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28 January 2021
Chicago Investment Manager Detained in Indonesia and Returned to Chicago to Face Federal Fraud ChargesRead the Press Release
CHICAGO — A Chicago investment manager who fled the country after being charged in a fraud scheme has been returned to the United States from Indonesia.
MARCUS BEAM was indicted in January 2020 on charges he fraudulently obtained money from women he met online. According to the indictment, Beam falsely claimed to the women and other investors that their funds would be invested in stocks such as Uber and Lyft. Beam instead spent the money for his own personal benefit, including rent, auto loans, and retail purchases, resulting in a loss to investors of at least $500,000, the indictment alleges.
Beam, 50, of Woodridge, fled the United States after being released on bond in January 2020. The U.S. Marshals Service located Beam in Bali, Indonesia, and he was detained there in July 2020 on an INTERPOL Red Notice by the Indonesia National Police, National Central Bureau, and INTERPOL. On Jan. 27, 2021, Beam was deported from Indonesia and returned in custody to Chicago. He pleaded not guilty to ten counts of wire fraud and mail fraud during his arraignment Wednesday afternoon before U.S. Magistrate Judge Heather K. McShain in Chicago.
The arraignment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State; and David Gelement, Chief Deputy U.S. Marshal. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
The officials acknowledged the substantial assistance of the news media whose coverage generated leads prior to Beam’s apprehension in Indonesia. The officials also acknowledged the substantial assistance of the Indonesian National Police, National Central Bureau, INTERPOL, the Directorate General of Immigration, and the Bali Regional Police. The Justice Department’s Office of International Affairs provided assistance in securing the defendant’s return from Indonesia.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Download Beam indictment
Cedar Rapids Doctor Agrees to Pay $100,000 to Resolve Allegations that He Overprescribed Opioids in Violation of the Controlled Substances ActRead the Press Release
Dr. Paul Lottes, a family medicine physician in Cedar Rapids, Iowa, has agreed to pay $100,000 to resolve allegations that he violated the Controlled Substances Act by writing prescriptions for opioid medications that had no legitimate medical purpose and were not issued in the usual course of professional practice.
The United States alleges that from August 2017 to April 2019, Dr. Lottes wrote prescriptions for opioids classified as Schedule II controlled substances for two patients that had no legitimate medical purpose and were not issued in the usual course of professional practice, in violation of the Controlled Substances Act.
In addition to agreeing to pay the $100,000 settlement, Dr. Lottes has also agreed not to reapply for a controlled substances registration with the Drug Enforcement Administration (“DEA”) for a period of three years. Without the DEA registration, Dr. Lottes will not be able to prescribe controlled substances during this time.
“Overprescribing is a major factor in the devastating opioid epidemic facing our country,” said U.S. Attorney Peter E. Deegan. “As this settlement demonstrates, our office is committed to using all available tools to fight this epidemic, including civil prosecution under the Controlled Substances Act.”
“Doctors who prescribe controlled substances outside the bounds of professional practice betray their oaths as practitioners and also fail the patients who trust them for care,” DEA Omaha Division Diversion Program Manager Sarah Boblenz said. “DEA and its partners at the federal, state and local level will continue to investigate all practitioners who cause harm to the public and fuel the opioid epidemic.”
This matter was handled by Assistant U.S. Attorney Melissa Carrington and investigated by the State of Iowa’s Medicaid Fraud Control Unit and the DEA.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
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Butte felon sentenced to prison in firearms crimeRead the Press Release
GREAT FALLS — A Butte man having been convicted of a felony was sentenced today to 38 months in prison and three years of supervised release for illegally possessing a gun, Acting U.S. Attorney Leif Johnson said.
Joseph Alfred Edward Lytell Torres, 30, pleaded guilty on Oct. 1, 2020 to prohibited person in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided. Torres was detained.
In court documents filed by the prosecution, officers with Butte-Silver Bow Law Enforcement responded on May 12, 2020 to an area behind a Butte residence where a caller informed officers she had seen a male driving a motorcycle with a gun in his hand and heard a “pop, pop.” Officers found a vehicle with a flat tire in the area and two spent 9mm shell casings on the ground. Officers recovered bullet fragments in the wheel and on the ground. Officers contacted the owner of the vehicle, who said she was sitting in the vehicle when it was shot. The owner identified Torres as the shooter.
Law enforcement officers and Montana Probation and Parole officers located Torres two days later at his residence and arrested him. Officers search the garage and found a 9mm pistol under a stack of tires. At the time, Torres was a convicted felon on state supervision.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Butte-Silver Bow Law Enforcement and Montana Department of Corrections’ Probation and Parole.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Businessman Sentenced for Foreign Bribery and Money Laundering Scheme Involving PetroEcuador OfficialsRead the Press Release
An Ecuadorian businessman living in Miami was sentenced today to 35 months in prison for his role in a $4.4 million bribery and money laundering scheme that funneled bribes to then-public officials of Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador), the state-owned and state-controlled oil company of Ecuador.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to his plea, Armengol Alfonso Cevallos Diaz, 58, admitted that from 2012 through 2015 he conspired to solicit, intermediate, and pay bribes of $4.4 million from an oil services company and companies associated with or controlled by Cevallos to PetroEcuador officials by using U.S.-based companies and U.S.-based bank accounts in order to obtain and retain business from PetroEcuador. Cevallos also admitted to conspiring to conceal and promote the bribe scheme by laundering the funds through Miami-based shell companies and bank accounts that were used to acquire properties in the Miami area for the benefit of certain PetroEcuador officials.
Cevallos is the latest individual to be sentenced in the Justice Department’s ongoing investigation into bribery and money laundering involving PetroEcuador. The individuals prosecuted include former PetroEcuador officials who received and concealed the bribe payments, businessmen and contractors who paid the bribes to obtain contracts from PetroEcuador, and intermediaries who enabled and facilitated the bribery through the use of U.S. and offshore companies and bank accounts.
The FBI’s International Corruption Squad in Miami is investigating the case.
Trial Attorneys Jonathan Robell and Katherine Raut of the Criminal Division’s Fraud Section and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.
IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Marshals Service and the Justice Department’s Office of International Affairs provided significant assistance in this case, as have public authorities in, among other countries, Ecuador and Panama.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corruption Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Athenahealth Agrees to Pay $18.25 Million to Resolve Allegations that It Paid Illegal KickbacksRead the Press Release
BOSTON – athenahealth, Inc. (Athena), a Watertown-based developer of electronic health records (EHR) services, has agreed to pay $18.25 million to resolve allegations that it violated the False Claims Act (FCA) by paying illegal kickbacks to generate sales of its EHR product, athenaClinicals.
In a complaint filed in conjunction with today’s settlement, the United States alleged that Athena violated the FCA and the Anti-Kickback Statute through three marketing programs. First, Athena allegedly invited prospects and customers to all-expense-paid sporting, entertainment and recreational events. The most lavish of these events, such as “bucket list” trips to the Masters Tournament and the Kentucky Derby, included complimentary travel along with luxury accommodations, meals and alcohol. Second, Athena allegedly paid illegal fees to its customers through its “Lead Generation” program designed to identify new prospective customers. Under this program, Athena paid up to $3,000 per physician that signed up for Athena services, regardless of how much time (if any) the client spent speaking or meeting with the lead. Finally, it is alleged that Athena entered into deals with competing companies that had decided to discontinue their health information technology products. Pursuant to those agreements, known as “Conversion Deals,” the other companies agreed to refer their clients to Athena, and Athena paid competitors based on the value and volume of practices that were successfully converted into Athena customers.
As a result of these kickbacks, it is alleged that Athena improperly generated sales for itself while causing healthcare providers to submit false claims to the federal government related to incentive payments for adoption and “meaningful use” of Athena’s EHR technology.
“Across the country, physicians rely on electronic health records software to provide vital patient data. Kickbacks corrupt the market for health care services and risk jeopardizing patient safety,” said United States Attorney Andrew E. Lelling. “We will aggressively pursue organizations that fail to play by the rules; EHR companies are no exception.”
“This resolution demonstrates the department’s continued commitment to holding EHR companies accountable for the payment of unlawful kickbacks in any form,” said Acting Assistant Attorney General Brian Boynton for the Department of Justice’s Civil Division. “EHR technology plays an important role in the provision of medical care, and it is critical that the selection of an EHR platform be made without the influence of improper financial inducements.”
“If the benefits of Electronic Health Records are to be fully realized, patients must be confident providers have selected the most effective system – not the one paying the largest kickbacks. Time and again, we’ve seen fraudulent activity undermine the integrity of medical decisions, subvert the health marketplace, and waste taxpayer dollars,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold accountable those who provide illegal incentives in order to influence the decision-making of health care providers.”
“It is illegal for companies to extend invitations to all-expense-paid sporting, entertainment, and recreational events, and other perk-filled offers to its prospective customers to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s agreement by Athena to pay $18.25 million should send a strong message to anyone thinking about engaging in this type of illegal activity. The FBI will continue to work with our law enforcement partners to do everything in our power to safeguard our government health care programs and the taxpayers picking up the bill.”
The settlement with Athena also resolves allegations in two whistleblowers lawsuits. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery.
U.S. Attorney Lelling, Acting Assistant Attorney General Boynton, HHS-OIG SAC Coyne, FBI Boston SAC Bonavolonta and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office made the announcement today. The matter was handled by Assistant U.S. Attorneys Jessica J. Weber, David J. Derusha and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit, together with Trial Attorneys Nicholas Perros and Andrew Jaco of the Justice Department’s Civil Division.
Armed Drug Dealer Sentenced to 6 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Verdell Thomas, 21, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison for possessing crack cocaine with intent to distribute, and for possessing a loaded firearm in furtherance of that offense. Thomas pleaded guilty to these charges on October 6, 2020.
A confidential informant working with the Dane County Narcotics Task Force (DCNTF) purchased small quantities of crack cocaine from Thomas on three occasions in 2020. Based on those controlled buys, DCNTF had probable cause to arrest Thomas. Thomas was arrested at a local gas station on May 7, 2020. He had 6.6 grams of crack cocaine, a scale, over $4,000, and a loaded 9mm pistol, all in his pants pockets.
At the time of his arrest, Thomas was on probation for a December 17, 2019, felony conviction for possession with intent to deliver cocaine in Dane County. Thomas told law enforcement officers he was armed because “everyone is” and he had to protect his drugs. Judge Peterson ordered the six-year sentence to be served consecutively to an 18-month state revocation sentence Thomas is currently serving for the Dane County conviction.
Judge Peterson rejected Thomas’ request for a sentence of five years and one day, because Thomas is a dangerous young man, with an extensive criminal history that includes acts of violence.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Thomas were the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
A La Grange, NC Man Receives More Than 12 Years in PrisonRead the Press Release
WILMINGTON, N.C. – A La Grange, North Carolina man, Osvaldo Fuentez-Buentello, age 49, was sentenced yesterday to a total of 148 months in prison for conspiracy to possess and possess with the intent to distribute five (5) kilograms or more of cocaine, fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine, and twenty-eighty (28) grams or more of cocaine base (crack). In addition, Buentello was sentenced for possession with intent to distribute fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine, a quantity of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on February 19, 2020, a cooperating defendant in New Hanover County ordered a shipment of methamphetamine and cocaine from Buentello. In route from a stash house in La Grange, North Carolina, in Lenoir County, New Hanover County Sheriff’s Office Deputies tracked Buentello and stopped his Chevrolet truck as it entered New Hanover County. Buentello was the sole occupant of the truck. A K-9 unit responded, and the K-9 gave a positive alert for the presence of narcotics. Deputies searched the truck and found approximately 5 ounces of methamphetamine and 9 ounces of cocaine in a boot behind the passenger’s seat. A 9mm High Point handgun was found in the center console.
Following the traffic stop, law enforcement conducted a search of Buentello’s stash house in La Grange and found more than 400 grams of marijuana, more than 100 grams of cocaine and more than 28 grams of cocaine base (crack). Law enforcement also located more than $40,000.00. Buentello provided a statement to law enforcement following his arrest and indicated that he dealt in kilogram levels of cocaine for 8 years prior to his arrest and ounce levels of methamphetamine for several months prior to his arrest.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The New Hanover County Sheriff’s Office, Wayne County Sheriff’s Office, and the Drug Enforcement Administration (DEA) 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. 7:20-cr-00047-M.
