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Friday 11 December 2020
Wilmington Woman Receives 14 Years in Federal Prison for Drug Distribution and Firearm OffenseRead the Press Release
WILMINGTON, N.C. – A Wilmington, NC woman was sentenced yesterday to a total of 168 months in prison for distribution of a quantity of a mixture and substance containing heroin, acetyl fentanyl and fentanyl, possession with the intent to distribute 100 grams or more of a mixture and substance containing heroin, acetyl fentanyl and fentanyl and felon in possession of a firearm.
According to court documents, Crystal Denise James, 30, was stopped by Wilmington Police Department officers on August 13, 2018 in a vehicle exceeding the posted speed limit. Officers searched James and found several bindles of heroin in her front pocket. James reached into her back pockets and removed more bindles of heroin. A total of 57 bags of a heroin and fentanyl mixture were seized.
From April 25, 2019 to June 6, 2019, the New Hanover County Sheriff’s Department used a confidential informant to make three controlled purchases of heroin and a mixture of heroin acetyl fentanyl and fentanyl from James. Following the June 6, 2019 controlled purchase, law enforcement searched James’ residence. During the course of the search, law enforcement found 5,639 bags of heroin (some of which contained acetyl fentanyl and fentanyl), $5,183, 86 grams of marijuana, a .22 caliber AR-15 style rifle and other manufacturing and packaging materials.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The New Hanover County Sheriff’s Office, Wilmington Police Department, Coastal Carolina Criminal Enterprise Task Force and Federal Bureau of Investigation (FBI) investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case. Mr. Averitt prosecutes matters in federal court as the result of funding provided by the New Hanover County Commission.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00153-D.
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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.
Westwego Man Sentenced for Conspiracy to Export Stolen Motor VehiclesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on December 9, 2020, MUSA FATTY, age 35, of Westwego, was sentenced by United States District Judge Lance M. Africk after previously pleading guilty to conspiracy to export stolen motor vehicles and criminal contempt.
Specifically, FATTY previously pled guilty to one count of conspiracy to export motor vehicles, in violation of 18 U.S.C. §§ 553(a)(1) and 371; and one count of criminal contempt, in violation of 18 U.S.C. § 401(3).
According to court records, FATTY and others conspired to export motor vehicles to The Gambia. In addition, while on bond in this case, FATTY failed to surrender his passport, as required, and traveled out of the United States without permission, in violation of the conditions of his bond.
In total, Judge Africk sentenced FATTY to time served, 3 years of supervised release, and a $200 special assessment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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Washington, D.C. Felon Pleads Guilty in Maryland to Federal Charges for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Ronald Clarence Kearney, age 32, of Washington, D.C., pleaded guilty on December 10, 2020, to a federal charge for being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Director Donald W. Washington of the U.S. Marshals Service.
According to his guilty plea, on November 27, 2019, deputies of the U.S. Marshals Service (USMS) went to Kearney’s residence in Washington, D.C. to arrest Kearney on an outstanding warrant. Kearney fled, getting into a 2011 Ford Crown Victoria parked in the parking lot at his residence, and drove away. USMS deputies followed Kearney with emergency equipment activated. Kearney drove onto the Suitland Parkway and crossed into Maryland, ultimately crashing the car into a concrete column supporting the Naylor Road Metrorail Bridge. Although the vehicle was stuck, Kearney continued to attempt to move the vehicle forward and backwards and nearly struck a USMS deputy who had left his vehicle after the crash. Fearing that Kearney would hit him the USMS deputy fired his service weapon, striking Kearney’s car.
Realizing that his efforts to dislodge the vehicle were unsuccessful, Kearney fled on foot and was apprehended by USMS deputies in a nearby creek bed. Kearney told the arresting law enforcement officers that he had a firearm in his car. USMS deputies searched the Crown Victoria and recovered a 9mm semi-automatic handgun. The Crown Victoria had been stolen in Prince George’s County three days earlier. Kearney had been convicted previously in the District of Columbia Superior Court of robbery with a deadly weapon and in Prince George’s County, Maryland Circuit Court of carjacking and robbery, all of which were felonies. Kearney knew that as a result of these felony convictions he was prohibited from possessing firearms or ammunition
Kearney faces a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 22, 2021 at 12:00 p.m.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the U.S. Marshals Service for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting this case.
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Utah resident indicted for operating fake charities that falsely claimed donations would benefit veteransRead the Press Release
ATLANTA - Travis Peterson has been indicted by a federal grand jury on mail and wire fraud charges for operating a fraudulent charity scheme. For years he allegedly used millions of robocalls to urge people to donate vehicles and other valuable items by falsely claiming their donations would go to veterans’ charities and were tax-deductible.
“Thousands were allegedly defrauded by Peterson's false claims that he wanted to help veterans,” said U.S. Attorney Byung J. “BJay” Pak. “Many veterans face significant financial challenges, and Peterson allegedly exploited the generosity and good intentions of those who donated to support those who served our nation.”
“While fraud is always wrong, Peterson’s exploitation of the public’s trust and charitable giving, providing false assurances that the donations were going to help veterans’ charities, is especially egregious,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The US Postal Inspection Service remains vigilant in keeping fraudsters from using the U.S. Mail to commit their offenses.”
“Peterson used millions of illegal robocalls to convince people to donate to his fake veterans’ charities and, in turn, hurt legitimate charities that do great work on behalf of our service-members,” said Anna Burns, Director of the Federal Trade Commission’s Southeast Region. “This announcement shows that putting a stop to illegal robocalls and protecting well-meaning Americans from fraudulent charities remains a top priority for cooperation between law enforcement agencies around the nation.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Between approximately April 2012 and July 2018, Peterson established and registered multiple corporate entities, including Vehicles for Veterans LLC, Medal of Honor, Act of Valor, Donate Real Estate LLC, Donate That Car LLC MI, Donate That Car LLC NV, Telefunding LLC, Tiny Towns R.E. LLC, Victims Relief LLC, Veterans of America, and Saving Our Soldiers in Nevada, Michigan and Utah. Each of these companies was purportedly a tax-exempt charitable organization that Peterson established to help veterans and their families. None of these companies, however, was an actual charity with tax exempt status. Peterson in fact never owned or operated a single charity that benefitted veterans.
Using millions of robocalls, as well as multiple websites and newspaper advertisements, Peterson allegedly defrauded thousands of people around the country into believing they were donating vehicles and other property to benefit veterans. Peterson and those working at his direction falsely informed would-be donors that their donations would be used to benefit veterans and were tax deductible. Peterson himself did not pick up and sell the donated vehicles. Rather, he contracted with third-party auto auction companies to handle the logistics of acquiring and selling the donated vehicles. After the vehicles were sold, the auction companies would remit any proceeds to bank accounts controlled by Peterson. None of these funds went to the benefit of veterans. Peterson instead allegedly used them for own personal expenses, including to pay for online dating services and to purchase an all-terrain vehicle. As a result, Peterson defrauded donors of more than $500,000.
The FTC had previously filed a complaint against Peterson in the U.S. District Court for the District of Utah arising from this same fraudulent scheme. On April 1, 2019, the court entered a stipulated order and judgment which permanently banned Peterson from soliciting charitable contributions and from using robocalls, as well as prohibiting him from making misrepresentations that a charitable contribution is tax-deductible. The order also imposed a $541,032.10 monetary judgment against Peterson and required that he forfeit 88 vehicles. The FTC’s investigation of Peterson is part of a broader initiative by the agency to combat illegal robocalls. More information about several of the FTC’s recent enforcement actions, including Peterson’s, is available online: https://www.ftc.gov/news-events/press-releases/2019/03/ftc-crackdown-stops-operations-responsible-billions-illegal.
Travis Peterson, 53, of St. George, Utah, was indicted on December 9, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Postal Inspection Service. The Cleveland and Atlanta Regional Offices of the Federal Trade Commission provided invaluable contributions in this case.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case, which was begun by former Special Assistant U.S. Attorney Valerie Verduce.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
USNCB Alerts U.S. Partners to Potential COVID FraudRead the Press Release
Image Courtesy INTERPOL.INTERPOL Washington, the U.S. National Central Bureau (USNCB), is working closely with the International Criminal Police Organization (INTERPOL) to ensure that our U.S. law enforcement partners receive critical COVID-19 pandemic-related alerts in a timely manner. Recently, INTERPOL issued a world-wide alert warning of criminal activity associated with the pandemic. Distributed as an “Orange Notice” to law enforcement agencies in its 194 member countries, this alert identifies new criminal activity related to falsifying, stealing, and illegally advertising COVID-19 and seasonal flu vaccines. INTERPOL issues Orange Notices to warn of an event, a person, an object or a process representing a serious and imminent threat to public safety.
The USNCB ensures that our state and local law enforcement partners have access to the most current alerts and warnings from INTERPOL that could impact U.S. citizens. The USNCB’s active and continuous dissemination of information on threats identified by other INTERPOL member countries to these and other relevant U.S. Government agencies such as the Department of Health and Human Services, reinforces the value, reach, and efficiency of the USNCB’s outreach framework across all jurisdictional levels.
“The potential for counterfeit vaccines as well as fraudulent and unsafe personal protective equipment (PPE) to be distributed within the United States poses significant risks to first responders, law enforcement officers, vulnerable populations, and the general public. The USNCB has a longstanding commitment to providing state, local, federal and tribal authorities with direct access to INTERPOL data related to emerging threats to public safety. That commitment has been reaffirmed and strengthened during the worldwide pandemic,” said USNCB Director Uttam Dhillon.
The USNCB is also emphasizing INTERPOL’s advice to the general public to be cautious when seeking to purchase medical equipment or medicines, especially when those products are pandemic-related. “Criminal networks will also be targeting unsuspecting members of the public via fake websites and false cures, which could pose a significant risk to their health, even their lives,” warned INTERPOL General Secretary Jürgen Stock in an INTERPOL news release.
