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Tuesday 8 December 2020
Cincinnati man who allegedly advertised online for babysitting jobs arrested on federal child pornography chargesRead the Press Release
CINCINNATI – A Cincinnati man alleged to be seeking babysitting jobs online was arrested yesterday afternoon and charged federally with possessing and transporting child pornography.
Ryan J. McConnell, 29, appeared in U.S. District Court for an initial appearance at 1:30pm today, at which time his case was unsealed.
According to court documents, FBI agents in El Paso, Texas, acting in an undercover capacity on Kik messenger discovered McConnell through a group called “Toddlers.” Members within this group distributed hundreds of videos and images of child rape.
It is alleged McConnell’s phone contained child pornography depicting pre-pubescent and pubescent boys engaged in sexually explicit conduct while wearing diapers.
Additionally, it is alleged McConnell actively sought work as a babysitter from approximately 2010 until present on a number of websites, including SitterCity.com, Care.com, Craigslist.org and possibly others. For example, criminal complaint documents allege McConnell was registered for three SitterCity accounts and had created at least 20 Craigslist ads offering childcare and/or babysitting services as recently as late October 2020.
The FBI believes that there are potentially more victims associated with this case. They ask anyone in the Tri-State area who may be a victim of McConnell’s alleged conduct to contact their office at 513-979-8611.
Transporting child pornography is a federal crime punishable by a mandatory minimum of five years and up to 20 years in prison. Possessing child pornography carries a potential maximum of 10 years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Chiropractor and Related Practice to Pay $175,000 as A Part of False Claims Act Liability Settlement AgreementRead the Press Release
SALT LAKE CITY, UT – U.S. Attorney John Huber announced today that Chiropractor Matthew Wood and his practice, Life Health Medical Center (“LHMC”), have agreed to pay $175,000 to resolve liability under the False Claims Act for allegations he improperly billed Medicare for the use of electro-acupuncture devices.
From November 3, 2018 through February 28, 2020, Dr. Wood and LHMC billed Medicare for an implantable neurostimulator device, a device that typically requires a surgical procedure and is performed by a surgeon in an operating room.
STIVAX® is a percutaneous auricular electro-acupuncture device. Pursuant to the manufacturer’s instructions, the device is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Other brand names for this device include NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators nor acupuncture.
LHMC also agreed to enter into an Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for a period of three years.
"Health care professionals who inappropriately bill Medicare do so at a disservice to this vital program,” said Special Agent in Charge Curt L. Muller, U.S. Department of Health and Human Services Office of Inspector General. "Working with our law enforcement partners, we will continue to protect taxpayer-funded health care programs as well as the patients who rely on them."
This settlement agreement is one of many of its kind involving electro-acupuncture billing that U.S. Attorneys’ Offices across the United States have worked diligently to resolve.
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Sandra L. Steinvoort, Chief of the Affirmative Civil Enforcement section in the Utah U.S. Attorney’s Office, handled the matter.
Boston Man Sentenced for Being a Felon in Possession of Two FirearmsRead the Press Release
BOSTON – A Boston man was sentenced yesterday for being a felon in illegal possession of firearms and ammunition on two separate occasions in Boston.
Donell Phillips, 27, was sentenced by U.S. District Court Judge Patti B. Saris to 21 months in prison and one year of supervised release. In March 2020, Phillips pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.
On May 8, 2019, police officers in Boston observed Phillips, who was wanted on outstanding warrants for unrelated charges from Lawrence District Court and South Boston District Court, holding an open container of alcohol on a public sidewalk. Phillips ran from officers and dropped a Bryco, Model 38, .380 caliber firearm and magazine containing .380 caliber ammunition on the street. Phillips was not apprehended that day, and a state court arrest warrant issued for his arrest.
On June 7, 2019, police officers in Boston observed Phillips in the rear passenger seat of a vehicle and attempted to place him under arrest when the vehicle came to a stop. Phillips again ran from officers and jumped over a wall but was apprehended after a short foot chase. In Phillips’ pocket, officers found a loaded Taurus, model PT738 TCP, .380 caliber firearm, and five plastic bags of suspected cocaine base, also known as “crack cocaine.”
Due to a prior state court conviction, Phillips is prohibited from possessing firearms or ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Black Disciples Gang Member Guilty of Illegally Possessing Guns in ColumbusRead the Press Release
COLUMBUS, Ga. – A convicted felon, who is also a member of the Black Disciples street gang, is facing a maximum 20 years in a federal prison after being arrested twice this year for illegally possessing firearms, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Roderick Phillips, 27, of Columbus, pleaded guilty before U.S. District Judge Clay Land to two counts of possession of a firearm by a convicted felon. Each count carries a maximum ten years imprisonment to be followed by three years of supervised release and a fine of up to $250,000. A sentencing date has not been scheduled. There is no parole in the federal system.
Phillips was arrested on two separate occasions in 2020 by the Columbus Police Department in illegal possession of a firearm. The first occurred on April 13, after police officers were dispatched to The Fort Church regarding a suspicious person; they had been dispatched there several times before for the same reason. Officers found Phillips standing in the breezeway of The Fort Church with a pistol; they were able to safely secure Phillips and take him into custody. Phillips was arrested a second time on October 13, during a routine traffic stop in Columbus. Officers discovered the driver had active warrants, and when they were removing the driver from the vehicle, noticed rifle ammunition and found a stolen gun under the driver’s seat. Phillips was attempting to conceal another stolen firearm, a pistol, and was taken into custody. Phillips is a member of the Black Disciples street gang and is a convicted felon. Phillips was convicted of and sentenced for aggravated assault on February 21, 2019 and possession of a firearm by a convicted felon on August 12, 2015 in the Superior Court of Muscogee County, Georgia; Phillips was convicted of and sentenced for assault in the second degree in the Superior Court of Elmore County, Alabama on April 3, 2013.
“Phillips, a gang member and a convicted felon, will spend many years in a federal prison and off the streets of Columbus. Repeat, violent offenders caught illegally possessing guns in the Middle District of Georgia will face federal prosecution and federal prison, where there is no parole,” said U.S. Attorney Peeler. “It is a priority for the U.S. Attorney’s Office and our law enforcement partners to investigate, arrest and prosecute the most violent offenders. I want to thank the Columbus Police Department and the ATF for their good work in this case and for their tireless commitment to making our communities safer.”
“Organized criminal groups, like the one Mr. Phillips belongs to, use guns to intimidate and harm members of our communities,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “In this case, Mr. Phillips was not deterred by his April 13, 2020, arrest and he was not deterred by his 2019 conviction for possession of a firearm. It is because of the efforts of our law enforcement organizations and the support of our Columbus communities that we can identify threats and stop them before any innocent person is harmed. ATF will continue to partner with the Columbus Police Department and work to make Columbus and our surrounding communities safer.”
“I am thankful for the successful prosecution of this case and I really appreciate the work of our officers and our federal partners. Also, I look forward to even more successful prosecutions as we continue to collaborate with our federal partners,” said Columbus Police Chief Freddie Blackmon.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Bergen County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nicholas Corsale-Althawabta, 19, of Oakland, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Jan. 16, 2020, Corsale-Althawabta used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. Law enforcement officers discovered numerous videos of child sexual abuse on Corsale-Althawabta’s electronic devices when he was arrested at his home today.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Belmont Man Sentenced to 72 Months for Distribution of Methamphetamine and Firearm ChargesRead the Press Release
CONCORD - Thomas Deware, 56, of Belmont, was sentenced on Monday to 72 months in federal prison for distributing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between June and September, 2019, Deware sold methamphetamine to an individual who was working with law enforcement officers. During three of these purchases, Deware possessed a handgun in a chest holder.
On October 17, 2019, law enforcement officers executed a search warrant at Deware’s residence and recovered a .45 caliber handgun that was consistent with the firearm he possessed during three of the controlled drug purchases.
“Armed drug traffickers present a very serious threat to public health and safety,” said U.S. Attorney Murray. “We are working closely with the FBI and our other law enforcement partners to identify and prosecute the dangerous drug dealers who use guns as part of their illegal activities. As Mr. Deware has learned, drug traffickers who carry guns in the Granite State will face substantial federal prison sentences.”
“Whether it’s a large-scale drug trafficking organization, or an individual like Thomas Deware distributing methamphetamine while possessing a firearm, rest assured disrupting and dismantling criminal drug trafficking operations is a critical part of our mission,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work with our law enforcement partners to put drug traffickers like Deware permanently out of business and behind bars, as we fight violent crime and work to make our neighborhoods safer.”
This matter was investigated by the Federal Bureau of Investigation with assistance from Belmont Police Department. The case was prosecuted by Assistant U.S. Attorneys Cam Le and Joachim Barth.
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Amherst Man Who Fled Country Following Search Warrant Pleads Guilty to Possession of Child PornographyRead 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 Zachary Rogers, 34, of Amherst, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that a search warrant was executed by the FBI at the defendant’s Amherst apartment on January 25, 2018. The FBI seized two computer hard drives, which contained more than 21,000 images of child pornography. Some of the images depicted prepubescent minors, as well as sexual violence. Rogers used a peer to peer networking application to receive and distribute child pornography.
Within days of the execution of the search warrant, the defendant fled to Southeast Asia, according to a note he left behind. The government received notice in October 2019 that Rogers was arrested in the country of Montenegro. Following extradition proceedings, the defendant was returned to the Western District of New York in June 2020.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia. Additional assistance was provided by law enforcement authorities in Montenegro. The Justice Department’s Office of International Affairs was responsible for securing the extradition.
Sentencing is scheduled for April 19, 2021, at 9:30 a.m. before Judge Vilardo.
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Akron man sentenced to three and a half years after threatening two people in a local business with a loaded firearmRead the Press Release
U.S. Attorney Justin Herdman announced today that Brandon Ricks, age 31, of Akron, was sentenced by U.S. District Court Judge Benita Y. Pearson to 42 months imprisonment and three years of supervised release after he pleaded guilty to one count of felon in possession of firearm and ammunition on August 27, 2020.
According to court documents, on January 24, 2020, Akron police responded to a report of a man, later identified as Ricks, brandishing a firearm and threatening a customer and the manager of a business on Copley Road in Akron. Ricks left the scene, got into his vehicle and drove away. Police later stopped Ricks in his vehicle and recovered a loaded .45 caliber pistol from the driver’s side floorboard of the vehicle.
Ricks is prohibited from possessing a firearm due to prior felony convictions of aggravated assault in 2007 and robbery in 2013 in the Summit County Court of Common Pleas.
The investigation preceding the indictment was conducted by the Akron Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant U.S. Attorney Aaron P. Howell.
