Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 31 December 2020
Mount Pleasant Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Robert Dean Stagers, age 32, of Mount Pleasant, to 140 months in prison for Conspiracy to Distribute Methamphetamine and Possession of Firearms in Furtherance of Drug Trafficking announced United States Attorney Marc Krickbaum. Stagers was ordered to serve five years of supervised release to follow his prison term and to pay $200 to the Crime Victims’ Fund.
The investigation began in March of 2018 when law enforcement discovered Stagers had become a supplier of methamphetamine in the Southeast Iowa area. Stagers knowingly distributed methamphetamine to his purchasers who then distributed to others. In 2019, a search warrant was executed on Stagers’ residence in Mount Pleasant. Officers found a safe that contained 132.01 grams of methamphetamine and seven loaded guns. A vehicle associated with Stagers was also searched and officers found four more firearms. Stagers admitted he knowingly carried and used these firearms in furtherance of drug trafficking.
This matter was investigated by the Henry County Sheriff’s Office, Mount Pleasant Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minnesota Man Sentenced for Attempted Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rushford Village, Minnesota, man convicted of Attempted Possession of Child Pornography was sentenced on December 18, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Josef Pettit, age 24, was sentenced to 18 months in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Pettit will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Pettit was arrested and federally indicted following multiple text messages he exchanged with a person Pettit believed to be a 15-year-old girl, but who was in fact an undercover agent. Pettit requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor. When Pettit went to the pre-determined location, he was met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Pettit was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint PracticesRead the Press Release
The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana, to address and prevent the discriminatory secluding and restraining of students with disabilities.
The agreement follows an investigation conducted under Title II of the Americans with Disabilities Act (ADA) into a complaint that the school district inappropriately secluded and restrained students with emotional and behavioral disabilities in the district’s self-contained classrooms. The department’s investigation confirmed that students as young as five years old were secluded and restrained improperly and repeatedly, resulting in days, and sometimes weeks, of lost instructional time. The department also investigated allegations that the school district regularly and inappropriately sent these students home early from school, placed them on abbreviated school days, and assigned them to homebound instruction.
“Students with disabilities, like all students, belong in classrooms where they can learn — not locked away or otherwise segregated from their peers. When school districts improperly seclude or restrain students with disabilities, they inflict grievous harm on some of America’s most vulnerable children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Students with emotional and behavioral disabilities need additional supports in the classroom, not practices that keep them out or subject them to isolation and trauma. We look forward to working with the North Gibson School Corporation as it implements this settlement agreement to provide students with disabilities equal access to education — a right guaranteed to them by the Americans with Disabilities Act.”
“We are better as a community when our schools serve all of our students,” said Acting U.S. Attorney John Childress for the Southern District of Indiana. “Our schools should be places where all children have the best chance to learn and grow and this agreement is a significant step toward achieving that goal.”
The school district cooperated fully throughout the investigation, voluntarily suspended its use of seclusion rooms before the investigation was completed and agreed to take the steps outlined in today’s settlement agreement.
Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things: change its policies to prohibit use of seclusion rooms; report all instances of restraint and review whether they were justified; take steps to avoid placing students with emotional and behavioral disabilities on an abbreviated school day or homebound instruction and document those steps; create and implement a procedure for handling complaints of disability discrimination; provide appropriate training and resources to help schools implement the agreement; and appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
This year marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools is a priority of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint PracticesRead the Press Release
Evansville – The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana to address and prevent the discriminatory secluding and restraining of students with disabilities.
The agreement follows an investigation conducted under Title II of the Americans with Disabilities Act (ADA) into a complaint that the school district inappropriately secluded and restrained students with emotional and behavioral disabilities in the district’s self-contained classrooms. The department’s investigation confirmed that students as young as five years old were secluded and restrained improperly and repeatedly, resulting in days, and sometimes weeks, of lost instructional time. The department also investigated allegations that the school district regularly and inappropriately sent these students home early from school, placed them on abbreviated school days, and assigned them to homebound instruction.
“Students with disabilities, like all students, belong in classrooms where they can learn – not locked away or otherwise segregated from their peers. When school districts improperly seclude or restrain students with disabilities, they inflict grievous harm on some of America’s most vulnerable children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Students with emotional and behavioral disabilities need additional supports in the classroom, not practices that keep them out or subject them to isolation and trauma. We look forward to working with the North Gibson School Corporation as it implements this settlement agreement to provide students with disabilities equal access to education — a right guaranteed them by the Americans with Disabilities Act.”
“We are better as a community when our schools serve all of our students” said Acting U.S. Attorney John Childress for the Southern District of Indiana. “Our schools should be places where all children have the best chance to learn and grow and this agreement is a significant step toward achieving that goal.”
The school district cooperated fully throughout the investigation, voluntarily suspended its use of seclusion rooms before the investigation was completed and agreed to take the steps outlined in today’s settlement agreement.
Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things: change its policies to prohibit use of seclusion rooms; report all instances of restraint and review whether they were justified; take steps to avoid placing students with emotional and behavioral disabilities on an abbreviated school day or homebound instruction and document those steps; create and implement a procedure for handling complaints of disability discrimination; provide appropriate training and resources to help schools implement the agreement; and appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
This year marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools is a priority of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Download NGSC Executed Agreement.pdfInformational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec.29 was:
Sean Andrew Shaw, 40, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Shaw faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shaw was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-78.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Davenport Man Sentenced to Prison for Possession with Intent to Distribute Marijuana and Possession of a FirearmRead the Press Release
DAVENPORT, Iowa — On December 31, 2020, United States District Court Chief Judge John A. Jarvey sentenced Curtis Lee Smith, age 26, of Davenport, to 65 months in prison for Possession with Intent to Distribute Marijuana and Possession of a Firearm in Furtherance of a Drug Trafficking Crime announced United States Attorney Marc Krickbaum. Following his prison term, Smith will serve three years of supervised release as well as pay $100 to the Crime Victims’ Fund.
On January 25, 2019, officers were dispatched to the Quad City Inn in Davenport in response to a 911 call describing a person being held against her will in a room. When officers arrived at the room, two people were found inside— a woman and Smith. Officers obtained a search warrant for the motel room. Upon execution of the warrant, officers discovered 128 grams of marijuana, a .380 caliber pistol, a .45 caliber pistol, and another .380 caliber pistol. Smith admitted to placing the marijuana and firearms in the ceiling of the room near a vent. Additionally, officers found a digital scale, drug packaging materials, and $2,060 United States currency. Smith admitted to possessing the marijuana with the intent to distribute it and using the firearms in furtherance of that drug distribution.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Charged with Illegal Possession of FirearmRead the Press Release
BOSTON – A Fitchburg man was charged today with being a felon in possession of a 10 mm Glock pistol.
Joel Polanco, 32, was charged by criminal complaint with one count of being a felon in possession of a firearm. Polanco is currently in state custody and will make an initial appearance in federal court at a later date.
On Oct. 24, 2020, Polanco was arrested after police responded to the area of Snow and Cherry Streets in Fitchburg following a report of a person suffering a gunshot wound to the leg. A witness reported seeing someone fitting Polanco’s description shoot the victim. In addition, surveillance videos showed a person fitting Polanco’s description carrying what appeared to be the black fanny-pack and holding an item in his hand that appeared to be a gun. According to the charging documents, Polanco shot the victim using a 10 mm Glock pistol that was later recovered from a black fanny-pack in the area of Snow Street.
Polanco is prohibited from possessing a firearm due to a March 2011 conviction in Worcester federal court of being a felon in possession of ammunition and distribution of cocaine base.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Fitchburg Police Chief Ernst Martineau made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burlington Woman Sentenced to Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Pamela Sue Hester, age 59, of Burlington, to 130 months in prison for Possession with Intent to Distribute Methamphetamine announced United States Attorney Marc Krickbaum. Following her prison term, Hester was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
The investigation began in 2018 when law enforcement learned of Hester being a distributer of methamphetamine in the Burlington area. In February 2019, Hester was arrested on a warrant and officers located 58 grams of methamphetamine and $764.00 that was comingled with proceeds for drug trafficking in her possession. At a search warrant of Hester’s residence that same day, law enforcement located 217 grams of methamphetamine, $2,000 cash, drug packaging material, and a digital scale. Hester admitted to knowingly possessing the materials and drugs with the intent to distribute and deliver it to others.
This matter was investigated by the Southeast Iowa Narcotics Taskforce. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bristol Man Charged with Federal Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging XAVIER CRUZ, 26, of Bristol with firearm offenses.
The indictment was returned on December 21. Cruz appeared yesterday via videoconference before U.S. Magistrate Judge Robert A. Richardson, entered a plea of not guilty to the charges, and is released on a $100,000 bond.
It is alleged that, on September 5, 2020, law enforcement found a backpack containing a loaded Smith and Wesson semiautomatic handgun in a parking lot in a residential area of Bristol. The handgun’s serial number had been removed. Investigators subsequently determined that Cruz had possessed the firearm before discarding it.
Prior to September 2020, Cruz sustained felony convictions in state court for controlled substance offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Cruz with one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tara Levens and Margaret Donovan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Appellate Chief appointed United States Attorney for Eastern District of MissouriRead the Press Release
Sayler A. Fleming was appointed by Attorney General William P. Barr on December 11, 2020, to replace U.S. Attorney Jeff Jensen. She assumed office on December 31, 2020.
“Having spent the bulk of my legal career as an Assistant United States Attorney, I am deeply humbled and honored to serve the office and federal judicial district in this capacity,” said Fleming. “I have immense respect for my colleagues, who work tirelessly to uphold the rule of law and fulfill the mission of the Department of Justice. I look forward to continuing this important and necessary work with our federal, state, and local partners.”
Fleming, as United States Attorney, is the top-ranking federal law enforcement official in the Eastern District of Missouri. The district serves 49 counties within three divisions – Northern, Eastern and Southern. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
In her time with the office, Fleming gained extensive legal experience prosecuting and supervising violent crime cases. Fleming most recently served as the office’s Appellate Chief.
Prior to joining the U.S. Attorney’s Office, Fleming was an associate at Bryan Cave Leighton Paisner. Fleming, who grew up in Charleston, Missouri, also clerked for the Honorable Stephen N. Limbaugh, Jr. Fleming received her Bachelor’s of Accountancy from Mississippi State University and her law degree from Vanderbilt University School of Law.
#####
Albuquerque woman charged with armed robbery and mail theftRead the Press Release
ALBUQUERQUE, N.M. – Cecilia Ann Gillespie, 31, of Albuquerque, was charged in federal court on Dec. 30 with robbery, brandishing a firearm during a crime of violence, mail theft and conspiracy to defraud the United States. A detention hearing is scheduled for Jan. 4.
