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19 January 2021
Grand Rapids Man Guilty of Distributing Fatal Dose of FentanylRead the Press Release
KALAMAZOO, MICHIGAN — On January 14, 2021, a jury found Javontae Quintez White, 28, of Grand Rapids, guilty of distributing a fatal dose of the deadly synthetic opioid fentanyl to a Grand Rapids woman, announced U.S. Attorney Andrew Birge. The victim, who died in July 2018, was 33 years old at the time of her death.
On the morning of July 8, 2018, the victim was discovered by her boyfriend in her apartment unconscious and unresponsive. The boyfriend and the victim had used the fentanyl late in the evening of July 7, 2018. The Grand Rapids Police Department (GRPD) and paramedics responded to the scene and found the victim dead. Police identified a suspected amount of fentanyl and other drugs on a living room side table steps away from the victim. An autopsy performed by the Kent County Medical Examiner later that day revealed that the victim had died of a fentanyl overdose.
The boyfriend had obtained the fentanyl through a heroin addict who middle-manned the deal between the boyfriend and Mr. White on the evening of July 7, 2018. Within hours of finding the victim on July 8, 2018, GRPD arranged an undercover purchase that resulted in the addict / middleman’s arrest. Further investigation by GRPD led to the identification of Mr. White as the source of the deadly fentanyl. Mr. White was arrested in the evening of July 8, 2018, less than ten hours after the victim was found dead. Upon his arrest, Mr. White was found in possession of additional fentanyl and cocaine and the marked currency that the undercover officer used to purchase fentanyl earlier that afternoon.
Mr. White was indicted for distribution of fentanyl resulting in death, distribution of fentanyl, and possession with intent to distribute fentanyl and cocaine. Because of his prior felony drug record, Mr. White faced a sentence of mandatory life in prison if convicted at trial of the distribution resulting in death charge. In September 2020, a jury convicted White for distributing fentanyl to the addict / middleman on July 8, 2018 and for possession with intent to distribute the fentanyl and cocaine found on him at his arrest. The jury did not return a verdict on the distribution resulting in death charge.
Mr. White elected to be retried on the distribution resulting in death charge after declining a plea agreement that would have enabled him to receive a sentence of less than mandatory life in prison. After four days of trial, the jury convicted him. Mr. White’s sentencing is scheduled for April 26, 2021 before U.S. District Judge Paul L. Maloney at which time he will face a mandatory sentence of life in prison.
“Fentanyl and its analogues are the deadliest of illegal street drugs. Individuals who order heroin are increasingly receiving fentanyl, a synthetic opioid that is much easier and cheaper to produce than heroin but offers a similar high. Addicts who take fentanyl frequently do so with deadly consequences,” said U.S. Attorney Birge. “Those involved in illegal opioid distribution in West Michigan beware: if you deal heroin and fentanyl, you are not only ruining lives, you are often taking them. The West Michigan law enforcement community is committed to ensuring that drug dealers who distribute drugs resulting in death are brought to justice and that lives are accounted for,” added U.S. Attorney Birge.
“Drug dealers, like Mr. White, are dealing poisons in our communities with total disregard for human life,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “We are proud to work with our state and local law enforcement partners to get drug dealers, like Mr. White, out of our neighborhoods and brought to justice.”
“The Grand Rapids Police Department recognizes the toll that the opioid crisis has taken on our community. We strive to hold opioid dealers accountable for the deaths they are continuing to cause in our city and across the country,” added Grand Rapids Police Department Lieutenant Jon Wu. “We thank the U.S. Attorney’s Office for their persistence in securing Mr. White’s conviction for selling fentanyl, which all too often results in death.”
The boyfriend and addict / middleman were criminally charged by the Kent County Prosecutor’s Office for their involvement in the offense. They pled guilty and are serving the remainder of their sentences.
Assistant U.S. Attorneys Joel S. Fauson and Austin J. Hakes are prosecuting the case.
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Government Contractor Sentenced for Fraudulently Billing Federal and State Construction ContractsRead the Press Release
BOSTON – VJ Associates, Inc. of Suffolk, based on Hicksville, N.Y., pleaded guilty and was sentenced today on criminal and civil charges relating to a long-running overbilling scheme involving numerous government-funded construction projects in Massachusetts and New York.
VJ Associates, Inc. of Suffolk pleaded guilty to conspiracy to commit wire fraud and was sentenced by U.S. District Court Judge Denise J. Casper to pay nearly $1.3 million in restitution and a fine of $530,000. Between this sentence and related civil settlements, VJ Associates, Inc. of Suffolk and its affiliated companies (collectively VJ Associates) will pay a total of $3.13 million in criminal and civil fines and restitution and be debarred permanently from participating in contracts funded by the U.S. Department of Transportation (DOT).
VJ Associates provided sub-contracted estimating and scheduling services for construction projects funded with state and federal money. Services included forecasting costs and resources to complete a project, and estimating the time necessary to complete milestones in a project. VJ Associates employees frequently billed government contracts hourly for their time. The DOT, the State of New York and the Commonwealth of Massachusetts funded many projects on which VJ Associates worked.
From at least January 2007 through August 2018, VJ Associates, Inc. of Suffolk—the largest and original VJ Associates entity—conspired with other VJ Associates entities and employees to pad bogus time charges on government construction contracts funded by the DOT, the State of New York and the Commonwealth of Massachusetts. As a result, the VJ Associates entities improperly received nearly $1.3 million in state and federal taxpayer money. The improper billing included, for example, hours employees spent working on unrelated projects, time spent on administrative tasks and time doing no work. Under pressure from management, employees openly discussed improper billing as “juicing” and “tagging” hours in order to “maximize” bills on government projects and not “leave money on the table.” One employee summed up his billing practices to his colleague as a “shell game” and explained that, when management “gave him a bit of trouble” about how he billed his time, he fraudulently maximized his hours billed because “what the hell,” management “pay[s] me every two weeks,” and he was “not the boss.”
The related civil settlement with the United States arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with settlement with the United States, the whistleblower will receive 22.5% of the recovery.
The government’s resolution of this matter illustrates the government’s emphasis on combating fraud related to government-funded transportation projects. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Transportation, at 1-800-424-9071.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Regional Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General; and Port Authority of New York and New Jersey Acting Inspector General Farbiarz made the announcement today. Assistant United States Attorneys Brian M. LaMacchia and Evan Gotlob of Lelling’s Office handled the matter.
Fresno Man Sentenced to over 3 years in Prison for Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Jesse Moses Escano, 22, of Fresno, was sentenced on Friday by U.S. District Judge Dale A. Drozd to three years and three months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, law enforcement officers conducted a parole-compliance check on Escano. During a pat down search, one of the officers discovered a loaded semi-automatic handgun on Escano’s person. The handgun was later determined to have been stolen out of Brentwood. Escano had been previously convicted of an assault with a deadly weapon, a felony, and was prohibited from possessing firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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.
Fourth New Jersey Man Charged in Connection with an Interstate Luxury Car Theft RingRead the Press Release
NEWARK, N.J. – A fourth man was arrested today for his role in a conspiracy to steal and transport across state lines luxury cars from towns in New York, Connecticut, and New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Bilal Cureton, 30, of Newark, is charged by amended complaint with conspiring to transport stolen vehicles in interstate commerce. Cureton was arrested today and is scheduled to appear by videoconference today before U.S. Magistrate Judge James B. Clark III.
Malik Baker, Hakeem Smith, and Nafique Goodwyn were previously charged by complaint with conspiring to transport stolen vehicles in interstate commerce. Baker and Smith were also previously charged with one count of conspiring to receive stolen vehicles and one count of receiving a stolen vehicle that had crossed state lines after being stolen, and Smith was also previously charged with one count of transporting a stolen vehicle across state lines.
According to documents filed in this case and statements made in court:
Since July 2019, the defendants and others stole and conspired to steal at least 10 luxury cars from towns in New York, Connecticut, and New Jersey, and hid those cars at a location in Irvington, New Jersey. The cars include a 2019 BMW X4 M40i, stolen from Greenwich, Connecticut on July 19, 2019; a 2016 Mercedes Maybach S600, stolen from Clifton, New Jersey, on Aug. 1, 2019; a 2019 Porsche Cayenne, stolen from New City, New York, on Aug. 6, 2019; a 2017 Mercedes S550 and a 2019 Rolls Royce, stolen from Hewlett Bay Park, New York, on Aug. 13, 2019; a 2019 Land Rover, stolen from Kensington, New York, on Aug. 22, 2019; a 2019 Mercedes Maybach, stolen from Quogue, New York, on Aug. 29, 2019; a 2014 Lexus GS, stolen from West Long Branch, New Jersey, on Aug. 29, 2019; a 2017 BMW M4, stolen from Marlton, New Jersey, on Sept. 7, 2019, and a 2017 Mercedes AMG S63, stolen from Orangeburg, New York, in September 2019.
The defendants often used the stolen cars to steal more cars, and, in one instance, they used a Maserati GranTurisimo they stole from Manalapan, New Jersey, to steal a Range Rover and a Porsche Cayenne in the early morning hours of Aug. 6, 2019 in New City, New York. When law enforcement attempted to conduct a stop of the Maserati, the Maserati accelerated and crashed head-on into a police vehicle before the suspects fled the scene in another stolen vehicle. Over the course of the investigation, law enforcement recovered one of the stolen cars in a shipping container at the port in Newark en route to Ghana, Africa.
The cars stolen by the defendants have an estimated total value of at least $1.5 million.
The charge of conspiracy to transport stolen vehicles is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; as well as the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to today’s charges. She also thanked officers with the Irvington Township Police Department, under the direction of Director Tracy Bowers; the Clarkstown Police Department, under the direction of Chief Raymond McCullagh; the Wall Township Police Department, under the direction of Chief Kenneth Brown, Jr.; the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; the Tewksbury Township Police Department, under the direction of Chief Tim Barlow; the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Hunterdon County Prosecutor’s Office, under the direction of Acting Prosecutor Michael J. Williams, as well as officers and agents with the U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office; the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, and the Department of Commerce-Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, for their assistance.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Christopher Amore and Olajide Araromi of the Office’s Government Fraud Unit.
The charges and allegations contained in the amended complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Owner of Stamp Farms Sentenced to Eight Years in Prison for Bank Fraud Scheme and Conspiracy to Defraud Farm Benefit ProgramsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Michael David Stamp, 46, of Decatur, Michigan, was sentenced to 96 months in federal prison for bank fraud and federal farm program fraud. U.S. District Judge Paul L. Maloney imposed the sentence. He also sentenced Stamp to five years of supervised release and ordered him to pay more than $17 million in restitution to Wells Fargo Bank, the U.S. Department of Agriculture’s Risk Management Agency, and U.S.D.A.’s Farm Service Agency.
