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26 January 2021
Florida Man Sentenced for Threatening A VA EmployeeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael F. Hanley, 49, of Clearwater, Florida, who was convicted of threatening a federal employee, was sentenced to serve three years probation, to include six months home detention, by U.S. Magistrate Judge Michael J. Roemer.
Assistant U.S. Attorney Douglas A. Penrose, who handled the case, stated that the defendant was formerly employed by the United States Department of Veterans Affairs (VA) as a Veterans Claims Examiner. During his tenure at the VA, Hanley became acquainted with another VA employee (Victim), and the two had a history of contentious interactions. The defendant left a series of similar voicemails on the Victim’s phone between October 2018 and November 2019, in which he threatened to kill the Victim and the Victim’s family.
The sentencing is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
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Felon sentenced to prison for illegally possessing firearmRead the Press Release
HELENA — A man who admitted pawning a firearm after having been convicted of a felony was sentenced today to 26 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Daniel Wayne Baker, 52, a transient, pleaded guilty on Sept. 22, 2020 to prohibited person in possession of a firearm.
U.S. District Judge Sam E. Haddon presided.
In court documents filed in the case, the prosecution said that on Dec. 2, 2019, Baker possessed and pawned a .357 revolver at a pawnshop in Helena. On Jan. 15, 2020, a woman from the Helena area reported Baker’s possession of the revolver to the Lewis and Clark County Sheriff’s Office because he still owed her money from the pawn of the firearm. A deputy confirmed with the Montana Department of Corrections that Baker was on state supervision for a 2013 felony conviction. Baker told law enforcement that he took the firearm from the woman because it caused her distress and acknowledged he could not possess firearms because he was a convicted felon.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montana Department of Corrections’ Probation and Parole and the Lewis and Clark County Sheriff’s Office.
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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Federal Inmate Pleads Guilty to Making Threats Against Federal AgentsRead the Press Release
BOSTON – A former inmate at the Federal Medical Center (FMC) Devens was sentenced today in connection with making threats against federal agents and threatening to cause an explosion at a federal courthouse.
Nathan Danforth, 34, was sentenced by U.S. District Court Judge Timothy S. Hillman to three years in prison and three years of supervised release. Danforth pleaded guilty on Jan. 20, 2021 to one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosives.
In July 2019, Danforth, then an inmate at FMC Devens, attempted to mail a letter to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth sent an email from FMC Devens to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office prosecuted the case.
Fairland Woman who Embezzled from her Employer and Signed a False Tax Return SentencedRead the Press Release
A woman who stole nearly $232,000 from her employer over a two-year period and signed a false income tax return was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John F. Heil III sentenced Stephanie K. Gragg, 45, of Fairland, to 12 months in federal prison followed by one year supervised release. The judge further ordered Gragg to pay restitution in the amounts of $231,964 to Shangri-La Management LLC and $55,036 to the IRS.
“Stephanie Gragg’s corrupt financial shenanigans have earned her the title of convicted felon. Her employer entrusted her with access to corporate funds, and she took advantage of her position to divert corporate money into her personal accounts and to feed a gambling habit,” said U.S. Attorney Trent Shores. “The agents of IRS-Criminal Investigation, in concert with the FBI, are to be commended for their work. From embezzlement to tax crimes to large scale organized crime, they meticulously follow the money to ensure criminals are brought to account for their crimes.”
“Mrs. Gragg's crimes were not victimless. Every time someone cheats on their taxes, there are more than 300 million victims,” said Mark Pearson, IRS-Criminal Investigation Acting Special Agent in Charge of Dallas Field Office. “Honest taxpayers need to be reassured that everyone is paying their fair share. Together with our law enforcement partners, IRS-Criminal Investigation will continue the pursuit of those who violate our tax system.”
From January 2014 to December 2016, Gragg used her access to Shangri-La Management LLC’s cash collections to take $231,964 in cash funds to enrich herself. She deposited a portion of the embezzled cash into her personal accounts at Arvest Bank to pay for personal and family expenses. She also used a portion of the cash funds to gamble.
Gragg further admitted that she knowingly failed to report on her tax returns the funds that she misappropriated from her employer. For example, Gragg signed, under penalty of perjury, her 2016 Form 1040, U.S. Individual Income Tax Return, in which she failed to report $103,377 in illegally obtained funds.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger prosecuted the case.
Everett, Washington, call center manager pleads guilty to defrauding homeownersRead the Press Release
Seattle – The manager of an Everett, Washington, call center pleaded guilty today in U.S. District Court in Seattle to a conspiracy to defraud approximately 1,000 distressed homeowners facing foreclosure, announced U.S. Attorney Brian T. Moran. EDWIN JOSUE HERRERA ROSALES aka “Josh Herrera,” 34 , pleaded guilty to one count of conspiracy to commit wire fraud in connection with his operation of call centers that operated under the names “Sound Solutions Group,” “Community Assistance Center,” and California-based “Sienna Support Network.”
HERRERA ROSALES and his co-conspirators sent solicitation mailers to distressed homeowners nationwide. The mailers promised that HERRERA ROSALES’ organization could reduce homeowners’ mortgage debts and lower their monthly payments. When homeowners called the call center, operators put the callers through a phony “underwriting” process and then told the callers that the company’s legal and underwriting staff had determined it could negotiate a favorable mortgage modification in exchange for an upfront fee of $3,000. In fact, the call center had no legal or underwriting staff, and many of the homeowners did not receive the promised modifications.
HERRERA ROSALES is scheduled for sentencing by U.S. District Judge John C. Coughenour on May 4, 2021.
According to records filed in the case, HERRERA ROSALES conspired with others based in Southern California to operate the scheme. Each week the operation sent approximately 4,000 mailers to distressed homeowners across the country. The mailers stated that that the homeowner had been “pre-approved” for a new government program, under which HERRERA ROSALES’s organization could negotiate a mortgage modification. For example, one mailer said that HERRERA ROSALES’s organization could reduce a borrower’s loan balance by over $140,000 and could reduce the interest rate to 2%. The mailers urged the homeowners to call the Everett call center for assistance.
HERRERA ROSALES oversaw a staff of call center operators. When homeowners contacted the call center, HERRERA ROSALES directed the operators to follow a script designed to make it appear as if each caller’s mortgage was being reviewed by the company’s “underwriting” and “legal department” to make sure the homeowner qualified for the supposed federal program. In fact, the call center had no legal staff or underwriting department. Instead, operators were instructed simply to put each caller on hold for a pre-determined amount of time, to make it appear a review was underway. The operator then would return to the line and tell each victim that he or she was one of the “very select few” who qualified for the program—but only if the homeowner paid the call center a $3,000 fee. If the homeowner balked at the fee, the call center staff had another script with certain “hot button” statements to persuade them to sign the documents. It is impermissible under federal regulations to charge upfront fees for mortgage modification services.
Once the contracts were signed, the call center submitted the homeowner’s paperwork to a California-based loan processing group, which made some minimal efforts to restructure the debt. While a limited number of customers obtained a lower monthly payment, the vast majority had no change or, in some cases, a higher monthly payment. The call center used a phony address, and operators used aliases to disguise their identities.
Between March 2016 and May 2018, about 1,000 customers paid over $2.5 million to the various entities operated by HERRERA ROSALES. After HERRERA ROSALES paid the expenses of the call centers and paid a share to his co-conspirators, he kept approximately $360,000.
Conspiracy to commit wire fraud is punishable by up to five years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
herrera_rosales_information.pdfEstherville, Iowa, Police Officer Honored for Commitment to Drug Abuse PreventionRead the Press Release
An Estherville, Iowa, police officer is being honored by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for his commitment to reducing drug abuse. The recipient of the Enrique S. Camarena Award is Captain Nathaniel Dunlavy of the Estherville Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured, and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
Captain Dunlavy has gone above and beyond the call of duty in pursuit of a drug-free community, worked tirelessly to reduce drug abuse, and is a worthy recipient of this distinguished award. Captain Dunlavy spent over a decade as the DARE officer for Estherville schools. During that time, he expanded the program to include all students in kindergarten through fifth grade. He also started teaching refresher courses in middle and high school, ensuring the students he previously taught remembered what they learned. Through the DARE program, Captain Dunlavy impacted an entire generation of students.
Captain Dunlavy’s contributions to keeping young people drug free did not end with his work in the DARE program. He volunteered thousands of hours of his own time to teach, coach, and mentor hundreds of youth. Through his interactions with students, he not only served as a teacher, but as a positive role model. Captain Dunlavy is especially good at identifying young people who may be on a bad path, connecting with them, and helping them avoid drug use or other destructive behaviors.
Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, stated, “Captain Dunlavy is dedicated to educating students about the risks of drugs and substance abuse. By his actions, he has demonstrated that engaging with young people and being a positive role model is key to ensuring students remain drug free.”
“Captain Dunlavy’s commitment to students as a school resource officer, DARE program leader, coach, mentor and friend, exemplify the beliefs of fallen DEA Special Agent Enrique (Kiki) Camarena,” DEA Omaha Division Acting Special Agent in Charge Darin Thimmesch said. “Kiki strongly believed that one person could make a difference in the life of another and Captain Dunlavy has proven that true time and time again. On behalf of DEA, we thank Captain Dunlavy for his service and encouragement to future generations to live a drug-free life.”
United States Attorney Deegan will present Captain Dunlavy with the Enrique S. Camarena Award in Estherville on January 26, 2021.
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El Departamento de Justicia Llega a un Acuerdo con una Compañía de Consultoría Informática con Sede en Nueva Jersey que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Quantum Integrators Group (Quantum), una compañía de contratación y consultoría informática con sede en Nueva Jersey. El acuerdo resuelve las acusaciones de que Quantum (1) discriminó a una residente permanente legal al requerir, por motivos de su estatus de ciudadanía, que proporcionara documentación innecesaria antes de referirla para una oportunidad laboral y (2) requería, de forma rutinaria, a personas no ciudadanas de los EE. UU. que presentasen documentos innecesarios para demostrar su elegibilidad para trabajar.
«Las compañías no pueden solicitar documentos innecesarios de autorización para trabajar por motivos del estatus de ciudadanía de uno o condicionar una referencia para un puesto laboral al cumplimiento con tal solicitud», dijo Gregory B. Friel, el Fiscal General Auxiliar Adjunto de la División de Derechos Civiles. «Nos complace ver que Quantum colaborará con el Departamento de Justicia para garantizar que sus políticas y prácticas no discriminen a las personas por motivos de su estatus de ciudadanía».
La investigación del Departamento comenzó después de que una residente permanente legal presentó una demanda contra Quantum ante la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que Quantum se negó a referirla a un cliente para ser considerada para una oportunidad laboral antes de presentar una copia de su Tarjeta de Residente Permanente para demostrar su autorización para trabajar. Según la investigación, Quantum hubiera referido a un candidato ciudadano estadounidense al cliente sin requerir semejante prueba de autorización para trabajar. Más aún, el Departamento concluyó que Quantum tenía la costumbre de requerir a otros individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. que proporcionaran documentos adicionales e innecesarios para demostrar su elegibilidad para trabajar.
La Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la elegibilidad para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos. La INA tampoco permite a los empleadores verificar la elegibilidad del individuo para trabajar antes de que el mismo acepte una oferta de trabajo.
Conforme a los términos del acuerdo, Quantum pagará una sanción civil a los Estados Unidos, revisará sus políticas y procedimientos, asegurará que los empleados relevantes participen en una capacitación sobre los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión por parte del Departamento durante el término del acuerdo.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery
Cuba Man Sentenced for Meth Trafficking Following High-Speed Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Cuba, Missouri, man has been sentenced in federal court for methamphetamine trafficking following a high-speed police chase.
Shannon L. Brim, 33, was sentenced by U.S. District Judge Roseann Ketchmark on Monday, Jan. 25, to 14 years in federal prison without parole.
On Sept. 20, 2020, Brim pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
A Missouri State Highway Patrol trooper responded to a report of careless and imprudent driving on Missouri 291 in Cass County on Aug. 18, 2019. The trooper located the vehicle, a silver Pontiac passenger car being driven by Brim, and attempted to conduct a traffic stop. The vehicle accelerated and a pursuit began. The pursuit continued southbound on Missouri 291, reaching speeds of 80 miles per hour. The Pontiac repeatedly crossed the center line and passed several vehicles. The pursuit passed a golf course, and a golfer threw an orange golf ball and struck the Pontiac. The Pontiac traveled off the south side of the roadway and became disabled in a sod farm, where Brim was arrested. Brim had an active parole warrant for his arrest.
The trooper searched Brim’s vehicle and found a plastic bag wrapped in duct tape, which contained approximately 1.14 pounds of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the DEA, the Missouri State Highway Patrol, the Cass County, Mo., Sheriff’s Department, and the Harrisonville, Mo., Police Department.
Cryptocurrency Trader Charged in Manhattan Federal Court with Fraudulent Scheme Involving over $5 MillionRead the Press Release
AUDREY STRAUSS, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JEREMY SPENCE, a/k/a “Coin Signals,” a cryptocurrency trader who solicited funds for various cryptocurrency funds that he operated, with commodities fraud and wire fraud offenses. As alleged, SPENCE took cryptocurrency worth over $5 million from more than 170 individual investors after making false representations in connection with these cryptocurrency funds. SPENCE was arrested this morning in Rhode Island and will be presented later today before Magistrate Judge Patricia A. Sullivan in the U.S. District Court for the District of Rhode Island.
Manhattan U.S. Attorney Audrey Strauss said: “Jeremy Spence, a/k/a, ‘Coin Signals,’ allegedly lured investors to his cryptocurrency investment scam by touting returns of up to 148%. Spence’s investments not only failed to reach his audacious claims, they consistently lost money, leaving a $5 million void in his clients’ crypto accounts. Spence’s alleged conduct should strongly signal would-be investors to thoroughly educate themselves in the cryptocurrency ecosystem before falling prey to investment scams promising huge returns for small investments that are indeed too good to be true.”
FBI Assistant Director-in-Charge Sweeney said: “As alleged, Jeremy Spence misrepresented the success of his investment platform in order to entice people to send money his way. Because his trading was less than profitable and significantly less successful than he represented to investors, he used money from new investors to pay off others in order to keep his plan moving—a typical marker of a Ponzi scheme. Whether investing with cash, shares, or virtual currency, our advice to investors always remains the same—exercise due diligence, and when something just doesn’t seem right, report suspicious activity to the authorities.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
From November 2017 through April 2019, SPENCE solicited investors in various cryptocurrency investment pools that SPENCE had created and managed (the “Funds”). SPENCE solicited investments for several Funds, the largest and most active of which were the Coin Signals Bitmex Fund, a/k/a the “CS Mex Fund,” the Coin Signals Alternative Fund, a/k/a the “CS Alt Fund,” and the Coin Signals Long Term Fund. Investors who wanted to participate in a Fund would transfer cryptocurrency, such as Bitcoin and Ethereum, to SPENCE in order for SPENCE to invest it.
SPENCE solicited these investments through false representations, including that SPENCE’s crypto trading had been extremely profitable when, in fact, SPENCE’s trading had been consistently unprofitable. For example, on January 28, 2018, SPENCE posted a message in an online chat group falsely claiming that his trading of investor funds over the past month had generated a return of more than 148%. As a result of this misrepresentation, investors transferred additional funds to SPENCE. In fact, over that same period of approximately one month, SPENCE’s trading resulted in net losses in the accounts in which he traded investor funds.
To forestall redemptions by investors, and to continue to raise money from investors to fund his scheme, SPENCE generated fictitious account balances, which he made available to investors online. Instead of accurately reporting the trading losses SPENCE was incurring, the account balances falsely indicated to investors that they were making money by investing with SPENCE. To hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors.
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SPENCE, 24, of Bristol, Rhode Island, is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine Magdo is in charge of the prosecution.
[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.
Claypool Man Sentenced to over 24 Years in PrisonRead the Press Release
SOUTH BEND – Kenneth Hyatt, age 53, of Claypool, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to receipt of child pornography, announced Acting U.S. Attorney Bell.
Mr. Hyatt was sentenced to 293 months in prison followed by 10 years of supervised release and ordered to pay $14,930.00 restitution.
According to documents filed in this case, Hyatt uploaded 65 images of child pornography to his Dropbox account. These images along with others depicted children under the age of 12 participating in bondage or sadistic conduct. In addition, Hyatt possessed at least 143 total images of child pornography. Six months before committing the instant offense, Hyatt was released from prison for a state conviction of possession of child pornography.
This case was investigated by the Department of Homeland Security Investigations and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney John M. Maciejczyk.
On August 30, 2022, Hyatt was re-sentenced to 234 months in prison.
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Claremont Man Sentenced to 37 Months for Drug TraffickingRead the Press Release
CONCORD - Jonathan Santiago-Perez, 35, of Claremont, was sentenced to 37 months in federal prison for drug trafficking on Monday, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on three occasions between January and April of 2019, an individual who was cooperating with law enforcement officers purchased crack cocaine from Santiago-Perez.
Santiago-Perez previously pleaded guilty on February 20, 2020.
“Drug trafficking is a serious offense that undermines public health and safety,” said U.S. Attorney Murray. “In order to safeguard our citizens, we will continue to work closely with our law enforcement partners to identify and prosecute the dealers who sell dangerous drugs in the Granite State.”
This matter was investigated by the Drug Enforcement Administration offices in New Hampshire as well as Springfield and Burlington, Vermont, with assistance from the New Hampshire State Police, Massachusetts State Police, United States Postal Inspection Service, New Hampshire Attorney General’s Drug Task Force, Vermont State Police Drug Task Force, Manchester Police Department, Claremont Police Department, Lebanon Police Department, Hartford, Vermont Police Department, and the Hampden County, Massachusetts Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Chicago Man Charged in Conspiracy to Sell U.S. Government Checks Stolen from the MailRead the Press Release
CHICAGO —A Chicago man has been indicted on federal criminal charges for allegedly conspiring with a U.S. Postal Service employee and others to sell U.S. government checks stolen from the mail.
An indictment returned Monday in federal court in Chicago charges AKEEM KOSOKO, 26, with one count of conspiracy to steal mail and government funds, three counts of embezzlement of government property, and three counts of receipt of stolen mail. Arraignment has not yet been scheduled.
According to the indictment, Kosoko conspired with his brother, who worked as a postal carrier, and others to have U.S. Treasury checks taken from the mail and sold to others. The checks were issued last year as part of the Coronavirus Aid, Relief, and Economic Security Act. Kosoko’s brother, AHMED KOSOKO, 35, of Chicago, was previously charged by federal criminal complaint with one count of conspiracy to steal mail and government funds.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andre Martin, Special Agent-In-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Special Assistant U.S. Attorney M. Claire Nicholson.
The public is reminded that an indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Charlotte Man Is Sentenced to 17 ½ Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced today George Malcolm Hargrove, 30, of Charlotte, to 17 ½ years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Hargrove to serve 30 years supervised release and to register as a sex offender after he is released from prison.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on or about June 11-12, 2018, the FBI determined that an individual, later identified as Hargrove, was using an online file sharing network to exchange child pornography with another user. Court records show that, in October 2018, the FBI executed a search warrant at Hargrove’s residence and seized Hargrove’s laptop and other devices. A forensic examination of the seized items revealed that Hargrove possessed hundreds of images and videos depicting the sexual abuse of minors, including prepubescent children. Hargrove was arrested on state offenses. In April 2019, Hargrove was indicted on federal child pornography charges and was released on pretrial probation.
On July 19, 2019, the U.S. Probation Office conducted an inspection of Hargrove’s residence. U.S. probation officers discovered that Hargrove was using the internet to contact a 14-year-old girl. According to court records, Hargrove, who knew the age of the minor, began communicating with her online prior to his arrest, and continued his communication with her while on pretrial release.
On October 7, 2019, Hargrove pleaded guilty to possession, distribution and attempted receipt of child pornography. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray commended the FBI for their investigation of the case and thanked the U.S. Probation Office for their invaluable assistance.
Assistant United States Attorneys Emily Wasserman and Cortney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chapel Hill Man Pleads Guilty in Elder Fraud Home Repair SchemeRead the Press Release
Greensboro, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that JORGE ALBERTO GARCIA, also known as “Alberto Garcia” and “Roberto Garcia”, pled guilty to a Bill of Information charging one count of conspiracy to commit wire fraud, that is, a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises, in a home repair scheme, as well as two counts of failure to file income tax returns.
“We will not tolerate elder fraud. It is despicable conduct,” said U.S. Attorney Martin. “I commend the FBI, IRS Criminal Investigations Division, and the local law enforcement agencies involved in his investigation who helped stop this abuse and bring about today’s plea.”
The Information alleges that from on or about September 2015 to and including April 2020, GARCIA approached elderly, retired individuals at their private residences in Durham, Orange, and Chatham Counties, offering home improvement services using the business names “J&J Home Improvement” and “JH Home Improvements, Inc.” Many of these victims had physical or mental infirmities. GARCIA—who never had a state general contractor’s license—would offer to perform home improvement projects and these elderly individuals would, in turn, pay him prior to the completion of any construction work via personal checks, credit cards, or withdrawals from investment accounts. GARCIA would often direct that these individuals leave the “to” line of the check blank (which would later be completed in the name of his wife), or issue the check directly to his wife, who, in turn, deposited the checks into personal accounts in her name or that of her business, La Cacerola. GARCIA’s wife would then withdraw the money in cash and/or issue a cashier’s check made out to GARCIA. GARCIA and his wife would also take the checks to the elderly individual’s bank or their bank and cash the checks without depositing the funds into their bank accounts.
Filed documents further state GARCIA would develop personal relationships with these elderly individuals, calling them “Momma” and “Poppa,” and encourage them to solicit their neighbors to engage his services in home improvement projects for their residences, as well. GARCIA also solicited loans from some of the elderly individuals for whom he had already contracted to perform home improvement projects, separate and apart from those projects. In at least one instance, he received a check from a victim for such a loan and returned to that victim’s home later that same day to request the loan again. The victim, not remembering that he had written the first check, issued yet another check for the same amount to GARCIA.