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27 January 2021
Wilmington Man Sentenced to 84 Months for Gun OffenseRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 84 months in prison for possession of a firearm by a convicted felon.
According to court documents, Marquan Kyemeke Gibbs, 30, was charged with one count of felon in possession of a firearm. Gibbs pled guilty on November 17, 2020.
On April 13, 2020, while on probation for multiple offenses – including a prior state conviction for possession of a firearm by a felon – Gibbs was in the back seat of a car that was subject to a traffic stop. Gibbs failed to comply with law enforcement commands and was removed from the vehicle. A subsequent search revealed a 9mm handgun in Gibbs’ pocket, with a 30-round high capacity magazine containing 27 rounds in a different pocket. The gun was stolen from a home on Wrightsville Avenue in Wilmington during an August 8, 2019 breaking and entering. On October 1, 2019, a very similar breaking and entering of another Wrightsville Avenue home resulted in four other guns being stolen, one of which was later recovered from a juvenile. Investigators obtained fingerprints from the scene of the October 1, 2019 breaking and entering that matched Gibbs.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The North Carolina 6th Judicial District Attorney’s Office, Wilmington Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. 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. 7:20-CR-00096-BO.
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Waterbury Heroin Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEITH JORDAN, also known as “Knowledge,” 52, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall to 120 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that Jordan was receiving large quantities of heroin from various suppliers and selling the drug to other drug distributors and street-level customers. Jordan also purchased and distributed cocaine.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Jordan and 28 other individuals with various offenses related to the distribution of heroin, fentanyl, cocaine and crack cocaine.
Jordan and several codefendants were arrested on March 20, 2019. In association with the arrests, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
On January 23, 2020, Jordan pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin.
Jordan, who is released on a $250,000 bond, is required to report to prison on March 31, 2021.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington, PA Man Charged with Federal Drug CrimeRead the Press Release
PITTSBURGH – A resident of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Patrick Ellis, 43, as the sole defendant.
According to the Indictment, on or about November 19, 2020, Ellis possessed with the intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than 5 to a maximum of 40 years in prison, a fine not to exceed $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation ("FBI") in Pittsburgh, PA led the multi-agency investigation that included members of the Pennsylvania State Police, United States Postal Inspection Service, Allegheny County Police Department, Allegheny County Port Authority Police Department, Allegheny County Sherriff’s Office, Pittsburgh Bureau of Police, Stowe Township Police Department, and North Versailles Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Waldoboro Man Pleads Guilty to Social Security FraudRead the Press Release
PORTLAND, Maine: A Waldoboro man pleaded guilty yesterday in federal court to Social Security fraud, U.S. Attorney Halsey B. Frank announced.
According to court records, from about February 2000 through May 2018, Wayne Flaherty, 53, a recipient of Supplemental Security Income (“SSI”), concealed his receipt of money from another individual to maintain his eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Flaherty was reportedly receiving at least $1,500 per month from this individual at the time he applied for benefits, but the amounts increased over the years, with Flaherty receiving a total of at least $846,615.18 from February 2012 through July 2017. The individual also provided Flaherty with a home in February 2012.
Flaherty did not notify the Social Security Administration (“SSA”) that he was receiving these payments at any point during the time he was receiving SSI payments, despite knowing he was required to report them. At an interview with law enforcement agents, he admitted to concealing this information from SSA because he was afraid his benefits would have stopped.
Flaherty faces up to five years in prison and a fine of up to $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
SSA’s Office of the Inspector General, the Maine Department of Health & Human Services, the Lincoln County Sheriff’s Office and the Knox County Sheriff’s Office investigated the case.
Violent Felon Sentenced to 8 Years in Federal PrisonRead the Press Release
A six-time convicted violent felon who was found in possession of a sawed-off rifle was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John F. Heil III sentenced Devante Joe-Joe Youngblood, 27, of Stroud, to 96 months in federal prison followed by three years of supervised release. In October 2020, Youngblood pleaded guilty to being a felon in possession of a firearm.
Youngblood was found in possession of a Henry Repeating Arms Co .22LR caliber weapon made from a rifle on July 15, 2020. Youngblood was previously convicted of second degree rape, possession of a controlled dangerous substance, assault and battery on a police officer, attempted escape from custody, assault with a dangerous weapon, and escape from arrest and detention. Relevant conduct was also cited by the Government at the defendant’s plea hearing and sentencing. The Government alleged specific facts related to a shooting or attempted shooting and robbery involving Youngblood and the firearm prior to his arrest by law enforcement.
“Devante Youngblood was a gun-wielding alpha criminal who repeatedly put others at risk. He is a danger to our communities,” said U.S. Attorney Trent Shores. “Felons like Youngblood are the reason why our 2150 Initiative prosecutions are so important. This conviction is a result of the good work of the ATF, Stroud and Bristow Police Departments, and Assistant U.S. Attorney Cymetra Williams. Today, Youngblood’s actions have landed him in prison for the next eight years where he can no longer terrorize fellow Oklahomans.”
The Bristow Police Department, Stroud Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams prosecuted the case. Ms. Williams is a prosecutor from the U.S. Attorney’s Office in the District of New Jersey. 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 had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
This case was prosecuted as part of the 2150 Initiative. The collaborative law enforcement initiative between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners combats violent crime by focusing efforts on prohibited persons in possession of firearms as well as those responsible as the “source” of the firearms to prohibited persons. The initiative was named in memory of Tulsa Police Sergeant Craig Johnson. Sgt. Johnson’s badge number, 2150, was selected for the initiative as a way to honor his life and his commitment to the Tulsa community. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Vermont Man Pleads Guilty to Possession of a Firearm by a Prohibited PersonRead the Press Release
CONCORD - David Bentley, 29, of Rutland, Vermont pleaded guilty in federal court on Tuesday to possession of a firearm by a convicted felon, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 29, 2018, law enforcement officers conducted a traffic stop of a vehicle driven by Bentley. He was arrested for operating a vehicle after suspension of his license. After obtaining a search warrant for the vehicle, officers found a loaded firearm in the backseat. Bentley is legally prohibited from possessing firearms by virtue of a felony conviction for burglary in 2010.
Bentley is scheduled to be sentenced on May 3, 2021.
“In order to maintain public safety, it is vital to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to identify and prosecute convicted felons who unlawfully possess guns.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police Mobile Enforcement Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Hampshire Attorney General’s Drug Task Force, Claremont Police Department, Vermont State Police, and the Springfield, Vermont Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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United States Files False Claims Act Complaint Alleging Compounding Pharmacy Kickback SchemeRead the Press Release
United States Attorney Maria Chapa Lopez announces that the government has filed a civil lawsuit against Mihir Taneja alleging that Taneja conspired with Larry Smith, the owner of Z Stat Medical, LLC d/b/a Oldsmar Pharmacy, to enter into a kickback arrangement with a marketing company (Centurion Compounding, Inc.), which led to millions of dollars in TRICARE reimbursement for compounding prescriptions. Specifically, the lawsuit alleges that Taneja and Smith negotiated an arrangement with Centurion in which Centurion was paid a percentage of profits from TRICARE claims that Centurion referred to Oldsmar Pharmacy. As a result, from November 2014 to February 2015, Oldsmar Pharmacy submitted thousands of claims for reimbursement to TRICARE for compounded drugs that were tainted by kickbacks and, therefore, were false.
The actions of Taneja and his co-conspirators contributed to a larger fraud trend against TRICARE involving compounded prescriptions. TRICARE’s costs for compounded drugs skyrocketed during this period, rising from $5 million in 2004 to $514 million in 2014, before reaching a high water mark of $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has diligently pursued fraud associated with compounding pharmacy claims, resulting in over $50 million in recoveries.
“Kickback arrangements skew the judgment of medical providers and threaten the integrity and viability of our healthcare programs,” said U.S. Attorney Chapa Lopez. “The TRICARE program has been particularly vulnerable to these schemes in recent years. We will use every remedy at our disposal, including the civil False Claims Act, to eradicate this kind of fraud from our district.”
The lawsuit is filed under the False Claims Act, which makes a person liable to the United States if he presents, or causes another to present, false or fraudulent claims for payments. The Anti-Kickback Statute prohibits anyone from offering or paying remuneration in order to induce or reward referrals for services paid for under federal healthcare systems.
The case is captioned United States v. Mihir Taneja, Case No. 8:21-cv-102-T-24AEP. The claims asserted by the government are allegations only, and there has been no determination of liability. The United States previously filed suit against Smith and Oldsmar Pharmacy arising out of the same conduct. That case is captioned U.S. ex rel. Silva, et al. v. Z Stat Medical, LLC, et al., No. 8:15-cv-00444-T-33TGW (M.D. Fla.).
The government’s complaint in this action illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is being handled by Assistant U.S. Attorney Michael R. Kenneth of the U.S. Attorney’s Office for the Middle District of Florida, with assistance of the Department of Defense Office of Inspector General.
United States Attorney’s Office Files Suit Against San Joaquin County Pharmacy for Unlawfully Dispensing OpioidsRead the Press Release
SACRAMENTO, Calif. — In a civil complaint filed in the Eastern District of California, the United States alleges that Lawrence Howen and the pharmacy he owns, Nor-Cal Pharmacies Inc. doing business as Lockeford Drug, unlawfully dispensed controlled substances from 2016 through 2019, in violation of the Controlled Substances Act.
The complaint alleges that Howen failed to meet his obligations as the pharmacist of Lockeford Drug in dispensing dangerous opioids and other drugs. According to the complaint, Howen knowingly filled over 700 controlled substance prescriptions that were not issued for a legitimate medical purpose, and he filled prescriptions outside the ordinary course of pharmacy practice. This unlawful conduct resulted in the improper dispensing of over a hundred thousand of doses of controlled substances, primarily prescription opioids. Civil penalties and injunctive relief are sought to prevent Howen from committing further violations.
“As a pharmacist who filled prescriptions for dangerous controlled substances, Howen had an obligation to fill only those prescriptions that he ensured were legitimate,” said U.S. Attorney Scott. “Too many lives have been lost during the opioid crisis because those entrusted with responsibility turned a blind eye. This filing represents an important step in our efforts to hold pharmacists and others in the chain of opioid distribution accountable for misconduct.”
“Pharmacists are often the last line of defense to ensure controlled substances are dispensed lawfully and do not fall into the wrong hands. DEA will continue to hold those accountable who choose to ignore red flags and put the public at risk,” stated DEA Special Agent in Charge Daniel C. Comeaux.
This case is the product of an investigation by the Drug Enforcement Administration’s Sacramento Tactical Diversion Squad. Assistant U.S. Attorney Steven Tennyson is prosecuting the case.
United Kingdom National Charged with Bribery and Kickback Scheme Involving Iraqi Reconstruction ContractsRead the Press Release
NEWARK, N.J. – A United Kingdom national is charged with wire fraud and conspiracy to commit bribery for his role in a scheme involving the award of millions of dollars of U.S. Army Corps of Engineers (USACE) reconstruction contracts in Iraq, Acting U.S. Attorney Rachael A. Honig announced today.
The indictment unsealed today charges Shwan Al-Mulla, 60, the former owner of Iraqi Consultants & Construction Bureau (ICCB), with seven counts of honest services wire fraud and one count of conspiracy to commit bribery and defraud the U.S. government. Al-Mulla remains at large.
According to the indictment unsealed today:
In 2003, Al-Mulla founded ICCB. Between 2007 and 2009, Al-Mulla and his conspirators, including Ahmed Nouri and another ICCB employee, paid over $1 million in bribes to John Alfy Salama Markus, a USACE employee, in exchange for the awarding of millions of dollars in Iraqi reconstruction contracts to ICCB. Salama Markus was a USACE employee deployed to Contingency Operating Base Speicher in Tikrit, Iraq. Salama Markus was involved in the review and award process for lucrative Iraqi reconstruction contracts and the administration, oversight, and modification of those contracts after they were awarded. In exchange for over $1 million in bribes, Salama Markus provided Al-Mulla and his conspirators with confidential USACE information concerning bids, independent government estimates, and the selection process. Al-Mulla and Nouri used this information to submit winning bids for millions of dollars in contracts. They also submitted bids on behalf of multiple companies, with Salama Markus’ knowledge, for the same contracts.