A component of the U.S. Department of Justice, the USNCB is the designated United States representative to INTERPOL on behalf of the Attorney General. It serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
U.S. Attorneys, DEA Launch Website to Combat Stigma of Substance Use DisorderRead the Press Release
ALEXANDRIA, Va. – Federal law enforcement leaders in the Commonwealth of Virginia today announced the launch of www.storiesoverstigma.com to fight back against the silent health epidemic of substance use disorder.
“Our hope is that through this website we will empower Virginians to share their buried stories of substance use disorder,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Unfortunately, the stigma that historically accompanies this disease often silences family and friends of the deceased. Those who succumb to substance use disorder are our loved ones: our parents, our sons and daughters, sisters and brothers, and friends. They deserve to have their stories told, free from shame and without stigma.”
Virginia’s Office of the Chief Medical Examiner reports that fatal drug overdose has been the leading method of unnatural death in Virginia since 2013.
“We must work together to do all we can to stem the flow of opioids in our communities and the addiction and death they can cause,” said Daniel P. Bubar, Acting U.S. Attorney for the Western District of Virginia. “This website is a major step toward encouraging individuals across Virginia to join together and tell their stories as we seek to remove the stigma of substance use disorder. I thank our colleagues in the Eastern District for inviting our participation in making sure these important stories are told.”
The website will allow those who have a family member whose life has been tragically cut short by substance use disorder, to share their story through the power of social media. Five families who lost their loved ones to substance use disorders have provided details about what happened in the hopes of turning those tragedies into life-saving conversations and lessons for others. The platform, in turn, allows others across Virginia to add to the story and let others know they are not alone in this ongoing fight to save lives.
The U.S. Attorney’s Offices in the Eastern and Western Districts of Virginia, together with the DEA and other law enforcement partners, is continuing to work with countless families and advocates to raise awareness and change the false narrative that substance use disorder is a choice. Through this joint effort, the federal partners and others behind this effort are hoping to change the conversation.
Towards that goal, #StoriesOverStigma is a social activation that allows people in recovery and family members who have lost a loved one to share their stories and change the conversation. The website is aimed at educating others about the dangers of substance use disorders, to start lifesaving conversations with our youths and loved ones, and emphasizes that there is hope for those who need help.
Visit www.storiesoverstigma.com to join the conversation and submit your story.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorneys, DEA Launch Website to Combat Stigma of Substance Use DisorderRead the Press Release
ALEXANDRIA, Va. – Federal law enforcement leaders in the Commonwealth of Virginia today announced the launch of www.storiesoverstigma.com to fight back against the silent health epidemic of substance use disorder.
“Our hope is that through this website we will empower Virginians to share their buried stories of substance use disorder,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Unfortunately, the stigma that historically accompanies this disease often silences family and friends of the deceased. Those who succumb to substance use disorder are our loved ones: our parents, our sons and daughters, sisters and brothers, and friends. They deserve to have their stories told, free from shame and without stigma.”
Virginia’s Office of the Chief Medical Examiner reports that fatal drug overdose has been the leading method of unnatural death in Virginia since 2013.
“We must work together to do all we can to stem the flow of opioids in our communities and the addiction and death they can cause,” said Daniel P. Bubar, Acting U.S. Attorney for the Western District of Virginia. “This website is a major step toward encouraging individuals across Virginia to join together and tell their stories as we seek to remove the stigma of substance use disorder. I thank our colleagues in the Eastern District for inviting our participation in making sure these important stories are told.”
The website will allow those who have a family member whose life has been tragically cut short by substance use disorder, to share their story through the power of social media. Five families who lost their loved ones to substance use disorders have provided details about what happened in the hopes of turning those tragedies into life-saving conversations and lessons for others. The platform, in turn, allows others across Virginia to add to the story and let others know they are not alone in this ongoing fight to save lives.
The U.S. Attorney’s Offices in the Eastern and Western Districts of Virginia, together with the DEA and other law enforcement partners, is continuing to work with countless families and advocates to raise awareness and change the false narrative that substance use disorder is a choice. Through this joint effort, the federal partners and others behind this effort are hoping to change the conversation.
Towards that goal, #StoriesOverStigma is a social activation that allows people in recovery and family members who have lost a loved one to share their stories and change the conversation. The website is aimed at educating others about the dangers of substance use disorders, to start lifesaving conversations with our youths and loved ones, and emphasizes that there is hope for those who need help.
Visit www.storiesoverstigma.com to join the conversation and submit your story.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Wrigley Announces Charges for New York and Georgia Men for their Role in a $185,000 Scam of a North Dakota AttorneyRead the Press Release
FARGO - U.S. Attorney Drew H. Wrigley announced the unsealing of a complaint charging Inshan Baksh, age 32 from Queens, New York, and Sang Bae Chung age 36 from Lawrenceville, Georgia, with wire fraud, mail fraud, and aiding and abetting wire and mail fraud for their role in illegally receiving and laundering funds as part of a scam, which targeted a North Dakota attorney. Specifically, scammers targeted this attorney and, by using an email spoof scam, tricked the attorney into wiring a total amount of $185,000 to three separate individuals or entities: Scott Anderson, Dorese Coles, and Krystal Fashion Corporation. None of the individuals or entities were entitled to receive these funds.
As stated in court records, Inshan Baksh, d/b/a Kristal Fashion Corporation, illegally received a $60,000 wire transfer from the attorney and, immediately thereafter, laundered the money by sending a cashier’s check in the amount of $31,850 to Sang Bae Chung, d/b/a De Nice Ware, Inc. The $31,850 cashier’s check was deposited in Chung’s De Nice Ware bank account and immediately thereafter, Chung attempted to wire $31,600 to another individual; however, the bank successfully recalled the wire transfer.
On June 3, 2020, a federal grand jury returned an indictment against Scott Anderson, 57 years old, Seattle, Washington, and Dorese Coles, 30 years old, Newport News, Virginia, on charges of wire fraud, mail fraud, and money laundering for their roles in illegally receiving $65,000 and $60,000 wire transfers respectfully from the attorney and then taking steps to launder the received funds.
Chung’s preliminary and detention hearing on the complaint occurred on December 1, 2020 in the United States District Court for the Northern District of Georgia. Baksh’s initial appearance on the complaint occurred on December 2, 2020 in the United States District Court for the Eastern District of New York. All future hearings for Chung and Baksh’s will be scheduled in the United States District Court for the District of North Dakota.
"Because of their professional role in our communities, attorneys are susceptible to being the targets of fraud schemes," said US Attorney Drew Wrigley. The State Bar of North Dakota recently alerted members that financial scammers have been targeting North Dakota attorneys. "We join the State Bar in cautioning attorneys to be mindful of financial scams, and will aggressively pursue individuals who commit these targeted crimes."
A complaint and an indictment are an accusation and notice of charges. The defendants are presumed innocent under the law.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Jonathan J. O’Konek assigned to the case.
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Two Georgia Correctional Officers Indicted for Civil Rights and Related Offenses for Assaulting InmatesRead the Press Release
Yesterday, a federal grand jury in Macon, Georgia, returned a 4-count indictment against former supervisory correctional officer Sergeant Patrick Sharpe, 29, and former correctional officer Jamal Scott, 33, of the Valdosta State Prison (VSP) for their roles in using excessive force against inmates incarcerated at the facility.
The indictment charges Sharpe and Scott with conspiring to assault, and aiding and abetting one another in the assault of, inmate F.G., in violation of 18 U.S.C. § 241 (conspiracy against rights) and 18 U.S.C. § 242 (deprivation of rights under color of law). Specifically, the indictment charges that on Dec. 29, 2018, Sharpe instructed Scott and another correctional officer named Brian Ford to assault inmate F.G., despite the fact that F.G. was handcuffed and compliant. In response, Scott and Ford struck F.G. multiple times in the body, resulting in bodily injury to F.G. Brian Ford previously pleaded guilty on Nov. 9, 2020, to depriving F.G. of his civil rights.
The indictment also charges that on Sept. 24, 2018, Sharpe assaulted inmate M.B. by striking M.B. in the face and head with handcuffs wrapped around his fist, in violation of 18 U.S.C. § 242, and then making false statements to Special Agents with the FBI about his conduct, in violation of 18. U.S.C. § 1001.
The maximum penalty for the deprivation-of-rights and conspiracy offenses is 10 years of imprisonment, and the maximum penalty for the false statements offense is five years of imprisonment.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The FBI conducted the investigation. Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Department of Justice’s Civil Rights Division, are prosecuting the case, with assistance from Criminal Chief Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia.
Tulsa Man Sentenced for Possession and Distribution of Child PornographyRead the Press Release
A Tulsa man was sentence today for Distribution and Receipt of Child Pornography and Possession of Child Pornography, announced U.S. Attorney Trent Shores.
Kevin Edward Swarthout, 48, was sentenced to 180 months in federal prison and 25 years of supervised release today in front of U.S. District Court Judge Gregory K. Frizzell. In addition, at least 5 victims who were abused during the creation of the pornography he downloaded and distributed will receive mandatory restitution as required by the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
Swarthout has both state and federal convictions for child pornography. Additionally, he has extensive state probation violations for further sexual misconduct and placing himself in proximity to children. Swarthout, a member of the Cherokee Nation, recently had state child pornography charges dismissed at the Tulsa County District Court due to the recent Supreme Court decision on McGirt v. Oklahoma.
“Multi-convicted child porn offender Kevin Swarthout is headed exactly where he belongs, behind bars. Our system of laws seeks to protect our children from men like Swarthout who are seemingly addicted to child pornography,” said U.S. Attorney Trent Shores. “This is a supply and demand problem. We must attack both so as to weed out these child-preying criminals. I am thankful for the thorough work of our law enforcement partners, and I applaud Judge Frizzell for handing down this stern sentence.”