Stamp, who at one point operated the largest agribusiness in the State of Michigan, pled guilty to engaging in a scheme to defraud his lender, Wells Fargo Bank, in order to obtain a $68 million line of credit for his business. He also pled guilty to engaging in a conspiracy to defraud the Federal Crop Insurance Corporation. Judge Maloney characterized Stamp’s fraud scheme as “rampant” and a “rip-off of the taxpayers of the United States” who fund federal farm benefits programs, “which are supposed to help farmers.”
“Mr. Stamp fraudulently obtained $68 million in bank loans and took advantage of government programs funded by U.S. taxpayers. Today’s sentence should serve as a reminder that defrauding public programs and providing false or misleading documents to financial institutions are serious crimes that undermine our financial system and will not be tolerated,” said Sarah Kull, Special Agent in Charge, IRS-Criminal Investigations.
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who attempt to defraud U.S. Department of Agriculture programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to all that fraud will be vigorously investigated and prosecuted by the USDA-OIG and the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs. The USDA-OIG applauds the steadfastness and resolution of the U.S. Attorney's Office to prosecute this matter and the agents of IRS-Criminal Investigations that assisted in this criminal investigation.”
The investigation was conducted by Internal Revenue Service-Criminal Investigations, U.S.D.A’s Office of Inspector General, and U.S.D.A.’s Risk Management Agency. Assistant U.S. Attorneys Clay Stiffler and Tim VerHey prosecuted the case.
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Former Eugene Elementary School Teacher Pleads Guilty for Sexually Abusing 15-Year-OldRead the Press Release
EUGENE, Ore.—A former Eugene elementary school teacher pleaded guilty today for sexually abusing a minor female, announced U.S. Attorney Billy J. Williams.
William Hamann, 38, pleaded guilty to one count of sex trafficking of a child.
According to court documents, on several occasions beginning in 2018 and continuing until July 2019, Hamann paid a minor female for oral sex and recorded the minor performing the sex acts. The minor female was 15 years old during the first encounter with Hamman. Eugene Police Department detectives and FBI agents arrested Hamann on July 26, 2019, when he came to meet the minor a fourth time. Agents searched his mobile phone and found a recording of one of the sex acts. Hamman used social media to arrange the meetings with the minor.
On August 21, 2019, a federal grand jury in Eugene returned a four-count indictment charging Hamann with sexual exploitation and trafficking of a child, possession of child pornography, and attempted sex trafficking of a child.
Hamann was also charged with multiple counts in Lane County Circuit Court, including sodomy and sex abuse.
Hamann will be sentenced on March 1, 2021 before U.S. District Court Judge Ann Aiken. The U.S. Attorney’s Office will recommend a sentence of 160 months in federal prison to be served consecutively to a 20-month prison sentence in Lane County.
As part of the plea agreement, Hamann has agreed to pay restitution in full to his victim.
This case was investigated by the FBI and the Eugene Police Department. It is being prosecuted by Jeff Sweet, Assistant U.S. Attorney for the District of Oregon, and Katherine Green, Lane County Deputy District Attorney.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Correctional Officer Pleads Guilty to Submitting False Report Related to a Federal Civil Rights InvestigationRead the Press Release
SACRAMENTO, Calif. — A former California Department of Corrections and Rehabilitations (CDCR) correctional officer pleaded guilty today to submitting a false report in connection with a federal civil rights investigation, U.S. Attorney McGregor W. Scott announced.
Ashley Marie Aurich, 32, of Sacramento, pleaded guilty to one count of falsification of records in a federal investigation.
According to court documents, Aurich was a correctional officer at California State Prison, Sacramento. On Sept. 15, 2016, Aurich and another former correctional officer, Arturo Pacheco, escorted an inmate whose hands were handcuffed behind the inmate’s back. During the escort, Aurich saw Pacheco bend down behind the inmate and pull the inmate’s legs out from under him. This caused the inmate immediately to fall forward violently striking his head and upper torso on the concrete. The inmate-victim was taken to the hospital where he died approximately two days later.
After the incident, Aurich prepared a false report regarding Pacheco’s assault on the victim in which Aurich inaccurately described the way Pacheco took the victim to the ground and failed to identify another witness to the assault. Aurich prepared the false report in order to deceive investigators, minimize Pacheco’s conduct, and obstruct the ensuing federal investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and CDCR, Office of Internal Affairs. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Aurich is scheduled to be sentenced by U.S. District Judge William B. Shubb on April 12. Aurich faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arturo Pacheco, 38, of Mather, is charged with two counts of deprivation of rights under color of law and two counts of falsification of records in a federal investigation in a related case. The charges against Pacheco are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. (2:20-cr-221-WBS)
Former Construction Executive Sentenced to 38 Months in PrisonRead the Press Release
A former senior New York construction official was sentenced to 38 months in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, for more than eight years, Anthony Guzzone attempted to evade his federal income taxes. Guzzone, the former Director of Global Construction at Bloomberg LP in New York, failed to report to the IRS over $1.45 million in bribes he received from subcontractors performing work at Bloomberg construction jobs. Guzzone, together with other Bloomberg managers and officials at Turner Construction, solicited a total of over $6 million in bribes, which was typically paid to them in cash. On other occasions, Guzzone received in-kind bribes in the form of free construction work performed on his home and tickets to expensive events like the Super Bowl.
One Bloomberg manager involved in the scheme, Michael Campana, had subcontractors pay for the catering hall at his wedding, as well as the wedding photographer. Campana was previously sentenced to 24 months in prison based on his failure to report the bribery income. Based on Guzzone’s failure to report the bribe income between 2010 and 2017, he caused a tax loss to the IRS of approximately $450,000. Two Turner Construction officials, Ronald Olson and Vito Nigro, are awaiting sentence.
In addition to a term of imprisonment, U.S. District Court Judge Lewis Liman sentenced Guzzone to three years of supervised release, and ordered him to pay $574,005 in restitution to the IRS, which comprised his outstanding taxes and interest.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-CI as well as Assistant U.S. Attorney David Lewis for the Southern District of New York and Senior Litigation Counsel Stanley Okula of the Tax Division who prosecuted the case.
Former Construction Executive Sentenced to 38 Months in Prison for Tax Evasion and Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that ANTHONY GUZZONE, a former Director of Global Construction at Bloomberg, LP (“Bloomberg”), was sentenced today in Manhattan federal court to 38 months in prison for evading taxes on more than $1.45 million in bribes he received from building sub-contractors. GUZZONE previously pled guilty to those charges, and was sentenced today before U.S. District Judge Lewis J. Liman.
In related proceedings, co-conspirator Michael Campana, a subordinate construction manager at Bloomberg, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in the same scheme. In addition, Ronald Olson and Vito Nigro, two managers of a construction contractor that performed projects for Bloomberg, have separately pled guilty to evading taxes on more than $1.4 million and $1.8 million in bribes that they respectively received in the same scheme. Olson is scheduled to be sentenced on February 3 before U.S. District Judge P. Kevin Castel, and Nigro is scheduled to be sentenced on March 8 before U.S. District Judge Analisa Torres.[1]
U.S. Attorney Audrey Strauss said: “Bribery and tax evasion impose hidden, unfair costs on the law-abiding public. The type of criminality uncovered in this case imposes that burden widely, on customers, on employers, and on fellow taxpayers. It is intolerable in a just society.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2010 and 2017, GUZZONE was the Director of Global Construction at Bloomberg, a global financial firm that was engaged in various building projects in New York City and elsewhere, while Olson and Nigro were executives Turner Construction, a construction contractor that performed projects for Bloomberg. For most of that time, beginning in 2013, Campana was also a construction manager at Bloomberg. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.
In all, the defendants have pled guilty to failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction projects on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included GUZZONE’s receipts of several sets of Super Bowl tickets, worth approximately $8000 per ticket, as well as Campana’s receipt of charges related to Campana’s 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with Campana’s honeymoon. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
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GUZZONE, 51, of Middletown, New Jersey, pled guilty on September 29, 2020, to a single count of tax evasion for the tax years 2010 through 2017. In addition to the prison term, GUZZONE was sentenced today to three years of supervised release, and ordered to pay restitution of $574,005.33 in unpaid taxes.
Olson, 53, of Massapequa, New York, pled guilty on July 29, 2020, to a single count of tax evasion for the tax years 2011 through 2017.
Nigro, 59, of Middletown, New Jersey, pled guilty on October 28, 2020, to a single count of tax evasion for the tax years 2011 through 2017.
Campana, 34, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes (which he has repaid), and a fine of $10,000.
The charges against Olson and Nigro each carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of Olson or Nigro will be determined by the respective judges.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Senior Litigation Counsel of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have pled guilty in New York State Supreme Court, Indictment No. 04038-2018, to participating in the underlying bribery scheme, and are awaiting sentencing.
Foreign-Language Training Companies Admit to Participating in Conspiracy to Defraud the United StatesRead the Press Release
Two providers of foreign-language services, Comprehensive Language Center Inc. (CLCI), based in the Washington, D.C., area, and Berlitz Languages Inc. (Berlitz), based in New Jersey, were charged with participating in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a multi-million dollar foreign-language training contract issued by the National Security Agency (NSA) in 2017, the Department of Justice announced today.
“These charges reaffirm the Antitrust Division’s commitment to combating anticompetitive conduct that victimizes government agencies,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The actions of these companies corrupted the competitive bidding process put into place by the NSA for vital language training services.”
“The result of today’s announcement demonstrates the FBI’s enduring commitment to vigorously address allegations of all types of corruption that may obstruct or hinder the right to fair competition in the marketplace,” said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office.
According to the one-count felony charges filed today in the U.S. District Court for the District of New Jersey, Berlitz and CLCI participated in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a contract to provide foreign-language training services to the NSA. According to court documents, as part of the conspiracy, Berlitz and CLCI facilitated the submission of false and misleading bid information to the NSA. As a result, competition was suppressed among legitimately qualified bidders for the contract, obstructing, by dishonest means, the government’s ability to benefit from a competitive bidding process. The charged conspiracy began as early as March 2017 and continued until as late as December 2017.
The Antitrust Division also announced deferred prosecution agreements resolving the charges against Berlitz and CLCI. Under the agreements, the companies admitted to participating in the charged conspiracy, agreed to cooperate fully with any related criminal investigation and prosecution, and agreed to maintain a compliance and ethics program designed to prevent and detect violations such as the one charged. Pursuant to the agreements, Berlitz also agreed to pay a $147,000 criminal penalty and CLCI agreed to pay a $140,000 criminal penalty, and both companies agreed that they were jointly and severally liable to pay $56,984 in victim compensation to the NSA.
Berlitz and CLCI are each charged with a violation of 18 U.S.C. § 371, which carries a maximum penalty of a $500,000 fine for companies.