For example, in March 2007, Salama Markus solicited a $350,000 bribe in exchange for helping ICCB obtain a $6.2 million contract to make certain infrastructure improvements at the Bayji Oil Refinery. On April 24, 2007, Salama Markus sent an email to Nouri telling Nouri the price to bid, on behalf of ICCB, for the contract, and on May 9, 2007, ICCB received the contract. On June 20, 2007, Al-Mulla received an email from Nouri asking to make a $200,000 partial bribe payment to Salama Markus and Salama Markus agreed. Al-Mulla subsequently instructed another ICCB employee to arrange for a $200,000 payment to be made to Salama Markus in Egypt. On July 17, 2007, Al-Mulla received an email from Nouri detailing the bribes owed to Salama Markus and the expected official actions promised by Salama Markus. The outstanding bribe payments listed in the email included the remaining $150,000 bribe payment in connection with the Bayji Oil Contract, a $100,000 bribe payment for USACE contracts concerning the building of schools; and a $550,000 payment to ensure that ICCB obtained four additional contracts.
In July 2007, ICCB received the additional four contracts, worth approximately $7 million dollars, in exchange for the promised $550,000 bribe payment to Salama Markus. In August 2007, Al-Mulla met Nouri, Salama Markus, and another ICCB employee in Amman, Jordan. Al-Mulla authorized the payment of $750,000 cash to Salama Markus. And, at ICCB’s office in Amman, an ICCB employee gave a bag containing $750,000 in cash to Salama Markus.
Salama Markus previously pleaded guilty to honest services wire fraud, money laundering and tax offenses and, on March 12, 2013, he was sentenced to 156 months in prison. On Oct. 1, 2018, Ahmed Nouri pleaded guilty to conspiracy to commit bribery and is awaiting sentencing.
The honest services wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit bribery and defraud the U.S. government count carries a maximum potential penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal and Assistant U.S. Attorney Elaine Lou of the Special Prosecutions Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ty Garbin Pleads Guilty to Conspiring to Kidnap Michigan Governor Gretchen WhitmerRead the Press Release
Member of Kidnapping Plot Admits Guilt, Promises to Cooperate with Government
GRAND RAPIDS, MICHIGAN — One of six men accused of conspiring to kidnap Michigan Governor Gretchen Whitmer pleaded guilty to that offense today in federal court, U.S. Attorney Andrew Birge announced today. Ty Gerard Garbin, of Hartland, Michigan, admitted his guilt in a change of plea hearing conducted by Chief United States District Court Judge Robert J. Jonker. The Court scheduled Garbin’s sentencing on July 8, 2021, at 3:00 pm. He remains in the custody of the United States Marshal pending sentencing.
Garbin pleaded guilty pursuant to an agreement with the U.S. Attorney’s Office for the Western District of Michigan. Garbin has agreed to fully cooperate with federal and state law enforcement in the investigation and prosecution of all criminal activity, including the conspiracy to kidnap the Governor. His obligation to assist law enforcement continues until all investigations and prosecutions are completed. The United States Attorney’s Office for the Western District of Michigan agreed not to seek additional criminal charges against him arising out of the conspiracy to kidnap the Governor. The entire plea agreement is publicly available on the Court’s PACER electronic docket system.
Garbin faces up to life in prison and there is no parole in the federal system. The District Court will determine the ultimate sentence to be imposed after evaluating the applicable federal Sentencing Guidelines and considering the statutory sentencing factors, including the nature and circumstances of the offense; the history and characteristics of the defendant; the seriousness of the offense; and the need to promote respect for the law, to provide just punishment, and protect the public from future crimes of the defendant.
Garbin is the first defendant in the case to plead guilty to the indictment handed down by a federal grand jury in Grand Rapids, Michigan on December 16, 2020. Trial is currently scheduled to begin on March 23, 2021.
The charge in the indictment against Garbin’s co-defendants is merely an accusation, and each remaining defendant is presumed innocent unless and until proven guilty in a court of law.
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Two Zuni men Sentenced for RobberyRead the Press Release
ALBUQUERQUE, N.M. – Brandon Jim, 35, of Zuni, New Mexico, was sentenced on Jan. 26 in federal court in Albuquerque to 11 years in prison followed by 3 years of supervised release for robbery and aiding and abetting in Indian Country. Co-defendant Timothy Boone, 27, also of Zuni, was sentenced on July 16, 2020, in Albuquerque to 10 years in prison followed by 3 years of supervised release for the same crime. Both men are members of the Zuni Pueblo.
Jim pleaded guilty to this offense on March 4, 2020, while Boone pleaded guilty on July 18, 2019. In their plea agreements, they admitted to using a gun and a knife to rob a minor, identified in court records as John Doe. By threat of violence, Jim and Boone took Doe’s belongings, including two cell phones, a fishing rod, a tackle box, a sweatshirt and .22 caliber ammunition. The crime was committed near Eustace Lake on the Zuni Pueblo.
The Gallup office of the FBI investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Elisa Dimas prosecuted the case.
Two Western PA Men Indicted on Drug Charges Related to “11 Hunnit” Street GangRead the Press Release
PITTSBURGH, PA - A resident of Beaver Falls, Pennsylvania, and a resident of New Castle, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today. This Indictment is related to four previous Indictments of 22 individuals, and a months-long investigation into the narcotics trafficking activities of several associates of a neighborhood street gang, known as "11 Hunnit" operating in the Hill District neighborhood of Pittsburgh and beyond.
The three-count Indictment named Brandon Quinn, 32, of Beaver Falls, and Jeremiah Irving, 31, of New Castle.
According to Indictment, Quinn and Irving conspired to possess with intent to distribute and distribute 500 grams or more of cocaine, and each is further charged with possession with intent to distribute cocaine base, in the form commonly known as "crack".
The law provides for a maximum total sentence of not less than five years and up to forty years in prison, a fine of not more than $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations) led the multi-agency investigation that also included the Allegheny County Sheriff’s Office and the Pennsylvania Office of the Attorney General.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tolland Resident Pleads Guilty to Federal Tax ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that KENNETH W. SWEENEY, 58, of Tolland, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden to a federal tax offense.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, Sweeney owned and operated a construction business known as K&S Construction LLC. For the 2013 through 2016 tax years, Sweeney typically used a tax return preparer for the preparation of his personal income tax returns. When meeting with his return preparer, Sweeney did not provide documents reflecting the gross receipts or expenses for his business and, instead, orally provided figures of income and expenses that he knew significantly underreported the gross receipts of his business and his income. Sweeney’s personal tax returns for the 2013 through 2016 tax years, which Sweeney authorized his preparer to file with the IRS, underreported Sweeney’s income, resulting in a tax loss of at least $100,000.
Sweeney pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years. A sentencing date is not scheduled.
Sweeney is released pending sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Three Defendants Charged in Methamphetamine RingRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Geraldine Hart, Commissioner of the Suffolk County Police Department (“SCPD”), and Errol D. Toulon Jr., Suffolk County Sheriff (“SCSO”), announced a criminal Complaint charging three defendants with narcotics and firearms offenses. JOSEPH SWEENEY, JASMINE TABAK, and KEVIN TURNER, a/k/a “Tex,” were arrested yesterday on Long Island, New York, and will be presented today in Manhattan federal court.
U.S. Attorney Audrey Strauss said: “As alleged in the Complaint, the defendants were responsible for trafficking large quantities of methamphetamine throughout New York City. Thanks to the extraordinary work of our partners at the FBI and the Suffolk County Police Department, the defendants now face federal charges for their alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “As this case demonstrates, illegal narcotics continue to plague our communities. As alleged, Sweeney, Tabak, and Turner conspired to distribute methamphetamines, and Sweeney brandished a firearm in furtherance of his crimes. Our action today should demonstrate the FBI’s Long Island Safe Streets Task Force, working together with our partners from the Suffolk County Police Department, remains committed to protecting the public from those who would seek to perpetuate the damage caused by the distribution of illegal narcotics.”
Suffolk County Police Commissioner Geraldine Hart said: “A highly addictive and dangerous stimulant, methamphetamine cannot be trafficked in our communities. This trio allegedly spent months distributing poison into the hands of the addicted, furthering the damaging impacts of narcotics in countless families’ lives. I would like to commend the Southern District of New York, the FBI, and the members of the SCPD who took these dangerous individuals off the street and held them accountable for their alleged crimes.”
Suffolk County Sheriff Errol D. Toulon Jr. said: “Over the last few years, the Sheriff’s Office has enhanced its intelligence-gathering capabilities to target dangerous drug dealers and those who earn a living from destroying other people’s lives. I want to congratulate all our partners in the U.S. Attorney’s Southern District, the FBI and the SCPD, and all the men and women who were a part of this successful investigation.”
According to the allegations contained in the Complaint:[1]
From at least 2020 up to an including the present, defendants SWEENEY, TABAK, and TURNER conspired to distribute large quantities of methamphetamine, some of which was obtained from suppliers in New York, New York. Law enforcement officers seized at least approximately 1.5 kilograms of methamphetamine from SWEENEY, TABAK, and TURNER during controlled purchases and a parcel seizure. In multiple recorded conversations with an undercover law enforcement officer and a cooperating witness, TURNER claimed that SWEENEY manufactured methamphetamine at SWEENEY’s Suffolk County residence.
On November 23, 2020, SWEENEY was arrested in Suffolk County after law enforcement officers observed SWEENEY engage in a hand-to-hand narcotics sale. In connection with the November 23, 2020, arrest, law enforcement officers seized methamphetamine and a loaded .38 caliber revolver from SWEENEY. In addition, on January 18, 2021, in connection with an undercover purchase of methamphetamine, TURNER told an undercover law enforcement officer that SWEENEY pointed a 9mm firearm at TURNER’s head because SWEENEY suspected that the undercover was a law enforcement officer.
SWEENEY, 39, TABAK, 34, and TURNER, 43, all from Bayport, New York, are each charged with one count of conspiracy to distribute, or possess with intent to distribute, methamphetamines, a charge that carries a maximum term of life in prison and a mandatory minimum term of 10 years in prison. In addition, SWEENEY, is charged with one count of possessing a firearm during and in relation to a drug trafficking offense, which carries a mandatory minimum term of five years in prison, to be served consecutively to any other sentence.
Ms. Strauss praised the outstanding investigative work of the Suffolk County Police Department, the Suffolk County Sheriff’s Office, and the FBI’s Long Island Resident Agency. She also thanked the U.S. Postal Inspection Service for their assistance in the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Benjamin Woodside Schrier and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tampa Man Pleads Guilty to Manufacturing Counterfeit Federal Reserve Notes While on Supervised ReleaseRead the Press Release
Jacksonville, Florida – Darius Jondi Edwards (42, Tampa) has pleaded guilty to manufacturing counterfeit Federal Reserve notes. He faces up to 20 years in federal prison and payment of restitution to the victims he defrauded. Edwards is currently on federal supervised release and faces an additional 2 years in federal prison for violating the terms of his supervision. On September 23, 2020, Edwards appeared in federal court for violating his federal supervised release, and was detained. A sentencing date has not yet been set.
According to court documents, after pleading guilty in federal court in Jacksonville, in 2015, for manufacturing counterfeit Federal Reserve notes, Edwards was sentenced to 33 months in federal prison, followed by 3 years of supervised release. After printing the counterfeit currency, Edwards and others passed the currency throughout the Jacksonville area. After his release from prison, and while on federal supervised release, Edwards was arrested by officers from the Pinellas Park Police Department while in possession of counterfeit currency, partially completed counterfeit currency, and computer media used to manufacture counterfeit Federal Reserve notes. Further investigation by law enforcement determined that Edwards had purchased the computer media used to manufacture the counterfeit notes in Duval County. He then transported the computer media to Pinellas County and began manufacturing counterfeit Federal Reserve notes.