Swarthout admitted that between December 25, 2019 and May 12, 2020, in the Northern District of Oklahoma and elsewhere, after he had previously been convicted of Possession of Child Pornography, he knowingly received more than 100 videos and distributed at least 21 videos depicting the sexual abuse of children. He further admitted to possessing and accessing with intent to view visual depictions of minors engaging in sexually explicit conduct in multiple graphic image and video files. At least one of the files depicted a minor that had not attained 12 years of age engaging in sexually explicit conduct.
The Tulsa Police Department Cyber Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
Troy Felon Sentenced to 51 Months for Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Joshua Vega, age 28, of Troy, New York, was sentenced yesterday to 51 months in prison for possessing a firearm and ammunition as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Thomas F. Relford of the Albany Field Office of the Federal Bureau of Investigations (FBI).
Vega, who has a 2014 felony conviction for criminal sale of a controlled substance (heroin), previously admitted that on April 14, 2018, he possessed a loaded firearm located in his apartment in Troy.
Senior United States District Judge Norman A. Mordue also sentenced Vega to a 3-year term of supervised release, to begin following his term of imprisonment.
This case was investigated by the FBI Capital District Safe Streets Gang Task Force and the Troy Police Department, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download.
Tipton Man Sentenced to Prison for Handling Loaded Firearm While at WorkRead the Press Release
A convicted felon who loaded and handled a gun while he was working overnight at a business was sentenced December 10, 2020, to more than two years in federal prison.
Michael Joe Meyer, age 29, from Tipton, Iowa, received the prison term after a July 27, 2020 guilty plea to felon in possession of a firearm.
Meyer was observed on a surveillance camera while he was working overnight. He was seen loading and pointing a firearm towards the door for several minutes. Meyer was prohibited from possessing a gun because of previous felony convictions for eluding and burglary.
Meyer was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Meyer was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian. For more information about Project Guardian, please see /media/1122011/dl?inline.
Meyer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Tipton Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00040.
Follow us on Twitter @USAO_NDIA.
Three Arrested with Conspiracy to Commit Bank FraudRead the Press Release
BIRMINGHAM, Ala. – On Wednesday, December 9th, federal agents arrested three individuals for using stolen personal identifying information to open fraudulent online bank accounts and loans, announced U.S. Attorney Prim Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
A 26-count indictment filed in U.S. District Court charges Kristen Miyamoto, 39, La Verne, California, Shawn Adame, 46, La Verne, California, and Veronica James, 41, Pomona, California, with conspiracy to commit bank fraud and aggravated identity theft. Miyamoto was also charged with unlawful production of identification documents or authentication features.
According to the indictment, from March 2017 through October 2020, Miyamoto, Adame, and James stole personal identifying information of individuals in various locations within the United States. Miyamoto, Adame, and James used the stolen personal identifying information to open fraudulent bank accounts and create numerous email accounts with various providers, often using account names that would match the stolen identities. These email accounts were used for online banking and submitting online loan applications. As part of the scheme, Miyamoto created false California driver’s licenses to facilitate opening bank accounts under the stolen identities for herself and her co-conspirators.
Miyamoto, Adame, and James face a mandatory minimum of two years and up to 30 years in prison. Their actions affected numerous individuals, including residents of the Northern District of Alabama, as well as significant banking activity important to the economy of the district.
FBI investigated the case. Assistant U.S. Attorney Kristen S. Osborne is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Texas Syndicate Prison Gang Member Who Headed Methamphetamine Trafficking Conspiracy Sentenced to 30 YearsRead the Press Release
SHERMAN, Texas – A 48-year-old Zapata, Texas man has been sentenced to 30 years in federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jose Ernesto-Medrano pleaded guilty on Sep. 10, 2019, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 360 months in federal prison by U.S. District Judge Amos Mazzant on Dec. 9, 2020.
According to information presented in court, beginning in 2017, law enforcement officers received information that Medrano, a multi-convicted felon and member of the Texas Syndicate prison gang, was conducting drug trafficking transactions in the Plano, Texas area. Law enforcement ultimately determined that Medrano was a leader in a large-scale drug trafficking conspiracy, which distributed methamphetamine throughout the Austin and Plano areas. Medrano agreed he was responsible for distributing 4.5 kilograms of pure methamphetamine.
Medrano and four co-defendants were indicted on Jan. 9, 2019. Erik Brown was sentenced to 360 months in federal prison on Feb. 25, 2020. Martin Ysassi and Priscilla Zamora were each sentenced to 180 months on March 3, 2020. Sanjuanita Benavides is awaiting sentencing.
This is a Texas Anti-Gang (TAG) Center investigation involving the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Tracey Batson.
Tampa Man Sentenced to 28 Years After Committing Five Armed RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Eric Lee Robinson, Jr. (29, Tampa) to 28 years in federal prison for conducting a string of armed robberies of convenience stores and a restaurant over a three-week period in Tampa. On March 7, 2019, Robinson had pleaded guilty to four counts of brandishing a firearm during and in relation to a crime of violence.
According to court documents and information presented during the sentencing hearing, Robinson robbed a Circle-K store on May 23, 2018; attempted to rob a Hungry Howie’s pizza store on June 4, 2018; robbed a 7-Eleven convenience store and a Sunoco gas station on June 4, 2018; robbed a Sunoco gas station on June 5, 2018; and robbed a 7-Eleven convenience store on June 15, 2018. During each of the robberies, Robinson burst into the business wearing a ski mask, gloves, and head-to-toe black clothing. He also brandished a gun, threatened to hurt or kill the store employees, and demanded that the employees give him the money from the safes and cash registers. Across the five armed robberies, Robinson stole a total of $881 and multiple batches of lottery tickets. He was arrested a few hours after the June 15, 2018, robbery of the 7-Eleven convenience store.
During each of the robberies, Robinson was joined inside the business by a co-conspirator, and was often aided by a waiting getaway driver. One of Robinson’s alleged co-conspirators, Ishmell Upshaw, has been charged and is set for trial in January 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Hillsborough County Sheriff’s Office and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Statement by Attorney General William P. Barr on Senate ResolutionRead the Press Release
Online child sexual exploitation is a global crime that demands a continued global response. And yet an expansion of the “ePrivacy Directive” slated to take effect in the European Union this month may prohibit tech companies from using some of the most powerful tools available to detect child sexual abuse material and grooming by predators, making it easier for children to be exploited without detection. We commend Senators Cotton, Loeffler, and Boozman for introducing a resolution that encourages the EU to preserve companies’ ability to detect and prevent child exploitation, consistent with the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse.
Statement by Attorney General William P. Barr on Mexico's Proposed LegislationRead the Press Release
Attorney General William P. Barr gave the following statement in response to Mexico's proposed legislation.
"The Department of Justice is committed to working with the Government of Mexico to fight the transnational criminals who threaten both our nations. As always, our cooperation takes place within the longstanding framework designed to address jointly our shared challenges: that is why, for example, the United States recently returned former Secretary Cienfuegos to Mexico, in order to allow him to be investigated there. Thus, we are troubled by legislation currently before the Mexican Congress, which would have the effect of making cooperation between our countries more difficult. This would make the citizens of Mexico and the United States less safe. The passage of this legislation can only benefit the violent transnational criminal organizations and other criminals that we are jointly fighting."
State Court Victim Advocate Charged with Distributing Child Sexual Abuse MaterialRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ROBERT ECCLESTON, 56, of Canton, was arrested today on a federal criminal complaint charging him with distribution of child pornography.
As alleged in court documents, covert FBI personnel in two different field offices outside of Connecticut have been monitoring various public groups on the social medial application Kik. In August and September 2020, Eccleston, using the Kik username “hartfordctguy,” distributed numerous pornographic images and videos of children in these Kik groups, including images and videos depicting the sexual abuse of toddlers and prepubescent children.
Eccleston is employed as a Victim Services Advocate for the Hartford Superior Court in Hartford.
If convicted of the charge of distribution of child pornography, Eccleston faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint 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.
Following his arrest, Eccleston appeared via videoconference before U.S. Magistrate Judge Robert A. Richardson. He is detained pending a detention hearing that is scheduled for December 14 at 3 p.m.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Avon Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Serial Fraudster, Who Was a Fugitive for More Than 14 Years, Sentenced to More Than 12 Years in Federal Prison in Maryland for Bank Fraud and ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Adetubokun Adesioye age 45, formerly of Bladensburg, Maryland, to 153 months in federal prison, followed by five years of supervised release, for bank fraud and bank fraud conspiracy. Adesioye pleaded guilty to those federal charges in Maryland, which were part of two separate cases, on March 31, 2001, then fled the United States to Nigeria prior to sentencing. Adesioye was a fugitive for 14 years before being arrested in 2019, as he arrived at JFK Airport in New York, New York.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from approximately March to June 2000, Adesioye conspired with four bank tellers to defraud financial institutions. Specifically, co-conspirator Dawn Hall provided information to Adesioye about various bank accounts, then arranged for other tellers to issue fraudulent bank checks from accounts of unsuspecting victims and give the checks to Adesioye and his accomplices. Co-conspirators then forged signature on and deposited the fraudulent checks at financial institutions. After depositing the checks, co-conspirators withdrew, and attempted to withdraw funds from the accounts. The total face value of the fraudulent checks was $194,209.67. Adesioye provided payment to Hall for her participation in the scheme and Hall passed on payments to the other teller co-conspirators. Upon learning that one of the tellers had been arrested, Adesioye advised the teller to tear up the fraudulent checks and to tell law enforcement she did not know the person who asked her to get the checks.