On Oct. 13, a United States Postal Service (USPS) letter carrier was robbed at gunpoint at an apartment complex in Albuquerque. The suspects took mail keys and several pieces of U.S. Mail. On Nov. 23, a USPS letter carrier was robbed at gunpoint of two trays of mail in Albuquerque. The suspects allegedly fled both times in a white Dodge Avenger. A criminal complaint alleges that the vehicle used in the crimes belongs to Gillespie and that Gillespie was the driver in both armed robberies.
According to the complaint, on Dec. 11, U.S. Postal Inspectors located the white Dodge Avenger and allegedly observed Gillespie getting into the car. On Dec. 11, Postal Inspectors, Homeland Security Investigations and the New Mexico State Police conducted a search of the residence where the vehicle had been located. Inspectors found stolen mail, including stolen checks, both opened and unopened. Gillespie was one of the occupants on the lease.
If convicted, Gillespie faces a minimum of seven and up to 25 years in prison. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated this case with assistance from Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Albuquerque man charged with attempted bank robberyRead the Press Release
ALBUQUERQUE, N.M. – Daniel Hansen, 21, of Albuquerque, was charged in federal court today with attempted bank robbery. A detention hearing is scheduled for Jan. 5.
According to a criminal complaint, on Dec. 16, Hansen allegedly entered a bank and was informed by a teller that transactions must be conducted at the drive-through window. Hansen then allegedly approached the drive-through window on foot, told a teller that he would like to make a withdrawal, and was provided a withdrawal slip and a pen. Hansen allegedly returned the withdrawal slip with a demand for money. Understanding the bank was being robbed, the tellers backed away from the teller line and activated the security alarm. Hansen then allegedly returned to the vehicle in which he had arrived and fled.
Hansen was later identified through his involvement in an unrelated incident.
If convicted, Hansen faces up to 20 years in prison. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The FBI and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Wednesday 30 December 2020
U.S. Attorney's Office and FBI Announce Federal Charges and Arrests in December 2020 Human Trafficking TakedownRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Agent in Charge Aaron C. Rouse of the FBI announced today a federal human trafficking takedown in the District of Nevada. With this takedown, the District of Nevada closes out 2020 having filed more human trafficking cases than in any previous year.
Human trafficking — a crime that involves the use of force, fraud, or coercion to lure victims and force them into labor or commercial sexual exploitation — is a top priority area for the U.S. Attorney’s Office, the FBI, and their law enforcement and community partners. Every year, millions of women, men, and children are trafficked worldwide, including in Nevada.
“Combating sex trafficking is one of our prosecutors’ top enforcement priorities, and our office now has the pieces in place to stay at the forefront of this fight,” said U.S. Attorney Trutanich. “Heading into 2021, we remain committed to increasing investigations and prosecutions of traffickers, taking them off the streets and away from victims.”
“The FBI will always be vigilant in pursuing those who choose to prey on our most vulnerable, especially our children,” said Special Agent in Charge Rouse. “I would like to thank our law enforcement partners and their task force officers as part of the FBI's Child Exploitation Task Force for their commitment to making these arrests.”
This month, the U.S. Attorney’s Office brought five prosecutions related to human trafficking. Two of the five defendants were charged with federal sex trafficking offenses:
- On December 15, 2020, Kenton King, 25, of Las Vegas, was indicted on one count of coercion and enticement, one count of sexual exploitation of a child, one count of attempt sex trafficking, and one count of possession of child pornography. According to allegations in the indictment, King attempted to coerce and entice an underage victim to engage in numerous sexual offenses, including prostitution.
The case was investigated by the Henderson Police Department and the FBI. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
- On December 3, 2020, Jeffrey Lofstead, 63, of Kings Beach, California, was indicted on one count of attempted sex trafficking of children. According to allegations in the indictment, on or about October 7, 2020, Lofstead attempted to recruit and solicit a child, who had not yet attained the age of 18 years, to engage in a commercial sex act.
The case was investigated by the FBI’s Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of federal, local, and state law enforcement. Assistant U.S. Attorney Peter Walkingshaw is prosecuting the case.
In addition to the sex trafficking cases above, the December 2020 takedown included three other individuals charged with federal firearm offenses who either had been previously convicted of pandering offenses or whose alleged offenses related to vice operations:
- On December 9, 2020, Tamarion Keandre Williams, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 21, 2020, Williams illegally possessed a .40 caliber semi-automatic pistol. At the time of the alleged offense, Williams was on probation due to convictions for pandering and battery with substantial bodily harm in Clark County.
The case was investigated by the FBI, the Nevada Division of Probation, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
- On December 29, 2020, Darryl Henderson, of Las Vegas, made his initial appearance in federal court on a felon in possession of a firearm charge. As alleged in the criminal complaint, beginning on August 12, 2020, and continuing until on or about September 8, Henderson illegally possessed a .22 caliber semi-automatic pistol. Henderson is prohibited from possessing firearms due to prior felony convictions in Clark County. He was also pending sentencing in Nevada state court after pleading guilty to attempt pandering, which is a felony.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
- On December 21, 2020, Adrian Anguiano, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 27, 2020, Anguiano illegally possessed a 9mm semi-automatic pistol. Two weeks earlier, on November 13, police officers had observed a female enter Anguiano’s truck in an area known for prostitution. When officers attempted to contact the vehicle’s occupants, the driver fled, ramming a police vehicle and nearly hitting an officer in the process. The female was thrown from the vehicle, fracturing her skull and rendering her unconscious. Subsequent investigation identified Anguiano as the vehicle’s driver. On November 27, Anguiano was arrested by local law enforcement as he left his residence. A protective sweep of the residence revealed a 9mm semi-automatic pistol in plain view in Anguiano’s bedroom. He subsequently admitted to being in possession of the firearm.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
Other federal sex trafficking charges that federal prosecutors filed in the District of Nevada in 2020 include:
- On October 6, 2020, Denzel Renyal Michael Loyd, 35, of Las Vegas, was charged in a 10-count indictment with four counts of coercion and enticement; three counts of sexual exploitation of a child; one count of transfer of obscene material to minor; one count of sex trafficking of children; and one count of possession of child pornography. As alleged, from February 5 to March 9, 2020, Loyd coerced and enticed four underage victims via Facebook to engage in prostitution for him. The indictment further alleges that Loyd sent obscene material to a victim, and that he possessed child pornography on his cell phone.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
- On June 3, 2020, Mario Alston, 42, of Las Vegas, was charged with one count of attempted sex trafficking of children.
The case was also investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
A complaint and/or indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In addition to prosecutions, the U.S. Attorney’s Office is committed to prevention and spreading awareness of human trafficking. This year, the U.S. Attorney’s Office co-hosted training events for attorneys, victim services providers, and the community. The Department of Justice provided non-profit service providers with a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to survivors of human trafficking.
If you or someone you know is a victim of human trafficking, contact the Homeland Security Investigations’ Blue Campaign at 1-866-347-2423 or get help from the National Human Trafficking Hotline at 1-888-373-7888.
Report missing children or child pornography to the National Center for Missing and Exploited Children (NCMEC) at 1-800-THE-LOST (843-5678).
###
Ticketmaster Pays $10 Million Criminal Fine for Intrusions into Competitor’s Computer SystemsRead the Press Release
Earlier today in federal court in Brooklyn, Ticketmaster L.L.C. (Ticketmaster or the Company) agreed to pay a $10 million fine to resolve charges that it repeatedly accessed without authorization the computer systems of a competitor. The fine is part of a deferred prosecution agreement that Ticketmaster has entered with the United States Attorney’s Office for the Eastern District of New York to resolve a five-count criminal information filed today charging computer intrusion and fraud offenses. Previously, on October 18, 2019, Zeeshan Zaidi, the former head of Ticketmaster’s Artist Services division, pled guilty in a related case to conspiring to commit computer intrusions and wire fraud based on his participation in the same scheme. Both cases are assigned to U.S. District Judge Margo K. Brodie.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation’s New York Field Office, made the announcement.
“Ticketmaster employees repeatedly – and illegally – accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect business intelligence,” stated Acting U.S. Attorney DuCharme. “Further, Ticketmaster’s employees brazenly held a division-wide ‘summit’ at which the stolen passwords were used to access the victim company’s computers, as if that were an appropriate business tactic. Today’s resolution demonstrates that any company that obtains a competitor’s confidential information for commercial advantage, without authority or permission, should expect to be held accountable in federal court.”
"When employees walk out of one company and into another, it's illegal for them to take proprietary information with them. Ticketmaster used stolen information to gain an advantage over its competition, and then promoted the employees who broke the law. This investigation is a perfect example of why these laws exist - to protect consumers from being cheated in what should be a fair market place,” stated FBI Assistant Director-in-Charge Sweeney.
The Scheme to “Choke Off” the Victim Company
According to Ticketmaster’s admissions and publicly filed court documents, Ticketmaster, a wholly owned subsidiary of Live Nation Entertainment, Inc. (Live Nation), was primarily engaged in the business of selling and distributing tickets to events and concerts. The victim company offered artists the ability to sell presale tickets – sold in advance of general ticket sales – on an online ticketing platform. It also offered artists an Artist Toolbox (the Toolbox), which was a password-protected app that provided real-time data about tickets sold through the victim company.
Instrumental to the criminal scheme was Coconspirator-1, a former senior employee of the victim company, who worked in the company’s Brooklyn, New York offices from approximately May 2010 to July 2012. In approximately July 2012, Coconspirator-1 signed a separation agreement with the victim company, in which he agreed to maintain the confidentiality of that company’s confidential information. He then joined Live Nation in approximately August 2013.
In November 2013, while employed by Live Nation, Coconspirator-1 shared with Zaidi and another Ticketmaster employee the URLs for draft ticketing web pages that the victim company had built for an artist, but had not disseminated to the public. In response to a Ticketmaster executive explaining that the goal was to “choke off [victim company]” and “steal back one of [victim company]’s signature clients,” Coconspirator-1 offered that Ticketmaster could “cut [victim company] off at the knees” if they could win back presale ticketing business for a second major artist that was a client of the victim company.
Ticketmaster’s Intrusions Into the Victim Company’s Password-Protected Artist Toolboxes
In January 2014, Coconspirator-1 emailed Zaidi and a second Ticketmaster executive multiple sets of usernames and passwords for Toolboxes. Coconspirator-1 encouraged the executives to “screen-grab the hell out of the system,” but also warned, “I must stress that as this is access to a live [victim company] tool I would be careful in what you click on as it would be best not [to] giveaway that we are snooping around.” (Emphasis in original.) The information from the Toolboxes was then used to prepare a presentation for other senior executives that was intended to “benchmark” Ticketmaster’s offerings against those of the victim company.
