry terminal in St. John. In addition, Matthias purchased a ferry ticket to St. Thomas for one of the aliens and boarded the ferry with her.
This case was investigated by Virgin Islands Port Authority, Homeland Security Investigations, and Customs and Border Protection. It was prosecuted by Assistant United States Attorney Adam Sleeper.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Wendy A. Eckert, 40, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for conspiracy to distribute methamphetamine. Chief United States District Judge John M. Gerrard sentenced Eckert to 17 years, six months in the Bureau of Prisons. There is no parole in the federal system. Eckert was also sentenced to a 10-year term of supervised release.
As a result of a traffic stop on October 23, 2019, the vehicle Eckert was driving was searched. Officers located about 28 grams of methamphetamine on her person, in an eyeglass case, and in the handle of a dog leash. Officers continued their investigation of her and found that between November 1, 2018 and October of 2019, she was responsible for the distribution of at least 2 kilograms (over 4 pounds) of methamphetamine in the Lincoln and Omaha areas. She had previously been convicted of possession with intent to distribute a controlled substance.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Justice Department Announces Civil Investigation into Chemical Restraint Use at Two Nevada Juvenile FacilitiesRead the Press Release
The Justice Department announced today that it has opened an investigation into the use of pepper spray at two juvenile correctional facilities run by the Nevada Juvenile Justice Services Agency: the Nevada Youth Training Center and the Summit View Youth Center. The investigation will examine whether staff at the two facilities use pepper spray in a manner that violates youth’s rights under the Constitution.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the constitutional rights of young people in juvenile detention and correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation. Individuals with relevant information are encouraged to contact the department via phone at 1- 833-591-0426 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Joint Statement of United States Attorney Erica MacDonald and FBI Special Agent in Charge Michael Paul on the Violence at the U.S CapitolRead the Press Release
The U.S. Attorney’s Office for the District of Minnesota and the FBI’s Minneapolis Field Office condemn the violence and terror that took place at our Nation’s Capitol and surrounding area. This was a reprehensible affront to our institution of democracy. We are committed to upholding the rule of law and will hold accountable any individual who traveled from the District of Minnesota to commit illegal, violent acts.
The FBI is seeking information that will assist in identifying individuals who are actively instigating violence in Washington, DC. The FBI is accepting tips and digital media depicting rioting and violence in the U.S. Capitol Building and surrounding area in Washington, DC, on January 6, 2021.
If you have witnessed unlawful violent actions, we urge you to submit any information, photos, or videos that could be relevant at fbi.gov/USCapitol
You may also call 1-800-CALL-FBI (1-800-225-5324) to verbally report tips and/or information related to this investigation.
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Illinois Man Sentenced to 20 Years in PrisonRead the Press Release
HAMMOND - Daniel Cooke, 32, of Mendota, Illinois was sentenced by United States District Court Judge Philip P. Simon to 240 months (20 years) in prison followed by a 15-year term of supervised release following his guilty plea to charges that he received and distributed child pornography featuring one minor and attempted to entice another minor to engage in sexually explicit conduct, announced Acting United States Attorney Gary T. Bell.
From December 2018 to February 2019, Mr. Cooke caused a 16-year-old minor to engage in sexually explicit conduct, including sadistic and masochistic conduct, for the purpose of producing and receiving visual depictions of that conduct. Then, from July to October 2019, Mr. Cooke attempted to persuade, induce, entice and coerce a person he believed to be a 14-year-old minor, but who was an undercover law enforcement officer, into likewise sending him sexually explicit depictions. On September 3, 2019, Mr. Cooke sent the undercover officer a sexually explicit video of his 16-year-old victim.
As part of his plea agreement, Mr. Cooke agreed to pay the 16-year-old victim restitution of $10,000 to compensate her for her reasonably projected psychotherapy costs, lost income while attending therapy, and her transportation (mileage) expenses associated therewith.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Jill R. Koster and Molly A. Kelley.
###
Houston man admits to hijacking interstate freight shipmentRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Houston man has entered a guilty plea to theft from an interstate cargo shipment, announced U.S. Attorney Ryan K. Patrick.
Maksims Klopovs admitted he was to be paid for picking up a large load of electronics originally set for delivery to a college in Corpus Christi
The investigation revealed that on June 17, 2019, authorities suspected a shipment of approximately $100,000 worth of computers and other electronics might be stolen. They were bound for Del Mar College in Corpus Christi.
After the shipment left the warehouse in Illinois, someone had changed the delivery instructions using an online system. Rather than deliver it directly to Del Mar College, the shipping company was asked to hold the load at their Corpus Christi warehouse for pickup.
Del Mar College did not request the change.
Klopovs arrived at the warehouse driving a rented U-Haul truck. He presented a fraudulent Texas driver’s license bearing his photo, but with the name Martin Smith. He also showed what was determined to be a fraudulent Del Mar College ID card with the title of Operations Manager also bearing his photograph and with the Smith name. He also had a Del Mar College business card in the name of Martin Smith.
Klopovs claimed the shipment and began to load the electronics into the rental truck. Authorities then took him into custody.
U.S. District Judge Nelva Gonzales Ramos will impose sentence April 6. At that time, Klopovs faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Klopovs has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Health Care Company Indicted for Labor Market CollusionRead the Press Release
A federal grand jury returned a two-count indictment charging Surgical Care Affiliates LLC and its related entity (collectively SCA), which own and operate outpatient medical care centers across the country, for agreeing with competitors not to solicit senior-level employees, the Department of Justice announced today. These are the Antitrust Division’s first charges in this ongoing investigation into employee allocation agreements.
“The charges demonstrate the Antitrust Division’s continued commitment to criminally prosecute collusion in America’s labor markets,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “A freely competitive employment market is essential to the health of our economy and the mobility of American workers. Along with our law enforcement partners, the division will ensure that companies who illegally deprive employees of competitive opportunities are not immune from our antitrust laws.”
“The charges demonstrate the FBI’s commitment to ensuring a free market and protecting opportunities for American workers,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “The FBI will continue to work with our partners to root out this type of illegal activity and deter employer collusion that harms the American people and workers.”
“Companies competing for top-level talent is the bedrock of the American labor market,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The Northern District of Texas is proud to partner with the Antitrust Division to prosecute Sherman Act violations.”
The indictment, filed in the U.S. District Court for the Northern District of Texas, Dallas Division, charges SCA with entering into and engaging in two separate bilateral conspiracies with other health care companies to suppress competition between them for the services of senior-level employees, in violation of the Sherman Act. Beginning at least as early as May 2010 and continuing until at least as late as October 2017, SCA conspired with a company based in Texas to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees. Beginning at least as early as February 2012 and continuing until at least as late as July 2017, SCA separately conspired with a company based in Colorado to allocate senior-level employees through a similar non-solicitation agreement.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a maximum penalty of a $100 million fine for corporations. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
Today’s announcement is the result of an ongoing federal investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the Washington Field Office of the FBI. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit https://www.justice.gov/atr/citizen-complaint-center.