As further detailed in his plea agreement, in a separate bank fraud in approximately October 1999, Adesioye also personally obtained counterfeit checks drawn on financial institutions with forged signatures, then arranged for the checks to be deposited into the bank accounts of others who agreed to allow Adesioye to use their bank accounts. After the counterfeit checks were deposited, Adesioye arranged to withdraw the funds. The total face value of these checks was $170,250.
Adesioye committed both the bank fraud and bank fraud conspiracy offenses while on supervised release for earlier convictions for bank fraud and assault on a federal officer in the U.S. District Court for the District of Columbia.
Adesioye admitted that he fled to Nigeria prior to sentencing, where he remained a fugitive for more than 14 years. On October 23, 2019, Adesioye was arrested at JFK Airport and stated to officers that he was aware of his outstanding arrest warrant. Adesioye has been detained since his arrest in October 2019.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer L. Wine, who prosecuted the case.
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Serial Fraudster Sentenced for Counterfeit Check SchemeRead the Press Release
NEWPORT NEWS, Va. – A transient man who formerly resided in various hotels across Virginia was sentenced today to 57 months in prison for defrauding a financial institution and possessing counterfeit business checks.
According to court documents, Michael Culpeper, 44, defrauded financial institutions and other businesses by creating and using counterfeit checks to obtain U.S. currency and buy goods and services. Culpeper has an extensive criminal history, encompassing numerous prior felony convictions, most of which involve similar conduct.
In January 2015, Culpeper rented a hotel room owned and operated by a Roanoke business. At the end of the rental period, the hotel refunded his security deposit with a check drawn on its business account. Culpeper subsequently used the names, addresses, and bank information from this refund check to create counterfeit and fraudulent checks. Between November 2015 and January 2017, Culpeper negotiated these counterfeit checks at least 16 times. At the time of his arrest, he had 141 more counterfeit checks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Howard J. Zlotnick and D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-44.
Seminole Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Timothy Don Reed, age 40, of Seminole, Oklahoma entered a guilty plea to Possession Of Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2), punishable by not more than 10 years of imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about April 28, 2020, within the Eastern District of Oklahoma, the defendant, knowingly possessed a stolen firearm which had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearm was stolen.
The charges arose from an investigation by the Holdenville Police Department, the Hughes County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Michael Cooper represented the United States.
Second Man Charged with St. Thomas Gems & Gold Corner Jewelry Store RobberyRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that Tashawn T.A. Warner was arrested today for his involvement in the September 19, 2020 Gems & Gold Corner store robbery. He made his first appearance before U.S. Magistrate Judge Ruth Miller this afternoon. A detention hearing is scheduled for December 15, 2020.
According to the affidavit filed in the case, two masked men exited a vehicle and entered the store carrying guns. One of the men used a pistol to assault a store employee by striking the employee in the head. The other man brandished the rifle type firearm. Both men took jewelry from the store and got back into the vehicle which was driven by a third man. The complaint alleges Warner was the man brandishing the rifle in the store. Jamari Benjamin was previously arrested in connection with this offense; the third man remains at large.
This case is being investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department and prosecuted by United States Attorney’s Office of the Virgin Islands.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Rochester Man Sentenced to 87 Months for Role in Schenectady County Gun Store BurglaryRead the Press Release
ALBANY, NEW YORK – Juan Saez, age 38, of Rochester, New York, was sentenced to serve 87 months in prison for receiving, possessing and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge Norman A. Mordue also sentenced Saez to a 3-year term of supervised release and ordered that he pay restitution of $48,775.47.
Saez, already a felon for a 2014 drug offense, pled guilty on May 7, 2018. As part of his plea, Saez admitted that on October 24, 2017, he traveled from Rochester to Amsterdam, New York, to meet Christian Roman and Jose Fontanez, who were on the run from law enforcement and hiding out with Omar DeJesus after stealing more than 60 firearms from Target Sports. Saez agreed to help, and did help, Roman and Fontanez travel to Rochester, along with most of the stolen firearms. After arriving in Rochester, Saez helped Roman and Fontanez avoid law enforcement and hide or sell the stolen firearms.
Christian Roman, age 25, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He was sentenced to 150 months in prison.
Jose Fontanez, age 38, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He was sentenced to 135 months in prison.
Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their respective roles in stealing, transporting, and possessing the firearms. Both men were sentenced to 120 months in prison.
Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports. She was sentenced to 57 months in prison.
This case was investigated by the ATF, New York State Police, and the Glenville Police Department, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Providence Man Detained on Drug, Firearm ChargesRead the Press Release
PROVIDENCE – A Providence man federal agents watched allegedly take possession of a package sent via the United States Postal Service (USPS) that contained nearly 1,400 grams of cocaine shipped from Puerto Rico, and, a short time later, who was found to allegedly have a firearm, ammunition, and drug trafficking paraphernalia in his residence, has been ordered detained in federal custody.
Modesto Batista, 30, was arrested Wednesday, shortly after a U.S. Postal Inspection agent made a controlled delivery of the package to the front porch of a Providence residence that, according to court documents, Batista, who had been sitting in a vehicle parked nearby, quickly removed and transported to his Providence residence. Batista’s alleged actions were surveilled by Homeland Security Investigations (HSI), U.S. Postal Inspection Service agents and detectives assigned to the Rhode Island High Intensity Drug Trafficking Area Task Force (HIDTA).
Moments after Batista went inside his residence, agents knocked on the door and announced their presence, after which they forcibly entered the residence. According to court documents, Batista was found standing at the foot of the stairs leading to the upstairs portion of the house. The package containing the cocaine shipped from Puerto Rico was allegedly found at Batista’s feet.
From inside Batista’s bedroom agents allegedly seized, among other items, a 9mm semiautomatic handgun and a magazine for the firearm loaded with fourteen rounds of live ammunition. Various items used in the delivery of cocaine were also found inside the residence.
The investigation began in October, when HSI agents in Rhode Island were contacted by Customs and Border Protection agents in Puerto Rico regarding a USPS package containing 769 grams of cocaine shipped from the U.S. Virgin Islands earmarked for delivery to a Providence address.
On Thursday, Batista was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan on a criminal complaint charging him with possession of more than 500 grams of cocaine with the intent to distribute, conspiracy to possess more than 500 grams of cocaine with the intent to distribute, and possession of a firearm in furtherance of drug trafficking, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge David Magdycz, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division and Colonel James Manni, Superintendent of the Rhode Island State Police.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Passenger of Vessel Pleads Guilty to Smuggling $287,660 into St. Thomas Following High-Speed Chase and Apprehension Near Savana IslandRead the Press Release
St. Thomas, USVI – Jose Carlos Diaz Melendez, resident of Puerto Rico, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of concealing $287,660.00 in U.S. currency while onboard a vessel outfitted for smuggling in violation of Title 46, United States Code, Section 70503(a)(3), U.S. Attorney Gretchen C.F. Shappert announced.
According to court documents, on September 30, 2019, at approximately 2:00 A.M., Customs and Border Protection (CBP) Marine Unit agents identified a boat traveling without navigational lights north of Savana Island. CBP agents pulled their vessel alongside the 24-foot yola-type vessel that was operating without lights. CBP agents activated their police blue lights and discharged a flare, in an effort to convince the other vessel to yield. When CBP agents attempted to initiate a stop, the other vessel did not yield but instead increased speed. The CBP agents shot one round into one of the engines of the other vessel at which point the vessel decreased speed and stopped. The passenger threw a duffel bag overboard. The bag was recovered by CBP agents and later found to contain $287,660.00 in U.S. currency and a Glock firearm. After CBP agents disabled one of the boat’s motor, they boarded the vessel, and apprehended the captain, who was later identified as Arioc Diaz Melendez, and the passenger, later identified as Jose Carlos Diaz Melendez, of the vessel. After pleading guilty, Jose Carlos Diaz Melendez was remanded to the custody of the Bureau of Prisons. He will be sentenced on a later date. The captain of the vessel, Arioc Diaz Melendez, pled guilty on November 30, 2020 and is awaiting sentencing.
This case was investigated by the Homeland Security Investigations (HSI) and Customs and Border Protection (CBP). It is being prosecuted by Assistant United States Attorney Juan Albino.
Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeRead the Press Release
KNOXVILLE, Tenn. – On December 9 and 10, 2020, defendants Cynthia Clemons, Courtney Newman, and Holli Carmichael Womack, all of whom are nurse practitioners, were sentenced for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee. Clemons was sentenced to 42 months in prison, Newman was sentenced to 40 months in prison, and Womack received a sentence of 30 months in prison.
U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, and Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office made the announcement.
Clemons and Newman, both of Knoxville, Tennessee, and Womack, of Crossville, Tennessee, were sentenced by United States District Judge Thomas A. Varlan. All three defendants were found guilty by a jury on February 13, 2020, of using drug-involved premises for the purposes of distributing opioid narcotics.
The evidence at trial proved that, collectively, Clemons, Newman, and Womack prescribed millions of tablets of oxycodone, oxymorphone, and morphine from the pill mills. All told, the pill mills where these defendants worked generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. The proof at trial established that the vast majority of the patients at these pill mills were addicted to opioids.
“Our office is determined to seek prison sentences for medical providers who think their licenses will protect them from prosecution,” said United States Attorney J. Douglas Overbey. “The sentences imposed by Judge Varlan should demonstrate that there will be severe consequences for illegally dispensing addictive narcotics.”
“Opioid abuse destroys lives and it devastates families. The FBI takes our responsibility to investigate those who exploit their medical license at the expense of those suffering from addiction very seriously. We, along with our federal, state, and local partners, will remain vigilant to assure that unscrupulous individuals are brought to justice,” said FBI Special Agent in Charge Joseph Carrico.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Office of International Affairs, U.S. Department of Justice, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
The investigation that led to this prosecution, as described above, fall under the auspices of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Tracy L. Stone, Eastern District of Tennessee, and Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot, both of the Organized Crime and Gang Section, U.S. Department of Justice, represented the United States in the prosecution of this case.