The charges are the result of a federal antitrust investigation into fraud and anticompetitive conduct related to foreign-language training contracts being conducted by the Antitrust Division’s New York Office, with the assistance of the FBI’s Newark, New Jersey, Field Office and the NSA Office of the Inspector General. Anyone with information in connection with this investigation should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Flemingsburg Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky.- A Flemingsburg, Ky., man, Wesley A. Miles, 28, pleaded guilty on Tuesday, before Chief U.S. District Judge Danny Reeves, to illegal possession of a firearm by a convicted felon.
According to his plea agreement, on June 1, 2018, Miles was involved in an altercation at a restaurant in Paris, Ky. Miles admitted that, during the altercation, he exited the restaurant and retrieved a firearm from his vehicle. Prior to leaving the scene, Miles fired a single shot in the air., Miles then fled the scene and disposed of the firearm by throwing it out of his vehicle’s window. Miles admitted that, at the time, he had been convicted of a crime and was prohibited from possessing a firearm.
Miles was indicted in June 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Myron Thomas, Paris Police Department, jointly announced the guilty plea.
The investigation was conducted by ATF and the Paris Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
Miles is scheduled to be sentenced on April 26, 2021. He faces up to 10 years in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian
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Environment and Natural Resources Division Distributes Memorandum Summarizing Enforcement Policies and PrioritiesRead the Press Release
On Friday, the Environment and Natural Resources Division publicly distributed a memorandum summarizing important principles and priorities for environmental enforcement. The memorandum, issued Jan. 14 by outgoing Assistant Attorney General Jeffrey Bossert Clark, emphasizes that robust enforcement of our nation's environmental laws remains one of the division’s highest priorities. It emphasizes that, when engaged in criminal and civil enforcement, it is important that the division continue to enhance the fair and impartial application of the law.
The memorandum collects and reflects recent policies and guidance within the division, from around the Department of Justice, and in orders from the President for the continued just implementation of these responsibilities and for ensuring due process to the citizens of the United States who must have fair notice of the laws they are expected to obey. It articulates several key enforcement priorities that the division has pursued in recent years, including a focus on clean air, clean water, and clean land; a commitment to fighting fraud and protecting taxpayer money; and an emphasis on protecting America’s workers and infrastructure.
The memorandum — along with three other new memoranda regarding (1) the proper scope of equitable mitigation, (2) new restrictions on the use of Supplemental Environmental Projects, and (3) a discussion of additional recommendations on the use of enforcement discretion — are available on the division’s webpage: https://www.justice.gov/enrd/selected-documents.
Elkhart, Indiana Man Sentenced to 41 Months in PrisonRead the Press Release
SOUTH BEND –Joshua Ray, 29, of Elkhart, Indiana was sentenced, late last week, by United States District Court Judge Jon E. DeGuilio upon his plea of guilty to possession of machineguns, announced Acting U.S. Attorney Bell.
Ray was sentenced to 41 months in prison and 2 years of supervised release.
According to documents filed in this case, Mr. Ray pleaded guilty to possessing machineguns, specifically auto switch (sear) devices that could convert a semi-automatic pistol into a fully automatic weapon. In May of 2019, law enforcement intercepted a package bound for Mr. Ray that contained 40 auto switch devices. Later that month, law enforcement found four auto switch devices at his home along with three rifles, a shotgun, and two handguns.
This case was investigated by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was handled by Assistant U.S. Attorney Kimberly Schultz.
East Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIONTE WILSON, 25, of East Hartford, pleaded guilty today to unlawful possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, after a review of videos on social media websites identified Wilson as being in possession of several different firearms, members of the FBI’s Northern Connecticut Gang Task Force conducted multiple controlled purchases of marijuana from Wilson. On August 10, 2020, Wilson was arrested after he displayed a Taurus .380 caliber handgun during a controlled marijuana purchase. A subsequent search of Wilson’s residence revealed a loaded .380 caliber Taurus gun magazine and approximately 100 rounds of .22 caliber long rifle hollow point bullets.
Wilson’s criminal history includes state convictions for narcotics and firearm offenses. 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.
Wilson has been detained since his federal arrest on September 9, 2020. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 14, 2021, at which time he faces a maximum term of imprisonment of 10 years.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through 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.
EDVA and FBI Affirm Commitment to Ensuring Peaceful InaugurationRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI affirmed their commitment today to holding accountable anyone who, in connection with tomorrow’s presidential inauguration, commits acts of violence or otherwise violates federal law in the Eastern District of Virginia, including at the Virginia State Capitol in Richmond.
“While the First Amendment protects the right of individuals to assemble peaceably, it does not provide safe harbor to those who engage in repugnant and destructive behavior to violently attack our Nation’s democracy,” said Raj Parekh, Acting United States Attorney for the Eastern District of Virginia. “Our office—in partnership with federal, state, and local law enforcement—will thoroughly investigate and prosecute those who commit violence, destroy property, or threaten others in violation of federal law. For anyone who is contemplating traveling from EDVA to D.C. to engage in criminal acts during tomorrow’s inauguration events, know that we stand united and will assist our counterparts in the District of Columbia to ensure a peaceful inauguration. Likewise, for those considering traveling to the Virginia State Capitol to engage in criminal activity, EDVA, the FBI, and our law enforcement partners will act quickly to seek justice and hold you accountable.”
The FBI is the lead federal agency for intelligence analysis and dissemination to law enforcement partners, counterterrorism, and crisis management for the inauguration. “FBI agents, analysts, and professional staff are working around the clock with our partners to identify, investigate, and respond to any threats that might arise in the National Capital Region,” said Steven M. D’Antuono, Assistant Director in Charge of the Washington Field Office. “While the FBI respects the rights of individuals to peacefully exercise their First Amendment rights, those who wish to use this freedom to instigate violent and destructive behavior will not be tolerated and will be held to account for their unlawful actions.”
If you have any information, tips, or digital media depicting rioting or violence at the U.S. Capitol Building or its surrounding area, please visit fbi.gov/USCapitol or call 1-800-CALL-FBI. If you have any information about unlawful activity in or around Virginia’s State Capitol Building, please contact FBI’s Richmond Field Office at 804-261-1161.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
DuPont and former employee charged in 2014 fatal La Porte incidentRead the Press Release
HOUSTON – A Houston federal grand jury has indicted E. I. du Pont de Nemours and Company Inc. (DuPont) and a former employee for knowingly violating requirements of federal safety regulations and negligently releasing an extremely hazardous substance, U.S. Attorney Ryan Patrick announced today.
Kenneth Sandel, 49, Friendswood, along with representatives of DuPont are set to appear today before U.S. Magistrate Judge Frances Stacy at 10 a.m.
The indictment stems from the Nov. 15, 2014, incident at the LaPorte plant when 24,000 pounds of methyl mercaptan - a highly toxic, flammable gas - were released. The incident resulted in the deaths of four plant employees and injured others, according to the charges.
According to the charges, returned Jan. 7, DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world, including the La Porte facility. Sandel ran the Insecticide Business Unit (IBU) at that location and was responsible for ensuring IBU employees followed applicable federal safety regulations.
The IBU has since been demolished, but at the time, allegedly produced pesticides called Lannate and Vydate, among other products. The indictment alleges Lannate and Vydate generated annual net income for DuPont of approximately $123 million during 2014.
The safety regulations are part of the Environmental Protection Agency’s (EPA) Risk Management Plan, created following 1990 amendments to the Clean Air Act. Congress had directed the EPA to create reasonable regulations to prevent the release of certain hazardous chemicals after such events had resulted in the death or injury to many people in the United States and abroad.
The indictment alleges DuPont and Sandel knowingly failed to implement certain DuPont procedures federal regulations required. Specifically, Sandel and DuPont engineers allegedly devised a plan to divert a large volume of methyl mercaptan gas into a waste gas pipe system during the day before and night of the fatal incident. However, Sandel failed to implement necessary procedures to evaluate safety aspects of that plan and to prohibit workers from opening the pipe to the atmosphere, according to the charges.
If convicted of the federal safety regulations violations, Sandel faces up to five years in federal prison while the negligence charge could result in an additional one-year term. Both convictions also carry a potential fine of $250,000.
The company itself faces potential fines of the greater of $500,000 or twice the gross gain derived from the offense.
The EPA’s Criminal Investigation Division conducted the investigation with assistance from the Texas Environmental Enforcement Task Force. The indictment is part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. Assistant U.S. Attorneys John R. Lewis and Belinda Beek and Special Assistant U.S. Attorney Kristina Gonzales are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Developer Agrees to Mitigate Impacts to Streams and WetlandsRead the Press Release
A developer and his companies have agreed to effectuate $900,000 in compensatory mitigation, preserve undisturbed riparian areas, conduct erosion-control work on streams, and be subject to a prohibitory injunction to resolve alleged violations of the Clean Water Act (CWA) on property north of Houston, Texas, the Justice Department announced today.
“Today’s substantial settlement involving the unpermitted filling of streams and wetlands, if approved by the court, will draw to a close this long-running Clean Water Act litigation,” said Eric Grant, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s agreement serves the public interest in enforcement of the Clean Water Act and provides long-overdue mitigation for these alleged violations.”
The case stems from activities Thomas Lipar conducted to create the Benders Landing Estates housing development on property containing streams and wetlands that feed into Spring Creek and the West Fork of the San Jacinto River, which, in turn, flow into Lake Houston.
Beginning in 2005, the defendants operated earthmoving machinery and filled substantial segments of streams and acres of abutting wetlands. Despite receiving information about the aquatic condition of the property, Lipar did not seek a CWA dredge-or-fill permit. The settlement agreement reached today secures significant mitigation for these alleged violations, while providing fairness for developers who comply with the applicable laws.
The case is styled United States v. Lipar, No. 4:10-cv-01904 (S.D. Tex.). The proposed consent decree, lodged in the U.S. District Court in Houston, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
Chief Financial Officer of Suburban IT Consulting Firm Charged with Embezzling More Than $1.3 Million in Company FundsRead the Press Release
CHICAGO — The former chief financial officer of a suburban IT consulting firm has been indicted on federal fraud charges for allegedly embezzling more than $1.3 million in company funds.
ANTHONY FREMAREK fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, according to an indictment unsealed Jan. 14, 2021, in U.S. District in Chicago. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses, the indictment states. The alleged fraud scheme spanned from 2013 to 2019.
The indictment charges Fremarek, 49, of Plainfield, with four counts of wire fraud and two counts of making false statements to a financial institution. Fremarek has pleaded not guilty to the charges.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each false statement count carries a maximum sentence of 30 years in federal prison, while each count of wire fraud is punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Carroll Man Sentenced to Federal Prison for Possession of a Firearm by a FelonRead the Press Release
A Carroll, Iowa man who possessed a gun after a previous attempted burglary conviction in 2019, was sentenced January 19, 2021, to more than 2 years in federal prison.