In early May 2014, a senior executive of Live Nation (Corporate Officer-1) asked Zaidi and others how Ticketmaster’s presale online offering compared with the Toolbox. Coconspirator-1 was then asked to “do a screenshare/demo” at an upcoming “Artist Services Summit.” Coconspirator-1 agreed to “pull together a list of the log-ins and URL’s that I still have access to for this so I can give the team as much insight as possible.” At least 14 Live Nation and Ticketmaster employees attended the Artist Services Summit, in San Francisco. There, in front of those employees, Coconspirator-1 used a username and password he had retained from his employment at the victim company to log in to a Toolbox, and provided a demonstration. Coconspirator-1 later also provided Zaidi and other Ticketmaster executives with internal and confidential financial documents he had retained from his employment at the victim company.
In January 2015, Coconspirator-1 was transferred to the Artist Services division, promoted to Director of Client Relations, and given a raise. Following the promotion, Coconspirator-1 emailed another Artist Services employee, “Now we can really start to bring down the hammer on [Victim Company].” Ticketmaster employees continued to access password-protected victim company Toolboxes through December 2015.
Ticketmaster’s Surveillance of the Victim Company’s Draft Ticketing Web Pages
Between approximately July 2014 and June 2015, Coconspirator-1 and others monitored draft ticketing web pages created by the victim company. Although these pages were not password-protected, they were not indexed in search engines, and therefore could not be located without determining the exact URLs, which included a series of numbers. Until the victim company or artist publicly disseminated a URL, the victim company intended to restrict access to itself and the artist.
After joining Live Nation, Coconspirator-1 explained to Zaidi and others how the “store ID” numbers in the URLs were numbered sequentially, enabling Ticketmaster employees to monitor new pages and to learn which artists planned to use the victim company to sell tickets. Coconspirator-1 used this information to search for new victim company ticketing web pages, and sent the URLs to Ticketmaster executives. In or about January 2015, a Ticketmaster employee was assigned to learn about this system from Coconspirator-1, and maintained a spreadsheet listing every victim company ticketing web page that could be located, so that Ticketmaster could identify the victim company’s clients and attempt to dissuade them from selling tickets through the victim company. Zaidi explained that “we’re not supposed to tip anyone off that we have this view into [the victim company’s] activities.”
The Deferred Prosecution Agreement and Criminal Information
Under the terms of the deferred prosecution agreement, Ticketmaster will pay a criminal penalty of $10 million and will maintain a compliance and ethics program designed to prevent and detect violations of the Computer Fraud and Abuse Act and other applicable laws, and to prevent the unauthorized and unlawful acquisition of confidential information belonging to its competitors. Ticketmaster will also report to the United States Attorney’s Office annually during the three-year term of the agreement regarding these compliance measures. If the Company breaches the agreement, it will be subject to prosecution for the charges in the criminal information that was filed today, charging the Company with one count of conspiracy to commit computer intrusions, one count of computer intrusion for commercial advantage, one count of computer intrusion in furtherance of fraud, one count of wire fraud conspiracy and one count of wire fraud.
The investigation is being conducted by the FBI’s New York Field Office. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Allon Lifshitz, Craig R. Heeren and Ian C. Richardson are in charge of the prosecution.
The Defendants:
TICKETMASTER L.L.C.
E.D.N.Y. Docket No. 20-CR-563 (MKB)
ZEESHAN ZAIDI
Age: 46
New York, New YorkE.D.N.Y. Docket No. 19-CR-450 (MKB)
Rock Island Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Darrell Kenneth Holloway, age 29, of Rock Island, Illinois, to 150 months in prison for Possession with Intent to Distribute a Controlled Substance and Felon in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Holloway was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began on the evening of July 4, 2019, when a domestic dispute between Holloway and his girlfriend erupted into a violent altercation. While in Illinois, Holloway shot at his girlfriend’s vehicle as she drove away from him. Holloway then fled into Iowa, where he and another individual eluded law enforcement through the streets of Bettendorf. During their flight, Holloway’s vehicle drove the wrong way down streets, caused property damage, and struck squad cars, nearly striking police officers. Once stopped and apprehended by law enforcement, officers located a .45 caliber Smith and Wesson handgun in the vehicle and 36 pills containing a mixture of methamphetamine and caffeine. As a convicted felon, Holloway is prohibited from possessing a firearm.
The case was investigated by the Bettendorf Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Philadelphia Man Sentenced to 12 1/2 Years for Trafficking Methamphetamine and Weapons, Including 'Ghost Guns,' Near SchoolsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Matthew Stephens, 52, of Philadelphia, PA, was sentenced to 151 months in prison and ten years of supervised release by United States District Judge Harvey Bartle III for his role in a scheme to traffic pounds of methamphetamine, several dozen firearms, machine gun conversion devices, and hundreds of rounds of ammunition between 2017 and 2019.
The defendant pleaded guilty in November 2019 to seven counts of drug trafficking and firearms charges, and then pleaded guilty again in August 2020 to nine additional firearms offenses charged in two Superseding Indictments. The specific charges included conspiracy to distribute methamphetamine, distribution of methamphetamine within 1,000 feet of a school, possession of a machine gun, possession of a non-registered machine gun, possession of a firearm by a felon, and dealing in firearms without a license.
The charges against Stephens stemmed from a long-term investigation conducted by the ATF into methamphetamine and firearms trafficking in the area of two public schools in the Kensington neighborhood of Philadelphia. In 2018 and 2019, during the course of this investigation, the defendant sold dozens of firearms to the ATF through a confidential informant. Many of these firearms had serial numbers that were obliterated, and still others were homemade, un-serialized, AR-15 style assault rifles, commonly referred to as “ghost guns” or “PMFs” (Privately Made Firearms) due to the complete absence of traceable manufacturer markings. Stephens also sold to the ATF during dozens of transactions parts designed to convert a semiautomatic firearm into a fully automatic firearm (“auto sears”), Glock machine gun conversion “kits,” two rifles and more than one hundred rounds of ammunition.
On March 27, 2019, Stephens was arrested during an ATF sting operation in the parking lot of a Wawa convenience store on Bustleton Avenue in North Philadelphia. At the time of his arrest, the defendant was in possession of over three kilograms of methamphetamine. For his criminal conduct, which included his role in three different conspiracies between 2017 and 2019, Stephens was later charged in three separate Indictments.
In total, Stephens sold 52 firearms, 44 machinegun conversion devices, and hundreds of rounds of ammunition, as well as more than $50,000 worth of methamphetamine. Many of the transactions occurred within one block of a public elementary school in Philadelphia. Two of the transactions involving methamphetamine occurred at a rest stop on the New Jersey Turnpike.
“This defendant personally threatened the safety of our communities,” said First Assistant United States Attorney Williams. “He sold drugs and firearms, including homemade untraceable firearms, immediately adjacent to two public schools, directly endangering the lives of children. Thanks to the steady, determined efforts of investigators at the ATF, Stephens’ revolving door of criminal contraband has been cut off.”
“Trafficked firearms represent a danger to our community, because they can end up in the hands of convicted felons, violent criminals, and many other kinds of people who are prohibited from having firearms,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This successful investigation and prosecution is a testament to our terrific partnership with the U.S. Attorney’s Office, and a reflection of our commitment to aggressively pursuing firearms traffickers in our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorneys Justin Ashenfelter and Priya T. De Souza.
Manitowoc Man Sentenced to Nine Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 15, 2020, Jonathon A. Erickson, also known as “Jonathon A. Jimenez” (age: 19), of Manitowoc, Wisconsin, was sentenced to nine years in federal prison for possession of controlled substances with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and unlawful possession of a firearm by a felon.
According to court documents, on April 26, 2020, City of Manitowoc police responded to a disturbance outside a parked car involving Erickson. Officers smelled marijuana coming from a backpack located in the vehicle. Inside the backpack, officers located marijuana, hydrocodone, ecstasy, Clonazepam, and a variety of other controlled substances, as well as a digital scale and a loaded Smith and Wesson 9mm handgun. A subsequent investigation linked ownership of the backpack and its contents to Erickson, a previously convicted felon.
In pronouncing sentence, Senior U.S. District Judge William C. Griesbach noted the serious nature of Erickson’s offense and the need to send a message of deterrence to Erickson and others involved with illegal drugs and firearms. The judge ordered that Erickson’s nine-year prison term be followed by seven years of supervised release.
The case was investigated by the City of Manitowoc Police Department and the Manitowoc County Metropolitan Enforcement Group. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Nathan Nosley, age 29, has been charged with sexual exploitation of children and distributing, receiving, possessing, and accessing child pornography. The charges are contained in a Superseding Indictment filed on December 16, 2020, in United States District Court in Cedar Rapids.
The six-count Superseding Indictment alleges that, between 2017 and 2020, Nosley persuaded, induced, and enticed minors under 18 to produce images of sexually explicit conduct that were transported in interstate commerce, distributed child pornography, received child pornography, possessed child pornography on a cell phone and a memory card (two counts), and accessed child pornography on a cell phone.
If convicted, Nosley faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 120 years’ imprisonment, a $1,500,000 fine, $201,600 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Nosley appeared on November 25, 2020, in federal court in Cedar Rapids for a detention hearing and was held without bond. Nosley’s next appearance for trial is set for March 22, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Iowa State Patrol, and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-101.
Follow us on Twitter @USAO_NDIA.
Keokuk Man Sentenced to Prison for Felon in Possession of AmmunitionRead the Press Release
DAVENPORT, Iowa — On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Logan David Bode, age 32, of Keokuk, to 100 months in prison for Felon in Possession of Ammunition announced United States Attorney Marc Krickbaum. Following his prison term, Bode was ordered to serve three years of supervised release and pay $100 to the Crime Victims’ Fund.
The investigation began on September 1, 2019, when law enforcement was dispatched to a shots-fired incident in Keokuk. The investigation revealed Bode had argued with another male and shot at the man’s vehicle. On September 28, 2019, officers located Bode and arrested him on outstanding warrants. At that time, Bode was in possession of an inoperable firearm with a defaced serial number and three .45 caliber bullets. As a convicted felon, Bode is prohibited from possessing ammunition.
This matter was investigated by the Keokuk Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Kalona Man Sentenced to 25 Years in Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa—On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Jackson Yaro Young, age 22, of Kalona, to 300 months in prison for Production, Receipt, Possession, and Transfer of Child Pornography announced United States Attorney Marc Krickbaum. Following his prison term, Young was ordered to serve ten years of supervised release and pay $600.00 to the Crime Victims’ Fund.