Owner of St. Cloud Press Bar Charged with Arson, Insurance Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging ANDREW CHARLES WELSH, 41, with intentionally setting fire to his business and submitting a fraudulent insurance claim. WELSH, who was arrested earlier today, made his initial appearance today before Magistrate Judge Kate M. Menendez in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment, WELSH is the owner and operator of the Press Bar and Parlor located in Saint Cloud, Minnesota. WELSH purchased and maintained a $1,350,000 business owner’s insurance policy for the Press Bar and Parlor. On February 17, 2020, WELSH used an ignitable liquid to set fire to the basement of the Press Bar and Parlor. The fire eventually spread and resulted in the total destruction of the building as well as other losses. On February 24, 2020, WELSH retained a Public Insurance Adjuster to assist in the preparation, presentation, and adjustment of insurance claims related to the fire. On February 26, 2020, WELSH, through the Public Insurance Adjuster, claimed that he was entitled to payment from the insurance company in the amount $1,430,123.28 for property damage and other losses related to the February 17, 2020 fire.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Cloud Police Department, the St. Cloud Fire Department, and the Minnesota State Fire Marshals, Stearns County Sheriff’s Office, with assistance from the Stearns County Attorney’s Office.
Assistant U.S. Attorney Nathan H. Nelson and Evan B. Gilead are prosecuting the case, with support from Assistant U.S. Attorney Joe Teirab.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ANDREW CHARLES WELSH, 41
Saint Joseph, Minn.
Charges:
- Arson, 1 count
- Use of fire to commit a federal felony, 1 count
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Oklahoma City Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeannie Rene Welch, age 35, of Oklahoma City, Oklahoma entered a guilty plea to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10.000,000.00, or both.
The Indictment alleged that on or about October 15, 2020, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Norwalk Man with 2 Prior Federal Convictions Pleads Guilty to Drug Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DOMENICO SANDALO, 46, of Norwalk, pleaded guilty today to one count of possession with intent to distribute 500 grams or more of cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, Sandalo was previously convicted of federal narcotics trafficking offenses in 2011 and 2013. In June 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, Stamford Police Department and Norwalk Police Department received information that Sandalo was in possession of a large quantity of cocaine, oxycodone pills and marijuana. On June 7, 2019, Sandalo was arrested after investigators conducted a court-authorized search of Sandalo’s residence and seized approximately 600 grams of cocaine, six kilograms of marijuana, 77 oxycodone pills, 46 fentanyl pills, 771 THC vape cartridges, and $53,943 in cash.
Sandalo is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 10, 2021, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The penalties in this matter are enhanced based on Sandalo’s criminal history.
Sandalo is released on a $1.5 million bond pending sentencing.
The DEA’s Bridgeport HIDTA Task Force, includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Northern District of Alabama Federal Law Enforcement Agencies Part of Global Crackdown Against Money Laundering and Transnational FraudRead the Press Release
BIRMINGHAM, Ala. – Today, North Alabama federal law enforcement agencies announced their participation and continuing engagement in the global law enforcement action against transnational money laundering and fraud perpetrated by “money mules”. The local North Alabama offices of the United States Attorney’s Office, Federal Bureau of Investigation, United States Postal Inspection Service, and U.S. Secret Service took part in the global enforcement action, which has acted against more than 2,300 suspected money mules. U.S. federal law enforcement agencies and Europol worked simultaneously in the Money Mule Initiative and the European Money Mule Action.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules. Northern District of Alabama law enforcement agencies are continuing to investigate and engage suspected money mules. This year’s Money Mule Initiative is the third annual crackdown against money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud that tend to target the elderly and other vulnerable populations.
Money mules are people who receive and move money obtained from victims of fraud. Some money mules know they have been recruited to assist criminal activity, but others become money mules without realizing their activity is benefiting fraudsters. Often, money mules are engaged by responding to a seemingly legitimate advertisement or social media post that promises easy money for little effort, or by helping someone they have met online or over the phone by agreeing to receive and transfer money, packages, gift cards, or virtual currency that support the global movement and laundering of criminal goods and finances.
“Federal law enforcement agencies continue to work tirelessly to protect victims from the many complex criminal schemes that seek to defraud consumers, businesses, and vulnerable populations,” said U.S. Attorney Prim F. Escalona. “Federal prosecutors and law enforcement remain determined in their fight against both the root and branch of criminal enterprises that deceive and harm our communities and citizens. Our office and our Elder Justice Coordinator will continue to reach out to North Alabama communities to educate citizens and communities on how best to recognize money mules and prevent financial fraud.”
“Acting as a money mule—allowing others to use your bank account, or conducting financial transactions on behalf of others, jeopardizes your financial security and compromises your personally identifiable information,” said Johnnie Sharp, Jr., Special Agent in Charge, FBI Birmingham Division. “Protect yourself by refusing to send or receive money on behalf of individuals and businesses for which you are not personally and professionally responsible. To report suspicious activity, please visit the FBI’s Internet Crime Complaint Center at ic3.gov.”
“The U.S. Postal Inspection Service (USPIS) is charged with defending the nation’s mail system from illegal use, no matter where those crimes originate,” said Adrian Gonzalez, Inspector-in-Charge of the Houston Division. “The number and variety of schemes that target our most vulnerable populations, including the elderly, are numerous and the effects of those schemes can be devastating to the victim and their families. Today’s challenging economy deems it critical that we give consumers tools to guard against losing their hard-earned money to these money mules. Postal Inspectors will continue to work with the U.S. Attorney’s Office as well as our local, state and federal law enforcement partners in investigating these crimes and bringing the perpetrators to justice.”
“The U.S. Secret Service remains steadfast in its investigative pursuit of money mules who are either knowingly or unknowingly attempting to hide and/or transfer illicit funds,” said Patrick M. Davis, Special Agent in Charge of the Birmingham Field Office. “The U.S. Secret Service will continue to work with our law enforcement partners to thoroughly investigate these crimes, seize unlawfully obtained funds and/or goods, and seek federal prosecution for those involved.”
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. The best method for prevention of elder fraud is 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. To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit the Department of Justice’s Money Mule Initiative website - Don't Be A Mule. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage (https://www.justice.gov/elderjustice). 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).
New York Man Sentenced to 54 Months’ Imprisonment and Must Pay over $857,000 for Defrauding the GovernmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 9, 2020, Francisco Rodriguez-Polanco, age 35, of the Bronx, New York, was sentenced to 54 months’ imprisonment and a two-year term of supervised release by United States District Judge Robert D. Mariani, for conspiring to defraud the government and for committing aggravated identity theft.
According to United States Attorney David J. Freed, Rodriguez-Polanco pleaded guilty to conspiring to defraud the government between January 2015 to July 2016. Rodriguez-Polanco and his conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. Rodriguez-Polanco and his conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Rodriguez-Polanco admitted that between $550, 000 and $1.5 million in losses occurred as a result of the criminal activity.
Judge Mariani also ordered Rodriguez-Polanco to pay $857,729.65 in restitution. Rodriguez-Polanco is a citizen of the Dominican Republic and faces deportation at the conclusion of his sentence of imprisonment.
Rodriguez-Polanco’s codefendant, Marien Torres-Acevedo, and another coconspirator, Julio Polanco Suarez, both pleaded guilty to similar offenses and await sentencing. A third coconspirator, Alfred LiPuma, age 81, was previously sentenced to three years of probation and paid $2.1 million in restitution and fines.
The matter was investigated by agents from the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service, Homeland Security Investigations, United States Postal Inspectors, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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New Jersey Man and New York Man Indicted on Fraud Charges Related to A Romance ScamRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 9, 2020, Kelvin Aggrey-Arthur, age 27, formerly of Newark, New Jersey, and Ibrahim Adam, age 32, formerly of New York City, were indicted by a federal grand jury for wire fraud and conspiring to commit wire fraud.
According to United States Attorney David J. Freed, the indictment alleges that from June 2018 through March 2020, Aggrey-Arthur, Adam, and others perpetrated a romance scam in which they developed online relationships with victims and then requested that those victims send them money for various reasons, including travel, medical treatment, housing, and schooling. The indictment further alleges that during the course of the scam, the co-conspirators attempted to obtain over $160,000 from victims.
The case was investigated by the United States Postal Inspection Service, the Susquehanna Township Police Department, and the Dauphin County Criminal Investigation Division. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the charged crimes is 20 years’ imprisonment. The maximum penalty also includes a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Muskogee Man Pleads Guilty to Assault with A Dangerous Weapon with Intent to Commit Bodily Harm in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dorion Martin, age 29, of Muskogee, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years of imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about July 30, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did assault D.N., T.S., and K.N. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Massachusetts Man Surrenders to Face Federal Firearm ChargeRead the Press Release
PROVIDENCE – Timothy J. Valle, 37, of Franklin, MA, made an initial appearance before a U.S. District Court Magistrate Judge in Providence today, charged after an investigation determined that he allegedly traded firearms, at least one from which the serial numbers had been obliterated, in exchange for fentanyl.
The firearm was seized by Pawtucket Police from Jonathan Reyes, 34, of Pawtucket, during a traffic stop on October 14, 2020. Reyes’ car was stopped by Pawtucket Police when officers noted that Reyes was allegedly not wearing a seat belt and that Virginia plates affixed to the car were registered to a different vehicle. During a search of the vehicle officers allegedly discovered a loaded Sig Sauer semi-automatic handgun with an obliterated serial number, the same firearm Valle allegedly traded to an individual other than Reyes in exchange for $1,000 worth of fentanyl.