Buomkuoth Lol, age 19, from Carroll, Iowa, received the prison term after an August 24, 2020, guilty plea to possession of a firearm by a felon.
At the guilty plea, Lol admitted on May 8, 2020 he possessed a gun and .40 caliber ammunition. Lol admitted to knowing he was prohibited from possessing guns after being convicted of attempted burglary in Buena Vista County on November 5, 2019.
Lol was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lol was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
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 /media/1122011/dl?inline.
Lol is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Spirit Lake Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4052.
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Canal Winchester man sentenced to more than 16 years in prison for sexually exploiting minor femalesRead the Press Release
COLUMBUS, Ohio – Jeffrey A. Fisher, 49, of Canal Winchester, was sentenced in U.S. District Court today to 200 months in prison for sexually exploiting at least three minor females between February and May 2019.
According to court documents, Fisher met a 14-year-old girl from Michigan through an online app and solicited nude photographs from the girl.
Fisher’s plea agreement details online conversations between him and the victim in which he makes sexually-explicit demands of the victim and states, “That was a test to see if you would be obedient” and “im [sic] testing you to see if you’ll obey and be a good slave.”
During their investigation into Fisher’s conduct, law enforcement officials discovered Fisher had also victimized female minors from Columbus, Ohio and New Jersey. Forensic examinations of Fisher’s and the victim’s electronics revealed sexually explicit photographs of the victims.
At the time of his offense, Fisher was a registered sex offender as the result of a local 2012 conviction. Fisher was convicted in Franklin County Court of Common Pleas of attempted illegal use of a minor in nudity-oriented material and four counts of unlawful sexual conduct with a minor. He was sentenced to five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Heather A. Hill is representing the United States in this case.
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Buffalo Man Pleads Guilty to Gun and Drug ChargesRead 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 Ronnie Charleston, 37, Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to possessing with intent to distribute cocaine, and being a felon in possession of ammunition. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Laura A. Higgins and Richard Antoine, who are handling the case, stated that on six separate occasions between December 2019 and January 2020, the defendant purchased approximately 49 grams of cocaine from co-defendant Saan Thompson. On August 5, 2020, investigators executed a search warrant at Charleston’s Lisbon Avenue residence and seized approximately 1,500 rounds of assorted ammunition, three firearm magazines, $5,000 U.S. currency, approximately 12 grams of cocaine, and three digital scales. In 2006, the defendant was convicted in state court of Criminal Possession of a Loaded Firearm – Third Degree and is legally prohibited from possessing ammunition.
Saan Thompson was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing will be scheduled at a later date.
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Bristol Realtor Pleads Guilty to Ponzi SchemeRead the Press Release
GREENEVILLE, Tenn.– On January 19, 2021, Tammy Lynn Hawk, 47, currently of Bristol, Tennessee, entered guilty pleas to counts of wire fraud, aggravated identity theft, money laundering, and filing a false tax return in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for April 23, 2021 at 10:00 a.m., before District Judge Corker, in United States District Court at Greeneville.
Hawk faces an agreed sentence of 10 years in Federal prison, plus up to $1.25 million in fines, and supervised release of three years.
As part of the written plea agreement, Hawk waived indictment by a federal grand jury and agreed to plead guilty to an information charging her with the above-listed crimes. Hawk admitted to using her position as a realtor to swindle numerous customers who thought they were making real estate investments. In reality, Hawk was taking money from new investors to either fund her own lifestyle or to repay existing investors.
According to the plea agreement, Hawk was a licensed real estate agent. Under her scheme, she would falsely tell current and former customers about parcels of real estate that she could arrange for them to purchase and “flip” for substantial gains. She would advise customers that once they agreed to purchase a particular property, the customer would need to provide her with cash, and through a relationship she had with a Florida real estate investment company, that company would purchase the property and then convey the property to the customer. As part of her scheme, Hawk would provide phony contracts purporting to represent contracts for the purchase of properties by the Florida company. However, neither Hawk nor the Florida real estate investment company had any ownership in the properties Hawk was offering to sell. After customers provided Hawk with cash, she would use the money for her own benefit or would repay previously defrauded customers with it.
As part of her scheme, Hawk also signed at least one customer’s name to a purchase and sale agreement without the customer’s knowledge or consent. As set out in the written plea agreement, Hawk caused or intended to cause losses to 24 victims in excess of $1 million. She also failed to pay income tax on the money she was obtaining from her fraud for tax years 2015 through 2018, leaving unpaid income taxes of more than $100,000. In 2019, Hawk filed for bankruptcy, but she then failed to list her accurate income or all the people she had swindled.
The investigation was conducted by the United States Secret Service, the Internal Revenue Service, Criminal Investigations, the Bristol Police Department, and the Office of the District Attorney General for Tennessee’s Second Judicial District.
Assistant United States Attorneys Mac D. Heavener and Todd Martin represented the United States.
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Bowie County Man Charged with $5 Million COVID-Relief FraudRead the Press Release
TEXARKANA, Texas – A 32-year-old Maud, Texas man has been charged with allegedly filing bank loan applications fraudulently seeking more than $5 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Eastern District of Texas U.S. Attorney Stephen J. Cox today.
Samuel Yates was charged with two counts of wire fraud returned by a federal grand jury in Texarkana, Texas, on Jan. 14, 2021. Yates allegedly sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have over 400 employees earning wages when, in fact, no employees worked for his purported business.
According to court documents unsealed today in U.S. District Court in Texarkana, Yates allegedly made two fraudulent applications to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the PPP. In the application submitted to the first lender, Yates allegedly sought $5 million in PPP loan proceeds by fraudulently claiming to have over 400 employees with an average monthly payroll of more than $2 million. In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator on the internet. He also submitted forged tax documents with each application.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was investigated by the SBA Office of Inspector General, and U.S. Postal Inspection Service. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Criminal Chief Frank Coan and Assistant U.S. Attorney Jonathan R. Hornok for the Eastern District of Texas are prosecuting the case.
Boston Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Boston man was sentenced today for being a felon in possession of a loaded semi-automatic pistol.
Kyvon Ross, a/k/a Ky-von Ross, 22, was sentenced by U.S. District Court Judge Allison D. Burroughs to 23 months in prison and three years of supervised release. In September 2020, Ross pleaded guilty to being a felon in possession of a firearm and ammunition.
Ross possessed a Beretta .380 caliber semi-automatic pistol and 10 rounds of ammunition on May 31, 2019, in Boston. Ross was subsequently arrested and has been in custody since. Ross is prohibited from possessing a firearm or ammunition due to a prior felony conviction.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Amarillo Meth Trafficker Sentenced to 20 YearsRead the Press Release
An Amarillo methamphetamine trafficker was sentenced to 20 years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Bennie Jerome Baca, 34, pleaded guilty in August 2020 to distribution of methamphetamine. Last Thursday, he was sentenced before U.S. District Judge Matthew J. Kacsmaryk.
“Mr. Baca and his co-conspirators ran a multi-state drug trafficking conspiracy that pumped large quantities of meth into communities all across Texas,” said Acting U.S. Attorney Prerak Shah. “This sentence demonstrates that the Department of Justice will use every weapon in its arsenal to stop meth from reaching our neighborhoods and harming our citizens.”
“Drug trafficking and the illegal activity associated with it continues to threaten the safety of the general public throughout our communities,” said Christopher Miller, Deputy Special Agent in Charge HSI Dallas. “One of our agency’s main priorities is to bring every resource we have at our disposal to keep individuals and criminal organizations that hinder public safety from profiting from its distribution. We remain committed to working with our state and federal law enforcement partners to keep illegal substances out of our communities and investigating those responsible.”
On October 8, 2019, a New Mexico State Police officer made a traffic stop of a car-hauler near Albuquerque, New Mexico. During the traffic stop, the police officer requested permission to search one of the cars on the hauler that lacked proper state registration. Law enforcement located approximately 21 bundles of methamphetamine concealed inside the vehicle. HSI agents determined that the driver of the car-hauler had no knowledge of the drugs and agreed to assist law enforcement.
On October 9, 2019, the driver delivered the vehicle to its original destination in Amarillo, Texas. The driver called a phone number of the intended recipient of the vehicle, later identified as Mr. Baca, and arranged to meet him at a truck stop to deliver the vehicle.
Mr. Baca and a co-conspirator took possession of the vehicle and drove to a residence in Amarillo. Shortly thereafter, Mr. Baca was arrested, and law enforcement seized $3,050 in his possession. Mr. Baca admitted to knowing that the vehicle was loaded with methamphetamine and that a co-conspirator was going to distribute it.
Rusty Dean Campbell was sentenced to more than 17 years in federal prison in June 2020 and Sergio Chris Reyes was sentenced to 20 years in federal prison in December 2020 for their roles in the methamphetamine trafficking conspiracy.
Homeland Security Investigations, Drug Enforcement Administration, New Mexico State Police, and Amarillo Police Department conducted the investigation. Assistant U.S. Attorney Joshua Frausto prosecuted this case.
Albuquerque man sentenced to seven years in federal prison for carjackingRead the Press Release
ALBUQUERQUE, N.M. – Scott Gibbs, 21, of Albuquerque was sentenced in federal court on Jan. 12 to seven years in prison for three counts of carjacking and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
According to the plea agreement, Gibbs committed three armed car jackings in Albuquerque. On Oct. 17, 2018, Gibbs and an accomplice approached two victims as they were gathering their belongings from their vehicle and carjacked them at gunpoint. About 45 minutes later, Gibbs and two accomplices approached another victim and stole the victim’s vehicle at gun point, punching the victim and stealing his keys, wallet, and phone in the process. An hour later, Gibbs and his two accomplices carjacked a third victim at gunpoint as he was getting out of his vehicle. Law enforcement apprehended Gibbs and his two accomplices soon after and located the three firearms used in the car jackings.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department investigated the case. Special Assistant U.S. Attorney Timothy D. Trembley prosecuted the case.
Albuquerque man charged in armed robbery of letter carriers, bank fraudRead the Press Release
ALBUQUERQUE, N.M. – Cisco Casaus-Alires, 20, of Albuquerque, made his initial appearance today in federal court where he was charged with robbery of mail, mail theft, bank fraud, and brandishing a firearm during and in relation to a crime of violence, stemming from three armed robberies of USPS letter carriers in Albuquerque. Casaus-Alires will remain detained pending a detention hearing scheduled for Jan. 21.
According to a criminal complaint, on Nov. 7, 2020, Casaus-Alires allegedly robbed a letter carrier at gunpoint in southeast Albuquerque, demanding the letter carrier’s cell phone, USPS keys and mail. On Dec. 26, 2020, in southwest Albuquerque, Casaus-Alires allegedly robbed another letter carrier at gunpoint. Casaus-Alires allegedly demanded the letter carrier’s wallet, phone and USPS keys, and then demanded that the letter carrier load parcels into Casaus-Alires’ vehicle.