4 men head to prison for 31-kilogram cocaine conspiracyRead the Press Release
LAREDO, Texas – Three Mexican men and a U.S. citizen have been sentenced for their part in a conspiracy to possess with intent to deliver a large amount of cocaine, announced U.S. Attorney Ryan K. Patrick.
Aaron Hervey Esparza Villarreal, 27, of Monterrey, Nuevo Leon, Mexico, pleaded guilty Aug. 4, admitting he was part of a conspiracy that involved smuggling cocaine hidden in a semi-truck. Mexican citizens Jose Contreras Rodriguez, 58, and Ernesto Yadir Martinez Campos, 39, pleaded guilty July 8, along with Viviano Hernandez, 41, a U.S. citizen who was residing in Mexico.
Today, U.S. District Judge Marina Garcia Marmolejo handed Hernandez a 36-month term of imprisonment. Villarreal, Campos and Rodriguez were previously sentenced to 87, 60, and 48 months, respectively. Not U.S. citizens, Villarreal, Rodriguez and Campos are expected to face removal proceedings following their sentences.
“Smuggling illegal controlled substances poses a serious risk to public health and safety in our communities,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to work aggressively with our law enforcement partners to target drug smuggling organizations that make money by bringing dangerous drugs into our neighborhoods.”
On Jan. 17, law enforcement observed two men, later identified as Rodriguez and Hernandez, working on the vehicle. They then got into a sedan, left the area and met up with an SUV. At that time, Hernandez handed over trash bags to Villarreal in the SUV.
Authorities attempted to stop the SUV, but Villarreal led them on a high-speed pursuit before crashing into the Evelyn Motel on San Bernardo Avenue. Inside the vehicle was 31 kilograms of cocaine in the trash bags.
Law enforcement also apprehended Hernandez and Rodriguez as they attempted to enter Mexico. Campos was the driver of the semi and brought the drugs into the United States from Mexico. He was also taken into custody.
Villarreal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney David Fawcett prosecuted the case.
2 men plead guilty after K-9 uncovers illegal aliens in 100+ degree trailerRead the Press Release
LAREDO, Texas – A Laredoan and a South Carolina man have both admitted guilt after a smuggling attempt leads to a stash house, announced U.S. Attorney Ryan K. Patrick.
Eloy Martinez-Carranza, 35, of Ridgeland, South Carolina, pleaded guilty today while Jose Maria Ramirez, 28, Laredo, entered his plea Nov. 24. Both admitted to conspiring to transport illegal aliens.
Martinez-Carranza approached the US-83 Border Patrol (BP) checkpoint driving a semi-truck and trailer Oct. 1. Soon after his arrival, a BP K-9 alerted to the presence of contraband in the trailer.
Authorities cut the seal on the trailer and found 40 illegal aliens, including three unaccompanied minors. The inside temperature was approximately 109 degrees. Law enforcement also observed coffee grounds scattered around the trailer.
Martinez-Carranza claimed he was traveling to Laredo from South Carolina to work as a trucker. However, he did not have a commercial driver’s license or any training as a truck driver.
Upon further investigation, authorities identified a location suspected to be the stash house for the illegal aliens. Law enforcement conducted surveillance and stopped a vehicle leaving the house. Ramirez was driver of that vehicle.
Law enforcement searched the home and found a total of 22 illegal aliens, including more unaccompanied minors.
U.S. District Judge Marina Garcia Marmolejo accepted their pleas and set sentencing for March 24. At that time, both men face up to 10 years in prison and a possible $250,000 maximum fine.
Martinez-Carranza and Ramirez have been and will remain in custody pending their sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison is prosecuting the case.
Monday 7 December 2020
Wilmington Man Receives More Than 12 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Wilmington, NC man was sentenced on Friday, December 4th to 151 months in prison for the distribution of a quantity of cocaine base (crack) and a quantity of heroin.
According to court documents, Percy Parker, 40, sold a quantity of cocaine base (crack) and a quantity of heroin to a confidential informant on September 17, 2019. Parker committed the sale of a quantity of cocaine base (crack) while on supervision after having been released from state custody in August 2019. Court documents indicate that Parker had an extensive criminal history with the State of North Carolina and at least two prior sentences for Possession with the Intent to Manufacture, Sell or Deliver Controlled Substances that carried a sentence in excess of one year. As a result, Parker qualified as a career offender.
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 Wilmington Police Department, New Hanover County Sheriff’s Department, Coastal Criminal Enterprise Task Force and the Federal Bureau of Investigation investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00185-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilkes-Barre Man Sentenced to 198 Months’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hakim Wilburn, age 50, of Wilkes-Barre, Pennsylvania, was sentenced to 198 months’ imprisonment on December 3, 2020, by U.S. District Court Judge Robert D. Mariani, for his involvement in a drug trafficking conspiracy that distributed more than a 1,000 grams of heroin and other drugs.
According to United States Attorney David J. Freed, Wilburn previously pleaded guilty to conspiring with others to distribute more than 1 kilogram of heroin (which is equivalent to more than 50,000 retail bags) between 2015 and 2018, throughout Luzerne, Lackawanna, and Wyoming Counties. Wilburn also admitted that he distributed more than 500 grams of cocaine during the conspiracy.
Wilburn’s conviction and sentence resulted from a federal investigation involving both Wilburn and his wife, Danielle Moorer. Moorer also pleaded guilty to conspiring to distribute more than 1 kilogram of heroin and is awaiting sentencing.
Judge Mariani also ordered Wilburn to serve ten years of supervised release following his prison sentence. Federal agents also seized approximately $100,000 in cash from Wilburn, which was forfeited as a resulted of Wilburn’s prosecution, along with multiple Rolex watches, vehicles, and four firearms.
The case was investigated by the Federal Bureau of Investigation, and the Wilkes-Barre Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Vince K. Leon Guerrero and Evelyn C. Tydingco Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
SAIPAN, MP - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants VINCE KOKI LEON GUERRERO, age 28, and EVELYN CHON TYDINGCO, age 28, were each sentenced in the United States District Court for the Northern Mariana Islands to 120-month terms of imprisonment for Conspiracy to Possess Over Fifty Grams of Methamphetamine Hydrochloride with the Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release following imprisonment, and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 21, 2018, law enforcement conducted a controlled delivery of a package containing suspected methamphetamine at a United States Post Office on Saipan. Approximately 118 grams of methamphetamine was previously removed from the package and replaced with a sham substance. Leon Guerrero and Tydingco, along with co-defendant Elaine Francisco Demei, received the package, which had been sent from California. The defendants were arrested shortly after leaving the scene.
At sentencing, Chief U.S. District Judge Ramona V. Manglona found that Leon Guerrero and Tydingco obstructed justice in their attempts to obtain a reduced sentencing recommendation from the government. The Court also found that the defendants had not accepted responsibility for their conduct. The defendants were therefore sentenced to the mandatory minimum term of 120 months imprisonment under federal law.
United States Attorney Shawn N. Anderson stated, “The quantity of methamphetamine seized during this investigation is shocking, particularly given the size of the community. As this case shows, multi-agency efforts are effective in combating drug trafficking in the CNMI. I applaud the hard work of our law enforcement partners in keeping our communities safe.”
This was a joint investigation by the Drug Enforcement Administration and United States Postal Inspection Service, with the assistance of the CNMI Division of Customs and Guam Customs and Quarantine. The case was prosecuted by Garth R. Backe, Assistant United States Attorney for the District of the Northern Mariana Islands.
U.S. Trustee Program Reaches Agreements with Three Mortgage Servicers Providing More than $74 Million in Remediation to Homeowners in BankruptcyRead the Press Release
Correction (12/7/2020): Per the Memorandum of Understanding it was U.S. Bank’s policy to perform annual escrow analyses for borrowers in bankruptcy.
The Department of Justice’s U.S. Trustee Program (USTP announced today that it has entered into national agreements with three mortgage servicers to address past mortgage servicing deficiencies impacting homeowners in bankruptcy. The agreements with Nationstar Mortgage, LLC (Nationstar), U.S. Bank National Association (U.S. Bank), and PNC Bank, NA (PNC) address noncompliance with the Bankruptcy Code and Federal Rules of Bankruptcy Procedure that impacted over 60,000 accounts of borrowers in bankruptcy dating back to 2011 and resulted in payment application errors; inaccurate, missing, and untimely bankruptcy filings; and/or delayed escrow statements.
“Homeowners in bankruptcy are entitled to receive proper and timely notices and to have their payments properly accounted for, consistent with the Bankruptcy Code and Rules,” said USTP Director Cliff White. “The failure of mortgage servicers to comply with those requirements compromises the integrity of the bankruptcy system and the ability of homeowners to receive a fresh start.”
Collectively, the USTP’s agreements with Nationstar and U.S. Bank, and the letter of acknowledgement with PNC, provide over $74 million to remediate over 76,000 historical servicing errors impacting borrowers in bankruptcy. The agreements also require the servicers to implement improvements in their bankruptcy operations to ensure that the errors do not recur. Most of the remediation and corrective actions have already been taken by the servicers.
Historical Servicing Deficiencies
Nationstar and PNC at times failed to run annual escrow analyses for borrowers in bankruptcy. Further, Nationstar, U.S. Bank, and PNC failed to (1) file timely and accurate notices of changes to bankruptcy borrowers’ ongoing mortgage payments, (2) file timely and accurate notices of fees assessed during borrowers’ bankruptcy cases, and (3) provide an accurate final accounting of the payments made by the borrower during the bankruptcy case as required under the Bankruptcy Code and Rules.
In addition to these deficient servicing practices, U.S. Bank and PNC failed to accurately apply borrower payments in bankruptcy cases. And U.S. Bank failed to file timely and accurate proofs of claim in bankruptcy cases.
Monetary Remediation and Changes to Internal Procedures
The servicers have or will provide account credits and refunds to impacted bankruptcy borrowers. Nationstar has provided more than $40 million in credits and refunds. U.S. Bank has, or will, provide at least $29 million in credits and refunds, and has waived approximately $43 million in fees and charges across its mortgage servicing portfolio, including for borrowers in bankruptcy. PNC provided close to $5 million in credits and refunds, as well as additional remediation in the form of lien releases and debt forgiveness.
In addition to monetary and other remediation, Nationstar, U.S. Bank, and PNC each made changes to their internal procedures to prevent the recurrence of the deficient bankruptcy servicing practices. These changes included enhancements to computer platforms, improvements to vendor and employee training and oversight, and implementation of quality control processes to ensure the accuracy and timeliness of filings in bankruptcy cases and escrow analyses for borrowers in bankruptcy.