Valle’s alleged criminal conduct came to the attention of law enforcement when the FBI executed a search warrant on a cellular telephone seized during a recent FBI investigation that resulted in the indictment of nine individuals for allegedly participating in schemes in several states to steal and sell nearly $700,000 worth of excavators, sport boats, jet skis, all-terrain vehicles, and trailers.
It is alleged in court documents that Valle texted pictures of the firearm to the person with whom he later traded with for the fentanyl. The firearm, with its serial numbers “washed,” or obliterated, was later confiscated from Reyes.
According to court documents, ATF agents determined that Valle lawfully purchased several firearms from licensed dealers in Massachusetts. As a result of the ongoing investigation into Valle’s alleged criminal activity and drug use, ATF agents, with the assistance of Franklin, MA, police seized several firearms from Valle’s residence. Pictures of a firearm that matched the firearm seized from Reyes were allegedly located on Valle’s cellphone.
Valle self-surrendered today and appeared before U.S. District Court Magistrate Patricia A. Sullivan on a criminal complaint charging him with possession of a firearm with an obliterated serial number, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
Valle’s alleged criminal conduct was investigated by ATF, with the assistance of the FBI, Rhode Island State Police, and the Franklin, MA, Police Department.
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Manager at Queens Not-For-Profit Pleads Guilty to Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Ingris Coronado pleaded guilty to a criminal information charging her with defrauding her former employer, Southern Queens Park Association (SQPA), a government-funded, Queens-based not-for-profit that provides educational and other social services to young adults. Today’s plea took place before United States District Judge William F. Kuntz, II. When sentenced, Coronado faces up to 20 years in prison, as well as forfeiture and a fine of up to $250,000 for submitting false invoices and cashing checks issued in the names of other individuals.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
Since at least 2014, Coronado worked as a Project Manager for SQPA, which received millions of dollars annually in New York City government funding. According to court filings and facts presented during the plea proceeding, between August 2014 and September 2018, Coronado engaged in a scheme to steal money from SQPA. Specifically, in her role as the supervisor of an after-school program run by SQPA, Coronado repeatedly falsified time sheets, collected checks issued in the names of more than ten of her supervisees and deposited those checks into her own bank account. On multiple occasions, Coronado also created false invoices for vendors for SQPA and deposited the resulting payment checks into her personal account. As a result of her fraudulent conduct, Coronado stole tens of thousands of dollars from SQPA.
“For years, Coronado deceived her employer and abused her position at a not-for-profit organization by stealing funds that were meant to benefit members of the community,” stated Acting United States Attorney DuCharme. “Today’s guilty plea makes clear that individuals who engage in fraud to satisfy their own greed at the expense of the community they are supposed to be serving will be brought to justice.”
“Coronado stole money directly from a city-funded, not-for-profit program established to provide services to young adults. Today she’s admitted to her criminal activity and faces a significant jail sentence as a result of her behavior. Let this be a message to others who are currently scamming the system—there are consequences for your actions,” stated FBI Assistant Director-in-Charge Sweeney.
“This defendant falsified timesheets and vendor invoices and pocketed checks issued to employees and vendors, amounting to tens of thousands of dollars – stealing taxpayer funds meant to help residents of southern Queens who rely on this nonprofit's programming. DOI is committed to investigating these damaging crimes that attack our City's charitable organizations and diminish the impact of the City's funding of their programs. We are proud to have partnered with the office of the United States Attorney for the Eastern District of New York and the Federal Bureau of Investigation to hold this defendant accountable for her conduct,” stated DOI Commissioner Garnett.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
INGRIS CORONADO
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-189 (WFK)
Man who worked at local research institute for 10 years pleads guilty to conspiring to steal trade secrets, sell them in ChinaRead the Press Release
press_release_translation.pdfCOLUMBUS, Ohio – A former Dublin, Ohio man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.
Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.
“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”
“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”
Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.
Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.
As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes. For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process. A sentencing date has not been set yet for either defendant.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
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Man Who Worked at Local Research Institute for 10 Years Pleads Guilty to Conspiring to Steal Trade Secrets, Sell Them in ChinaRead the Press Release
A former Dublin, Ohio, man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.
Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.
“Today’s plea underscores the Department of Justice’s commitment to protecting American research and trade secrets from those incentivized to steal them by Chinese Government programs,” said John C. Demers, Assistant Attorney General for National Security. “China’s endemic efforts to rob, replicate and replace products that they do not have the ability to develop themselves will not go unchecked, and those who seek to profit from the theft of trade secrets will be held accountable.”
“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”
“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”
Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.
Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.
As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes. For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
Man Sentenced to Prison for Mail Fraud and ID Theft SchemeRead the Press Release
NEWPORT NEWS, Va. – A New York man who formerly resided in Newport News was sentenced today to three years in prison for a mail fraud and identity theft scheme.
According to court documents, Christopher A. Phillips, 25, stole mail from unwitting victims and used personal information from that mail to open new bank accounts and lines of credit in their name. He next used mail-tracking services and techniques such as following mail routes to ensure he retrieved the new means of account access before the victims. Phillips then repeatedly purchased goods and services using the accounts he had opened in the victims’ names, resulting in a total loss of approximately $35,000.
As a result of Phillips’ scheme, investigators identified at least 12 victims of identity theft across Isle of Wight, Southampton, and Sussex Counties. At the time of his arrest, investigators recovered significant quantities of stolen mail and electronic devices with more suspected victims.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; James R. Clarke, Jr., Sheriff, Isle of Wight County; Josh Wyche Sr., Sheriff, Southampton County; and Earnest L. Giles, Sheriff, Sussex County, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-30.
Luzerne County Woman Sentenced to 102 Months’ Imprisonment for Drug Trafficking and Possession of A FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jessica Hernandez-Boria, age 40, of Hazleton, Pennsylvania, was sentenced on December 9, 2020, to 102 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for her involvement in a conspiracy that distributed approximately three kilograms of cocaine.
According to United States Attorney David J. Freed, Hernandez-Boria previously pleaded guilty to conspiring with others to distribute approximately three kilograms cocaine throughout Hazleton, Luzerne County, between September 2018 and February 2019. Hernandez-Boria also admitted to arming herself with a .40 caliber Glock firearm in furtherance of her drug trafficking activities.
Hernandez-Boria’s conviction and sentence resulted from a federal investigation which focused on the defendant’s residence in Hazleton where she frequently received large packages containing cocaine via the U.S. Mail from a source located in Puerto Rico. Hernandez-Boria delivered the packages to other drug dealers and was paid cash for her role in the conspiracy.
Judge Mariani also ordered Hernandez-Boria to serve four years of supervised release following her prison sentence. In addition to the firearm, federal agents also seized approximately $5,750 in cash from Hernandez-Boria at the time of her arrest, which was forfeited as a resulted of her prosecution.
The case was investigated by agents of the U.S. Postal Inspection Service, Philadelphia Division, and the Pennsylvania State Police. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Lil Wayne Pleads Guilty in Miami to Federal Gun ChargeRead the Press Release
Miami, Fl. -- Today, 38-year-old rapper Lil Wayne pled guilty in federal district court to illegally possessing a loaded, gold-plated .45-caliber handgun while traveling to South Florida on a private plane last Christmas season.
According to court documents, an anonymous tip led officers to Opa Locka Executive Airport on December 23, 2019, where Lil Wayne, whose official name is Dwayne Michael Carter, arrived on a private flight from California. Officers spoke with Carter, who told them that he had a gun in his bag. After securing a search warrant, officers looked in the bag containing Carter’s personal items and found a gold-plated Remington 1911, .45-caliber handgun loaded with six rounds of ammunition. The bag also contained personal use amounts of cocaine, ecstasy, and oxycodone. Prior to December 23, 2019, Carter had been convicted of a felony, which made his possession of the gun and ammunition on that day illegal.
Carter’s sentencing hearing is scheduled for January 28, 2021, at 2:00 p.m., before U.S. District Judge Kathleen M. Williams. Carter faces up to 10 years in federal prison.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated this case, with assistance from the Miami-Dade Police Department and Miami-Dade State Attorney’s Office. Assistant U.S. Attorney Daniel J. Marcet is prosecuting the case.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20222.
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Justice Department Files Statement of Interest in Michigan Religious Schools' Challenge to COVID-19 Closing OrderRead the Press Release
The Justice Department today filed a statement of interest in federal district court in Kalamazoo, Michigan, arguing that the Free Exercise Clause of the Constitution requires the state of Michigan to justify why it cannot provide exemptions to its school closing order for in-person instruction at religious high schools when it provides exemptions for trade and technical instruction in person, college sports teams, and other educational activities.
The plaintiff religious schools have implemented rigorous protocols to reduce the risk of COVID-19 transmission, including requiring masks and distancing, schedule changes to reduce movement, an outdoor tent cafeteria at one school, thermal screening kiosks, and others.
“The education of children is a matter of faith to many people, and the Free Exercise Clause of First Amendment to the United States Constitution protects religious education. The Free Exercise Clause does not protect nonreligious activities such as trade and technical classes and college sports,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “For more than two centuries, Americans have fought and died for the right of our people to worship and pray according to their conscience and faith. These noble patriots did not fight and die to protect the nonexistent authority of government to discriminate against the exercise of religion by people of faith. Discrimination against the right of the people to practice their religion violates everything this country stands for.”
The case was filed on Dec. 7, 2020, by three Catholic high schools, parents of students, and a Michigan association of religious schools challenging an order issued the same day by the Michigan Department of Health and Human Services ordering public and nonpublic high schools throughout the state closed. The plaintiffs allege that the schools have a sincerely held religious belief that the diverse religious aspects of a Catholic education must be conducted in person, including daily Mass, Eucharistic adoration, communal prayer throughout the school day, and spiritual formation with their teachers, among others. The Michigan order, however, requires all high schools to close, including religious high schools, while granting exceptions for trade and technical education, boarding schools, English Language Learner instruction, special education, and even college sports.