On Dec. 28, 2020, in south Albuquerque, Casaus-Alires allegedly robbed a third letter carrier at gunpoint, demanding the letter carrier’s wallet, phone and USPS keys. As Casaus-Alires allegedly took mail and parcels from the USPS vehicle, he asked the letter carrier where “the good stuff” is delivered, then fled the area. The following day, Casaus-Alires allegedly used the letter carrier’s credit card, which had been in his wallet when it was stolen, to make two purchases.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Casaus-Alires faces a minimum of 21 years for his use of a firearm to commit the three robberies and up to 30 years in prison for the other crimes.
The United States Postal Inspection Service investigated this case with assistance from the United States Marshals Service. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Agricultural Developer Agrees to Pay Clean Water Act Fines, Mitigate Impacts to Sensitive Streams and WetlandsRead the Press Release
A California agricultural developer has agreed to pay a civil penalty, preserve streams and wetlands, effect mitigation, and be subject to a prohibitory injunction to resolve alleged violations of the Clean Water Act (CWA) on property near the Sacramento River located in Tehama County, California, the Justice Department announced today.
Roger J. LaPant Jr. purchased the property in this case in 2011 and sold it in 2012 to Duarte Nursery Inc. which, in turn, sold it that same year to Goose Pond Ag Inc. Goose Pond’s activities on the property were the subject of a settlement announced by the Justice Department in September 2018 and approved by a federal judge in June 2019. Duarte’s activities on an adjoining site were the subject of a settlement agreement announced by the Justice Department in August 2017 and approved by a federal judge in December 2017.
“Today’s settlement involving the unpermitted filling of streams and wetlands, if approved by the court, will conclude the long-running Clean Water Act litigation involving these properties near the Sacramento River in Tehama County,” said Jonathan D. Brightbill, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “None of these defendants had traditionally farmed these lands, but instead attempted to profit commercially by acquiring and converting them to new uses in violation of the law. Like the Goose Pond settlement and decree entered in 2019 and the Duarte settlement and decree entered in 2017, today’s agreement serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is pleased this longstanding enforcement action has been brought to a close,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “Unlike most farmers in California’s Central Valley, Mr. LaPant conducted activities that were not lawful under the Clean Water Act. Had he heeded the words of his consultant or discussed his plans with my office in advance, the enforcement action could have been avoided. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on jurisdiction, permit requirements, and any other aspects of the Program.”
LaPant has agreed to pay $250,000 in civil penalties; purchase $100,000 worth of compensatory mitigation credits; dedicate another 10 credits at a vernal pool conservation bank; effect long-term preservation streams, wetlands, and buffer areas on two sites with a total acreage of over 400 acres; and be subject to a prohibition on certain new activities in waters or wetlands absent pre-clearance from the U.S. Army Corps of Engineers. In total, the approximate cost of LaPant’s obligations under the settlement is $1.2 million.
This case stems from agricultural development activities LaPant conducted during his brief ownership of the property, which prior to his ownership had laid fallow and unfarmed for more than 20 years. LaPant bought the 1,500-acre property for $1.9 million and sold it less than a year later for $5.6 million. In between those transactions, evidence shows that LaPant operated earthmoving equipment through at least 900 acres of the property, including directly through streams and wetlands. The machinery included the dragging of metal shanks through the ground to break up or pierce highly compacted, impermeable or slowly permeable surface layers, or other similar kinds of restrictive soil layers. LaPant’s conduct in this case, part of an effort to convert the property to orchard use, contributed to the destruction or significant degradation of streams and wetlands at the site.
Even before LaPant purchased the site, he received information that alerted him to the presence of federally protected streams and wetlands on the property. Despite that information, he conducted earthmoving activities in streams and wetlands without a CWA dredge-or-fill permit. The settlement agreement reached today secures a significant penalty and mitigation for these violations, while providing fairness for agricultural developers who comply with the applicable laws.
The case is styled United States v. LaPant, No. 2:16-cv-01498-KJM-DB (E.D. Cal.). The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
Aberdeen Man Sentenced on Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Aberdeen, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on January 14, 2021, by U.S. Magistrate Judge William D. Gerdes.
Johnathan Bravo Barrera, age 26, was sentenced to one year of probation, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Bravo Barrera was indicted by a federal grand jury on February 11, 2020. He pled guilty on October 26, 2021.
The conviction stemmed from an incident that occurred on October 23, 2019, in Corson County, South Dakota. On that date, Dewey County and McPherson County Sheriff’s Department deputies initiated a traffic stop of Barrera’s vehicle, after observing him drive over the fog line several times. The deputies’ observations during the traffic stop led them to believe Barrera was engaged in illegal activities. A drug detection canine was deployed around the vehicle and alerted to the presence of drugs inside the vehicle. A search of the vehicle uncovered 3.5 pounds of marijuana, a Schedule I controlled substance, that Barrera knowingly and intentionally possessed.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Corson County and Dewey County Sheriff’s Offices. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
18 January 2021
Statement from U.S. Attorney Tim GarrisonRead the Press Release
Federal law enforcement authorities have publicly expressed concern about the potential for violent demonstrations in all 50 states and the District of Columbia leading up to Inauguration Day on Jan. 20.
My concern, as the chief representative of the U.S. Department of Justice in the Western District of Missouri, is not with peaceful rallies or responsible public expressions of opinion. The U.S. Constitution guarantees all citizens the right “peaceably to assemble, and to petition the Government for a redress of grievances.” My determination to protect our Constitutional rights, however, is matched by my utmost respect for law and order.
I stand with our law enforcement partners, who will take all necessary measures to protect public safety and uphold the rule of law. We will not tolerate violence, nor will we overlook criminal behavior. Those who cross the line from exercising their rights to violating the law will be held accountable for their actions and prosecuted accordingly. Political disagreement is not a license to engage in domestic terrorism, to commit acts of violence, to harm or threaten others, to illegally trespass, or to break the law in any way.
The genius of American democracy lies in the ability of its citizens to disagree with one another without resorting to violence, and to respect the peaceful transition of power following each election. We must be vigilant against those who undermine our democratic ideals by engaging in criminal violence.
We need the public’s help to keep our communities safe and protect the First Amendment rights of all Missourians. Each citizen has a role to play. Remember to stay vigilant and report suspicious activity to local authorities. If you see something, say something. Submit any information you have about real or potential threats of violence at any upcoming demonstrations or events by calling 1-800-CALL-FBI or online at http://tips.fbi.gov.
U.S. Attorney Tim Garrison
17 January 2021
New Mexico County Commissioner Charged for Breaching U.S. CapitolRead the Press Release
WASHINGTON— A New Mexico County commissioner was charged today in the U.S. District Court for the District of Columbia for breaching the U.S. Capitol grounds on Jan. 6, 2021.
Couy Griffin, of New Mexico, was arrested today in Washington, D.C., and charged by criminal complaint with one count of knowingly entering or remaining in any restricted building or grounds without lawful entry.
As alleged in the charging documents, on Jan. 9, 2021, law enforcement received a tip that Griffin, an Otero County, New Mexico, Commissioner was present at the U.S. Capitol on Jan. 6, 2021, and had posted videos to his Facebook page indicating that he intended to return to Washington, D.C., on Jan. 20, 2021, and “plant our flag” on House Speaker Nancy Pelosi’s desk.
An investigation into Griffin revealed that he is the founder of an organization called “Cowboys for Trump,” and that following the incident at the U.S. Capitol, Griffin posted a video to the Cowboys for Trump Facebook page in which he stated that he “climbed up on the top of the Capitol building and . . . had a first row seat.” In that same video, now removed, he states:
“You want to say that that was a mob? You want to say that was violence? No sir. No Ma’am. No we could have a 2nd Amendment rally on those same steps that we had that rally yesterday. You know, and if we do, then it’s gonna be a sad day, because there’s gonna be blood running out of that building. But at the end of the day, you mark my word, we will plant our flag on the desk of Nancy Pelosi and Chuck Schumer and Donald J. Trump if it boils down to it.”
On Jan. 14, 2021, Griffin spoke at an Otero County, New Mexico, council meeting about his experience at the Capitol and his plans to return to Washington, D.C., to protest President-Elect Biden’s Inauguration on Jan. 20, 2021. It is alleged that Griffin stated that he intended to bring his firearms with him when he traveled to Washington, D.C.
The case is being prosecuted by the Assistant U.S. Attorneys Janani Iyengar and Jason Feldman of the District of Columbia United States Attorney’s Office, and Trial Attorney George Kraehe of the National Security Division of the Department of Justice. The case is being investigated by the FBI’s Washington Field Office, and the U.S. Capitol Police Department.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Man Arrested and Charged in Federal Court for Actions at the U.S. CapitolRead the Press Release
WASHINGTON, D.C. – A Kentucky man was arrested and charged yesterday in connection with the riots at the U.S. Capitol last week during which he joined a crowd of individuals who unlawfully entered the U.S. Capitol and disrupted the conduct of business by the United States House of Representatives and the United States Senate.
Chad Barrett Jones, 42, of Coxs Creek, Kentucky, was charged by criminal complaint with one count of assault on a federal officer, in violation of Title 18, United States Code, Section 111(a) and (b); one count of certain acts during a civil disorder, in violation of Title 18, United States Code, Section 231(a)(3); one count of destruction of government property over $1,000, in violation of Title 18, United States Code, Section 1361; one count of obstruction of an official proceeding, in violation of Title 18, United States Code, Section 1521(c)(2); one count of unlawful entry on restricted building or grounds, in violation of Title 18, United States Code, Section 1752(a) and (b); and one count of violent entry and disorderly conduct on Capitol grounds, in violation of Title 40, United States Code, Section 5104(e)(2). Jones was arrested in Louisville. His initial appearance before Magistrate Judge Colin H. Lindsay of the United States District Court for the Western District of Kentucky is scheduled for January 19.
The affidavit in support of criminal complaint alleges that video footage from inside the events at the U.S. Capitol on January 6, 2021, shows Jones in a red hooded jacket and gray skullcap among an aggressive crowd trying to breach a barricaded door to the Speaker’s Lobby, a hallway that connects to the House of Representatives chambers. Members of the crowd were shouting and gesticulating at the Capitol Police officers guarding the door. Seconds after the officers began moving toward the adjacent wall as other officers in tactical gear arrived, Jones forcefully struck the door’s glass panels at least 10 times with a long, wood flagpole, the affidavit alleges. The affidavit also alleges that chants of “Break it down!” could be heard, and that a U.S. Capitol Police officer inside the Speakers’ Lobby, facing the door with a gun raised, can be seen at the side of the video in the close vicinity of the doorway.
