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Tuesday 17 November 2020
Winthrop Man Sentenced to 15 years for Unlawfully Possessing a FirearmRead the Press Release
BANGOR, Maine: A Winthrop man was sentenced yesterday in federal court in Bangor for being a felon in possession of a firearm, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Jonathan Bowers, 32, to 15 years in prison and two years of supervised release. Bowers pleaded guilty on September 14, 2017.
According to court records, on April 9, 2016, while at a car repair shop in Chelsea, Maine, Bowers carried a 9 mm pistol in a holster on his hip. Surveillance footage captured him in possession of the pistol. Law enforcement officers later recovered the pistol and the holster. Bowers was prohibited from possessing firearms because of his four felony convictions for burglary and three felony convictions for theft. Due to his burglary convictions, he was subject to a 15-year mandatory minimum sentence under the Armed Career Criminal Act.
In his allocution, Bowers told the court, “Had I known what I was actually facing by possessing a gun I would have distanced myself as far as possible from them.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kennebec County Sheriff’s Office investigated the case. 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. For more information about PSN, please visit http://www.justice.gov.
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Virginia Man Sentenced to More Than 12 Years in Federal Prison for Kidnapping and Later Attempting to Silence the Victim by Having Her KilledRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Henry Lee Kenner II, age 43, of Alexandria, Virginia, to 150 months in federal prison, followed by five years of supervised release, for kidnapping and witness tampering.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Kenner’s plea agreement, on June 8, 2019, Kenner, dressed in black, drove from Virginia to the home of the victim in Prince Frederick, Maryland, and asked to speak with the victim. An argument ensued and Kenner struck the victim with his fist and cut her hand with a knife, then forcibly removed the victim from her home, without her consent. Kenner continued to assault the victim as he took her to his car and put her in the passenger seat. A witness who saw some of these events stated that Kenner threatened to kill the victim if she opened the door when Kenner was walking around the car to the driver’s seat.
As detailed in the plea agreement, Kenner drove the vehicle from Calvert County through Charles and Prince George’s County, and continued to assault and yell at the victim. At one point, a Trooper from the Maryland State Police called Kenner on his cellular phone and asked that he return with the victim to her residence. Kenner indicated that he would do so, but instead continued across the state line, into Virginia. Kenner then pulled over and disposed of the knife. Eventually, Kenner dropped the victim off at a hospital where she was treated for her injuries. Kenner ultimately turned himself in to the Maryland State Police.
In October 2019, Kenner was charged federally in Maryland for kidnapping. In December 2019, while in federal custody awaiting trial, Kenner attempted to persuade an individual, in exchange for money, to arrange for the killing of the victim so that she would be unable to testify against him. Kenner provided the victim’s personal identifying information to the individual so that it could be used to locate and kill the victim. The individual did not execute the plan and no money changed hands.
United States Attorney Robert K. Hur praised the FBI and Maryland State Police for their work in the investigation and thanked the Calvert County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys G. Michael Morgan, Jr. and Joseph R. Baldwin, who prosecuted the case.
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United States Brings Civil False Claims Act Suit Against Delaware-Based Textile Manufacturer for Bribery of an Amtrak Official and Conspiracy to Rig BidsRead the Press Release
PHILADELPHIA— United States Attorney William M. McSwain announced that his Office filed suit against First State Manufacturing, Inc. (“FSM”), a Milford, Delaware corporation, for violating the False Claims Act. The United States alleges that FSM, through its executive management, bribed Timothy Miller, a former Amtrak procurement official, in order to receive lucrative contracts from Amtrak. More specifically, the United States alleges that FSM executives provided cash, kickbacks, and vacations to Miller and, in exchange, Miller provided FSM with bidding information that allowed FSM to win the contracts. Once FSM secured the contracts, it allegedly furnished substandard textile products and conspired with Miller to inflate prices, costing taxpayers even more. FSM allegedly attempted to conceal the bribery scheme by directing Miller to falsify records and establish a fake company through which FSM paid him as a “consultant.” The complaint alleges that as a result of this scheme, FSM secured six contracts from Amtrak between August 2015 and April 2018.