The United States’ brief explains that Michigan’s order “exempts a range of educational activities that the state deems important enough to be held in person notwithstanding the health risks, but has failed to exempt religious educational activities which the plaintiffs likewise sincerely believe must be held in person.” Such differential treatment of religious reasons for in‑person learning and various secular reasons for in-person learning and activities must be justified by a compelling government interest carried out through the least restrictive means. This, the brief maintains, the state has failed to do here.
Since Attorney General William P. Barr announced an initiative on April 27, 2020 to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic, the Civil Rights Division has filed numerous briefs and statements of interest concerning protections under the Constitution and the Bill of Rights.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by Architect and Owners of 15 Complexes in Four StatesRead the Press Release
The Justice Department announced the filing today of a lawsuit against J. Randolph Parry Architects, P.C. and eight owners of multifamily properties designed by the architectural firm.
The lawsuit alleges that the defendants violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to design and construct housing units and related facilities to make them accessible to people with disabilities.
“The Fair Housing Act and the Americans with Disabilities Act have been the law for more than a quarter century, and there is no excuse for owners and architects to continue developing properties that fail to comply with the accessibility requirements of these statutes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This flagrant disregard of federal law must stop, and stop now. We will hold accountable those who ignore their legal obligations to design and construct multifamily housing to be accessible to people with disabilities.”
The lawsuit, which was filed in the United States District Court for the Eastern District of Pennsylvania, alleges that at least 15 multifamily senior living properties have significant accessibility barriers, including inaccessible pedestrian routes to building entrances, inaccessible pedestrian routes from apartment units to amenities, inaccessible parking, door openings that are too narrow for a person using a wheelchair, environmental controls that are too high or too low for a person using a wheelchair to reach, and inaccessible bathrooms and kitchens.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility and civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing multifamily properties in a manner that discriminates against people with disabilities.
The 15 properties, all designed by J. Randolph Parry Architects, that are alleged to violate the FHA and ADA are:
- Traditions of Hanover, Bethlehem, Pennsylvania;
- Traditions of Hershey, Palmyra, Pennsylvania;
- Chestnut Knoll, Boyertown, Pennsylvania;
- Arbour Square, Harleysville, Pennsylvania;
- Cedar Views Apartments, Philadelphia, Pennsylvania;
- The Birches, Newtown, Pennsylvania;
- The Lifequest Nursing Center Addition, Quakertown, Pennsylvania;
- Keystone Villa, Douglasville, Pennsylvania;
- Alcoeur Gardens, Brick Township, New Jersey;
- Alcoeur Gardens, Toms River, New Jersey;
- Church Hill Village, Newtown, Connecticut;
- Heritage Green, Mechanicsville, Virginia;
- Homestead, Hamilton Township, New Jersey;
- The Villa Rafaella Addition, Pleasantville, New Jersey; and
- Woodbury Mews Colonial House, Woodbury, New Jersey.
Anyone with information about the inaccessible conditions at these properties should call the Department of Justice at 1-833-591-0291, and select option numbers (1 4 1): select one for English, four for housing accessibility and one for US v. J. Randolph Parry Architects to leave a message or send an email to [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at https://civilrights.justice.gov/.
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. Among other things, the FHA requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes to all units in buildings with elevators. Enacted in 1990, the ADA requires, among other things, that places of public accommodation, such as rental offices at multifamily complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
Jury Convicts Cocoa Man of Conspiracy to Possess with the Intent to Distribute FentanylRead the Press Release
Orlando, Florida – A federal jury has found Jerimiah Swanson (22, Cocoa) guilty of conspiracy to possess with the intent to distribute more than 40 grams of fentanyl. Swanson faces a minimum mandatory penalty of 5 years, and up to 40 years, in federal prison. His sentencing hearing is scheduled for March 9, 2021.
Swanson had been indicted on March 18, 2020.
According to testimony and evidence presented at trial, beginning no later than November 2019 and continuing through February 2020, Swanson and a co-defendant agreed to sell heroin that turned out to be the more potent opioid, fentanyl. A confidential informant working for the Drug Enforcement Administration made six recorded purchases, totaling over 150 grams of fentanyl, outside Swanson’s home in Cocoa. In February 2020, law enforcement executed a search of Swanson’s home and recovered baggies, digital scales covered with fentanyl and cocaine, and firearms from Swanson’s bedroom.
This case was investigated by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Florida Highway Patrol, and the Titusville Police Department. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Raymond Barrett to 57 months in prison today. The 40-year-old St. Louis, Missouri resident pleaded guilty to being a felon in possession of a firearm.
On February 21, 2019, Barrett was riding in the passenger seat of a vehicle that was the subject of a lawful traffic stop. During the stop, Barrett tried to hide his firearm in the passenger door pocket. Barrett then gave police officers a false name. After police discovered the name was false, Barrett admitted his real name and police determined he had a parole warrant. While Barrett was getting out of the vehicle, police saw and seized the firearm Barrett had placed in the door. Barrett had been convicted previously of burglary in four separate cases, and was paroled from a 12-year sentence for robbery shortly before committing the offense in this case.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Jason Dunkel is handling the case.
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Jacksonville Man Pleads Guilty to Producing Photos of Himself as He Sexually Abused an 11-Year-Old ChildRead the Press Release
Jacksonville, Florida – Columbus Donavan Jeffrey (43, Jacksonville) has pleaded guilty to two counts of producing images depicting himself as he sexually abused a child. Jeffrey faces an aggregate mandatory minimum penalty of 15 years, and up to 60 years, in federal prison and a potential life term of supervised release. Jeffrey was arrested on October 3, 2019, and remains in custody. A sentencing date has not yet been scheduled.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from a company that hosts an online social messaging application (app). Specifically, on May 3, 2019, a user named “hideme1977,” subsequently identified as Jeffrey, had uploaded several pornographic images using this app. These photos were taken by Jeffrey showing him sexually abusing an 11-year-old child. On October 3, 2019, detectives from the Jacksonville Sheriff’s Office (JSO) and other officers executed a search warrant at Jeffrey’s residence in Jacksonville. When interviewed, Jeffrey admitted that he had used the “hideme1977” username on the app. He also identified himself and the child as depicted in one of the photos that Jeffrey had uploaded to the app on May 3, 2019. JSO detectives were able to locate the child shown in the photos. During an interview, the child disclosed that Jeffrey had sexually abused the child on at least three separate occasions and had taken pictures of this sexual abuse during two of these incidents.
A forensic examination of Jeffrey’s cellphone revealed that it contained 635 images and 57 videos depicting the sexual abuse of minors, including other photos taken by Jeffrey in which he is shown sexually abusing the same child on several occasions in Jeffrey’s residence.
This case was investigated by the Jacksonville Sheriff’s Office, the National Center for Missing and Exploited Children, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys D. Rodney Brown and Kelly S. Karase.
It is another case 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.justice.gov/psc.
Indictment Unsealed Charging Three Men with Illegal Firearms Dealing Throughout Oklahoma, Texas, and MexicoRead the Press Release
OKLAHOMA CITY – JORGE LOUIS VILLARREAL, 41, of Texas, RICHARD CLINTON POND, 49, of Oklahoma City, and COREY LEE JUMP, 50, of Tecumseh, Oklahoma, have been charged with conspiring to deal firearms without a license, announced U.S. Attorney Timothy J. Downing.
On November 2, 2020, a Criminal Complaint was filed against Villarreal following the discovery of illegal firearms recovered in Mexico. The resulting investigation determined the firearms were originally purchased in Oklahoma.
On December 2, 2020, a federal grand jury returned a sealed seven-count Indictment charging Villarreal, Pond, and Jump with conspiracy to deal firearms without a license. According to the Indictment, between March 23, 2020, and October 31, 2020, Pond and Jump purchased firearms with the intent to sell them to Villarreal for profit. It is alleged that once Pond and Jump obtained the firearms, Villarreal traveled from Texas to Oklahoma to purchase the firearms from his co-defendants, which he subsequently resold in Texas and Mexico.
In addition to the Count 1 conspiracy charge, Count 2 charges Jump with unlawful dealing in firearms, Count 3 charges Pond with giving a false statement to acquire a firearm, Counts 4 and 7 charge Villarreal with traveling interstate to deal firearms without a license, Count 5 charges Pond with unlawful sale of a firearm to an out-of-state resident, and Count 6 charges Jump with giving false statements to an ATF agent during the investigation. The Indictment also seeks forfeiture of 117 specific firearms and seeks that Villarreal forfeit $44,881 in cash.
On December 4, 2020, the Indictment was unsealed following the arrest of the defendants.
If the defendants are found guilty, Counts 1, 2, 3, and 6 may result in a sentence of up to five years in prison, a $250,000 fine, and up to three years of supervised release. Counts 4, 5, and 7 may result in a sentence up to ten years in prison, a $250,000 fine, and up to three years supervised release.
This case is a result of an investigation by the ATF Oklahoma City Field Office with the assistance of the ATF McAllen, Texas Field Office. Assistant U.S. Attorneys Ashley Altshuler, Wilson McGarry, and Stan West are prosecuting the case.
The public is reminded that these charges are merely allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Indictment Disrupts Racketeering, Fraud Scheme to Steal and Sell State Certification ExamsRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Lawrence Keefe today announced the indictment of two people in a far-reaching conspiracy scheme to allegedly steal, defraud, and profiteer by cheating the state's educator testing, certification, and licensing process. The indictment says the couple and employees of their private company repeatedly took state-required exams in order to memorize the questions so they could then profit by selling them to prospective educators.