Gang Member Sentenced to 3 Years in Prison for Selling Fentanyl and Crack in East HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE RESTREPO, also known as “Crack Baby,” 39, of East Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer to 36 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and crack cocaine. Judge Meyer also ordered Restrepo to serve the first six months his supervised release in home confinement.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, the FBI’s Northern Connecticut Gang Task Force has been investigating drug trafficking and related criminal acts being committed by members and associates of the Los Solidos and Latin Kings street gangs. Restrepo is a member of Los Solidos. The investigation revealed that Restrepo and other gang members were distributing fentanyl and crack cocaine in Hartford and surrounding communities. In March 2020, law enforcement learned that Restrepo was feuding with other members of Los Solidos and was selling narcotics in East Hartford. Investigators subsequently made three controlled purchases of crack and one controlled purchase of fentanyl from Restrepo in East Hartford.
Restrepo was arrested on March 17, 2020. At the time of his arrest, he possessed approximately 200 bags of fentanyl.
Restrepo has been detained since his arrest. On August 12, 2020, he pleaded guilty to possession with intent to distribute, and distribution of, fentanyl and cocaine base (“crack cocaine”).
Restrepo’s criminal history includes drug and firearm convictions, including a 2007 federal conviction for possession of a firearm by a convicted felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fort Mccoy Man Pleads Guilty to Possession of Illegal Firearm SilencerRead the Press Release
Ocala, Florida – Gary Dewayne Martin (31, Fort McCoy, FL) has pleaded guilty to possessing an unregistered firearm silencer. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Martin had been indicted on July 15, 2020.
According to the plea agreement, on September 20, 2019, law enforcement officers responded to Martin’s residence to investigate reports that he had been threatening individuals with a gun. Deputies located 37 firearms and large quantities of ammunition, including a .22 caliber rifle with a homemade silencer attached to the barrel. Martin subsequently admitted that the firearm and silencer belonged to him. Martin had never registered the silencer, nor sought permission to manufacture it, as is required under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Former deputy sentenced to federal prison for possessing child pornographyRead the Press Release
STATESBORO, GA: A former Bulloch County sheriff’s deputy has been sentenced to prison for possession of child pornography.
Travis Tuenge, 44, of Statesboro, was sentenced to 46 months in federal prison and fined $1,500 by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison sentence, Tuenge must serve five years of supervised release and register as a sex offender.
There is no parole in the federal system.
“Travis Tuenge’s deviant behavior victimized innocent children, even as he violated the public trust as a law enforcement officer,” said U.S. Attorney Christine. “We applaud the citizen who reported Tuenge’s crime, and the law enforcement agencies for their quick action in bringing him to justice.”
According to court documents and testimony, Tuenge – who served as a Bulloch County Superior Court security officer – came under investigation after the Bulloch County Sheriff’s Office received a report of Tuenge sending text messages in which he discussed victimization of children. With assistance from the Georgia Bureau of Investigation, investigators discovered images of child pornography on Tuenge’s cell phone.
“It is of utmost importance that public officials, especially sworn law enforcement officers, committing crimes be held accountable for their actions,” said Vic Reynolds, Director of the GBI. “The GBI remains committed to working with our local and federal partners to ensure that these type cases are aggressively investigated and prosecuted in order to maintain the faith and trust of the public.”
The case was investigated by the GBI and the Bulloch County Sheriff’s Office, with assistance from the U.S. Marshals Service Southeast Regional Fugitive Task Force, and was prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Former Newark Police Officer Sentenced to Nine Years in Prison for Conspiracy to Defraud Newark Conservation and Development CorporationRead the Press Release
NEWARK, N.J. – A former Newark police officer was sentenced today to 108 months in prison for conspiring to defraud the Newark Watershed Conservation and Development Corporation (NWCDC) and giving kickbacks to its former executive director, Acting U.S. Attorney Rachael A. Honig announced.
Janell Robinson, 45, of Newark, was previously convicted of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce, following a jury trial before U.S. District Judge Susan D. Wigenton. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Between March 2010 and May 2013, while Robinson was a Newark police officer, she controlled Protected and Secured Services LLC (P&S), a company that purported to provide security consulting services to its only client, the NWCDC. Robinson conspired with Linda Watkins Brashear of West Orange, New Jersey, the former executive director of the NWCDC, to pay Brashear a stream of concealed and undisclosed kickbacks from the proceeds that P&S received from the NWCDC. In exchange for Brashear’s assistance with securing P&S a contract with the NWCDC and approving completely fraudulent or inflated invoices that Robinson submitted, Robinson paid Brashear cash kickbacks from the proceeds of the fraud.
The NWCDC paid P&S approximately $289,000 during the scheme, approximately $50,000 of which was used by Robinson used to pay Brashear kickbacks.
In addition to the prison term, Judge Wigenton sentenced Robinson to three years supervised release and ordered her to pay restitution of $288,950 to the NWCDC.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Former NYPD Sergeant Charged with 9/11 Benefits FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, Police Commissioner of the City of New York (“NYPD”), and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office (“DOJ-OIG”), announced today that SALLY SPINOSA was charged in Manhattan federal court with two counts of making false claims for monetary awards and medical benefits by falsely and materially overstating the amount of time she spent on recovery efforts after the September 11, 2001, attack on New York, as well as one count of aggravated identity theft for submitting a fraudulent affidavit in connection with her benefits application. SPINOSA surrendered this morning and will be presented before Magistrate Judge Kevin Nathaniel Fox in Manhattan this afternoon.
Acting U.S. Attorney Audrey Strauss said: “After the September 11 attacks on New York City, the brave men and women of the NYPD risked their lives and safety to rebuild the City. As alleged, former NYPD sergeant Sally Spinosa exploited her position by brazenly – and falsely – claiming to have worked hundreds of hours in the recovery effort. When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the departments that employ them, and to the public they serve. My Office will work tirelessly with our law enforcement partners to uncover and prosecute such conduct.”
NYPD Commissioner Dermot Shea said: “There is no place in the NYPD for criminal behavior. I commend Deputy Commissioner Joseph Reznick and Internal Affairs officers for their thorough investigation, in partnership with the U.S. Attorney’s Office, Southern District, and the Department of Justice Office of the Inspector General.”
DOJ-OIG Special Agent in Charge Russell W. Cunningham said: “The victim compensation funds are meant to provide some relief for victims of the 9/11 terrorist attacks. Spinosa allegedly tried to defraud the government and take benefits from the fund that she did not deserve. The charges brought today show that the DOJ OIG will thoroughly investigate allegations of fraud of these funds.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court[1]:
Following the attacks on New York and Washington, D.C., on September 11, 2001, Congress created certain programs to provide monetary compensation and medical treatment for victims of the attacks. Specifically, Congress created the September 11th Victim Compensation Fund (the “VCF”) to provide compensation for any individual who suffered physical harm or was killed as a result of either the September 11th attacks or the debris removal and recovery efforts that took place in the immediate aftermath of the attacks. Congress also created the World Trade Center Health Program (“WTCHP”) to provide, among other things, monitoring and medical treatment benefits for individuals who have or may develop health conditions due to exposure at disaster or recovery sites tied to the September 11th attacks. Both the VCF and the WTCHP are funded by Congress. An individual can be deemed eligible for a VCF award either by submitting medical documents and proof-of-presence documents directly to the VCF, or by going through the WTCHP’s process for having a medical condition certified.
