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Newest first across public DOJ and U.S. Attorney press releases.
3 February 2021
Minnesota Man sentenced to 22 years in Federal Prison for Large-scale Narcotics TraffickingRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Daniel Hovland has sentenced Terrell Armstrong, a/k/a Louis, a/k/a Looney, age 26 of Inver Grove Heights, MN, to 22 years in federal prison for Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substances. Judge Hovland also sentenced Armstrong to five years of supervised release, to follow his prison sentence.
This investigation began in June 2018, when the Bismarck Police Department received information identifying methamphetamine traffickers from the Twin Cities known as "Dre" and "Louis". The investigation revealed that "Dre" and "Louis" were responsible for distributing over 40 pounds of methamphetamine and 3 pounds of heroin into the Bismarck-Mandan area. "Louis" was later identified as Terrell Armstrong and "Dre" as Danae Mansell, age 25, also of Inver Grove Heights, MN. As part of their wide-ranging investigation, Bismarck Police executed residential search warrants in January and February 2019. Approximately three pounds of methamphetamine, over 150 grams of heroin, over $11,000 in US Currency, and two loaded firearms were seized by authorities during the execution of the January 2019 search warrant. Execution of the February 2019 search warrant led to the seizure of over three additional pounds of methamphetamine, approximately 30 grams of heroin,
approximately $16,000 in US Currency, and one loaded firearm. Additional investigation determined that Armstrong and Mansell headed the drug trafficking ring. Armstrong routinely provided firearms to his subordinate traffickers he sent to North Dakota from Minnesota.
"The drugs seized in this investigation had a total street value of approximately $400,000.00," said United States Attorney Drew Wrigley, "that’s a devastating amount of poison that law enforcement stopped from entering our communities."
Danae Mansell plead guilty to his role in the methamphetamine and heroin trafficking enterprise and was sentenced on February 24, 2020 to 15 years in federal prison. In September 2019, a jury found Armstrong guilty for his involvement in the methamphetamine and heroin trafficking conspiracy.
This case was investigated by the Bismarck Police Department, Drug Enforcement Admiration (DEA) and the North Dakota Bureau of Criminal Investigation Crime Laboratory, and was prosecuted by Assistant United States Attorney Dawn M. Deitz.
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Marshall County man sentenced to more than 10 years for drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Dustin L. White, of Moundsville, West Virginia, was sentenced today to 130 months of incarceration for drug and firearms charges, U.S. Attorney Bill Powell announced.
White, age 33, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearms in Furtherance of Drug Trafficking” in October 2020. White admitted to distributing methamphetamine in March 2019 in Marshall County. White also admitted to possessing two pistols, a revolver, and a shotgun during drug trafficking crimes.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Man Sentenced for Advertising Videos and Images of Children Being Sexually AbusedRead the Press Release
A Washington, D.C., man was sentenced today to over 17 years in prison for advertising videos and images of children being sexually abused.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office made the announcement.
Simon Walker, 34, was sentenced by U.S. District Court Judge Carl J. Nichols of the U.S. District Court for the District of Columbia. Walker pleaded guilty on Oct. 8, 2019, to one count of advertising child pornography. In addition to his prison sentence, he was sentenced to 20 years of supervised release and ordered to pay $10,000 in restitution to the victims.
According to admissions made in connection with his plea agreement and other court filings, Walker was the creator and administrator of online chat groups devoted to the trading of child pornography. In addition to uploading images of children engaged in sexually explicit conduct, Walker encouraged other members of the groups to distribute child pornography, warning them that they would be removed from the groups if they did not contribute to the online community of offenders, and encouraged the ongoing sexual abuse of an infant by a co-administrator.
Forensic examination of his electronic devices, pursuant to a federal search warrant executed at his residence in May 2018, uncovered hundreds of videos and images of children engaged in sexually explicit conduct.
Walker was arrested by the FBI on July 12, 2018, was ordered detained by the U.S. District Court for the District of Columbia and has remained in custody since that time.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state and federal partners, investigated the case. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jodi Lazarus of the District of Columbia are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Pleads Guilty After He Assaulted a Woman with a Knife and Illegally Possessed a FirearmRead the Press Release
A Tulsa man was convicted today in federal court for cutting his girlfriend’s throat and for illegally possessing a firearm, announced U.S. Attorney Trent Shores.
Devin Charles Staller, 23, pleaded guilty to assault with a dangerous weapon in Indian Country and to being a felon in possession of a firearm.
“Devin Staller is a dangerous man, plain and simple. He kicked in his girlfriend’s front door and later during a domestic dispute cut her throat. Thankfully, she survived. When police later arrested Staller, he was in illegal possession of a shotgun, ” said U.S. Attorney Trent Shores. “I am grateful this victim called police and they acted quickly. Thanks to Iowa-based Assistant U.S. Attorney Kevin Fletcher and the joint investigative work of the Tulsa Police Department, ATF and FBI, this dangerous eight-time felon has been convicted.”
In his written plea agreement, Staller admitted that he had intent to do bodily harm when he assaulted the female victim with a knife by cutting her throat on June 24, 2020.
He further admitted to being a felon in possession of a Montgomery Ward Savage 16 gauge pump-action shotgun. Staller was previously convicted of eight felonies. Staller was found with the firearm when he was located by police in an apartment in Tulsa on July 17, 2020.
U.S. District John E. Dowdell set sentencing for May 5, 2021.
The maximum sentence per each count is ten years imprisonment and a fine per count of not more than $250,000.
The Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant U.S. Attorney Kevin Fletcher is prosecuting the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Man Admits Operating Lottery Scam that Defrauded Connecticut Victim of Nearly $1.2 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that STIEVE FERNANDEZ, 35, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy charge stemming from a lottery scam that defrauded an elderly Connecticut victim of nearly $1.2 million.
In a lottery scam, a perpetrator fraudulently convinces a victim that the victim has won a lottery or sweepstakes, and needs to make certain payments before collecting the winnings.
According to court documents and statements made in court, between approximately 2015 to 2018, Fernandez and others, including Minique Morris and Horace Crooks, defrauded an elderly Mystic resident in a lottery scam. As part of their scheme, Fernandez spoke to the victim on the telephone and used various pseudonyms, including “Damian Jackson,” “Jesse Jackson,” and “Huckleberry Finn.” During the phone calls, Fernandez falsely claimed that the victim had won a lottery or sweepstakes and was required to pay fees purportedly to cover taxes, insurance, handling and other charges related to the winnings. Fernandez directed the victim to pay fees in various ways, including by mailing checks and money orders to Morris in Brampton, Ontario, and Crooks in Orlando, Florida; wiring funds to bank accounts controlled by Morris and Crooks; and purchasing and sending precious metals products to Morris and Crooks. Fernandez instructed his co-conspirators how to transfer or deliver the fraud proceeds to him in Argentina or Jamaica, where Fernandez resided.
Through this scheme, the victim was defrauded of $1,196,207.
On October 16, 2018, a grand jury in New Haven returned a 10-count indictment charging Fernandez, Morris and Crooks with conspiracy and fraud offenses. Fernandez was arrested in Jamaica on May 9, 2019, and was subsequently extradited to the United States. He has been detained since his arrest.
Fernandez pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for April 29, 2021.
Morris and Crooks previously pleaded guilty to the same charge and await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, with the assistance of the U.S. Marshals Service’s Jamaica Foreign Field Office, the Jamaica Lottery Scam Task Force, the Jamaica Constabulary Force, the U.S. Postal Inspection Service, and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Jonathan Francis.
U.S. Attorney Durham thanked the Justice Department’s Fraud Section for its assistance in this case, and the Justice Department’s Office of International Affairs and the Jamaican Ministry of Justice for coordinating the extradition proceedings in this matter.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Lenox Woman Sentenced to 46 Months for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - On February 3, 2021, United States District Court Judge Stephanie M. Rose sentenced Elizabeth Villanueva, age 36, of Lenox to 46 months in prison for possession with the intent to distribute methamphetamine announced Acting United States Attorney Richard D. Westphal. Villanueva was ordered to serve a period of supervised release of five years to follow her prison term and pay a $100 special assessment payable to the Crime Victims’ Fund. There is no parole in the federal system.
On January 8, 2020, law enforcement conducted a traffic stop on Villanueva as she drove into Taylor County, Iowa. During a search of her car, approximately a half-pound of methamphetamine was discovered and seized. Villanueva pleaded guilty on October 16, 2020, to the charge.
This case was investigated by the Taylor County Sheriff’s Office and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Leader of North Shore Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former Inca, or first-in-command, of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Israel Rodriguez, a/k/a “King Izzy,” a/k/a “King Imperial,” 39, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 15, 2021.
Rodriguez admitted to his role in an August 2018 conspiracy to terminate a leader of the Fitchburg Chapter of the Latin Kings who was suspected of cooperating with law enforcement. On intercepted phone calls, Rodriguez discussed an elaborate ruse to trick this leader into attending a meeting at which he would be ambushed and beaten by other Latin Kings members.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Israel Rodriguez is the 31st defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Reaches Settlement with Old Dominion University to Resolve Disability Discrimination ComplaintRead the Press Release
Today the Justice Department announced a settlement agreement with Old Dominion University (ODU) in Norfolk, Virginia, to resolve its investigation into a complaint that ODU discriminated and retaliated against a graduate student based on disability and her related request for reasonable modifications of policy. The Civil Rights Division conducted the investigation under Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973.
“Students should never have to choose between their right to request reasonable modifications of policy for their disabilities and their academic success,” said Gregory B. Friel, Deputy Assistant Attorney General of the Justice Department's Civil Rights Division. “This agreement reflects the critical role colleges and universities — and their faculty and staff — play in delivering on the promise of the ADA and Section 504. By working in good faith with students to provide reasonable modifications of policy, colleges and universities can ensure that students with disabilities have full and equal access to educational opportunities at the highest levels of academic achievement.”
The investigation found that the complainant requested acknowledgement of her right to reasonable modifications of policy and was penalized for doing so in violation of Title II and Section 504. The department concluded that after a dispute about the student’s request and based on her disability, ODU terminated the student’s working relationship with her professor-advisor, removed the student from the professor’s lab, separated her from ongoing research and withdrew her participation at a professional conference. The complainant was forced to change her graduate course of study and find a new advisor.
ODU cooperated throughout the investigation and committed to complying fully with its legal obligations under the ADA and Section 504. The settlement agreement requires ODU to develop and disseminate a retaliation policy that explains the ADA and Section 504 obligations applicable to all staff and faculty and clarifies that ODU will impose consequences, up to and including termination, on those who violate the policy. ODU will also provide comprehensive ADA training to administrators, faculty and staff. Finally, the agreement requires that ODU pay $40,000 in monetary damages to the complainant.