No Effect on Non-Parties
These agreements do not affect the rights of any homeowner or other third party, including other governmental agencies. Bankruptcy borrowers with questions may contact the servicers at:
Nationstar Mortgage LLC at 833-981-2112,
PNC Bank at 855-245-3814, and
U.S. Bank at 888-724-7362.
The agreements are posted at https://www.justice.gov/ust/national-mortgage-settlements.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more about the Program at: https://www.justice.gov/ust.
U.S. Attorney’s Office Files Sexual Harassment Lawsuit Against Chicopee LandlordRead the Press Release
BOSTON – The U.S. Attorney’s Office filed a lawsuit today alleging that a property manager in Chicopee violated the Fair Housing Act by subjecting female tenants to sexual harassment.
The complaint alleges that Salazar dos Santos, 79, of Chicopee, who has managed residential rental properties in and around Chicopee since at least 2008, subjected female tenants to unwelcome sexual contact, including coercing them to perform oral sex and touching intimate parts of their bodies. Dos Santos allegedly exposed his genitals to female tenants, locked tenants in his office, implicitly offered to grant tangible benefits, such as rent payment plans, in exchange for engaging in sexual acts with him, and threatened tenants who resisted or objected to his unwelcome sexual harassment. The owners of the properties, two family trusts, are alleged to be liable for Salazar dos Santos’s conduct.
“No one should be forced to provide sexual favors, or otherwise endure sexual harassment, in exchange for housing,” said United States Attorney Andrew E. Lelling. “Sexual harassment is illegal under the Fair Housing Act and, especially during a time of increased unemployment and financial stress, my office will aggressively enforce this law to protect hard working women and others subjected to this kind of abusive conduct.”
“It is appalling that any woman seeking safe, affordable housing would be met with demands for sex, sexual propositions, unwanted touching, and threats. Such abusive conduct by landlords and property manages violates federal law and shocks the conscience,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and threats by their housing providers, and the Justice Department will work resolutely to hold such predators accountable and to obtain relief for their victims.”
The lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order restricting his contact with tenants. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
This lawsuit is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division in coordination with U.S. Attorney’s Offices. The goal is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing.
Anyone with questions or concerns regarding this case should call the U.S. Attorney’s Office at 888-221-6023 or email [email protected].
U.S. Attorney Lelling and AAG Dreiband made the announcement today. Assistant U.S. Attorneys Torey B. Cummings and Christopher Morgan, of Lelling’s Civil Rights Unit, and the Springfield Branch Office respectively, are handling the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney DeVillers launches fentanyl awareness campaignRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today the Fentanyl in Narcotic Drugs Awareness Project (FIND Awareness Project), a messaging campaign aimed at warning the public that any drug cut with fentanyl is deadly.
In 2020, at least 84 percent of overdose deaths in Franklin County involved fentanyl. From January through June 2020, overdoses increased more than 73 percent when compared to the same time period in 2019.
The FIND Awareness Project includes billboards that will be placed in the Columbus zip codes experiencing the highest rates of overdose deaths. The billboards warn users of the recently increasing prevalence of fentanyl in stimulants like cocaine and methamphetamine and in pressed pills like street Oxy and Xanax. The signs also encourage the public to learn more about treatment and resources at FINDawarenessproject.com and FindTreatment.gov.
Targeted social media ads and sites will link individuals to a treatment database searchable by community, overdose statistics, information about law enforcement initiatives and outreach, and a way to report suspected drug activity.
“We will go after the cartels from every angle, and we will continue to investigate and prosecute high-level drug dealers,” U.S. Attorney DeVillers said. “At the same time, we also hope to reduce demand for their products by encouraging people to save their lives and seek treatment. Addiction does not have to be deadly.”
The U.S. Attorney’s Office created the campaign with funding from the Ohio High Intensity Drug Trafficking Area (HIDTA) and assistance from Franklin County Coroner Dr. Anahi Ortiz and Columbus City Attorney Zach Klein.
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Two Virgin Islands Women Sentenced to Federal Prison Resulting from Their Involvement in a Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
St. Thomas, USVI – Nisha Brathwaite, age 39, and Darleen Thompson, age 38, both of St. Croix, Virgin Islands were sentenced last Thursday and Friday, respectively for conspiracy to defraud the United States, U.S. Attorney Gretchen C.F. Shappert announced. Brathwaite was sentenced to 21 months in prison, 3 years supervised release and ordered to pay a special assessment of $100.00, plus restitution in the amount of $57,360.00. Thompson was sentenced to 21 months in prison, 3 years supervised release and ordered to pay a special assessment of $100.00, plus restitution in the amount of $62,997.53.
Both women were charged in a ten-defendant, 119-count Bill of Indictment returned by the federal grand jury in September of 2016. Both pled guilty in January 2020. According to the plea agreements and stipulated documents filed in federal court, from January 2011 to July 2012, both women and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. They and their co-conspirators caused income tax returns for tax years 2010 and 2011 to be electronically filed in individuals’ true names and actual social security numbers; however, the defendants and their coconspirators falsified the individuals’ income earned, tax withholding amounts, credits, and other information, and thereby claimed refunds to which they were not entitled.
As a result of the scheme, $57,360 was deposited into Brathwaite’s bank account and $62,997.53 was deposited into Thompson’s bank account. The case is the result of years of investigative work by the Internal Revenue Service, Criminal Investigations who conducted a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere and determined that Internal Revenue Service lost hundreds of thousands of dollars from the scheme. Of ten defendants charged in the Virgin Islands tax fraud scheme, Brathwaite and Thompson are the second and third to be sentenced. Four others have entered guilty pleas and are pending sentencing. The remaining three are pending a trial date.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews, Jr. and Melissa Ortiz.
Two Central Illinois Men Indicted on Charges of Fraud Related to Small Business Administration COVID-19 Disaster Loan ProgramRead the Press Release
SPRINGFIELD, Ill. – A grand jury has returned indictments in unrelated cases against two Central Illinois men, one from Springfield and the other from Beardstown, that allege fraud in connection with major disaster or emergency benefits available through the Small Business Administration.
The indictment against Charles J. Jones, 25, of the 500 block of N. 13th St., Springfield, Ill., alleges that in June 2020, Jones submitted an application for an Economic Injury Disaster Loan for a business, known as “Just Like Jilla,” which did not exist. The indictment alleges that Jones made false representations on the loan application including that the business had existed more than one year, that it employed 11 people, and, had gross revenues of $1.2 million. In addition, Jones allegedly denied having been convicted of a felony within five years of when he completed the loan application. The SBA wired approximately $160,000 in loan proceeds into Jones’ bank account. Jones is also charged with four counts of wire fraud.
A second indictment, against Peter Garrido-Baez, 44, of the 500 block of E. 3rd St., Beardstown, Ill., alleges that Garrido-Baez applied for and received two SBA Covid-19 related loans for “Garrido Apartments;” one for approximately $26,000 and one for approximately $72,500. After the loan proceeds were received, Garrido-Baez allegedly transferred $72,500 into a different account at a local bank and then had $79,800 wired from the local bank to a bank account in the Dominican Republic. The applicable loan agreement mandates that loan proceeds be solely used as working capital to alleviate economic injury caused by disaster and expressly prohibits using any portion of the loan proceeds to relocate outside the disaster area. Garrido-Baez allegedly wired the money to the Dominican Republic for construction and building apartment buildings in the Dominican Republic. Garrido-Baez is also charged with seven counts of wire fraud and one count of money laundering.
Each of the men has been issued a summons to appear on Jan. 5, 2021, for arraignment in federal court in Springfield. If convicted, the maximum statutory penalty for fraud in connection with major disaster or emergency benefits is up to 30 years in prison. The maximum penalties for both mail fraud and money laundering is up to 20 years in prison.
The charges were investigated by the Internal Revenue Service, Criminal Investigation Division as part of a Central Illinois Task Force directed at combatting COVID-19 related fraud. Other participating agencies in the task force include the Small Business Administration, Office of Inspector General; U.S. Secret Service; Federal Deposit Insurance Corporation, Office of Inspector General; U.S. Postal Inspection Service; U.S. Department of Labor, Office of Inspector General; and, the Federal Bureau of Investigation. First Assistant U.S. Attorney Doug Quivey is representing the government in the case prosecutions.
Covid-19 disaster relief and enhanced unemployment benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Bay Area Residents Charged in Nationwide Scheme to Engineer Fraudulent Credit and Debit Card RefundsRead the Press Release
SAN FRANCISCO – Robert Kohlman and Gabriel Riddle have been charged in a criminal complaint with wire fraud in connection with a scheme to use dozens of fraudulently programmed credit and debit terminals to make unlawful transactions, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The criminal complaint, filed August 19, 2020, was accompanied by an affidavit filed by an FBI agent. According to the affidavit, Kohlman, 38, and Riddle, 34, both of Novato, Calif., obtained more than 90 point-of-sale terminals, which are devices used by merchants to read and process credit or debit cards to accept payments for goods or services. Kohlman and Riddle then programmed the terminals to believe they were associated with an actual merchant, and then submitted requests for refunds even though there was no initial purchase. The merchant’s bank or processing company, believing a legitimate refund was being requested, then transmitted money to accounts controlled by Kohlman and Riddle. Kohlman and Riddle then depleted the accounts by making purchases, making ATM cash withdrawals, or purchasing money orders. The affidavit indicates that Kohlman and Riddle initiated at least 100 fraudulent refunds that transferred more than $400,000 to their personal bank accounts.
Kohlman and Riddle allegedly used this scheme to defraud numerous victims around the country, including a U.S. Army Hospital dining facility. The affidavit describes transactions involving the dining facility at the Winn Army Community Hospital at Fort Stewart in Fort Stewart, Georgia, which is operated by the United States Army. According to the affidavit, the dining facility was tricked into issuing a refund worth $7,925.03 on December 3, 2018, to a debit card controlled by Riddle and a second refund, on December 16, 2018, worth $9,989.39 to a debit card controlled by Kohlman.
The defendants were charged with wire fraud, in violation of 18 U.S.C. § 1343.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. The defendants face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Defendants were arrested on August 26, 2020 in Las Vegas, Nevada, and made their initial appearance in federal court there on August 27, 2020. They made their initial appearance in San Francisco on November 27, 2020. Defendants’ next scheduled appearance is on December 16, 2020 for a status conference before the Honorable Laurel Beeler, U.S. Magistrate Court Judge.
Assistant U.S. Attorneys Kevin Rubino and Ross Weingarten are prosecuting the case with the assistance of Morgan Byrne. The prosecution is the result of an investigation by the FBI, along with the Army Criminal Investigation Command, Major Procurement Fraud Unit, and the Marin County Coordination of Probation Enforcement Team.
Tulsa Woman Pleads Guilty to Strangling Her Intimate Partner and to Robbery in Indian CountryRead the Press Release
On Dec. 4, 2020, a Tulsa woman admitted in federal court to assaulting her intimate partner during an argument in 2016 and to using force to steal a vehicle in 2019, announced U.S. Attorney Trent Shores.
Lakota Ray Scott, 33, pleaded guilty to domestic assault by strangulation in Indian Country and to robbery in Indian Country before U.S. District Gregory K. Frizzell.
“Domestic violence survivors are one of the most resilient groups of victims I’ve ever seen. I’m so thankful that the victim in this case spoke up so that we could help her. The abuser, Lakota Scott, acted recklessly and endangered the lives of others, beyond just her partner, during the two separate incidents to which she pleaded guilty. Thankfully all of the victims have recovered,” said U.S. Attorney Trent Shores.
During Friday’s hearing, Scott explained that on March 16, 2016, she had a verbal argument with her girlfriend then took off in her girlfriend’s car without permission. Her girlfriend called police to report the car stolen. When Scott returned to the apartment, a second argument ensued. When the victim tried to leave, Scott blocked the front door then slapped the victim’s phone out of her hand as she attempted to call 911. As the victim tried to flee the apartment, Scott tackled her in the living room and started strangling the victim. She then grabbed a flat screen television and smashed it over the victim’s head twice. Then as Scott ran to the bedroom, the victim fled the home where she was met by arriving police officers.
Scott further admitted to stealing a pick-up truck that was idling while the owner was just a few feet away on Jan. 31, 2019. When the owner saw the defendant in his truck, Scott locked the doors and put the vehicle in drive. The owner jumped into the bed of the truck and Scott drove off erratically and in a dangerous manner. The victim was thrown around in the truck bed during the ride and believed that Scott was trying to intentionally throw him out of the bed of the truck. The victim’s hands, legs, chest and head were injured. Scott then crashed the truck into a fence and ran away. She was eventually found in a parking garage, hiding from authorities.
As part of the plea agreement, the defendant and the United States agreed to a sentence of three years in federal prison. The government will also ask that the defendant take part in a drug and alcohol treatment program while imprisoned. U.S. District Judge Frizzell will make the final sentencing determination at a hearing set for March 9, 2021.
The FBI and Tulsa Police Department conducted the investigations. Assistant U.S. Attorney Gina S. Gilmore is prosecuting the case. Ms. Gilmore is a prosecutor from the U.S. Attorney’s Office in the Western District of Texas. She 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 has 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.
Theft at Winnfield Firearms Store Results in Federal Prison Sentence for Winnfield ManRead the Press Release
ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Joe Louis Anderson, 53, of Winnfield, Louisiana was sentenced in federal court for stealing firearms from a local store.
United States District Judge Dee D. Drell sentenced Anderson to 42 months in prison, followed by 3 years of supervised release, for theft of firearms from a federal firearms dealer. Anderson was also ordered to pay restitution in the amount of $5,000. Evidence introduced in court revealed that during the early morning hours of July 25, 2019, Anderson unlawfully entered the Governor’s Affair store and stole five firearms from the firearm display case. The store had surveillance video of Anderson stealing the firearms and leaving the store with them.
Anderson has a lengthy criminal history, with previous convictions for second degree burglary and possession of stolen vehicle (1991); possession of stolen vehicle and larceny (1992); second degree burglary and knowingly concealing stolen property (1995); larceny of an automobile (1997); and possession of contraband in penal institution (1998).
The ATF and Winnfield Police Department investigated the case. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Man Pleads Guilty to Felony in $375,000 Investment SchemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Leonard Theodore Kern, 64, of Plano, Texas, entered a guilty plea to obstruction of justice for his role in an investment scheme that resulted in the loss of over $375,000 to a West Virginia woman.
“Kern’s scheme resulted in a significant loss to the victim,” said United States Attorney Mike Stuart. “This case serves as a reminder to all of us that if it sounds too good to be true, it probably is. Fortunately, as a result of his plea agreement, Kern will be required to pay restitution.”
Kern faces up to 20 years in prison when he is sentenced on March 29, 2021, and he will be required to pay restitution to the victim.
Kern convinced the victim to invest $375,000 in a “Private Placement Platform” with two other individuals by promising a low risk financial transaction for an exclusive group of investors and an abnormally high rate of return over a period of just two months. Several years later, the victim received no return on the investment. As part of a federal grand jury investigation, grand jury subpoenas were served upon a company owned and controlled by Kern requesting documentation and records related to the investment transaction. At the plea hearing, Kern admitted that he intentionally obstructed the grand jury investigation by concealing hundreds of documents responsive to the grand jury subpoenas.
The Federal Bureau of Investigation (FBI) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Joshua C. Hanks are handling the prosecution.
Individuals should consult with a licensed investment broker prior to responding to solicitations for investments into “Platform” trading investments. The FBI has participated in numerous investigations of fraud activity commonly referred to as Platform Trading, Private Platform Programs (PPPs), Prime Bank Trading, or Medium-Term Note Trading Programs. In these schemes, perpetrators falsely represent their ability to offer above-average market returns with below-market risk through the trading of bank instruments.
Several common characteristics include claims that: (1) investor funds can be placed in a bank account and then used, without risk, to trade bank debentures or other financial instruments; (2) invested funds can be used to lease or rent U.S. Treasury Obligations and then use these same leased securities as collateral for further trading programs; (3) trading Medium Term Notes (MTNs), Prime Bank Notes, or any other bank instruments, on a riskless basis, will yield above market returns; (4) Letters of Credit or Standby Letters of Credit can be discounted or traded for profits; (5) certain high-yield foreign trading programs are sanctioned or supported by the Federal Reserve, International Monetary Fund, International Chamber of Commerce, or other U.S. or international agencies; (6) special connections to the Federal Reserve or some other internationally renowned organization such as the United Nations, the IMF or the World Bank; (7) benevolent, humanitarian, or charitable projects; (8) the need for extreme secrecy and nondisclosure agreements; (9) banking and regulatory officials will deny knowledge of such instruments; (10) these investment opportunities are by invitation only, available to only a handful of special customers, and historically reserved for the wealthy elite; (11) the financial instruments are too technical or complex for non-experts to understand.
In general, investment programs that purport to offer an introduction to secret investment markets, which offer above-market rates of return with below-market rates of risk for privileged customers with special access, are fraudulent. There are no secret markets in Europe or in North America in which banks trade securities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00183.
Follow us on Twitter: SDWVNews and USAttyStuart
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Schenectady Man Sentenced to 120 Months for Crack Cocaine DistributionRead the Press Release
ALBANY, NEW YORK – Robert J. Chaires, age 40, of Schenectady, New York, was sentenced today to 120 months in prison for twice distributing crack cocaine in 2017.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). Chaires admitted that on January 20, 2017 and again on March 2, 2017, he sold more than 28 grams of cocaine base (a/k/a crack cocaine) to a buyer in Schenectady.
Senior United States District Judge Frederick J. Scullin, Jr. also sentenced Chaires to 4 years of supervised release, to begin after his term of imprisonment.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
San Francisco Substitute Teacher Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Marc Nunez made an initial appearance today in federal court on a criminal complaint for possession of child pornography, announced David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. Nunez made his initial appearance before U.S. Magistrate Judge Laurel Beeler.
According to the complaint filed December 1, 2020, and unsealed today, on August 27, 2019, agents from HSI served a federal search warrant at a residence in San Francisco and seized, among other things, a cell phone containing communications between the person whose residence was being searched and Nunez. As the investigation proceeded, federal agents uncovered additional evidence that Nunez was a substitute teacher, after school helper, and kindergarten assistant at a private elementary school for boys in San Francisco. In addition, federal investigators discovered Nunez corresponded with several individuals with whom he traded sexually explicit files of children. The complaint further describes cell phone messages and Skype messages in which Nunez received and discussed pornographic images of minors. Nunez believed that at least one of the persons with whom he was corresponding was a minor.
Nunez is charged with possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted of the charge, Nunez faces a maximum statutory sentence of 10 years in prison, 3 years’ supervised release, and a $250,000 fine.
Magistrate Judge Laurel Beeler ordered Nunez released on a $50,000. Nunez’s next court appearance is scheduled for December 15, 2020, before Judge Beeler, for a bond hearing.
Assistant U.S. Attorney Ankur Shingal is prosecuting the case with the assistance of Alexa Leisure. The prosecution is the result of an investigation by the HSI with assistance from the San Francisco Police Department, the office of the Contra Costa District Attorney, and the United States Secret Service.
San Fernando Valley Man Admits to Fraudulently Obtaining $655,000 in COVID-19 Relief PPP LoansRead the Press Release
LOS ANGELES – A Northridge man pleaded guilty today to a federal criminal charge that he fraudulently obtained $655,000 in Paycheck Protection Program (PPP) loans for his companies by submitting fake tax documents and false employee information.
Steven R. Goldstein, 36, pleaded guilty to a single-count information charging him with fraud in connection with major disaster or emergency benefits.
According to his plea agreement, Goldstein knowingly submitted applications for PPP loans to banks that contained false statements about the number of employees and the amount of employee payroll expenses.
On May 2, Goldstein submitted a $355,000 PPP loan application to Bank of America for a company called Beagle Real Estate Investments. On the application, Goldstein listed false information that the company’s average monthly payroll was $120,000 and it employed a total of 43 workers. Goldstein also submitted fabricated tax documents that falsely stated that Beagle Real Estate’s payments to its employees in 2019 totaled $1,704,000, and that the company reported $308,000 in wages paid to 13 employees during the first quarter of 2020. The fraudulent loan application was approved and, on May 4, Bank of America disbursed $355,000 of PPP loan proceeds to a bank account that Goldstein provided in his application.
Goldstein further admitted to knowingly submitting at least one additional fraudulent PPP loan application, which resulted in Bank of America disbursing $300,000 to him. That loan application also contained similar false statements and fabricated tax documents. When law enforcement interviewed Goldstein in October, he admitted to submitting multiple PPP loan applications that contained false information about employees and payroll as well as fake tax documents.
The actual loss from the two approved loans was $655,000, according to the plea agreement.
United States District Judge Stanley Blumenfeld Jr. has scheduled a March 30, 2021 sentencing hearing, at which time Goldstein will face a statutory maximum sentence of 30 years in federal prison.