SALLY SPINOSA served as an NYPD officer from in or about July 1986 until July 2019, and was a sergeant in the investigations unit of the NYPD’s Patrol Services Bureau of Staten Island (the “Staten Island Investigations Unit”) on September 11, 2001. In 2010, SPINOSA participated in a screening interview with the WTCHP in which she falsely stated that she worked for hundreds of hours at the Fresh Kills Landfill in Staten Island, New York (the “Landfill”), from September 2001 to June 2002. Similarly, in 2014, SPINOSA applied for a monetary award from the VCF, falsely claiming that she was at the Landfill for two hours each day for 62 straight days from September 20, 2001, to November 20, 2001. In support of her application, SPINOSA submitted proof-of-presence documents, including an affidavit purportedly signed by one of her supervisors at the Staten Island Investigations Unit (“Officer-1”) stating that Officer-1 frequently visited the Landfill with SPINOSA to supervise subordinates (the “Officer-1 Affidavit”).
However, contrary to SPINOSA’s representations to the WTCHP and the VCF, in fact SPINOSA spent little to no time at the Landfill. Indeed, during much of the time SPINOSA claimed to be working at the Landfill, SPINOSA was pregnant and doing limited work outside the Staten Island Investigations Unit’s offices, or was out of the office entirely on parental leave. Moreover, the Officer-1 Affidavit that SPINOSA submitted in support of her VCF application was fraudulent and was never signed by Officer-1.
Nevertheless, and based on her false and fraudulent misrepresentations, in or around 2017 the WTCHP granted her benefits. The WTCHP has since paid for certain medical visits and prescription drugs for SPINOSA. While SPINOSA’s original fraudulent application to the VCF was denied in 2014, she reapplied in 2017 and 2018 relying on the same false and fraudulent information. SPINOSA’s VCF claim remains pending.
* * *
SPINOSA, 55, of Freehold, New Jersey, has been charged with one count of submitting false claims, which carries a maximum penalty of five years in prison, one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory penalty of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the NYPD’s Internal Affairs Bureau and DOJ-OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kedar S. Bhatia and Catherine E. Ghosh are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Who Financed and Patronized Child-Sex-Trafficking Ring in the Philippines Sentenced to Life in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge Virginia Hernandez Covington today sentenced Christopher John Streeter (63, Land O’Lakes) to life in federal prison for sex trafficking of a child under the age of 14. Streeter had pleaded guilty on October 15, 2020.
According to court documents, from September 2018 through June 2019, Streeter directly participated in a scheme that sexually exploited children in the Philippines in order to produce child sex-abuse videos for his consumption. Over that period, Streeter communicated and transacted with Philippines-based facilitators to recruit children to engage in sex acts on camera. The child victims—some of whom were as young as 12 and 13 years of age—were particularly vulnerable due to poverty and illness.
Streeter sent payments to the Philippines in exchange for depictions of the victims engaging in sex acts. The money that Streeter remitted covered various recording production costs, such as hotel rooms, transportation, and a commission for the recruiters. In return, Streeter received videos and images of children involved in various sex acts that tracked Streeter’s directives. Streeter negotiated and paid a premium for videos and images depicting female children losing their virginity and being harmed by other forms of sexual violence. He also negotiated and paid a premium for media depicting female children being placed at risk of pregnancy, including additional payment for emergency contraception pills and, occasionally, for abortions.
One of Streeter’s victims was a 12-year-old girl from Ozamis, Philippines. In 2018 and 2019, Streeter communicated with a Philippine recruiter in Ozamis named Analyn Tababini. On multiple occasions, while in the Tampa Bay area, Streeter paid Tababini to arrange for sex-abuse videos to be made of the victim. The monies covered production costs, including the male abuser, money for the victim, hotel expenses, and a commission for Tababini. In return, Tababini sent Streeter several videos of the sexual abuse of the victim. At one point, Streeter voiced displeasure with the videos not depicting insemination of the victim and ordered Tababini to purchase and make the victim take emergency contraception for future videos.
In addition to working for Streeter, Homeland Security Investigations Transnational National Criminal Investigative Unit in Manila discovered that Tababini has facilitated internet sex shows of minors in exchange for payment from an array of international clientele. In a recent, coordinated operation conducted by the Philippine National Police in Ozamis, Philippines, six of Tababini’s child sex-trafficking victims (including Streeter’s 12-year-old victim) were rescued by the Philippine Department of Social Welfare and Development. Philippine authorities also arrested Tababini and executed three search warrants in support of their continuing investigation.
“This morally corrupt individual thought he could circumvent justice because of international borders,” said HSI Tampa Acting Deputy Special Agent in Charge Micah C. McCombs. “Leveraging HSI’s unique international authorities and our strong law enforcement partnership with the Pasco Sheriff’s Office, this human trafficker will now face the justice he deserves.”
"I am proud of the partnership that we have with the Department of Homeland Security,” said Pasco Sheriff Chris Nocco. “We are proud of the hard work of our members that resulted in saving children and getting the perpetuator of these heinous acts out of our community."
This case was investigated by Homeland Security Investigations (Tampa and Manila), with assistance from the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
The Philippines victim-rescue operation was conducted by the Philippine National Police (Manila), with assistance from Homeland Security Investigations (Tampa and Manila), U.S. Customs and Border Protection (National Targeting Center), the Philippine National Police Woman and Children Protection Center (Mindanao Field Unit), and the Ozamis City Police Office.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida; one of 13 Task Forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law-enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Federal authorities investigating any potential violations of federal law by residents of Southern District of Ohio at U.S. CapitolRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers reiterated today that his office, in coordination with the Cincinnati Division of the FBI, will investigate any potential violations of federal crime at the United States Capitol Building on Jan. 6, 2021 committed by individuals from the Southern District of Ohio.
“We are in continual contact with the FBI and they are actively investigating,” DeVillers said. “There is no set timeframe for investigations to conclude.”
Individuals in the Southern District of Ohio with information related to the commission of federal crimes at the Capitol are asked to contact the FBI at 513-421-4310. Additionally, tips may be submitted to the FBI at fbi.gov/USCapitol.
DeVillers noted federal statutes that may be applicable, including:
- 18 United States Code section 231 – Civil Disorder, which prohibits adversely affecting any federally protected function or obstructing any law enforcement officer from the performance of official duties, punishable by up to five years in prison.
- 18 United States Code section 2101 – The Federal Riot Act, which applies to anyone who traveled interstate to incite, promote, or participate in a riot. This includes anyone who aided or abetted individuals who carried on a riot or committed a violent crime in furtherance of a riot. The crime is punishable by up to five years in prison.