The enforcement of the ADA and Section 504 of the Rehabilitation Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Independence Business Owner Sentenced for Arson of Rival Business, Residence, and Illegally Possessing a FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, business owner has been sentenced in federal court for his role in a conspiracy to commit arson against a rival business as well as a residence, and for illegally possessing a firearm.
William “Bill” Joseph Reneau, 44, of Overland Park, Kansas, was sentenced by U.S. District Judge Roseann Ketchmark on Tuesday, Feb. 2, to six years and six months in federal prison without parole. The court also ordered Reneau to pay $167,085 in restitution to his victims.
On Aug. 5, 2020, Reneau pleaded guilty to one count of arson and one count of being a felon in possession of a firearm and ammunition. Reneau was the owner of Gold Rush Exchange, with locations on 40 Highway and 24 Highway in Independence.
Reneau admitted that he hired others to destroy an Independence residence and a business, Bobby Jackson’s Trading, a gold-buying business operated by a former employee of Reneau’s at 302 E. 23rd Street in Independence. Reneau hired others to damage Bobby Jackson’s Trading in July and August of 2017, then to burn the business as well as a residence owned by his wife’s ex-husband in August 2018.
Reneau also admitted that he kept a Mossberg 12-gauge shotgun underneath a computer at The Gold Rush Exchange. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Reneau has prior felony convictions for conspiracy to distribute methamphetamine, cocaine and marijuana, and for aiding and abetting money laundering.
Reneau paid co-defendant Randell Eugene Yeager Jr., 47, of Independence, $800 to damage the Bobby Jackson’s Trading building. On July 17, 2017, Yeager drove a stolen Jeep Grand Cherokee into the front of the business, backing into the building and colliding with the front door and the front business windows. The stolen Jeep Grand Cherokee was located later by the Independence Police Department, unoccupied and still running with evidence from the damaged building still attached to the vehicle. The damage was approximately $10,000.
On Aug. 4, 2017, Yeager set fire to Bobby Jackson’s Trading. During the investigation, investigators located what appeared to be containers that were used to bring gasoline to the business and set the fire near the front doors and windows. The fire caused approximately $5,000 dollars in damage to the exterior and interior of the business. Reneau paid Yeager $800 for setting the fire.
Yeager was sentenced on June 1, 2020, to five years and three months in federal prison without parole.
Reneau also paid $500 to another co-defendant to have an Independence residence, which was unoccupied, burned down on Aug. 13, 2018.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Independence, Mo., Police Department, and the Buchanan County, Mo., Sheriff’s Department.
Hyde Park Man Indicted on Charges of Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Hyde Park man was indicted today by a federal grand jury in connection with illegally possessing a loaded Smith & Wesson pistol.
King Belin, 35, was indicted on one count of being a felon in possession of a firearm and ammunition. Belin is currently detained in state custody and will be arraigned in federal court in Boston at a later date.
According to the indictment, on Dec. 20, 2020 in Stoughton, Belin possessed a Smith & Wesson, Model SD40VE .40 caliber pistol, loaded with 14 rounds of .40 caliber ammunition. Due to a previous conviction for a crime punishable by one than one year in prison, Belin is prohibited from possessing firearms and ammunition.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Stoughton Police Chief Donna M. McNamara made the announcement today.
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.
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.
Getaway Driver in Two Bank Robberies Sentenced to 4 YearsRead the Press Release
PITTSBURGH, PA - A former resident of Charleston, West Virginia, has been sentenced in federal court to four years imprisonment, followed by three years supervised release on his convictions related to two bank robberies, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on William Gregory, 41.
According to information presented to the court, on May 4, 2018, Gregory assisted co-defendant Daimeyon Smith in committing two bank robberies. Gregory served as the getaway driver for both robberies while Smith is alleged to have robbed each bank at gunpoint. In all, Gregory and Smith robbed the Key Bank in Coraopolis, Pennsylvania of $8,000, and the Key Bank in McMurray, Pennsylvania of $12,158.
Judge Fischer also ordered that Gregory is required to pay restitution to the banks in the joint and several amount of $20,158.00.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, Coraopolis Police Department, and Peters Township Police Department for the investigation leading to the successful prosecution of Gregory.
Georgia Man Arrested for Multi-Million Dollar Conspiracy to Launder Romance Scam ProceedsRead the Press Release
RALEIGH, N.C. – A Smyrna, Georgia man was arrested and had his first appearance in federal court in Atlanta today on charges of laundering the proceeds of romance scams that targeted victims in the Eastern District of North Carolina and throughout the United States.
According to court documents, Oluwadamilare Kolaogunbule, a/k/a “Dare,” opened, maintained, and controlled multiple bank accounts, referred to as “drop accounts,” that were used to receive, move, and obscure criminal proceeds, including funds derived from romance scams. A romance scam refers to a type of scheme in which scammers create fake profiles on Internet dating sites for the purpose of identifying victims, forming fraudulent romantic relationships with them, and then exploiting them for profit. According to the allegations in the indictment, co-defendant Samuel Ugberaese, a/k/a “Putsammy,” a Nigerian national, and his co-conspirators used romance scam techniques, including false stories and promises, as a means to defraud victims into transferring money on their behalf. It is alleged that Kolaogunbule conspired with Ugberaese to conduct financial transactions through his bank accounts, including accounts registered to purported Georgia export companies, in order to conceal and disguise the nature, location, source, ownership, and control of the criminal proceeds. The indictment seeks a forfeiture money judgment in the amount of at least $2,367,520 related to the schemes.
Kolaogunbule is charged with conspiracy to commit money laundering and faces a maximum penalty of 240 months in prison if convicted.
“Romance scams are among the most prolific and despicable crimes of the digital age. Con artists outside of our borders stalk Internet dating websites for the sole purpose of taking advantage of individuals looking for companionship,” stated United States Attorney Robert J. Higdon, Jr. “They make false promises of love, but the victims—many of whom are older Americans—find only emotional and financial devastation. The losses associated with these crimes is staggering; according to the FBI’s Internet Crime Complaint Center, romance scams produce greater reported financial losses when compared to other online crimes. In 2019 alone, romance scams generated reported losses in excess of $475 million. In order to move these criminal proceeds in and out of our financial system, the scammers often rely on domestic money launderers to help them avoid detection and maximize their profits. Disrupting these criminal networks and vindicating the rights of victims to see justice, with targeted investigations and prosecutions, will be continue to be a top priority for my office.”
"It takes a heartless person to prey on lonely, elderly people. Some of these victims were essentially robbed of their life savings so these conspirators could profit. The FBI and our law enforcement partners are focused on holding offenders accountable who rip off our senior citizens," said Robert R. Wells, Special Agent in Charge of FBI Charlotte.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, Charlotte Field Office, investigated this case. Assistant U.S. Attorney Adam F. Hulbig is prosecuting the case.
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. 5:21-CR-27-BO.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former University of Florida Researcher Indicted for Scheme to Defraud National Institutes of Health and University of FloridaRead the Press Release
A former University of Florida (UF) professor and researcher and resident of China has been indicted for fraudulently obtaining $1.75 million in federal grant money from the National Institutes of Health (NIH) by concealing support he received from the Chinese government and a company that he founded in China to profit from that research.
Lin Yang, 43, who resided in Tampa, Florida, at the time of the offenses, is charged with six counts of wire fraud and four counts of making false statements to an agency of the United States. The indictment, returned by a federal grand jury on Dec. 15, 2020, was unsealed today.
“Transparency about foreign funding sources allows federal agencies to allocate finite resources fairly. Transparency about foreign government affiliations, like business affiliations, allows the research community and the American people to assess any impact on the integrity of the research,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “According to the indictment, the defendant intentionally deceived both his employer and the federal government in order to obtain more than a million dollars in research funding. Rather than being open about his ties to the People’s Republic of China, the defendant chose to conceal them, in the process advancing both the Chinese government’s strategic goals and his own financial interests. The department will continue to protect the foundations of America’s research enterprise—integrity and transparency.”
“The taxpayer dollars that funded Yang’s research were intended to benefit the health and well-being of U.S. citizens. But our indictment alleges that Yang engaged in acts of deliberate deception so that he could also further the research goals of the Chinese Communist government and advance his own business interests,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “We are committed to working closely with the FBI, the Department of Health and Human Services, and our research institutions to identify, investigate and prosecute anyone who undermines the integrity of our nation’s research efforts by concealing potential conflicts of interest and commitment.”
“American taxpayers ought to know whether their money is being used to fund research and development for the benefit of foreign governments and foreign companies,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will always investigate those who break the law by taking federal money while hiding their foreign business and government ties. In doing so, we’re ensuring transparency and protecting the hard-earned dollars of the American public.”
“The United States can benefit greatly from hosting foreign researchers in our academic institutions, but this case illustrates how that collaborative environment can also be exploited,” said Special Agent in Charge Rachel L. Rojas of the FBI Jacksonville Division. “The Chinese Communist government simply does not play by the same rules of academic integrity that we do. The FBI is committed to holding its proxies accountable, and to helping educational institutions protect cutting-edge research and technologies from foreign adversaries who are determined to defeat the U.S. at any cost.”
“Taxpayers fund medical research in the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Such funding should be based on a transparent understanding of potential conflicts of interest and commitment,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will assiduously investigate rogue researchers who conceal their foreign support.”
According to the indictment, Yang obtained a $1.75 million grant from NIH to develop and disseminate an imaging informatics tool for muscles known as “MuscleMiner.” Between September 2014 and July 2019, Yang served as the principal investigator for the NIH grant at UF. As the principal investigator, Yang was responsible for conducting and administering the grant in compliance with applicable federal law and institutional policies. Among other things, Yang was required to disclose his foreign research support and financial conflicts of interest, including his ownership of, or interest in, a foreign company.
During that same period, in 2016, Yang established a business in China known as “Deep Informatics.” The indictment further alleges that Yang promoted his business in China by relating that its products were the result of years of research supported by millions of dollars of U.S. government funding. Simultaneously, Yang applied for and was accepted into the People’s Republic of China’s Thousand Talents Program (TTP) in connection with Northwestern Polytechnical University, located in Xi’an, China. The TTP was a talent plan established by the Chinese government to encourage the transfer of original ideas, technology, and intellectual property from foreign institutions, such as American universities.
In order to maintain his employment with UF and continue receiving NIH grant money, the indictment alleges that Yang intentionally concealed his conflicts of interest and other support in connection with his Chinese business and his participation in a Chinese government talent plan and affiliation with a Chinese research university. On multiple occasions, Yang submitted disclosures to NIH containing false statements and material omissions concerning his affiliations and research endeavors with a foreign government and company. Additionally, in January 2019, UF’s College of Engineering required all faculty to provide, in writing, updated disclosures concerning activities with foreign entities in China and two other countries. The indictment alleges that Yang provided UF with a written response that falsely stated he had no affiliation with any business, entity, or university in China.