Goldstein’s business partner, Raymond Magana, 39, of Santa Clarita, was charged in a criminal complaint in October with fraudulently obtaining PPP loans and is expected to surrender to federal authorities in the coming days.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This matter was investigated by IRS Criminal Investigation and the Small Business Administration Office of Inspector General.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
San Bernardino County Man Who Recorded Child Pornography on His Social Media Accounts Sentenced to 25 Years in Federal PrisonRead the Press Release
RIVERSIDE, California – An Inland Empire man was sentenced this afternoon to 300 months in federal prison for producing dozens of sexually explicit images and videos of children, including videos that were recorded on his Snapchat and Facebook social media accounts.
Chaunta A. Bashir, a.k.a. “taytheonly,” 27, of Chino, was sentenced by United States District Judge Jesus G. Bernal. Bashir pleaded guilty on July 15 to one count of production of child pornography.
From June 2015 to October 2018, Bashir produced multiple images of child pornography. Specifically, in October and November 2017, he took sexually explicit images and videos of a 3-year-old victim, including of himself sexually abusing the child.
In the spring and summer of 2018, Bashir produced additional sexually explicit images and videos of children ranging in age from 4 years to 14 years. Bashir recorded some of those videos on his Facebook and Snapchat social media accounts.
During a search of Bashir’s home in October 2018, law enforcement officials recovered more than 600 images and videos from his electronic devices that depicted minors engaged in sexually explicit conduct.
This matter was investigated by Homeland Security Investigations with assistance from the Chino Police Department.
This case was prosecuted by Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office.
Robbery spree leads to multiple federal felony charges for Savannah man, guilty plea for co-defendantRead the Press Release
SAVANNAH, GA: A Savannah man faces a minimum of 87 years in prison if convicted of a series of armed robberies of convenience stores in which a co-defendant has pled guilty.
Garnell Dewitt Quarterman, 30, of Savannah, made his initial appearance in federal court Monday, Dec. 7, after a federal grand jury charged him with Conspiracy to Interfere with Commerce by Robbery; 12 counts of Interference with Commerce by Robbery; 12 counts of Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Several of the charges carry a penalty of up to life in prison, and there is no parole in the federal system. U.S. District Court Magistrate Judge Christopher L. Ray ordered Quarterman be detained in custody.
“The armed robbery of a business is an especially dangerous crime, and often is traumatic or even deadly for the victims,” said U.S. Attorney Christine. “We’re grateful to our law enforcement partners for putting an end to this series of violent crimes.”
As described in the 26-count indictment, Quarterman is charged with 12 armed robberies or attempted armed robberies in which a firearm was brandished. The armed robberies spanned from November 9, 2019 through January 6, 2020, and they occurred at the Marathon gas station at 2511 Skidaway Road, the Savannah Mart at 1300 E. DeRenne Avenue, the Sunoco gas station at 7261 Skidaway Road, the Pump-N-Go Food Mart at 2016 Skidaway Road, the Gemco at 4906 Paulsen Avenue, the Discount Market at 1516 Montgomery Street, the Waters Market at 4402 Waters Avenue, the Circle K at 8900 White Bluff Road, and the Chu’s Convenience Mart at 2606 Highway 80 in Garden City.
Criminal indictments contain only charges; a defendant is presumed innocent unless and until proven guilty.
Quarterman’s co-defendant, Malic Stephens, 26, of Savannah, pled guilty on November 9, 2020, to one count of Conspiracy to Interfere with Commerce by Robbery and awaits sentencing. The charge carries a possible penalty of up to 20 years in prison.
Savannah Police officers identified and arrested Quarterman at a residence on Jan. 17; Stephens was arrested Jan. 23 at his residence. Both men remain in custody.
“Any time an individual takes a gun into a place of business to rob it, victims are traumatized and there is a potential for tragic consequences,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “If convicted, Quarterman faces significant prison time, thanks to the combined efforts of our local and federal law enforcement partners.”
The case is being investigated by the FBI’s Southeast Georgia Violent Crimes Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Savannah Police Department, Garden City Police Department, and Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Pair Sentenced for Two Counts of Rape in the National ParkRead the Press Release
KNOXVILLE Tenn. – On December 7, 2020, Dusty William Oliver, 41, and Richard Graham, 49, both from Blaine, were sentenced by the Honorable Judge Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville, for raping two men in the Great Smoky Mountains National Park (GSMNP).
Oliver and Graham pleaded guilty to an indictment charging them with two counts of aggravated sexual abuse in violation of 18 U.S.C. § 2241(a) and 2. Oliver was sentenced to 300 months in prison, followed by 15 years’ supervised release. Graham was sentenced to 230 months in prison, followed by 15 years’ supervised release. Both Oliver and Graham will be required to register with state sex offender registries and comply with special sex offender conditions during their supervised release.
In June 2012 and again in November 2015, Oliver and Graham raped two different male victims in the Great Smoky Mountains National Park. The defendants preyed on homeless, drug-addicted, heterosexual males, who they believed were unlikely to report their attacks to law enforcement. After quickly befriending their victims on the roadside in Knoxville, they took the victims to the Great Smoky Mountains National Park. Each victim was tricked into hiking unfamiliar trails in pitch darkness, whereon they were raped by both defendants at once.
The defendants escaped prosecution for their crimes until a tenacious investigation by special agents with the U.S. Department of Interior National Park Service in the Great Smoky Mountains National Park developed prosecutable cases against them. "The defendants exploited vulnerable victims; however, the victims were brave enough to come forward and report their attacks. The victims’ cooperation throughout the investigation and prosecution was necessary, and I commend them for seeing it through. The hefty sentences should serve as a warning to others that one will pay heavily for committing violent crimes in our national parks," said U.S. Attorney J. Douglas Overbey.
"I want to express my thanks to ISB investigators, park rangers, and the Blount County Sheriff’s Office for their perseverance and hard work that led to the conviction and sentencing of these two men responsible for heinous crimes within the park," said Superintendent Cassius Cash. "To ensure that we’ve heard the voices of all victims, investigators continue to welcome any information about additional assaults that may be associated with Graham and Oliver."
The criminal indictment was the result of an investigation by the U.S. Department of Interior National Park Service for the GSMNP.
Assistant United States Attorney Jennifer Kolman represented the United States.
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Orlando Pair Sentenced for Straw Purchasing RiflesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Jesmarilys Montesinos (22, Orlando) to one year in federal prison for making false statements relating to firearms purchases. On October 8, 2020, her co-defendant, Steven Usma (22, Orlando), was sentenced to three years and one month in federal prison for aiding and abetting the making of false statements relating to firearms purchases. Both had pleaded guilty earlier this year.
According to court documents, in February 2018, Usma and Montesinos traveled together from Orlando to Fort Myers to attend a gun show. At the gun show, Montesinos purchased 12 rifles for Usma, at Usma’s request, after Usma had failed a background check when he attempted to buy firearms. At the time, Usma was prohibited from purchasing or possessing firearms under Florida state law. In connection with her firearms purchases, Montesinos twice falsely certified that she was buying the rifles for herself, when she knew she was actually purchasing the firearms for Usma.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Ohio man sentenced for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Kenyatta Banks, Jr., of Canal Winchester, Ohio was sentenced today to 57 months of incarceration for his role in a drug conspiracy that spanned several states, U.S. Attorney Bill Powell announced.
Banks, also known as “Yatta,” age 30, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in August 2020. Banks admitted to working with others to traffic methamphetamine, cocaine and heroin in Wetzel County, Ohio, Georgia, as well as into the southern district of West Virginia.
Assistant U.S. Attorneys Robert H. McWilliams, Jr. and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge John Preston Bailey presided.
Notification Advisory for Victims Affected by ATM-Skimming from August 2019 to July 2020Read the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Marcus Catalin Rosu, 39, was charged in an Information for possession of access device-making equipment in connection with an alleged ATM skimmer fraud scheme affecting hundreds of bank and credit union customers in Alaska and elsewhere.
According to public court filings, Rosu became the subject of a federal investigation when the United States Postal Inspection Service intercepted a package containing hundreds of fraudulent banks cards in February 2019. USPIS and the Alaska State Troopers investigated allegations of ATM-skimming occurring at credit unions in Anchorage and the Mat-Su Valley. Following the investigation of a report of ATM-skimming occurring at a Matanuska Valley Family Credit Union in Willow, law enforcement arrested Marcus Rosu at a rental car company in July 2020. After his arrest, law enforcement searched Rosu’s hotel room. Hidden above the hotel room’s ceiling tiles, they found more than 1,000 magnetic strip cards, a laptop computer and a magnetic strip reader-encoder.
Due to the large number of potential victims in this case, United States Magistrate Judge Matthew M. Scoble issued an order permitting the government to employ alternative victim notification procedures so that any member of the community at large who believes they may be a crime victim is made aware of their potential rights.
The government is asking that members of the community who believe they may be a victim of Rosu’s criminal activities, to contact the Victim-Witness Unit at the U.S. Attorney’s Office, District of Alaska at (907) 271-3041. The Victim-Witness Program of the U.S. Attorney’s Office, District of Alaska, provides information, services, and support to individuals during federal prosecutions.
Case updates will be provided on the U.S. Attorney’s Office, District of Alaska website at https://www.justice.gov/usao-ak/case-updates.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. A virtual hearing in this case is scheduled for January 5, 2021 at 10 a.m.
This case was the product of an investigation conducted by the United State Postal Inspection Service, the Alaska State Troopers, with assistance from the Airport Police. This case is being prosecuted by Assistant U.S. Attorney Karen Vandergaw.
Nine Offenders Arrested During GBI-Led Roundup in Albany, GeorgiaRead the Press Release
ALBANY, Ga. – A multi-agency press conference held today at the Law Enforcement Center in downtown Albany announced a GBI-led arrest operation in the Albany-area last month had led to the capture of nine offenders, several of whom were charged with violent crimes.
The arrest operation focused on Violent Repeat Offenders (VROs) with outstanding arrest warrants in the Albany-Dougherty County area and was conducted on Wednesday, November 18, 2020, resulting in a total of nine arrests. Led by the GBI Southwestern Regional Drug Enforcement Office, the arrest operation included members of the Albany Police Department, Dougherty County Sheriff’s Office, Dougherty County Police Department, Lee County Sheriff’s Office, Georgia Department of Community Supervision-Albany, Poulan Police Department, DEA Columbus Field Office, FBI Albany Field Office, U.S. Marshals Service Fugitive Task Force and ATF Macon Field Office. The operation was also supported by the Dougherty County District Attorney’s Office and the U.S. Attorney’s Office for the Middle District of Georgia. The operation is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. In addition to the arrest of individuals charged with violent crimes, other non-violent suspects with outstanding arrest warrants in the Albany area were taken into custody.