However, GARCIA would not complete the contracted home improvement projects, nor would he repay any loans in full. When the contracting individual, a concerned relative of that person, or a local law enforcement officer confronted GARCIA about the payments, GARCIA would respond in the following ways: a) GARCIA would promise to send workers to complete the project but never fully complete the project; b) GARCIA or his wife would return a small percentage of the monies paid for the project; and/or c) GARCIA or his wife would write a personal check to the contracting individual that would be returned by the issuing bank as lacking sufficient funds. On more than one instance, GARCIA urged the victim not to contact the authorities about the unfinished work.
Review of records from bank accounts known to be controlled by GARCIA and/or his wife for the time period spanning May 2014 through November 2019 indicates that, as a result of the above-described scheme to defraud, GARCIA obtained a total of approximately $3,258,511.48 belonging to multiple victims.
Further, as reflected in the factual basis filed in support of GARCIA’s guilty plea, GARCIA and his wife have filed no federal income taxes since 2007, either personally or for their respective businesses. For the tax years 2014, 2015, 2016, 2017, and 2018, GARCIA and his wife had a joint income totaling $3,242,130.00. In calendar years 2017 and 2018, GARCIA had and received gross income exceeding the amount required to file an income tax return with the Internal Revenue Service; GARCIA knew this and willfully failed to file a return.
“Jorge Garcia targeted and systematically ripped off more than a hundred elderly victims without a second thought. These types of crimes will not be tolerated. Justice was served today, and the FBI hopes his federal prison sentence provides some comfort and a sense of security to the victims,” said Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
“Today’s admission of guilt by Mr. Garcia is an example of how the justice system will succeed in holding criminals accountable for their actions,” said Special Agent in Charge Matthew D. Line of the Internal Revenue Service, Criminal Investigations. “Mr. Garcia, motivated by pure greed, not only preyed on the elderly and vulnerable, but also
cheated the entire American public by failing to pay into the tax system; as a result, he now faces a prison sentence for his crimes.”
The terms of the plea agreement call for GARCIA to serve a sentence of 84 months of imprisonment. The Court can choose to reject this disposition at sentencing, in which case the matter would go to trial. The charges in the Information carry a maximum of twenty-two years of imprisonment, a term of supervised release of not more than three years, a fine not to exceed $300,000 or not more than the gross gain or loss, and a mandatory special assessment of $150.
Sentencing is scheduled to take place on June 15, 2021 at 9:00 am in Winston-Salem Courtroom Number Four before the Honorable Loretta C. Biggs.
The case was investigated by the Federal Bureau of Investigation (in coordination with the Durham Police Department, Chatham County Sheriff’s Office, Chapel Hill Police Department, Carrboro Police Department, and Cary Police Department) and the Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Canonsburg Man Sentenced for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of Canonsburg, PA, has been sentenced in federal court to 42 months’ imprisonment on his conviction of conspiracy to possess with intent to distribute and distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Antoine Dean, Jr., age 31.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Antoine Dean, Jr. conspired to distribute over 28 grams of crack cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Dean, Jr.
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.
California Man Pleads Guilty to Wire Fraud and ConspiracyRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Worcester to federal tax and fraud charges arising from his role with various Worcester-based employment agencies.
Julio Lopez, 43, of Los Angeles, Calif., and formerly of Worcester, pleaded guilty to two counts of wire fraud and one count of conspiring to defraud the United States. Lopez was charged in December 2020. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 27, 2021.
Lopez worked for Worcester-based employment agencies Bay State, Prime Labor and UT Services. Bay State misrepresented the number of its employees and the wages earned by such employees and failed to report cash wages to the IRS and to its workers compensation insurance carrier. In 2016, in connection with a client audit, another Bay State employee fabricated payroll documents that falsely showed that deductions were taken from employees’ paychecks for payroll taxes, and Lopez provided these fabricated documents to the client.
After Bay State ceased operations in approximately November 2017, Lopez was involved in shifting certain Bay State clients to UT Services, an agency controlled by Tam Vuong. Thereafter, Lopez and, allegedly, Vuong, engaged in a scheme to defraud by misrepresenting the number of employees who worked for UT Services and the wages earned by such employees. UT Services paid most of its employees in cash and then failed to report those employees and the cash wages to the IRS and to its workers compensation insurance carrier. During the time he worked for UT Services, Lopez knew that federal law enforcement was investigating the cash payroll practices of various employment agencies, and used an email address associated with a fake name so that that his own name would not be tied to UT Services.
In August 2019, Vuong was indicted on fraud and tax charges in connection with his oversight of UT Services and Prime Labor and is scheduled to stand trial on Sept. 7, 2021.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The conspiracy charge provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Lelling’s Major Crimes Unit, and Ian Stearns of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Charged with Making Threats Directed Against A New York City-Based U.S. Congressman and A Journalist, Citing Their Statements About the Results of the 2020 Presidential ElectionRead the Press Release
Audrey Strauss, U.S. 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”), and Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that ROBERT LEMKE was arrested today based on a criminal Complaint filed in Manhattan federal court charging LEMKE with making threatening interstate communications. LEMKE allegedly sent threatening text messages on January 6, 2021 to family members of a New York City-based U.S. Congressman (the “Congressman”) and a New York City-based family member of a journalist (the “Journalist”). LEMKE was arrested in Bay Point, California, and will be presented tomorrow in the United States District Court for the Northern District of California.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Robert Lemke was dissatisfied with the results of the 2020 Presidential Election and subsequent statements about the election made by a U.S. Congressman and journalist. Rather than peaceably disagree, Lemke allegedly threatened to harm those individuals’ families, demanding they retract their statements. The electoral process is the essential mechanism through which our democracy functions. While in any election it is inevitable that some will be disappointed in the result, threats of violence cannot and will not be tolerated.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Lemke’s alleged threats, aimed at the family members of a sitting U.S. Representative and a journalist, crossed a bright line. The FBI’s New York Joint Terrorism Task Force is always on watch, and we act with speed to stop violence - whether the threat comes from within our borders or from outside them. That's how we do it. As always, it is the partnership with our communities that makes us most effective. If you have any additional information that could benefit this case, or are aware of an active threat, we urge you to call 1-800-CALL-FBI.”
NYPD Commissioner Dermot Shea said: “To those individuals and groups that would seek to threaten a United States Congressman, this arrest should serve as a warning that the NYPD and its law enforcement partners, will ensure you are held accountable for your actions. I want to commend the FBI Agents, NYPD Detectives, and representatives of 54 other agencies that make up the Joint Terrorism Task Force for the investigation that led to this arrest.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
On January 6, 2021, the same day that individuals purporting to protest the 2020 Presidential Election gathered in Washington, D.C. and stormed the Capitol Building, ROBERT LEMKE sent threatening text messages to the brother of the New York City-based Congressman, citing the Congressman’s statements about the results of the 2020 Presidential Election. LEMKE’s text messages, which included a picture of a home in the same neighborhood as the home of the Congressman’s brother, stated:
Your brother is putting your entire family at risk with his lies and other words. We are armed and nearby your house. You had better have a word with him. We are not far from his either. Already spoke to [the Congressman’s son] and know where his kids are.
. . . your words have consequences. Stop telling lies; Biden did not win, he will not be president. We are not[] white supremacists. Most of us are active/retired law enforcement or military. You are putting your family at risk. We have armed members near your home . . . . . Don’t risk their safety with your words and lies.
Also on January 6, 2021, LEMKE sent threatening text messages to the Congressman’s sister-in-law, stating: “calm your husband down . . . . We saw on the hidden camera, he was quite stirred up. You need to have him talk to [the Congressman].”
In addition, also on January 6, 2021, LEMKE sent threatening text messages to a relative of the Journalist, stating: “[The Journalist’s] words are putting you and your family at risk. We are nearby armed and ready. Thousands of us are active/retired law enforcement, military, etc. That’s how we do it.”
LEMKE’s Facebook account has as its background image a photograph of Mark and Patricia McCloskey, who were charged with criminal offenses last summer after they pointed firearms at Black Lives Matter demonstrators near their home in St. Louis, Missouri. On November 7, 2020, LEMKE posted to Facebook: “Folks. Be ready for war. Trump has refused to cede. Evidence shows fraud occurred and the Supreme Court cases will be successful. We blockchained and watermarked ballots in 16 states. Trump will prevail.[] Spread this message. . . . FAITH my fellow Republicans. Do not give up. Keep an eye out for a variety of protests, and Stop The Steal Facebook groups for updates.”
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ROBERT LEMKE, 35, of Bay Point, California, is charged with making threatening interstate communications, which carries a maximum sentence of five years’ imprisonment. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI’s San Francisco Field Office. Ms. Strauss also thanked the U.S. Attorney’s Office for the Northern District of California for its assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jacob H. Gutwillig, Matthew J. Laroche, Kimberly J. Ravener, Benjamin W. Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, and the defendant is 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 herein should be treated as an allegation.
Butler Man Pleads Guilty to Wire Fraud in Connection with Theft of Approximately $1.5 Million from Former EmployerRead the Press Release
PITTSBURGH, Pa. – A resident of Butler, Pennsylvania, pleaded guilty in federal court to one count of wire fraud related to his theft of corporate funds from his former employer, United States Attorney Scott W. Brady announced today.
Paul Harmon, 63, pleaded guilty before United States District Judge Nicholas Ranjan.
During his plea hearing, Harmon admitted that for over 40 years he was the corporate controller for Butler-based Fuellgraf Electric Company, and an affiliated company, Technical Management Associates (collectively, "Fuellgraf"), which supplied electricians and related services to a variety of industrial and commercial business customers located primarily in Pennsylvania and Florida. As controller, Harmon admitted that he exercised day-to-day responsibility for and control over Fuellgraf’s finance, accounting, and treasury functions. He also maintained check-writing authority for Fuellgraf’s business bank accounts and control of Fuellgraf’s internal books and records.
Between at least October 2009 and his termination in December 2018, Harmon admitted that he misappropriated approximately $1.5 million in Fuellgraf funds and concealed his theft through manipulation of Fuellgraf’s books and records. As part of Harmon’s scheme to defraud Fuellgraf, he admitted stealing funds in a variety of ways, including by: causing the company to issue over $470,000 in duplicate or inflated payroll disbursements to Harmon, initiating electronic payments toward his personal credit card balances totaling approximately $500,000, issuing approximately $10,000 in corporate checks to pay his personal credit card balances, issuing almost $80,000 in corporate checks to himself, and misappropriating $200,000 in corporate checks written to cash. In addition, Harmon admitted that he issued Fuellgraf corporate checks to an entity he controlled, PM Accounting, totaling more than $200,000, for purported accounting work performed on behalf of Fuellgraf, when, in fact, no such work occurred. Harmon concealed his misappropriation by creating hundreds of false entries in Fuellgraf’s books and records that masked the true nature and purpose of the expenditures.
As part of a written plea agreement, Harmon agreed to make restitution to Fuellgraf in the amount of $1,466,456.71.
Harmon faces a maximum sentence of 20 years in prison and a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person. 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 Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the charge in this case.