Yang traveled to China in August of 2019 and has yet to return to the United States.
Each count of wire fraud carries a maximum sentence of 20 years’ imprisonment and a $250,000 fine. Each count of making false statements to an agency of the United States is punishable by a maximum sentence of five years’ imprisonment and a $250,000 fine.
The FBI Jacksonville Division and HHS-OIG investigated the case. Assistant U.S. Attorney Stephen M. Kunz for the Northern District of Florida is prosecuting the case with assistance from the National Security Division’s Counterintelligence & Export Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former University of Florida Researcher Indicted for Scheme to Defraud National Institutes of Health and University of FloridaRead the Press Release
GAINESVILLE, FLORIDA – A former University of Florida (UF) professor and researcher and resident of China has been indicted for fraudulently obtaining $1.75 million in federal grant money from the National Institutes of Health (NIH) by concealing support he received from the Chinese government and a company that he founded in China to profit from that research.
Lin Yang, 43, who resided in Tampa, Florida, at the time of the offenses, is charged with six counts of wire fraud and four counts of making false statements to an agency of the United States. The indictment, returned by a federal grand jury on Dec. 15, 2020, was unsealed today.
“Transparency about foreign funding sources allows federal agencies to allocate finite resources fairly. Transparency about foreign government affiliations, like business affiliations, allows the research community and the American people to assess any impact on the integrity of the research,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “According to the indictment, the defendant intentionally deceived both his employer and the federal government in order to obtain more than a million dollars in research funding. Rather than being open about his ties to the People’s Republic of China, the defendant chose to conceal them, in the process advancing both the Chinese government’s strategic goals and his own financial interests. The department will continue to protect the foundations of America’s research enterprise—integrity and transparency.”
“The taxpayer dollars that funded Yang’s research were intended to benefit the health and well-being of U.S. citizens. But our indictment alleges that Yang engaged in acts of deliberate deception so that he could also further the research goals of the Chinese Communist government and advance his own business interests,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “We are committed to working closely with the FBI, the Department of Health and Human Services, and our research institutions to identify, investigate and prosecute anyone who undermines the integrity of our nation’s research efforts by concealing potential conflicts of interest and commitment.”
“American taxpayers ought to know whether their money is being used to fund research and development for the benefit of foreign governments and foreign companies,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will always investigate those who break the law by taking federal money while hiding their foreign business and government ties. In doing so, we’re ensuring transparency and protecting the hard-earned dollars of the American public.”
“The United States can benefit greatly from hosting foreign researchers in our academic institutions, but this case illustrates how that collaborative environment can also be exploited,” said Special Agent in Charge Rachel L. Rojas of the FBI Jacksonville Division. “The Chinese Communist government simply does not play by the same rules of academic integrity that we do. The FBI is committed to holding its proxies accountable, and to helping educational institutions protect cutting-edge research and technologies from foreign adversaries who are determined to defeat the U.S. at any cost.”
“Taxpayers fund medical research in the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Such funding should be based on a transparent understanding of potential conflicts of interest and commitment,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will assiduously investigate rogue researchers who conceal their foreign support.”
According to the indictment, Yang obtained a $1.75 million grant from NIH to develop and disseminate an imaging informatics tool for muscles known as “MuscleMiner.” Between September 2014 and July 2019, Yang served as the principal investigator for the NIH grant at UF. As the principal investigator, Yang was responsible for conducting and administering the grant in compliance with applicable federal law and institutional policies. Among other things, Yang was required to disclose his foreign research support and financial conflicts of interest, including his ownership of, or interest in, a foreign company.
During that same period, in 2016, Yang established a business in China known as “Deep Informatics.” The indictment further alleges that Yang promoted his business in China by relating that its products were the result of years of research supported by millions of dollars of U.S. government funding. Simultaneously, Yang applied for and was accepted into the People’s Republic of China’s Thousand Talents Program (TTP) in connection with Northwestern Polytechnical University, located in Xi’an, China. The TTP was a talent plan established by the Chinese government to encourage the transfer of original ideas, technology, and intellectual property from foreign institutions, such as American universities.
In order to maintain his employment with UF and continue receiving NIH grant money, the indictment alleges that Yang intentionally concealed his conflicts of interest and other support in connection with his Chinese business and his participation in a Chinese government talent plan and affiliation with a Chinese research university. On multiple occasions, Yang submitted disclosures to NIH containing false statements and material omissions concerning his affiliations and research endeavors with a foreign government and company. Additionally, in January 2019, UF’s College of Engineering required all faculty to provide, in writing, updated disclosures concerning activities with foreign entities in China and two other countries. The indictment alleges that Yang provided UF with a written response that falsely stated he had no affiliation with any business, entity, or university in China.
Yang traveled to China in August of 2019 and has yet to return to the United States.
Each count of wire fraud carries a maximum sentence of 20 years’ imprisonment and a $250,000 fine. Each count of making false statements to an agency of the United States is punishable by a maximum sentence of five years’ imprisonment and a $250,000 fine.
The FBI Jacksonville Division and HHS-OIG investigated the case. Assistant U.S. Attorney Stephen M. Kunz for the Northern District of Florida is prosecuting the case with assistance from the National Security Division’s Counterintelligence & Export Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Yang Yang Indictment (unsigned)Former Manager of Sioux Center Cooperative Sentenced to Prison in Grain Blending SchemeRead the Press Release
A former high-level manager of a Sioux Center grain cooperative who directed subordinate employees to blend oats into soybeans was sentenced February 2, 2021, to three months in federal prison.
Calvin Diehl, age 60, from Aberdeen, South Dakota, received the prison term after a June 9, 2020 guilty plea to one count of conspiracy to defraud the United States.
In a plea agreement, and at guilty plea and sentencing hearings, Diehl admitted he was the Assistant General Manager at a large, federally licensed grain warehouse that is headquartered in Sioux Center but has satellite locations in the Northern District of Iowa and elsewhere. In July 2015, Diehl agreed with others to defraud the United States. The fraud involved blending lower value oats into soybeans and then selling the mixture as soybeans. During the fraud, the individuals involved also made false statements and executed false certificates to USDA inspectors, layered soybeans on top of oats in both storage bins and trucks to deceive USDA inspectors and customers about the quality and quantity of the grain, and made false entries and adjustments in reports provided to the grain warehouse’s bank.
In March 2017, one of Diehl’s subordinates instructed a warehouse manager in Worthing, South Dakota, to blend more oats with soybeans. As a result, approximately 30 truckloads of what were supposed to be soybeans were “spiked” with oats. After the customer happened to discover the badly “slugged” or “spiked” loads, one of the customer’s managers called Diehl and told him to stop blending oats into soybeans. The manager warned Diehl that “someone can go to jail for this.” Diehl feigned surprise, apologized, and falsely promised that the practice would not happen in the future. However, Diehl continued to blend oats into soybeans (even directing subordinates to remix one of the “slugged” loads) and sell them to the same unwitting customer. Diehl also instructed the Boyden, Iowa location manager to dump other rejected loads in a bin and send the remainder to another customer who did not monitor its soybean receiving location.
In late March 2017, shortly after the “slugged” loads incident, the USDA conducted a pre-planned inspection of the cooperative. During the inspection, the cooperative’s Sanborn, Iowa location manager called Diehl and stated that he had oats visible because he was mixing oats with soybeans in open view. Diehl instructed the Sanborn location manager to cover up the oats by putting soybeans on top of the oats in order to hide the oats from the USDA inspectors.
After learning of the conspiracy, the USDA conducted a search of grain bins at the cooperative’s various locations in Iowa and South Dakota. Of the estimated 87,996 bushels of grain in the bins at these locations, the bins actually contained only 34,354 bushels of soybeans even though all of these bins had been certified as soybeans.
Diehl was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Diehl was sentenced to three months’ imprisonment and fined $7,500. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Diehl was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the United States Department of Agriculture - Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4093.
Follow us on Twitter @USAO_NDIA.
Former Illinois State Senator, Gubernatorial Candidate Sam McCann Indicted for Alleged Fraudulent Use of Campaign Funds, Money Laundering, Tax EvasionRead the Press Release
SPRINGFIELD, Ill. – A grand jury today indicted former Illinois State Senator Sam McCann on charges of fraud, money laundering, and tax evasion related to his alleged misuse of campaign money for personal expenses. The indictment alleges that from May 2015 to June 2020, McCann engaged in a scheme to convert more than $200,000 in contributions and donations made to his campaign committees to pay himself and make personal purchases, and that he concealed his fraud from donors, the public, the Illinois State Board of Elections and law enforcement authorities.
The indictment was announced by Central District of Illinois U.S. Attorney John C. Milhiser; FBI Special Agent in Charge Sean M. Cox, Springfield Division; and, IRS Criminal Investigation Acting Special Agent in Charge David Talcott, St. Louis Field Office.
William Samuel McCann, Jr., 51, of Plainview, Ill., served as a state senator for the 49th District of Illinois from 2011 to 2013, and for the redrawn 50th District from 2013 to January 2019. McCann formed the Conservative Party of Illinois and in 2018, launched an unsuccessful bid for Illinois Governor. McCann previously lived in Carlinville, Ill., and owned and operated two construction related businesses.
McCann organized multiple political committees that were registered with the Illinois State Board of Elections: Sam McCann for Senate; Sam McCann for Senate Committee; McCann for Illinois; and, Conservative Party of Illinois. According to the indictment, from April 2011 to November 2018, McCann and his political committees received more than $5 million in campaign donations.
The indictment alleges multiple instances when McCann used campaign funds to purchase personal vehicles, pay personal debts, make mortgage payments, and pay himself, including the following:
- McCann allegedly used more than $60,000 in campaign funds to partially fund the purchases of a 2017 Ford Expedition in April 2017 and a 2018 Ford F-250 truck in July 2018, which he titled in his own name and used for his personal travel. McCann then used campaign funds for loan payments on the F-250 and for fuel and insurance expenses for both vehicles, while at the same time using campaign funds to reimburse mileage expense claims which he did not incur.
- In April 2018, McCann allegedly used $18,000 in campaign funds to purchase a 2018 recreational travel trailer, and in May 2018, used $25,000 in campaign funds to buy a 2006 recreational motor home, both of which McCann titled in his personal name.