The Superintendent of the Capitol has represented that the repair cost of the damaged glass will exceed $1,000. Federal authorities were able to identify Jones as the man in the red hooded jacket and gray skullcap after receiving a tip on January 8.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
The case is being prosecuted by the U.S Attorney’s Office for the District of Columbia and the Counterterrorism Section of the Department of Justice’s National Security Division, with assistance from the U.S. Attorney’s Office for the Western District of Kentucky. The case is being investigated by the FBI’s Louisville Field Office and Washington Field Office, with assistance from the U.S. Capitol Police.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
Indonesian Company Admits to Deceiving U.S. Banks in Order to Trade with North Korea, Agrees to Pay A Fine of More Than $1.5 MillionRead the Press Release
A global supplier of cigarette paper products, PT Bukit Muria Jaya (“BMJ”), has agreed to pay a fine of $1,561,570 and enter into a deferred prosecution agreement with the Justice Department for conspiring to commit bank fraud in connection with the shipment of products to North Korean customers. BMJ, which is incorporated in Indonesia, has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).
In entering the deferred prosecution agreement, BMJ admitted and accepted responsibility for its criminal conduct and agreed to pay a fine commensurate with the offense. BMJ agreed to implement a compliance program designed to prevent and detect violations of U.S. sanctions laws and regulations and to regularly report to the Justice Department on the implementation of that program. BMJ also committed to report violations of relevant U.S. laws to the Justice Department and to cooperate in the investigation of such offenses.
“Through a sophisticated and illegal multinational scheme, BMJ intentionally obfuscated the true nature of its transactions in order to sell its wares to North Korea,” said Assistant Attorney General for National Security John Demers. “BMJ duped U.S. banks into processing payments in violation of our sanctions on North Korea. Strict enforcement of the sanctions regime pressures North Korea to move away from engaging in dangerous and belligerent activities, including weapons of mass destruction proliferation. The Department is committed to taking such enforcement actions in the hope that one day North Korea will reintegrate itself into the community of nations.”
“BMJ intentionally deceived U.S. banks and undermined the integrity of our financial system in order to continue doing business with North Korea,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “We want to communicate to all those persons and businesses who are contemplating engaging in similar schemes to violate U.S. sanctions on North Korea that using front companies and fraudulent invoices will not protect you. We will find you and prosecute you.”
"Sanctions against North Korea are designed to protect the international community,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “This company used smoke and mirrors to try to hide its illegal activity, but the FBI and its partners saw through the smokescreen and helped bring the defendant to justice."
Pursuant to the agreed statement of facts adopted in the deferred prosecution agreement, BMJ admitted in part that it sold products to two North Korean companies as well as a Chinese trading company while knowing that those products were destined for North Korea. At the time, U.S. sanctions on North Korea prevented, among other things, correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. After learning that one of its North Korean customers was having difficulty executing payments to BMJ, BMJ personnel agreed to accept payments from third parties that were otherwise unrelated to the transactions. Accepting these third-party payments evaded the sanctions monitoring and compliance systems of U.S. banks, inducing them into executing prohibited transactions.
Assuming BMJ’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of 18 months, after which time, the government would seek to dismiss the charges.
The FBI is leading the investigation. Assistant U.S. Attorney Michael P. Grady from the U.S. Attorney's Office for the District of Columbia and Trial Attorney David C. Recker of the National Security Division's Counterintelligence & Export Control Section are prosecuting the case, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. The Department of Justice would also like to thank the U.S. Indo-Pacific Command for providing analytical support and the FBI for their assistance during the investigation.
15 January 2021
Wright County Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while illegally possessing a firearm was sentenced January 14, 2021, to more than 12 years in federal prison.
Bobby Hernandez, 50, from Eagle Grove, Iowa, received the prison term after an August 27, 2020, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm by a prohibited person. Hernandez was previously convicted of possession of a firearm by a felon, in the United States District Court for the Northern District of Iowa, on or about September 29, 2009.
Evidence at the plea and sentencing hearings showed that from about 2017 through about October 2019, Hernandez distributed at least 750 grams of methamphetamine mixture in the Eagle Grove/Wright County, Iowa areas. On April 29, 2019, Hernandez was arrested in Webster County, Iowa, pursuant to an outstanding arrest warrant for a state probation violation. At the time of this arrest, officers seized over 7 grams of methamphetamine. Hernandez also distributed over 6 grams of methamphetamine on two occasions in June and August of 2019 to individuals cooperating with law enforcement. On August 15, 2019, Hernandez was arrested in Fort Dodge, Iowa for an outstanding warrant for failure to appear related to a Wright County, Iowa criminal case. During the arrest, officers seized a bag under the car seat where Hernandez had been sitting, which contained small quantities of methamphetamine and heroin, and a .22 caliber semi-automatic pistol with a homemade silencer affixed to the barrel.
Hernandez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hernandez was sentenced to 152 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Wright County Sheriff’s Office, Eagle Grove Police Department, Fort Dodge Police Department, and Iowa DCI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3049. Follow us on Twitter @USAO_NDIA.
Worcester Man Arrested for Purchasing MBTA Passes Using Others’ IdentitiesRead the Press Release
BOSTON – A Worcester man was arrested on Wednesday, Jan. 13, 2021 on charges of wire fraud and aggravated identity theft in connection with using stolen identities to fraudulently purchase MBTA passes.
Kokou Kuakumensah, 31, was charged with four counts of wire fraud and four counts of aggravated identity theft.
According to charging documents, between approximately January 2019 and March 2020, Kuakumensah used other individuals’ credit card accounts to fraudulently purchase MBTA commuter rail passes. Kuakumensah then re-sold these passes for less than their face value, including advertising the passes on Craiglist.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations; and Chief Kenneth Green of the MBTA Transit Police made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Winneconne Man Indicted for Cyberstalking and Possession of AmmunitionRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, a federal grand jury had returned a two-count indictment against Jon E. Janikowski (age: 36) of the Winneconne, Wisconsin. The indictment alleges that Janikowski engaged in cyberstalking and illegally possessed ammunition.
The cyberstalking charge alleges that Janikowski intended to “harass and intimidate another person” using a computer or “electronic communication system of interstate commerce” and that he engaged in a “course of conduct that placed that person in reasonable fear of death and serious bodily injury,” contrary to Title 18, United States Code, Section 2261A(2)(A). The indictment also alleges that Janikowski, a felon, possessed ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted of the cyberstalking charge, Janikowski faces up to five years’ imprisonment and a $250,000 fine. If convicted of the ammunition charge, he faces up to ten years’ imprisonment and a $250,000 fine.
Janikowski was arraigned in Federal court in Green Bay on January 15, 2021, at which time the indictment was unsealed. Janikowski will be detained pending trial at the Winnebago County Jail.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
This case was investigated by the Winneconne and Oshkosh police departments. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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Public Information Officer Kenneth Gales
414-297-1700
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Wilmington man charged with online threats, witness tampering regarding his participation in protests at U.S. CapitolRead the Press Release
CINCINNATI – A Wilmington man has been charged federally with making interstate threats and threatening a witness. The crimes arise from the man’s alleged communications online related to his participation in the Jan. 6, 2021 riots at the United States Capitol.
Justin Stoll, 40, was arrested this morning by the FBI’s Joint Terrorism Task Force and appeared in U.S. District Court in Cincinnati, at which time his case was unsealed.
According to an affidavit written in support of the criminal complaint pending against Stoll, he used the username “Th3RealHuckleberry” on the app Clapper and on YouTube to post videos related to his participation in the Capitol protests.
In one such video, it is alleged Stoll asks his viewers if he should wear a black United States flag shirt to D.C., stating, “Basically, if you are an enemy combatant, you will be shot on sight…I know this is the end-all flag…”
Stoll also allegedly posted videos of himself outside the Capitol with other protesters in which he said, among other things, “D.C.’s a war zone!...You ain’t got enough cops, baby! We are at war at the Capitol…. We have taken the Capitol. This is our country.”
According to the court document, Stoll received comments from concerned citizens in response to his YouTube videos, including from one user who said (s)he had saved Stoll’s video. Stoll responded via another video, in which he said, in part:
Well, that shows your f------ ignorance because, clearly, the capitol building is owned by the people, so again, nothing will happen. Secondly, I never admitted I went into it, did I? Go watch the video again. Daddy’s not stupid. [Wink.] Third, if you ever in your f------ existence did something to jeopardize taking me away from my family, you will absolutely meet your maker. You can play that for the D.A. in court, I don’t care. If you ever jeopardize me, from being with my family, you will absolutely meet your mother f------ maker, and I will be the one to arrange the meeting.
Interstate communication of a threat is a federal crime punishable by up to five years in prison. Tampering with a witness through intimidation carries a potential maximum sentence of 20 years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant Deputy Criminal Chief Timothy S. Mangan and Assistant United States Attorney Julie D. Garcia are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Uxbridge Doctor Sentenced to Seven Years in Prison for Conspiring to Distribute over 3.5 Kilograms of AmphetaminesRead the Press Release
BOSTON – An Uxbridge doctor was sentenced on Wednesday, Jan. 13, 2020 in connection with her role in a scheme to prescribe Adderall to individuals without a legitimate medical purpose.
Leslie Caraceni M.D., 58, was sentenced by U.S. District Court Judge Timothy S. Hillman to seven years in prison and three years of supervised release. In February 2019, Caraceni pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall in August 2020.
Caraceni was indicted in November 2018 along with Rene Ruliera, 52, of Southborough, who pleaded guilty in August 2019 and is scheduled to be sentenced on Feb. 24, 2021. Co-conspirator Meghan Giacomuzzi, 37, of Whitinsville, pleaded guilty in February 2019 and is scheduled to be sentenced on April 15, 2021.
Between March 2016 and February 2018, Caraceni, Ruliera and Giacomuzzi conspired to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired both Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit, and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between the defendants documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence, and the volume of proceeds realized as result of their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts alone based on Caraceni’s prescriptions.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Update on law enforcement search at 2448 Sullivant AvenueRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers confirmed today that human remains from two individuals were located during the execution of a search warrant on Jan. 14 at 2448 Sullivant Avenue.
Authorities are investigating the possibility that the bodies may be connected to the Aug. 26, 2018 missing persons report of Henry Clay Watson and Tera Lynn Pennington. The families of the missing persons have been notified and authorities are working to verify their identities.
The bodies were discovered partially dismembered, buried in the basement and covered in concrete.
This is a joint investigation with Homeland Security Investigations (HSI), Franklin County Sheriff’s Office, Columbus Division of Police, Ohio Bureau of Criminal Investigations (BCI), Franklin County Coroner’s Office and the Columbus Fire Department.
We are unable to provide any further details about this ongoing investigation.
Law enforcement authorities ask that anyone with related information call the HSI tip line at (866) DHS-2423.