Burlington County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Killian F. Melecio, 20, of Columbus, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Justin Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
The charge of attempting to interfere with law enforcement officers during a civil order carries a maximum penalty of five years in prison and a maximum fine of $250,000. Scheduling is scheduled for May 26, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations remaining against Kadeem Dockery and Justin Spry are merely accusations, and they are presumed innocent unless and until proven guilty.
Brookings Man Sentenced for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Brookings, South Dakota, man convicted of Distribution and Receipt of Child Pornography was sentenced on January 25, 2021, by U.S. District Judge Karen E. Schreier.
Tyler Powers, age 26, was sentenced to 75 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Powers was indicted by a federal grand jury on October 8, 2019. He pleaded guilty on July 20, 2020.
The conviction stemmed from internet activity on May 30, 2019, when Powers downloaded child pornography onto his computer. When law enforcement searched his residence, they discovered an extensive collection of child pornography on an external hard drive.
This case was investigated by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Powers was immediately turned over to the custody of the U.S. Marshals Service.
Broken Arrow Woman Pleads Guilty to Child Abuse and Assault with a Dangerous Weapon in Indian CountryRead the Press Release
A woman pleaded guilty this morning after abusing and assaulting a Native American minor female while under the influence of alcohol, announced U.S. Attorney Trent Shores.
Jamie Lea Keahbone, 40, of Broken Arrow, pleaded guilty before Chief U.S. District Judge John E. Dowdell. Her sentencing is set for April 27, 2021.
“Jamie Keahbone was a real-life nightmare to her victim. Keahbone repeatedly punched a child, intentionally pressed an arm against the child’s neck until the child lost consciousness, poured water over the child’s face causing the child to struggle to breathe, and struck the child with a table lamp,” said U.S. Attorney Trent Shores. “I commend this victim for her courage in seeking help and applaud law enforcement for answering the call.”
In her written plea agreement, Keahbone admitted that she assaulted the girl on October 14, 2020.
The FBI and the Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorney Chantelle Dial is prosecuting the case. Ms. Dial is a prosecutor from the U.S. Attorney’s Office in the Western District of Washington. 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.
Bridgeport Felon Sentenced to 4 Years in Prison for Federal Gun OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARQUES MILTON, also known as “Biz,” 36, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for illegally possession of a firearm.
According to court documents and statements made in court, on March 1, 2018, Bridgeport police officers arrested Milton in connection with a gunpoint threatening incident that occurred in February 2018. At the time of his arrest, Milton possessed a fully loaded Beretta 9mm pistol, an additional 18 rounds of ammunition, and a quantity of marijuana.
Prior to March 2018, Milton was convicted in state court of robbery in the first degree and unlawful restraint in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
State forensic examiners have connected the Beretta 9mm pistol to shell casings recovered after a shooting incident on Linwood Avenue in Bridgeport on February 19, 2018. On that date, one of approximately 10 shots that were fired grazed a cable company employee who was working on a nearby utility pole. Milton has been charged in state court in connection with this incident, and also in connection with alleged shooting incidents on April 25, 2018, in Bridgeport, and on June 2, 2018, in Waterbury, both of which caused serious injuries to victims.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Bridgeport Police Department, Waterbury Police Department, and the Connecticut Forensic Science Laboratory. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Bourbon County Man Pleads Guilty to Producing Child PornographyRead the Press Release
LEXINGTON, Ky. - A Paris, Ky., man, Johnathan Scott Mason, 27, pleaded guilty on Tuesday, before U.S. District Judge Karen Caldwell, to the production of child pornography.
According to his plea agreement, in March 2020, law enforcement officers became aware of Mason’s activity on the social media application, Kik. On this app, Mason expressed a sexual interest in children and said that he had sexually explicit images of minors that he had produced. Mason admitted that he used a minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transported using the Internet.
Mason was indicted in July 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Acting Commissioner Lt. Colonel Phillip Burnett, Kentucky State Police; jointly announced the guilty plea.
The investigation was conducted by Department of Homeland Security-HSI and KSP-Electronic Crimes Branch. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Marye.
Mason is scheduled to be sentenced on April 7, 2021. He faces a minimum of 15 years and a maximum of 30 years in prison, in addition to a maximum $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Armed Drug Trafficker and Prior Felon Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lorenzo Watson, 29, of Rochester, NY, who was convicted of possessing with intent to distribute cocaine, and possession of a firearm and ammunition by a felon, was sentenced to serve 67 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that the Watson was arrested on September 26, 2019, after New York State Parole Officers went to his residence on Bauman Street in Rochester for a compliance check. Officers did not locate Watson at the residence; rather, they saw him walking on Bauman Street with his hands in his sweatshirt pockets. The officers approached Watson and searched him and found a pill bottle, which contained 40 small bags of a substance later identified as cocaine, and a handgun, in one of the sweatshirt pockets. The handgun, which had a defaced serial number, was loaded with eight rounds of ammunition. Officers also found $507.00 in United States currency in Watson’s pants pocket.
Watson was previously been convicted in Monroe County Court of felony drug and weapon possession crimes, and as a result of those convictions, he was legally prohibited from possessing a firearm.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Anchorage Man Convicted for International Parental KidnappingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Leo James Chaplin, 62, of Anchorage, was found guilty of International Parental Kidnapping after a two-day federal bench trial. Chaplin was charged by criminal complaint June 23, 2017 in the District of Alaska and later indicted by a federal grand jury on October 18, 2019. Sentencing is scheduled for April 28, 2021 before United States District Court Judge Sharon L. Gleason.
According to evidence presented at trial, Chaplin kidnapped two children he shared with his then-spouse during a family vacation to the Philippines in November of 2014. Both children were born and lived in Anchorage prior to their kidnapping. Chaplin retained the children in the Philippines with intent to obstruct their mother’s exercise of lawful parental rights until July of 2019, a period of over four-and-a-half years. Chaplin was deported from the Philippines and returned to the United States in September of 2019. He was arraigned on the criminal complaint in the Central District of California September 25, 2019.
"There is no safe haven for parents who abduct their children and hide them in foreign countries. I cannot fathom the emotional tragedy of these separations. In this case, the mother and her children were apart for over 4 years. That is time this family will never get back,” said U.S. Attorney Schroder. “We are committed to working with the FBI and foreign governments to ensure the return of abducted children and holding the kidnappers accountable."
“The FBI takes crimes against children seriously, including international parental kidnappings,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “Chaplin sought to deprive his children’s mother of lawful parental rights, which can have a destructive impact on the entire family. These children have been returned home due to the far-reaching and combined resources of the FBI and our law enforcement partners.”
As part of the Federal Bureau of Investigation’s (FBI) Crimes Against Children Human Trafficking Task Force, the Federal Bureau of Investigation, United States Customs and Border Protection, United States Department of State, and United States Marshals Service conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Allison O’Leary and George Tran.
To learn more about the FBI’s Crimes Against Children Program, visit fbi.gov. For more information and resources on International Parental Kidnapping, visit DOJ’s Child Exploitation and Obscenity Section webpage.
Albuquerque man facing federal carjacking and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Santiago JonDaniel “Hush” Rooks, 21, of Albuquerque, made his initial appearance in federal court on Jan. 25 where he was charged with carjacking, brandishing a firearm during the commission of a violent crime and being a felon in possession of a firearm. Rooks will remain detained pending a preliminary hearing scheduled for Jan. 27.
According to a criminal complaint, on Jan. 4, Rooks allegedly approached a victim in a driveway in southwest Albuquerque, pulled a gun from his waistband and demanded the keys for the victim’s truck. The victim relinquished his keys and Rooks allegedly fled in the vehicle.
A Bernalillo County Sheriff’s Deputy located the truck on I-25 and briefly gave chase before ceasing pursuit for safety after the vehicle left the interstate. Following the direction the vehicle had taken, the deputy found the truck abandoned with the doors left open. A loaded pistol was found inside the truck.
Rooks has prior felony convictions for receiving and/or transferring a stolen vehicle and aggravated assault. As a convicted felon, Rooks cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Rooks faces a minimum of seven years and up to life in prison.
The FBI and the Bernalillo County Sheriff’s Office investigated this case. Assistant U.S. Attorney Thomas Outler is prosecuting the case.
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25 January 2021
West Virginia Woman Sentenced for Willful Retention of Top Secret National Defense Information and International Parental KidnappingRead the Press Release
Elizabeth Jo Shirley, of Hedgesville, West Virginia, was sentenced today to 97 months of incarceration for unlawfully retaining documents containing national defense information and 36 months of incarceration for international parental kidnapping.
Shirley, 47, pleaded guilty to one count of willful retention of national defense information and one count of international parental kidnapping in July 2020. Shirley admitted to unlawfully retaining a National Security Agency (NSA) document containing information classified at the Top Secret/Secret Compartmented Information (TS/SCI) level relating to the national defense that outlines intelligence information regarding a foreign government’s military and political issues. Shirley also admitted to removing her child, of whom she was the non-custodial parent, to Mexico with the intent to obstruct the lawful exercise of the custodial father’s parental rights.
“Shirley betrayed the trust of the American people when she took classified information from her work with the Intelligence Community,” said Assistant Attorney General John C. Demers for the National Security Division. “She then sought to profit from her betrayal by seeking to sell this information to Russia, one of America’s foremost adversaries, in order to further her criminal abduction of her daughter. This sentence will hold Shirley accountable for her violations of the American people’s trust, and serves as a warning to others who would seek unlawful profit at America’s expense.”
“Shirley held a position that required the highest level of trust,” said U.S. Attorney Bill Powell for the Northern District of West Virginia. "When she committed these crimes, she not only broke that trust, she potentially endangered the very people who employed her and her neighbors. National security is one of our highest priorities. Shirley deserves her sentence and not a day less.”
“Ms. Shirley was trusted with our nation’s highest-level documents when she was given a high-level security clearance," said Special Agent in Charge Michael Christman of the FBI’s Pittsburgh field office. "But she betrayed that trust and put our country at risk by stealing classified national security documents, which she later hoped she could sell to Russian officials. We must safeguard this information from foreign adversaries. Today’s sentence shows the FBI will not let anyone get away with putting the lives of American citizens at risk.”
Shirley served on active duty with the U.S. Air Force, and in August 1994, the Air Force granted Shirley her first TS/SCI security clearance. After leaving active duty, Shirley served in the U.S. Air Force Reserves and later in the U.S. Navy Reserves. While serving in the Air Force, she worked on assignments with the NSA. From May 2001 to August 2012, Shirley held various positions with the U.S. Navy’s Office of Naval Intelligence, the Department of Defense, the Department of Energy, the National Cyber Investigative Joint Task Force, and at least five different cleared defense contractors. In connection with these positions, Shirley held TS/SCI security clearances at various times.
In July 2019, Shirley took her six-year-old daughter to Mexico with the intent to contact representatives of the Government of Russia to request resettlement in a country that would not extradite her to the United States. Shirley took with her to Mexico national defense information, which she had unlawfully retained. While in Mexico, Shirley prepared a written message to Russian government officials, referencing “an urgent need” to have “items shipped from the USA related to [her] life’s work before they are seized and destroyed.”
On Aug. 13, 2019, the U.S. Marshals Service and Mexican law enforcement located Shirley and her daughter at a hotel in Mexico City. Mexican authorities arrested Shirley pursuant to an arrest warrant the West Virginia State Police (WVSP) had obtained on a charge of concealment of a minor from a custodian.