The investigation of Young began in March 2019 when the Washington County, Iowa Probation Office received information that Young had been seen interacting with a minor in public. At the time, Young was on probation for a sexual abuse conviction originating in Linn County. Following further investigation, the Washington County Sheriff’s Office seized two phones from Young. Forensic review of the phones revealed images and videos of child pornography, as well as sexually explicit communication between Young and multiple minors. In communications retrieved from his phone, Young knowingly coerced his victims to engage in sexually explicit conduct. Young acted with the purpose of creating pornographic content and visual depictions of such content, as well as storing the material. Photos and images, produced and collected by Young, were transported electronically through interstate commerce through cellphone usage, and Young knew his victims were under 18 years of age.
This matter was investigated by the Federal Bureau of Investigation and the Washington County Sherriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Justice Department Seeks Forfeiture of Third Commercial Property Purchased with Funds Misappropriated from PrivatBank in UkraineRead the Press Release
Today, the U.S. Department of Justice filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida alleging that commercial real estate in Cleveland, Ohio, was acquired using funds misappropriated from PrivatBank in Ukraine as part of a multi-billion-dollar loan scheme.
Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Justin E. Herdman for the Northern District of Ohio and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
In August 2020, two other civil forfeiture complaints were filed in the Southern District of Florida involving properties in Louisville, Kentucky and Dallas, Texas, in which it was alleged that those properties were also acquired using funds misappropriated from PrivatBank in Ukraine. All three properties are alleged to be subject to forfeiture based on violations of federal money laundering statutes.
The three complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the complaints, in the United States, associates of Kolomoisky and Boholiubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the office tower known as 55 Public Square in Cleveland, Ohio, the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of more than $60 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida are handling these cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Secures Relief for U.S. Army National Guard Reservist on Employment Discrimination Claim Against Luxury Jeweler Harry WinstonRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the Southern District of Texas announced today that they resolved a claim that luxury jeweler Harry Winston Inc. violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer full-time employment to U.S. Army National Guard Reservist John A. Walker because of his military service obligations.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all servicemembers for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, reservist Walker applied for a job with Harry Winston, Inc., which denied his application. Walker alleged that Harry Winston, Inc. refused to hire him because of his military service obligations. Under the terms of the settlement, Harry Winston, Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
The U.S. Department of Labor (DOL) referred this matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled the case and work collaboratively with the DOL to protect the jobs and benefits of military members.
This investigation was led by Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens and Paralegal Specialist Raymond Babauta of the Southern District of Texas, along with Assistant Director Andrew Braniff of the Department of Justice’s Servicemembers and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Jewelry Wholesaler Pleads Guilty in $200 Million Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Gregory Altieri pleaded guilty to wire fraud for running a two-year $200 million Ponzi scheme based on false statements to investors about inflated returns for nonexistent wholesale jewelry deals. As part of the plea, Altieri also admitted to committing securities fraud in connection with the scheme. When sentenced, Altieri faces up to 20 years in prison. Today’s proceeding took place before United States District Judge Brian M. Cogan.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Altieri is held accountable for duping dozens of investors, including retirees living off their pensions,” stated Acting United States Attorney DuCharme. “The defendant’s lies have caught up to him and he will now face the consequences of his fraudulent scheme.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, for its exemplary work on the case, and to the Securities and Exchange Commission, New York Regional Office, for their assistance.
Beginning in August 2017, Altieri solicited between $75 million to $85 million in investments in his entity, LNA Associates, from over 80 investors located in Queens, Staten Island, Long Island and elsewhere. Altieri told investors that their money would be used to purchase jewelry at “closeout” prices, which would then be resold at a high profit yielding returns on those investments of between 30 and 70 percent in a matter of months. While Altieri initially purchased some jewelry with investors’ money, since approximately May 2018, he used money from new investors to pay earlier investors, representing to the latter group that they were receiving returns on their investments. These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates by “rolling over” their funds into new investments based on false promises to use this money to purchase additional jewelry. By January 2020, when Altieri stopped making payments to investors, he owed them approximately $200 million based on the falsely inflated promised returns.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit and by a Special Agent of the Office’s Business & Securities Fraud Section.
The Defendant:
GREGORY ALTIERI
Age: 53
Melville, New YorkE.D.N.Y. Docket No. 20-CR-249 (BMC)
Jennings Woman Sentenced for Mail Theft by USPS EmployeeRead the Press Release
A woman was sentenced in federal court today after stealing cash and hydrocodone tablets from packages while working for the U.S. Postal Service, announced U.S. Attorney Trent Shores.
Jennifer Louise Bruce, 44, of Jennings, received a sentence of three years of probation from Chief U.S. District Judge John E. Dowdell. Bruce was convicted of mail theft after stealing hydrocodone tablets from packages mailed by a VA Medical Center and Outpatient Clinics on several different occasions and stealing cash from cards that had been mailed through the Postal Service.
“Abusing a position of trust within the U.S. Postal Service for the purpose of stealing drugs and money undermines the public’s trust in an essential government service. Jennifer Bruce violated the sanctity of the mail by corruptly acting for personal gain,” said U.S. Attorney Trent Shores.
In her plea agreement, Bruce admitted to stealing money from cards and controlled substances from packages that had been mailed. She stated that during this time, she was employed by the U.S. Postal Service as a Sales and Services Associate. Over a four-month period, Bruce admitted that she stole a total of 240 hydrocodone tablets.
The Office of the Inspector General of the U.S. Postal Service conducted the investigation. Assistant U.S. Attorneys Joseph F. Wilson, now retired, and Kevin C. Leitch prosecuted the case.
Identity Thief Extradited from Dominican Republic Sentenced to Two and ½ Years in Prison for Using Stolen Information to Commit Tax FraudRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Arleny Reyes Nunez, 42, of Philadelphia, PA and the Dominican Republic, was sentenced to 30 months in prison and three years of supervised release, and ordered to pay $154,528 in restitution by United States District Judge Harvey Bartle III, for using the personal identification information of others to file fraudulent tax returns, resulting in more than $150,000 in losses to the federal government.
In August 2020, the defendant pleaded guilty to charges of criminal conspiracy to defraud the federal government, theft of government funds, and the unlawful possession and use of a means of identification. The charges were the result of the defendant and her co-conspirators acting together to defraud the United States by filing fraudulent tax returns using the identities of others.
From 2010 through May 2014, Reyes Nunez prepared and filed approximately 29 false tax returns, retrieved the refund checks (sometimes paying a minor child to retrieve paper checks from mailboxes at vacant Philadelphia properties), and deposited the checks into bank accounts associated with fake businesses she created in furtherance of this scheme. Later, in order to avoid apprehension, the defendant fled to her home country of the Dominican Republic, where she was ultimately arrested by local authorities for using a false passport and extradited back to the United States in January 2020.
“The defendant played a key role in a scheme to exploit others’ personal information in order to steal from the federal government,” said First Assistant U.S. Attorney Williams. “Further, when Reyes Nunez became aware that authorities had a warrant for her arrest, she abandoned her family and fled the United States in order to avoid facing criminal consequences. But she could not outrun justice, and now she will pay her debt to society.”
“Ms. Reyes Nunez thought she could flee the country to evade prosecution,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “What she failed to count on is that IRS Criminal Investigation special agents work diligently to identify and bring to prosecution those who engage in tax fraud. Her extradition and sentencing should serve as a reminder that we are committed to vigorously pursuing those who undermine the integrity of the U.S. tax system.”
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to over three months in federal prison.
Juan Carlos Cabrera-Carreto, age 45, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a guilty plea on November 13, 2020, to one count of illegal reentry into the United States.
At the guilty plea, Cabrera-Carreto admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Cabrera-Carreto was deported in September 2005. Cabrera-Carreto most recently came to the attention of immigration agents following a traffic accident in September 2020.
Cabrera-Carreto was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cabrera-Carreto was sentenced to 97 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Cabrera-Carreto is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-83. Follow us on Twitter @USAO_NDIA.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to four months in federal prison.
Andres Mejia-Perez, age 30, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a guilty plea on October 30, 2020, to one count of illegal reentry into the United States.
In a plea agreement, Mejia-Perez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Mejia-Perez was deported in January 2012 and he illegally reentered the United States in April 2012. Mejia-Perez most recently came to the attention of immigration agents in May 2020 when he was found during the execution of a state search warrant at a home in Toledo.
Mejia-Perez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mejia-Perez was sentenced to 119 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mejia-Perez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-72. Follow us on Twitter @USAO_NDIA.
Employment discrimination claim resolved on behalf of U.S. Army National Guard reservistRead the Press Release
HOUSTON – Luxury Jeweler Harry Winston has paid a U.S. Army reservist to resolve a claim they violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer him full-time employment.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all service members for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas (SDTX). “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, John Walker applied for a job with Harry Winston Inc. who ultimately denied his application. Walker alleged Harry Winston Inc. refused to hire him because of his military service obligations.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages. It also intended to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service. USERRA also prohibits discrimination against persons because of their service in the uniformed services or if they pursue a claim.
Under the terms of the settlement, Harry Winston Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
The Department of Labor - Veterans’ Employment and Training Service conducted the investigation.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled the matter with Assistant Director Andrew Braniff of the Department of Justice’s Service members and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section. SDTX paralegal specialists Raymond Babauta and Nicole Robbins also provided assistance.
Davenport Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Dawone Darnell Henderson, age 34, of Davenport, to 151 months in prison for Possession with Intent to Distribute a Controlled Substance and Felon in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Henderson was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began in 2019 during routine patrol of a privately-owned park. Officers found two males loitering under a pavilion. As officers approached the men, one of the men— Henderson—fled. As he ran, Henderson threw a .40 caliber Smith and Wesson handgun over a fence into a residential yard. After arresting Henderson, officers located crack cocaine in his pocket. Henderson is a convicted felon and is prohibited from possessing a firearm.
This case was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Indicted on Federal Child Pornography ChargeRead the Press Release
BOSTON – An Auburn man was indicted today by a federal grand jury on a child pornography charge.
Christopher Rondeau, 35, was indicted on one count of possession of child pornography and will be arraigned in federal court in Worcester at a later date. Rondeau was arrested and charged by criminal complaint on Nov. 6, 2020.
According to the charging documents, a search was executed at Rondeau’s residence where a cell phone was found containing images and videos of child pornography. In 2016, Rondeau was convicted of receipt of child pornography and sentenced to 68 months in prison and seven years of supervised release. He was released from federal custody in August 2019 and was on supervised release at the time of his November arrest.