This case was investigated by the Pinellas Park Police Department and the United States Secret Service (Jacksonville Field Office). It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Springfield Woman Sentenced to 17 Years for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman was sentenced in federal court today for leading a conspiracy that distributed more than 15 kilograms of methamphetamine in a three-county area.
Christina E. Gauger, 39, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole.
Law enforcement officers seized a total of more than 2.5 kilograms of methamphetamine from Gauger in a series of traffic stops and searches of her residence. According to court documents, Gauger obtained a pound of methamphetamine per week during the conspiracy. She travelled to Kansas City, Mo., once or twice each week to purchase $30,000 to $40,000 worth of methamphetamine each trip. She then distributed the methamphetamine to at least five co-conspirators to distribute throughout Cass, Greene, and Miller counties.
On Aug. 8, 2019, Gauger pleaded guilty to one count of conspiracy to distribute methamphetamine, three counts of possessing methamphetamine with the intent to distribute, one count of possessing methamphetamine to distribute on premises in which a minor was present, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Gauger admitted that she participated in the drug-trafficking conspiracy from May 14, 2017, to June 20, 2018. Gauger also admitted that she was in possession of a Taurus 9mm semi-automatic pistol and a Davis Industries .22-caliber derringer handgun on March 14, 2018.
Gauger was arrested during a traffic stop on May 14, 2017, and a Cass County sheriff’s deputy found a bag in her vehicle that contained 110.77 grams of methamphetamine. Gauger was arrested again during a traffic stop on Sept. 5, 2017, and a Springfield police officer found four bags that contained a total of 82.3 grams of methamphetamine in her vehicle, along with $1,446 and an additional 6.68 grams of methamphetamine in a cosmetic compartment.
Officers executed a search warrant at Gauger’s residence on Jan. 17, 2018, and found five bags of methamphetamine that weighed a total of 73.37 grams, a loaded Taurus .22-caliber semi-automatic pistol in her possession, $8,000 in a safe, $3,191 in her possession, and $1,431 in her purse.
Officers executed another search warrant at Gauger’s residence on March 14, 2018, and found a canvas bag that contained 1,985 grams (4.37 pounds) of methamphetamine and $400, a plastic bag that contained approximately one-quarter pound of marijuana, a gallon-sized plastic bag that contained 299.98 grams (.66 pounds) of methamphetamine, a Taurus 9mm semi-automatic pistol in a bathroom drawer, a Davis Industries .22-caliber derringer handgun in the trunk of her car, a DVR surveillance system with cameras mounted on the exterior of the residence, $1,008 on her bedroom floor and $268 in her purse.
Co-defendant Jordan H. Williamson, 31, of Springfield, pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced to 204 months in federal prison without parole. Co-defendant Jacob B. Piatchek, 26, of Springfield, pleaded guilty and was sentenced to four years in federal prison without parole. Co-defendants Jason L. Thomas, 42, Robin L. Self, 38, and Patrick R. Waters, 33, all of Springfield, have pleaded guilty and await sentencing.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron Black. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Cass County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
South Dakota and Montana Teams that Convicted Former IHS Doctor for Serial Abuse of Native American Children Honored with Attorney General’s AwardRead the Press Release
From Left: AUSA Sarah Collins, AUSA Eric Kelderman, USA Ron Parsons, Paralegal Lori Climis, HHS-OIG Special Agent in Charge Curt Muller, and Retired BIA-OJS Special Agent Fred Bennett(RAPID CITY, SD) – In a ceremony on January 25, 2021, United States Attorney Ron Parsons presented several federal prosecutors and law enforcement officials with the prestigious Attorney General’s Award, the highest honor given by the Department of Justice, for their exceptional efforts in the multi-district federal prosecution of Stanley Patrick Weber.
A longtime pediatrician with the Indian Health Service (IHS), Weber was convicted on multiple counts for the sexual abuse of Native American children on the Pine Ridge Reservation in South Dakota and Blackfeet Reservation in Montana. He was first sentenced in Montana by U.S. District Judge Brian M. Morris to 18 years in federal prison. In South Dakota, he was then sentenced by U.S. District Judge Jeffrey L. Viken to five consecutive life sentences plus an additional 45 years, all of which was ordered to also run consecutive to the Montana sentence. Collectively, Weber was fined more than $1 million.
Fifteen men and women working for federal and tribal law enforcement agencies on the Weber prosecutions were among those honored with the 68th Annual Attorney General’s Award, given to Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws. The honorees were selected in late 2020 by then Attorney General William P. Barr. Typically, the U.S. Attorney General hosts a ceremony to honor recipients at Constitution Hall in Washington, D.C. The coronavirus pandemic prevented this event in 2020.
Five of the honorees were present in Rapid City to receive their awards from U.S. Attorney Parsons, including Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman, and Paralegal Lori Climis, who handled the successful prosecution for the U.S. Attorney’s Office for the District of South Dakota.
Retired BIA-OJS Special Agent Fred Bennett also was present to receive his award. It was Special Agent Bennett, an enrolled member of the Rosebud Sioux Tribe working as an investigator serving the Pine Ridge Reservation, who cracked the case that led to this successful result. He was the first law enforcement officer to convince one of Weber’s victims to go on record about the abuse that occurred. That critical event launched the investigation.
“This award honors the incredible work done by these talented and dedicated Federal and Tribal law enforcement professionals to bring this predator to justice,” said U.S. Attorney Parsons. “Just as importantly, it is a tribute to the true courage of Weber’s victims in stepping forward to reveal what was done to them as children to the juries who rendered these historic verdicts.”
"This case was always about getting justice for these victims who suffered from the actions of an evil man, a doctor who abused the kids entrusted to his care," added Special Agent Bennett, who recently retired from the Bureau of Indian Affairs after many years of distinguished federal service.
The investigations in both South Dakota and Montana were overseen by Curt Muller, Special Agent in Charge for the Department of Health and Humans Services, Office of Inspector General, who also was present in Rapid City to receive his award. Three other members of Muller’s team at HHS-OIG who worked on the federal investigation also received the award but were unable to attend: Assistant Special Agent in Charge Anissa D. Andrews and Special Agents Justin W. Reedy and Justin C. Christman.
Also receiving the Attorney General’s award for the Montana facet of the Weber cases were Assistant U.S. Attorneys Jeffrey K. Starnes and Lori A. Suek, Paralegal Tammy M. Farris, and Victim-Witness Specialist Keri Leggett from the U.S. Attorney’s Office for the District of Montana and Blackfeet Tribal Police Officers Frank Goings, Charlie Wolftail, and Sarah Wolftail.
Weber began working for IHS in 1986 in Oklahoma but transferred to the Blackfeet Reservation in Browning, Montana in 1992. While there, Weber used his position of trust in the community to gain access to, and sexually abuse, young Native American boys. He remained in Browning until 1995 when he transferred to the IHS facility in Pine Ridge, South Dakota, where he remained for nearly 21 years before being put on leave under a cloud of suspicion. For most of this period, he resided in IHS housing near the hospital and it was there, and in his office at IHS, that investigators learned, decades later, he sexually preyed upon more young Native American boys.
Notwithstanding years of suspicion on the part of other IHS employees, Weber sexually molested numerous male child patients managing, at the same time, even to attain promotions in Pine Ridge to supervisory positions at the hospital ultimately becoming the acting clinical director until he left while under investigation in 2016. After four years of demanding, painstaking investigation and preparation, the Districts of Montana and South Dakota joined to successfully deliver justice to this serial child abuser.
The severity of the federal sentences imposed for Weber’s egregious abuse helped to assuage some of the national outrage that his conduct engendered. The significance of the prosecutions was reflected in the attention the cases received from media outlets such as the Wall Street Journal and the investigative public television program Frontline. Notably, South Dakota Public Broadcasting Correspondent Victoria Wicks received the prestigious 2020 National Edward R. Murrow Award for her reporting on Weber’s trial from Rapid City.
Weber’s prosecution also directly resulted in the creation of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System, whose mission was to help restore confidence in IHS after these crimes shook the faith and trust of Native American communities. The Task Force presented its findings and recommendations on July 26, 2020. (The report may be found here).
South Carolina Woman Pleads Guilty to Assaulting A Postal WorkerRead the Press Release
MACON, Ga. – A Charleston, South Carolina, woman is facing a maximum eight years in prison for attacking a postal worker, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kelly Lynne McCormick, 33, of Charleston, formerly of Bonaire, Georgia, pleaded guilty to one count assault on a federal employee before U.S. District Judge Tilman E. “Tripp” Self, III. McCormick faces a maximum eight years in prison, to be followed by three years of supervised release, and a $250,000 fine. Sentencing is scheduled for April 6.
On April 23, 2019, a female United States Postal Service (USPS) employee was on duty delivering mail at the Exxon convenience store at 4290 Dellwood Avenue in Macon. After parking her USPS vehicle in front of the store and delivering mail to the store clerk, the USPS employee received consent from the clerk to use the store’s bathroom. The USPS employee was given the key to the bathroom and went inside. A clearly intoxicated female, later identified as McCormick, was pacing back and forth outside the bathroom occupied by the USPS employee.
As the USPS employee exited the bathroom and attempted to shut the bathroom door and lock it, McCormick tried to force her way into the bathroom without having first gained consent from the store clerk. The USPS employee attempted to shut the door and eventually had to push McCormick back away from her once McCormick became angry and screamed in the USPS employee’s face. The two women grappled briefly before they pushed one another away and disengaged. The USPS employee then went about her business as McCormick stormed out of the store. As the USPS employee walked to her vehicle, McCormick began yelling at her. McCormick then charged at the USPS employee and struck her in the head with a closed fist and briefly grappled with her until several bystanders were able to separate the two women. The entire incident was recorded on the convenience store’s surveillance camera system.
“Attacks on federal postal employees will not be tolerated. Those who harm a postal worker will face prosecution and the possibility of federal prison, without parole,” said Acting U.S. Attorney Leary. “I want to thank the U.S. Postal Inspection Service for its work investigating this case.”
“U.S. Postal Inspectors are committed to the safety of our Postal employees and will vigorously investigate all acts of violence against our employees and USPS infrastructure,” said USPS Miami Division Inspector In Charge, Tony Gomez.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Social Media Influencer Charged with Election Interference Stemming from Voter Disinformation CampaignRead the Press Release
BROOKLYN, NY – A criminal complaint was unsealed today in federal court in Brooklyn charging Douglass Mackey, also known as “Ricky Vaughn,” with conspiring with others in advance of the 2016 United States Presidential Election to use various social media platforms to disseminate misinformation designed to deprive individuals of their constitutional right to vote. Mackey was arrested this morning in West Palm Beach, Florida and will make his initial appearance via videoconference today before United States Magistrate Judge Bruce Reinhart at the federal courthouse in West Palm Beach.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“There is no place in public discourse for lies and misinformation to defraud citizens of their right to vote.” stated Acting United States Attorney DuCharme. “With Mackey’s arrest, we serve notice that those who would subvert the democratic process in this manner cannot rely on the cloak of Internet anonymity to evade responsibility for their crimes. They will be investigated, caught and prosecuted to the full extent of the law.”
“According to the allegations in the indictment, the defendant exploited a social media platform to infringe one the of most basic and sacred rights guaranteed by the Constitution: the right to vote,” stated Acting Assistant Attorney General McQuaid. “This indictment underscores the department’s commitment to investigating and prosecuting those who would undermine citizens’ voting rights.”
“Protecting every American citizen’s right to cast a legitimate vote is a key to the success of our republic. What Mackey allegedly did to interfere with this process—by soliciting voters to cast their ballots via text—amounted to nothing short of vote theft. It is illegal behavior and contributes to the erosion of the public’s trust in our electoral processes. He may have been a powerful social media influencer at the time, but a quick Internet search of his name today will reveal an entirely different story,” stated FBI Assistant Director-in-Charge Sweeney.