McCann established an online account with a recreational vehicle rental business in Ohio and listed the vehicles for rent identifying Sam McCann as the owner. McCann then established a second account with the same rental business and identified himself as William McCann, a potential renter, with a different residential address and email than those he listed as the owner. From approximately May 2018 to June 2018, McCann, while representing himself as the renter, William, rented both the travel trailer and motor home from Sam, the owner, through the RV rental business. McCann caused a total of approximately $62,666 in campaign funds be used to pay the rental cost of the vehicles. The rental business retained approximately $9,838 for commission and paid McCann, as the owner, approximately $52,827 by direct deposit to McCann’s personal checking account. McCann reimbursed the campaign accounts $18,000, resulting in more than $77,000 in campaign funds used to buy and rent from himself. - On or about Oct. 4, 2016, McCann allegedly used a $20,000 cashier’s check funded by a campaign account and issued to himself to pay off a personal loan, including legal fees, that had originally been issued to him as an equipment loan in 2011 and was in collection by the bank due to non-payment.
- From May 2015 to August 2020, McCann allegedly used campaign funds to pay approximately $64,750 on two separate personal mortgage loans that were secured by his former residence in Carlinville and an adjoining property used as an office for his construction business.
- In November 2018, after an unsuccessful campaign for Governor of Illinois, when he was no longer a candidate for office and did not financially support any other candidate, and continuing to June 2020, McCann allegedly caused the Conservative Party of Illinois to issue approximately $187,000 in payments to himself personally and an additional $52,282 in payments for payroll taxes. Using a payroll service, McCann was allegedly able to conceal himself as the payee for the expenditures from the campaign account.
- The indictment also alleges that approximately $50,000 in campaign funds were used for personal expenses including Green Dot credit card payments related to a family vacation in Colorado and other personal expenses, charges from Apple iTunes, Amazon, a skeet and trap club, Cabela’s, Scheels, Best Buy, a gun store, and cash withdrawals.
In addition to wire fraud and money laundering, the indictment charges McCann with one count of tax evasion related to his joint return for calendar year 2018. McCann allegedly failed to report income from his 2018 rental payments to himself for the RV trailer and motor home. In addition, in March 2018, McCann used a $10,000 check issued by a campaign account to make a down payment to a Shipman, Ill., business for a motor home. When the purchase was not completed, the business issued a $10,000 refund check payable to William McCann, which he deposited to his personal checking account and failed to report as income received.
McCann is scheduled to appear via telephone conference on Feb. 16, 2021, at 2:00 p.m. before U.S. Magistrate Judge Tom Schanzle-Haskins for arraignment.
For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is more than $200,000. If convicted, the statutory penalty for each count of wire fraud (seven counts) and one count of money laundering is up to 20 years in prison. For tax evasion, the statutory penalty is up to five years in prison.
The charges are the result of investigation by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Timothy A. Bass is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Franklin County Convention Facilities Authority member offers guilty plea to bribery offenseRead the Press Release
COLUMBUS, Ohio – A former Franklin County Convention Facilities Authority member offered his guilty plea in U.S. District Court today to honest services wire fraud related to a contract with the Greater Columbus Convention Center.
According to his plea, in 2014 and 2015, John P. Raphael, 65, of Columbus, received bribes and kickbacks from a food-service company in exchange for official acts.
Raphael was a member of the Franklin County Convention Facilities Authority board and also served as its treasurer. In those roles, he had a duty to provide honest services to the FCCFA, to Franklin County, and to the people of Franklin County. The FCCFA owned and operated the Greater Columbus Convention Center
In 2014, FCCFA engaged in a confidential bidding process to select a food vendor for the Greater Columbus Convention Center. Four companies submitted bids.
Without disclosing it to the FCCFA, Raphael became a consultant for one of the four companies. In the consulting agreement, the company agreed to pay Raphael a monthly retainer of $5,000 and a “success fee” of $40,000 if the company was able to secure the contract.
Raphael repeatedly took official acts to benefit the food-service company in exchange for money.
On July 8, 2014, Raphael received an email containing a draft of the request for proposal, or RFP, which in its final form would solicit bids from prospective food-service vendors for the Greater Columbus Convention Center. The email also contained a draft of a sample contract that prospective vendors would be expected to execute in the event they won the bid.
Thirty-six minutes after receiving these documents, Raphael sent them to an employee of the company he was assisting.
The draft RFP and draft sample contract were confidential documents and were not to be circulated beyond the FCCFA. Raphael did not share the documents with any other prospective bidder.
The company Raphael was assisting expressed two “items of concern” with the draft RFP and requested two changes. Each of the proposed changes was made part of the final contract that the FCCFA and the company Raphael was assisting signed.
Raphael sent other documents to the company that were useful to it and that he did not share with the other prospective bidders. Raphael also participated in FCCFA meetings related to the bidding process without disclosing that he was working for the company.
The company Raphael was assisting ultimately won the contract. Two days after the contract was signed, Raphael sent an invoice for the $40,000 “success fee.” The company paid the fee. In total, Raphael received $144,00 from the company through the consulting agreement.
Honest services wire fraud is a federal crime punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, who is Acting United States Attorney for the Southern District of Ohio for this case; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Ethics Commission Executive Director Paul M. Nick announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Florida woman sentenced for her role in telephone scamRead the Press Release
ATLANTA - Karla Suzanne Spiker has been sentenced for her role laundering money for an international telephone scam. Spiker began laundering money after having been a victim of a mortgage scam, which is believed to have originated in India.
“These scams are a nationwide problem, and they typically target the most vulnerable members of our society,” said Acting U.S. Attorney Kurt Erskine. “Most of these scams originate outside the United States, and their success depends on individuals, like Spiker, who agree to launder the money. Spiker made a choice to engage in this conduct and could have walked away at any time, but she chose not to.”
“Telephone scams that seek to prey on us are a seemingly unrelenting nuisance,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “Catching people who help to perpetrate these criminal schemes helps us all.”
“We are committed to working with our law enforcement partners to combat Social Security-related telephone scams by targeting their facilitators in the United States,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to aggressively pursue those who make these calls to profit by deceiving and harming American consumers. I want to thank the U.S. Secret Service and the U.S. Attorney’s Office for their unwavering support of our efforts.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Spiker worked as a money launderer for scammers, who are believed to be located in India. Typically, the scammers send out robocalls claiming to have an urgent message for the victim and, when the victim, mostly elderly or otherwise vulnerable, returns the call, the scammers threaten or cajole the victims into sending money.
The scammers that Spiker worked for operated two different scams. In the first, they told victims that their Social Security number (SSN) was used in a crime and they would be arrested, or their SSN canceled, unless they paid money. In the second, the scammers offered the victims a reduced mortgage payment if they first paid a fee. Once the victim agreed to make the payment, the scammers directed them to wire money or send money orders to individuals, like Spiker, in the United States who worked for the scammers.
Since at least June 2019 until July 2020, Spiker received money from victims all over the United States. She used various fake IDs to pick up money wired to an Orlando-area store. Victims also mailed money orders to her directly. Spiker was introduced to the scam when she was a victim of the mortgage scam.
After paying money to reduce her mortgage payment, and realizing that she had been scammed, she was recruited to receive money from other victims.
In July 2020, law enforcement executed a search warrant on Spiker's residence. Inside, they found 52 fake IDs each bearing her image with a different name. Spiker admitted that she had been working with the scammers since June 2019, that she picked up approximately five or six money transactions each week, and that she received a percentage from each cash pick up. Spiker communicated with the scammers by text message or email and had never met anyone in person. Spiker admitted that she picked up over $300,000 in scam funds.
Karla Suzanne Spiker, 47, of Orlando, Florida, was sentenced to one year, three months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $114,265.80 Spiker has been convicted on these charges on October 30, 2020, after she pleaded guilty.
This case was investigated by the U.S. Secret Service and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Faribault Man Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ANDREW ALBERT COMEAUX, 38, to one count of felon in possession of a firearm. COMEAUX pleaded guilty earlier today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. COMEAUX is currently scheduled to be sentenced on May 25, 2021.
According to COMEAUX’s guilty plea and documents filed with the court, on June 15, 2020, multiple law enforcement agencies executed a search warrant at COMEAUX’s residence. During the search, law enforcement found a .22 caliber rifle and a Mosin-Nagant 7.62x54R caliber rifle. COMEAUX also admitted to possessing an AR-15 style pistol with a large capacity magazine and a homemade suppressor/silencer. Because COMEAUX has prior felony convictions in Blue Earth County and in Le Sueur County, he is prohibited under federal law from possessing firearms or ammunition.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, the South Central Drug Task Force, the Cannon River Drug Task Force, Rice and Steel County Sheriff’s Offices, the Faribault and Owatonna Police Departments, Metro SWAT, and the St. Paul Bomb Squad, with coordination from the Rice County Attorney’s Office.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
Defendant Information:
ANDREW ALBERT COMEAUX, 38
Faribault, Minn.
Convicted:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Everett, Pa. Man Sentenced for Purchasing and Selling Firearms Stolen from FederalRead the Press Release
JOHNSTOWN, Pa. – A resident of Everett, Pa., has been sentenced in federal court to 40 months in prison followed by three years supervised release after pleading guilty last year to various counts related to firearms stolen from the National Firearms and Ammunition Destruction Branch (NFAD), United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Richard Adam Schreiber, 38, of Everett, Pa.
"No one can measure the harm Richard Schreiber caused by putting massive numbers of guns in criminals’ hands." said U.S. Attorney Brady. "Through this sentence, he will have time to reflect on his shameful disregard for the safety of our community in exchange for personal financial gain."
"The illegal distribution of firearms presents a great danger to the general public, which ATF takes very seriously," said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. "For a multitude of reasons, when an individual is engaged in the business of selling firearms without being properly licensed, these firearms often times end up in the hands of criminals. ATF has a zero tolerance policy for this type of behavior, and today’s sentencing affirms our stance."
According to information provided to the court, between August 30, 2016 and March 4, 2019, Schreiber purchased multiple stolen firearms, firearm components and ammunition from Christopher Lee Yates. Yates was an employee of Allied Security and worked at NFAD, which was a facility used by ATF and other law enforcement agencies to have firearms and ammunition destroyed. The firearms at NFAD had been seized during criminal investigations or were retired by the agencies. The investigation by ATF began in February of 2019 when a firearm was seized in Philadelphia with different serial numbers, one of which was for a "slide" or firearm component that had purportedly been destroyed at NFAD. ATF learned that Yates stole in excess of five machineguns, 115 pistols and/or revolvers, 3,000 slides and ammunition. Schreiber then sold the firearms and components over the internet from his residence in Everett, Pa. During the investigation, ATF Agents seized nine firearms from Yates, including a machinegun stolen from NFAD and an additional 11 firearms and rifles from individuals to whom Yates had sold the stolen weapons. ATF Agents also seized 99 firearms, 1,352 slides and 123,229 rounds of ammunition from Schreiber and an additional 28 firearms, including three machineguns, from individuals to whom Schreiber had sold the stolen weapons. Yates was charged with similar offenses in the Northern District of West Virginia and was sentenced in August 2019 to 14 years (168 months) in prison.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the successful prosecution of Schreiber.