Due to Rondeau’s prior conviction, the charging statute provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tuesday 29 December 2020
United States Attorney David J. Freed Announces ResignationRead the Press Release
HARRISBURG – United States Attorney David J. Freed, of Camp Hill, PA, has announced his resignation effective midnight January 1, 2021. Mr. Freed is departing the office after serving for more than three years as the chief federal law enforcement officer for the Middle District of Pennsylvania, which consists of 33 counties in Central and Northeastern Pennsylvania and has offices in Harrisburg, Scranton, and Williamsport. Mr. Freed was nominated as United States Attorney by Senators Pat Toomey and Bob Casey, appointed by President Donald Trump in September, 2017, confirmed by the United States Senate in November, 2017, and sworn in as United States Attorney on November 27th, 2017.
Mr. Freed was born in West Chester, PA, and raised first in Pottsville, PA, and later Camp Hill, PA, where he resides with his family. He is a graduate of Camp Hill High School, Washington and Lee University, and the Pennsylvania State University Dickinson School of Law. Prior to his appointment as United States Attorney, Mr. Freed served for twelve years as the District Attorney of Cumberland County.
“I have been enormously privileged to be able to serve my fellow citizens, first as a young prosecutor in York County, then later in several positions in Cumberland County including 12 years as District Attorney, and finally as the United States Attorney for the Middle District of Pennsylvania. I have done my best to be thoughtful and consistent, and to provide justice to my fellow citizens in a fair, effective and efficient manner. I am grateful to President Trump and Senators Toomey and Casey for the opportunity to serve; and to former Attorneys General Sessions and Barr for their leadership of the Department.”
“I have had the incredible opportunity to work with our brave men and women in law enforcement nearly every day for the past 20 years and continue to be amazed by their commitment to their fellow citizens. I have witnessed first-hand the fortitude and grace of victims of crime, and have taken to heart the awesome responsibility of speaking for those who cannot speak for themselves.”
“For the past three years, I have had the great fortune to work with the highly skilled attorneys and staff in the Middle District of Pennsylvania. It is an office blessed with experienced and dedicated leaders, and colleagues who truly understand the importance of working together for the benefit of their fellow citizens. It was not difficult to recognize, frankly before I even started, that the office was efficient and productive, and was in need of very little change. More than anything over the past three years, I have endeavored above all to tell the story of the great accomplishments of the office. While the public words are mine, the accomplishments belong to them.”
The United States Attorney’s Office for the Middle District of Pennsylvania consists of three distinct Divisions: Criminal, Civil, and Administrative. The accomplishments of each Division during Mr. Freed’s tenure are many and varied.
Criminal
Foremost among the office’s accomplishments during Mr. Freed’s tenure has been the continued commitment to working together with state and local partners in an effort to reduce violent crimes in targeted areas throughout the District. As part of the Department of Justice priority programs Project Safe Neighborhoods and Project Guardian, the office has worked hand in hand with District Attorneys, state and local law enforcement and community partners in target areas including the cities of Harrisburg, Wilkes Barre, Williamsport, and York to address gun violence at a micro level. I am happy to report that our efforts have been successful as reflected by recent statistics showing significant reductions in gun violence throughout the District. In addition, the office pursued and successfully prosecuted numerous priority cases in the areas of public corruption, drug trafficking, drug delivery resulting in death, drug distribution and illegal prescribing by medical professionals, fraud, sex trafficking and exploitation of minors, environmental crimes and illegal immigration.
Civil
The office’s Civil Division has wide areas of responsibility, from defending federal agencies and employees in civil matters to immigration, discrimination matters, and prisoner litigation. Following a reorganization of the office’s affirmative civil efforts, the Affirmative Civil Enforcement (ACE) Unit was formed to allow a dedicated team of attorneys and investigators to attack fraud against the government. The ACE unit has enjoyed nearly immediate success, bringing cases and negotiating the return of millions of taxpayer dollars that individuals and businesses had obtained by fraudulent means. The Civil Division continues to focus upon important polling place access discrimination cases throughout the district with the goal of ensuring that every eligible citizen will be able to cast a vote regardless of any disability. With a federal prison population that is larger than all but two other districts in the nation, the dedicated prisoner litigation attorneys and paralegals handle a constant stream of cases from the district’s federal correctional institutions with extremely favorable outcomes.
Administrative
Notwithstanding the current pandemic and the longest government shutdown in United States history, the office’s Administrative Division has been exceedingly productive during the past three years. Chief among these accomplishments has been the institution of a yearly strategic planning process including individual employee self-assessments and clear yearly goals updated annually and monitored throughout the year. In addition, the support of the Administrative Division has allowed the Financial Litigation Unit to collect well in excess of the District’s budget each year, and allowed the District to maintain its position as the one of the most productive medium sized offices in the nation.
Upon Mr. Freed’s departure, First Assistant United States Attorney Bruce D. Brandler will assume the position of United States Attorney pursuant to the Vacancies Reform Act. Mr. Brandler has been with the office for more than 30 years, and previously served as United States Attorney from 2016 to 2017.
# # #
U.S. Attorney’s Office Settles Disability Discrimination Allegations with Operator of Skilled Nursing FacilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with Alliance Health and Human Services, the operator of eight skilled nursing facilities in Massachusetts, to resolve allegations that they violated the Americans with Disabilities Act (ADA) by turning away patients because they were being treated for Opioid Use Disorder (OUD).
According to the complaint, Alliance denied individuals seeking admission on more than 350 occasions because they were being treated with buprenorphine or methadone, medications used to treat OUD. These individuals were seeking admission to the facilities for health issues unrelated to their addiction, but also required that the facilities administer those treatments as they would administer any other medication. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, Alliance will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, pay a civil penalty of $50,000 to the United States, $10,000 of which will be paid now and $40,000 of which shall be suspended and forgiven if Alliance materially complies with the terms of the agreement.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the Title III of the ADA and to eliminate discriminatory barriers to treatment for OUD. In May 2018, the U.S. Attorney’s Office reached a settlement with Charlwell House, a rehabilitation center that provides skilled nursing services. A similar settlement was reached with Athena Health Care Systems in September 2019. Today’s settlement marks the third resolution in the District of Massachusetts.
This matter was handled by Assistant U.S. Attorneys Torey Cummings and Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.-
U.S. Attorney's Office Collects $9,055,193 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that the Southern District of Indiana collected $9,055,193.32 in criminal and civil actions in Fiscal Year 2020. Of this amount, $2,195,355.91was collected in criminal actions and $6,859,837.41was collected in civil actions.
The Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
“The Southern District of Indiana’s Civil Division and Asset Recovery Unit have some of the best federal prosecutors and support staff in the country,” said Childress. “They work tirelessly every day to protect Hoosiers and their resources. Returning over $9 million to the victims of these criminal and civil cases is very satisfying. This office is committed to enforcing federal laws and holding those accountable who choose to do harm to our citizens.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Indiana, working with partner agencies and divisions, collected $7,879,734 asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This demonstrates the Office’s firm commitment to enforcing the collection of criminal impositions and civil debts owed to the United States to maximize recoveries to the United States Treasury and to victims of crime.
Tulsa Man Sentenced for Wire FraudRead the Press Release
A Tulsa man was sentenced in federal court this afternoon for a wire fraud scheme in which he conned a coworker out of more than $90,000, announced U.S. Attorney Trent Shores.
Christopher Jeremy McConnell, 35, was sentenced to five years of probation with eight months home confinement by Chief U.S. District Judge John E. Dowdell. Further, McConnell will be required to pay $90,440.49 to the victim, which is equivalent to the monetary loss the victim incurred due to McConnell’s criminal activity.
“Christopher McConnell made shimmering promises about silver and gold. His promises were empty, but his fraudulent intent was all too real. He defrauded his victim out of more than $90,000 of her hard earned money,” said U.S. Attorney Trent Shores. “McConnell must now pay back that which he stole and make the victim whole again. I commend the FBI for their investigation into this deceitful scheme.”
In his plea agreement, McConnell admitted that from November 2016 to July 2017 he befriended the victim, who was a coworker. He stated that he learned of an investment account that the victim held and he fraudulently persuaded her to transfer her investment funds to his account, promising her that he could manage her funds and invest them in “Euro-Dollars” and silver and gold for her benefit. However, McConnell stated that instead of investing the funds the victim transferred to him, he spent the money almost entirely on personal expenditures, including food, retail items, travel, and personal investment, all without the victim’s knowledge.
The FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Tennessee State Prison Inmate Charged with Mail StalkingRead the Press Release
NASHVILLE, Tenn. – December 29, 2020 – An inmate at the Tennessee Department of Correction has been charged with using the U.S. Mail to harass and intimidate the widow of a man he murdered in 2009, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint unsealed today charged Hank Wise, 55, with mail stalking, after sending numerous letters and other communications to the woman through her attorney.
“We owe a duty to victims of crime to ensure that they will not continue to be subjected to cruel acts which cause emotional distress as alleged here,” said U.S. Attorney Cochran. “We simply will not stand for this.”
On April 2, 2009, while at the Buck Wild Saloon in Nashville, Wise shot and killed a man identified in the complaint as “B.G.” in front of his wife. In April 2012, Wise was convicted of second degree murder in Davidson County Criminal Court and subsequently sentenced to 23 years in prison.
While in prison, beginning in approximately 2011, Wise began sending letters to the victim’s widow, through her attorney, which lasted until 2017. The communications were also in the form of holiday cards such as Christmas and Valentine’s Day and contained romantic overtures, professing his love for her and telling her that he thinks about her every day.
Wise continued to send letters and cards intended for the woman through her attorney until 2017. Although initially aware of the communications, the woman asked her attorney not to notify her of any subsequent letters after 2012. After 2012, the attorney continued to receive letters from Wise, intended for the woman, but in keeping with his client’s wishes, he did not share the communications with her until sometime in 2019. The woman was highly distressed when she learned of the continued attempts by Wise to communicate with her.
Wise made an initial appearance before a U.S. Magistrate Judge this afternoon. If convicted of this charge, he faces up to five years in federal prison.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Robert E. McGuire.
A criminal complaint is merely an accusation. Wise is presumed innocent until proven guilty in a court of law.
# # # # #
Statement by Acting Attorney General Jeffrey A. Rosen on the Pakistani Proceedings Relating to the Abduction and Murder of Daniel PearlRead the Press Release
Acting Attorney General Jeffrey A. Rosen has released the following statement:
“We understand that Pakistani authorities are taking steps to ensure that Omar Sheikh remains in custody while the Supreme Court appeal seeking to reinstate his conviction continues. The separate judicial rulings reversing his conviction and ordering his release are an affront to terrorism victims everywhere. We remain grateful for the Pakistani government’s actions to appeal such rulings to ensure that he and his co-defendants are held accountable. If, however, those efforts do not succeed, the United States stands ready to take custody of Omar Sheikh to stand trial here. We cannot allow him to evade justice for his role in Daniel Pearl’s abduction and murder.”