The indictment alleges that since January 2016, certified Florida teachers Kathleen M. Jasper, 42, and Jeremy M. Jasper, 40, both of Estero, Florida, stole content from the Florida Teacher Certification Exams (FTCE) and the Florida Educational Leadership Exam (FELE). They are alleged to have then included the stolen content in test preparation materials and services sold through their business, the indictment says. Passing these exams is required for certification in Florida, and the test content is owned by the Florida Department of Education and the State Board of Education.
“This alleged scheme represents an insult to the vast majority of Florida’s public school teachers and administrators who studied and worked hard the right way to become certified in their profession because it provided an illegal and unethical shortcut for others,” said Keefe, who is United States Attorney for the Northern District of Florida. “Floridians expect and deserve to know that the public schools to which they entrust their children to learn are being led by teachers and administrators who properly earned their way into the system. The profiteering scheme alleged in this indictment strikes at the very heart of public education by undermining the credibility of important licensing exams that help ensure the very best for our children.”
The indictment, issued by a federal grand jury on December 1, charges the Jaspers with racketeering conspiracy (RICO), conspiracy to commit wire fraud, 108 counts of wire fraud, conspiracy to commit theft of trade secrets, and three counts of theft of trade secrets. They face a potential maximum penalty of 20 years in prison for RICO conspiracy, conspiracy to commit wire fraud, and each wire fraud count, and up to 10 years in prison for conspiracy to commit theft of trade secrets and for each theft of trade secrets count.
According to the indictment, the Jaspers owned and operated NavaEd, LLC, a company that offered tutoring and training to prepare prospective Florida educators to pass the FTCE and the FELE. NavaEd offered training publications for sale worldwide directly through its website and through third-party e-commerce websites such as Amazon and Shopify.
The indictment alleges that Kathleen and Jeremy Jasper each took the FTCE and FELE multiple times – after having already passed the exams – in order to see and memorize, or “harvest,” as many different exam questions as possible. According to the indictment, the Jaspers also directed NavaEd employees and independent contractors to take the exams for the same purpose.
As alleged in the indictment, the Jaspers and NavaEd customers shared the stolen FTCE and FELE test content with each other through email, phone, video conferencing, and messaging applications. The indictment also alleges that the Jaspers republished the stolen test content – verbatim and almost verbatim – into NavaEd publications that were written to prepare future Florida teachers and school administrators for the certification exams. These publications, as well as other NavaEd FTCE and FELE preparation materials, were disseminated and used during NavaEd training seminars and tutoring sessions.
“Today’s indictment alleges that these two so-called educators knowingly and willfully preyed on school districts and teachers, and taxpayer money. Together with our law enforcement partners, we were able to stop them,” said Kori Smith, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “As the office responsible for identifying fraud, abuse, and other criminal activity involving Department of Education funds and programs, ensuring that those who abuse these funds or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission.”
The Jaspers, in their capacity as the owners of NavaEd, conspired to conduct their business affairs through a pattern of racketeering activity, which the indictment specifically alleges to consist of multiple acts of wire fraud. Wire fraud was committed when Kathleen and Jeremy Jasper, and employees and contractors working at their direction, falsely and fraudulently acknowledged and agreed to various testing rules and regulations, including a non-disclosure agreement, each time they registered to take the FTCE or FELE, the indictment says.
"These indictments are a powerful testament to the importance of cooperation between state and federal partners," said FDLE's Tallahassee Regional Operations Center Special Agent in Charge Mark Perez. "I am incredibly proud of the investigative resources our agents and analysts brought to this case, and tremendously grateful for our partners' diligent work ensuring that justice is done."
The case resulted from a joint investigation by the Florida Department of Law Enforcement, the United States Department of Education-Office of Inspector General, and the Florida Department of Education, with investigative assistance by Pearson VUE, the company with whom the Florida Department of Education contracted to administer and provide test security for the FTCE and FELE. Assistant United States Attorney Justin M. Keen is prosecuting the case.
An initial appearance and arraignment are scheduled for Friday, December 11, 2020, at 1:30 p.m., before the Honorable Magistrate Judge Martin Fitzpatrick at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Jasper Indictment - JasperHazleton Man Sentenced to 24 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 9, 2020, Rafael Lora, age 45, to Hazleton, Pennsylvania, was sentenced to 24 months’ imprisonment and a two-year term of supervised release by United States District Court Judge Robert D. Mariani, for conspiring to possess with the intent to distribute cocaine.
According to United States Attorney David J. Freed, Lora, his co-defendant Luis Santos, and other individuals conspired to import nearly a kilogram of cocaine from the Dominican Republic to Lora’s residence in Hazleton. The conspirators were apprehended while opening the package of cocaine at Lora’s residence. Lora’s codefendant, Santos, previously was sentenced to 60 months of imprisonment for his role in the offense.
The investigation was conducted by Homeland Security Investigations, the U.S. Postal Inspectors, Customs and Border Patrol, and other state and local law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Grand Jury Charges Pasadena Man Who Allegedly Bought Maserati SUV with Fraudulently Obtained COVID-19 Jobless Relief MoneyRead the Press Release
LOS ANGELES – A Pasadena man is scheduled to be arraigned today on federal charges alleging he used stolen identities to fraudulently obtain unemployment insurance benefits, which he later used to purchase a Maserati luxury SUV.
A federal grand jury on November 17 named Robert Sloan Mateer, 30, in a five-count indictment charging him with possession of at least 15 or more unauthorized access devices with intent to defraud, aggravated identity theft, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of ammunition.
According to an affidavit in support of a criminal complaint filed in this case, during a traffic stop on October 1, Pasadena Police officers arrested Mateer and found inside his Maserati 17 unemployment benefits debit cards, several other credit and debit cards, approximately $197,711 in cash, more than 85 grams of methamphetamine, and a loaded firearm with no serial number.
Evidence gathered during the investigation determined that at least 14 of the 17 debit cards were loaded with at least $133,000 in unemployment insurance benefits, later determined to have been issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March, and had been issued in the names of third-parties, including identity theft victims.
The California Employment Development Department (EDD) distributes unemployment insurance benefits under the CARES Act, which expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
According to the affidavit, Mateer admitted to obtaining the unemployment benefits debit cards by using “thousands” of identity profiles in his possession, that each debit card was loaded with approximately $14,500, and that he used the fraudulently obtained unemployment benefits to purchase the Maserati automobile.
Mateer also admitted that he withdrew the approximately $197,711 in cash found in his Maserati from ATMs across the Los Angeles area, the affidavit states. Mateer also allegedly withdrew approximately $13,840 from the EDD debit cards in his possession from September 19 to September 25.
Mateer was taken into federal custody on October 21 and was ordered detained pending trial.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Mateer would face a statutory mandatory minimum sentence of 17 years and a statutory maximum sentence of life in prison.
This matter was investigated by United States Postal Inspection Service.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section and Anna P. Farias-Eisner of the General Crimes Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section provided substantial assistance in this matter.
Fremont Resident Pleads Guilty to Smuggling Illegal High-Intensity Discharge Headlights into the U.S.Read the Press Release
OAKLAND - Chu-Chiang Ho, a/k/a Kevin Ho, pleaded guilty in federal court today to illegally importing automobile headlights that failed to meet U.S. safety standards, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge (San Francisco and Northern California) Tatum King. The plea was accepted by the Honorable Jon S. Tigar, U.S. District Judge.
Ho, 44, of Fremont, Calif., admitted that he has known since 2005 that the headlights and other headlight kit parts he had been importing from China were illegal, when he acknowledged in a report to the National Highway Transportation Safety Administration that the High-Intensity Discharge (“HID”) lights he imported from China were too bright and that they did not meet regulatory photometric requirements. Ho claimed at the time that he was discontinuing the sale of all illegal headlights. Nevertheless, for more than 13 years thereafter, he continued to smuggle the illegal parts into the United States and sell them through websites including HIDExtra.com, kalex.us, and opt7.com.
In the plea agreement, Ho admitted that the HID kit components that he imported are prohibited from importation into the United States under 49 U.S.C. §§ 30112 and 30115 because they violate Department of Transportation (DOT) safety laws, including those promulgated at 49 C.F.R. § 571.108, as they emit much brighter light than conventional headlights and can create a public safety hazard.
Ho also admitted that for more than a decade he engaged in various acts designed to conceal his scheme. For example, Ho changed company names numerous times to avoid detection by U.S. Customs and Border Protection (CBP) and he listed a variety of family members as corporate officers of his companies despite maintaining control over the business at all times. Ho also admitted that he misstated to CBP the nature of the merchandise he was importing to deceive the agency into believing the merchandise was legal.
Ho admitted that he profited from his scheme and used the proceeds of the illegal HID Kits to assist in his purchase of various properties in the Bay Area. He admitted that at least $1.7 million in proceeds from sales of his businesses was traceable to products he illegally smuggled into the United States.
A federal grand jury indicted Ho on March 14, 2019, charging him with seven counts of smuggling illegal headlights into United States, in violation of 18 U.S.C. § 545. Under the plea agreement, Ho pleaded guilty to one count. If Ho complies with the plea agreement, the remaining counts will be dismissed. Also as part of the plea agreement, Ho agreed to forfeit at least $1.7 million in criminal proceeds and all of the property he had smuggled into the United States that failed to meet the safety standards of 49 CFR 571.108.
Defendant was released on a bond secured by real property. Bail was set at $750,000.
Judge Tigar scheduled Ho’s sentencing for March 19, 2020. The maximum statutory penalty for a violation of 18 U.S.C. § 545 is twenty years’ imprisonment and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas R. Green is prosecuting the case with the assistance of Noble Hughes and Kay Konopaske. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations.