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Thursday 10 December 2020
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Releases Status ReportRead the Press Release
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives (AI/AN) today released a status report detailing accomplishments during its first year and outlining its strategy for the next 12 months. The President’s Executive Order (E.O.) 13898, set forth a range of tasks to be completed over the two-year life of the Task Force, with required reports at the end of each year. Attorney General William P. Barr and Secretary of the Interior David L. Bernhardt transmitted the status report to President Trump, and notably characterized these accomplishments as, “a productive first year of Task Force operations.”
In its first year, the Task Force, also known as Operation Lady Justice (OLJ), held more than 15 in-person and remote meetings with tribes, individuals and stakeholder groups, and established and convened 10 working groups to address specific mandates of the executive order, including developing protocols, solving cold cases and expanding outreach and awareness. Readouts of the sessions can be found on the Operation Lady Justice website.
“American Indians and Alaska Natives experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by indigenous people,” said Attorney General Barr. “Despite the COVID-19 pandemic and the unprecedented challenges it posed, the Task Force continued to progress with appropriate urgency to diagnose the symptoms of this intractable problem. They sought the help and input from tribal leaders and tribal communities to develop sustainable protocols that will lead to long-term resolutions tribal communities need and deserve.”
“The Trump Administration has taken numerous actions to support Tribal communities with a particular focus on addressing the crisis of missing and murdered Native Americans and Alaska Natives,” said Secretary of the Interior David L. Bernhardt. “The new cold case offices that we stood up around the country are already providing much needed support in a critical effort to resolve missing and murdered cases and provide justice for victims and their families.”
“It has been a true honor to represent the U.S. Department of Health and Human Services on the Operation Lady Justice Task Force and serve Native American communities and populations,” said Commissioner Jeannie Hovland of the Administration for Native Americans. “Tribal leaders and community advocates have been on the forefront of this issue for years. At their request, I have elevated the critical role prevention must play in reducing the number of Native Americans who tragically go missing or are murdered. With their partnership and guidance, HHS is taking unprecedented action on this issue using a public health approach. This means addressing the root causes of this issue. I believe that together we can, and will, end the crisis of Missing and Murdered Native Americans.”
“President Trump was the first President to formally recognize the long-overlooked issue of missing and murdered Native Americans, but more importantly he demanded action,” said Doug Hoelscher, Assistant to the President and Director of White House Intergovernmental Affairs. “The work of the Operation Lady Justice Task Force, created by President Trump’s executive order, is laying a solid foundation for long-sought progress by improving data coordination, enhancing collaboration among various law enforcement entities, creating several cold case offices, and elevating support for victims and their families. Thanks to President Trump’s leadership and the hard work of the Task Force members, tribal partners, and advocates, missing and murdered Native Americans are forgotten no more!”
President Trump signed E.O. 13898 on November 26, 2019, establishing the Operation Lady Justice Task Force, to “address the legitimate concerns of American Indian and Alaska Native communities regarding missing and murdered people.” The order requires the Task Force to submit a status report in November 2020 and a final report in November 2021. Attorney General Barr and Secretary Bernhardt are co-chairs, with Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan and Assistant Secretary for Indian Affairs Tara Katuk Mac Lean Sweeney serving as their designees. Marcia Good, from the Justice Department’s Office of Tribal Justice, is executive director.
As noted in the report, the Task Force will continue to consult with tribal leaders and solicit stakeholder feedback as it develops strategies for strengthening investigations, raising public awareness, and improving data collection and information sharing. Submission of the report caps National Native American Heritage Month. A list of Task Force members follows:
- Katherine (Katie) Sullivan, Principal Deputy Assistant Attorney General Office of Justice Programs U.S. Department of Justice Designee for Attorney General
- Tara Sweeney, Assistant Secretary for Indian Affairs U.S. Department of the Interior Designee for the Secretary of the Interior
- Charles (Charlie) Addington, Deputy Bureau Director Bureau of Indian Affairs, Office of Justice Services U.S. Department of the Interior
- Jean (Jeannie) Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans U.S. Department of Health and Human Services
- Laura Rogers, Principal Deputy Director Office on Violence Against Women U.S. Department of Justice
- Trent Shores, United States Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General's Advisory Committee
- Terry Wade, Executive Assistant Director Criminal, Cyber, Response and Services Branch Federal Bureau of Investigation
Plains Man Sentenced to Prison for Making and Sending Child Pornography VideosRead the Press Release
MISSOULA – A Plains man who admitted creating and transporting child pornography videos was sentenced today to 240 months in prison following by 10 years of supervised release, Acting U.S. Attorney Leif Johnson said.
David Paul Farrar, 58, pleaded guilty on Aug. 4 to sexual exploitation of a child and transportation of child pornography.
U.S. District Judge Dana L. Christensen presided. Farrar was detained.
“Homeland Security Investigations special agents are proud to work closely with the Sanders County Sheriff’s Department to target and arrest individuals who prey on women and children in what should be the safety of their own homes,” said Steven Cagen, Special Agent in Charge, HSI Denver. “Farrar’s sentencing sends a clear message, if you harm children, we will work tirelessly to find you and to bring you to justice.”
In court documents filed in the case, the prosecution said that while Farrar was away in Idaho in June 2019, he allowed a friend to stay at his home in Plains. The friend viewed electronic storage cards found in Farrar's house and saw that they contained sexually explicit photographs of a female child. The friend reported her findings to law enforcement.
An HSI agent obtained a search warrant for Farrar's residence and seized multiple computers and electronic storage devices. An analysis of the seized items determined they contained video files of the victim and were created sometime in 2013 or 2014. The videos were created using a cell phone or digital camera and contained lewd and lascivious images. Agents determined Farrar created the videos because the viewer can see his hand and hear his voice. Farrar also admitted to agents that he created the videos of the victim.
Agents also found a video of two other minor girls that contained lewd and lascivious images. The investigation determined that Farrar electronically transferred that video to a file on one of his computers.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by HSI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Pittsford Psychiatrist Going to Federal Prison for Bilking Hundreds of Thousands of Dollars from Health Care Benefit ProgramsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Muhammad Cheema, MD, 47, of Pittsford, NY, who was convicted of health care fraud, was sentenced to serve 18 months in prison by U.S. District Judge Charles J. Siragusa. The defendant was also to pay restitution totaling $813,495.48 to the victim health care benefit programs that he defrauded.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between 2013 and 2017, Dr. Cheema submitted approximately 5,000 false claims for psychotherapy services that he did not render. Based on these false claims, the defendant obtained payments totaling approximately $218,368 from health care benefit programs, including those operated by Excellus, MPV and others. In addition, from time to time, in response to audits and otherwise, Cheema created false medical records in an effort to substantiate his fraudulent billings and conceal his scheme.
The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and investigators from the New York State Department of Financial Services-Criminal Investigation Bureau, under the direction of Superintendent Linda Lacewell.
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Pennsylvania man pleads guilty to leading tile fraud ringRead the Press Release
U.S. Attorney Justin Herdman announced today that Chad M. Stellato, age 47, of Langhorne, Pennsylvania, entered a plea of guilty to an information charging him with one count of conspiracy to commit wire fraud and six counts of wire fraud.
According to court documents, from January of 2013 through January of 2016, Stellato and his co-conspirators devised a scheme to defraud the home improvement store Lowe’s Companies, Inc. (Lowe’s) through fraudulent merchandise purchases and returns at Lowe’s store locations in Alliance, Boardman and in other states.
To carry out their scheme, Stellato provided the funding for his co-conspirators to visit Lowe’s store locations and purchase large quantities of tile. The co-conspirators would place the boxes of tile in shopping carts and stack similarly packaged but lower-priced boxes of tile on top in order to conceal the higher-priced tile underneath. The co-conspirators would then take the shopping carts to the check-out counter and purchase all the tile, including the higher-priced title, at the lower price. As a result, Stellato and his co-conspirators were able to obtain multiple boxes of tile at a much lower price than the retail value.
The co-conspirators would then travel to a different store location and return the title, without a receipt, for a full refund placed on a Lowe’s stored value card. Stellato would provide funding to his co-conspirators to obtain the necessary identification documents required to obtain these refunds. Consequently, Stellato and his co-conspirators received more money in refunds from the returned boxes of tile than what they actually paid to purchase the tile.
Stellato would retrieve the stored value cards from his co-conspirators and use them to purchase items from Lowe’s, thereby receiving the value of the goods at a discounted cost. In total, Stellato and his co-conspirators are accused of defrauding Lowe’s of approximately $444,000.
Stellato is scheduled to be sentenced on April 1, 2021, before U.S. District Court Judge James S. Gwin.
The investigation preceding the indictment was conducted by the United States Secret Service and the Ohio State Highway Patrol. This case is being prosecuted by Assistant U.S. Attorney Brendan D. O’Shea.
Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeRead the Press Release
Three defendants, all of whom are nurse practitioners, were sentenced to prison for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, 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.
Cynthia Clemons was sentenced to 42 months in prison, Courtney Newman was sentenced to 40 months in prison, and Holli Carmichael Womack was sentenced to 30 months in prison.
Clemons and Newman, both of Knoxville, Tennessee, and Womack, of Crossville, Tennessee, were sentenced by U.S. District Judge Thomas A. Varlan. All three defendants were found guilty by a jury on Feb. 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.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Criminal Division’s Organized Crime and Gang Section (OCGS), 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 Justice Department’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot with OCGS and Assistant U.S. Attorney Tracy L. Stone prosecuted the case.
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.
Omaha Man Sentenced for Selling MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Edward Bean, 53, of Omaha, Nebraska, was sentenced on December 9, 2020 in federal court for possession of methamphetamine with intent to distribute. United States District Judge Brian C. Buescher sentenced Bean to 130 months’ incarceration to be followed by five years of supervised release. There is no parole in the federal system.
On February 27, 2020, Omaha Police utilized a confidential informant to purchase methamphetamine from Bean at his home. Officers then obtained a search warrant. During a search of Bean’s home, officers found 80 grams of actual methamphetamine and a digital scale. In a post-arrest interview, Bean admitted to distributing methamphetamine.
This case was investigated by the Omaha Police Department.
Newport Woman Pleads Guilty to Wire Fraud and Stealing from Federally Funded ProgramRead the Press Release
BANGOR, Maine: A Newport woman pleaded guilty today in federal court to wire fraud and federal government program theft, U.S. Attorney Halsey B. Frank announced.
According to court records, from June 2015 through April 2019, Sheri G. Walsh, 56, embezzled more than $250,000 from two nonprofit organizations where she worked. Walsh carried out the scheme by fraudulently transferring funds from one organization to another, then converting the funds to her own use. During the relevant period, one of the nonprofits received federal grant monies from both the U.S. Environmental Protection Agency and the U.S. Department of Agriculture.
Walsh faces up to 20 years in prison on the mail fraud charge and up to 10 years in prison on the theft charge. She also faces up to three years of supervised release and a fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Ellsworth Police Department, the FBI, the EPA Office of Inspector General and the USDA Office of Inspector General investigated the case.
Natick Psychiatrist Indicted for Billing Medicare and Private Insurance Companies for Services Never Rendered and for ObstructionRead the Press Release
BOSTON – A Natick psychiatrist was arrested today in connection with charges that he billed Medicare and private insurance companies for over $10 million in treatments he did not provide and then obstructed justice in an attempt to conceal his crimes.
Gustavo Kinrys, 49, of Wellesley, was indicted on seven counts of wire fraud, six counts of false statements relating to health care matters, one count of falsification of documents and one count of obstructing a criminal health care investigation. Kinrys was arrested today and will appear via videoconference in federal court in Boston this afternoon.
“Fraud in the Medicare system is a persistent, long-term problem,” said United States Attorney Andrew E. Lelling. “Physicians who defraud the system are taking dollars that could otherwise be used to support patient health. We will continue to prioritize these cases.”
“We take very seriously our responsibility to safeguard taxpayer funds by eliminating fraud within our federal healthcare system,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s arrest and the charges alleged in the indictment serve as a strong reminder that we will not tolerate fraud against our federal healthcare system or acts of obstruction that attempt to conceal those schemes.”
“Dr. Kinrys is accused of exploiting our healthcare system—paid for, in part, by taxpayer dollars—in order to line his own pockets without any regard for the harm his actions would cause. He billed public and private insurance companies more than $10.6 million for medical treatments he never provided, and then tried to cover it up by obstructing the investigation,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Anyone involved in, or entertaining similar activity should know that health care fraud is a priority for the FBI, and we will pursue anyone trying to steal from this country’s vital health care system.”
“This case illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. We applaud the collaboration of our investigative partners in combating fraud in our healthcare system,” said Anthony M. DiPaolo, Executive Director of the Massachusetts Insurance Fraud Bureau.
Kinrys was a licensed psychiatrist who owned and operated Advanced TMS Associates, located in Natick, Mass. Among other services, Kinrys offered transcranial magnetic stimulation (TMS) therapy and psychotherapy to patients suffering from depression. TMS therapy is a noninvasive method of brain stimulation that uses rapidly alternating or pulsed magnetic fields to induce electrical currents directed at a patient’s cerebral cortex.
The indictment alleges that between January 2015 and December 2018, Kinrys engaged in a variety of fraudulent billing schemes in which he sought and received reimbursement for services he did not render. For example, Kinrys billed Medicare and private insurers over $10 million for thousands of TMS sessions he never provided, including over 8,000 sessions he claimed were provided to 75 patients who, in fact, never received a single session of the therapy. Kinrys allegedly billed Medicare and private insurers for hundreds of thousands of dollars’ worth of psychotherapy sessions he never provided, including over 1,000 face-to-face sessions he falsely claimed he provided while he or his patients were in fact out of the country. On hundreds of occasions, it is alleged that Kinrys billed Medicare and private insurers for having provided more than 24 hours’ worth of psychotherapy services in a single day, including one day in 2017 when he claimed he had provided hour-long psychotherapy sessions to 79 different patients.
To further his fraudulent billing scheme, Kinrys allegedly made numerous false statements to his patients, the billing company with which he worked and the insurers to whom he submitted claims seeking reimbursement. When Medicare, private insurers, and the Department of Health and Human Services (HHS) sought records from Kinrys pertaining to certain of his claims, he took steps to conceal his fraudulent conduct by making false representations and creating false documentation purporting to show that he had provided thousands of treatments he had billed for, but never rendered. For example, in response to a July 2018 subpoena from the HHS’s Office of Inspector General seeking medical records for 10 of his patients, Kinrys allegedly created documents – and ordered his office workers to create documents – falsely stating that those patients had received dozens of treatments they had never been provided.
The charges of wire fraud and destruction or falsification of records each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of false statements relating to health care matters and obstruction of a criminal investigation of a health care offense each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, HHS-OIG SAC Coyne, FBI Boston SAC Bonavolonta and Massachusetts IFB Executive Director DiPaolo made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
NDTX Round-Up: December 4-10Read the Press Release
GUILTY PLEA – VANCY BRIDGES
On December 4, Vancy Bridges, 76, plead guilty to misprision of a felony. Bridges worked as a doctor and supervised nurse practitioners for in-home patients. Bridges was unaware that that a co-worker had been previously convicted of healthcare-related fraud and had no medical training. In July 2016, Bridges observed a patient list for patients and visits that he did not perform. Bridges questioned why these patients were listed as attributed to himself. Bridges did not report the fraudulent activity to a law enforcement authority after he became aware of it. He admitted to knowing that the conduct was illegal and that another individual used his unauthorized signature to bill Medicare. Vancy faces up to 3 years in federal prison for his crimes. This case was investigated by the Department of Health and Human Services OIG and the FBI. Assistant U.S. Attorney John De La Garza is prosecuting this case.SENTENCING – LARRY DONELL BOOKER
On December 7, Larry Donell Booker, 61, was sentenced to 37 months in federal prison for conspiracy to possess with intent to distribute Hydrocodone. Booker met a confidential government source to arrange a transaction of Hydrocodone. Two days later, Booker sold the government source 1,000 pills of suspected Hydrocodone in exchange for U.S. currency. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuted this case.GUILY PLEA – KEVIN RAY STANDFIELD
On December 8, Kevin Ray Standfield, 36, plead guilty to possession of a firearm by a convicted felon, possession with intent to distribute a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime. Dallas Police Officers observed Standfield at a drug house conducting what officers believed were drug transactions. Officers obtained a search warrant for the residence. While executing the search warrant, officers found Standfield in the residence running down the hallway into the bathroom with a firearm and suspected cocaine in his hands. Officers recovered powered cocaine, methamphetamine, marijuana, assorted pills, and a firearm at the residence. Standfield faces up to life in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Dallas Police Department. Assistant U.S. Attorney John Boyle is prosecuting this case.SENTENCING – ROBERT ELMER KERR
On December 10, Robert Elmer Kerr, 50, was sentenced to 150 months for receipt of child pornography. Kerr admitted to downloading and possessing thousands of files of child pornography on his laptop. Law enforcement conducted a forensic analysis of Kerr’s laptop and external hard drive and discovered 24,000 images and 1,000 videos depicting sexually explicit conduct and the lewd and lascivious exhibition of minors. This case was investigated by the FBI and the Irving Police Department. Assistant U.S. Attorney Camille Sparks is prosecuted this case.SENTENCING – MARIO ISABEL CARILLO PERALES
On December 1, Mario Isabel Carillo Perales, 37, was sentenced to 11 years in federal prison for possession with the intent to distribute a controlled substance. Undercover agents contacted a Mexico based methamphetamine drug dealer who agreed to sell one kilogram of methamphetamine. Perales delivered one kilogram of methamphetamine to undercover agents in exchange for U.S. currency. Perales admitted that the methamphetamine he sold originated from Mexico. He also indicated that he distributed 3.5 kilograms of methamphetamine in Dallas and one kilogram in Oklahoma. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull prosecuted this case.SENTENCING – CHRISTOPHER DEON HORTON
On December 3, Christopher Deon Horton, 35, was sentenced to 10 years in federal prison for possession with intent to distribute cocaine. In September 2019, Horton possessed approximately 100 grams of cocaine which he intended to distribute. This case was investigated by Drug Enforcement Administration and the Ennis Police Department. Assistant U.S. Attorney Phelesa Guy prosecuted this case.Montgomery County Man Sentenced to 268 Months for Drug Trafficking and Firearms OffensesRead the Press Release
FRANKFORT, Ky. - A Montgomery County, Ky., man, Scotty Allen Jones, 48, was sentenced on Thursday to 268 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for distributing a fentanyl and heroin mixture, possessing acetylfentanyl with intent to distribute, possessing a firearm in furtherance of drug trafficking, and being a felon in possession of firearms.
As part of his plea agreement, Jones admitted that, in September 2018, he sold quantities of heroin and fentanyl mixtures to a confidential informant, who was working with law enforcement. During one of the drug transactions, Jones admitted to possessing a firearm for the purpose of furthering his drug trafficking
Jones also admitted to pawning at least two firearms, at a local pawn shop in Mt. Sterling, Ky., in February 2019. Jones has prior felony convictions for drug trafficking and burglary, and was prohibited from possessing firearms.
In March 2019, officers with the Kentucky Department of Fish and Wildlife attempted to arrest Jones on several outstanding warrants, while Jones was at a gas station in Jeffersonville, Ky. Jones fled from the officers, and after vehicle and foot pursuits, Jones was apprehended. Upon his arrest, Jones was found in possession of 10 grams of acetylfentanyl, a dangerous Schedule I controlled substance. As part of his plea agreement, Jones admitted that intended to distribute the acetylfentanyl in his possession.
Jones further admitted to possessing eight firearms, which were discovered by law enforcement during a search of barn in Jeffersonville, in April 2019.
Jones pleaded guilty in July 2020.
Under federal law, Jones must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Acting Commissioner Lt. Colonel Phillip Burnett, Kentucky State Police; and Colonel Eric Gibson, Law Enforcement Director, Kentucky Department of Fish and Wildlife jointly announced the sentence.
The investigation was conducted by ATF, KSP, and the KY Dept. of Fish and Wildlife. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Duncan, coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Monongalia County man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clay Westbrook, of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Westbrook, age 39, pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Westbrook admitted to having methamphetamine in December 2019 in Monongalia County.
Westbrook faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Monmouth County Man Charged with Being Felon in Possession of WeaponRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial appearance today after being charged with illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Lashawn Alford, 27, of Asbury Park, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Douglas E. Arpert and was detained pending a bail hearing.
According to documents filed in this case and statements made in court:
On July 20, 2020, Monmouth County Prosecutor’s Office Detectives and Neptune City Police Officers responded to an apartment complex in Neptune City to conduct surveillance of suspected gang activity. Law enforcement officers observed Alford, a previously convicted felon, exit an apartment and get into the back of a car that drove out of the complex. Law enforcement knew Alford to be a member of the Queen Street II Bloods street gang and determined that Alford had an outstanding warrant for his arrest in Asbury Park. Law enforcement stopped the car and arrested Alford. A loaded Smith and Wesson, model M&P Compact, .22 caliber pistol was located on the floor of the car where Alford had been sitting.
The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
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 ensured 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.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican Citizen Arrested for SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Mario Flores-Arias, age 32, and a citizen of Mexico, was arrested on December 5 and charged by criminal complaint with alien smuggling.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
The criminal complaint alleges that Flores-Arias was arrested while transporting three foreign nationals who had illegally crossed into the United States through the woods near Chateaugay, New York. Border Patrol Agents stopped Flores-Arias’s vehicle and detained the occupants.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Flores-Arias appeared before United Magistrate Judge Gary L. Favro on December 8 and was ordered detained pending trial.
If convicted, Flores-Arias faces up to 5 years in prison. The three occupants of the vehicle, all citizens of Vietnam, were found to be illegally present in the United States. They were detained and expelled to Canada.
This case is being investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Jeffrey Stitt.
Methamphetamine Dealer Sent to Federal Prison for Nearly Fifteen YearsRead the Press Release
A man who intended to distribute over a pound of methamphetamine was sentenced December 9, 2020, to more almost 15 years in federal prison.
Tyson Wahlen, age 34, from Dodgeville, Wisconsin, received the prison term after a June 23, 2020 guilty plea to one count of possession with intent to distribute a controlled substance.
In a plea agreement, Wahlen admitted that on December 3, 2019, law enforcement conducted a traffic stop on his car for speeding in Dubuque, Iowa. During the traffic stop, a K-9 was deployed and alerted to the odor of narcotics coming from Wahlen’s car. Officers searched the car and recovered a yellow backpack from the front passenger floorboard. The backpack contained over 550 grams of methamphetamine, over four grams of marijuana, a digital scale, and a couple of pipes. Wahlen intended to distribute some or all of the methamphetamine inside the yellow backpack to other individuals.
Wahlen was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wahlen was sentenced to 178 months’ imprisonment, and he must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Wahlen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the Dubuque Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01008.
Memphis Man Sentenced to 20 Years in Federal Prison for Multiple Armed Business RobberiesRead the Press Release
Memphis, TN – Aaron Whitley, 21, has been sentenced to 240 months in federal prison for multiple Hobbs Act business robberies and brandishing a firearm during and in relation to those crimes of violence. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on July 30, 2019, at 10:50 pm, Whitley stole a Silver 2010 GMC Terrain parked outside of Circle K on North Germantown Parkway. The owner of the SUV reported that he left his car running while he walked inside the business, and turned around just in time to see someone drive away in his car. The owner worked as a security guard and his uniform, security badge and loaded 9mm pistol were in the car at the time. Whitley took the car, security guard uniform and the gun, and within twenty minutes committed three armed robberies of various convenience store businesses on Austin Peay Highway.
Specifically, Whitley took at gunpoint $190.00 and 6 packs of Newport 100 cigarettes from Marathon gas station; he then drove to Exxon where he took at gunpoint approximately $250.00-$300.00 in cash and 6 packs of Newport cigarettes; And finally, Whitley took at gunpoint $36.00 from Circle K. The clerk at Circle K managed to put a tracking device in the bag he gave Whitley. Moments after the third robbery, deputies with the Shelby County Sheriff’s Office conducted a traffic stop for speeding on the GMC Terrain. Whitley, the driver was the only person in the car.
Evidence found in the car from all three robberies included, but was not limited to, 12 packs of Newport cigarettes, $430.55 in cash, a tracking device, a security guard shirt, and the 9mm pistol that matched the description given by the victims.
On December 9, 2020, U.S. District Court Judge Thomas L. Parker sentenced Whitley to 240 months in federal prison followed by four years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury by the simple squeeze of a trigger. Within the short span of 20 minutes, this young violent offender’s selfish and impulsive greed terrorized multiple victims – and rightly earned him a long sentence of 20 years in a federal prison."
The FBI Safe Streets Task Force and the Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Will Crow and Raney Irwin prosecuted this case on behalf of the government.
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Maryland Man Indicted on 13 Counts Related to Financial Exploitation of Two Elderly District ResidentsRead the Press Release
WASHINGTON – Thornton Fennell, 56, was indicted on October 26, 2020, and arrested on December 5, 2020, on charges involving the financial exploitation of two elderly District residents.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Karl Racine, Attorney General for the District of Columbia.
The indictment charged Fennell with three counts of Financial Exploitation of an Elderly Person (FEVA) and ten counts of First Degree Theft of a Senior Citizen. The charges involve fraudulently obtaining funds from two different elderly victims as well as using intimidation, deception, and undue influence to cause an elderly victim to take on a reverse mortgage for the benefit of another person. The theft charges involved $4,308 from one victim and $63,600 from the other.
An indictment is merely a finding of probable cause by the grand jury. All criminal defendants are presumed innocent until proven guilty.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the Office of the Attorney General to prosecute cases of this kind.
In announcing the indictment and arrest, Acting U.S. Attorney Sherwin, Chief Newsham, and Attorney General Racine commended the work of those who investigated the cases from the District of Columbia’s Office of the Attorney General and MPD. They also cited the efforts of Special Assistant United States Attorney Jennifer C. Mika, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims, and Assistant United States Attorney Chimnomnso Kalu, who investigated and are prosecuting the case for the U.S. Attorney’s Office for the District of Columbia with support from Paralegal Specialist Chad D. Byron.
Marlboro Woman Indicted for Welfare FraudRead the Press Release
BOSTON – A Marlboro woman was arrested today for fraudulently receiving Social Security disability benefits, MassHealth, Supplemental Nutrition Assistance Program (SNAP) benefits and Section 8 housing assistance.
Maribel Rodriguez, 61, was charged by criminal complaint with four counts of theft of public funds and two counts of making false statements. She will make an initial appearance before U.S. District Court Magistrate Judge David Hennessy this afternoon.
According to the indictment, over a period of approximately 12 years, Rodriguez stole $68,223 in Social Security benefits, $1,908 in MassHealth benefits, $21,790 in SNAP benefits (previously known as Food Stamps), and $161,277 in Section 8 housing assistance benefits. In June 2016, she falsely informed the Social Security Administration that she lived alone when, in fact, she was living with her husband. Similarly, Rodriguez falsely told the Marlborough Community Development Authority in May 2017 that she was the only member of her household.
The charges of theft of public funds provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making false statements provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Service’s Office of Inspector General, Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manchester Man Sentenced to 96 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Christopher Gelinas, 24, of Manchester, was sentenced to 96 months in federal prison for distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Gelinas sold highly-pure methamphetamine to an individual who was cooperating with law enforcement officers on two occasions. On October 23, 2019, a cooperating individual bought methamphetamine from Gelinas at a residence in Concord. On November 18, 2019, a cooperating individual purchased methamphetamine from Gelinas in Boscawen.
Gelinas previously pleaded guilty on August 31, 2020.
“Even as we continue to struggle with the problems caused by opioids, methamphetamine continues to pose a serious danger to public health and safety in New Hampshire,” said U.S. Attorney Murray. “The increasing presence of highly-pure methamphetamine in the Granite State is presenting yet another challenge for our communities. We will continue to work closely with the DEA and all of our law enforcement partners to target the traffickers who sell this dangerous drug and to ensure that methamphetamine dealers are held accountable for their illegal conduct.”
“DEA will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Gelinas accountable for his crimes but serves as a warning that DEA and its local, state and federal partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police and the Concord Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Macon Firearms Trafficker Sentenced to Serve 16+ Years in Federal PrisonRead the Press Release
MACON, Ga. – A convicted felon was sentenced to serve more than 16 years in a federal prison today, the result of a lengthy investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bibb County Sheriff’s Office into illegal firearms trafficking in the Macon area, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Keon Hendley, 35, of Macon, was sentenced to serve 200 months in federal prison by U.S. District Judge Marc Treadwell after previously pleading guilty to one count possession of a firearm and one count possession of cocaine. In addition, Hendley was ordered to serve three years of supervised release following his imprisonment. There is no parole in the federal system.p
ATF agents, working with a confidential informant (CI), negotiated the purchase of large amounts of firearms from Hendley, a convicted felon, on four separate occasions in 2019 at various locations across Macon. In total, 23 firearms were obtained from Hendley during this operation, along with methamphetamine and cocaine. Five of those firearms were confirmed stolen by the ATF.
“Shutting down this prolific illegal arms dealer in the Macon community has undoubtedly prevented additional crimes and violence,” said U.S. Attorney Charlie Peeler. “The U.S. Attorney’s Office is working closely with our law enforcement partners in the quest to curb gun violence and crime, and we will hold those breaking the law accountable. I want to thank ATF and the Bibb County Sheriff’s Office for their excellent work investigating this case.”
“We must do all we can to take illegal guns off our streets,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “ Firearm traffickers like Keon Hendley put guns in the hands of criminals which leads to violence, destruction and heartache for so many of our communities. The Bibb County Sheriff is committed to reducing gun violence in Macon and throughout Bibb County and ATF will continue to do all we can to identify, investigate and arrest anyone who sells guns illegally and threatens the safety of our neighborhoods.”
“We can all be proud of the efforts of the Bibb Sheriff’s investigators and ATF agents to bring this gun peddling career criminal to justice. This case is a fine example of the success achieved by our local and federal law enforcement partnerships,” said Bibb County Sheriff David Davis.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Criminal Division Chief Michael Solis and Assistant U.S. Attorney Charles Calhoun prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Local man gets significant sentence for smuggling cocaine in car doorsRead the Press Release
McALLEN, Texas – A 55-year-old man from Palmview has been ordered to federal prison following his conviction of possession with intent to distribute approximately 28 kilograms of cocaine, announced U.S. Attorney Ryan Patrick.
Rodolfo Urive Jr. pleaded guilty June 18.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Urive to serve a 120-month sentence to be immediately followed by five years of supervised of release.
Urive attempted to pass the Falfurrias Border Patrol Checkpoint on Oct. 20, 2019. Law enforcement conducted a primary inspection and, during a free air sniff, a K-9 alerted to the presence of narcotics in the vehicle. In addition, an X-Ray examination also showed anomalies within three of the four doors.
A subsequent search of the vehicle revealed 23 packages concealed within the natural voids of the two passenger and rear driver side doors. They had an approximate weight of 28 kilograms and all tested positive for cocaine.
The drugs had an approximate street value of $750,000.
Urive admitted he was transporting the narcotics in his truck.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Little Rock Woman Pleads Guilty to COVID Relief Fraud:Read the Press Release
LITTLE ROCK—A Little Rock woman pleaded guilty to bank fraud this afternoon after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the guilty plea of Ganell Tubbs, 41.
At today’s hearing, Tubbs admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.
“This defendant took almost two million dollars that were intended to keep small businesses afloat during COVID-related shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans needed these funds to pay their employees and support their families, and we will not tolerate fraudsters who lie to obtain these funds and then use them for their personal enjoyment. We ask anyone with information on suspected PPP fraud to please report it.”
The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs pleaded guilty today to one count of bank fraud in exchange for dismissal of the remaining charges.
Tubbs’ plea was accepted this afternoon by United States District Judge Brian S. Miller, who will sentence Tubbs at a later date. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey are prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Keshena Man Indicted for Unlawful Possession of Firearm on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 8, 2020, a federal grand jury indicted Martin W. Penass, a/k/a “Aptickasic Hawpetoss” (age: 42), of Keshena, for being a Felon in Possession of a Firearm, in violation of 18 U.S.C. 922(g). If convicted, Penass faces a maximum sentence of ten years in prison, up to three years on supervised release, up to a $250,000 fine, and a $100 Special Assessment.
According to the indictment, on or about June 25, 2020, despite knowing he was prohibited from doing so, Penass possessed a semiautomatic rifle of a design commonly referred to as an “AR-15” while at a remote area outside Neopit, which is a community on the Menominee Indian Reservation.
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://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
Keshena Man Indicted for Burglary & Unlawful Possession of Firearms on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 8, 2020, a federal grand jury indicted Austin A. Kaquatosh (age: 27), formerly of Keshena, for his alleged involvement in a burglary and unlawful possession of firearms during an incident at a residence on the Menominee Indian Reservation. The indictment contains the following counts:
COUNT
CHARGE
MAXIMUM SENTENCE
One
Burglary
18 U.S.C. § 1153 and Wis. Stat. § 943.10(am)(a)
90 months in prison
Two
Felon in Possession of a Firearm
18 U.S.C. §§ 922(g)(1) and 924(a)(2)
120 months in prison
If convicted, in addition to the maximum imprisonment terms listed above, Kaquatosh would face fines and a term of supervised release.
According to the indictment, on or about June 9, 2020, Kaquatosh entered a residence without permission and stole several items, including firearms. In doing so, Kaquatosh allegedly possessed a firearm despite knowing he was prohibited from doing so.
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://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
Kelvin John Mata Tedtaotao Sentenced for Conspiracy to Distribute over 50 Grams of MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Kelvin John Mata Tedtaotao, age 37, from Merizo, Guam, was sentenced in the United States District Court of Guam to 30 months imprisonment for Conspiracy to Distribute Over 50 Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846. The Court also ordered three years of supervised release following imprisonment and $1,692 in restitution to the U.S. Postal Inspection Service and Homeland Security Investigations. The defendant must also perform 100 hours of community service and pay a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 14, 2018, Tedtaotao received two packages that had been mailed to Guam via the United States Postal Service (USPS) by another individual. Prior to USPS delivery, law enforcement removed the methamphetamine from both packages and replaced it with a sham substance. Tedtaotao believed the packages contained methamphetamine, which he intended to distribute to others. The combined weight of the methamphetamine was approximately 223 grams, with a purity of 98%, as determined by the United States Postal Drug Laboratory.
U.S. Attorney Anderson stated, “This case sends an important message to drug traffickers who use our mail system to facilitate their illegal activity. Anyone involved with the shipment of drugs in the mail can become the target of an investigation and face substantial time in a federal prison. I applaud the efforts of these federal agencies in their continuing enforcement operations.”
This case was a result of a joint investigation by the U.S. Postal Inspection Service, Homeland Security Investigations, and the Drug Enforcement Administration. The case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Keene Man Pleads Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
CONCORD - Roland Farnsworth, 37, of Keene, pleaded guilty on Wednesday in federal court to conspiracy to distribute, and possess with intent to distribute, fentanyl and crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in June of 2019, the Keene Police Department began investigating a possible drug trafficking operation in the Keene area. As part of their investigation, several cooperating individuals made controlled purchases of drugs, including fentanyl, from Farnsworth. The purchases took place at or near Farnsworth’s residence. In September, 2019, search warrants were obtained for Farnsworth’s residence, his cell phone, and a vehicle. The contents of the cell phone, along with Farnsworth’s admissions, confirmed he was selling fentanyl and crack cocaine to numerous individuals in the Keene area.
Farnsworth is scheduled to be sentenced on March 18, 2021.
“Drug traffickers make dangerous substances available for sale in Cheshire County and throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to bring criminal charges against the dealers who peddle illegal drugs to Granite Staters. Traffickers should expect that they will be arrested and brought before the federal court to face justice.”
“Those who deal in and distribute fentanyl and other poisons in our communities will be held accountable.” said David Magdycz, acting Special Agent in Charge of Homeland Security Investigations, Boston. “We continue to work with our New Hampshire law enforcement partners and the U.S. Attorney for New Hampshire to combat the crimes committed in our region.”
This matter was investigated by Homeland Security Investigations with assistance from the Keene Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Justice Department Announces Additional Distribution of more than $488 Million to Victims of Madoff Ponzi SchemeRead the Press Release
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its sixth distribution of approximately $488 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to almost $3.2 billion to nearly 37,000 victims worldwide.
In this distribution, payments will be sent to over 30,000 victims across the globe, bringing their total recovery to 80.05 percent. This distribution represents the sixth in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
“With the $488 million distributed today, the department has now returned almost $3.2 billion to Madoff’s victims, allowing them to recover more than 80 percent of what they lost,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This exceptional work – and there is more to come – has been made possible by the department’s steadfast commitment to the pursuit of the proceeds of fraud through civil forfeiture.”
“This office continues its efforts to seek justice for victims of history’s largest Ponzi scheme,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Today’s additional payments of more than $488 million by this office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represent the sixth in a series of distributions that will leave victims with compensation for more than 80 percent of their losses. That is an extraordinary level of recovery for a Ponzi scheme – but our work is not yet finished, and the office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues.”
For decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.
On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings. The Department of Justice also acknowledges the sacrifice of numerous individuals during this period of quarantine due to COVID-19 to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
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.
Jason Autry Federally Indicted for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Jason Wayne Autry, 46, of Holladay, Tennessee, has been federally indicted for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the return of the indictment today.
According to allegations contained in a previously filed federal criminal complaint, on December 3, 2020, a Benton County Sheriff’s deputy encountered Autry, who was known to be a convicted felon and thus prohibited from possessing firearms under state and federal law. The deputy initially observed a male subject, later identified as Autry, lying down in a field. Autry was searched and no weapons were found on his person. He then left the scene on foot.
After Autry walked away, the deputy noticed a Marlin 30/30 rifle where Autry had been lying on the ground in the field. The deputy secured the firearm, returned to his patrol vehicle, and followed Autry, who was located walking down the driveway to his residence in Holladay, Tennessee. The deputy ordered Autry to stop, and Autry complied. The deputy then asked Autry about the rifle, and Autry stated he was attempting to shoot a deer with the gun, and that he hid in the field when he observed the deputy’s patrol car.
Autry has several prior felony convictions, including Facilitation of Especially Aggravated Kidnapping and Solicitation of First Degree Murder, which arose out of the abduction and murder of Holly Bobo in Decatur County, Tennessee in April 2011. Autry also has prior state convictions for Aggravated Burglary, Burglary, Theft over $10,000, and Manufacturing a Schedule II Controlled Substance. Autry also has a prior federal conviction for being a convicted felon in possession of a firearm, wherein he received a sentence of 100 months imprisonment. Autry is still under supervision in his prior federal case, and faces imprisonment in that case due to his illegal possession of a firearm on December 3, 2020.
If convicted, Autry faces up to ten years in federal prison followed by three years supervised release and a fine of $250,000. If he is found to qualify as an armed career criminal under federal law, he faces a mandatory minimum sentence of 15 years and up to life imprisonment. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms are always a public safety concern, but especially so when there is a known history of violent crime convictions. We commend the outstanding investigative work of our federal and local law enforcement partners in quickly responding to remove the firearm from this offender and safely bring him into custody."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Benton County Sheriff’s Office investigated this case.
The charges and allegations contained in the federal complaint and indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Josh Morrow is prosecuting this case on behalf of the government.
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Individual Pleads Guilty to Participating in Internet-of-Things Cyberattack in 2016Read the Press Release
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, December 9, 2020
An individual, formerly a juvenile, pleaded guilty to committing acts of federal juvenile delinquency in relation to a cyberattack that caused massive disruption to the Internet in October 2016.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Murray of the District of New Hampshire, and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Division made the announcement.
According to the plea agreement, the individual conspired to commit computer fraud and abuse by operating a botnet and by intentionally damaging a computer. Because the individual was a juvenile at the time of the commission of the offense, the individual’s identity is being withheld pursuant to the Juvenile Delinquency Act, see 18 U.S.C. § 5031, et seq. The guilty plea took place in a closed proceeding before Chief Judge Landya B. McCafferty in the District of New Hampshire. Judge McCafferty scheduled the individual’s sentencing for Jan. 7, 2021.
According to unsealed court documents, from approximately 2015 until November of 2016, the individual conspired with others to create and operate one or more online botnets to launch cyberattacks against victim computers (specifically targeting those belonging to online gamers or gaming platforms) in order to take those computers offline altogether or otherwise significantly impair their functionality. These attacks are often referred to as “Distributed Denial of Service” or “DDoS” attacks.
In general, a DDoS attack is a type of cyberattack in which a malicious actor directs a large volume of Internet traffic to a victim computer or network, overwhelming it and rendering it unable to function as intended. Successful DDoS attacks can take individual computer users, websites, or entire computer networks offline altogether or otherwise slow their performance. DDoS attacks are often conducted through the use of botnets (short for “robot networks”), that is, large numbers of compromised computers under the control of an individual or group of actors.
According to court documents, in September and October of 2016, the individual and others created a botnet, which was a variant of the so-called “Mirai” botnet, for use in launching DDoS attacks. Mirai infected “Internet-of-Things” devices, such as Internet-connected video cameras and recorders, and turned them into bots to be used to launch DDoS attacks.
According to court documents, on Oct. 21, 2016, the individual and others used the botnet they created to launch several DDoS attacks in an effort to take the Sony PlayStation Network’s gaming platform offline for a sustained period. The DDoS attacks impacted a domain name resolver, New Hampshire-based Dyn, Inc., which caused websites, including those pertaining to Sony, Twitter, Amazon, PayPal, Tumblr, Netflix, and Southern New Hampshire University (SNHU), to become either completely inaccessible, or accessible only intermittently for several hours that day. As a result of the individual’s DDoS attacks, Dyn, Sony, SNHU, and other entities and individuals suffered losses including lost advertising revenues and remediation costs. Sony estimated that its resultant losses included approximately $2.7 million in net revenue.
This case was investigated by the FBI with assistance from the National Crime Agency and Police Service of Northern Ireland. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Georgiana MacDonald of the District of New Hampshire. Former Assistant U.S. Attorney Arnold H. Huftalen provided substantial assistance.
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.
Importers to Pay More Than $860,000 to Resolve False Claims Act Allegations Concerning Unpaid Customs Duties on Chinese EarringsRead the Press Release
BOSTON – Four jewelry importers have agreed to pay more than $860,000 to resolve allegations that they failed to pay customs duties on sterling silver earring imports from China.
The importers, Roman & Sunstone LLC; ISTAR Jewelry LLC; Ansun Inc.; and Starkes Gems Inc., are affiliated companies headquartered in New Jersey, and will pay $866,068 to resolve False Claims Act allegations.
Under customs laws, duties on sterling silver earrings imported from China vary based on the value of the jewelry - the more expensive the earrings, the lower the duty rate. An earring’s value is calculated per earring (rather than each pair of earrings or collection of earrings).
Between 2015 and 2018, Roman & Sunstone and its affiliates imported display cards of sterling silver earrings from China for resale at department stores. The display cards often included multiple pairs of earrings. The government contends that Roman & Sunstone and its affiliates improperly concealed the number and value of these imports from U.S. Customs and Border Protection by describing on import records the number of display cards imported, rather than the number of individual earrings. These importers’ misstatements increased the declared value of the imports, allowing them to pay a lower duty than they should have based on the value of each earring. The government contends that Roman & Sunstone and its affiliates knew they were underpaying duties but continued to use misleading import records in order to avoid their obligations to pay customs duties.
The U.S. Attorney’s Office recently reached a $402,637 settlement with a former importer, TSI Accessories Group, Inc., concerning related conduct.
This civil settlement arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s settlement, the whistleblower will receive approximately $152,000 of the recovery.
United States Attorney Andrew E. Lelling; Michael S. Denning, Director, Boston Field Office, U.S. Customs and Border Protection; and David Magdycz, Acting Special Agent in Charge, Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Brian M. LaMacchia of Lelling’s Affirmative Civil Enforcement Unit handled the matter.
Heber Springs Couple Plead Guilty to Disturbing Archaeological Site in Buffalo National RiverRead the Press Release
Fort Smith, Arkansas – Two people pleaded guilty in federal court today to unlawfully excavating and damaging archaeological resources in Buffalo National River, a National Park under the control of the U.S. Department of the Interior, announced Western District of Arkansas First Assistant U.S. Attorney David Clay Fowlkes.
In U.S. District Court hearings held this afternoon via video teleconference, Michael L. Walters, age 64, of Heber Springs, Ark., and Yvonne Jenay Walters, age 55, formerly of Heber Springs, each pleaded guilty to a criminal information charging violation of the Archaeological Resources Protection Act. Previously, a federal grand jury indicted both defendants for violation of the Archaeological Resources Protection Act, damage to U.S. property and theft of U.S. property. United States Magistrate Judge Mark E. Ford presided over the hearings and accepted the guilty pleas.
According to the plea agreement filed in this case, on Aug. 29, 2015, U.S. Park Rangers patrolling the Grinders Ferry area of the Buffalo National River observed Yvonne Walters taking rocks and minerals from a gravel bar. Rangers then found Michael Walters digging nearby, in what park records list as a prehistoric archaeological site. The couple admitted they had come to the park to search for rocks and artifacts, including Native American arrowheads. Further investigation revealed the couple had been to the same area previously to dig for rocks and artifacts. Both were involved in searching for, locating, excavating, trading, and selling artifacts, and actively engaged in social media group communities with the same interests.
Michael and Yvonne Walters’ sentences will be determined by the court at a later date, following the U.S. Probation Office’s completion of a presentence investigation. Based on their guilty pleas, the maximum penalties for each defendant include imprisonment for up to one year and a fine of up to $100,000. The defendants also agreed to forfeit artifacts, tools and equipment, and to pay $4,111 restitution to the National Park Service.
The case was investigated by special agents of the National Park Service, Investigative Services Branch, and U.S. Park Rangers at Buffalo National River. Assistant United States Attorney Steven Mohlhenrich is prosecuting the case for the United States.
The National Park Service reminds the public that public lands are protected by federal laws and regulations. In 1979, Congress enacted the Archaeological Resources Protection Act to protect an irreplaceable part of the Nation’s heritage. The act prohibits excavating, removing, damaging, or otherwise altering or defacing any archaeological resource located on public or Indian lands, or attempting to do so.
Health care company owner to pay $1 million to settle False Claims Act caseRead the Press Release
HOUSTON - The former owner of Providence Home Health and Providence Hospice has agreed to pay $1.05 million to settle claims she knowingly and willfully paid improper kickbacks for referrals of Medicare patients to her businesses, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Miranda Bennett of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG).
Teresita Lumanas Alquero owned both entities at the time of the alleged violations but has since sold them.
“We cannot tolerate kickbacks, especially those designed to affect our most vulnerable beneficiaries,” said Bennett. “We will continue to vigilantly investigate such conduct to ensure patients receive care from providers without improper motivations.”
Alquero had employed two individuals who filed a whistleblower lawsuit in June 2017 alleging various instances of fraud. Alquero allegedly paid kickbacks to a medical director for Providence. The medical directorship payments exceeded fair market value and were paid over a two-year period to induce him to refer Medicare patients to Providence for home health care and hospice services.
Medicare rules and guidelines prohibit such payments for referrals.
Alquero also allegedly submitted false claims for payment to Medicare identifying a specific attending physician from April 1, 2016, through Sept. 30, 2016. That physician was actually incarcerated during that time. His medical license was suspended April 12, 2016.
Under the False Claims Act, a private party can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relators will share $168,000 as a result of the settlement.
As part of the settlement, Alquero also agreed to a five-year period of exclusion from participation from Medicare, Medicaid and all other federal health care programs.
DHHS-OIG conducted the investigation along with the U.S. Attorney’s Office. Assistant U.S. Attorney Jill Venezia handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Haywood County Man Sentenced to over 5 Years in Federal Prison for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Donnie Ray King, 41, of Whiteville, Tennessee, has been sentenced to 70 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney, announced the sentence today.
According to information presented in court, on December 5, 2018, a Haywood Co. Sheriff’s Deputy responded to a residence in Whiteville, Tennessee to follow up on a stolen car report. Earlier that day, King’s mother reported to law enforcement that King had stolen her vehicle and her phone. When law enforcement arrived at King’s mother’s home, she said that King had returned her car and left walking on Hillville Road. The deputy later observed a male standing on the property of an old school nearby who identified himself as "Donnie King." King advised that he had a gun in his boot and was immediately placed into custody. The deputy then recovered an unloaded Ruger, Model SR9, 9mm pistol in King’s left boot, and a magazine containing 15 rounds of ammunition for the Ruger in his right boot.
King is a convicted felon, having been previously convicted of two counts of statutory rape in Crockett County in 2000, aggravated assault in Shelby County in 2007, Violation of the Sex Offender Registry in Crockett County in 2008, and manufacturing methamphetamine in Carroll County in 2012. As a result of his felony convictions, King is prohibited by federal law from possessing firearms and ammunition.
On December 8, 2020, Chief U.S. District Judge S. Thomas Anderson sentenced King to 70 months in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "As a multiple prior convicted felon, King has already disrespected the law and shown a manifest disregard for the rights of others. As a result, his possession of firearm and ammunition continues to threaten the security of his fellow citizens. This sentence accomplishes what his prior state sentences and probation could not – just punishment for his recidivism and incapacitation that will protect public safety."
The Haywood County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Hampton Man Sentenced to 84 Months for Distribution of Child PornographyRead the Press Release
CONCORD - John William McMahon, 30, of Hampton, was sentenced on Wednesday to 84 months in federal prison for distribution of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing undercover investigation, a member of the New Hampshire Internet Crimes Against Children (ICAC) Task Force accessed a peer-to-peer network to identify users who may be sharing images of child pornography. On various dates between December 14, 2017, and January 2, 2018, law enforcement officers conducted single-source downloads of child pornography from a certain I.P. address. Agents identified the address used to distribute child pornography images during the undercover sessions.
Through their investigation, agents identified McMahon as the person responsible for distributing child pornography images during the undercover sessions. In a consensual interview, the defendant admitted accessing wireless internet belonging to a neighboring apartment, and he further admitted downloading child pornography. Investigators later obtained a search warrant for McMahon’s laptop and other electronic media recovered from him. Subsequent forensic examination revealed approximately 1,410 images of suspected child pornography on McMahon’s laptop. The child pornography images and videos were sent to the National Center for Mission and Exploited Children, which confirmed that 500 still images and 6 videos were of identified child victims.
“Crimes involving child pornography and child exploitation cause great harm to their very vulnerable young victims,” said U.S. Attorney Murray. “In order to protect innocent children, we will continue to work closely with our law enforcement partners to identify and prosecute those who distribute child pornography.”
“The distribution of child pornography is a serious crime.” said David Magdycz, acting Special Agent In Charge, Homeland Security Investigations (HSI), Boston. “HSI works daily with the New Hampshire Internet Crimes Against Children Task Force and the U.S. Attorney’s Office for New Hampshire to fight the spread of child pornography and to bring justice to the victims of these crimes.”
“The New Hampshire Internet Crimes Against Children Task Force remains committed to pursuing those who victimize our children online,” said Lieutenant John Peracchi, Commander of the NH ICAC. “There is no safe haven on the internet for those who look to exploit minors and we will continue to hunt them down.”
This matter was investigated by Homeland Security Investigations, Boston and the New Hampshire ICAC Task Force. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jay Jay William Hedrick, of Petersburg West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Hedrick, age 44, pled guilty to one count of “Unlawful Possession of a Firearm.” Hedrick, a person prohibited from having a firearm because of prior felony convictions, admitted to having a .40 caliber pistol, a 9mm pistol, and a .17 caliber rifle in June 2020 in Grant County.
Hedrick faces up to 10 years of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Grant County Sheriff’s Office investigated.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Four Men Indicted on Federal Murder Charges for Death of Philadelphia Police Sergeant James O’ConnorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that an Indictment was unsealed today charging four defendants with the murder of Philadelphia Police Corporal James “Jimmy” O’Connor, posthumously promoted to Sergeant, and related drug trafficking and firearms offenses. The defendants charged in the Indictment are Hassan Elliott, a/k/a “Haz,” age 22; Bilal Mitchell, a/k/a “Omar,” a/k/a “Walkdown,” age 20; Khalif Sears, a/k/a “Leaf,” a/k/a “Lil Leaf,” age 19; and Sherman Easterling, a/k/a “Foot,” a/k/a “Foot on da gas,” age 25, all of Philadelphia, PA.