Sioux City Man Sentenced to Federal Prison for Child PornographyRead the Press Release
A man who possessed child pornography was sentenced on December 23, 2020, to over 7 years in federal prison.
Justin Allen Pageler, age 35, from Sioux City, Iowa, received the prison term after a July 20, 2020, guilty plea to one count of possession of child pornography.
In a plea agreement, Pageler admitted that between September 25, 2018 and June 26, 2019, in the Northern District of Iowa, he knowingly possessed visual depictions of minors engaged in sexually explicit conduct. Pageler stated in an interview with law enforcement that he utilized peer-to-peer file sharing services BitTorrent and Ares on computers in his home to download and view the pornography.
Pageler was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Pageler was sentenced to 90 months’ imprisonment and ordered to pay $21,000 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Pageler 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 Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Timothy Duax and investigated by the Iowa Division of Criminal Investigation, the Iowa Internet Crimes Against Children Task Force, the FBI Child Exploitation Task Force, and the U.S. Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4060.
Follow us on Twitter @USAO_NDIA.
Northern District of Oklahoma Collects $6.4 Million in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
U.S. Attorney Trent Shores today announced the Northern District of Oklahoma collected $6,409,728.95 in criminal and civil actions in Fiscal Year 2020. Of this amount, $3,259,066.71 was collected in criminal actions and $3,150,662.24 was collected in civil actions.
“The U.S. Attorney’s Office’s Asset Recovery Unit diligently works to ensure that restitution and fines are paid in full and that civil financial obligations are met,” said U.S. Attorney Trent Shores. “The more than $6.4 million collected in criminal and civil actions this year reflects our commitment to safeguarding taxpayer resources and ensuring victims of crime receive a full measure of justice, including financial restitution, compensation, and access to victim related services.”
U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to victims of federal crimes. Defendants are required by law to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and assistance programs.
Examples of the Northern District of Oklahoma’s FY 2020 Collection Efforts:
- In a 2018, the Court ordered the forfeiture of a Jack Clark’s properties after he was convicted of filing over $10,000,000 in false excise tax refund claims with the IRS. The refunds were used by the defendant, former president of Clark Oil Distributors, Inc., to fuel an extravagant lifestyle. In March 2020, the United States received $1,905,776.29 from the sale of one of those properties.
- Other forfeiture examples include $67,000 and a vehicle as part of Operation Smack Dragon and $7,500 worth of firearms from Operation Ice N Go.
The Asset Recovery Unit also ensures the collection of restitution ordered by the Court for victims of crimes.
- In 2017, the court ordered Mark Long, a defendant who downloaded and viewed child pornography, to pay $24,000 in restitution to the children victimized during the production of the pornography. Through the Inmate Financial Responsibility Program and a large payment after the defendant was released from prison, the victims in this case were paid in full in FY 2020.
- In a second case, Barbara Jo Porter, a member of a philanthropic organization, used the organization’s credit card to withdraw cash for her own personal use. During sentencing, the Court ordered the defendant to pay $20,232.35 in restitution to the organization. The defendant made her final payment in FY2020.
The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs and allows the government to address losses it sustains by providing for civil monetary penalties.
- In FY 2020, the U.S. Attorney’s Office civil division assessed such a penalty against a Louisiana physician assistant for accepting illegal pharmacy kickback payments in return for recommending and prescribing compounded drugs from OK Compounding. He entered into a settlement agreement with the United States, agreeing to pay $620, 508.36.
- In another settlement agreement, a Texas doctor agreed to pay the United States $300,000 to resolve False Claims Act allegations that he accepted illegal kickback payments from OK Compounding. The settlement agreements resolved allegations against both men.
Overall, the Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
***
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Muscatine Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
DAVENPORT, Iowa — On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Emilio Daniel Dillon, age 23, of Muscatine, to 70 months in prison for Receipt of Child Pornography announced United States Attorney Marc Krickbaum. Dillon is required to pay $5,000 in victim restitution and pay $100 to the Crime Victims’ Fund. Following his prison term, Dillon will serve five years of supervised release.
The investigation of Dillon began in October of 2019 when Dillon sold a Samsung tablet to a pawn shop in Muscatine. A manager from the pawn shop brought the device to the Muscatine Police Department (MPD) reporting that child pornography was found on the tablet when it was being prepared for resale. Further investigation revealed several photos and eleven videos of child pornography with victims as young as five years old. In an interview with law enforcement on November 20, 2019, Dillon admitted to downloading the child pornography onto the tablet.
This matter was investigated by the Muscatine Police Department and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Miami Woman Sentenced to 10 Years for Methamphetamine Drug ConspiracyRead the Press Release
TULSA, Okla. – A Miami woman was sentenced today in U.S. District Court for conspiring with her sister to distribute over 50 grams of methamphetamine, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Megan Nicole Hollenbeck, 29, to 10 years in federal prison followed by five years of supervised release.
“Whether an addiction or a vice, Megan Hollenbeck contributed to the methamphetamine problem in Miami. She conspired with her sister to deal meth for profit,” said U.S. Attorney Trent Shores. “She will now spend the next 10 years in federal prison as a result of her criminal choices.”
Hollenbeck previously pleaded guilty to drug conspiracy. Her sister also pleaded guilty to taking part in the conspiracy and is set to be sentenced in February 2021. On Aug. 15, 2019, Hollenbeck and her sister Monica conspired to distribute and to possess with intent to distribute 50 grams or more of actual methamphetamine, during a law enforcement “controlled buy” that was captured on video. The two were arrested in Miami, Oklahoma, as part of Organized Crime Drug Enforcement Task Force Operation “Pullin’ Chains.”
The Drug Enforcement Administration, Bureau of Indian Affairs, and Miami Police Department conducted the investigation. Assistant U.S. Attorney Thomas E. Duncombe prosecuted the case.
Justice Department Announces Closing of Investigation into 2014 Officer Involved Shooting in Cleveland, OhioRead the Press Release
The Justice Department announced today that the career prosecutors reviewing the independent federal investigation into the fatal shooting of Tamir Rice on Nov. 22, 2014, in Cleveland, Ohio, found insufficient evidence to support federal criminal charges against Cleveland Division of Police (CDP) Officers Timothy Loehmann and Frank Garmback. Yesterday the department notified counsel for Mr. Rice’s family of the decision and today sent a letter to Mr. Rice’s family explaining the findings of the investigation and reasons for the decision.
Applicable Law
The department examined the facts in this case under relevant federal criminal statutes. The federal criminal statute applicable to these facts is Title 18, U.S. Code, Section 242, Deprivation of Rights Under Color of Law. In order to proceed with a prosecution under Section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a federally protected right. The right implicated in this matter is the Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police. To prove that a police shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving. Finally, caselaw establishes that an officer is permitted to use deadly force where he reasonably believes that the suspect posed an imminent threat of serious physical harm, either to the officer or to others.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment.
Although Tamir Rice’s death is tragic, the evidence does not meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, career federal prosecutors with both the Civil Rights Division and the U.S. Attorney’s Office concluded that this matter is not a prosecutable violation of the federal statutes.
Factual Overview
This summary is based on, and consistent with, all facts known to the government after a thorough examination, most of which are undisputed.
On Nov. 22, 2014, Tamir spent the majority of the day at the Cudell Park Recreation Center (CPRC). Throughout the day, Tamir was frequently seen playing with a toy black airsoft pistol with a removable magazine that was visually virtually indistinguishable from a real .45 Colt semi-automatic pistol. Tamir would periodically point the toy gun at individuals at the CPRC and at the adjoining playground.
At approximately 3:11 p.m., an individual made a “911” call to report that a “guy with a pistol” was pointing a gun at multiple people on the playground at the CPRC. The caller gave a detailed description of the individual, stated that he was “probably a juvenile,” and that the gun was “probably fake,” but he also described the scene as very frightening. On the date of the incident, Tamir was 12-years-old and stood 5’7” and 195 lbs.
A 911 dispatcher subsequently broadcast the call as a “Code 1” (the highest priority call) and Officers Garmback and Loehmann radioed that they would respond. The information the dispatcher relayed to Officers Garmback and Loehmann was “there’s a black male sitting on the swing. He’s wearing a camouflage hat, a gray jacket with black sleeves. He keeps pulling a gun out of his pants and pointing it at people.” The dispatcher did not relay that the individual might be a juvenile or that the gun might be fake. Thus, the officers believed that they were responding to a playground where a grown man was brandishing a real gun at individuals, presumably including children.
Video from the CPRC captured the subsequent events. It is important to note that the video footage is grainy, shot from a distance, does not show detail or perspective, and portions of the incident are not visible because of the location of the patrol car. Further, the time lapse footage captures approximately two frames per second at a variable rate, which is incapable of capturing continuous action.
Officers Garmback and Loehmann approached the CPRC’s playground area with a swing set, Tamir’s reported location. Tamir was not in the swing set area when the patrol car entered the park, but was sitting alone at a picnic table under the gazebo located west of the swing set. He matched the description of the suspect provided by the dispatcher. No other people were in the immediate area.
It is not clear from the video evidence when Tamir became aware of the patrol car driving toward the gazebo. Tamir stood up at the picnic table approximately 10 seconds before the shooting and over the course of the next three seconds, he walked around the end of the table in a semi-circle, so that he was facing in the general direction of the oncoming patrol car but not yet moving toward it. Meanwhile, the patrol car continued to approach the gazebo.
Tamir began walking forward toward the passenger side of the approaching patrol. Meanwhile, Officer Garmback applied the brakes in an attempt to stop the patrol car, but due to the wet conditions on the ground the car did not stop where he intended and instead slid forward approximately 40 feet. As the patrol car came to a stop a short distance from Tamir, who by that point had stopped moving forward and was stationary, Officer Loehmann exited the still moving patrol car. At that moment, it appears that Tamir made movements of some sort with both his left and right arms. The positioning of the moving arms suggests that Tamir’s hands were in the vicinity of his waist, but his hands are not visible in the video. Officer Loehmann fired two shots within less than two seconds of opening the passenger door, striking Tamir once in the abdomen.
As soon as Officer Loehmann exited the patrol car, he fell to his right and to the ground, toward the rear of the patrol car, resulting in an ankle injury. When Officer Loehmann got to his feet, he quickly moved to the rear driver’s side of the patrol car for cover while continuing to aim his drawn weapon in Tamir’s direction. Meanwhile, Officer Garmback exited the patrol car and began moving to the front of the vehicle, where he stood for approximately 15 seconds with his gun drawn and pointing in Tamir’s direction. Enhanced video stills show a dark object (the toy gun) appear on the floor of the gazebo within a few feet of Tamir approximately 7 seconds after the shooting, just as Officer Garmback reached the front of the patrol car and just after Tamir’s upper body moved to the ground (and out of view of the surveillance camera). Officer Garmback stood at the front of the patrol car for approximately 15 seconds with his gun drawn and pointed in the direction of Tamir, then moved into the gazebo and kicked the toy gun and magazine further away from Tamir.