Anyone with information regarding the location of these firearms, firearms parts, ammunition and/or persons who unknowingly purchased one or more of these items should contact ATF at 1-888-ATF-TIPS, email [email protected]; through its website at www.atf.gov/contact/atf-tips; or through the ReportIt ® app, www.reportit.com, available on both Google Play and the Apple App Store.
Elizabeth City Man Sentenced for Firearm Offense After Driving into Two Parked CarsRead the Press Release
RALEIGH, N.C. – Stephon Ellis, 33, of Elizabeth City was sentenced today to 90 months in prison for possessing a firearm as a convicted felon. Ellis’s six prior state felony convictions include attempted robbery, breaking and entering, and possession with intent to sell or deliver heroin.
According to court documents and statements made in court, on January 21, 2020, at around 1:00 p.m., the Elizabeth City Police Department was dispatched to a car crash in a residential area of Elizabeth City. Officers identified the driver as the defendant Stephon Ellis. After clipping the rear of a parked car, Ellis had turned onto a side street, where he ran into a fence and another parked car before coming to rest. Ellis later admitted that he had been under the influence of Xanax.
As the officers investigated, a witness informed them that Ellis had placed a firearm in the back-seat area of the car after the crash. Officers recovered a Taurus model PT940 .40 caliber handgun in the seat pocket behind the driver’s seat. It was fully loaded with a round in the chamber.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Elizabeth City Police Department and Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
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. 2:20-cr-00030-D.
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Duquesne Man Charged with Possessing CocaineRead the Press Release
PITTSBURGH - A resident of Duquesne, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotic laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named John Byrnes, 43, as the sole defendant.
According to the Indictment, from on or about June 6, 2020, Byrnes possessed with the intent to distribute 500 grams or more of cocaine.
The law provides for a maximum total sentence of not less than five years in prison to a term of life, a fine not to exceed $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the prior record, if any, of the defendant and the seriousness of the offenses.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The DEA and the Allegheny County District Attorney’s Office, Narcotics Task Force (DANET) assisted by the Swissvale and Ross Township Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Danielson Man Pleads Guilty to Defrauding the U.S. Postal ServiceRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, announced that ABILIO PEDROSO, 41, of Danielson, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden to theft of government property related to his receipt of more than $66,000 in fraudulent postal insurance claims.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, from June 2018 through August 2019, Pedroso mailed hundreds of packages through the U.S. Postal Service to people he did not know, insured each package for $300, and then made indemnity claims falsely stating that the packages were missing or that the contents were damaged. Although Pedroso purported the contents of the packages to be valuables, such as watches and iPads, he actually mailed items of little value, such as DVDs and telephone chargers.
Pedroso filed more than 240 indemnity claims and received $66,640.43 through this scheme. Most of the claims were in Pedroso’s name, but he also used other names to mail the packages, make the false indemnity claims, and deposit the proceeds of the insurance checks.
Theft of government property carries a maximum term of imprisonment of 10 years.
Pedroso is released pending sentencing, which has not been scheduled.
This matter is being investigated by the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Cornpeach Pleads Guilty to Voluntary Manslaughter and Assault on a Federal OfficerRead the Press Release
SALT LAKE CITY – Deland Cornpeach, 20, of the Shoshone-Bannock Indian Tribe, pleaded guilty to one count of voluntary manslaughter and one count of assault on a federal officer in federal court on February 1, 2021. As a part of the plea agreement, Cornpeach has agreed to serve 84 months in federal prison.
In the plea agreement, Cornpeach admitted to stabbing the victim, E.P., an enrolled member of the Ute Indian Tribe, to death with a knife on the Uintah and Ouray Indian Reservation on June 20, 2017. The assault on a federal officer charge stems from an incident at the Davis County Jail, where Cornpeach was detained on the federal manslaughter case. While at the jail, Cornpeach assaulted and inflicted injury upon two Davis County Sheriff’s Deputies who where engaged in the performance of their official duties on behalf of the federal government.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the FBI conducted the investigation with assistance from officers of the Bureau of Indian Affairs.
Connecticut Man Facing Federal Charges for Selling Cocaine Base Within 1,000 Feet of Huntington Elementary SchoolRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury, sitting in Burlington, returned an indictment charging Dorian Johnson (a.k.a. “Jon”), 27, of Bloomfield, Connecticut with distributing cocaine base within 1,000 feet of the Brewster Pierce Memorial School in Huntington, Vermont on November 5, 2020. The indictment also charges Johnson with possession with intent to distribute, 28 grams or more of cocaine base on January 1, 2021, related to a traffic stop in Richmond, Vermont.
According to court records, the government alleges that on November 5, 2020, the defendant distributed approximately 28 grams (with packaging) of cocaine base at a residence on Main Road in Huntington, which was within 1,000 feet of the Brewster Pierce Memorial School. In addition, court records indicate the government alleges that as a result of a traffic stop in Richmond, Vermont on January 1, 2021, law enforcement seized approximately 98 grams of cocaine base and 50 grams of cocaine powder. The defendant was a passenger in this vehicle which, the government alleges, had just made a trip back-and-forth from Vermont to Connecticut on New Year’s Day. The street name for cocaine base is crack.
Johnson has pled not guilty to the charges and is currently detained pending trial and being held in the custody of the U.S. Marshals Service. The penalties for the charged drug offenses are as follows: (1) drug distribution within 1,000 feet of a school: 40 years of imprisonment, with a mandatory minimum of one year imprisonment, and a $2,000,000 fine; and, (2) possession with intent to distribute 28 grams or more of a controlled substance: 40 years imprisonment, with a mandatory minimum of five years imprisonment, and a $5,000,0000 fine.
The actual sentence, however, is informed by the advisory Sentencing Guidelines. The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. The defendant is represented by Steven Barth, Esq., of the Federal Public Defenders Office in Burlington.
Complaint Seeks Forfeiture of Iranian Oil Aboard Tanker Based on Connection to Terror GroupRead the Press Release
The United States filed a forfeiture complaint in the U.S. District Court for the District of Columbia alleging that all oil aboard a Liberian-flagged vessel, the M/T Achilleas (Achilleas), is subject to forfeiture based on U.S. terrorism forfeiture laws.
The complaint alleges a scheme involving multiple entities affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC) and the IRGC-Qods Force (IRGC-QF) to covertly ship Iranian oil to a customer abroad. Participants in the scheme attempted to disguise the origin of the oil using ship-to-ship transfers, falsified documents, and other means, and provided a fraudulent bill of lading to deceive the owners of the Achilleas into loading the oil in question.
The complaint alleges in part that the oil constitutes the property of, or a “source of influence” over, the IRGC and the IRGC-QF, both of which have been designated by the United States as foreign terrorist organizations. The documents allege that profits from oil sales support the IRGC’s full range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and a variety of human rights abuses, at home and abroad.
“The forfeiture complaint filed today serves as a reminder that the IRGC and IRGC-QF continue to exert significant control over the sale of Iranian oil,” said Assistant Attorney General John C. Demers for the National Security Division. “As we have demonstrated in the past, the department will deploy all tools at its disposal to ensure that the IRGC and IRGC-QF cannot use profits from the sale of Iranian oil to fund terrorism and other activities that threaten the safety and security of all Americans.”
“The U.S. Attorney’s Office for the District of Columbia will continue working with our law enforcement partners to stem the flow of illicit oil from Iran’s Islamic Revolutionary Guard Corps and Qods Force,” said Acting U.S. Attorney Michael R. Sherwin. “We will use all available tools, including our jurisdiction to seize and forfeit assets located abroad, to combat funding for terrorists and those who would do harm to the United States.”
“This latest civil forfeiture action exemplifies the remarkable work of this multi-agency task force that works tirelessly toward furthering our shared goal of protecting the homeland from regimes that threaten our national security,” said Special Agent in Charge Peter C. Fitzhugh for the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), New York. “This investigation sends a message that the attempted circumvention of U.S. sanctions by the IRGC-QF will not be tolerated. HSI will continue to work with our partners and utilize the full scope of our authorities to disrupt the attempts of hostile countries and regimes to generate profits from oil sales used to support terrorism and the proliferation and delivery of weapons of mass destruction.”
“Iran uses profits from its petroleum sector to fund the malign activities of the IRGC-QF, a designated terrorist group,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “The FBI will continue to prioritize the enforcement of sanctions, and we applaud the efforts of our agents and partners on this investigation.”
A civil forfeiture complaint is merely an allegation. The United States bears the burden of proving that the oil in question is subject to forfeiture in a civil forfeiture proceeding. Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
HSI New York and the FBI’s Minneapolis Field Office are leading the investigation of Iranian petroleum shipments. Assistant U.S. Attorneys Michael P. Grady and Brian P. Hudak of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney David Lim of the Counterintelligence and Export Control Section of the National Security Division are prosecuting the case. The Money Laundering and Asset Recovery Section’s Program Operations Staff of the Justice Department’s Criminal Division has provided extensive assistance throughout the investigation.
CEO Sentenced for $150 Million Health Care Fraud and Money Laundering SchemeRead the Press Release
The CEO of a Texas-based group of hospice and home health entities was sentenced today to 15 years in prison for falsely telling thousands of patients with long-term incurable diseases they had less than six months to live in order to enroll the patients in hospice programs for which they were otherwise unqualified, thereby increasing revenue to the company.
Henry McInnis, 50, of Harlingen, Texas was convicted by a federal jury in Brownsville, Texas, in November 2019 of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice, as well as six counts of health care fraud.
McInnis’s co-conspirator, Rodney Mesquias, 50, the owner of the hospice and home health entities, was also convicted following the November 2019 trial. He was sentenced to 240 months in prison in December 2020. Two other co-conspirators have pleaded guilty and are awaiting sentencing.
“McInnis, as CEO of the company, directly oversaw a reprehensible criminal scheme that involved the submission of over $150 million in fraudulent bills, the falsification of patients’ medical records, and the payment of unlawful kickbacks,” said Acting Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “McInnis preyed upon some of the most vulnerable members of our society, including many who suffered from diminished mental capacity and who were falsely and cruelly told by co-conspirators that they had only months to live. Today’s significant sentence demonstrates the department’s continued commitment to pursuing individuals, at all levels of corporate management, who engage in criminal schemes that prioritize profits over patient care.”