During a news conference outside the federal courthouse, U.S. Attorney McSwain discussed the charges in the seven-count Indictment. All four defendants are charged with: murder in the course of using or carrying a firearm during and in relation to a drug trafficking crime; using or carrying a firearm during and in relation to a drug trafficking crime; possession of a firearm in furtherance of drug trafficking; conspiracy to distribute “crack” cocaine and marijuana; possession with the intent to distribute “crack” cocaine and marijuana; and maintaining a drug involved premises. Additionally, the Indictment charges defendants Elliott and Easterling with possession of a firearm by a felon.
The Indictment alleges that the defendants are members of a violent drug trafficking group known as “1700 Scattergood,” which operates in the Frankford section of Northeast Philadelphia. The defendants allegedly sold narcotics from a stash house they maintained where they kept an arsenal of weaponry, drugs and drug paraphernalia. On March 13, 2020, the defendants were inside the stash house property in the 1600 block of Bridge Street when Sergeant O’Connor and other members of the Philadelphia Police Department’s SWAT team arrived with arrest and search warrants. As Sergeant O’Connor and his fellow officers ascended the staircase to the second floor of the residence and announced their presence multiple times, Elliott allegedly fired a semi-automatic assault rifle 16 times, striking and killing Sergeant O’Connor.
A subsequent search of the property revealed the scope of the defendants’ alleged drug trafficking conspiracy: ten firearms, bulk and packaged “crack” cocaine, bulk and packaged marijuana, and items commonly used to package and sell narcotics, such as a scale and packaging materials.
“The murder of a police officer is one of the most agonizing things that a community can experience, and my heart goes out to the O’Connor family. Sadly, this year has already seen more shootings in Philadelphia than in any other year – ever,” said U.S. Attorney McSwain. “In order to address this epidemic of violence in our city, we must have the courage to tell the truth. The truth is that, as a practical matter, District Attorney Larry Krasner’s pro-violent defendant policies are what kept Hassan Elliott on the street; they put this horrible chain of events in motion; and in that sense, they are every bit as responsible for Sergeant O’Connor’s alleged murder as the defendants. While we cannot bring Sergeant O’Connor back, we can honor him by seeking justice and doing all that we can to prevent this type of tragedy from occurring again.”
“This indictment shows ATF’s commitment to working with our local, state and federal partners to help diminish the violent crime that continues to plague Philadelphia,” said Matthew Varisco, Special Agent in charge of ATF Philadelphia’s Filed Division. “I commend the hard work of the investigators and detectives of the Philadelphia Police Department that made these charges possible and that hopefully will prevent another potential crime or death. I also thank the U.S. Attorney's Office for their guidance and work prosecuting this 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.
If convicted, the defendants face a maximum possible penalty of lifetime imprisonment. However, contained within the Indictment is a Notice of Special Findings for defendant Elliott with regard to the charge of murder while using or carrying a firearm. This Notice makes Elliott eligible for the death penalty.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Christopher Diviny and Special Assistant United States Attorneys Ashley Martin and Lauren Stram.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former correctional officer heads to prison for briberyRead the Press Release
McALLEN, Texas - A 33-year-old man from Progreso has been ordered to prison for smuggling contraband items into the East Hidalgo Detention Center, announced U.S. Attorney Ryan K. Patrick.
Jhaziel Loredo pleaded guilty March 4.
Today, District Judge Micaela Alvarez sentenced Loredo to 28 months in federal prison to be immediately followed by three years of supervised release.
From October 2018 to August 2019, Loredo used his official position as a correctional officer at the East Hidalgo Detention Center to bring contraband into the facility. Some of the items included controlled substances. He then distributed them to federal inmates.
In exchange, Loredo accepted bribe payments from family members of the multiple inmates totaling approximately $1,900.
Loredo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Marshals Service, Department of Justice - Office of Inspector General, and FBI conducted the investigation. Assistant U.S. Attorneys Amy L. Greenbaum and Patricia Cook Profit prosecuted the case.
Former Owner of Health Care Staffing Company Indicted for Wage FixingRead the Press Release
Note: The defendant in this case, Neeraj Jindal, was acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury returned an indictment charging Neeraj Jindal, the former owner of a therapist staffing company, for participating in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area, the Department of Justice announced today. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
According to the two-count indictment filed in the U.S. District Court in Sherman, Texas, Jindal and his co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants, and Jindal’s company paid lower rates, from in or about March 2017 and continuing through in or about August 2017. Jindal is charged with participating in the conspiracy when he was the owner of a Texas-based therapist staffing company that provided in-home physical therapy services. Jindal is also charged with obstruction of proceedings before the Federal Trade Commission. According to the indictment, Jindal made false and misleading statements and withheld and concealed information during the Federal Trade Commission’s investigation to determine whether Jindal’s company or other therapist staffing companies violated Section 5 of the Federal Trade Commission Act.
“The charges announced today are an important step in rooting out and deterring employer collusion that cheats American workers — especially health care workers — of free market opportunities and compensation,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Employers who conspire to fix the wages of workers or restrict their mobility by allocating labor markets will be prosecuted to the fullest extent of the law. The division will also continue to prosecute those who undermine the integrity of federal investigations, including proceedings before other federal agencies.”
“The integrity of the market is the foundation of our free-enterprise system,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas. “Wage-fixing agreements exploit workers by pushing down wages and eliminating competition. The Eastern District of Texas is proud to partner with the Antitrust Division in protecting the marketplace and the opportunities for American workers.”
“The FBI is committed to rooting out anti-competitive activity and corruption in our markets,” said Assistant Director Calvin Shivers of the Criminal Investigative Division. “In this case, Neeraj Jindal attempted to cheat the system and, in doing so, hurt hard-working Americans providing medical care and relief. Our International Corruption team worked creatively and diligently to investigate this crime. We are prepared to take our findings and work with our partners at the Department of Justice to ensure justice is served.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s Washington Criminal I and II Sections and the International Corruption Unit of the FBI.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Former Mental Health Community Residential Facility Administrator Arrested and Former Aide for Disabled Residents Pleads Guilty in Two Separate Case Involving Financial Exploitation of Elderly and Vulnerable AdultsRead the Press Release
WASHINGTON – Latonja Dashawn Carrera (a.k.a. Latonja Dashawn Martin), 46, was arrested December 8, 2020 and charged via criminal complaint with felony Financial Exploitation of an Elderly Person, in violation of D.C. Code § 22-933.01. On the same day, Kim Renee West, 56, pled guilty pursuant to a Deferred Sentencing Agreement to one count of misdemeanor Financial Exploitation of a Vulnerable Adult, in violation of the same code provision.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Karl Racine, Attorney General for the District of Columbia; and Daniel W. Lucas, Inspector General for the District of Columbia.
According to Court records, Carrera was the Administrator for a Mental Health Community Residential Facility licensed by the District of Columbia Department of Health. In January 2019, Carrera used the account of one of the facility residents – a 73 year-old Veteran – to pay her own personal bills. Carrera used $1,524.36 from the Veteran, whose sole sources of income were benefits from the Social Security Administration and Veterans Affairs.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
West pled guilty to financially exploiting a 61-year-old man with profound intellectual disability by taking his debit card from his residence, where she worked, and using the card to make approximately $235.00 worth of purchases for her own benefit. As part of a Deferred Sentencing Agreement, West agreed to complete community service and pay restitution to the victim. If she completes these conditions within six months, the case will be dismissed.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the Office of the Attorney General to prosecute cases of this kind.
In announcing the arrest and plea, Acting U.S. Attorney Sherwin, Attorney General Racine, and Inspector General Lucas commended the work of those who investigated the cases from the District of Columbia’s Office of the Attorney General and Office of the Inspector General. They also cited the efforts of Special Assistant United States Attorney Jennifer C. Mika, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims, who investigated and prosecuted both cases for the U.S. Attorney’s Office for the District of Columbia with support from Paralegal Specialist Chad D. Byron.
Former CFO for Richardson Enterprises, Ltd., Sentenced for Embezzling Close to $16 MillionRead the Press Release
A federal judge in Austin sentenced 51-year-old Tamra Maurene Villarreal (aka Tamra Creighton Villarreal), the former Chief Financial Officer (CFO) for Richardson Enterprises, Ltd. headquartered in Austin, to 63 months imprisonment for her role in a close to $16 million embezzlement scheme, announced U.S. Attorney Gregg N. Sofer; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office.
At sentencing yesterday afternoon, U.S. District Judge Robert Pitman also ordered the Lakeway resident to pay $15,941,452.87 in restitution to the Richardson family and $4,243,649 in restitution to the IRS. Judge Pitman further ordered Villarreal to be placed on supervised release for a period of three years after completing her prison term.
Richardson Enterprises (Richardson) has automobile dealerships in Arizona, New Mexico and Texas. As CFO, Villarreal compiled financial information and provided it to outside accountants. She also had signing authority on Richardson bank accounts.
On August 18, 2020, Villarreal pleaded guilty to a two-count Information charging her with wire fraud and making and subscribing a false income tax return. By pleading guilty, Villarreal admitted that from 2009 to January 2018, she embezzled the funds from Richardson accounts and used that money for personal enrichment. Specifically, Villarreal diverted monies from Richardson bank accounts to accounts belonging to her and her husband. She used those stolen funds along with a corporate business credit card to pay for numerous personal expenditures including luxury items, hotel stays and restaurant tabs without the knowledge or permission of the Richardson family. Villarreal admitted that she used her access and control of Richardson’s books and records to conceal and disguise her unauthorized transactions.
In April 2018, law enforcement executed a search warrant on her Lakeway residence. Recovered during the search were many valuables purchased during the scheme, including rare coins, gold bars, expensive watches, lavish jewelry and multiple firearms.
Villarreal also admitted that she subscribed a false 2013 federal income tax return wherein she and her spouse claimed $433,747 in earnings when in truth their income that year far exceeded that amount when accounting for the proceeds from her embezzlement scheme.
Villarreal’s former husband, 48-year-old Robert Scott Villarreal, pleaded guilty to federal charges in connection with this investigation. He is scheduled to be sentenced on January 21, 2021, in Austin before U.S. District Judge Pitman. Robert Villarreal, who is out on bond, faces up to 10 years in federal prison for money laundering, up to 20 years in federal prison for possession with intent to distribute cocaine and up to three years in federal prison for failure to file a federal income tax return.
The FBI and IRS-CI investigated this case. Assistant United States Attorneys Michelle Fernald and Robert Almonte prosecuted this case on behalf of the government.
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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.