All defendants are presumed innocent unless and until proven guilty in a court of law. The following individuals were arrested during the operation and are facing state charges:
Mareo Jackson, 20, of Albany is charged with murder;
Russell Roberts, 30, of Albany is charged with two counts of aggravated assault;
Terry Burnette, 58, of Albany is charged with probation violation for manufacturing methamphetamine;
Jerrell Leconte Stroud, 26, of Albany is charged with possession of a firearm by a convicted felon, aggravated assault, gang participation and violation of probation;
Jovonta Frazier, 27, of Albany is charged with failure to appear for court;
Johnnie Fletcher, 64, of Albany is charged with shoplifting;
Corey Jenkins, 33, of Albany is charged with probation violation.
During the search for other suspects, an apparent indoor marijuana growing operation was discovered at 504 Johnson Road, Albany. A search warrant was obtained for the residence resulting in the recovery of several suspected marijuana plants and seven firearms (one shotgun, two rifles and four handguns). This investigation is ongoing. All defendants are presumed innocent unless and until proven guilty in a court of law. Agents arrested the following two individuals at the residence, both charged with state crimes:
Willie Ernest Robinson, 26, of Albany, is charged with manufacturing marijuana and possession of a firearm during the commission of a felony;
Pamela Rose Lucy Verney, 24, of Albany is charged with manufacturing marijuana and possession of a firearm during the commission of a felony.
DOJ’s Project Safe Neighborhoods (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.
The GBI Southwestern Regional Drug Enforcement Office is in Albany and services 42 counties in Southwest Georgia. The office is the collaborative effort between the GBI, Albany Police Department, Dougherty County Sheriff’s Office, Dougherty County Police Department, Americus Police Department, Worth County Sheriff’s Office and Colquitt County Sheriff’s Office. The Southwestern Regional Drug Enforcement Office is partially funded with Byrne/JAG grant funds.
Crime tips can be submitted directly to the GBI by calling 1-800-597-TIPS(8477), online at https://gbi.georgia.gov/submit-tips-online, or by downloading the See Something, Send Something mobile app. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Navy Mechanic Admits Sexually Assaulting 7 Young Girls, Producing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael T. Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office, and Chief Louis J. Fusaro, Jr. of the Town of Groton Police Department, announced that RANDALL TILTON, 31, last residing in Groton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to child pornography production offenses related to his sexual of abuse of seven young girls in three states over the course of several years.
According to court documents and statements made in court, on November 1, 2019, Tilton was arrested on state sexual assault charges after he admitted in an interview with Town of Groton Police that he had sexually assaulted several minor victims, and that he had recorded some of the sexual assaults. Subsequent examination of a laptop, tablet, cellphone and two flash drives seized from Tilton revealed that, beginning in approximately 2014, Tilton sexually assaulted seven girls who were between the ages of four months and eight years old. Tilton photographed and video recorded many of these sexual assaults. Some of the images depict a minor victim bound and restrained while Tilton sexually assaulted her. Tilton distributed some of the images and videos of these sexual assaults on the dark web through the Tor network.
Tilton’s electronic devices also included thousands of images and videos of the sexual abuse of other minors, including sadomasochistic images of minors in bondage, sexual assaults on infants, and sexual acts on the corpse of a minor.
When he was arrested, Tilton was employed as a forward auxiliary mechanic in the U.S. Navy. The investigation revealed that Tilton sexually assaulted children in Connecticut, New Hampshire and California.
Tilton pleaded guilty to seven counts of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years on each count.
At sentencing, which is scheduled for March 1, 2021, the government will argue for a sentence of 210 years of imprisonment.
Tilton has been detained since his arrest.
This matter is being investigated by the Federal Bureau of Investigation, the Naval Criminal Investigative Service and the Town of Groton Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Durham thanked the New London State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Muskogee Man Pleads Guilty to Murder in the Second Degree in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnathan Zamudio, age 33, of Muskogee, Oklahoma entered a guilty plea to Murder in the Second Degree in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151, 1153, punishable by imprisonment for a period of any term of years or life, a fine up to $250,000.00, or both.
The Information alleged that on or about August 20, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, willfully, deliberately, maliciously and with malice aforethought, did unlawfully kill Keith Dean Boswell with a knife.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Massachusetts Man Sentenced for Distributing Fatal Dose of FentanylRead the Press Release
PORTLAND, Maine: A Fairhaven, Massachusetts man was sentenced today in federal court for distributing a fatal dose of fentanyl, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Cameron Soto, 28, to 19 years in prison and six years of supervised release. Soto was also ordered to pay $4,420 in restitution. He pleaded guilty on June 13, 2019, to two counts of distributing fentanyl.
According to court records, on March 14, 2017, Soto distributed fentanyl to a resident of St. George, Maine. The recipient of the drugs died as a result. The following day, after learning of the overdose, Soto distributed additional fentanyl to a confidential informant.
The Maine Drug Enforcement Agency investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Local Restaurant Owner Indicted on Fraud Charges for Allegedly Submitting False Bank Statements when Seeking Online LoansRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Ill., man, Omar Hernandez-Lopez, 36, who was indicted last week for allegedly submitting false bank statements when seeking online loans, is scheduled to make his initial appearance in federal court on Jan. 5, 2021. Hernandez-Lopez owns El Tapatio De Jalisco Inc., a company doing business as La Fiesta Grande, a restaurant in Springfield.
The indictment alleges Hernandez-Lopez submitted bank statements that falsely represented the respective accounts’ balances when applying for online loans on three occasions in 2018 and 2019. The false bank statements represented accounts of his sister, business, and his brother.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General conducted the investigation. Assistant U.S. Attorney Gregory K. Harris represents the government in the prosecution.
If convicted, the statutory penalty for each count of making false statements to mortgage lending businesses (seven counts) is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Justice Department Sues Town of Wolcott, Connecticut, for Discrimination Against Persons with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit alleging that the Town of Wolcott, Connecticut, has discriminated against persons with disabilities in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the District of Connecticut, alleges that Wolcott violated the Fair Housing Act by refusing to allow the operation of a group home for adults with disabilities because of the disabilities of the proposed home’s residents. The department’s complaint further alleges that the Town amended its zoning regulations to prohibit any community residence for adults with disabilities from operating in the Town, in violation of the Fair Housing Act.
“The Fair Housing Act protects the right of individuals with disabilities to live and pursue happiness in this free country without suffering the indignity and injustice of discrimination dressed up as ‘zoning laws’ enacted or enforced as a result of misguided stereotypes and warped fears,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Disability discrimination is unconscionable, unlawful, and unnecessarily injures people. The Fair Housing Act prohibits municipalities from applying their zoning laws in a manner that discriminates because of disability. The Civil Rights Division is committed to eliminating illegal discriminatory barriers and ensuring that the Fair Housing Act protects the right of persons with disabilities to enjoy homes of their choosing.”
“The U.S. Attorney’s Office is committed to eliminating discrimination against people with disabilities,” said U.S. Attorney John H. Durham for the District of Connecticut. “This lawsuit is a step toward ensuring a future in which all people are granted equal opportunity and full integration in our society.”
“Persons with disabilities have a right to housing that meets their needs, including group homes,” said Anna María Farías, Assistant Secretary for Fair Housing and Equal Opportunity for the Department of Housing and Urban Development (HUD). “HUD will continue working with the Justice Department to take appropriate action when discriminatory policies and practices unlawfully deny housing opportunities to those who need them the most.”
This case arose when the Town of Wolcott denied a special use permit to a property owner and group home operator who sought to open a residence for 13 adults with mental health disabilities. At the time, the Town’s zoning ordinance permitted the operation of community residences of up to 15 adults with disabilities so long as certain conditions were satisfied. The owner and operator filed a complaint with HUD after their special use permit application was denied.
The lawsuit seeks a court order prohibiting Wolcott from applying its zoning regulations in a manner that discriminates against persons with disabilities. The lawsuit also seeks monetary damages to compensate victims, as well as payment of a civil penalty. A related case challenging Wolcott’s conduct was filed by the owner and operator of the proposed residence. That case, SELF Inc. et al. v. Town of Wolcott, is pending before the U.S. District Court for the District of Connecticut.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Justice Department Files Sexual Harassment Lawsuit Against Massachusetts Property ManagerRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that a property manager in Chicopee, Massachusetts, violated the Fair Housing Act by subjecting female tenants to sexual harassment.
The complaint, filed in the U.S. District Court for the District of Massachusetts, alleges that Salazar dos Santos, who manages residential rental properties in Chicopee, Massachusetts, has subjected tenants to sexual harassment on multiple occasions since at least 2008.
According to the complaint, dos Santos subjected female tenants to unwelcome sexual contact, including coercing them to perform oral sex and touching intimate parts of their bodies. The complaint also alleges that dos Santos exposed his genitals to female tenants, locked tenants in his office, implicitly offered to grant tangible benefits, such as rent payment plans, in exchange for engaging in sexual acts with him, and threatened tenants who resisted or objected to his unwelcome sexual harassment. The owners of the properties, two family trusts, are alleged to be liable for Salazar dos Santos’s conduct.
“No woman who seeks safe, affordable housing should ever face demands for sex, sexual propositions, unwanted touching, and threats. Such abusive conduct by landlords and property managers violates federal law and shocks the conscience,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and threats by their housing providers, and the Justice Department will work resolutely to hold such predators accountable and to obtain relief for their victims.”
“No one should be forced to provide sexual favors, or otherwise endure sexual harassment, in exchange for housing,” said U.S. Attorney Andrew E. Lelling for the District of Massachusetts. “Sexual harassment is illegal under the Fair Housing Act and, especially during a time of increased unemployment and financial stress, my office will aggressively enforce this law to protect hard working women and others subjected to this kind of abusive conduct.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
Today’s lawsuit is the twentieth to be filed since the 2017 launch of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the department’s initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with the U.S. Department of Housing and Urban Development to combat sexual harassment in housing.
In the last year alone, the department filed more sexual harassment lawsuits – eight – than it has in any other year. The 20 lawsuits filed in the last three years demonstrate the department’s commitment to vigorously enforcing the Fair Housing Act to stop the predatory conduct and vindicate the rights of those who are being abused by their landlords and property managers. The lawsuits have been filed in states across the country, from California to Massachusetts, from Alabama to Kentucky, and beyond, and allege harassment in rural communities and urban centers, in apartment buildings and mobile homes, in market-rate homes and in subsidized housing. The Justice Department will continue to pursue these cases across the country, and will work with federal, state and local partners where appropriate to bring the perpetrators to justice.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals in Massachusetts who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by dos Santos, or who have other information that may be relevant to this case, can contact the U.S. Attorney’s Office Civil Rights Unit by calling 888-221-6023 , or emailing [email protected].