“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”
“McInnis and his co-conspirator’s reprehensible and deceitful actions to defraud Medicare weren’t without harm: vulnerable beneficiaries were unnecessarily enrolled in hospice care, preventing them from accessing needed curative care,” said Special Agent in Charge Miranda L. Bennett, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “With our law enforcement partners, we will continue to investigate those who put ill-gotten profits above the well-being of patients in our health care system.”
From 2009 to 2018, McInnis, Mesquias and others orchestrated a scheme that involved the submission of over $150 million in false and fraudulent claims for hospice and other health care services. McInnis served as the top corporate officer and administrator and oversaw the day-to-day operations of the Merida Group, a large health care company that operated dozens of locations throughout Texas.
McInnis had no medical training and worked previously as an electrician. However, he acted as the de facto director of nursing for the Merida Group. Witnesses at trial testified McInnis directed employees to admit unqualified patients to hospice and home health, keep unqualified patients on services for long periods of time and fired and reprimanded employees who refused to participate in the scheme.
McInnis also oversaw and enforced a company-wide practice of falsifying medical records to conceal the scheme. Multiple witnesses testified McInnis ordered employees to alter medical records to make it appear patients were terminally ill. In reality, some were employed or even participating in sporting events. The jury also heard that McInnis explained the purpose of the falsified records was to allow the Merida Group to pass insurance company audits.
As CEO, McInnis also adopted a policy that paid illegal kickbacks. They directed bribes to physicians under the guise of medical director fees to certify unqualified patients for hospice and home health. In some cases, they improperly offered payoffs to marketers in exchange for recruitment of patients who could be placed on extremely expensive hospice services.
HHS-OIG, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. 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 nearly $19 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
CEO Pleads Guilty to Defrauding Multiple Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – An Arlington businessman pleaded guilty today to making false statements to multiple federal agencies in order to fraudulently obtain multimillion-dollar government contracts, COVID-19 emergency relief loans, and undeserved military service benefits.
According to court documents, Robert S. Stewart, Jr., 35, was the owner and president of Federal Government Experts (FGE) LLC, an Arlington-based company that purported to provide various services to the U.S. government. In this capacity, Stewart made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA) in order to obtain lucrative contracts to provide COVID-19 personal protective equipment (PPE). In addition, Stewart fraudulently obtained loans under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program, and he also defrauded the VA by falsely claiming to be entitled to veteran’s benefits for serving in the U.S. Marine Corps when, in fact, he never served in the Marines.
“Stewart’s fraudulent conduct during a critical time in our Nation’s fight against COVID-19 undermined the government’s ability to provide much needed PPE to the community, including to the front-line health care workers serving our military veterans,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition, by fraudulently obtaining government-backed loans intended to be lifelines to keep businesses afloat, Stewart unlawfully took and misused resources devoted to help struggling Americans.”
As part of his PPE scheme, Stewart falsely stated to procurement officials from FEMA and the VA that he was in possession of large quantities of PPE, including N95 masks. Based on Stewart’s false statements, the VA and FEMA awarded FGE contracts valued at $35,000,000 and $3,510,000, respectively. The VA intended to use the PPE purchased from FGE to protect employees and patients at various Veterans Health Administration facilities, which serve the medical needs of over nine million veterans each year. FGE failed to supply any PPE to the VA and FEMA. The U.S. government suffered no financial loss because the contract called for payment upon delivery and inspection of the goods.
“Exploiting COVID-19 relief efforts for personal gain, to receive lucrative contracts with no intention of fulfilling them, is unconscionable,” said DHS Inspector General Joseph V. Cuffari. “I am proud of everyone at DHS OIG who worked on this case. I am also thankful to our law enforcement partners who helped us bring a swift end to this scheme.”
Stewart also applied for various loans on behalf of FGE under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were designed to provide emergency financial assistance to the millions of people suffering the economic effects of the COVID-19 pandemic. The loan applications submitted by Stewart falsely overstated the number of FGE employees and the amount of FGE’s payroll, two factors that were important in determining loan eligibility and the proper amount of the loan. In addition, Stewart used some of the loan proceeds for personal expenditures rather than to pay employees or for other appropriate business expenses. The loss to the U.S. government from this fraud is approximately $261,500.
In a separate fraudulent scheme, Stewart, an Air Force veteran, submitted an application for benefits to the VA. The application was fraudulent in that Stewart falsely claimed that he also served in the U.S. Marine Corps. Stewart created fraudulent documents that stated he attained the rank of Corporal in the Marine Corps and was honorably discharged after receiving several awards and commendations, including the Rifle Expert Badge, Pistol Expert Badge, Meritorious Mast, National Defense Service Medal, Sea Service Deployment Ribbon, Southwest Asia Service Medal, Certificate of Appreciation, and the Kuwaiti Liberation Medal. Stewart, in fact, never served in the Marines. Based on his fraudulent application, he received excess benefits in the amount of $73,722.45.
“By falsely claiming to have served in the U.S. Marine Corps to unlawfully increase his veteran’s benefits, Stewart stole money dedicated to providing resources and services to American military veterans and their families. This was an affront to those who honorably served,” said Acting U.S. Attorney Parekh. “We thank our law enforcement partners for bringing Stewart to justice.”
Stewart pleaded guilty to making false statements, wire fraud, and theft of government funds and is scheduled to be sentenced on June 16, 2021. He faces a maximum penalty of 35 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorney William Fitzpatrick is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-5.
Burlington County Man Admits $350,000 Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted stealing more than $350,000 from a special needs trust, Acting U.S. Attorney Rachael A. Honig announced.
Eugene Young, 69, of Mount Holly, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
A special needs trust was established to provide for the supplemental care, maintenance, support, and education of a disabled individual and, in December 2017, had more than $1 million in assets in two bank accounts. In December 2017, Young caused the trust’s trustee, a senior citizen, to execute a power of attorney appointing him as the trustee’s agent.
Young used the power of attorney to gain access to the trust’s bank accounts and, between December 2017 and June 2019, used a variety of means to divert funds from the trust. Young used a debit card associated with the bank accounts to make more than 650 purchases and approximately 200 ATM withdrawals. He also wrote checks from the accounts to himself, made other withdrawals from the accounts, and cashed portions of annuity checks that were the property of the trust. The funds were not used for the benefit of the trust’s beneficiary, as required by the terms of the trust, but rather for Young’s personal use. Young misappropriated more than $350,000 from the trust before his scheme was discovered.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to others, whichever is greater. Sentencing is scheduled for June 7, 2021.
Acting U.S. Attorney Honig credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, special agents of the Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of U.S. Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Buffalo Man Arrested, Charged with Being A Felon in Possession of A FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Kaylen Edwards, 22, of Buffalo, NY, was arrested and charged by complaint with being a felon in possession of a firearm. The charge carries carry a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that on November 7, 2020, Cheektowaga Police Officers responded to Pinehurst Avenue, where a limousine bus party was being let out, following a report of disorderly persons. According to the complaint, earlier that day, the defendant was identified on social media flashing a black and silver handgun and wearing a distinct black and red jacket inside the limousine bus. A member of law enforcement sent a photo of the social media post to responding officers.
While on Pinehurst Avenue, officers observed Edwards getting into the front passenger seat of a vehicle with Georgia license plates and leave the area. The officers then observed the vehicle in violation of multiple vehicle and traffic infractions and conducted a traffic stop. The officers observed a marijuana cigar end in the center console area and immediately detected the odor of burnt marijuana emanating from the vehicle. Officers identified Edwards as the passenger. The defendant was detained. During a pat frisk, an officer felt and observed a handgun in Edwards’ side waist band. The handgun was loaded with a magazine containing seven .45 caliber rounds and one .45 caliber round in the chamber. In November 2017, the defendant was convicted of Attempted Criminal Possession of a Weapon in New York State Court, and as a result of that conviction, he is prohibited from legally possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on February 10, 2021.
The complaint is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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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Bronx Man Pleads Guilty to Laundering $1.5 Million in Fraud Proceeds from Business Email Compromises and Romance Scams Targeting Elderly for Ghana-Based Criminal EnterpriseRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that ALHASSAN IDDRIS LARI, a/k/a Hassan Lari, pled guilty today to conspiring to commit money laundering and operating an unlawful money transmitting business, in connection with his involvement from at least in or about 2014 through in or about 2020 with a Ghana-based criminal enterprise that has fraudulently obtained millions of dollars through business email compromises and romance scams that targeted the elderly. The plea was entered in front of U.S. District Judge George B. Daniels. LARI is the seventh defendant to plead guilty in the case.
Manhattan U.S. Attorney Audrey Strauss said: “Alhassan Lari and his co-defendants operated an online criminal enterprise whose profile included romance schemes targeting the elderly. Navigating the anonymous world of the internet, and especially online dating, is oftentimes complicated enough without the added peril of fraudsters lurking to scam would-be daters. This case exemplifies the need to always remain alert and cautious on the internet – especially when being asked for money by a stranger, don’t hesitate to swipe left.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: "Manipulating someone's belief in finding love and then stealing their money is not only criminal, but unbelievably cruel. Mr. Lari and his band of thieves targeted the elderly population, using their age as a weapon to break the law. These fraudsters not only used romance to scam people, they employed business email compromise schemes, a fast-growing cyber threat to which everyone should pay close attention. We can hold these people accountable, even in far-away countries, if we have help from the public. If you know someone who has been scammed, or if you believe you may be a victim, contact us at IC3.gov to report it to us."
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption as demonstrated in this case by Mr. Lari. Money laundering and fraud constitutes a serious threat to our communities and to the integrity of our financial system; today’s plea is an example of how the FBI and the IRS continue to work together as a formidable team to prosecute these offenders.”
According to the Indictment and other filings and statements at public court proceedings in the case:
From at least in or about 2014 through in or about February 2020, LARI was a member of a criminal enterprise (the “Enterprise”) based in the Republic of Ghana (“Ghana”) that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. LARI, while in the Bronx, New York, received or otherwise directed the receipt of at least approximately $1.5 million in fraud proceeds of the Enterprise in cash from co-conspirators or directly from victims through bank accounts he controlled. Several of these bank accounts were opened using a shell shipping company, in order to avoid detection and hide the fraudulent nature of the transactions. Once LARI received the fraud proceeds in bank accounts under his control, he withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.
LARI also operated an unlicensed money transmitting business located in the Bronx, New York used by co-conspirators of the Enterprise to facilitate and transfer fraud proceeds from the United States to co-conspirators in Ghana.