Former Bank President Sentenced for EmbezzlementRead the Press Release
LEXINGTON, Ky. – A former bank president, Thomas Hinkebein, 59, was sentenced to 12 months in federal prison, by Chief United States District Judge Danny C. Reeves, after previously pleading guilty to one count of embezzlement by a bank officer.
According to his plea agreement, Hinkebein admitted that, between January 12, 2016 and August 13, 2018, while he was the President of Whitaker Bank, he willfully misapplied assets of the bank. Specifically, he admitted stealing golf carts and other property of Andover Country Club, an asset owned by Whitaker Bank, and seeking reimbursement from Whitaker Bank for a variety of personal expenses, including cell phone plans, gym memberships, fuel purchases, vehicle repairs, technology purchases for his family members, shipping expenses, and landscaping at his home. To hide the personal nature of these expenses, the Defendant falsely reported many of the expenses to Whitaker Bank to make them appear to be legitimate work expenses.
Hinkebein pleaded guilty in September 2020.
In addition to the prison sentenced, Hinkebein will be required to pay a $5,500 fine and $50,739.56 in restitution owed. Under federal law, Hinkebein must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John Crawford, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region; and Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, jointly announced the sentencing.
The investigation was conducted by the FDIC and the Federal Reserve. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
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Former Avondale Woman Sentenced to Three Years of Probation for Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, a former resident of Avondale, Louisiana, who now lives in Mississippi, was sentenced on December 9, 2020 to three (3) years of probation for conspiracy to commit mail fraud by United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance.
According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning. The stolen/diverted mail included items such as a paintball gun, a drone, two Dyson vacuum cleaners, women’s shoes, two Apple Air Mac books, and a smart phone.
In addition to probation, JOHNSON was ordered to pay a $100 mandatory assessment.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Florida Tire Importer Pleads Guilty in Tax ConspiracyRead the Press Release
A Miami, Florida, tire importer pleaded guilty today to conspiracy to defraud the government, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida.
According to court documents and statements made in court, Marco Parra operated Road Tire Plus Corp. (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, Parra conspired with others in the tire industry to evade paying federal excise taxes on truck tires marked for highway use. Tire importers are responsible for excise taxes when their truck tires are sold to tire retailers, who then resell the tires domestically. Tire importers typically pass on the cost of the excise tax to tire retailers and collect the excise taxes from them. But, if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
For some retailers, Parra sold truck tires subject to excise taxes. He collected the excise taxes that were due, but did not remit those taxes to the IRS and did not file tax returns reporting the tire sales as he was required. For others, Parra never collected the federal excise taxes due on the tire sales. Instead, Parra obtained false bills of lading claiming that the tires were exported, so that Parra could obtain an excise tax credit even though he knew the tires were not exported. As a result of Parra’s failure to timely file excise tax returns for 2014, 2015, and 2016, he caused an excise tax loss of approximately $887,112. Parra has since paid over $700,000 to the IRS.
U.S. District Judge Kathleen M. Williams scheduled sentencing for Feb. 18, 2021. Parra faces a statutory maximum of five years, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Orshan commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Francesca Bartolomey and Assistant Chief Gregory Tortella, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Jury Finds Guilty Former U.S. Marine for Illegal Exportation of Firearms and Controlled EquipmentRead the Press Release
RALEIGH, N.C. – Today in federal court, Jacques Yves Sebastien Duroseau, age 34, a former U.S. Marine born in Haiti and a naturalized citizen of the United States, residing in Onslow County, was found guilty following a three-day trial before United States District Judge James C. Dever III. The jury found the defendant guilty of conspiracy to illegally export and smuggle firearms and controlled equipment from the United States to Haiti, as well as transporting firearms without a license to the Haitian Army. Additionally, the jury decided that the firearms and equipment should be forfeited.
At trial, the evidence showed that Duroseau, at the time an active duty U.S. Marine with the rank of sergeant, and a co-conspirator, impersonated high ranking military officers and pretended to be on military business in order to facilitate the illegal transportation of eight firearms, including a Ruger model Precision Rifle 300WIN MAG and a Spike’s Tactical model ST15, as well as copious ammunition, riflescopes, and body armor, via commercial aircraft to Haiti. The evidence further showed that Duroseau’s purpose was to train the Haitian Army with the firearms and equipment in order to engage in foreign armed conflict.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, stated, “This office remains dedicated to ensuring the safety of our citizens here in the Eastern District, and likewise, citizens residing elsewhere – whether that be within or without the United States. The Defendant’s conduct here violated our firearms laws, particularly in relation to export and licensing, but it additionally posed concerns about our citizens unliterally acting in relation to the government of a foreign country. Such conduct will not be tolerated.”
“Duroseau, who previously held a position of trust within the Marine Corps, betrayed his service and deserves to be held accountable for his illicit attempt to smuggle weapons from the United States to Haiti for the purpose of training the Haitian military,” said NCIS Special Agent in Charge of the Carolinas Field Office Sean Devinny. “NCIS extends its gratitude to Homeland Security Investigations for their collaboration and partnership during this investigation.”
“Federal firearm laws exist to ensure weapons crossing international borders are properly accounted for to preserve public safety and to keep them out of the hands of dangerous criminals,” said Special Agent in Charge of Homeland Security Investigations Charlotte Ronnie Martinez. “This case shows the significant consequences awaiting individuals who attempt to illegally smuggle weapons and ammunition across U.S. borders as well as HSI’s commitment to holding accountable persons who violate federal law.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation of this case was conducted by agents of the Naval Criminal Investigative Service and Homeland Security Investigation. Additional assistance was provided by the Department of State’s Diplomatic Security Service and Directorate of Trade Controls, the Department of Commerce’s Bureau of Industry Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Marine Corps.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00003-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.
Federal Jury Convicts Illinois Man for Bombing the Dar al-Farooq Islamic CenterRead the Press Release
Yesterday, a federal jury returned a guilty verdict against Micheal Hari, 49, for his role in the bombing of the Dar al-Farooq Islamic Center in Bloomington, Minnesota, on Aug. 5, 2017.
Following a three week trial, the jury convicted Hari on all five counts of the indictment, including intentionally defacing, damaging, and destroying any religious real property because of the religious character of that property; intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; conspiracy to commit federal felonies by means of fire and explosives; carrying and using a destructive device during and in relation to crimes of violence; and possession of an unregistered destructive device. Hari faces a mandatory minimum sentence of 30 years in prison.
“I commend the outstanding efforts of the trial team from the U.S. Attorney’s Office and the FBI, which tried this case with support from the Civil Rights Division. The jury’s verdict confirms the fundamental principle that every person in this country has the right to exercise religion free from violence and fear,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We are grateful for our law enforcement partners on this case and are pleased to see justice being carried out.”
“Michael Hari’s goal in bombing the Dar al-Farooq Islamic Center was to spread hatred, instill fear, and threaten the constitutionally protected right to freedom of religion. This act of violence, driven by hatred and ignorance, shook our community,” said U.S. Attorney Erica H. MacDonald for the Distirct of Minnesota. “This guilty verdict represents a condemnation of that hatred and upholds our fundamental right to live and worship free from the threat of violence and discrimination. I am sincerely grateful to the Assistant U.S. Attorneys and the FBI special agents who, over several years, have remained steadfast in their pursuit of justice.”
As proven at trial, during the summer of 2017, Hari established in Clarence, Illinois, a terrorist militia group called “The White Rabbits.” Hari recruited several men, including co-defendants Michael McWhorter and Joe Morris, to join the militia group, which he outfitted with tactical vests and assault rifles. On Aug. 4 and 5, 2017, Hari, McWhorter, and Morris drove in a rented pickup truck from Clarence to Bloomington, Minnesota, with the mission of bombing the Dar al-Farooq (DAF) Islamic Center. Hari targeted DAF in an attempt to scare Muslims into believing they are not welcome in the United States and should leave the country.
As proven at trial, Hari, McWhorter and Morris arrived at DAF on Aug. 5, 2017, at approximately 5:00 a.m. Morris used a sledgehammer to break a window, which was part of DAF’s Imam’s office, and threw a plastic container containing diesel fuel and gasoline mixture into the building. McWhorter then lit the fuse on a 10-pound black powder pipe bomb that Hari had built and threw it through the broken window. McWhorter and Morris ran back to the truck, where Hari was waiting in the driver’s seat. The three men sped away from the building and drove back to Clarence. When the pipe bomb exploded, it ignited the mixture in the plastic container, causing extensive fire and smoke damage to the Imam’s office, in addition to water damage caused by the building’s sprinkler system. At the time of the bombing, several congregants were gathered in the mosque for morning prayers.
On Jan. 24, 2019, McWhorter and Morris pleaded guilty to their roles in the bombing.
This case is the result of an investigation conducted by the FBI.
U.S. Attorney MacDonald thanks Assistant U.S. Attorneys John F. Docherty, Allison Ethen and Timothy C. Rank, who tried this case with assistance from Lead Paralegal Specialist Lynette Simser, Witness Specialist Jeffery Knopps, former Assistant U.S. Attorney Julie E. Allyn, Trial Attorney Tim Visser from the Civil Rights Division, and the Special Agents of the FBI’s Minneapolis Field Office. Their hard work and commitment to the pursuit of justice made this result possible.
Federal Inmate Sentenced for Attempting to Obtain Contraband in PrisonRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Santiago Delfierro Anguiano, a/k/a “Shag,” age 50, a federal inmate, was sentenced today by United States District Judge Dee D. Drell for attempting to obtain contraband in prison. Judge Drell sentenced Anguiano to 120 months (10 years) in prison followed by 3 years of supervised release. This sentence will run consecutive to the 30-month federal sentence he is currently serving for Illegal Re-entry of a Removed Alien.
Anguiano pled guilty to the charge on January 16, 2020. Evidence introduced at the hearing revealed that in March 2016 while serving as a federal inmate at the U.S. Penitentiary in Pollock, Louisiana, Anguiano conspired with others to attempt to obtain methamphetamine in FCC Pollock. Anguiano knew that the methamphetamine was an illegal substance and that he was prohibited from having it. The methamphetamine was seized in a vehicle driven by a co-defendant in this case during a traffic stop in Woodworth, Louisiana, on March 31, 2016 before making its way into the prison. The seized methamphetamine was tested at the DEA South Central Laboratory and found to be 97% pure.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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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.
Federal Grand Jury Indicts Rochester Music Teacher on 74 Counts, Including 61 Counts of Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 74-count indictment charging Philip M. Close, 42, of Rochester, NY, with 61 counts of production of child pornography, and 13 counts of possession of material containing child pornography involving prepubescent minors. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that the defendant owns the Close School of Music on West Ridge Road in the Town of Parma, which offers private music lessons to children and adults of all ages. Close has been teaching music lessons throughout New York State for over 20 years.