In 2016, Mackey established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as the 107th most important influencer of the then-upcoming Election, ranking it above outlets and individuals, among others, such as NBC News (#114), Stephen Colbert (#119) and Newt Gingrich (#141).
As alleged in the complaint, between September 2016 and November 2016, in the lead up to the November 8, 2016, United States Presidential Election, Mackey conspired with others to use social media platforms, including Twitter, to disseminate fraudulent messages designed to encourage supporters of one of the presidential candidates (the “Candidate”) to “vote” via text message or social media and thus to fail to cast their ballots in a legally valid manner.
For example, on November 1, 2016, Mackey tweeted an image that featured an African American woman standing in front of an “African Americans for [the Candidate]” sign. The image included the following text: “Avoid the Line. Vote from Home. Text ‘[Candidate’s first name]’ to 59925[.] Vote for [the Candidate] and be a part of history.” The fine print at the bottom of the image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by [Candidate] for President 2016.” The tweet included the typed hashtags “#Go [Candidate]” and another slogan frequently used by the Candidate. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “[Candidate’s first name]” or some derivative to the 59925 text number, which was used in multiple deceptive campaign images tweeted by the defendant and his co-conspirators.
If convicted of the charge, conspiracy against rights, Mackey faces up to 10 years in prison. The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Nathan Reilly are in charge of the prosecution, with Trial Attorney James Mann from the Department of Justice’s Public Integrity Section.
The Defendant:
DOUGLASS MACKEY
Age: 31
West Palm Beach, FloridaSocial Media Influencer Charged with Election Interference Stemming from Voter Disinformation CampaignRead the Press Release
A Florida man was arrested this morning on charges of conspiring with others in advance of the 2016 U.S. Presidential Election to use various social media platforms to disseminate misinformation designed to deprive individuals of their constitutional right to vote.
Douglass Mackey, aka Ricky Vaughn, 31, of West Palm Beach, was charged by criminal complaint in the Eastern District of New York. He was taken into custody this morning in West Palm Beach and made his initial appearance before U.S. Magistrate Judge Bruce E. Reinhart of the Southern District of Florida.
“According to the allegations in the complaint, the defendant exploited a social media platform to infringe one the of most basic and sacred rights guaranteed by the Constitution: the right to vote,” said Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “This complaint underscores the department’s commitment to investigating and prosecuting those who would undermine citizens’ voting rights.”
“There is no place in public discourse for lies and misinformation to defraud citizens of their right to vote,” said Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York. “With Mackey’s arrest, we serve notice that those who would subvert the democratic process in this manner cannot rely on the cloak of Internet anonymity to evade responsibility for their crimes. They will be investigated, caught and prosecuted to the full extent of the law.”
“Protecting every American citizen’s right to cast a legitimate vote is a key to the success of our republic,” said William F. Sweeney Jr., Assistant Director in Charge of the FBI’s New York Field Office. “What Mackey allegedly did to interfere with this process – by soliciting voters to cast their ballots via text – amounted to nothing short of vote theft. It is illegal behavior and contributes to the erosion of the public’s trust in our electoral processes. He may have been a powerful social media influencer at the time, but a quick Internet search of his name today will reveal an entirely different story.”
The complaint alleges that in 2016, Mackey established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as the 107th most important influencer of the then-upcoming Election, ranking his account above outlets and individuals such as NBC News (#114), Stephen Colbert (#119) and Newt Gingrich (#141).
As alleged in the complaint, between September 2016 and November 2016, in the lead up to the Nov. 8, 2016, U.S. Presidential Election, Mackey conspired with others to use social media platforms, including Twitter, to disseminate fraudulent messages designed to encourage supporters of one of the presidential candidates (the “Candidate”) to “vote” via text message or social media, a legally invalid method of voting.
For example, on Nov. 1, 2016, Mackey allegedly tweeted an image that featured an African American woman standing in front of an “African Americans for [the Candidate]” sign. The image included the following text: “Avoid the Line. Vote from Home. Text ‘[Candidate’s first name]’ to 59925[.] Vote for [the Candidate] and be a part of history.” The fine print at the bottom of the image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by [Candidate] for President 2016.”
The tweet included the typed hashtags “#Go [Candidate]” and another slogan frequently used by the Candidate. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “[Candidate’s first name]” or some derivative to the 59925 text number, which was used in multiple deceptive campaign images tweeted by the defendant and his co-conspirators.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorneys Erik Paulsen and Nathan Reilly of the Eastern District of New York, and Trial Attorney James Mann of the Criminal Division’s Public Integrity Section are prosecuting the case.
San Bernardino County Man Who Extorted Sexually Explicit Images from Women on Facebook Sentenced to 18 Months in Federal PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 18 months in federal prison for blackmailing female friends and acquaintances on Facebook by threatening to publish nude photographs and videos of them unless they complied with his demands of sending him additional sexually explicit images.
Jorge Esteban Sanchez Ramos, 24, of Ontario, who used a series of online aliases, including “Jose Gonzalez,” “George Sanchez” and “Jorge Ramirez,” was sentenced by United States District Judge Dolly M. Gee, who said, he “inflicted harm in a sadistic manner.” Sanchez Ramos pleaded guilty in June 2020 to one count of stalking.
From April 2016 to May 2018, Sanchez Ramos used multiple aliases and Facebook accounts to mask his identity while he contacted his victims, who were friends, and acquaintances from high school. The purpose of establishing these accounts was to extort nude images and videos from the victims using explicit images of the victims that Sanchez Ramos previously obtained.
Sanchez Ramos’ anonymous communications took on a variety of forms, but their substance was the same: a threat to publish nude or sexually explicit photographs of the women if they did not send him more nude photographs or videos of themselves.
On certain occasions, when the victims resisted his demands, Sanchez Ramos followed through on his threats and published sexually explicit photos of the victims on social media. If a victim blocked the Facebook account Sanchez Ramos was using to contact her, he then would create a new Facebook account and mock the victim for attempting to block him. He also threatened to rape one of the victims if she did not comply with his demands, according to court documents.
“[Sanchez Ramos] engaged in a pattern of activity spanning over two years in which he terrorized young women acquaintances,” prosecutors wrote in a sentencing memorandum. “[He] preyed upon their insecurities, convincing them to send explicit images of themselves to [him].”
The FBI and the Pomona Police Department investigated this matter.
Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section prosecuted this case.
Romanian National Sentenced to Five Years in Prison for Role in ATM Skimming ConspiracyRead the Press Release
TRENTON, N.J. – A Romanian national was sentenced today to 60 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey and elsewhere, Acting U.S. Attorney Rachael A. Honig announced.
Adrian Fichidiu, 37, previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. U.S. District Judge Peter G. Sheridan imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Fichidiu admitted he was part of an “ATM skimming” scheme that stole bank account information by installing hidden card-reading devices on ATMs throughout northern and central New Jersey. Fichidiu previously acknowledged that he and his conspirators created bank cards using the fraudulently obtained account information, which they used to unlawfully withdraw large amounts of cash from various ATMs. The scheme, which involved actual and attempted losses exceeding $1.5 million dollars, impacted over 1,000 bank customers.
In addition to the prison term, Judge Sheridan sentenced Fichidiu to five years of supervised release and ordered him to pay restitution that will be finalized at a later date.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., detectives with the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, and detectives with the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
Pittsburgh-area Man Headed to Halfway House for Damaging Pittsburgh Police Vehicle during ProtestRead the Press Release
PITTSBURGH, Pa. - A suburban Pittsburgh resident has been sentenced in federal court to one day in the custody of the U.S. Marshals, six months in a halfway house, three years of supervised release, and $1,000 restitution to be paid to Pittsburgh Police for the destruction of one of their motor vehicles on his conviction of Obstruction of Law Enforcement During Civil Disorder, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Brian Jordan Bartels, 21, Allison Park, PA 15101.
According to information presented to the court, on May 30, 2020, Bartels interfered with and obstructed the Pittsburgh Police during the course of the civil disorder that occurred in connection with the protests which took place in downtown Pittsburgh on that day. In particular, Bartels was convicted of initiating the destruction of a marked police vehicle that was parked on Centre Avenue above the PPG Arena. Bartels admitted to spray painting the vehicle, breaking a window out of the vehicle and smashing the windshield of the vehicle. Bartels also acknowledged that, when he did this, his actions encouraged others in the crowd to join in the destruction of the police vehicle. Several members of the crowd set fire to that vehicle shortly after Bartels left the area.
"Bartels’s actions incited riots in which police cars were burned, police officers were attacked and millions of dollars in property damage occurred in the city of Pittsburgh," said U.S. Attorney Brady. "This office will protect ordered liberty and apply the rule of law to those who would use the cover of protest to incite violence, whether in Pittsburgh or at our national’s Capitol."
"Inciting violence is not something we will tolerate," said FBI Pittsburgh Special Agent in Charge Michael Christman. "The actions and decisions Mr. Bartels made that day, while he said were a mistake, should be a reminder to everyone of the consequences that come with putting people in danger. A federal felony conviction carries with it a life time of explanation. I hope this makes others think twice before deciding to incite violence."
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and Pittsburgh Police for the investigation leading to the successful prosecution of Bartels.
Pittsburgh Man Charged with Escaping Federal CustodyRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal custody laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named De’Angelo King, 24, as the sole defendant.
According to the Indictment, King is alleged to have escaped from federal custody on November 16, 2020.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA has been indicted by a federal grand jury in Pittsburgh on a charge of possessing a firearm and ammunition as a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Arthur Lee Davis, III, 34, as the sole defendant.
According to the Indictment, on January 20, 2021, Davis, a previously convicted felon, knowingly possessed a firearm and ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The ATF and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania man admits to role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Zjaondezel Solomyn Douglas, of Zelionople, Pennsylvania, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S Attorney Bill Powell announced.
Douglas, 37, pleaded guilty today to one count of “Aiding and Abetting Distribution of Cocaine Base.” Douglas admitted to working with another to distribute cocaine base, also known as “crack,” in August 2018 in Hancock County.Douglas faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police 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. Magistrate Judge James P. Mazzone presided.
Indictment press release: https://www.justice.gov/usao-ndwv/pr/ohio-west-virginia-and-pennsylvania-residents-indicted-drug-conspiracy-ohio-valley
Owner of Jackson Business Pleads Guilty to Illegally Discharging Industrial Waste into Jackson’s Sewer SystemRead the Press Release
Jackson, Miss. – Andrew Walker, 70, of Jackson, Miss., pled guilty today in Federal District Court before Judge Kristi Haskins Johnson to having illegally discharged industrial waste into the Jackson Sewer System, announced Jean E. Williams, Deputy Assistant Attorney General of the Department of Justice’s Environmental and Natural Resources Division, Acting United States Attorney Darren J. LaMarca, Special Agent in Charge Charles Carfagno with the U.S. Environmental Protection Agency, Region 4; and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Walker was charged in a two count criminal Information filed by the United States Attorney’s Office in September 2020.
Andrew Walker, the owner of Rebel High Velocity Sewer Services of Jackson, Mississippi, (“Rebel”) admitted to having entered into a conspiracy with the generators and transporters of industrial waste illegally to discharge the waste into the Jackson Sewer System in order to avoid the expense of treating the waste to reduce pollutant concentrations, as required by law, and to evade sewer usage fees and the cost of disposing of the waste at legal off-site facilities.
According to the two counts of the Information and statements made in open court, in October, 2016, state and municipal authorities discovered that a local manufacturing company had been discharging large quantities of its industrial waste directly into the sewer serving its facility. Government agencies ordered the company to stop this illegal dumping and to ship the waste off site for legal treatment and disposal. Yet, from November 2016 through October 2017, Mr. Walker and his coconspirators evaded this order, arranging for the illegal disposal of this untreated industrial waste, first by misrepresenting the industrial waste to be domestic waste and dumping it at Jackson’s treatment plant, and then by discharging hundreds of truckloads of industrial waste into a city sewer pipe they excavated at Rebel. By the time this illegal waste disposal was discovered by state officials, the defendant and his coconspirators had discharged over three million gallons of untreated industrial waste into the same Jackson sewer system to which they had already been prohibited from dumping.