Individuals nationwide may report sexual harassment and other forms of housing discrimination by contacting the Justice Department’s Civil Rights Division at (800) 896-7743 or by submitting a report online.
International Fugitive Sentenced in Drug ConspiracyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza has sentenced Nelson Pablo Yester-Garrido a/k/a Nelson “Tony” Yester (63, Cuba) to five years in federal prison for conspiracy to distribute a large amount of high-grade marijuana in the Middle District of Florida. Yester-Garrido had pleaded guilty on August 11, 2020.
According to court documents, from the late 1980s through early 1997, Yester-Garrido was part of a group involved in importing kilogram amounts of cocaine and other narcotics into the United States, including by negotiating the purchase of a Russian diesel submarine for Colombian drug suppliers. Around 1997, Yester-Garrido fled to South Africa to escape prosecution related to charges filed in the Southern District of Florida (which have since been dismissed).
Between December 2014 and continuing through February 25, 2015, Yester-Garrido conspired with Andrew Cassara, Juan Almeida, and others, both known and unknown, to possess with the intent to distribute a large amount of marijuana in the Middle District of Florida. Yester-Garrido’s specific role in the drug trafficking conspiracy was to assist, from South Africa, in trying to collect a $250,000 debt that was owed to co-conspirators by a Dominican drug-trafficking group. Almeida and Cassara had traveled to South Africa in December 2014 to meet with Yester-Garrido and seek his assistance with the drug debt after $250,000 worth of high-grade marijuana was stolen from co-conspirators. Cassara testified during the sentencing hearing that he had made $25 million dollars from trafficking in marijuana and that he had supplied firearms to assist in the collection of the drug debt.
In January 2015, the DEA began investigating the conspiracy, and in January 2017, an indictment was returned in the Middle District of Florida charging three of Yester-Garrido’s co-conspirators, Almeida, Cassara, and Wade Jones, Jr. (Each of three was adjudicated guilty and sentenced in 2018.)
In October 2017, Yester-Garrido himself was indicted on drug and gun charges. In November 2017, based upon a provisional arrest warrant requested by the U.S. government, Italian authorities apprehended Yester-Garrido at the Fiumicino Airport in Rome, Italy. In July 2019, the Italian judicial authorities and the Ministry of Justice granted the request for Yester Garrido’s extradition to the United States.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the South African Police Service Directorate for Priority Crime Investigations. The Justice Department’s Office of International Affairs and the Italian prosecutorial and law enforcement authorities provided significant assistance in securing the defendant’s extradition from Italy. The U.S. Marshals Service also provided critical assistance in the extradition to the Middle District of Florida. This case was prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Henry County Man Sentenced to over 6 Years in Federal Prison for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Jeffery Garvin Townsend, 60, of Paris, Tennessee, has been sentenced to 78 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney, announced the sentence today.
According to the information presented in court, on March 20, 2019, officers executed a search warrant at Townsend’s residence in Henry County, Tennessee. During a search of the garage, officers found a large locked firearms safe. A search of the residence yielded another large firearms safe in the basement that was also locked. Townsend refused to speak with the officers, and instead requested an attorney.
Officers then spoke with Townsend’s son about the combinations to and contents of the safes. He stated that he only knew the combination to the safe in his father’s bedroom in the basement. The son also informed law enforcement that the safe in the bedroom had guns in it, and the safe in the garage contained ammunition. The safe in the basement was opened and contained 13 guns (6 shotguns, 6 rifles, and one handgun), two barrels, and ammunition. One of the guns, a Century Arms AK-47, had a full magazine in it. One of the other guns, a Winchester Super X3, had the serial number filed off. Two other guns (a Bushmaster AR-15 and a Browning Invector Gold 10 gauge shotgun) were previously reported stolen. The officers had to force open the safe in the garage, which contained a large amount of ammunition.
The son also told law enforcement that several of the firearms in the safe belonged to his father, and that he had seen his father shoot several of the guns recently. He also said his father had acquired some of the guns in the last few months.
Townsend is a convicted felon, having been previously convicted in federal court of being a felon in possession of a firearm and ammunition in 2008, and attempting to possess wildlife taken in violation of federal law in 2002. Townsend was also convicted of aggravated assault in 1985. As a result of his prior felony convictions, Townsend is prohibited by federal law from possessing firearms or ammunition.
On December 4, 2020, Chief U.S. District Judge S. Thomas Anderson sentenced Townsend to 78 months in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "The government has a strong interest in preventing people who already have disrespected the law, including felons, from possessing guns. As a prior convicted felon, Townsend’s possession of a large cache of firearms and ammunition, including stolen guns and one with obliterated serial numbers, continued to threaten the security of his fellow citizens. This sentence accomplishes the public safety goals of removing firearms from dangerous offenders and providing just punishment, incapacitation, and deterrence for repeated violations of law."
The Paris, Tennessee Police Department, the Henry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Fraudsters Who Stole Protected Health Information to Fund Spending Spree Plead GuiltyRead the Press Release
SHERMAN, Texas – Two individuals have pleaded guilty to conspiracy to obtain information from a protected computer in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Demetrius Cervantes, 46, of McKinney, Texas, and Amanda Lowry, 40, of Sherman, Texas, pleaded guilty to conspiracy to obtain information from a protected computer on Dec. 3, 2020, before U.S. Magistrate Judge Christine A. Nowak. Their co-conspirator, Lydia Henslee, 29, of Denison, Texas, faces additional charges.
Cervantes, Lowry, and Henslee, were named in a federal indictment on Sept. 11, 2019. The defendants were each charged with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification
According to information presented in court, the defendants are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients. This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced, and the following forfeitable assets were identified: a 2019 Land Rover Range Rover Supercharged; a 2019 Dodge Durango SUV; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move.
On Nov. 18, 2020, Henslee was charged in a ten-count superseding indictment with one count of conspiracy to unlawfully transfer, possess, and use a means of identification, and nine counts of unlawfully transferring, possessing, and using a means of identification. If convicted, she faces up to 15 years in federal prison.
Henslee was also charged in a separate superseding indictment along with Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas, with one count of conspiracy to commit illegal remunerations.
According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for orders from physicians that were subsequently used to obtain payments from federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physician orders. The conspirators then sold the physicians’ orders to each other and to other DME providers. Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE. If convicted, the defendants each face up to five years in federal prison.
These cases were investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia and Special Assistant U.S. Attorney Bethany Pickett.
Former Mississippi Band of Choctaw Indians Tribal Council Member Pleads Guilty to Wire FraudRead the Press Release
Jackson, Miss. – Randy Lamar Anderson, 46, of Conehatta, a former elected member of the Tribal Council for the Mississippi Band of Choctaw Indians, entered a plea of guilty Thursday before Chief U.S. District Judge Daniel P. Jordan III to federal wire fraud, announced United States Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
A Federal Grand Jury originally indicted Anderson on February 6, 2019, charging him with one count of theft and two counts of wire fraud for defrauding the Choctaw Tribal government. Between August 2016 and November 2018, Anderson forged hotel bills and receipts and submitted those documents to the Tribal government in claims for reimbursement for official business travel. Since the original indictment issued, Anderson’s term on the Tribal Council expired, and Anderson did not run for reelection to the Council.
Chief Judge Jordan will sentence Anderson on March 3, 2021 at 9:30 a.m., at the Thad Cochran United States Courthouse in Jackson, Mississippi, Anderson faces a potential maximum sentence of 20 years in prison and a possible fine of up to $250,000.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Former Harvard Fencing Coach and Maryland Businessman Indicted on Bribery ChargesRead the Press Release
BOSTON – The former fencing coach at Harvard College and a Maryland businessman were indicted by a federal grand jury today in Boston with conspiring to secure the admission of the businessman’s two sons to Harvard in exchange for bribes totaling more than $1.5 million.
Peter Brand, 67, of Cambridge, Mass., and Jie “Jack” Zhao, 61, of Potomac, Md., were indicted on one count of conspiracy to commit federal programs bribery. Brand and Zhao were also each charged with one count of federal programs bribery. Brand and Zhao were arrested and charged by criminal complaint on Nov. 16, 2020.
According to the charging documents, Brand, the former head coach of men’s and women’s fencing at Harvard, conspired with Zhao, the chief executive of a telecommunications company, to facilitate the admission of Zhao’s sons to Harvard by recruiting them to join the men’s fencing team in exchange for money.
It is alleged that in or about May 2012, Brand told a co-conspirator, “Jack doesn’t need to take me anywhere and his boys don’t have to be great fencers. All I need is a good incentive to recruit them[.] You can tell him that[.]” In February 2013, as part of the alleged scheme, Zhao made a purported donation of $1 million to a fencing charity founded by a co-conspirator. Zhao’s older son was admitted to Harvard as a fencing recruit in December 2013, and matriculated in the fall of 2014. Shortly thereafter, the charity passed $100,000 on to the Peter Brand Foundation, a charitable entity established by Brand and his spouse. Thereafter, Zhao began making payments to, or for the benefit of, Brand.
In total, Zhao made over $1.5 million in payments to Brand, or for Brand’s personal benefit, even as Brand recruited Zhao’s younger son to the Harvard fencing team. Zhao allegedly paid for Brand’s car, made college tuition payments for Brand’s son, paid the mortgage on Brand’s Needham residence, and later purchased the residence for well above its market value, thus allowing Brand to purchase a more expensive residence in Cambridge that Zhao then paid to renovate. Zhao’s younger son matriculated to Harvard in 2017. Brand allegedly did not disclose the payments to Harvard when recruiting Zhao’s sons.
The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of bribery concerning programs receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Gang Member Sentenced to Seven Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arthur Taylor, age 38, was sentenced on December 2, 2020, to seven years’ imprisonment followed by four years on supervised release by U.S. District Court Judge Malachy E. Mannion, for his involvement in a drug trafficking conspiracy.
According to United States Attorney David J. Freed, Taylor previously pleaded guilty to conspiring with others to distribute more than 100 grams of heroin (which is equivalent to more than 4,000 retail bags) between 2010 and 2015, in Pennsylvania and Maine.
Taylor’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. The male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. The members of the Black P-Stones obtained heroin and other drugs, including heroin and “molly,” in New York and distributed the drugs in Stroudsburg and locations in the state of Maine. Couriers were used to transport heroin from New York to Maine.
The case was investigated by agents of the Federal Bureau of Investigation, members of the Pennsylvania State Police, state and local police in Maine, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Florida man sentenced for unlawfully downloading tax return transcripts from IRSRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ludrick Joseph, of Miami, Florida, was sentenced today to 60 months of incarceration for downloading taxpayer transcripts by unlawfully accessing Internal Revenue Service (IRS) computers, U.S. Attorney Bill Powell announced.