The FBI subsequently executed search warrants on numerous of Shirley’s electronic devices, including devices she took to Mexico in July 2019 and devices the FBI seized from her Martinsburg storage unit in August 2019. Pursuant to the search of the storage unit, the FBI located the NSA document underlying the willful retention of national defense information offense. In addition, pursuant to searches of the electronic devices, the FBI found an Office of Naval Intelligence PowerPoint presentation containing information classified at the secret level and messages Shirley had drafted to Russian government officials while in Mexico, the latter of which the Central Intelligence Agency has determined to include information classified at the secret level.
The FBI Pittsburgh field office and WVSP investigated this case. Assistant U.S. Attorneys Jarod J. Douglas and Lara K. Omps-Botteicher and Trial Attorney Evan N. Turgeon with the National Security Division’s Counterintelligence and Export Control Section prosecuted the case on behalf of the government. The Webster County Prosecuting Attorney’s Office cooperated in the investigation and prosecution of the case. Chief U.S. District Judge Gina M. Groh presided.
Warning Issued by U.S. Attorney and IRS Criminal Investigation Pertaining to New Wave of COVID-19 Scams as Second Round of Economic Impact Payments are DeliveredRead the Press Release
St. Thomas, USVI – Gretchen C.F. Shappert, United States Attorney for the District of the Virgin Islands, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement today in an effort to prevent taxpayers from falling victim to criminals engaged in fraud schemes.
In the last several months, IRS-CI has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of the second round of Economic Impact Payments – as well as the approaching tax filing season – to trick honest taxpayers out of their hard-earned money.
“With the roll-out of additional Economic Impact Payments intended to relieve the adverse impact of the coronavirus pandemic, con artists and scammers are using every opportunity to take advantage of innocent people. All Americans should take care to protect their personal information—especially during tax season—and to resist ‘to-good-to-be-true’ claims related to COVID-19 and Economic Payment scams,” said U.S. Attorney Gretchen C.F. Shappert. “We encourage concerned citizens to contact local or federal law enforcement if they receive emails, text messages, or phone calls which seem suspicious. If you see something, say something.”
Tyler R. Hatcher, Acting Special Agent in Charge of the IRS-CI Miami Field Office warned, “Economic relief efforts are meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. But we have other plans for those who try to prey on the public, and we are committed to hold them accountable for their criminal actions. Report any phone calls, emails, or text messages asking for your personal information or offering a deal that seems too good to be true.”
Some common COVID-19 scams include:
- Text messages asking taxpayers to disclose bank account information under the guise of receiving the $1,200 Economic Impact Payments.
- Phishing schemes using email, letters and social media messages with key words such as “Coronavirus,” “COVID-19,” and “stimulus” in varying ways. These communications are blasted to large numbers of people and aim to access personally identifying information and financial account information (including account numbers and passwords).
- The organized and unofficial sale of fake at-home COVID-19 test kits (as well as offers to sell fake cures, vaccines, pills, and professional medical advice regarding unproven COVID-19 treatments).
- Fake donation requests for individuals, groups and areas heavily affected by the disease.
- Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.
Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers. The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.
IRS-CI continues investigating hundreds of COVID-19-related cases with law enforcement agencies domestically and abroad and educating taxpayers about scams.
COVID-19 scams should be reported to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or submitted through the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies.
Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Reports can be made online at TIPS.TIGTA.GOV.
Taxpayers who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, should forward the message to [email protected]. Taxpayers are encouraged not to engage potential scammers online or on the phone.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
Virginia Man Sentenced for Cyberstalking Tulsa MayorRead the Press Release
A Virginia man who sent harassing and intimidating emails directed toward Tulsa Mayor G.T. Bynum and his family was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Adam Maxwell Donn, 41, of Norfolk, Virginia, to 15 months in federal prison to be followed by three years of supervised release. Judge Eagan further ordered the defendant to pay restitution in the amount of $2,380 to the victim.
“Words can and do lead to violence. That was the fear of the Bynum family as they received Adam Donn’s vile and violent threats to inflict harm upon them. This sentence sends a clear message that there are real life consequences in the form of federal prison time for anyone who wants to engage in cyberstalking,” said U.S. Attorney Trent Shores. “Sadly, we see far too many instances of online harassment, threats, and cyberstalking in today’s society. I hope Adam Donn’s prison sentence will deter others from engaging in similar conduct.”
At a change of plea hearing in October, the defendant admitted that he sent Mayor Bynum and his wife 44 emails and left 14 phone messages from June 11 through June 22, 2020, that were meant to harass, annoy, threaten and intimate the Bynum family. He also admitted that the threatening messages made numerous references to Bynum’s young children and their home address. Donn believed the threats would coerce Bynum into cancelling President Donald Trump’s campaign rally scheduled for June 20, 2020.
Initial charges were filed against Donn in July 2020. You can find the press release here.
The Tulsa Police Department and FBI conducted the investigation. U.S. Attorney Trent Shores and Assistant U.S. Attorney Christopher J. Nassar are prosecuting the case.
Vidor Woman Sentenced to 15 Years in Federal Prison Following Opioid Overdose DeathsRead the Press Release
BEAUMONT, Texas – A 62-year-old Vidor, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Catherine Ardis pleaded guilty on Sep. 10, 2020, to conspiracy to possess with intent to distribute a controlled substance, namely hydromorphone, and was sentenced to 180 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 22, 2021.
According to information presented in court, federal agents began an investigation of Ardis and others in June of 2019 after three persons died as a result of opiates purchased from Ardis at her residence on FM 105 North in Vidor, Texas. Medical examination of the deceased persons determined that the victims died from poly-drug toxicity resulting from the use of hydromorphone pills, also referred to as Dilaudid. As part of the factual basis for the plea, Ardis admitted to selling the hydromorphone pills that resulted in the death of the three victims.
“Prescription opiates require a doctor’s consultation and care for a reason,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those that put the public at risk for a quick buck will be punished to the fullest extent of the law.”
“This case is a tragic reminder that the abuse of opioids and other prescription pills is just as deadly as illicit narcotics, and those who traffic in diverted pharmaceuticals are held equally responsible under the law,” stated DEA Special Agent in Charge, Steven S. Whipple. “We hope that this case serves as a warning to those who illegally distribute pharmaceuticals or those who may abuse them.”
This case was investigated by the U.S. Drug Enforcement Administration, Vidor Police Department, Jefferson County Sheriff’s Office, Beaumont Police Department, Port Arthur Police Department, and prosecuted by Assistant U.S. Attorney Michael A. Anderson.
United States Attorney’s Office Resolves Criminal and Civil Cases Against Murray DoctorRead the Press Release
Salt Lake City- Dr. Nicholas (“Nick”) Carl Greenwood, 43, of Salt Lake City, Utah, pleaded guilty to one felony count of distributing a schedule III narcotic for a non-legitimate medical purpose outside of the standards of medical practice. In addition, Greenwood entered into a consent agreement in order to resolve a civil complaint related to his unlawful practice of prescribing controlled substances from his Murray, Utah, office.
In the criminal case, Greenwood pleaded guilty to one felony count of distribution of a controlled substance in a Utah federal court. In the plea agreement, Greenwood admitted that he intentionally prescribed and distributed Buprenorphine, a schedule III controlled substance, to a purported patient knowing the prescription was for a non-legitimate medical purpose and was outside of the standards of medical practice. Greenwood was ordered to serve 24 months of probation and to pay a $500 fine.
In the civil case against Greenwood, a federal court in Utah entered a consent judgment and permanent injunction ordering Greenwood to permanently cease dispensing opioids or other controlled substances and to pay $500,000 in civil penalties. Under the court’s order, Greenwood will also surrender his registration with the DEA and will never seek renewal. The consent order resolves a complaint filed by the United States alleging that Greenwood repeatedly wrote prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act.
In the complaint, the United States alleged that several confidential sources who were working for the DEA obtained prescriptions for Buprenorphine by simply asking Greenwood for them. The confidential sources received dozens of prescriptions for hundreds of pills without ever receiving any medical treatment. In most cases, the confidential sources paid cash for prescriptions they picked up from Greenwood’s office staff that were pre-written and signed. In the few times Greenwood did see the confidential sources, he offered no treatment, allowed the confidential sources to bargain for prescriptions, and coached the confidential sources on how to trade and sell the powerful opioids he prescribed them. The complaint further alleged that Greenwood followed this same pattern with other customers, and wrote prescriptions for dangerous combinations and for doses far in excess of those needed for proper treatment, while ignoring urinalysis tests and writing prescriptions for a form of medication more susceptible to abuse.
“Healthcare professionals should be looked upon as heroes. Unfortunately, in this matter the physician abused his position of trust, and cast a shadow on the profession,” said United States Attorney John W. Huber. “The addiction epidemic continues to cause despair in American homes and communities. In partnership with the DEA, we will bring accountability to those who exploit the vulnerable.
“This investigation highlights the cooperative efforts between the U.S. Attorney’s Office and members of the DEA Salt Lake City District Office in combatting the illegal distribution of controlled substances in Utah, said DEA Assistant Special Agent in Charge Michael J. Tinkler. The DEA is committed to ensuring that those individuals prescribing regulated medications do so in a safe and legal manner.”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the civil and criminal cases against Dr. Greenwood. Special agents and Diversion Investigators from the DEA conducted the investigation.
U.S. Attorney's Office Recovers Nearly $70 Million in 2020Read the Press Release
BEAUMONT, Texas – Acting U.S. Attorney Nicholas J. Ganjei announced today that the United States Attorney’s Office for the Eastern District of Texas (EDTX) collected $68,064,639.91 in criminal, civil, and asset forfeiture actions in 2020.
In criminal cases, EDTX collected $6,587,484.79 of restitution for crime victims, and recovered an additional $52,557,961.91 through civil enforcement actions for the American taxpayer. Working with partner agencies and divisions, the Eastern District also collected $8,919,191.00 through asset forfeiture. Forfeited assets deposited into the Department of Justice’s Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“I am proud of the Eastern District’s aggressive approach to collecting debts for victims of crime and for the government,” said Acting U.S. Attorney Nicholas J. Ganjei. “Despite the challenges presented by the COVID pandemic, the Eastern District focused on working to ensure that crime victims receive what they are owed and that defendants pay for their crimes.”
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the federal government and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim; criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which then distributes the funds collected to federal and state victim compensation and assistance programs.
The Justice Department, as a whole, collected more than $15.9 billion in civil and criminal actions in 2020. This amount is more than five times the approximately $3.2 billion appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It also includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
U.S. Attorney Announces Extradition of Kenyan National for Large-Scale Trafficking of Rhinoceros Horns and Elephant Ivory and Heroin DistributionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that MANSUR MOHAMED SURUR, a/k/a “Mansour,” a Kenyan citizen, was extradited from Kenya and arrived in the United States this morning. SURUR was arrested by Kenyan authorities on July 29, 2020, in Mombasa, Kenya, on charges of conspiracy to traffic in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants. In addition, SURUR was charged with conspiracy to commit money laundering and conspiracy to distribute and possess with intent to distribute more than 10 kilograms of heroin. SURUR’s co-defendant, Moazu Kromah, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, was previously deported to the United States from Uganda on June 13, 2019. Co-defendant Amara Cherif, a/k/a “Bamba Issiaka,” a citizen of Guinea, was extradited to the United States from Senegal on April 3, 2020. Co-defendant Abdi Hussein Ahmed, a/k/a “Abu Khadi,” a citizen of Kenya, remains a fugitive. SURUR is expected to be arraigned later today before U.S. Magistrate Judge Debra Freeman. The case has been assigned to U.S. District Judge Gregory H. Woods.