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U.S. Attorney Trent Shores Announces the Hiring of Retired Tulsa Police Lieutenant Chris Witt as Law Enforcement CoordinatorRead the Press Release
United States Attorney Trent Shores today announced the hiring of retired Tulsa Police Lieutenant Chris Witt as Law Enforcement Coordinator (LEC) for the U.S. Attorney’s Office. In his position, Witt will act as a liaison between the U.S. Attorney’s Office and local, state, tribal and federal law enforcement throughout the Northern District of Oklahoma. The LEC further builds relationships within the community and promotes communication, engagement, and understanding of Department of Justice initiatives, law enforcement considerations, and crime prevention opportunities.
“Now more than ever, strong partnerships between the community and law enforcement are crucial to ensuring justice is experienced by every neighborhood in every community,” said U.S. Attorney Trent Shores. “I am proud to bring to my team Chris Witt, an experienced law enforcement officer and United States Marine Corps veteran. Chris understands the meaning of service to country and community, and that makes him a great fit as our Law Enforcement Coordinator. In his capacity as Coordinator, Chris will actively engage with the community and law enforcement in order to build partnerships, trust, and understanding. He will also help enhance communication and coordination between my office and all our law enforcement partners.”
Witt comes to the U.S. Attorney’s Office with 38 years of law enforcement experience. Witt spent his first four years at the Bartlesville Police Department then joined the Tulsa Police Department where he retired Jan. 3, 2021. He most recently led the Special Events Unit in charge of security, logistics, and traffic control during parades, marathons, rallies and protests. Previously, he served on the Gang Unit, SWAT Team, Repeat Offender Unit, Child Crisis Unit, Fugitive Warrants, and acted as an instructor at the Police Academy. He has further taught SWAT tactics nationally as a member of the National Tactical Officers Association (NTOA).
Witt is also proud to have served on the Tulsa Police Department’s Honor Guard for 33 years and led the team for 21 of those years. The team conducts honors at funerals for active and retired officers who have passed away. Witt described one of his greatest honors as presenting the flag of the United States to the families of fallen officers.
Witt is a veteran of the U.S. Marine Corps (active duty) and U.S. Army Reserve, with a combined total of 10 years of service.
U.S. Attorney Releases Corporate Enforcement Memo for Eastern District of TexasRead the Press Release
BEAUMONT, Texas – The Eastern District of Texas has taken another significant step in promoting justice, fairness, and transparency in the areas of corporate and white-collar enforcement.
“For the past four years, the Department of Justice has introduced and formalized policies relating to corporate and white-collar enforcement actions. These policies are good for government, good for fairness, good for transparency, good for the public, and consistent with the Department’s pursuit of justice,” said U.S. Attorney Stephen J. Cox. “Today, the Eastern District of Texas makes clear that it has adopted these policies and fully commits the District to applying them in its civil and criminal white-collar and corporate investigations.”
In a new policy memorandum announced today, the Eastern District of Texas has formally adopted the Department’s recent enforcement policies concerning corporate resolutions, prosecutorial discretion, third-party payments, voluntary disclosure, cooperation, guidance documents, piling-on credit, agency coordination, compliance programs and corporate monitors, and ability to pay. This EDTX Corporate Enforcement Memo is designed to balance the District’s aggressive enforcement of corporate and white-collar fraud against equally important considerations such as transparency, good government, and fairness. U.S. Attorney Cox added, “the Eastern District of Texas is continually innovating as part of our goal to be on the cutting edge of corporate and white-collar enforcement. Specifically adopting these Department’s policies solidifies the District’s leadership in these areas.”
The EDTX Corporate Enforcement Memo removes any doubt regarding whether the Department’s policies apply to investigations by the United States Attorney’s Office in the Eastern District of Texas. The policy applies to all current and future civil and criminal investigations and will be effective immediately. The Eastern District of Texas policy is available here.
U.S. Attorney Launches Ad Campaign Aimed at Protecting Maine’s Elderly from FraudRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank today announced the launch of a video public service announcement aimed at protecting Maine’s seniors from fraud.
Every day, thousands of older Americans fall victim to financial fraud. Scammers, both here in the U.S. and abroad, target our seniors. Their tactics include deception, demands, and in some cases, outright threats. They use phony lottery and sweepstakes scams. Among the other methods used are posing as government officials demanding back taxes that are not actually owed, unsolicited tech support, and other scams. The fraudsters steal an estimated $3 billion from American seniors every year.
“Increasingly, these scammers are becoming very sophisticated in their tactics,” said U.S. Attorney Frank. “That is why it is important for seniors and their caretakers to always be suspicious of any unsolicited requests for money and offers that sound too good to be true. If you didn’t play the lottery, you didn’t ‘win’ the lottery.
Never, under any circumstances, give your Social Security number, banking information, or any other sensitive information to anyone you don’t recognize.”
The video will appear as online ads, and eventually on social media platforms. The ad can also be viewed here: https://www.youtube.com/watch?v=BRWKSMG8AvI
The YouTube channel for the U.S. Attorney’s Office contains public service announcements on several topics in addition to elder fraud, including human trafficking, the Project Safe Neighborhoods initiative and money mules. The channel can be accessed at: https://www.youtube.com/channel/UCtSYDXolTp8Y2fDnIUsh4FQ/videos
Anyone who has been contacted by a suspected scammer or is the victim of one should call the FBI at 1-800-CALL-FBI.
Two Police Officers and Others Face Cocaine Trafficking Charges in MiamiRead the Press Release
Miami, Fl. – South Florida federal prosecutors have charged two U.S. Virgin Islands police officers and four others with drug trafficking crimes after federal agents discovered more than 300 kilograms of cocaine being carried inside travel bags on a private passenger flight from the Virgin Islands to Miami this week.
Criminal complaints filed in federal court identify the defendants as Teshawn Adams, 26, Tevon Adams, 26, Anthon Berkeley, 26, Roystin David, 28, Maleek Leonard, 27, and Shakim Mike, 29. Teshawn Adams and Mike live in St. Thomas and are officers with the U.S. Virgin Islands Police Department. David and Leonard also live in St. Thomas. Tevon Adams lives in St. Petersburg, Florida, and Berkeley lives in Orlando.
The criminal complaint affidavits allege the following: Teshawn Adams accepted an offer from someone in the Virgin Islands to transport cocaine to South Florida in exchange for money. Together with fellow police officer Mike, Teshawn Adams arranged a private flight from the Virgin Islands to South Florida. On January 12, the two officers boarded the jet, joined by defendants David and Leonard and travel bags containing more than 300 kilograms of cocaine. Customs and Border Protection (CBP) officers discovered the cocaine, packaged as 294 individually plastic-wrapped bricks, during a security check: They saw the bricks on the screen of the X-ray machine that scanned the men’s bags at the Opa Locka Executive Airport on arrival. Tevon Adams, twin brother to one of the police officers, and Berkeley stood ready to transport the jet travelers and the cocaine from the Opa-Locka Airport to other areas of Florida, alleges the complaint affidavits.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), and Vernon T. Foret, Director of Miami and Tampa Field Operations, U.S. Customs and Border Protection (CBP), made the announcement.
HSI and CBP investigated the matter, with assistance from Miami-Dade Police Department. Assistant United States Attorney Yeney Hernandez is prosecuting this case.
Criminal complaints are accusations that contain allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find the criminal complaints and related court documents and information 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-02049, 21-mj-02050 and 21-mj-02066.
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Two Maui Men Charged with Hate Crimes for Racially Motivated AttackRead the Press Release
A federal grand jury in Honolulu, Hawaii, returned an indictment charging Kaulana Alo Kaonohi and Levi Aki, Jr. with a hate crime for their racially motivated attack on a Caucasian man who was attempting to move into the defendants’ Native Hawaiian neighborhood of Kahakuloa on Maui.
The indictment was announced today by Acting Assistant Attorney General John B. Daukas for the Department of Justice’s Civil Rights Division, U.S. Attorney Kenji M. Price for the District of Hawaii, and FBI Honolulu Special Agent in Charge Eli S. Miranda.
The indictment alleges that, on Feb. 13, 2014, Kaonohi and Aki willfully caused bodily injury to C.K., and attempted to cause bodily injury to C.K. through the use of a dangerous weapon (a shovel), because of C.K.’s actual and perceived race and color.
The maximum penalty for the charged crime is 10 years of imprisonment. An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant U.S. Attorney Chris Thomas of the District of Hawaii is prosecuting the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division.
Texas man admits to smuggling over 3 dozen in refrigerated truckRead the Press Release
LAREDO, Texas – A 41-year-old resident of San Antonio has entered a guilty plea to conspiracy to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.
On Oct. 20, 2020, Rodrigo Sanchez approached the I-35 Border Patrol checkpoint driving a refrigerated box truck with “JJ Produce” on the side. Soon after, a K-9 alerted to the presence of contraband in the cargo area. Authorities opened the back of the truck and discovered 37 aliens, including an unaccompanied minor, concealed behind a false wall blocked by stacks of produce.
Sanchez claimed he traveled to Laredo from San Antonio to work as a delivery driver for “AA Produce.” He stated he was to be paid $100 to drive the truck to San Antonio.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing May 5, at which time Sanchez faces up to 10 years in federal prison. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Texas Man Arrested and Charged with Making Threats Regarding Events at the U.S. CapitolRead the Press Release
WASHINGTON, D.C. – A Texas man was charged yesterday and arrested today in Texas in connection with making threats regarding the riots at the U.S. Capitol last week.
Troy Anthony Smocks, 58, of Dallas, Texas, was charged by criminal complaint with knowingly and willfully transmitting threats in interstate commerce, in violation of Title 18, United States Code, Section 875(c). He will make an initial appearance this afternoon in the United States District Court for the Eastern District of Texas.
The affidavit in support of criminal complaint alleges that Smocks traveled to the Washington, D.C., area on January 5, 2021, the day before the illegal rioting. Smocks used a Parler social media account under the name “ColonelTPerez” or “@Colonel007,” to post threats on January 6 and 7 regarding the riots. The threats included that he and others would return to the U.S. Capitol on January 19, 2021, carrying weapons and massing in numbers so large that no army could match them. Smocks threatened that he and others would “hunt these cowards down like the Traitors that each of them are,” specifically threatening “RINOS, Dems, and Tech Execs.” The threats issued by Smocks were viewed by other social media users tens of thousands of times.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the DOJ’s National Security Division, with assistance from the U.S. Attorney’s Office for the Eastern District of Texas. The case is being investigated by the FBI’s Dallas Field Office and Washington Field Office, and the Metropolitan Police Department.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
Tallahassee Man Arrested for Inciting Violence at the Florida Capitol BuildingRead the Press Release
TALLAHASSEE, FLORIDA – Federal law enforcement agents today arrested Daniel Baker of Tallahassee for transmission, in interstate commerce, of a communication containing a threat to kidnap or to injure. Baker issued a call to arms for like-minded individuals to violently confront protestors gathered at the Florida Capitol this Sunday. He specifically called for others to join him in encircling any protestors and confining them at the Capitol complex using firearms. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the arrest.