After Officer Garmback kicked the toy gun and magazine into the grass, he reported the shots fired and requested emergency medical assistance.
Video Evidence
The CPRC has a number of surveillance cameras, and the incident is captured on video. Unfortunately, as previously discussed, this video is a time lapse video, has no audio, is grainy, shot from a significant distance, does not show detail or perspective, and portions of the incident are not visible because the incident occurred on the passenger side of the patrol car, and the camera is shooting from the driver’s side of the patrol car; thus, the patrol car blocks the camera’s view of parts of the activity during the relevant time. Tamir’s hands are not visible in the video during the relevant time.
The video generally shows that the patrol car came to a stop a short distance from Tamir, and that Officer Loehmann exited the still moving patrol car. At that moment, Tamir made movements of some sort with both his left and right arms. The positioning of the moving arms suggests that Tamir’s hands were in the vicinity of his waist, but his hands are not visible in the video and it cannot be determined from the video what he was doing. Officer Loehmann fired two shots within seconds of opening the passenger door, striking Tamir once in the abdomen.
Officer Statements
In on-scene statements to three responding law enforcement officers, starting approximately one minute after the shooting, Officer Loehmann repeatedly and consistently stated that Tamir was reaching for his gun just before Officer Loehmann shot. Officers Loehmann and Garmback gave several additional statements to other responding officers in the minutes and hours after the shooting. In those statements, both officers repeatedly and consistently stated that Officer Loehmann gave Tamir multiple commands to show his hands before shooting, and both officers repeatedly and consistently said that they saw Tamir reaching for his gun. Both officers submitted written statements concerning the incident approximately a year later, and repeated these seminal points. Officers Loehmann and Garmback are the only two witnesses in the near vicinity of the shooting.
Civilian Witnesses
Only one civilian witness reported seeing any part of the fatal encounter; an additional witness said that she heard shots and heard commands after the shots. However, the eyewitness’s two statements are inconsistent; the earwitness reported hearing three shots; both witnesses were approximately 315 feet away; and neither of them stated that they saw Tamir’s movements immediately preceding the shooting
Expert Witnesses
- Video Expert
An expert forensic video analyst analyzed the video evidence, which consists of compressed time lapse footage. He identified numerous technical variables that can result in the misinterpretation of the images by an untrained observer of compressed video images. He noted that the time lapse footage consists of a series of stills, with approximately two stills captured per second. In analyzing the relevant video footage in this case, the expert found that, throughout the two camera recordings, the refresh rate in which the video captures a new still image varies from approximately one image per second to up to eight images per second.[1] He further stated that there is no foundation to establish the precise timing from image to image. As a result, the video in this system is referred to as a ‘variable refresh rate recording.”
Thus, even when the video was enhanced to the still frames, there are unknown time gaps of up to a full second between each frame. The video and the corresponding still frames are incapable of capturing the nuances of continuous action.
- Use of Force Experts
Seven experts reviewed this case and opined on whether Officer Loehmann’s use of force was objectively reasonable or unreasonable: four of whom were hired by the CCPO and agreed that the shooting was objectively reasonable; three of whom were retained by the Rice family and agreed that the shooting was objectively unreasonable. Because the experts relied heavily on the poor-quality video of the incident and reached different conclusions about what it showed, their conflicting opinions added little to the case, other than to solidify the conclusion that the video evidence is not dispositive and is insufficient to establish beyond a reasonable doubt what Tamir was doing in seconds before he was shot.
Analysis Regarding a Deprivation of Rights Under Color of Law
In order to establish a federal civil rights violation, the government would have to prove that Officer Loehmann’s actions were unreasonable under the circumstances, and that his actions were willful. As noted above, caselaw establishes that an officer is permitted to use deadly force where he reasonably believes that the suspect posed an imminent threat of serious physical harm, either to the officer or to others. Here, in light of the officers’ explanations that Officer Loehmann shot because it appeared to him that Tamir was reaching for his gun, the government would necessarily have to prove beyond a reasonable doubt that 1) Tamir was not reaching for his gun; and 2) that Officer Loehmann did not perceive that Tamir was reaching for his gun, despite his consistent statements to the contrary. The evidence is insufficient for the government to prove this.
To fully assess whether this shooting constituted an unreasonable use of force, career prosecutors closely examined, among other things, the evidence concerning the movement of Tamir’s arms and hands just prior to the shots. As mentioned, the video footage is of extremely poor quality and has gaps in time of up to one second. The footage does not establish that Tamir was drawing a weapon from his waistband; however, the footage also does not establish that Tamir was not reaching for a gun when Officers Loehmann and Garmback state that he was doing so.
The evidence in this case fails to definitively establish what happened at the time of the shooting. Both officers have consistently and repeatedly maintained that they saw Tamir reach for his gun. The toy gun was found on the ground near where Tamir fell, suggesting that it was on his person and that he handled it after standing up beside the picnic table. The video evidence is simply not definitive on Tamir’s movements at the relevant time. Multiple experts examined the grainy, non-continuous, indistinct video in which the patrol car blocks part of the view at the relevant time. Those experts differed in their opinion of what Tamir was “likely” doing with his arms and hands, but all agreed that his arms were moving and that his hands, though not visible, would have been in the general area of his waist. The experts’ opinions were of little assistance in assessing criminal guilt, because their analysis amounted to a 20/20 hindsight review of still frames from a non-continuous video that could not, and does not, capture all that happened in the relevant time period of approximately two seconds, but nevertheless portrays Tamir’s hands in the vicinity of his waist just prior to the shooting. Further, the civilian witnesses shed little light on Tamir’s actions just before he was shot.
Based on this evidence and the high burdens of the applicable federal laws, career prosecutors have concluded that there is insufficient evidence to prove beyond a reasonable doubt that Tamir did not reach for his toy gun; thus, there is insufficient evidence to establish that Officer Loehmann acted unreasonably under the circumstances.
As noted above, in analyzing a potential charge under 18 U.S.C. § 242, federal investigators must also consider whether the evidence proves the statutory element of willfulness — meaning, that, in shooting Tamir, Officer Loehmann knew what he was doing was wrong and chose to do it anyway. As noted above, an accident, a mistake, an officer’s misperception, or even an officer’s poor judgment or negligence does not constitute willful conduct that can be prosecuted under this statute.
Even if the government were to accept entirely the conclusions of the expert who opined that Tamir had his hands in his jacket pockets as he approached the patrol car, prosecutors would still be unable to disprove Officer Loehmann’s consistent statements regarding his own perceptions of Tamir’s movements. Within a minute of the shooting and with no opportunity to reflect, view video, or discuss the matter with others, Officer Loehmann said that he fired in self-defense and had no choice. He has given multiple additional statements, in which he has consistently maintained that he shot because he believed that Tamir was drawing a weapon; there is insufficient evidence to refute that central point.
Similarly, Officer Garmback has maintained since moments after the shooting that he heard Officer Loehmann give repeated commands to Tamir to show his hands, and that he saw Tamir reaching for a weapon in his waistband. Both officers sought cover from the patrol car, held Tamir at gunpoint for approximately 15 seconds, and generally responded to the incident in a manner consistent with their stated belief that Tamir was drawing a gun.
For many of the same reasons the evidence is insufficient to prove beyond a reasonable doubt that the shooting violated the Fourth Amendment, the evidence is also insufficient to establish beyond a reasonable doubt that the officers acted willfully. Even if federal prosecutors could definitively prove that Tamir did not in fact reach toward his waistband to draw his toy gun, the government could not establish that Officer Loehmann did not perceive that Tamir did so.
Analysis Regarding Obstruction of Justice
Career federal prosecutors also reviewed the evidence to determine whether there was sufficient evidence to prove that Officers Loehmann and/or Garmback obstructed justice in their statements to law enforcement officers. These career prosecutors concluded that it did not.
In order to prove obstruction, the government would have to prove the officers knowingly made false statements, and that they did so with the intent to obstruct a federal investigation. As previously noted, the officers each gave multiple statements to law enforcement officers on the day of the incident, starting within a minute or so of the incident, without time to reflect, discuss, or view video. They each provided a written statement approximately a year later. Some of their statements are more detailed than others, and with slightly different verbiage, but all of which were generally consistent, particularly on the seminal facts. As the experienced career prosecutors who reviewed this matter know, when witnesses give multiple statements, there are almost always inconsistencies due to the fallibility of the human memory.
Because there is insufficient evidence to establish that the statements by Officers Loehmann and Garmback are in fact untrue, there is also insufficient evidence to establish that they knew them to be untrue or that they made them with the intent to obstruct the investigation.
Conclusion
In sum, after extensive examination of the facts in this tragic event, career Justice Department prosecutors have concluded that the evidence is insufficient to prove beyond a reasonable doubt that Officer Loehmann willfully violated Tamir Rice’s constitutional rights, or that Officers Loehmann or Garmback obstructed justice. In this case, the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Civil Rights Division, and the FBI each devoted significant time and resources to examine the circumstances surrounding Tamir Rice’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
[1] For comparison, most modern video captures approximately 60 frames per second.
Iowa City Man Sentenced to Prison for Prohibited Person in Possession of a FirearmRead the Press Release
DAVENPORT, Iowa — On December 22, 2020, United States District Court Chief Judge John A. Jarvey sentenced Junior Emilio Roldan Marin, age 34, of Iowa City, to 66 months in prison for Prohibited Person in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Roldan Marin was ordered to serve three years of supervised release as well as pay $100 to the Crime Victims’ Fund.
On December 9, 2018, officers were dispatched to a residence in Iowa City regarding Roldan Marin threatening an individual who had turned around in his driveway. Officers located Roldan Marin, who admitted he had been in a confrontation with an individual at his residence and he did have a gun, though he denied threatening anyone. Officers executed a search warrant at Roldan Marin’s residence and located two red Winchester shotguns shells and a black MKA 1919 12-gauge magazine-fed shotgun. Roldan Marin was prohibited from possessing firearms and ammunition because he had a prior conviction for domestic abuse assault, was subject to an active no contact order, and was an unlawful user of a controlled substance.