Manhattan U.S. Attorney Audrey Strauss said: “Mansur Mohamed Surur is alleged to be a member of an international conspiracy to traffic in rhino horns, elephant ivory, and heroin. The enterprise is allegedly responsible for the illegal slaughter of dozens of rhinos and more than 100 elephants, both endangered species. The excellent work of the Fish and Wildlife Service and the DEA has put an end to this operation.”
According to allegations in the Indictment[1]:
Kromah, Cherif, SURUR, and Ahmed were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, Kromah, Cherif, SURUR, and Ahmed conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
The defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including those represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some which were sent through U.S. financial institutions.
On a number of occasions, Kromah, SURUR, and Ahmed met with a confidential source (“CS-1”), both together and separately, concerning potential purchases of elephant ivory and rhinoceros horn. During these meetings and at other times via phone calls and electronic messages, CS-1 discussed with Kromah, SURUR, and Ahmed, in substance and in part, the terms of such sales, including the price, weight, or size of the rhinoceros horns, as well as payment, destination, and delivery options. CS-1 also discussed with Cherif via phone calls and electronic messages, in substance and in part, the terms of the sales, as well as how to send payment for rhinoceros horns from a United States bank account located in New York, New York. On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants to CS-1 that was intended for a buyer represented to be in New York, New York. From in or about March 2018 through in or about May 2018, the defendants offered to sell CS-1 additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns sold by the defendants to CS-1 that were intended for a buyer represented to be in New York, New York.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR and Ahmed conspired to distribute and possess with intent to distribute more than approximately 10 kilograms of heroin to a buyer represented to be located in New York.
* * *
SURUR, 60, is charged with one count of conspiracy to commit wildlife trafficking and two counts of wildlife trafficking, which each carry a maximum sentence of five years; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years; and one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life imprisonment and a mandatory minimum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration. In addition, she thanked law enforcement authorities and conservation partners in Uganda as well as the Kenyan Directorate of Criminal Investigations and the Kenyan Office of the Director of Public Prosecutions for their assistance in the investigation. Ms. Strauss also thanked the U.S. Department of Justice’s Office of International Affairs for their assistance, and noted that the investigation is continuing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and its description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Sentenced for Conspiring to Distribute Methamphetamine in Crawford CountyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Costillo, 33, Blaine, Minnesota, and Denise Kraimer, 27, Columbia Heights, Minnesota, were sentenced by U.S. District Judge William M. Conley for conspiring to distribute 50 grams or more of methamphetamine.
Costillo was sentenced on January 20, 2021 to 84 months in federal prison for his role in the conspiracy. He pleaded guilty to this charge on October 8, 2020. Kraimer was sentenced today to 60 months in federal prison. She pleaded guilty on October 1, 2020. Costillo and Kraimer’s prison terms will each be followed by 4 years of supervised release.
On August 13, 2019, law enforcement officers worked with a confidential informant to set up the purchase of approximately three ounces of methamphetamine from a female identified as Denise Kraimer. The confidential informant had purchased methamphetamine from Kraimer in the past and said she was usually accompanied by a male. Kraimer agreed to drive from Minnesota to Prairie du Chien, Wisconsin, to complete the sale of methamphetamine.
On the early morning of August 14, 2019, Kraimer and Jeffrey Costillo parked their car at the location agreed upon with the confidential informant. Law enforcement officers quickly made contact with Kraimer and Costillo and searched their car. Inside the glove box, officers located two clear plastic bags which contained over 107 grams of methamphetamine. Drug paraphernalia consistent with drug trafficking was also located in the glove box.
When interviewed, Kraimer denied any involvement in drug trafficking. However, a later search of her Facebook account revealed many conversations involving Kraimer setting up sales of methamphetamine, with quantities up to a quarter pound. Costillo claimed to be there more as Kraimer’s bodyguard, though he admitted to knowing they had a large quantity of methamphetamine with them that they were going to sell.
The charge against Costillo and Kraimer was the result of an investigation conducted by the Crawford County Sheriff’s Department, Prairie du Chien Police Department, and Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson.
Two Men Plead Guilty to Arson of Target Corporation HeadquartersRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of SHADOR TOMMIE CORTEZ JACKSON, 24, and LEROY LEMONTE PERRY WILLIAMS, 34, to one count each of conspiracy to commit arson of the Target Corporation’s corporate headquarters building located at 1000 Nicollet Mall, Minneapolis, Minnesota. JACKSON and WILLIAMS are scheduled to be sentenced on May 4 and May 18, 2021, respectively, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis.
According to the defendants’ guilty pleas and documents filed with the court, on Wednesday, August 26, 2020, Minneapolis experienced arson, rioting, and looting following the suicide of a suspect in a homicide, and in response to false rumors surrounding the man’s death. JACKSON, WILLIAMS, and their co-defendant, VICTOR DEVON EDWARDS, 31, went to the Target Corporation’s corporate headquarters building (“Target Corporation building”) where dozens of other people had gathered. JACKSON used a construction sign to break through one of the glass doors into the Target Corporation building. JACKSON, WILLIAMS, and EDWARDS, along with others, breached the doors and entered the Target Corporation building. Once inside, JACKSON, aided and abetted by EDWARDS, intentionally set a fire on a counter inside the mailroom. JACKSON attempted to light a second fire in the mailroom on top of cardboard boxes using a lighter and a bottle of ignitable liquid. JACKSON, WILLIAMS, EDWARDS, along with identified and unidentified others, then ran out of the building using the same door. WILLIAMS subsequently re-entered the building and attempted to light a fire inside the building entrance before leaving the scene.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.
This case is being prosecuted by Assistant United States Attorney Chelsea A. Walcker.
Defendant Information:
SHADOR TOMMIE CORTEZ JACKSON, 24
Richfield, Minn.
Convicted:
- Conspiracy to commit arson, 1 count
LEROY LEMONTE PERRY WILLIAMS, 34
Minneapolis, Minn.
Convicted:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Trucking Company Owner Sentenced for Falsifying Driver RecordsRead the Press Release
PROVIDENCE – The owner of a now defunct Woonsocket commercial trucking company who altered thousands of electronic entries in service logbooks in order to conceal the actual drive time and “on-duty” time of drivers was sentenced today to three years’ probation, the first six months to be served in home incarceration with electronic monitoring, 50 hours of community service, and ordered to pay a fine of $1,000.
U.S. Department of Transportation (USDOT) regulations, enforced by the Federal Motor Carrier Safety Administration (FMCSA), a division of the USDOT, require accurate record keeping and operational requirements, including records related to drivers’ actual hours of service.
Damir Sisic, 30, of Woonsocket, owner of the now defunct Sisic Transport Service LLC (STS), previously admitted to the court that he routinely altered data collected by onboard electronic data gathering devices installed in his trucks. As a result of his actions, the data failed to reflect the actual number of hours his drivers operated the vehicles.
Sisic owned approximately eleven commercial truck tractors and ten box-style commercial trailers and employed between seven and ten drivers at a time. Each vehicle was equipped with an electronic device that recorded each truck’s location and the start and stop time of each vehicle. Sisic accessed and altered that data on thousands of occasions and routinely concealed from the USDOT and FMCSA that his drivers were routinely exceeding the maximum number of driving hours and “on-duty” hours without the required off-duty hours, in violation of federal law.
According to court documents, Sisic provided altered driving records to a State Trooper investigating the fatality of an STS driver who was driving an STS truck that occurred in Oklahoma on April 22, 2018. In addition, Sisic provided altered driving records for numerous STS drivers to an FMCSA investigator during a compliance review.
Sisic pleaded guilty on October 28, 2020, to conspiracy to falsify records. He was sentenced today by U.S. District Court Judge Mary S. McElroy to three years’ probation, the first six months to be served in home incarceration with electronic monitoring, 50 hours of community service, and ordered to pay a fine of $1,000, announced United States Attorney Aaron L. Weisman and Special Agent in Charge Douglas Shoemaker, U.S. Department of Transportation, Office of Inspector General, Office of Investigations, Northeast Region.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Three Charged in West Palm Beach Federal Court with Conspiring to Traffic Crystal MethRead the Press Release
West Palm Beach, FL. – West Palm Beach federal prosecutors have charged three defendants with conspiring to distribute over 30 pounds of crystal methamphetamine. The three defendants are Mexican nationals. Two of the defendants made their initial appearances today in federal magistrate court in West Palm Beach. The third defendant made his initial appearance on Friday, January 22, before a federal magistrate judge in Wisconsin, where he was arrested.
The criminal complaint affidavits filed in federal court allege that Armando Arizmendi-Garcia, 24, Bianey Gonzalez-Arizmendi, 28, and Oscar Daniel Martinez-Nunez, 21, conspired to move methamphetamine from Atlanta, Georgia for distribution in West Palm Beach, Florida. The plan was interrupted on January 22, 2021, when Arizmendi-Garcia and Gonzalez-Arizmendi delivered over 30 pounds of crystal methamphetamine to an undercover officer, say the affidavits. Arizmendi-Garcia and Gonzalez-Arizmendi were arrested on January 22, in West Palm Beach. The third man charged, Martinez-Nunez, was arrested the same day close to Madison, Wisconsin. According to the charges, Martinez-Nunez was responsible for coordinating the drug delivery.
Upon conviction, each defendant faces a mandatory sentence of ten years imprisonment, and up to a maximum of life imprisonment. Arizmendi-Garcia and Gonzalez-Arizmendi made their initial appearances today in federal magistrate court in West Palm Beach. Martinez-Nunez made his initial appearance on January 22, before a federal magistrate judge in Madison, Wisconsin.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Keith Weis, Special Agent in Charge, DEA Miami Field Division made the announcement.
The DEA West Palm Beach District Office handled the investigation, with assistance from DEA-Chicago, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, and Town of Jupiter Police Department. Assistant U.S. Attorney Adam C. McMichael is prosecuting the case.
This prosecution is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Criminal complaints are accusations that contain allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 21-MJ-8011 and 21-MJ-8017.
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Texas Man Pleads Guilty to Conspiracy to Provide Material Support to ISISRead the Press Release
In San Antonio today, 22-year-old Cost resident Jaylyn Christopher Molina, aka Abdur Rahim, admitted to conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (ISIS), announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Western District of Texas Gregg N. Sofer and FBI Special Agent in Charge of the San Antonio Division Christopher Combs.