Joseph, age 39, pled guilty in March 2020 to a one-count information charging him with “Accessing a Computer and Obtaining Information.” Joseph admitted to fraudulently accessing the IRS eAuthentication online taxpayer system, which has servers located in Berkeley County, in April 2015. In order to pass IRS security protocols, Joseph unlawfully obtained the Electronic Filing Pin (EFP) for a taxpayer which allowed him access into the eAuthentication system. Once in the IRS eAuthentication system, Joseph fraudulently gained access to eight different tax return transcripts of an individual taxpayer. The tax return transcripts contained the taxpayer’s date of birth, social security number, and gross income, among other sensitive information.
The investigation further revealed that Joseph unlawfully possessed approximately 2,145 credit card numbers and 3,875 unique social security numbers.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
Chief U.S. District Judge Gina M. Groh presided.
Federal Aviaton Administration Employee Arrested for Using Confidential Information for Attempted Extortion SchemeRead the Press Release
WASHINGTON – Brian J. Booth, a 38-year-old Virginia resident, was arrested today and charged via criminal complaint with mail fraud for a scheme to use information stolen from the Federal Aviation Administration (FAA) in an attempt to extort foreign officials and obtain payment for the information.
According to Court records, Booth, an FAA employee, had access to information identifying persons who were previously authorized to exercise piloting or aircraft maintenance privileges in the United States, but who had their piloting or aircraft maintenance privileges revoked. Booth sent the names and addresses of certain of these individuals to the embassies of Germany, France, and the People’s Republic of China, demanding payment for the information. Booth does not appear to have obtained any money as a result of the scheme.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the Department of Transportation Office of Inspector General. Assistant United States Attorney Liz Aloi of the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia is prosecuting the case.
El Departamento de Justicia Presenta un Pleito por Acoso Sexual contra un Administrador de Propiedades en MassachusettsRead the Press Release
El Departamento de Justicia anunció el lunes que ha entablado un pleito que alega que un administrador de propiedad en Chicopee, Massachusetts, vulneró la ley de Vivienda Justa al someter a inquilinas al acoso sexual.
La demanda, que se presentó ante el Tribunal Federal de Distrito para el Distrito de Massachusetts, alega que Salazar dos Santos, administrador de propiedades residenciales de alquiler en Chicopee, Massachusetts, acosó sexualmente a inquilinas en múltiples ocasiones desde al menos el 2008.
Según la demanda, dos Santos, sometió a las inquilinas a contacto sexual no deseado, lo que incluyó coaccionarlas a practicar sexo oral y tocar partes íntimas de sus cuerpos. Más aún, la demanda alega que dos Santo expuso sus genitales a inquilinas, encerró a inquilinas en su oficina, realizó ofertas implícitas de conceder beneficios tangibles –tales como planes de pago del alquiler, a cambio de participar en actos sexuales con él— y amenazó a inquilinas que resistieron o que se opusieron a su acoso sexual no deseado. Se alega que los dueños de las propiedades, dos fideicomisos familiares, son responsables de la conducta de Salazar dos Santos.
«Ninguna mujer que busque una vivienda segura y asequible debe enfrentarse a solicitudes de sexo, avances sexuales, toques no deseados y amenazas. Tales conductas abusivas por parte de propietarios y administradores de propiedad vulneran las leyes federales y conmocionan la conciencia de todos», declaró Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «La ley de Vivienda Justa protege a las inquilinas del acoso sexual y amenazas a manos de sus proveedores de vivienda, y el Departamento de Justicia trabajará con determinación para hacer que depredadores como este rindan cuentas y para obtener alivio para las víctimas».
«Nadie debe verse forzado a realizar favores sexuales o de otra forma soportar el acoso sexual a cambio de una vivienda», afirmó Andrew E. Lelling, el Fiscal Federal para el Distrito de Massachusetts. «El acoso sexual es, en virtud de la ley de Vivienda Justa, ilegal, y especialmente durante un período de mayor desocupación y estrés financiero, mi oficina trabajará sin tregua para hacer cumplir esta ley, con el fin de proteger a mujeres trabajadoras y otras personas que se ven sometidas a este tipo de conducta».
El pleito de hoy pide daños monetarios para compensar a las víctimas, sanciones civiles para vindicar el interés público y una orden judicial que impide futura discriminación. La demanda contiene alegaciones de conducta ilegal; tales alegaciones deben ser probadas ante un tribunal federal.
El pleito de hoy es el vigésimo que se ha presentado desde que se lanzó, en el 2017, la Iniciativa contra el Acoso Sexual en la Vivienda del Departamento de Justicia. La iniciativa representa un esfuerzo por combatir el acoso sexual en la vivienda. Está dirigida por la División de Derechos Civiles y cuenta con el apoyo de las Fiscalías Federales por todo el país. Hace poco, el Fiscal General este reafirmó este compromiso al instruir al Departamento de Justicia que implemente todas las herramientas de aplicación de la ley disponibles contra cualquiera que intenta aprovechar la crisis de COVID-19 acosando sexualmente a personas que necesitan una vivienda. El objetivo de la iniciativa del Departamento es abordar el acoso sexual por parte de propietarios, administradores de propiedad, trabajadores de mantenimiento, prestamistas y otras personas que controlan la vivienda. Como parte de la iniciativa, el Departamento de Justicia desarrolló un mensaje de interés público «con subtítulos en español» y formó un grupo de trabajo conjunto con el Departamento de Vivienda y Desarrollo Urbano de los EE. UU. para combatir el acoso sexual en la vivienda.
Solo en este último año, el Departamento entabló más pleitos por acoso sexual –ocho– que en cualquier otro año. Los veinte pleitos entablados en los últimos tres años demuestran el compromiso del Departamento con hacer cumplir activamente la ley de Vivienda Justa para así poner fin a la conducta depredadora y vindicar los derechos de las personas que están siendo abusadas por sus propietarios y administradores de propiedad. Los pleitos se han entablado en diferentes estados por todo el país, desde California hasta Massachusetts, de Alabama a Kentucky, en comunidades rurales y centros urbanos, en edificios de apartamentos y casas móviles, en casas al tipo de mercado y viviendas subsidiadas. El Departamento de Justicia seguirá persiguiendo estos casos por todo el país y, en su caso, colaborará con asociaciones federales, estatales y locales para llevar a los responsables a la justicia.
La ley federal de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o estado familiar. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a http://www.justice.gov/crt-espanol.
Cualquier individuo en Massachusetts que cree haber sido víctima de acoso sexual o de otro tipo de discriminación en la vivienda en propiedades que pertenecen o que son administradas por dos Santos, o que tenga información adicional que podría ser relevante a este caso, puede comunicarse con la Unidad de Derechos Civiles de la Fiscalía Federal llamando al 888-221-6023 o enviando un correo electrónico a [email protected].
Personas por todo el país pueden informar a la División de Derechos Civiles del Departamento de Justicia de casos de acoso sexual y otras formas de discriminación en la vivienda llamando al (800) 896-7743 o entregando un informe en línea.
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Eastern Panhandle man sentenced for heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Karl Justin Dunn, III, of Kearneysville, West Virginia, was sentenced today to 37 months of incarceration for distributing heroin, U.S. Attorney Bill Powell announced.
Dunn, age 33, pled guilty to one count of “Distribution of Heroin” in February 2020. Dunn admitted to selling heroin in July 2018 in Berkeley County.
This charge is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Durham Man Sentenced to 12-1/2 Years in Prison in Child Pornography CaseRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to transportation of child pornography was sentenced Friday, December 4, 2020, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
PHILIP STEPHEN STALLINGS, 41, of Durham, North Carolina, pleaded guilty on June 9, 2020, to one count of transportation of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 150 months of imprisonment followed by 15 years of supervised release. He was ordered to pay a total of $17,000 in restitution to five victims.
In December 2018, special agents with Homeland Security Investigations (HSI) became aware that an individual was using a popular mobile messaging application to share child pornography. They ultimately identified the perpetrator as STALLINGS. On June 19, 2019, HSI special agents and investigators with the Durham County Sheriff’s Office executed a search warrant at STALLINGS’ Durham residence. They recovered three electronic devices and identified a cloud storage account that contained child pornography. File created-on dates indicated that STALLINGS had possessed many of the files for approximately three years or more.
This case was investigated by Homeland Security Investigations (HSI) with the assistance of the Durham County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Eric L. Iverson and brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
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Drug dealer earns prison time for meth trafficking convictionRead the Press Release
BRUNSWICK, GA: A Wayne County man has been sentenced to more than a decade in federal prison after a drug arrest in which a deputy was seriously injured.
Derrick Morris, a/k/a “Butta,” 33, of Jesup, Ga., was sentenced to 168 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Possession with Intent to Distribute 5 or More Grams of Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Morris also must serve five years of supervised release after completion of his prison term.
There is no parole in the federal system.
“As Morris’ arrest amply illustrated, drug trafficking can quickly turn into violent crime,” said U.S. Attorney Christine. “It’s infuriating that the officer was seriously hurt during the altercation, and ultimately the community will benefit from another poison pusher being removed from the streets.”
As described in court documents and testimony, on June 27, 2019, investigators from the Appling County Sheriff’s Office stopped Morris’ vehicle after a drug deal. During the arrest, Morris fought with an Appling County deputy who was injured and later hospitalized while placing Morris in custody. A search of Morris’ vehicle and hotel room discovered additional drugs, along with drug sales paraphernalia and cash. Morris has prior felony convictions for possession and sale of illegal drugs.
“Methamphetamine poses a clear and present danger to the health and safety of communities,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “The chemicals used to manufacture this toxic drug are dangerous. This defendant will no longer be able to manufacture and distribute this insidious drug and will spend well-deserved time in prison.”
“This is another offender we have worked closely with our local and federal partners to put away for a long time. He not only was dealing poison to South Georgia communities, but also was violent towards a law enforcement officer,” said Georgia Bureau of Investigation (GBI) Director Vic Reynolds. “This sentence should be a warning to others committing these felonies that they will be investigated and prosecuted.”
“This case abundantly illustrates that the simple refusal to follow lawful commands can change the life of both the offender and a law enforcement officer,” said Appling County Sheriff Mark Melton. “Because of Derrick Morris’ illegal actions, he’ll spend 14 years behind bars, while our deputy faces a long road to a complete recovery.”
The case was investigated by the DEA, the GBI, and the Appling County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney and Organized Crime Drug Enforcement Task Force Coordinator Marcela C. Mateo.