This matter was investigated by the Department of Homeland Security, U.S. Immigrations and Customs Enforcement, and the Iowa City Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case was part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Iowa City Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa — On December 23, 2020, United States District Court Chief Judge John A. Jarvey sentenced Charls Peter Niphong, age 20, of Iowa City, to 64 months in prison for Prohibited Person in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Niphong was ordered to serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
The investigation of Niphong began in October 2019 when law enforcement officials were investigating a string of burglaries in and around Iowa City residences and parked vehicles. Niphong was identified as a suspect. Law enforcement learned that Niphong’s phone usage placed him in the area of the burglaries during the time frame where they occurred. Surveillance footage from local businesses further corroborated Niphong’s location, and showed Niphong using stolen credit cards to make purchases. A search warrant conducted on Niphong’s residence revealed a firearm that had been reported as stolen during one of the burglaries, along with items of stolen property taken during the burglaries. Officers also found two additional guns, including one stolen during one of the burglaries, while executing a search warrant at an additional residence. Niphong had sold those two guns to a person living at the residence. Niphong has an extensive criminal history in Iowa. As a result of being a felon, Niphong is prohibited from possessing firearms.
This matter was investigated by the Iowa City Police Department (ICPD). This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Iowa City Man Sentenced to Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, Iowa — On Tuesday, December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Darnell McConnell II, age 36, of Iowa City, to 100 months in prison for Felon in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, McConnell was ordered to serve three years of supervised release as well as pay $100 to the Crime Victims’ Fund.
On August 16, 2019, law enforcement executed search warrants on two Iowa City residences associated with McConnell. At a residence on Taylor Drive, officers recovered three firearms: a .45 caliber pistol, a .40 caliber rifle, and a 12-gauge shotgun. Additionally, hundreds of packages of THC-infused edibles and vape pens were found. At a residence on Davis Street, officers recovered two additional firearms: a .38 caliber revolver and a .223 caliber rifle. Law enforcement also recovered multiple firearm magazines capable of accepting 30 and 40 rounds of ammunition. A review of McConnell’s phone pursuant to a search warrant revealed videos of him at a shooting range in possession of numerous firearms—five of which appear identical to the firearms recovered from the two search warrants. McConnell has previously been convicted of firearms-related and drug distribution felonies offenses in Cook County, Illinois.
This matter was investigated by the Iowa City Police Department Street Crimes Action Team. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Iowa City Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
DAVENPORT, Iowa—On December 22, 2020, United States Chief District Court Judge John A. Jarvey sentenced Michael Alan White, age 49, of Iowa City, to 144 months of imprisonment for Receipt of Child Pornography announced United States Attorney Marc Krickbaum. Following his prison term, White was ordered to serve five years of supervised release, pay $10,000.00 in restitution to the two victims, and pay $100.00 to the Crime Victims’ Fund.
On March 13, 2020, White pleaded guilty to one count of receipt of child pornography. The investigation began in 2018 when law enforcement intelligence retrieved information from an Internet Protocol (IP) address that certain child pornography images were being downloaded. A returned subpoena from the internet provider listed Michael White as the registered user of the internet service from which the IP address originated. On March 7, 2019, a search warrant was conducted on White’s residence. Forensic examination of four electronic devices obtained in the search warrant revealed multiple depictions of child pornography. White had approximately fifty images and/or videos of child pornography on his devices. Many of the victims depicted in White’s images have been identified through the National Center for Missing and Exploited Children (NCMEC).
This matter was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Helena man appears on allegations of sexually exploiting children and receiving child pornographyRead the Press Release
MISSOULA – A Helena man appeared in court today on allegations of sexually exploiting children and receiving child pornography in Missoula and Lewis and Clark counties, Acting U.S. Attorney Leif Johnson said.
A criminal complaint unsealed today alleges Joshua Dean Fish, 27, committed the crimes of sexual exploitation of a child and receipt of child pornography. If convicted of the most serious crime, Fish faces 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Fish was detained pending further proceedings.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
According to the complaint and affidavit, an investigation began in January when the Lewis and Clark County Sheriff’s Office received a report of suspicious online activity regarding a minor teenage female victim. The investigation led to additional minor female victims. Victims reported that they were promised monetary payments in exchange for photographs of themselves in various stages of undress and nudity through SnapChat, a social media application. The victims reported that the suspect used PayPal to submit payments to the victims, used the fictitious name, Grant Holman, and liked to be called Mr. Fish or Mr. Fishy.
The investigation led to a search of Fish’s residence in Gilbert, AZ, on June 18. Law enforcement seized a cell phone, a laptop computer and numerous hard drives. After examining the electronics that were seized during the search of Fish’s residence, agents discovered hundreds of thousands of images and videos of child pornography, the complaint and affidavit allege. The complaint and affidavit further allege that Fish used, coerced and exploited the victims into producing sexually explicit images of themselves. Fish lived in Missoula and Helena until about June 2018, when he moved to Arizona.
The FBI, Homeland Security Investigations, Internet Crimes Against Children Task Force, Lewis and Clark County Sheriff’s Office and Gilbert (AZ) Police Department are investigating the case.
PACER case reference. 20-11.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Hardy County man appears on drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Kenneth Allan Evans, of Moorefield, West Virginia, was arrested today and appeared in federal court to face drug charges, U.S. Attorney Bill Powell announced.
Evans, 48, was indicted by a federal grand jury sitting in Elkins on December 15, 2020 on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Maintaining Drug-Involved Premises,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Distribution of Methamphetamine – Aiding and Abetting.”
Also charged with conspiracy to distribute methamphetamine and other related charges are:
• Kaleb Joseph Beals, 31, of Silver Creek, Georgia
• Jennifer Ann Howell, 41, of Moorefield, West Virginia
• Kelly Marie Talbert, 36, of Keyser, West Virginia
• Richard Allen Howell, 42, of Moorefield, West VirginiaAll defendants are accused of working together to distribute crystal methamphetamine or “ice” from August 2018 to April 2019 in Hardy County and elsewhere.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, the West Virginia State Police, the Grant County Sheriff’s Office, and the Moorefield Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hancock Man Sentenced for Possessing Fentanyl with Intent to DistributeRead the Press Release
BANGOR, Maine: A Hancock man was sentenced today in federal court in Bangor for possessing with the intent to distribute 40 grams or more of a substance containing fentanyl, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced William Smeal, 34, to 54 months in prison and four years of supervised release. Smeal pleaded guilty on January 21, 2020.
According to court records, on February 13, 2019, law enforcement officers encountered Smeal in Ellsworth, Maine. A bag containing over 100 grams of a substance containing fentanyl was seized from his car. Smeal admitted to purchasing drugs in Massachusetts that day. A search of Smeal’s home and an additional search of his car resulted in the seizure of more than 100 additional grams of a substance containing fentanyl.
The Maine Drug Enforcement Agency and the FBI investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
District Court Enters Permanent Injunction Shutting Down Technical-Support Fraud SchemeRead the Press Release
A federal court entered an order of permanent injunction against an individual and five companies in a case against a large-scale technical-support fraud scheme alleged to have defrauded hundreds of elderly and vulnerable U.S. victims, the Department of Justice announced today.
The order bars Michael Brian Cotter, 59, of Glendale, California, and four companies — Singapore registered Global Digital Concierge Pte. Ltd., formerly known as Tech Live Connect Pte. Ltd., Nevada registered companies Sensei Ventures Incorporated and NE Labs Inc., New York registered KeviSoft LLC — from selling technical-support services or software via telemarketing or websites.
“The department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard earned savings,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Civil Division. “The department is grateful for the cooperation of foreign law enforcement, including India’s Central Bureau of Investigation, in investigating, disrupting, and prosecuting technical-support fraud schemes and other schemes originating abroad and directed at the American public.”
“The Postal Inspection Service is committed to investigating all types of elder fraud,” said Damon Wood, Inspector in Charge of the Philadelphia Division of the U.S. Postal Inspection Service. “Fraudsters who scam the elderly and others online use fear and pressure tactics to prey on our most vulnerable Americans from the safety of a computer screen. The Inspection Service is proud of our domestic and international partners who extended the reach of our investigative efforts, shutting this scam down once and for all, and protecting American citizens.”
The complaint filed in October 2020 alleged that Cotter worked with co-conspirators in India from at least 2011 to 2020 to operate a technical-support fraud scheme. The scheme allegedly contacted U.S. consumers via internet pop-up messages that falsely appeared to be security alerts from Microsoft or another well-known company. The pop-up messages fraudulently claimed that the consumer’s computer was infected by a virus, purported to run a scan of the consumer’s computer, falsely confirmed the presence of a virus and malware, and then provided a toll-free number to call for assistance. When victims called the toll-free number, they were connected to India-based call centers participating in the fraud scheme. Call center workers asked victims to give them remote access to their computers and told victims that they detected viruses or other malware on their computers. Eventually, the call center workers would falsely diagnose non-existent problems and ask victims to pay hundreds of dollars for unnecessary services and software.
The complaint asserted that Cotter worked with co-conspirators in India to operate the scheme, including registering website domains, setting up shell companies, and entering into relationships with banks and payment processors to facilitate the collection of funds from victims of the scheme. Individual victims payed hundreds to thousands of dollars to the scheme for unwanted and unnecessary technical-support services.
Under the terms of the consent decree of permanent injunction entered today, the defendants agreed to be permanently barred from, among other things, offering for sale via telemarketing or website any technical-support service or software and advertising via computer pop-up messages. The consent decree also transfers ownership of 19 domain names alleged to have been used as part of the technical-support scheme to the United States, so that those domains can no longer be used as part of the fraud scheme.
The widespread fraud allegedly committed in this case was brought to the attention of the Transnational Elder Fraud Strike Force by Microsoft, which often is impersonated by those engaged in technical-support fraud schemes.
Acting Assistant Attorney General Clark thanked the Postal Inspection Service for its investigation of the case, and the FBI’s Economic Crimes Unit and Legal Attaché’s Office in Delhi, India, for their substantial coordination efforts. He also expressed appreciation to Microsoft for apprising the Strike Force of the alleged offenses. The U.S. case is being handled by Trial Attorney Ann Entwistle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle of the U.S. Attorney’s Office in the Southern District of Florida.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Davenport Man Sentenced to Prison for Child Pornography OffensesRead the Press Release
DAVENPORT, Iowa — On December 23, 2020, United States District Court Chief Judge John A. Jarvey sentenced John James Ramirez, age 45, of Davenport, to 60 months in prison for Possession of Child Pornography and Possession of Obscene Visual Representation of the Sexual Abuse of Children announced United States Attorney Marc Krickbaum. Following his prison term, Ramirez was ordered to serve five years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began in 2019 when the Davenport Police Department received a report that Ramirez had depictions of child pornography on his home computer. Law enforcement executed a search warrant on Ramirez’s Davenport residence and seized electronic and storage devices. A forensic examination revealed 107 images depicting child pornography of children, ranging in age from infants to teenagers, and 106 computer-generated images depicting child pornography of children. Ramirez knowingly received these visual depictions of child pornography through interstate commerce via the Internet.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.