Appearing before U.S. Magistrate Judge Richard Farrer, Molina pleaded guilty to one count of conspiracy to provide material support to ISIS and one count of receiving child pornography. By pleading guilty, Molina admitted that since May 2019, he conspired with 34-year-old South Carolina resident Kristopher Sean Matthews, aka Ali Jibreel, and others to provide services to ISIS by administering an encrypted, members-only chat group for persons who supported ISIS ideology; by collecting, generating and disseminating pro-ISIS propaganda; by attempting to recruit individuals to join ISIS; and by disseminating bomb-making instructions.
Molina also pleaded guilty to one count of receiving child pornography. On Sept. 18, 2020, federal authorities executing a search warrant at the defendant’s residence seized his cell phone, which contained 18 images depicting child pornography.
Molina faces up to 20 years in federal prison on the conspiracy charge and up to 20 years in federal prison on the child pornography charge. He remains in federal custody pending sentencing.
On Nov. 24, 2020, Matthews pleaded guilty to a conspiracy charge to provide material support to ISIS. Matthews, who remains in federal custody, faces up to 20 years in federal prison. Sentencing is scheduled for 10:30 a.m. CST on March 4, 2021, before Chief U.S. District Judge Orlando L. Garcia in San Antonio.
The San Antonio FBI’s Joint Terrorism Task Force (JTTF), with valuable assistance from the San Antonio Police Department, the U.S. Secret Service and the Gonzalez County Sheriff’s Office, investigated this case. Assistant U.S. Attorneys Mark Roomberg, William R. Harris, Eric Fuchs and Tracy Thompson and Justice Department Trial Attorneys George C. Kraehe and Felice J. Viti of the National Security Division’s Counterterrorism Section are prosecuting this case.
Stowe Resident Charged Federally in Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeffrey M. Nolan, 62, was arrested by federal agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on Friday January 22, 2021 at his home in Stowe, Vermont. He has been charged by a criminal complaint in federal court with the malicious damage or destruction, by means of fire, of property used in or affecting interstate commerce. Nolan made his initial appearance in court on the complaint on Monday, January 25, 2021. On the government’s motion, the Court detained Nolan pending further proceedings.
Over the course of more than five years, a series of fires occurred in the Town of Stowe that resulted in millions of dollars of damages to structures, displaced several people from their jobs, and endangered lives of residents and first responders. Local, state, and federal investigators worked together to investigate the individual or individuals responsible for setting the fires and creating an atmosphere of anxiety for the residents of Stowe. Following a fire at the Stowe Cable Systems building on Thomas Lane on January 7, 2021—the second fire at that specific building in five months—investigators circulated security footage in the community and received multiple tips about the individual seen setting the fire. On January 12, 2021, investigators obtained a state search warrant for Nolan’s residence and interviewed him about his potential involvement in that and other fires. The detectives interviewing Nolan reported that he admitted to having set the January 7 fire and to having set at least seven other fires dating back to March 2019. Nolan was arrested by state law enforcement authorities that day. He was charged in Vermont Superior Court in Lamoille County with various arson-related felonies on January 13, 2021, and was released by the court.
ATF and the United States Attorney’s Office worked closely with the Stowe Police Department, Vermont State Police, and other investigative agencies throughout the multi-year arson investigation. Following Nolan’s state arrest, the United States consulted with the Lamoille County State’s Attorney and elected to pursue federal charges against Nolan. A federal arrest warrant issued on January 21, 2021, and Nolan was arrested the following day. The state charges will remain pending, at least initially, during the federal proceedings.
U.S. Attorney Christina Nolan commended the joint investigation and collaboration between state and federal agencies in this case including ATF, Stowe Police Department, and Vermont State Police. “Federal law enforcement agencies like ATF provide resources not always available to local departments,” she said, “but nothing can replace the knowledge of local officers and detectives in small communities like this. A series of fires like this has public safety and psychological impacts well beyond the costs of property damage. Our office will always coordinate with state and local agencies to protect the safety and vitality of our towns and their residents.”
“The effects of arson have far-reaching implications and are detrimental to the safety of our communities,” said Kelly D. Brady, Special Agent in Charge of the Boston Field Division of ATF. “Beyond the malicious destruction of property and infrastructure, acts of arson are extremely dangerous and risk the lives of innocent persons and our first responders. In addition, these acts sow fear in the hearts of our communities, often over a lengthy period of time. ATF takes these acts of violence seriously. This investigation proves, yet again, that collaboration amongst all levels of law enforcement is extremely effective in solving violent crime, and we want to thank both the Stowe Police Department and the Vermont State Police Fire & Explosion Investigation Unit for their persistence in this investigation.”
Stowe Chief of Police Donald Hull noted the local impact of the fires and thanked the investigators and the United States Attorney. “The Town of Stowe has been plagued by more than a dozen intentionally set fires. There is no doubt these fires caused anxiety and great concern with the public. The response and investigation have consumed an enormous amount of time and resources. These investigations comprised a true team effort among all of the agencies and those investigators involved. I want to thank everyone that helped from the Vermont State Police Fire and Explosions Unit, ATF, and the Stowe Police Department.”
A federal criminal complaint is a preliminary charging document. As with all charging documents, it is an accusation only, and the defendant is presumed innocent until and unless proven guilty at trial or by a guilty plea. The United States will seek formal federal charges before a grand jury in the coming weeks. The exact number and type of charges to be presented to the grand jury have not yet been determined. If convicted of the same crime charged in the complaint, however, Nolan would face a minimum penalty of 5 years and a maximum possible penalty of 20 years in prison. The ultimate sentence imposed by the Court would be advised by the United States Sentencing Guidelines and statutory factors for sentencing.
The defendant is currently represented by David McColgin, an Assistant Federal Public Defender. The federal case is being prosecuted by Assistant United States Attorneys Matthew Lasher and Jeffrey Davis.
Statement by U.S. Attorney Billy J. Williams on Racist and Threatening Letters Sent to Community Leaders, ActivistsRead the Press Release
PORTLAND, Ore.—Billy. J. Williams, U.S. Attorney for the District of Oregon, released the following statement on racist and threatening letters sent to Portland area community leaders and activists:
“We are aware that some Portland area community leaders and activists have, in recent months, received racist letters threatening violence against them, their families, or people they know. I want to reassure the community that the U.S. Attorney’s Office takes these threats very seriously and, together with our partners at the FBI and U.S. Postal Inspection Service, are engaged in an active investigation to determine who is responsible for creating and sending these letters and to evaluate criminal wrongdoing.
We need the public’s help to keep our communities safe and protect all Oregonians. To that end, we urge you to submit any information you have about these or other threats of violence. Tips can be submitted directly to the FBI’s Portland Field Office by calling (503) 224-4181 or by visiting tips.fbi.gov. While our investigation is ongoing, we must respectfully decline further comment.”
South Florida U.S. Attorney’s Office and IRS-CI Warn Taxpayers about New Wave of COVID-19 Scams as Second Round of Economic Impact Payments are DeliveredRead the Press Release
MIAMI, Florida -- The United States Attorney’s Office for the Southern District of Florida and Internal Revenue Service-Criminal Investigations (IRS-CI), Miami Field Office, are warning taxpayers about a new wave of COVID-19-related scams as the agency delivers the second round of Economic Impact Payments.
In the last several months, IRS-CI has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of the second round of Economic Impact Payments – as well as the approaching filing season – to trick honest taxpayers out of their hard-earned money.
“I have two messages concerning the second round of economic impact payments,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “The first is to South Florida residents: As our community continues to grapple with the impacts of the pandemic, know that my office remains committed to protecting you and that we will continue to prioritize the prosecution of Covid-19 fraud. My second message is to those fraudsters who seek to capitalize on this ongoing crisis by trying to cheat South Floridians out of relief money: Don’t do it! You will be found. You will be arrested. You will be prosecuted.”
Tyler R. Hatcher, Acting Special Agent in Charge of the IRS-CI Miami Field Office warned, “Economic relief efforts are meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. But we have other plans for those who try to prey on the public, and we are committed to hold them accountable for their criminal actions. Report any phone calls, emails, or text messages asking for your personal information or offering a deal that seems too good to be true.”
Some common COVID-19 scams include:
- Text messages asking taxpayers to disclose bank account information under the guise of receiving the $1,200 Economic Impact Payments.
- Phishing schemes using email, letters and social media messages with key words such as “Coronavirus,” “COVID-19,” and “stimulus” in varying ways. These communications are blasted to large numbers of people and aim to access personally identifying information and financial account information (including account numbers and passwords).
- The organized and unofficial sale of fake at-home COVID-19 test kits (as well as offers to sell fake cures, vaccines, pills, and professional medical advice regarding unproven COVID-19 treatments).
- Fake donation requests for individuals, groups and areas heavily affected by the disease.
- Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.
Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers. The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.
IRS-CI continues investigating hundreds of COVID-19-related cases with law enforcement agencies domestically and abroad and educating taxpayers about scams.
COVID-19 scams should be reported to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or submitted through the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies.
Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Reports can be made online at TIPS.TIGTA.GOV.
Taxpayers who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, should forward the message to [email protected]. Taxpayers are encouraged not to engage potential scammers online or on the phone.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
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Se Condena a una Pena de Prisión un Exmédico para el Departamento de Asuntos de Veteranos por Haber Abusado Sexualmente de VeteranosRead the Press Release
WASHINGTON, D.C. — Un exmédico de medicina osteopática que previamente había trabajado en el Centro Médico del Departamento de Asuntos de Veteranos (VA, por sus siglas en inglés) en Beckley, Virginia Occidental, fue condenado hoy por haber privado, con apariencia de legalidad, a veteranos de sus derechos civiles al abusar de ellos sexualmente.
El Fiscal Federal de Distrito Frank W. Volk condenó a Jonathan Yates, de 52 años, de Bluefield, Virginia, a 300 meses de prisión y tres años de libertad supervisada. Así anunciaron el Fiscal General Auxiliar Adjunto del Departamento de Justicia, Gregory B. Friel, el Fiscal Federal para el Distrito Sur de Virginia Occidental, Michael B. Stuart, el Agente Especial Encargado de la División del FBI en Pittsburgh, Michael A. Christman, y el Inspector General de VA, Michael J. Missal.
Yates previamente se había declarado culpable el 17 de septiembre del 2020 de tres cargos de delitos graves basados en la privación de derechos con apariencia de legalidad. Según se indica en los documentos de la declaración, Yates frotó los genitales de dos veteranos y penetró digitalmente el recto de un tercer veterano bajo el pretexto de medicina legítima, cuando en realidad actuó sin contar con un uso médico legítimo. Esta conducta, que tuvo lugar mientras Yates actuaba con apariencia de legalidad en su carácter de médico del VA y empleado federal, privó a los veteranos de su derecho constitucional a la integridad corporal y les provocó dolor. Según se indica en los documentos de la declaración, los veteranos habían acudido a Yates para controlar su dolor crónico mediante la terapia manipulativa osteopática. Varios veteranos hablaron ante el tribunal en la dictación de la sentencia y describieron el trauma y la angustia mental que Yates les había causado. Yates entregó sus licencias médicas como condición de su acuerdo con su sentencia por consentimiento.