- 18 United States Code section 2383 – Rebellion or insurrection. This law states that whoever incites, assists or engages in any rebellion or insurrection against the United States faces up to 10 years in prison.
“Investigations are ongoing, and we are unable to comment further at this time,” DeVillers said.
# # #
Ex-Indian Health Services doctor sentenced to prison, fined for drug kickback scheme while at Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A former Indian Health Services doctor who worked on the Blackfeet Indian Reservation and admitted using his job to prescribe a diabetes drug from a pharmacy in exchange for kickbacks was sentenced today to three months in prison, two years of supervised release and fined $10,000, Acting U.S. Attorney Leif Johnson said.
Dr. Arnold Scott Devous, 68, of Billings, pleaded guilty on Sept. 10, 2020 to federal medical officer with conflict of interest.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris allowed Devous to self-report to prison.
“Dr. Devous used his position and ability to exploit patients in the Blackfeet community. These kinds of kickback schemes erode the public’s trust in its healthcare providers at a time when we need that trust more than ever. We will continue to prosecute these schemes to the full extent of the law,” Acting U.S. Attorney Johnson said.
"By engaging in kickback schemes, Dr. Devous committed a serious ethics violation which may result in diminished public trust of federal employees,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we are committed to rooting out corruption in our federal healthcare programs.”
In court documents filed in the case, the prosecution said that Devous used his position at IHS as a medical officer and in charge of the diabetes program in Browning to prescribe Farxiga, a Type 2 diabetes medication. Farxiga was not on the IHS formulary and could not be obtained at the facility. From December 2015 until June 2016, Devous solicited multiple pharmacies in Montana to fill expensive prescriptions of Farxiga in exchange for Devous receiving a "cut" of the profits and kickbacks. Government personnel are prohibited from engaging in these types of relationships.
Ultimately, a pharmacy agreed to Devous' terms and paid him $45,540 in approximately six months. Devous first hid the kickbacks by sending the money to his wife, and then he used a prospective business associate. Neither of these options was allowable under the law. When interviewed, Devous admitted that his wife received the money, which was illegal. Devous also admitted he never informed his superiors of the outside income as required by law.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Office of Inspector General, Office of Investigations, U.S. Department of Health & Human Services.
XXX
Drug User and Convicted Domestic Abuser Sentenced to over Three Years in Prison for Possessing a Loaded GunRead the Press Release
A Cedar Rapids man who illegally possessed a loaded firearm was sentenced on January 6, 2021, to more than three years in federal prison.
Thomas Anthony Wallace, age 34, from Cedar Rapids, Iowa, received the prison term after an August 19, 2020 guilty plea to one count of possession of a firearm by a prohibited person.
Information disclosed at sentencing showed that on October 14, 2019, Cedar Rapids police officers were searching for Wallace for violating his state probation. They found Wallace in the driver’s seat of a parked Toyota Camry. After smelling marijuana, officers searched Wallace’s car and recovered a loaded firearm and marijuana. Wallace was prohibited from possessing firearms because he was a drug user and had previously been convicted of multiple crimes of domestic violence.
Wallace was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. He was sentenced to 42 months’ imprisonment, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Wallace is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00043.
Follow us on Twitter @USAO_NDIA.
Drug User Sentenced to Four Years in Federal Prison for Possessing Firearms and AmmunitionRead the Press Release
A drug user who possessed firearms and ammunition was sentenced on January 5, 2021, to four years in federal prison.
Daniel Heim, age 33, of Dubuque, Iowa, received the sentence after an August 17, 2020 guilty plea to one count of being a drug user in possession of firearms and ammunition. In a plea agreement, Heim admitted that, in December 2019, he possessed 14 firearms and 3,398 rounds of ammunition while being a user of marijuana and cocaine. Heim also admitted that, in December 2019, while on a road in Dubuque County, he fired at least five shots from a .45 caliber pistol that was later found in his truck. The other firearms were found in Heim’s residence.
Heim was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Heim was sentenced to 48 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Heim was released on the bond previously set and is to surrender to the United States Bureau of Prisons on a date yet to be set.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Dubuque County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 20-1006.
Follow us on Twitter @USAO_NDIA.
Drug Trafficking Sends Lafayette Man to Federal PrisonRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Paul Bernard, a/k/a “PJ,” 21, of Lafayette, Louisiana, was sentenced today by Judge Robert R. Summerhays. Bernard was sentenced to 42 months (3 years, 6 months) in prison followed by 2 years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
Bernard pled guilty on December 10, 2019. Evidence introduced in court revealed that from January through June 2019, Bernard purchased methamphetamine from a co-defendant in this case approximately once per week, with each transaction involving quantities of one ounce to one pound. He would then sell the methamphetamine for profit.
This prosecution is part of a larger investigation conducted by the Drug Enforcement Administration through its Southwest Louisiana HIDTA Task Force and Organized Crime and Drug Enforcement Task Forces. The Louisiana State Police Narcotics Division initiated the investigation, and Special Agents with DEA, as well as Task Force Officers assigned to the Southwest Louisiana HIDTA Task Force, completed the investigation. In addition to the above conviction and sentence, the investigation resulted in the dismantling of a drug trafficking organization in Ville Platte, Louisiana. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
# # #
Developer Agrees to Pay $1.2 Million to Resolve Criminal Probe into Executive’s Relationship with Ex-L.A. City Councilman Jose HuizarRead the Press Release
NON-PROSECUTION AGREEMENTLOS ANGELES – A San Francisco-based company has agreed to pay $1.2 million to resolve a federal criminal investigation that focused on the company’s relationship with former Los Angeles City Councilmember Jose Huizar, who voted to approve its 35-story project in the Arts District.
CP Employer, Inc., formerly known as Carmel Partners, Inc., agreed to make the payment in a non-prosecution agreement (NPA) announced today by United States Attorney Nick Hanna and FBI Assistant Director in Charge Kristi Koons Johnson. The three-year NPA with CP Employer is the latest development in the ongoing investigation into a wide-ranging “pay-to-play” scheme in which developers bribed Los Angeles city officials to secure official acts to benefit their real estate projects.
Under the NPA, CP Employer admitted and accepted responsibility for the actions of its employees and agents and agreed to fully cooperate with the FBI’s ongoing public corruption probe. The company made the $1.2 million payment last month.
The United States Attorney’s Office agreed not to prosecute the company for three years, as long as it refrains from any criminal conduct, for a series of reasons detailed in the NPA. Those reasons include CP Employer’s acceptance of responsibility for its conduct, a demonstrated commitment to compliance, and cooperation with the government’s investigation. The NPA also notes the company has taken several remedial measures, including enhancing its compliance program, creating a “corporate policy against violations of all anti-bribery/anti-corruption laws” that will address political contributions and gifts to public officials, and terminating a consultant who later pleaded guilty to criminal charges stemming from the investigation.
The statement of facts attached to the NPA outlines CP Employer’s conduct in relation to former Los Angeles City Councilmember Jose Huizar, who faces a trial in June on a 41-count racketeering indictment, and real estate development consultant Morris Goldman, who is scheduled to be sentenced in August after pleading guilty last year to brokering deals in which a CP Employer executive agreed to make $50,000 in political contributions in exchange for Huizar’s official actions on the company’s mixed-use project in the Arts District of downtown Los Angeles.
In the statement of facts, CP Employer admits a series of facts, including:
- Goldman funneled a series of requests from Huizar that CP Employer make contributions to two political action committees for Huizar’s benefit;
- CP Employer made three of the four requested political contributions for a total of $75,000;
- the company official in charge of the Arts District project – “Executive M” – met with Huizar and agreed to assist with political fundraising efforts to benefit a Huizar relative running for his City Council seat and to obtain information on a person who was “causing problems for Huizar’s family”;
- while Executive M ultimately did not help with fundraising, the company official obtained the requested background report at company expense and without the knowledge of CP Employer’s Compliance Department or senior management;
- Executive M personally delivered the background report to Huizar, at which time Huizar solicited a $250,000 personal payment in exchange for reducing CP Employer’s public benefit payment – a request that Executive M did not act on, but which he withheld from his senior management and the company’s Compliance Department; and
- Huizar sought additional help from Executive M – background information on Huizar staffers and a potential job with CP Employer once he left the City Council – which Executive M did not act on, but again withheld this information from company management and its Compliance Department.
The statement of facts also outlines how the City’s Planning Commission approved the project in June 2018 with a requirement that 11 percent of the housing units be reserved for “very low income” residents. But the Huizar-chaired Planning and Land Use Management (PLUM) Committee approved the project four months later and accepted the company’s request to reduce the affordable housing requirement. The PLUM Committee also voted to deny an appeal of the project that had been filed by a labor union.
The NPA does not preclude or limit the investigation or prosecution of individuals, including any current or former CP Employer officer, employee or agent.
The matter involving CP Employer and the criminal cases stemming from the investigation are being handled by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Veronica Dragalin and Melissa J. Mills, also of the Public Corruption and Civil Rights Section.
Any member of the public who has information related to this investigation or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line – tips.fbi.gov – or to call the FBI’s Los Angeles Field Office at (310) 477-6565.
Convicted Felon Sentenced to Eight Years in Federal Prison for Firearm PossessionRead the Press Release
GAINESVILLE, FLORIDA – Robert Robinson Sr., of Gainesville, Florida, was sentenced on January 5, 2021, to eight years in federal prison after entering a plea of guilty to possessing a firearm as a convicted felon. At the time of his guilty plea on September 8, Robinson already had multiple prior felony convictions, including felony battery, possession of a firearm by felon, possession of a firearm with serial number removed, and possession of a controlled substance without a prescription. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The criminal use of firearms is one of the greatest threats to the safety and well-being of the people of North Florida, and this lengthy sentence will keep a serious repeat offender away from the law-abiding people of our communities,” U.S. Attorney Keefe said. “This sentence sends a clear message that we take such threats seriously and do everything in our power to stop them.”
On the morning of March 1, 2020, deputies from the Alachua County Sheriff’s Office (ACSO) were dispatched to a gas station after 911 callers reported that an armed confrontation had occurred in front of the store. Video footage later confirmed information provided by witnesses who said that Robinson, 27, got into an argument with another man in front of the store and then retrieved a 9 mm rifle from the trunk of his vehicle. Robinson escalated the confrontation with the other man while holding the rifle in his hands, before fleeing the area in his vehicle. A responding deputy quickly located the suspect vehicle and got behind it, but before the deputy could activate his emergency lights to initiate a traffic stop, the vehicle accelerated into a residential neighborhood in an attempt to evade law enforcement. During a brief pursuit through the neighborhood, Robinson turned around on a dead-end road and threw the rifle out of his car window, before aggressively driving toward the pursuing deputy’s vehicle and continuing his flight. Robinson was ultimately stopped by other ACSO deputies who had blocked the exit to the neighborhood. The rifle, loaded with an extended magazine and 17 rounds of 9 mm ammunition, was located in the grass near where Robinson had turned around.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) adopted the case for federal prosecution and conducted additional investigation, as a part of the Gainesville Gun Violence Initiative (GVI).
“Removing convicted felons in possession of firearms from our streets is a priority for ATF,” said ATF Special Agent in Charge Craig W. Saier. “Together with the investigative efforts of our law enforcement partners, this individual has been prosecuted to the fullest extent of the law”.
This sentencing resulted from the collaborative work of the ACSO and the ATF. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The Gainesville GVI was established in April 2019 by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. This commitment to protecting public safety is shared by GVI partners the State Attorney’s Office for the Eight Judicial Circuit, the ATF, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the ACSO, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections.
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. RobinsonConvicted Felon Admits to Shooting Drug Customer Twice over Unpaid Drug DebtRead the Press Release
BEAUMONT, Texas – A 34-year-old Beaumont, Texas man has pleaded guilty to federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Rustin Chase McKinsey, also known as “Dollar Bill,” pleaded guilty to discharging a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. McKinsey entered his guilty plea before U.S. Magistrate Judge Zack Hawthorn on Jan. 6, 2021.
According to information presented in court, on Sep. 4, 2020, law enforcement officers responded to a residence on Taylor Street in Beaumont, Texas in reference to a shooting. Upon arrival at the residence, officers discovered the victim laying on the front porch with a towel wrapped around a gunshot wound to his leg. The victim’s roommate told officers he was awoken by an argument between the victim and McKinsey, and he observed McKinsey fire two shots at the victim before fleeing the scene. The victim stated he owed money to McKinsey for methamphetamine that McKinsey sold him.
On Oct. 9, 2020, law enforcement officers responded again to the same residence on Taylor Street in Beaumont, Texas in reference to another shooting. Upon arrival, officers discovered the same victim suffering from a gunshot wound to his back. A single spent .22 caliber shell casing was discovered at the scene. The victim stated that McKinsey shot him again over the same drug debt that was owed.
McKinsey was arrested and admitted to officers that he had shot the victim on both occasions over a drug debt. McKinsey is a convicted felon having previously been convicted of possession of a controlled substance in Jefferson County, Texas, on Dec. 18, 2017. As a convicted felon, McKinsey is prohibited by federal law of owning or possessing a firearm or ammunition.
Under federal statutes, McKinsey faces up to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Matthew Quinn.
Chittenden County Man Charged as a Drug User in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Aaron Loucks, 27, of Burlington, Vermont, appeared today in court on charges that in December 2020, he possessed a firearm while being a user of controlled substances. Loucks appeared in person for the initial appearance before the Hon. John M. Conroy, U.S. Magistrate Judge, and was detained pending further proceedings in the case.
According to the complaint filed on Monday, Loucks has struggled with psychological and drug addiction issues since high school. In early December 2020, Loucks was charged by state authorities with smashing the windows of a Church Street storefront with a hammer. On December 16, 2020, Shelburne Police found Loucks in possession of a firearm. Since that incident, local police departments have received reports that Loucks was concerned about governmental actions involving COVID-19 vaccination efforts, and that he had purchased additional firearms to “protect” himself and his family. Loucks did not contest detention at this time. The Court delayed ruling on a motion for a mental health evaluation.
U.S. Attorney Nolan thanked concerned members of the community for bringing Loucks’ psychological struggles to the attention of authorities, and credited law enforcement, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Burlington Police and Shelburne Police for speedily taking steps to ensure Loucks would not be able to harm anyone. She also thanked the Vermont State Police for assisting in the federal arrest of Loucks. U.S. Attorney Nolan stated: “The mix of psychological struggles, drug use, and firearms is a particularly dangerous cocktail. We will continue to use federal gun laws where appropriate to ensure the safety of Vermonters. Although law enforcement interventions may be only a part of the overall approach where a defendant has mental health challenges, we will bring charges when necessary to promote the paramount interest in the protection of public safety.”
Kelly D. Brady, Special Agent in Charge of the ATF, Boston Field Division, joined in Nolan’s praise of law enforcement’s work in this case. He stated, “ATF will continue to work with its federal, state, and local law enforcement counterparts, in addition to our prosecutorial partners at the United States Attorney’s Office, especially when there is a credible threat to public safety involving the unlawful possession of a firearm.”
If convicted of the charged offense, Loucks could face up to ten years in prison along with a period of federal supervised release that could include requirements for mental health and substance abuse treatment. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Loucks’s personal history and characteristics.
This prosecution 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 enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
AUSA Eugenia A. P. Cowles appeared for the government. Assistant Federal Public Defender Elizabeth Quinn appeared for Loucks.
Buffalo Man Arrested After Cocaine and A Loaded Weapon Were Found in His ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adrian Funderburk, 37, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a maximum penalty of 25 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the complaint, on January 6, 2021, the Buffalo Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, executed a state search warrant at the defendant’s residence on Wecker Street in Buffalo. During the search, investigators recovered a loaded .40 caliber pistol, approximately one ounce of suspected cocaine, a quantity of suspected marijuana, and approximately $81,000 in cash. Funderburk was taken into custody during the execution of the search warrant.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Broken Arrow Man Pleads Guilty to Assault with A Dangerous Weapon in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wesley Allan Hahn, age 37, of Broken Arrow, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Do Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151, and 1153, punishable by up to 10 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 1, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did assault K.T. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Broken Arrow Police Department and the Federal Bureau of Investigation.
The Honorable Amanda G. Maxwell, U.S. Magistrate Judge out of the United States District Court for the Western District of Oklahoma, temporarily assigned to the Eastern District of Oklahoma, presided over the hearing and accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Benjamin D. Traster represented the United States.
Bridgeport Felon Sentenced to More Than 5 Years in Federal Prison for Possessing FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on January 5, 2020, ANTONIO JOHNSON, 27, of Bridgeport, was sentenced by U.S. District Judge Stefan R. Underhill to 66 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, on September 2, 2017, DeWayne Joyner, also known as “Weezy,” and others stole a large quantity of heroin during an armed robbery of a narcotics stash house on Maplewood Avenue in Bridgeport. Joyner discharged two rounds from a handgun while chasing a victim of the robbery. The investigation revealed that Johnson had loaned a loaded handgun to Joyner to use during the robbery.
A subsequent court-authorized search of Johnson’s phone revealed multiple images of firearms, several of which Johnson had offered to sell or trade.
Johnson’s criminal history includes convictions for conspiring to commit robbery and witness tampering. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
One of the firearms identified in an image on Johnson’s phone was a stolen Glock pistol. Law enforcement recovered the pistol after it was used in a shooting incident committed by juveniles within the Greene Homes Housing Complex in Bridgeport on January 15, 2019.
Johnson was arrested on February 11, 2019. A search of Johnson’s residence at the time of his arrest revealed two loaded Springfield XD .40 caliber handguns, one of which had an obliterated serial number, and a Polymer80, Inc., PF90C pistol frame with a Glock-brand slide with no serial number. Analysis of one of the .40 caliber firearms connected it to a non-fatal drive-by shooting in Bridgeport on May 15, 2018.
On July 18, 2019, Johnson pleaded guilty to one count of possession of a firearm by a convicted felon.
Johnson, who had been released on bond in this case, has been detained in state custody since March 9, 2020, after a state court-authorized search of his residence revealed another loaded pistol. The state charges are pending.
Joyner was convicted in federal court of heroin distribution charges and, on September 21, 2020, was sentenced to 15 years of imprisonment.
This matter was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bridgeport Police Department, and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Boeing Charged with 737 Max Fraud Conspiracy, Agrees to Pay $2.5 Billion+Read the Press Release
The Boeing Company has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
Boeing, a U.S.-based multinational corporation that designs, manufactures, and sells commercial airplanes to airlines worldwide, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.”
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.”
“Today's deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The substantial penalties and compensation Boeing will pay, demonstrate the consequences of failing to be fully transparent with government regulators. The public should be confident that government regulators are effectively doing their job, and those they regulate are being truthful and transparent.”
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” said Special Agent in Charge Andrea M. Kropf, Department of Transportation Office of Inspector General (DOT-OIG) Midwestern Region. “This landmark deferred prosecution agreement will forever serve as a stark reminder of the paramount importance of safety in the commercial aviation industry, and that integrity and transparency may never be sacrificed for efficiency or profit.”
As Boeing admitted in court documents, Boeing—through two of its 737 MAX Flight Technical Pilots—deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. Because of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS.
Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.
In connection with this process, the FAA AEG was principally responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which contained relevant information about certain aircraft parts and systems that Boeing was required to incorporate into airplane manuals and pilot-training materials for all U.S.-based airlines. The 737 MAX FSB Report also contained the FAA AEG’s differences-training determination. After the 737 MAX FSB Report was published, Boeing’s airline customers were permitted to fly the 737 MAX.
Within Boeing, the 737 MAX Flight Technical Team (composed of 737 MAX Flight Technical Pilots) was principally responsible for identifying and providing to the FAA AEG all information that was relevant to the FAA AEG in connection with the FAA AEG’s publication of the 737 MAX FSB Report. Because flight controls were vital to flying modern commercial airplanes, differences between the flight controls of the 737 NG and the 737 MAX were especially important to the FAA AEG for purposes of its publication of the 737 MAX FSB Report and the FAA AEG’s differences-training determination.
In and around November 2016, two of Boeing’s 737 MAX Flight Technical Pilots, one who was then the 737 MAX Chief Technical Pilot and another who would later become the 737 MAX Chief Technical Pilot, discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Boeing, through these two 737 MAX Flight Technical Pilots, concealed this information and deceived the FAA AEG about MCAS. Because of this deceit, the FAA AEG deleted all information about MCAS from the final version of the 737 MAX FSB Report published in July 2017. In turn, airplane manuals and pilot training materials for U.S.-based airlines lacked information about MCAS, and pilots flying the 737 MAX for Boeing’s airline customers were not provided any information about MCAS in their manuals and training materials.
On Oct. 29, 2018, Lion Air Flight 610, a Boeing 737 MAX, crashed shortly after takeoff into the Java Sea near Indonesia. All 189 passengers and crew on board died. Following the Lion Air crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. The FAA AEG also learned for the first time about the change to MCAS, including the information about MCAS that Boeing concealed from the FAA AEG. Meanwhile, while investigations into the Lion Air crash continued, the two 737 MAX Flight Technical Pilots continued misleading others—including at Boeing and the FAA—about their prior knowledge of the change to MCAS.
On March 10, 2019, Ethiopian Airlines Flight 302, a Boeing 737 MAX, crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew on board died. Following the Ethiopian Airlines crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. On March 13, 2019, the 737 MAX was officially grounded in the U.S., indefinitely halting further flights of this airplane by any U.S.-based airline.
As part of the DPA, Boeing has agreed, among other things, to continue to cooperate with the Fraud Section in any ongoing or future investigations and prosecutions. As part of its cooperation, Boeing is required to report any evidence or allegation of a violation of U.S. fraud laws committed by Boeing’s employees or agents upon any domestic or foreign government agency (including the FAA), regulator, or any of Boeing’s airline customers. In addition, Boeing has agreed to strengthen its compliance program and to enhanced compliance program reporting requirements, which require Boeing to meet with the Fraud Section at least quarterly and to submit yearly reports to the Fraud Section regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective at deterring and detecting violations of U.S. fraud laws in connection with interactions with any domestic or foreign government agency (including the FAA), regulator, or any of its airline customers.
The Fraud Section reached this resolution with Boeing based on a number of factors, including the nature and seriousness of the offense conduct; Boeing’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and Boeing’s prior history, including a civil FAA settlement agreement from 2015 related to safety and quality issues concerning the Boeing’s Commercial Airplanes (BCA) business unit. In addition, while Boeing’s cooperation ultimately included voluntarily and proactively identifying to the Fraud Section potentially significant documents and Boeing witnesses, and voluntarily organizing voluminous evidence that Boeing was obligated to produce, such cooperation, however, was delayed and only began after the first six months of the Fraud Section’s investigation, during which time Boeing’s response frustrated the Fraud Section’s investigation.
The department also considered that Boeing engaged in remedial measures after the offense conduct, including: (i) creating a permanent aerospace safety committee of the Board of Directors to oversee Boeing’s policies and procedures governing safety and its interactions with the FAA and other government agencies and regulators; (ii) creating a Product and Services Safety organization to strengthen and centralize the safety-related functions that were previously located across Boeing; (iii) reorganizing Boeing’s engineering function to have all Boeing engineers, as well as Boeing’s Flight Technical Team, report through Boeing’s chief engineer rather than to the business units; and (iv) making structural changes to Boeing’s Flight Technical Team to increase the supervision, effectiveness, and professionalism of Boeing’s Flight Technical Pilots, including moving Boeing’s Flight Technical Team under the same organizational umbrella as Boeing’s Flight Test Team, and adopting new policies and procedures and conducting training to clarify expectations and requirements governing communications between Boeing’s Flight Technical Pilots and regulatory authorities, including specifically the FAA AEG. Boeing also made significant changes to its top leadership since the offense occurred.
The Fraud Section ultimately determined that an independent compliance monitor was unnecessary based on the following factors, among others: (i) the misconduct was neither pervasive across the organization, nor undertaken by a large number of employees, nor facilitated by senior management; (ii) although two of Boeing’s 737 MAX Flight Technical Pilots deceived the FAA AEG about MCAS by way of misleading statements, half-truths, and omissions, others in Boeing disclosed MCAS’s expanded operational scope to different FAA personnel who were responsible for determining whether the 737 MAX met U.S. federal airworthiness standards; (iii) the state of Boeing’s remedial improvements to its compliance program and internal controls; and (iv) Boeing’s agreement to enhanced compliance program reporting requirements, as described above.
The Chicago field offices of the FBI and the DOT-OIG investigated the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorneys Cory E. Jacobs and Scott Armstrong and Assistant Chief Michael T. O’Neill of the Fraud Section and Assistant U.S. Attorney Chad E. Meacham of the Northern District of Texas are prosecuting this case.
Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: [email protected] or call (888) 549-3945.
Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 BillionRead the Press Release
The Boeing Company (Boeing) has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
Boeing, a U.S.-based multinational corporation that designs, manufactures, and sells commercial airplanes to airlines worldwide, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.”
“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.”
“Today's deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The substantial penalties and compensation Boeing will pay, demonstrate the consequences of failing to be fully transparent with government regulators. The public should be confident that government regulators are effectively doing their job, and those they regulate are being truthful and transparent.”
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” said Special Agent in Charge Andrea M. Kropf, Department of Transportation Office of Inspector General (DOT-OIG) Midwestern Region. “This landmark deferred prosecution agreement will forever serve as a stark reminder of the paramount importance of safety in the commercial aviation industry, and that integrity and transparency may never be sacrificed for efficiency or profit.”
As Boeing admitted in court documents, Boeing—through two of its 737 MAX Flight Technical Pilots—deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. Because of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS.
Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.
In connection with this process, the FAA AEG was principally responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which contained relevant information about certain aircraft parts and systems that Boeing was required to incorporate into airplane manuals and pilot-training materials for all U.S.-based airlines. The 737 MAX FSB Report also contained the FAA AEG’s differences-training determination. After the 737 MAX FSB Report was published, Boeing’s airline customers were permitted to fly the 737 MAX.
Within Boeing, the 737 MAX Flight Technical Team (composed of 737 MAX Flight Technical Pilots) was principally responsible for identifying and providing to the FAA AEG all information that was relevant to the FAA AEG in connection with the FAA AEG’s publication of the 737 MAX FSB Report. Because flight controls were vital to flying modern commercial airplanes, differences between the flight controls of the 737 NG and the 737 MAX were especially important to the FAA AEG for purposes of its publication of the 737 MAX FSB Report and the FAA AEG’s differences-training determination.
In and around November 2016, two of Boeing’s 737 MAX Flight Technical Pilots, one who was then the 737 MAX Chief Technical Pilot and another who would later become the 737 MAX Chief Technical Pilot, discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Boeing, through these two 737 MAX Flight Technical Pilots, concealed this information and deceived the FAA AEG about MCAS. Because of this deceit, the FAA AEG deleted all information about MCAS from the final version of the 737 MAX FSB Report published in July 2017. In turn, airplane manuals and pilot training materials for U.S.-based airlines lacked information about MCAS, and pilots flying the 737 MAX for Boeing’s airline customers were not provided any information about MCAS in their manuals and training materials.
On Oct. 29, 2018, Lion Air Flight 610, a Boeing 737 MAX, crashed shortly after takeoff into the Java Sea near Indonesia. All 189 passengers and crew on board died. Following the Lion Air crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. The FAA AEG also learned for the first time about the change to MCAS, including the information about MCAS that Boeing concealed from the FAA AEG. Meanwhile, while investigations into the Lion Air crash continued, the two 737 MAX Flight Technical Pilots continued misleading others—including at Boeing and the FAA—about their prior knowledge of the change to MCAS.
On March 10, 2019, Ethiopian Airlines Flight 302, a Boeing 737 MAX, crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew on board died. Following the Ethiopian Airlines crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. On March 13, 2019, the 737 MAX was officially grounded in the U.S., indefinitely halting further flights of this airplane by any U.S.-based airline.
As part of the DPA, Boeing has agreed, among other things, to continue to cooperate with the Fraud Section in any ongoing or future investigations and prosecutions. As part of its cooperation, Boeing is required to report any evidence or allegation of a violation of U.S. fraud laws committed by Boeing’s employees or agents upon any domestic or foreign government agency (including the FAA), regulator, or any of Boeing’s airline customers. In addition, Boeing has agreed to strengthen its compliance program and to enhanced compliance program reporting requirements, which require Boeing to meet with the Fraud Section at least quarterly and to submit yearly reports to the Fraud Section regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective at deterring and detecting violations of U.S. fraud laws in connection with interactions with any domestic or foreign government agency (including the FAA), regulator, or any of its airline customers.
The department reached this resolution with Boeing based on a number of factors, including the nature and seriousness of the offense conduct; Boeing’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and Boeing’s prior history, including a civil FAA settlement agreement from 2015 related to safety and quality issues concerning the Boeing’s Commercial Airplanes (BCA) business unit. In addition, while Boeing’s cooperation ultimately included voluntarily and proactively identifying to the Fraud Section potentially significant documents and Boeing witnesses, and voluntarily organizing voluminous evidence that Boeing was obligated to produce, such cooperation, however, was delayed and only began after the first six months of the Fraud Section’s investigation, during which time Boeing’s response frustrated the Fraud Section’s investigation.
The department also considered that Boeing engaged in remedial measures after the offense conduct, including: (i) creating a permanent aerospace safety committee of the Board of Directors to oversee Boeing’s policies and procedures governing safety and its interactions with the FAA and other government agencies and regulators; (ii) creating a Product and Services Safety organization to strengthen and centralize the safety-related functions that were previously located across Boeing; (iii) reorganizing Boeing’s engineering function to have all Boeing engineers, as well as Boeing’s Flight Technical Team, report through Boeing’s chief engineer rather than to the business units; and (iv) making structural changes to Boeing’s Flight Technical Team to increase the supervision, effectiveness, and professionalism of Boeing’s Flight Technical Pilots, including moving Boeing’s Flight Technical Team under the same organizational umbrella as Boeing’s Flight Test Team, and adopting new policies and procedures and conducting training to clarify expectations and requirements governing communications between Boeing’s Flight Technical Pilots and regulatory authorities, including specifically the FAA AEG. Boeing also made significant changes to its top leadership since the offense occurred.
The department ultimately determined that an independent compliance monitor was unnecessary based on the following factors, among others: (i) the misconduct was neither pervasive across the organization, nor undertaken by a large number of employees, nor facilitated by senior management; (ii) although two of Boeing’s 737 MAX Flight Technical Pilots deceived the FAA AEG about MCAS by way of misleading statements, half-truths, and omissions, others in Boeing disclosed MCAS’s expanded operational scope to different FAA personnel who were responsible for determining whether the 737 MAX met U.S. federal airworthiness standards; (iii) the state of Boeing’s remedial improvements to its compliance program and internal controls; and (iv) Boeing’s agreement to enhanced compliance program reporting requirements, as described above.
The Chicago field offices of the FBI and the DOT-OIG investigated the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorneys Cory E. Jacobs and Scott Armstrong and Assistant Chief Michael T. O’Neill of the Fraud Section and Assistant U.S. Attorney Chad E. Meacham of the Northern District of Texas are prosecuting this case.
Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: [email protected] or call (888) 549-3945.
Birmingham Man Pleads Guilty to Conspiracy for Making Unapproved Drug Products in His Kitchen and WarehouseRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man today pleaded guilty to making unapproved drug products in his kitchen and warehouse, and marketing and selling them as a cancer treatment, announced U.S. Attorney Prim F. Escalona and U.S. Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
PATRICK CHARLES BISHOP, 54, pleaded guilty before U.S. District Court Judge Karon O. Bowdre to one count of conspiracy for fraudulently introducing adulterated drugs and misbranded drugs into interstate commerce. A sentencing date has been set for May 5, 2021.
According to the plea agreement, Bishop owned and operated Patrick, LLC, an entity organized in Nevada. Between 2015 and 2016, Bishop purchased, manufactured, labeled, marketed, sold, and distributed drug products purportedly containing a peptide called PNC-27. PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer, nor has PNC-27 undergone clinical trials in the United States. Bishop took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from GL Biochem, a manufacturer based in China, and used the business name Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort, and made false representations to FDA personnel and others.
Bishop paid GL Biochem more than $600,000 for the product. Bishop repeatedly assured the manufacturer that he would use the peptide solely for laboratory research purposes. But instead, he used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham. The facilities were not sterile, and did not comply with current good manufacturing practices. Customers who purchased suppositories from Bishop reported finding pieces of hair in their suppository packs.
Bishop marketed the PNC-27 drug products to alternative-medicine doctors, cancer patients, and others as an effective treatment for cancer. Bishop sold PNC-27 drug products to Hope4Cancer, a holistic cancer treatment center with clinics in Mexico. Bishop shipped the products to a location in California, and Hope4Cancer would use the products to treat patients at its Mexico clinics. Bishop also sold PNC-27 drug products to patients and others in the United States.
The maximum punishment for conspiracy is five years in prison and a $250,000 fine.
The FDA investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
Bangladeshi National Sentenced for Conspiracy to Bring Aliens to the United StatesRead the Press Release
A Bangladeshi national formerly residing in Monterrey, Mexico, was sentenced to 46 months in prison followed by three years of supervised release for his role in a scheme to smuggle aliens from Mexico into the United States.
According to the plea agreement, Moktar Hossain admitted that from March 2017 to August 2018, he conspired to bring, and did bring, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain paid drivers to transport the aliens to the U.S. border, and gave the aliens instructions on how to cross the Rio Grande river.
“The defendant was a key player in an organized smuggling network that operated for profit and preyed on Bangladeshi nationals who wanted to enter the United States illegally,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “This sentence serves as a clear deterrent to participants of such transnational criminal organizations who seek to undermine the security of our borders by illegally facilitating the travel of foreigners into the United States for a financial gain.”
“Border security and national security are one in the same,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “We must know who is coming into the country, and we cannot allow unfiltered access. My office continues to work with all our partners executing this mission.”
“The investigation, prosecution, and sentencing of Hossain is a result of HSI’s expertise in transnational investigations and unique ability to coordinate investigative efforts across international boundaries with foreign counterparts,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI will continue to work with our law enforcement partners both domestic and international to aggressively dismantle criminal travel networks that pose a threat to U.S. national security.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Patrol, U.S. Border Patrol, and the U.S. Marshals Service. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.