“Extremists intent on violence from either end of the political and social spectrums must be stopped, and they will be stopped,” Keefe said. “The diligent work in this case by the FBI and other public safety organizations has averted a crisis with this arrest, and we will not stop in our efforts to detect, deter, and disrupt anyone else planning to incite or commit violence.”
Agents of the Federal Bureau of Investigation arrested Baker without incident early this morning with assistance from the Florida Department of Law Enforcement and the Tallahassee Police Department. He will make his initial appearance virtually this afternoon at 2:00 p.m. at the U.S. Courthouse before Magistrate Judge Charles A. Stampelos.
“In these perilous times, we are steadfastly committed to being as transparent as possible about the work your government does to protect public safety and uphold the rule of law,” Keefe said. “While extremists who plan mayhem may skulk in the shadows, it’s important that we force them into the light and bring them to justice.”
Baker, a former U.S. Army Airborne infrantryman who was kicked out of the service, has a history of expressing his belief in violent tactics. In recent days his social media posts had escalated significantly. He specifically expressed an intent to violently disrupt protests occurring between now and Inauguration Day next Wednesday, January 20, and was actively recruiting others to join him. Baker, who actively participated in multiple protests throughout the United States last summer, has used social media as a way to promote, encourage, and educate his followers on how to incapacitate and debilitate law enforcement officers.
“This arrest serves as a message to anyone who intends to incite or commit violence in the Northern District of Florida: If you represent a threat to public safety, we will come for you, we will find you, and we will prosecute you,” Keefe said. “Daniel Baker’s actions show that he is a dangerous extremist, and the law-abiding public is safer now that he has been arrested. We are, and will remain, on high alert and will take all appropriate actions against credible threats to the people of our District.”
After approximately one year in the Army, Baker received an other-than-honorable discharge in 2007 after he went AWOL before his unit was to deploy to Iraq. In 2017, he joined the People’s Protection Units (YPG), a group fighting in Syria against ISIS and the Turkish government. He claimed on social media that he was a trained sniper for the YPG, and he can be seen in a documentary film fighting ISIS and Turkish militants. YPG is a sub-affiliate of the Kurdistan’s Working Party (PKK), which is designated by the United States government as a Foreign Terrorist Organization.
Baker can be seen in photos and YouTube videos with a variety of firearms, including those with high-capacity magazines. Social media posts also show that he was actively attempting to purchase additional firearms within the last 24-48 hours. A chronological account of Baker’s social media posts, along with additional information about his self-declared attempts to incite violence at past protests, can be found in the affidavit below.
“The FBI is laser focused on identifying, investigating, and disrupting individuals who are intent on inciting violence or engaging in criminal activity,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “We will not tolerate those who seek to wreak havoc in our communities. We are fully coordinating with law enforcement partners to ensure the safety and wellbeing of all citizens in the North Florida, and our partnership of the Florida Department of Law Enforcement, Leon County Sheriff’s Office and Tallahassee Police Department have been especially vital in this effort. Help from the public is also critical, and we encourage anyone with information regarding potential violence or criminal activity to contact law enforcement immediately.”
To report information, or suspicious activity, contact local law enforcement, the FBI at 1-800-CALL-FBI (1-800-225-5324), or 911 in case of emergency.
This case resulted from a collaborative investigation by the Federal Bureau of Investigation, Florida Department of Law Enforcement, Leon County Sheriff’s Office and the Tallahassee Police Department. Assistant United States Attorneys Stephen Kunz and Lazaro Fields are prosecuting this cases.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Baker Criminal Complaint - U.S. v. BakerStatement by U.S. Attorney Billy J. Williams on Recent Political ViolenceRead the Press Release
PORTLAND, Ore.—Billy. J. Williams, U.S. Attorney for the District of Oregon, released the following statement on recent political violence:
"Like most Americans, I watched in disgust and anger as radical insurrectionists stormed the U.S. Capitol in a shocking display of political violence. There is no question these violent acts were domestic terrorism aimed at disrupting Congress’ Constitutional duty to certify the electoral victory of President-elect Joe Biden. The Justice Department and U.S. Attorney’s Offices throughout the country are working tirelessly to investigate and prosecute all forms of domestic terrorism including this attack on our government, and those responsible will be brought to justice.
As we approach next week’s inauguration, the threat of similar political violence around the country and here in Oregon remains. Our office is working closely with the FBI, Federal Protective Service, Oregon State Police, Portland Police Bureau, and other local, state, and federal law enforcement partners to identify, investigate, and disrupt anyone intent on engaging in violence here in Oregon.
We need the public’s help to keep our communities safe and protect all Oregonians’ First Amendment rights. We urge you to submit any information you have about real or potential threats of violence at any upcoming demonstrations or events throughout the state. Tips can be submitted directly to the FBI by calling (503) 224-4181 or by visiting tips.fbi.gov.”
Statement on Federal Law Enforcement’s Safety and Security EffortsRead the Press Release
The U.S. Attorney’s Office for the District of Minnesota and its federal law enforcement partners, including the FBI, ATF, U.S. Marshals and Homeland Security Investigations, will devote all our resources to protect public safety throughout the State of Minnesota in the coming days. Federal law enforcement is leaning forward to both respond to threats of violence and acts of violence and to assist state and local law enforcement to ensure public safety in our communities. We are leveraging additional resources, including an FBI-led 24-hour command post to facilitate information and intelligence sharing across the law enforcement spectrum, in order to achieve this shared goal. In accordance with our public safety mission, federal law enforcement will hold accountable any individuals or groups who commit any criminal activity in our communities.
United States Attorney Erica H. MacDonald urges the public to be safe and to report suspicious activity to the FBI at 1-800-CALL-FBI (1-800-225-5324).
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Six convicted and sentenced in massive contracting fraud and money laundering schemeRead the Press Release
Indianapolis – Acting United States Attorney John Childress announced today that Ernie Perkins, 40, of Zionsville, and the owner of Remarkable Creative Enterprises (“RCE”), was sentenced to 70 months imprisonment in connection with his role in a massive, years-long fraud conspiracy that resulted in the theft of more than $8.4 million from a Pennsylvania based bank and a Pennsylvania based insurance company. Neither the bank nor the insurance company are being named because they are victims in this case.
The sentence, handed down by U.S. District Court Judge Sara Evans Barker on January 5, 2021, marks the culmination of a years-long investigation led by the United States Attorney’s Office and agents of the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. This significant investigative effort also yielded convictions and significant federal prison sentences for 5 other defendants. All were convicted of various charges related to the scheme, including theft by a bank employee, money laundering, mail fraud and tax evasion. At a series of hearings held late last year, Judge Barker sentenced the other defendants to significant prison terms for their respective roles in the schemes.
John L. Williams, 52, Zionsville, a former employee of the victim bank, 108 months imprisonment.
Robert Finch, 73, Indianapolis, owner of Finch Constructors and Finch Management, 48 months imprisonment.
Donald Landis, 59, Plainfield, owner of P&L Supply, 36 months imprisonment.
Walter Watson, 72, Detroit, Michigan, owner of W-3 construction company, 18 months imprisonment.
Shalonda Coleman, 45, Indianapolis, a former employee of the insurance company, 24 months imprisonment.
“White collar criminals are thieves who steal through position and influence,” said Childress. “White collar crime like tax evasion and money laundering ultimately effects all Hoosiers and this office is committed to aggressively prosecuting these fraudsters.”
As outlined in the lengthy indictment, Williams was employed as a construction project manager in the Indianapolis regional office of the victim bank. His responsibilities included overseeing the bank’s internal real estate projects in Wisconsin, Illinois, Michigan, Kentucky and Indiana, including new bank branch construction and existing bank branch renovation projects.
In carrying out the scheme, Williams would use information available to him as a bank employee to identify construction and renovation projects that were projected to come in under budget. Williams would then contact Perkins, Finch, Watson, and Landis and instruct them to submit fraudulent invoices on those under-budget projects for work that was never performed and materials that were never supplied. Williams used his position at the bank and his oversight of the projects in question to approve payment of the fraudulent invoices. Once the bank paid the invoices, Perkins, Finch, Watson, and Landis would kick back a large percentage of the money to CB Consulting, a fictitious business entity controlled by Williams.
In many cases, the money passed through multiple bank accounts before reaching the bank account Williams set up for CB Consulting. Between November of 2009 and August of 2016, the defendants were responsible for submitting hundreds of fraudulent invoices to the victim bank and receiving and laundering more than $8.4 million in proceeds from the fraudulent scheme.
Coleman and Perkins are also charged with using the U.S. Mail in a separate scheme to defraud a Pennsylvania-based insurance company and steal money. In those instances, Coleman used her position as a claims processor, and her access to the company’s computer systems, to cause the insurance company to mail checks to RCE. Coleman disguised the payments to RCE as payments for work performed for the company’s insurance clients, but no work was ever performed. Instead, Perkins would deposit the checks into RCE accounts and kick back a percentage of the money to Coleman.
Williams, Perkins, Finch, Landis and Watson were all convicted of theft and conspiring to launder the money stolen from the bank. Williams and Finch were separately convicted of engaging in a significant number of financial transactions in excess of $10,000 using the stolen funds. Those transactions included transfers to other bank accounts held by the defendants, including the bank accounts of Finch’s construction company, the construction of a residence for Williams’ family in Zionsville, Indiana, more than $100,000 in payments for a lavish wedding for Williams’ daughter, and the purchase of multiple automobiles. Williams and Colman were also convicted of tax evasion and filing false tax returns, respectively, for failing to report their receipt of stolen funds as income on their tax returns.
“Even if you use sophisticated means to steal millions of dollars, you are still a thief, and this sentence sends a clear message of the consequences of such greed,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI will continue to work with the IRS and other law enforcement partners to focus our efforts on these white collar criminals and ensure they are brought to justice.”
“The license to run a business is not permission to use trusted business partners as an endless stream of free money,” said Acting Special Agent in Charge Tamera Cantu, of IRS Criminal Investigation, Chicago Field Office. “John Williams and his accomplices used their positions and access to the banking system to steal over $8 million from multiple businesses, as well as the honest, hardworking Americans who pay their tax obligations. The IRS is committed to aggressively investigating those individuals who engage in tax evasion, money laundering, and financial fraud. Working with our partners at the Department of Justice, we will continue to investigate those who violate the tax laws,” said Cantu.
Bryan Musgrove, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies and the Southern District of Indiana U.S. Attorney’s Office. Together these partners brought down a complex, large-scale fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved. As a result of their hard work, six defendants in this case were brought to justice.”
According to Assistant United States Attorney Matthew J. Rinka, who prosecuted this case for the government, the defendants were also ordered to pay millions of dollars in restitution and all six defendants were ordered to serve a term of federal supervised release upon release from their term of imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1 and 5.4.