«La condena de hoy refleja la seriedad de la mala conducta de este acusado. Él traicionó su juramento de una manera despreciable y empleó sus conocimientos médicos especializados y su pericia para abusar de sus propios pacientes. Ahora se le ha hecho rendir cuentas de sus acciones», afirmó el Fiscal General Auxiliar Adjunto, Gregory B. Friel, de la División de Derechos Civiles. «El hecho de que tantos se presentaron para llevar a este acusado ante la justicia demuestra la valentía de nuestros veteranos».
«Militares veteranos que sirven y se sacrifican por proteger nuestra nación se merecen únicamente la mejor atención. Yates traicionó su juramento como médico y a los veteranos bajo su cuidado», declaró el Fiscal Federal para el Distrito Sur de Virginia Occidental, Michael Stuart. «Hoy se ha pedido a Yates que rinda cuentas de sus acciones atroces. Aunque su condena a la pena de prisión no podrá deshacer los daños sustanciales que Yates causó a sus víctimas, esperamos que esto aliviará su dolor. Quiero felicitar al FBI y al Departamento de Asuntos de Veteranos-Oficina del Inspector General por su excelente trabajo en esta investigación. También quiero dar las gracias a las víctimas y sus familias por su firme apoyo durante el procesamiento de este caso».
«Yates cometió delitos atroces en un cuarto de hospital, el cual debe ser un lugar de refugio para pacientes», dijo Michael Christman, el Agente Especial Encargado del FBI en Pittsburgh. «Los hechos asociados con este caso son repugnantes y estos pacientes y sus familias se merecían mejor atención. Mientras que la condena de hoy no restará de lo que les pasó a estos pacientes que se dedicaron la vida al servicio de nuestra nación, Yates ya no podrá hacer daño nunca más a nadie. Esperamos que esto sirve como justicia para sus víctimas».
«Esta condena es el resultado del trabajo excepcional de los agentes de la Oficina del Inspector General y las agencias asociadas de cumplimiento con la ley», afirmó el Inspector General Michael J. Missal. «Nuestros pensamientos están con los veteranos que fueron abusados de una forma tan horrorosa por un médico encargado de cuidarlos, y seguiremos siendo vigilantes en nuestros esfuerzos por mantener a salvo a todo paciente del VA».
El caso fue investigado por el FBI, la Oficina del Inspector General del Departamento de Asuntos de Veteranos y la Policía de Asuntos de Veteranos. El caso fue procesado por la Consejera para Litigios Especiales Samantha Trepel y el Abogado de Litigios Kyle Boynton, los dos de la División de Derechos Civiles del Departamento de Justicia de los EE. UU., el Fiscal Federal Auxiliar para el Distrito Sur de Virginia Occidental, Greg McVey, y el Jefe Auxiliar de la Sección de Fraude del Departamento de Justicia de los EE. UU., Kilby MacFadden.
Podrá encontrar información y documentos judiciales en el sitio web del Tribunal Federal de Distrito para el Distrito Sur de Virginia Occidental en http://www.wvsd.uscourts.gov/ o en http://pacer.wvsd.uscourts.gov/.
Sacramento County Man Sentenced to 8 Years in Prison for Unlawfully Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Robert James Hanna, 38, of Elk Grove, was sentenced today to eight years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 4, 2019, several witnesses called 911 to report a fight in progress at an intersection in Vacaville. The callers reported that Hanna and another man and two women were involved in a melee, and one of the witnesses saw a gun fall from Hanna’s clothing during the incident. Court records state that Hanna hit the man in the face several times, and at least one of the victims reported that Hanna threatened to shoot him. Hanna and a female companion fled the scene and were arrested at a nearby home-improvement store moments later. The female companion had a 9 mm pistol in her pants at the time. The companion said that Hanna had given her the gun and told her to go inside. One of the victims identified the gun as the one he saw in Hanna’s clothing during the altercation. Hanna cannot lawfully possess firearms or ammunition because he has previously been convicted of two felony offenses in Solano County for assault with a deadly weapon and false imprisonment.
This case was the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
SDTX mourns loss of longest-tenured attorneyRead the Press Release
HOUSTON – The Southern District of Texas (SDTX) has lost a valued Assistant U.S. Attorney (AUSA) with 40 years of service spanning eight presidential administrations, announced U.S. Attorney Ryan K. Patrick.
Hays Jenkins, 71, Missouri City, passed way over the weekend. He was the most senior attorney in the SDTX and one of only approximately three dozen with similar years of service among U.S. Attorney’s Offices throughout the nation.
Jenkins began his federal career in 1967 with NASA. He later worked as a Harris County Assistant District Attorney before joining the U.S. Attorney’s Office (USAO) in 1980. In Summer 2020, the office celebrated his 40 years of service to the Department of Justice during a celebration via Zoom.
During his tenure, Jenkins had many different assignments throughout the office and was involved in a variety of cases. He also served as the chief of the Civil Division and as senior litigation counsel. Most recently, he was assigned to the Human Rights and Organized Crime Section primarily prosecuting immigration-related offenses. Over the years, Jenkins consistently worked tirelessly and produced outstanding results.
“Hays will be missed,” said Patrick. “I did not meet a kinder man in the office since I have been here, and he always had a positive thing to say to me.”
Jenkins was a dedicated professional. He could have retired many years prior to his passing, but loved what he did and continued his work to ensure the fulfillment of, and his contribution to, the overall USAO mission.
Jenkins, a long-time Houston-area resident, was a graduate of Grand Prairie High School and University of Houston. He later earned his juris doctor degree from Thurgood Marshall School of Law at Texas Southern University.
SDTX personnel, to include numerous AUSAs and support staff past and present, who have been blessed to know and work with Jenkins over his long career mourn his loss to the community. Patrick and his leadership also send heartfelt condolences to his family and friends.
Registered sex offender heads to prison after distributing child pornographyRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Corpus Christi man has been ordered to federal prison after he admitted to sending photos depicting the sexual exploitation of children, announced U.S. Attorney Ryan K. Patrick.
Daniel Ellsworth Janssen pleaded guilty Oct. 22, 2020.
Today, U.S. District Judge David S. Morales ordered him to serve a 204-month sentence. At the hearing, the court heard that Janssen had been on probation for attempted indecency with a child when he was arrested for this federal crime. Following his 17-year federal prison term, Janssen will serve 15 years on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet. Again, he has been ordered to register as a sex offender. He must also pay $3,000 in restitution for each of the three identified victims.
Authorities had linked Janssen to an e-mail and IP address that was accessing child pornography. Law enforcement conducted a search, at which time they seized multiple electronic devices from Janssen’s Corpus Christi residence. A forensic examination later revealed over 1,500 images and videos of child pornography on those devices. Some he had distributed using his cell phone. The majority of the images and videos located on Janssen’s devices depicted the sexual exploitation of children under the age of 10.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sara Popejoy prosecuted the case which was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Passaic County Man Admits Participating in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted conspiring to distribute heroin and to distributing a quantity of heroin, Acting U.S. Attorney Rachael A. Honig announced.
Carl Brown, 27, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with conspiracy to distribute and possess with the intent to distribute heroin and knowingly and intentionally distributing heroin.
According to documents filed in this case and statements made in court:
The defendant and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, Brown and his conspirators conspired to distribute narcotics, including heroin.
Each count of the superseding information carries a maximum penalty of 20 years in prison and a fine of at least $1 million. Sentencing is scheduled for June 1, 2021.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff's Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
New York Accountant 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, announced that JAMES G. GUERRA, 58, of Dix Hills, New York, waived his right to be indicted and pleaded guilty today 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, Guerra worked as an accountant for Bruno DeFabio, an owner of several pizza restaurants in Connecticut and New York, including Pinocchio Pizza LLC, doing business as Pinocchio Pizza in New Canaan, Connecticut; Top Oven Restaurant Corp., doing business as Pinocchio Pizza in Wilton, Connecticut; DiFabio Brothers Pizza Corp., doing business as Amore Pizza in Scarsdale, New York; Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut; Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Homefield Restaurant Corp., doing business as Pinocchio Pizza in Pound Ridge, New York.
DiFabio and his businesses engaged in a practice whereby cash was removed from the cash registers and not deposited into the restaurants’ operating bank accounts, and Guerra knew that DiFabio had a practice of paying his employees in cash. Although Guerra was aware that DiFabio was failing to collect required withholding taxes from his employees and, in turn, not paying over these taxes to the IRS, Guerra reviewed and approved DiFabio’s quarterly tax returns that DiFabio subsequently signed and filed with the IRS.
Guerra pleaded guilty to one count of willful failure to collect and pay over withholding taxes, an offense that carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Guerra is released pending sentencing.
On October 25, 2018, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns. When he pleaded guilty, he agreed that the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $816,954.
On September 24, 2018, DiFabio’s business partner in some of his restaurants, Steven Cioffi, pleaded guilty to one count of aiding and assisting in the filing of a false tax return.
On June 4, 2019, Idalecia Lopes Santos, a bookkeeper who worked for DiFabio, pleaded guilty to one count of tax evasion.
DiFabio, Cioffi and Santos await 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.
Nantucket Painting Business Owner Charged with $2 Million Tax FraudRead the Press Release
BOSTON – The owner of a commercial and residential painting business on Nantucket was charged today with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $2 million.
Durvan C. Lewis, 51, of Nantucket, was charged and has agreed to plead guilty to one count of tax evasion and one count of failure to pay over taxes. A hearing has not yet been scheduled.
Lewis owned and operated a painting business known as DCL Painting. From 2014 through 2017, Lewis allegedly diverted over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failed to report the diverted receipts to his tax preparer. In addition, during the tax quarters ending March 31, 2012 through Sept. 30, 2019, it is alleged that Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table.” As a result of his conduct, Lewis underreported his personal income tax obligations, as well as failed to report and pay over to the IRS the employment taxes owed on the cash wages. In total, Lewis allegedly caused a loss to the IRS of $2,084,852.
The charging statutes provide for a sentence on each count of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement today. Assistant U.S. Attorney James R. Drabick of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Mescalero man charged with sexual abuse of a childRead the Press Release
ALBUQUERQUE, N.M. – James Darius Caje, 27, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was charged in federal court on Jan. 21 with sexual abuse of a minor. Caje will remain detained pending trial.
According to a criminal complaint, on the night of Feb. 24 or early morning Feb. 25, 2020, Caje allegedly entered the bedroom of the victim, who was less than 16-years old, and sexually assaulted her. The following day, the victim reported the assault to a school counsellor, who then reported it to law enforcement. The assault occurred on the Mescalero Apache Reservation.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Caje faces up to 15 years in prison.
The FBI investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Local man pleads guilty in case involving 58 firearms stolen from sporting goods storeRead the Press Release
DAYTON – A Dayton man pleaded guilty in U.S. District Court in Dayton today to conspiring with others to steal more than 50 firearms from Target World in Sharonville in June 2018.
Miyauhn Vineyard, 21, admitted that on June 17, 2018, he and other co-conspirators parked in an adjacent parking lot and cut off an exterior door lock to the store. The individuals then smashed display cases in the retail area of the store and stole 58 firearms.
According to court documents, two days later, the ATF recovered 10 of the firearms stolen by the defendant through a third-party sale.
Vineyard pleaded guilty to conspiring to steal firearms from a federal firearms licensee, a crime punishable by up to five years in prison.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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