According to the indictment and a previously filed complaint, on December 5, 2019, the Monroe County Sheriff’s Office received information from a mother with two children taking lessons at the Close School of Music, that a video camera was attached to the toilet in the bathroom. The parent indicated that earlier that day, while waiting for her child to finish her music lesson, she used the bathroom. While in the bathroom, the mother observed a small black camera lens facing towards the toilet seat, and a small metallic-looking piece hanging from a wire off of the toilet. The mother grabbed and pulled the wires and found a camera-device and wires taped to the bottom of the toilet with black electrical tape. After finding this camera device, she removed it from the bottom of the toilet, and proceeded to contact 911.
A Monroe County Sheriff’s deputy reported to the Close School of Music and spoke with the defendant who acknowledged that the device was his. Close was taken into custody.
On December 6, 2019, a search warrant was executed at the music school and multiple digital computing devices were seized, including a laptop computer. A preliminary review of the laptop located three videos of the child whose parent alerted the Sheriff’s Department. One of the videos included the child using the toilet. Another video shows the child laying down on a piano bench and Close’s leg. The defendant is seen moving the child’s shirt up to expose her stomach and touching her stomach. Close then begins to touch other parts of the child’s body. The child is seen sliding under the piano in what appears to be an attempt to prevent the defendant from touching any further.
Further investigation revealed that the defendant produced videos containing child pornography including a total of 61 minor victims.
Close will be arraigned on December 14, 2020, at 9:30 a.m. before U.S. Magistrate Judge Mark W. Pedersen.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fashion District Wholesaler and 2 Men Linked to Company Indicted in Schemes to Avoid Tariffs, Launder Drug Money and Avoid TaxesRead the Press Release
LOS ANGELES – A federal grand jury has returned a 35-count indictment alleging that a Fashion District outfit was at the center of two schemes, one that avoided the payment of more than $10 million in customs duties on imported clothing, and a second “Black Market Peso Exchange” scheme in which the company laundered narcotics proceeds and failed to report on tax returns over $17 million derived from cash transactions.
The schemes are outlined in a 49-page indictment, which was filed late Wednesday and is the latest case resulting from an operation in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses. During one of those searches at a downtown condominium linked to the defendants in this case, authorities seized more than $38.3 million in cash.
The defendants named in the indictment are:
- C’est Toi Jeans, Inc. (CTJ), an importer of apparel from countries such as China, and exporter of clothing to customers in Mexico, Central America and South America;
- Si Oh Rhew, 67, of La Cañada Flintridge, the president of CTJ and a 75 percent owner of the company; and
- Lance Rhew, who is Si Oh Rhew’s son, 33, of downtown Los Angeles, a CTJ corporate officer and the owner of another company called GLLR, Inc. that did business as CTJ.
The indictment contains charges of conspiracy; entry of goods falsely classified; entry of goods by means of false statements; passing false and fraudulent papers through customhouse; international promotional money laundering; failure to file reports of $10,000 currency transactions; and aiding, assisting, and procuring the filing of a false tax return.
The first scheme outlined in the indictment allegedly involves the avoidance of customs duties and tariffs by purchasing garments from overseas manufacturers, including from China, but then submitting false information to U.S. Customs and Border Protection (CBP) that understated the true value of the items being imported in the U.S. As a result, the import duties owed on the shipments were lowered. The indictment alleges that the defendants sent 515 individual wire transfers totaling $137,156,726 to pay overseas suppliers for undervalued garments. Overall, according to the indictment, CTJ imported goods that were undervalued by more than $62 million, causing approximately $10,269,068 in unpaid tariffs and duties that should have been paid to CBP. Some of this conduct occurred prior to authorities executing search warrants at CTJ and GLLR in 2014, but the indictment alleges that undervaluation resumed in 2018 and lasted until at least July 2020.
In the second scheme, the Rhews used CTJ “to receive large amounts of bulk United States currency, including from narcotics proceeds, as payment for outstanding merchandise orders from customers in Mexico and elsewhere,” according to the indictment. CTJ allegedly accepted large cash payments of up to $70,000 even after the law enforcement action targeted their businesses in 2014. The defendants failed to file currency transaction reports, which are required for any transaction involving more than $10,000 in cash, and they concealed the cash receipts from an accountant who prepared their taxes, which led the Rhews to fraudulently omit more than $17.6 million in gross sales from tax returns filed with the IRS, the indictment alleges.
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.
The court will issue summons directing the three defendants to appear for arraignments in United States District Court on February 4.
If convicted of the charges in the indictment, the Rhews would each face potential sentences of decades in federal prison, and CTJ could face fines of as much as $100 million.
This case is the product of an ongoing investigation by Homeland Security Investigations (HSI), IRS Criminal Investigation, U.S. Customs and Border Protection, the Monterey Park Police Department, the El Segundo Police Department, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force.
This case was investigated under the aegis of the HSI-led El Camino Real Financial Crimes Task Force, which includes representatives from the United States Attorney’s Office, the Drug Enforcement Administration, the FBI and IRS Criminal Investigation. The task force is working to protect legitimate businesses in the financial sector by targeting criminal activity and encouraging companies to comply with import/export regulations.
This matter is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Lucy B. Jennings of the International Narcotics, Money Laundering and Racketeering Section.
Former Owner of Health Care Staffing Company Indicted for Wage FixingRead the Press Release
SHERMAN, Texas – A federal grand jury returned an indictment charging Neeraj Jindal, the former owner of a therapist staffing company, for participating in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area, the Department of Justice announced today. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
According to the two-count indictment filed in the U.S. District Court in Sherman, Texas, Jindal and his co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants, and Jindal’s company paid lower rates, from in or about March 2017 and continuing through in or about August 2017. Jindal is charged with participating in the conspiracy when he was the owner of a Texas-based therapist staffing company that provided in-home physical therapy services. Jindal is also charged with obstruction of proceedings before the Federal Trade Commission. According to the indictment, Jindal made false and misleading statements and withheld and concealed information during the Federal Trade Commission’s investigation to determine whether Jindal’s company or other therapist staffing companies violated Section 5 of the Federal Trade Commission Act.
“The charges announced today are an important step in rooting out and deterring employer collusion that cheats American workers — especially health care workers — of free market opportunities and compensation,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Employers who conspire to fix the wages of workers or restrict their mobility by allocating labor markets will be prosecuted to the fullest extent of the law. The division will also continue to prosecute those who undermine the integrity of federal investigations, including proceedings before other federal agencies.”
“The integrity of the market is the foundation of our free-enterprise system,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas. “Wage-fixing agreements exploit workers by pushing down wages and eliminating competition. The Eastern District of Texas is proud to partner with the Antitrust Division in protecting the marketplace and the opportunities for American workers.”
“The FBI is committed to rooting out anti-competitive activity and corruption in our markets,” said Assistant Director Calvin Shivers of the Criminal Investigative Division. “In this case, Neeraj Jindal attempted to cheat the system and, in doing so, hurt hard-working Americans providing medical care and relief. Our International Corruption team worked creatively and diligently to investigate this crime. We are prepared to take our findings and work with our partners at the Department of Justice to ensure justice is served.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s Washington Criminal I and II Sections and the International Corruption Unit of the FBI.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Note: A copy of the indictment can be obtained here.
Ex-con admits helping destroy evidence in investigation of murdered wife of Fort Stewart soldierRead the Press Release
SAVANNAH, GA: A former federal inmate has admitted to helping destroy evidence in the murder of the wife of a Fort Stewart soldier.
Devin Ryan, 30, of Hardeeville, S.C., pled guilty in U.S. District Court to Use of Fire in Commission of a Federal Felony, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a mandatory sentence of 10 years in federal prison, followed by a period of supervised release.
There is no parole in the federal system.
“A man with no involvement other than previous time behind bars with an admitted killer needlessly complicated a murder investigation by destroying a significant piece of evidence,” said U.S. Attorney Christine. “Rather than stay a free man and hang up the phone when called, Devin Ryan helped cover up a murder – and that choice has earned him more hard time behind bars.”
Stafon Jamar Davis, 28, of Savannah, pled guilty to Premeditated Murder and to Possession of a Firearm by a Convicted Felon in the July 9, 2018 shooting death of Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation.
As described in court documents and testimony, after killing Boykin by shooting her twice in the head, Davis contacted Ryan – who previously served prison time with him – for help in “getting rid of a car.” Ryan provided directions to a location in Hardeeville, S.C., where the two men met. Ryan brought a container of gasoline with him, and the two poured gas inside Boykin’s 2018 Honda Accord and set it on fire. The car exploded, and the burned vehicle later was hauled to a salvage yard and ultimately scrapped before investigators could track it down.
Both Ryan and Davis were on federal supervised release at the time of the crimes, and both are in custody awaiting sentencing.
“Ryan’s attempt to cover up a murder made an investigation more difficult, but because of the determination of FBI and Army Criminal Investigation Command investigators, the case was solved and he will go back to prison,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
“Today’s plea by the defendant is proof of the level of detail our special agents and our law enforcement partners will go to, to solve a crime,” said Chris Grey, spokesman for the U.S. Army Criminal Investigation Command. “Destroying crucial evidence from such a horrific crime is unconscionable.”
The case is being investigated by the FBI and the Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard.
Eastern Kentucky Doctor Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
A Kentucky doctor and his former office manager were sentenced to 60 and 32 months respectively in prison Wednesday for their roles in unlawfully distributing controlled substances during a time when the defendants did not have a legitimate medical practice.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Detroit Field Division, and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.
Scotty Akers, M.D., 48, a licensed physician, and Serissa Akers, 33, his wife and former office manager, both of Pikeville, Kentucky, were sentenced by U.S. District Judge Robert E. Wier of the Eastern District of Kentucky. Judge Wier also ordered Scotty Akers to forfeit $12,275. Both defendants pleaded guilty on Aug. 7, 2020 to charges of unlawfully distributing controlled substances.
As part of their guilty pleas, the defendants admitted to using Facebook messenger and other messaging applications to sell prescriptions for opioids. According to their plea agreements, Serissa Akers exchanged prescriptions written by Scotty Akers for cash in parking lots around Pikeville. The defendants also admitted that Scotty Akers performed no physical examinations that would justify these parking-lot prescriptions, and failed to engage in other measures that prevent the abuse and diversion of opioids. The defendants continued operating their opioid-delivery scheme even after they came under investigation and up until the moment when Scotty Akers’s medical license was suspended.
HHS-OIG, DEA and Kentucky MFCU investigated the case. Trial Attorney Dermot Lynch and Assistant Chief Kate Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.