“Those who disregard the health and safety of our community to pollute our natural resources and waterways for easy profit will find themselves standing before a court of law to answer for their wrongs,” said Acting U.S. Attorney LaMarca.
"The defendant illegally disposed of more than 3.5 million gallons of industrial waste into the City of Jackson's sewer system in violation of the Clean Water Act," said Special Agent in Charge Charles Carfagno of EPA's Criminal Investigation Division in Atlanta, GA. “Today’s charges demonstrate that anyone who intentionally disregards the laws designed to protect the environment will be held responsible for their actions.”
“The Clean Water Act is in place to not only protect the environment, but to safeguard our communities and residents from the risks of industrial waste,” said FBI Special Agent in Charge Michelle Sutphin. “Circumventing the law to improperly dispose of waste in order to make a profit is a crime that the FBI and our partners take seriously. Criminal investigations into those who benefit from putting our communities’ health at risk will remain a priority for the FBI.”
Walker appeared for the change of plea hearing today before United States District Judge Kristi H. Johnson in Jackson. He remains released on conditions of bond pending a sentencing hearing, which has not yet been scheduled. Walker faces maximum penalties of 5 years in prison for the count of conspiracy, and 3 years in prison for the count of discharging industrial waste. Each count also can merit a fine of up to $250,000.
Acting United States Attorney Darren J. LaMarca commended the work of the Special Agents of the United States Environmental Protection Agency, and the FBI’s Jackson Division, as well as the Mississippi Department of Environmental Quality, who investigated the case. The case is being prosecuted by Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division of DOJ, and Assistant United States Attorney Theodore Cooperstein.
Orlando Man Sentenced to 18 Years for Distributing, Receiving, and Possessing Images and Videos Depicting the Sexual Abuse of ChildrenRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Ryan Rusty Rodriguez (45, Orlando) to 18 years in federal prison for distributing, receiving, and possessing images and videos depicting children being sexually abused. Rodriguez was also ordered to serve a 10-year term of supervised release upon the completion of his prison sentence and to register as a sex offender.
A federal jury had found Rodriguez guilty on October 29, 2020.
According to testimony and evidence presented at trial, during an undercover online investigation, FBI agents discovered that Rodriguez was using peer-to-peer networks to download and distribute child sex abuse materials over the internet. When agents executed a search warrant at Rodriguez’s home, he attempted to hide a hard drive as the agents were knocking on his door. Rodriguez also used his training in computers and specialized software to attempt to erase the evidence of his offenses. A subsequent forensic examination of Rodriguez’s computer media revealed evidence of thousands of images and videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys John Gardella, Shawn Napier, and Ilianys Rivera Miranda.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio County man faces child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Nicholas Wolf, of Wheeling, West Virginia, appeared in federal court today on a criminal complaint alleging child pornography possession, U.S. Attorney Bill Powell announced.
The complaint was filed today after the Wheeling Island home of Wolf, 34, was searched and officers found evidence of child pornography. According to the complaint, the search found a thumb drive containing over a thousand images of what appeared to be juveniles. Wolf was charged with “Possession of Child Pornography.” He was arrested, appeared before U.S. Magistrate Judge James P. Mazzone, and released.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Department of Homeland Security and Wheeling Police Department are investigating.
A complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
North Carolina Tax Preparer Charged with Conspiracy to Defraud the IRS and Aggravated Identity TheftRead the Press Release
WASHINGTON – A federal grand jury in Durham, North Carolina, returned an indictment yesterday charging a tax preparer with conspiring to defraud the United States, preparing false tax returns, filing a false personal tax return, and committing aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Andrea Marie Pasley worked at Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Pasley allegedly conspired to fraudulently inflate client refunds by claiming, among other things, false deductions to which the clients were not entitled. The false items purportedly included fabricated education expenses and dependents. The indictment further alleges that Pasley filed a false tax return and committed aggravated identity theft when she claimed a false dependent on her own 2015 personal return.
If convicted, Pasley faces a maximum sentence of five years in prison on the conspiracy charge, and a statutory mandatory sentence of two years on the aggravated identity theft charge. The defendant additionally faces a maximum sentence of three years in prison on each count of filing a false tax return and aiding and assisting in the preparation of a false tax return. The defendant also faces a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Tax Preparer Charged with Conspiracy to Defraud the IRS and Aggravated Identity TheftRead the Press Release
A federal grand jury in Durham, North Carolina, returned an indictment yesterday charging a tax preparer with conspiring to defraud the United States, preparing false tax returns, filing a false personal tax return, and committing aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Andrea Marie Pasley worked at Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Pasley allegedly conspired to fraudulently inflate client refunds by claiming, among other things, false deductions to which the clients were not entitled. The false items purportedly included fabricated education expenses and dependents. The indictment further alleges that Pasley filed a false tax return and committed aggravated identity theft when she claimed a false dependent on her own 2015 personal return.
If convicted, Pasley faces a maximum sentence of five years in prison on the conspiracy charge, and a statutory mandatory sentence of two years on the aggravated identity theft charge. The defendant additionally faces a maximum sentence of three years in prison on each count of filing a false tax return and aiding and assisting in the preparation of a false tax return. The defendant also faces a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nixa School Official Charged with Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An assistant principal at Nixa Junior High School in Nixa, Missouri, was charged in federal court today with the sexual exploitation of a child for the purpose of producing child pornography.
Colby Fronterhouse, 41, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., with one count of producing child pornography. Fronterhouse was employed at the junior high school at the time of the alleged offense.
According to an affidavit filed in support of the federal criminal complaint, a Christian County sheriff’s deputy was contacted by a 13-year-old child victim and his father in September 2020. The child victim, identified in court documents as “John Doe,” had been engaging in a series of text messages for approximately a week with Fronterhouse, whom the affidavit says posed as a 14-year-old girl. Fronterhouse, posing as a 14-year-old, allegedly encouraged John Doe to transmit sexually explicit images of himself to Fronterhouse, made specific requests for poses or types of images, and had sexually explicit conversations with John Doe.
Investigators learned that the phone used by Fronterhouse was a burner phone number with a Voice Over Internet Protocol (VoIP) account, the affidavit says, but they were able to trace the account to Fronterhouse. Officers executed a search warrant at Fronterhouse’s residence on Tuesday, Jan. 26, and he was arrested. Investigators seized Fronterhouse’s cell phone and found evidence linking his cell phone to the burner account. Investigators confirmed that Fronterhouse had access to the child victim’s cell phone number through school records.
The public’s assistance is being sought in this investigation. Anyone with information regarding additional potential victims is asked to contact Homeland Security Investigations Task Force Officer Joseph Fletcher at (417) 573-2606.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department, and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New Bern Woman Pleads Guilty to Methamphetamine Distribution and Tax FraudRead the Press Release
WILMINGTON, N.C. – A New Bern woman pleaded guilty today to Distribution of Fifty Grams or More of Methamphetamine and Aiding and Abetting (Count One) and Conspiracy to Defraud the Internal Revenue Service (Count Two).
According to court documents, on January 22, 2020, Antoinette Charmane Becton, age 40, aided and abetted the distribution of fifty grams or more of methamphetamine.
Law enforcement agents used a confidential informant and an undercover agent to arrange the purchase of one pound (approximately 453 grams) of methamphetamine from Becton, who stated that she would reach out to her supplier to obtain the methamphetamine.
Becton and her supplier then met with the confidential informant and undercover agent in a parking lot in Greenville, North Carolina where the transaction was completed. The drugs were field tested for the presence of methamphetamine, with positive results.
Prior to this crime, Becton owned and operated a tax return business known as Carolina Tax Services in New Bern. From 2014 to 2019, Becton conspired with others to electronically file false tax returns with the IRS.
By including false wage income, Becton caused the IRS to issue refunds the taxpayers were not entitled to.
At today’s hearing, the government proffered that Becton caused the filing of at least 489 false returns, seeking approximately $3.2 million in fraudulent refunds.
Becton faces a mandatory minimum of five years and maximum of 40 years in prison for the methamphetamine distribution offense. She faces a maximum of five years’ imprisonment for the tax fraud conspiracy when sentenced.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. The Greenville Police Department, the Craven County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Internal Revenue Service are investigating the case and Assistant U.S. Attorneys Scott Lemmon and Susan Menzer are prosecuting the case.
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. 4:20-CR-16-M-3.
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Nashville Murder Suspect Charged with Federal Firearms ViolationRead the Press Release
NASHVILLE, Tenn. – January 27, 2021 – Robert Rasean Smith, 28, of Nashville, was charged yesterday with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the criminal complaint, Smith was wanted for the murder of an individual on November 14, 2020, outside of the Wireless Z store on D.B. Todd, Jr. Boulevard in North Nashville. On December 5, 2020, officers with the Metropolitan Nashville Police Department located Smith sleeping in a car in the area of Haynes Park Court and arrested him. At the time of his arrest, Smith had a .45 caliber pistol in his waistband. Smith is a convicted felon and under federal law, is prohibited from possessing a firearm.
Smith’s prior felony convictions listed in the complaint include convictions in May 2011 for attempted aggravated burglary, for which he received a two-year prison sentence; aggravated robbery, for which he received an eight-year prison sentence; and evading arrest, for which he was sentenced to two years in prison.
If convicted of the instant offense, Smith faces up to 10 years in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Robert E. McGuire is prosecuting the case.
The defendant is presumed innocent until proven guilty in a court of law.
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Napa Man Charged with Possession of Five Pipe BombsRead the Press Release
SAN FRANCISCO – Ian Benjamin Rogers was charged yesterday in a federal criminal complaint with possessing five pipe bombs that were unregistered destructive devices, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
“We allege that Ian Benjamin Rogers possessed homemade pipe bombs and the materials to make more,” said U.S. Attorney Anderson. “We draw a bright line between lawlessness and our constitutional freedoms. We will prosecute illegal weapons stockpiles regardless of the motivation of the offender.”
“The FBI’s Joint Terrorism Task Force, the Napa County Sheriff’s Office, and the Napa Special Investigations Bureau discovered five pipe bombs and other explosive material during our joint investigation,” said FBI Special Agent in Charge Craig D. Fair. “The FBI investigates all credible threats, and our highest priority is ensuring public safety. We urge the public to remain vigilant. We need the community’s support in reporting threatening behavior and suspicious activity to local law enforcement or the FBI.”
The criminal complaint alleges that Rogers, 43, of Napa, possessed five pipe bombs discovered by law enforcement officers and agents during a search of his business on January 15, 2021. The complaint states that on that date, Rogers was arrested and a search warrant was served on Roger’s home and business in Napa County. Upon his arrest, at Roger’s business officers found a large gun safe. Inside the safe, the officers and agents discovered and seized several guns and the five pipe bombs. They also identified other materials at the scene that could be used to manufacture destructive devices, including black powder, pipes, endcaps, and manuals, including The Anarchist Cookbook, U.S. Army Improvised Munitions Handbook, and Homemade C-4 A Recipe for Survival.
At least 49 guns were seized from Roger’s home and business along with thousands of rounds of ammunition. Officers and agents also discovered a sticker on Roger’s vehicle window that is commonly used by so-called “Three-Percenters,” people who ascribe to extreme anti-government, pro-gun beliefs.
Rogers was arrested on January 15, 2021, and appeared in Napa County state criminal court on state illegal firearm charges. He is being held in state custody in lieu of a $5 million bail as he awaits a preliminary hearing. Federal prosecutors intend to seek Rogers’s appearance in federal court on the charges in the complaint upon the issuance of a federal order to transfer Rogers to the United States District Court in San Francisco. The date of such appearance has not yet been set.
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.
Rogers is charged with unlawful possession of unregistered destructive devices, in violation of 26 U.S.C. §§ 5861(d), 5845(a)(8), and 5845(f). If convicted, the charge carries a maximum penalty of 10 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The United States Attorney’s Office Special Prosecutions Section is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Napa County Sheriff’s Office, and the Napa Special Investigations Bureau.
Miamisburg man pleads guilty to coercing minors onlineRead the Press Release
DAYTON – Steven Shawn Smith, 48, of Miamisburg, Ohio, pleaded guilty in U.S. District Court today to attempting to coerce a minor while registered as a sex offender.
Parties involved in Smith’s case have recommended a sentence of 25 years in prison.
According to his plea, Smith created nine online dating profiles with the names “Sammy” and “Shaw.” From April 2020 through October 2020, Smith communicated with an undercover FBI agent posing as a minor. Smith requested nude images from the undercover agent on multiple occasions. The defendant also sent images of his nude genitalia to the undercover agent.
In one communication, when the undercover agent refused to send nude photos, Smith said, “I know that you don’t want to send me those pictures but I was hoping that you would understand just how much it would mean to me and how close it would bring us.”
Court documents detail that Smith discussed meeting with the undercover agent to engage in sexually explicit conduct and sent the officer $75 via Cash App so that the purported minor could buy a one-way bus ticket to Ohio.
In addition to communicating with the undercover agent, Smith messaged more than 170 other online users who identified themselves as minors. He received sexually explicit images from at least 21 of the purported minors and sent nude images of himself to at least 70 users.
Smith was convicted in 1994 in Athens County Common Pleas Court of one count of rape of a child, and as a result, is required to register as a sex offender.
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 plea entered into today before U.S. District Judge Michael J. Newman. Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Mexican national indicted for using deceased American’s identityRead the Press Release
CORPUS CHRISTI, Texas – A 76-year-old Mexican national has been charged with making false statements in an application for a U.S. passport and theft of Social Security benefits, announced U.S. Attorney Ryan K. Patrick.
Alberto Betancourth Valdes allegedly used the identity of an American citizen for more than two decades. A federal grand jury returned the indictment today. He is expected to make his initial appearance before a U.S. magistrate judge in the near future.
The criminal complaint originally filed in the case indicates Valdes submitted a renewal application for a U.S. passport by representing himself as a U.S. citizen from Texas. The passport application and documents were sent to the National Passport Center in Irving and subsequently referred to the fraud prevention unit, according to the charges. The documents were valid, according to the allegations, but the actual person had passed away in 1952.
According to the indictment, Valdes had previously been deported in 1975. He allegedly used the citizen’s identity to obtain Social Security benefits he would not have been entitled to receive under his true identity. Authorities took him into custody when he attempted to re-enter the United States using the fraudulently-obtained U.S. passport issued in the victim’s name, according to the charges.
If convicted, Valdez faces up to 10 years in federal prison for making a false statement in an application for a passport as well as five years for Social Security benefits fraud. Each count also carries a possible $250,000 fine, upon conviction.
Social Security Administration - Office of the Inspector General, Customs and Border Protection and Department of State’s Diplomatic Security Service conducted the investigation. Assistant U.S. Attorneys Christopher Marin and Robert Thorpe are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican National Indicted for Shooting at U.S. Border Patrol AgentsRead the Press Release
In Del Rio today, a federal grand jury indicted 34-year-old Mexican national Sergio Trevino for allegedly shooting at two U.S. Border Patrol agents near Brackettville, announced U.S. Attorney Gregg N. Sofer; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
According to court documents, on January 3, 2021, U.S. Border Patrol agents attempted to stop Trevino who was driving a Chevy Suburban northbound on Texas Ranch Road 334 just north of Brackettville. A high-speed chase ensued as Trevino attempted to abscond. During the pursuit, Trevino fired multiple shots at the agents.
Spike strips were used to bring the Suburban to a stop. Trevino fled from the vehicle and was later apprehended. Six Honduran nationals were found in the vehicle along with 28-year-old Jesseca Ann Whitmire, a U.S. citizen.
The indictment charges Trevino with one count of assault on a federal officer; one count of using a firearm during a crime of violence; one count of conspiracy to transport illegal aliens; one count of felon in possession of a firearm; and one count of being an illegal alien in possession of a firearm.
The indictment also charges Whitmire, 38, of Houston with conspiracy to transport illegal aliens.
Trevino and Whitmire face up to 10 years in federal prison upon conviction of conspiracy to transport illegal aliens. Trevino also faces, upon conviction, up to 20 years in federal prison for the assault charge; between 10 years and life in federal prison for using a firearm during a crime of violence; up to 10 years in federal prison for felon in possession; and up to 10 years in federal prison for being an illegal alien in possession of a firearm.
Trevino has a prior felony conviction for burglary of a habitation with intent to commit other felony. Trevino and Whitmire have remained in federal custody since their arrests on January 3.
HSI and FBI are investigating this case. The Texas Department of Public Safety, Kinney County Sheriff’s Office and Real County Sheriff’s Office assisted Border Patrol agents in apprehending Trevino, Whitmire and the illegal aliens. Assistant U.S. Attorney John Cooper is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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McNairy County Armed Career Criminal Sentenced to 15 Years for Illegally Possessing a FirearmRead the Press Release
Jackson, TN – Bobby Earl Oliver, 33, of Adamsville, Tennessee, has been sentenced to 180 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on September 26, 2019, an officer with the Selmer Police Department conducted a traffic stop on Oliver's vehicle for speeding. During the course of the traffic stop, Oliver admitted to having a pistol located beside the driver’s seat. While searching the vehicle, law enforcement located a Jennings .380 caliber pistol beside the driver's seat.
Oliver is a convicted felon, having been previously convicted of three counts of burglary in October 2008 and possession of methamphetamine with the intent to deliver in April 2018 in Hardin County. Additionally, after he committed the present offense in September 2019, Oliver was convicted of delivery of methamphetamine in McNairy County in January 2020.
As a result of his felony convictions, Oliver is prohibited by federal law from possessing firearms or ammunition, and was determined to be an armed career criminal under the federal sentencing guidelines and subject to a mandatory minimum sentence of 180 months.
On January 26, 2021, Chief U.S. District Judge S. Thomas Anderson sentenced Oliver to 180 months in federal prison and 3 years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the Oliver was an armed career criminal who continued to commit crimes and possess a firearm despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this sentence removing him from the community for 15 years will make McNairy County and West Tennessee a safer place."
The Selmer Police Department, the Federal Bureau of Investigation (FBI), 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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Maryland U.S. Attorney’s Office Continues Fight Against Human TraffickingRead the Press Release
Baltimore, Maryland - January is Human Trafficking Awareness Month. As a founding member of the Maryland Human Trafficking Task Force, the Maryland U.S. Attorney’s Office pledges to continue to combat human trafficking by working with our partners to investigate and prosecute traffickers and rescue victims. The Maryland Human Trafficking Task Force is a collaborative effort of trafficking survivors, social workers, community organizers, medical professionals, law enforcement officers, prosecutors, and citizen volunteers dedicated to eradicating human trafficking and providing support, treatment, and resources for human trafficking survivors. Our communities, including the vulnerable victims who are the targets of traffickers, benefit greatly from awareness of the types of human trafficking; indicators of human trafficking; and resources available to survivors of human trafficking.
Human trafficking is defined as using force, fraud, or coercion to obtain labor or engage in commercial sex acts. Often, traffickers make false promises of a job or pose as benefactors to lure their victims and force them into human trafficking. Although human trafficking is usually associated with commercial sex, labor trafficking is just as prominent. Forced labor is a category of human trafficking in which individuals are coerced into legitimate and illegitimate industries, including domestic service, massage parlors, agriculture, restaurants, hotels, and manufacturing sweatshops. According to the U.S. State Department, human trafficking is now the second highest grossing criminal enterprise, with more than $150.2 billion per year earned from the use of forced labor.
Human trafficking has many faces. Victims can be of any age, race, gender, nationality, and come from any socioeconomic group. Human traffickers often target the most vulnerable, including individuals who suffer from disenfranchisement, social exclusion, or economic vulnerability (including individuals who have a history of domestic violence, substance abuse, reside in an unstable living situation, and youths in foster care or the juvenile justice system). Foreign-born individuals face unique challenges, such as language barriers and economic instability, leaving them at the mercy of their traffickers.
Maryland is not exempt from the horrors of human trafficking. The close proximity between areas of affluence and poverty, a substantial immigrant population, and other factors create favorable conditions for human traffickers (and their customers) to exploit the vulnerable—including children, recent immigrants, the drug-addicted, and those facing housing instability. Maryland’s central location on the Eastern Seaboard makes it both a pass-through state and a destination for human traffickers. The Interstate 95 corridor’s numerous hotels, rest stops, truck stops, and bus stations are prime locations for traffickers to exploit their victims. According to the National Human Trafficking Hotline, 187 instances of human trafficking in Maryland were reported to the Hotline through 2019, the most recent year with statistics. [https://humantraffickinghotline.org/state/Maryland] Hotline calls from 130 victims and survivors reported a connection to Maryland.
An effective way to combat human trafficking is to connect with fellow community members and look for key signals and indicators. Common indicators that a person could be a victim of human trafficking include (but are not limited to) a disconnection from social groups, dangerous or unsuitable living conditions, bruises in various stages of healing, and apparent coaching on what to say in response to questions. Other ways to combat human trafficking are by attacking the conditions that lead to trafficking, such as poverty, addiction, and homelessness; educating yourself and others on trafficking indicators; and reporting suspicious activity to the National Human Trafficking Hotline at 1(888)-373-7888. You can also Text “HELP” or “INFO” to 233733. Visit the Department of Homeland Security and Investigation’s Blue Campaign for more indicators of human trafficking. For more information on human trafficking in Maryland, please visit the Maryland Human Trafficking Task Force’s website.
Federal Prosecution of Human Trafficking Cases – Examples in 2020
United States v. Sirron Little: On September 30, 2020, a federal grand jury returned a four-count superseding indictment charging Sirron Little, age 29, of Washington, D.C., with conspiracy to engage in sex trafficking of a minor and related charges. The superseding indictment alleges, among other things, that Little used violence and threats of violence to coerce the victim to engage in prostitution in Prince George’s County, Maryland. If convicted, Little faces up to life in prison for conspiracy to engage in sex trafficking of a minor; a mandatory minimum of 15 years and up to life in prison for sex trafficking of a minor by force, fraud, and coercion; a mandatory minimum of 10 years and up to life in prison for coercion and enticement of a minor; and a maximum of 10 years in prison for being a felon in possession of a firearm. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States v. Kenneth Hart: Kenneth Wayne Hart, a/k/a Redds, Wayne Hawkins, Hawk, Big Daddy, Billy Reds, and Bill Red Hart, age 59, of Beltsville, Maryland, was sentenced on October 7, 2020 to 25 years in federal prison, followed by 20 years of supervised release, on federal charges of conspiracy to distribute and possess with intent to distribute narcotics; a sex trafficking conspiracy; two counts of sex trafficking by force, fraud, and coercion; and witness tampering. Hart was convicted of those charges on March 12, 2020, after a seven-day jury trial. According to the evidence presented at trial, from December 2016 to April 2017, Hart and a co-conspirator ran a prostitution business. Hart recruited women to work in the prostitution business and supplied the victims with heroin and crack cocaine on a daily basis. Hart threatened to withhold—and did withhold—the narcotics if the victims displayed any sign of disobedience or tried to leave the locations where the commercial sex acts occurred. In order to maintain control over the women he recruited to prostitute, Hart demanded that the women surrender to him their personal belongings, including identification cards, credit cards, cash, clothing, and cellular phones, and confiscated their earnings from the commercial sex acts. As detailed in trial testimony, Hart installed a padlock on the bedroom door of a condominium Hart used for the prostitution business, and locked the victims in the room for hours or days at a time, using a daily combination of heroin and crack cocaine to control and coerce the victims. Hart also used physical force, threatened physical force, and verbally abused the victims to force them to engage in prostitution against their will. Even if the door to the bedroom was left open, the victims feared leaving the room and the condominium because they believed that Hart would find them no matter where they went, and that Hart would punish them for trying to leave him.
United States v. Aaron Crawford: On November 2, 2020, a federal grand jury returned a four-count superseding indictment charging Aaron Crawford, age 35, of Capitol Heights, Maryland, with coercion and enticement of a minor, production of child pornography, sex trafficking of a minor, and sex trafficking by force, fraud, and coercion. The superseding indictment alleges that Crawford trafficked two different minor victims in Prince George’s County, Maryland. If convicted, Crawford faces a mandatory minimum of 10 years and up to life imprisonment for coercion and enticement of a minor and for sex trafficking of a minor; a mandatory minimum of 15 years and up to life in prison for sex trafficking by force, fraud, and coercion; and a mandatory minimum of 15 years and a maximum of 30 years in prison for production of child pornography. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States v. Dominique Bell: On November 18, 2020, a federal grand jury returned a superseding indictment charging Dominique Bell, age 29, of Washington, D.C., with sex trafficking by force, fraud, and coercion, and with coercion and enticement. If convicted, Bell faces a mandatory minimum of 15 years and up to life in prison; and a maximum of 20 years in prison for coercion and enticement. The alleged conduct occurred in Prince George’s County. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States v. Ryan Odell Oliver: Ryan Odell Oliver, a/k/a Dre, Fame, and Foreign, age 38, of Baltimore, Maryland, was indicted on December 2, 2020, on federal charges for conspiracy to commit sex trafficking and sex trafficking; conspiracy related to interstate prostitution and interstate transportation for prostitution; enticement to travel interstate for the purposes of prostitution; and possession of ammunition by a felon. According to the 10-count indictment, from at least July 2018 through January 2019, Oliver and a co-conspirator recruited, transported, maintained, and trafficked two adult women, Victim 1 and Victim 2, using threats, force, and coercion to cause those victims to engage in commercial sex acts. Oliver and the co-conspirator (who died in March 2019) allegedly received money and other things of value by having the women engage in commercial sex acts. From January 2018 through August 2018, the indictment alleges that Oliver also caused Victim 3 to engage in commercial sex acts, for which Oliver received money and other things of value. At some point during the conspiracy Oliver allegedly physically assaulted all three of the victims, including forced sexual intercourse or other sex acts, striking them with his hands, choking them, and displaying a firearm to them. The indictment further alleges that Oliver illegally possessed 59 cartridges of 9mm and 7.62 x 39mm ammunition, which Oliver knew he was prohibited from possessing due to a previous felony conviction. If convicted, Oliver faces a maximum sentence of life in federal prison for conspiracy to commit sex trafficking; a mandatory minimum of 15 years and up to life in federal prison for each count of sex trafficking; and a maximum of five years in federal prison for conspiracy related to interstate prostitution. He also faces a maximum of 10 years in federal prison for each count of two counts of interstate transportation for prostitution, for each of two counts of enticement to travel interstate for the purposes of prostitution, and for being a felon in possession of ammunition. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States v. Robert Diienno: Robert Carl Diienno, age 32, formerly of Laurel, Maryland, was sentenced on December 8, 2020, to two years in federal prison, followed by five years of supervised release, for enticing three victims to travel in interstate commerce for the purposes of prostitution. According to his plea agreement, from at least November 2016 through June 2017, Diienno acted as a pimp for Victim 1, and at other times for Victims 2 and 3, who were all adult women. During that time, Diienno persuaded, enticed, induced, and coerced the victims to engage in a prostitution enterprise that included travel along the Southeastern Seaboard. Diienno and the victims resided at a residence in Laurel, which was used as a group home and the base of the enterprise. “Meeting minutes” recovered from the house identify the location as “Duh ho house,” and include attendance at the meeting; a report on potential new recruits; and the “Comptroller’s Report” showing the amount earned by each of the victims related to their prostitution activities. Law enforcement also recovered documents titled, “ho Training Manual,” “ho Rules,” and “Pimp/ho Contract.” The documents stated requirements that a “ho” submits to the control of the “Pimp,” including accepting any punishment the Pimp decides to inflict, with certain limitations, such as punishment must not incur permanent bodily harm, and must stop immediately if blood is drawn, among others. On June 1, 2017, Laurel Police Department was called to the residence for a disturbance at that location. Victim 1 and Victim 3 were found hiding in a nearby treeline and reported that Diienno had assaulted Victim 1 when she refused to walk the streets. Diienno was arrested. During the subsequent investigation, two firearms belonging to Diienno were recovered from the Laurel residence.
Federal Grant Funding
On August 4, 2020, U.S. Attorney Robert K. Hur announced that Maryland received $999,990 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking. The grant, awarded to the Salvation Army and the University of Maryland SAFE Center for Human Trafficking Survivors, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The Salvation Army and the University of Maryland SAFE Center were among 73 organizations nationwide receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
On October 7, 2020, U.S. Attorney Hur announced $1,047,593 in Department of Justice grants to Howard County to assist human trafficking victims in Maryland. Howard County received the funds to support their collaborative task force to end human trafficking and to provide services to victims of this terrible crime.
Training
In 2020, despite COVID-19 concerns forcing the cancellation of the Human Trafficking Investigators Seminar, the U.S. Attorney’s Office and our partners conducted seven training events for law enforcement and other professionals fighting human trafficking, training a total of 429 individuals.
So far in 2021, during Human Trafficking Awareness Month the U.S. Attorney’s Office is conducting the annual Maryland Human Trafficking Professionals Seminar (MHTPS) virtually, providing training to 123 individuals, including victim advocates, mental health professionals, local, state, and federal law enforcement, and prosecutors, with additional MHTPS events scheduled in the upcoming months.
The U.S. Attorney’s Office for the District of Maryland has deployed many resources in the fight against human trafficking and we will continue to make the investigation and prosecution of human trafficking cases a priority.
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Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud SchemesRead the Press Release
Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
Epsilon entered into a deferred prosecution agreement (DPA) with the Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Colorado in connection with a criminal information charging the company with one count of conspiracy to commit mail and wire fraud.
Under the terms of the DPA, which the parties submitted to the district court in Denver on Jan. 19, 2021, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of the fraudulent schemes that used consumer data sold by Epsilon. Epsilon also agreed to implement significant compliance measures designed to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns. Further, the DPA requires Epsilon to maintain a procedure for consumers to request that it not sell their information to others.
Headquartered in Irving, Texas, with its principal sales office in Westminster, Colorado, Epsilon used sophisticated data modeling to identify consumers most likely to respond to its clients’ marketing solicitations. As part of the DPA, Epsilon admitted that, from July 2008 through July 2017, employees in its Direct to Consumer (DTC) Unit knowingly sold modeled lists of consumers to clients engaged in fraud. In particular, Epsilon acknowledged that the DTC Unit sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations — as known to DTC Unit employees — were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by the DTC Unit to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals.
The consumer data sold by the DTC Unit to fraudsters came both from other fraudulent clients and from legitimate Epsilon clients, including non-profit and charitable organizations. DTC Unit employees continued to sell consumer data to clients engaged in fraud despite knowing that those and similar clients had been arrested, charged with crimes, convicted, and otherwise subject to law enforcement actions for false and misleading practices. Epsilon admitted that the DTC Unit sold more than 30 million consumers’ data to fraudulent schemes.
“By allowing clients engaged in fraudulent schemes to buy data on millions of consumers most susceptible to their schemes, Epsilon employees facilitated those schemes with staggering effect,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “We are encouraged by Epsilon’s cooperation since the misconduct was discovered, its remediation efforts, and its commitment to stringent new compliance measures.”
“Companies who sell consumer information have a responsibility to avoid knowingly selling it to those who will use the data to defraud or swindle consumers,” said U.S. Attorney Jason Dunn for the District of Colorado. “I hope other data companies will take note of this outcome and ensure that they don’t likewise help fraudsters.”
“Postal Inspectors have always held consumer protection as a core tenet of our efforts to ensure the integrity of the U.S. Mail,” said Deputy Chief Postal Inspector Craig Goldberg of the U.S. Postal Inspection Service. “When data firms such as Epsilon use their extraordinary access to consumers’ personal information to provide laser-focused marketing lists supporting deceptive practices, more American consumers are placed in harm’s way. Firms that amass big data assume a big responsibility to ensure this data is not used by malicious actors. If you cater to criminals who are exploiting Americans through the U.S. Mail, Postal Inspectors are coming for you.”
The DPA provides that Epsilon must select, and cover the costs of, an independent claims administrator to distribute the $127.5 million to identified victims with established losses caused by fraud schemes that used Epsilon data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-epsilon-data-management-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
The U.S. Postal Inspection Service investigated the case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Hetal J. Doshi and Rebecca Weber of the U.S. Attorney’s Office for the District of Colorado are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For information on the U.S. Attorney's Office for the District of Colorado, visit its website at https://www.justice.gov/usao-co.
Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud SchemesRead the Press Release
Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
Epsilon entered into a deferred prosecution agreement (DPA) with the Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Colorado in connection with a criminal information charging the company with one count of conspiracy to commit mail and wire fraud. Under the terms of the DPA, which the parties submitted to the district court in Denver on Jan. 19, 2021, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of the fraudulent schemes that used consumer data sold by Epsilon. Epsilon also agreed to implement significant compliance measures to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns. Further, the DPA requires Epsilon to maintain a procedure for consumers to request that it not sell their information to others.
Headquartered in Irving, Texas, with its principal sales office in Westminster, Colorado, Epsilon used sophisticated data modeling to identify consumers most likely to respond to its clients’ marketing solicitations. As part of the DPA, Epsilon admitted that, from July 2008 through July 2017, employees in its Direct to Consumer (DTC) Unit knowingly sold modeled lists of consumers to clients engaged in fraud. In particular, Epsilon acknowledged that the DTC Unit sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations—as known to DTC Unit employees—were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by the DTC Unit to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals. The consumer data sold by the DTC Unit to fraudsters came both from other fraudulent clients and from legitimate Epsilon clients, including non-profit and charitable organizations. DTC Unit employees continued to sell consumer data to clients engaged in fraud despite knowing that those and similar clients had been arrested, charged with crimes, convicted, and otherwise subject to law enforcement actions for false and misleading practices. Epsilon admitted that the DTC Unit sold more than 30 million consumers’ data to fraudulent schemes.
“Companies who sell consumer information have a responsibility to avoid knowingly selling it to those who will use the data to defraud or swindle consumers,” said U.S. Attorney Jason Dunn. “I hope other data companies will take note of this outcome and ensure that they don’t likewise help fraudsters.”
“By allowing clients engaged in fraudulent schemes to buy data on millions of consumers most susceptible to their schemes, Epsilon employees facilitated those schemes with staggering effect,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “We are encouraged by Epsilon’s cooperation since the misconduct was discovered, its remediation efforts, and its commitment to stringent new compliance measures.”
“Postal Inspectors have always held consumer protection as a core tenet of our efforts to ensure the integrity of the U.S. Mail,” said Deputy Chief Postal Inspector Craig Goldberg of the U.S. Postal Inspection Service. “When data firms such as Epsilon use their extraordinary access to consumers’ personal information to provide laser-focused marketing lists supporting deceptive practices, more American consumers are placed in harm’s way. Firms that amass big data assume a big responsibility to ensure this data is not used by malicious actors. If you cater to criminals who are exploiting Americans through the U.S. Mail, Postal Inspectors are coming for you.”
The DPA provides that Epsilon must select, and cover the costs of, an independent claims administrator to distribute the $127.5 million to identified victims with established losses caused by fraud schemes that used Epsilon data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-epsilon-data-management-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
The U.S. States Postal Inspection Service investigated the case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Hetal J. Doshi and Rebecca Weber of the U.S. Attorney’s Office for the District of Colorado are prosecuting the case.
CASE NUMBER: 21-cr-00006-RM
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Man from To’hajiilee pleads guilty and is sentenced on federal escape chargeRead the Press Release
ALBUQUERQUE, N.M. – Michael Kelewood, 35, of To’hajiilee, New Mexico, pleaded guilty in federal court on Jan. 13 to a charge of escape from the custody of the Attorney General.
According to court records, on Aug. 9, 2019, Kelewood, who was confined at a halfway house in Bernalillo County, New Mexico, for a previous felony conviction, walked away from the halfway house without permission and did not return. The United States Marshal’s Service located Kelewood a week later and arrested him. Kelewood was charged on Dec. 3, 2020.
Upon the guilty plea, the court sentenced Kelewood to eight months in prison followed by three years of supervised release.
The United States Marshals Service investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
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