* * *
LARI, 48, a citizen of both the United States and Ghana, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of twenty years in prison, and one count of operation of an unlawful money transmitting business, which carries a maximum sentence of five years in prison. LARI will be sentenced by U.S. District Judge George B. Daniels on June 16, 2021.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019. Adamu and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Traore pled guilty to one count of conspiracy to receive stolen money. Each of the defendants was sentenced by United States District Judge Denise L. Cote.
Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI. Ms. Strauss also thanked U.S. Customs and Border Protection and the FBI Legal Attaché in Accra, Ghana, for their assistance in this case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Mitzi S. Steiner are in charge of the prosecution.
Boston Gang Member Pleads Guilty to Cocaine Trafficking and Firearm PossessionRead the Press Release
BOSTON – A Boston gang member pleaded guilty yesterday in federal court in Boston to a cocaine conspiracy and firearm possession.
Eric Davis, 37, of Mattapan, pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and cocaine base and being a felon in possession of a firearm. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 9, 2021.
In June 2020, Davis was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation, which included Davis, also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Davis even traveled to California in April 2020 to try to obtain kilograms of cocaine.
At the conclusion of the investigation, law enforcement executed a search warrant at a hotel room in Canton where Davis was arrested and recovered approximately two kilograms of cocaine and a firearm.
The charge of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and cocaine base provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Pursuant to a plea agreement with the government, the parties agreed to a sentence of between 105 to 130 months in prison. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Dennis White made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Biddeford Woman Sentenced to Two Years for Methamphetamine Trafficking ChargesRead the Press Release
PORTLAND, Maine: A Biddeford woman was sentenced today in federal court on methamphetamine trafficking charges, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge D. Brock Hornby sentenced Kailey Prejean, 25, to two years in prison and three years of supervised release. Prejean pleaded guilty on October 14, 2020, to conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute a controlled substance, and two counts of distribution of a controlled substance.
According to court records, on July 12, 2019, Prejean sold $250 worth of methamphetamine to an undercover officer in a parking lot in Biddeford. On July 17, 2019, Prejean sold a half-ounce of methamphetamine to the same undercover officer in the same parking lot. On July 24, 2019, the undercover officer arranged to buy one ounce of methamphetamine from Prejean at the same location. On that date, she was accompanied by her co-defendant, Antonio Morrissey. When the two were arrested, Morrissey was found to be armed with a loaded firearm and had approximately one ounce of methamphetamine on his person.
Morrissey pleaded guilty on November 12, 2020, and is awaiting sentencing.
The Maine Drug Enforcement Agency; the Biddeford Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.
Bergen County Business Owner Sentenced to One Year and One Day in Prison for Employment Tax FraudRead the Press Release
NEWARK, N.J. – The owner of several Fairlawn, New Jersey, businesses was sentenced today to 12 months and one day in prison for failing to pay more than $500,000 in payroll taxes, Acting U.S. Attorney Rachael A. Honig announced.
Dennis Saccurato, 68, previously pleaded guilty to tax evasion before U.S. District Court Judge Susan D. Wigenton, who imposed the sentence by videoconference today.
According to the documents filed in the case and statements made in court:
Saccurato owned and operated cleaning product businesses in Fairlawn, including Sparta Chem Inc., Horizon Products LLC, Compu-Kleen, and Start West Labs, and was required to pay over payroll taxes to the IRS. From 2014 to 2016, Saccurato withheld payroll taxes from the wages paid to his employees, purportedly for remittance to the IRS, but failed to pay over the taxes, which amounted to $549,715.
In addition to the prison term, Judge Wigenton sentenced Saccurato to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Belmont County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Sheri K. Green, of Martins Ferry, Ohio, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Green, 56, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Green admitted to working with others to distribute methamphetamine from August 2019 to August 2020 in Marshall County and elsewhere.
Green 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Auburn, Washington member of Proud Boys charged with obstructing an official proceeding, other charges related to the Jan. 6 riotsRead the Press Release
WASHINGTON — A member of the Proud Boys, a nationalist organization, was arrested today and charged in federal court in the District of Columbia with obstructing or impeding an official proceeding, among other charges.
Ethan Nordean, aka Rufio Panman, 30, of Washington state, was charged by criminal complaint in federal court in the District of Columbia with obstructing or impeding an official proceeding, which carries a maximum penalty of 20 years in prison; aiding and abetting, which carries a maximum penalty of 10 years in prison; and knowingly entering or remaining in restricted building or grounds and violent entry and disorderly conduct on Capitol grounds, which each carry a maximum penalty of one year in prison. Nordean will appear in federal court in the Western District of Washington at 2:00 PST.
According to charging documents, Nordean is the self-described “Sergeant of Arms” of the Seattle Chapter of the Proud Boys, a group self-described as a “pro-Western fraternal organization for men who refuse to apologize for creating the modern world; aka Western Chauvinists.”
It is alleged that Nordean was observed marching at the front of a group of known Proud Boys shortly before the riot began. It is further alleged that Nordean was among those who entered the U.S. Capitol building after rioters, including certain persons associated with the Proud Boys, forced entry into the Capitol by means of destruction of Federal property. It is also alleged that Nordean was near the front of the crowd of rioters, who collectively approached, confronted, and vastly outnumbered Capitol Police.
Prior to Jan. 6, 2021, Nordean posted on social media certain indications of an intent to organize a group that intended to engage in conflict. For example, around Dec. 27, 2020, Nordean posted a message asking for donations of “protective gear” and “communications equipment.” On Jan. 4, 2021, Nordean posted a video on social media, which he captioned, “Let them remember the day they decided to make war with us.”
On or about the same day, Nordean posted a video of a discussion that Nordean had with another member of the Proud Boys. During the course of the hour long video, Nordean discussed what he described as “blatant, rampant voter fraud” in the Presidential election. Nordean went on to say that, rather than being complacent, the Proud Boys were going to “bring back that original spirit of 1776 of what really established the character of what America is. And it’s not complacency, it’s not low standards. It’s ‘this is how it’s going to be, and I don’t give a god damn.’” Later in the video, Nordean said, “Democracy is dead? Well, then no peace for you. No democracy, no peace.”
The day before the riots, Nordean posted the following statement to social media: “It is apparent now more than ever, that if you are a patriot, you will be targeted and they will come after you, funny thing is that they don’t realize is, is we are coming for them. You’ve chosen your side, black and yellow teamed with red, white and blue against everyone else.”
On Jan. 8, 2021, Nordean posted a photo on social media of a U.S. Capitol Police officer administering pepper spray on Jan. 6, 2021, with the following caption: “if you feel bad for the police, you are part of the problem. . .”
The case is being prosecuted by Assistant U.S. Attorneys Jason B.A. McCullough and James B. Nelson of the U.S. Attorney’s Office for the District of Columbia and Taryn Meeks of the Department of Justice’s National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorneys’ Offices for the Western District of Washington. The case is being investigated by the FBI’s Washington Field Office, with assistance by the FBI’s Seattle Division.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at https://tips.fbi.gov/.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The maximum penalty is prescribed by Congress and provided here for informational purposes. Any sentence actually imposed is required to be imposed based on the specific factors of the offense and the defendant, in consultation with the U.S. Sentencing Guidelines.
nordean_-_complaint_affidavit.pdfArmstrong County Felon Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Ford City, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Tanner Virostek, age 23, of Ford City, PA, as the sole defendant.
According to the Indictment, on or about July 17, 2020, Virostek possessed with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. The Indictment also alleges that on or about July 17, 2020, the defendant possessed a firearm in furtherance of this drug trafficking crime. Virostek, a convicted felon, is prohibited by Federal law from possessing a firearm.
The law provides for a maximum total sentence of not less than 5 years to a maximum of life in prison, a fine not to exceed $2,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case was brought 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Arizona Man Pleads Guilty to Possession of Multiple Fraudulently-Obtained Unemployment Insurance Benefits Debit CardsRead the Press Release
LAS VEGAS, Nev. – An Arizona man pleaded guilty today to possession of multiple unemployment benefits debit cards — all in different names — and intending to fraudulently obtain nearly $223,000 in benefits to be paid to him, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region.
Delashaun Dean, 32, of Tolleson, Arizona, pleaded guilty to one count of possession of counterfeit and unauthorized access devices. U.S. District Judge Andrew Gordon scheduled a sentencing hearing for May 11, 2021.
According to admissions made in connection with Dean’s guilty plea, between October 3 and October 5, 2020, the Las Vegas Metropolitan Police Department found 15 unemployment insurance benefits debit cards issued by the California Employment Development Department (EDD) on Dean and in his hotel room. The debit cards were all in different names, not in Dean’s name. In addition, law enforcement found a fake driver’s license and a spiral notebook with personal identifying information of multiple individuals, which was used to apply for unemployment insurance benefits. At least $222,930 in unemployment benefits were approved for the claims associated with the recovered EDD cards.
The statutory maximum sentence is 10 years in prison, supervised release, and a $250,000 fine.
The case was investigated by Department of Labor’s Office of Inspector General. Assistant U.S. Attorney Jim Fang is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Albuquerque woman charged with drug trafficking and assaulting a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Sarah Patricia Loya, 22, of Albuquerque, made an initial appearance in federal court on Feb. 2 where she was charged with possession with intent to distribute fentanyl and assaulting a federal officer. Loya will remain detained pending a preliminary hearing scheduled for Feb. 4.
According to a criminal complaint, on January 29, Loya allegedly agreed to meet a person, who was in fact an undercover law enforcement agent, for Loya to sell 25 fentanyl pills. After the transaction was complete and law enforcement officers attempted to detain Loya’s vehicle, Loya allegedly attempted to avoid arrest by accelerating her vehicle into a concrete barrier. When that attempt failed, an agent wearing a clearly marked police insignia approached Loya, identified himself as police and commanded Loya to stop the vehicle. Loya allegedly ignored those commands and attempted to accelerate through law enforcement vehicles.
Loya allegedly collided with a vehicle with a task force officer inside. At that point agents were able to detain Loya’s vehicle. Though Loya allegedly resisted, agents were able to subdue her and she was arrested.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Loya faces up to twenty years in prison.
The Drug Enforcement Administration and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Peter Eicker is prosecuting the case.
2 February 2021
White River Man Sentenced for Assault with Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on February 1, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Anthony Black Wolf, age 33, was sentenced to 43 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Wolf was indicted by a federal grand jury on September 9, 2020. He pled guilty on November 6, 2020.
The conviction stemmed from an incident that occurred in the Lower Swift Bear Community, near White River, on January 11, 2020. On that date, Black Wolf was at his home drinking alcoholic beverages and socializing with a group of individuals that included the victim. At some point, Black Wolf became angry and picked up an axe. Black Wolf repeatedly swung the axe at the victim, striking the victim once on each arm and causing severe lacerations.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Wolf was immediately turned over to the custody of the U.S. Marshals Service.
Wheeling woman sentenced for embezzling nearly $350,000Read the Press Release
WHEELING, WEST VIRGINIA – Cindy Shearer, of Wheeling, West Virginia, was sentenced today to 21 months of incarceration for embezzling nearly $350,000 from her previous employers, U.S. Attorney Bill Powell announced.
Shearer, 58, pled guilty to one count of “Wire Fraud” and one count of “Filing False Income Tax Return” in September 2020. From April 2013 until the end of 2019, Shearer was employed as the office manager by Cane Business Forms & Systems and later reorganized as Precision Printed Products, a printing company in Triadelphia, West Virginia.
Shearer admitted to writing checks totaling $276,892.88 from Cane Business Forms & Systems and a total of $67,672.41 from Precision Printed Products to herself, but listing the check as paid to a legitimate vendor. She would then cash or deposit the checks into her own bank account. Shearer also admitted to not claiming the embezzled money on her personal taxes, defrauding the IRS of approximately $54,509.
Shearer was ordered to pay restitution to both business owners and restitution to the IRS that totals $399,074.29.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Internal Revenue Service investigated.U.S. District Judge John Preston Bailey presided.
Wheeling man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jeremy Crinkey, of Wheeling, West Virginia, was sentenced today to 120 months of incarceration for having child pornography, U.S. Attorney Bill Powell announced.
Crinkey, 44, pled guilty to one count of “Possession of Child Pornography – Previous Conviction” in August 2020. Crinkey, having previously been convicted of possession of child pornography in the United States District Court for the Northern District of West Virginia in 2012, admitted to having images of child pornography in his possession in March 2020 in Ohio County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The U.S. Probation Office and the FBI investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Woman Admits Filing for Pandemic Unemployment Benefits for Incarcerated Co-defendantRead the Press Release
PITTSBURGH, PA - A resident of Clarksburg, WV, pleaded guilty in federal court to charges of conspiracy and fraud, United States Attorney Scott W. Brady announced today.
Christina Weigner, age 48, of pleaded guilty to two counts before United States District Judge William S. Stickman IV.
In connection with the guilty plea, the Court was advised that Weigner conspired to commit fraud in connection with emergency benefits and did commit fraud by filing for pandemic unemployment assistance in her co-defendant’s name.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act created the Pandemic Unemployment Assistance Program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. Individuals are eligible for these unemployment benefits if they are unemployed due to the pandemic and are otherwise able work.
On June 11, 2020, an application for pandemic unemployment assistance was electronically filed in the name of Levi Stroud, an inmate at State Correctional Institution-Greene. In the application, the filer (who was later determined to be Christina Weigner) represented that she was Stroud, that Stroud was unemployed as a direct result of the pandemic, and that Stroud could accept a job if one were offered. Additionally, Weigner made 19 separate certifications that Stroud was unemployed for particular weeks due to the pandemic, even though he was serving a state sentence.
Judge Stickman scheduled sentencing for June 8, 2021 at 10:30 a.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Weigner on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Office of Inspector General - U.S. Department of Labor conducted the investigation that led to the prosecution of Christina Weigner.
Waubay Man Charged with Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Waubay, South Dakota, man has been indicted by a federal grand jury for possession of a firearm by a prohibited person.
Levi Ambrose Locke, age 29, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on January 27, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten years imprisonment and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund.
According to the indictment, on or about October 2, 2020, Locke, having been convicted of a crime punishable by imprisonment for a term exceeding one year and being an unlawful user of a controlled substance, knowingly possessed a firearm.
The charges are merely accusations and Locke is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent 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/projectguardian.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Locke was detained pending trial. A trial date has not been set.
Washington Man Sentenced to 21months in Federal Prison for Assaulting Female Victim on the Colville Indian ReservationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Daniel Parks Conant Jr., age 28, an enrolled member of the Confederated Tribes of the Colville Reservation, was sentenced today after having pleaded guilty on July 7, 2020, to Crime on Indian Reservation, Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner. United States District Judge Thomas O. Rice sentenced Clark to a 21-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal custody.
According to information disclosed during court proceedings, Clark was driving with his then girlfriend, an enrolled member of the Confederated Tribes of the Colville Reservation. En route, Conant became upset with her when their vehicle ran out of gas. Conant began hitting her in the face with his fists several times and dragged her across the roadway. Fortunately, she was able to get away, flag down police, and report the assault to authorities.
United States Attorney Hyslop said, “The sentence imposed by the Court reflects the very serious nature of domestic assault. The United States Attorney’s Office for the Eastern District of Washington works closely with federal, state, local and Tribal law enforcement agencies to ensure that Native American Women and families are protected from violence such as this.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Tribal Law Enforcement Department of the Confederated Tribes of the Colville Reservation Police. This case was prosecuted by Richard R. Barker, Assistant United States Attorney, and Michael L. Vander Giessen, Special Assistant United States Attorney, for the Eastern District of Washington.
U.S. Attorney Muldrow’s Statement on the Murder of Two FBI Special Agents in the Line of DutyRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the fatal shootings of FBI Special Agent Daniel Alfin and FBI Special Agent Laura Schwartzenberger, and the wounding of three other agents, as they executed a federal court-ordered search warrant in Sunrise, Florida:
“On behalf of the United States Attorney’s Office for the District of Puerto Rico, I join Acting Attorney General Monty Wilkinson, FBI Director Christopher Wray, and countless others in expressing our deepest condolences to the families and colleagues of these two fallen FBI special agents. We also pray for a swift and complete recovery for the wounded agents. Today’s senseless shooting is a stark and tragic reminder of the dangers faced by our brave men and women in the FBI and throughout law enforcement who dedicate themselves to making our communities safer. Their sacrifice will not be forgotten. May their memories be eternal.”
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U.S. Attorney Fajardo Orshan’s Statement Regarding Today’s Agent-Involved Shooting in South FloridaRead the Press Release
Miami, Fl. – South Florida U.S. Attorney Ariana Fajardo Orshan today issued the following statement on the tragic agent-involved shooting in Sunrise, Florida:
“It is with heavy hearts that we mourn the deaths of FBI Special Agent Daniel Alfin and Special Agent Laura Schwartzenberger, who were shot and killed today in the line of duty while executing a federal court-ordered warrant in Sunrise, Florida. We pray for the loved ones of these Special Agents and for their three colleagues who were injured during the shooting. Today’s tragic events remind us of the bravery of federal agents, who risk their lives to protect our communities and our country. We must never forget that, just as we will never forget the ultimate sacrifice made by Special Agents Alfin and Schwartzenberger.”
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Two FBI Special Agents Killed and Three Wounded Serving a Warrant in Sunrise, FloridaRead the Press Release
Anchorage - This morning FBI Special Agent Daniel Alfin and Special Agent Laura Schwartzenberger were killed in the line of duty and three other agents were wounded while executing a federal court-ordered search warrant in a crimes against children investigation in Sunrise, Florida.
U. S. Attorney Bryan Schroder issued the following statement:
“We honor the lives of Special Agent Daniel Alfin and Special Agent Laura Schwartzenberger of the Federal Bureau of Investigation, killed this morning in Sunrise, Florida. We also hope for a full recovery of the three agents that were injured. These agents were serving a court-ordered search warrant in a case involving violent crimes against children. Protecting those who cannot protect themselves, especially children, is one of the most sacred responsibilities in law enforcement. These agents died and were injured fulfilling that duty. Let this also be a stark reminder of the dangers all law enforcement officers face every day. They risk their lives to protect us, and I remain grateful for that sacrifice.”
Ten Years in Federal Prison for Armed Bank RobberRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Christopher Lee Wheatfall-Grate, age 29, of Denver, was sentenced to ten years (120 months) in federal prison for his role in an armed bank robbery. The sentence will be followed by a three-year term of supervised release.
According to the facts in the plea agreement, on April 16, 2019, two robbers, one of whom was the defendant, entered the U.S. Bank in Westminster. Both robbers were brandishing handguns, ordering “hands up.” The defendant jumped over the teller counter and confronted two tellers. The second robber directed the bank manager to the vault and demanded access. Since more than one bank employee was necessary to open the vault, the defendant forced three other tellers to the vault area to obtain access. The robbers then fled with less than $1,400.00 and escaped in a waiting vehicle that had been stolen.
Defendant Wheatfall-Grate pleaded guilty on February 20, 2020, to one count of bank robbery and one count of brandishing a firearm during a crime of violence. As part of his plea agreement, he agreed to pay restitution to U.S. Bank in the amount of $1,318.00.
“Bank robbery is simply one of the dumbest crimes: low payout, guaranteed arrest by the FBI, and a long federal prison sentence,” said United States Attorney Jason Dunn. “Would-be bank robbers really need to reassess whether a different, and lawful, line of work would be more fruitful.”
“Monday’s sentencing of Christopher Wheatfall-Grate reflects the continuing impact federal, state and local partnerships have on combating individuals who commit armed bank robberies in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to aggressively investigate individuals who target our financial institutions and needlessly threaten their personnel to ensure they are held accountable. The FBI would like to thank the Lakewood and Westminster Police Departments, as well as the United States Attorney’s Office, for their dedication and hard work in this investigation.”
United States District Court Judge R. Brooke Jackson sentenced Wheatfall-Grate on February 1, 2021.
The Federal Bureau of Investigation, the Denver Police Department, and the Denver Sheriff’s Office conducted the investigation. Assistant United States Attorney Kurt J. Bohn handled the prosecution.
Case Number: 19-cr-00230-RBJ
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Suburban Chicago Man Pleads Guilty to Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A suburban Chicago man pleaded guilty in federal court today to conducting an illegal sports gambling business and laundering the proceeds through an offshore company.
VINCENT DELGIUDICE, also known as “Uncle Mick,” 55, of Orland Park, pleaded guilty to one count of conspiracy to commit money laundering, which is punishable by up to 20 years in federal prison, and one count of conducting an illegal gambling business, which is punishable by up to five years. U.S. District Judge Virginia M. Kendall did not immediately set a sentencing date. A status hearing was set for March 8, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.
The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.
Delgiudice admitted in a plea agreement that from 2016 to 2019 he directed an illegal bookmaking business in Chicago, Lemont, Frankfort, Orland Park, and Woodridge. Delgiudice and his agents accepted wagers on the outcome of professional football, basketball, baseball, and hockey games, as well as collegiate sporting events, the plea agreement states. Delgiudice further admitted that he retained the services of a company in Costa Rica to manage the accounting, recordkeeping, and website management of his bookmaking operation, and that in 2018 and 2019 he sent the company at least $113,625 to promote the continued operation of the illegal gambling business.