The United States and FSM have also entered into a Consent Judgment, subject to the Court’s approval, that would resolve the matter without litigation. If approved by the Court, the Judgment would require FSM to pay $393,250.07 to the United States. The settlement amount is based in part upon the company’s financial status.
Previously, Miller and two FSM executives were criminally prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania. For his role in this scheme, Miller was sentenced to one year and one day in prison. Donald Scott Crothers, FSM’s Vice President for Marketing and Contract Administration, received a sentence of eighteen months in prison for his role in the scheme. John Gonzales, FSM’s Chief Executive Vice President and Chief Financial Officer, is awaiting sentencing.
“As alleged, FSM performed an end-run around an honest bidding process, illegally stacking the deck in its favor,” said U.S. Attorney McSwain. “The United States’ complaint lays out, in painstaking detail, FSM’s alleged bribery scheme, including kickbacks through a fake consulting company, cash payments made under the cover of night, and improper price adjustments directed by a corrupt organization. Let this be a warning to anyone who thinks they can perpetrate and hide a bribery or bid rigging scheme: my Office will bring to bear all of its resources, both civil and criminal, to make sure that all culpable parties are held accountable.”
“Today’s actions represent our commitment to seek justice and hold accountable those who violate the law,” said Kevin Winters, Amtrak’s Inspector General. “We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies in moving the case to this next phase.”
“Today’s civil complaint against First State Manufacturing demonstrates our commitment to use all available legal remedies with respect to those who seek to enrich themselves through fraud, bribery, and bid-rigging at the expense of the Federal government and honest businesses,” said DOT OIG Regional Special Agent-In-Charge Douglas Shoemaker. “DOT OIG will continue to work with our law enforcement and prosecutorial partners to pursue financial justice on behalf of the American taxpayer.”
The complaint contains allegations only, and not findings of liability.
The investigation was conducted by the Amtrak Office of Inspector General and the Department of Transportation Office of Inspector General. The civil investigation, litigation, and resolution are being handled by Assistant United States Attorney Paul J. Koob.
US Attorney announces plan to encourage safe policing practicesRead the Press Release
COLUMBUS, Ohio – David M. DeVillers, United States Attorney for the Southern District of Ohio, today announced that state, local and college police departments in Ohio must meet new safe policing standards regarding use of force, performance management and community engagement if they intend to apply for discretionary grants from the U.S. Department of Justice.
The new standards are a result of President Trump’s June Executive Order 13929, Safe Policing for Safe Communities.
The Executive Order requires that law enforcement agencies be certified by independent credentialing agencies. The Ohio Office of Criminal Justice Services (OCJS) and the Ohio Collaborative Law Enforcement Certification Program has been selected as the independent credentialing agency for Ohio.
“Following these standards will make sure that law enforcement agencies in the Southern District of Ohio are using safe practices and have policies in place to ensure transparent, safe and accountable services to our communities,” DeVillers said. “We are working with OCJS and reaching out to law enforcement agencies throughout the District to make them aware of the new standards and the certification process.”
The President’s Order requires agencies to meet two standards in order to be successfully credentialed: 1) that the agency’s use of force policies prohibit chokeholds, except in situations where the use of deadly force is allowed by law; and 2) that the agency’s use of force policies adhere to all applicable federal, state, and local laws.
The Department’s certification standards encourage an independent assessment of law enforcement policies and procedures, such as: 1) training protocols on use of force; 2) training protocols on de-escalation; 3) the scope of an officer’s duty and obligation to intervene in order to prevent excessive force by another officer; 4) when and how an officer should provide appropriate medical care; 5) officers identifying themselves as law enforcement and giving verbal warning of their intent to use deadly force; and 6) shooting at or from a moving vehicle. Additionally, law enforcement agencies are encouraged to implement early intervention systems to promote officer wellness and to identify officers who may be at risk of violating use of force policies, policies and procedures to help them recruit and promote the best and brightest, and community engagement plans to address each community’s specific needs.
By January 31, 2021, agencies must have received certification or be in the process of getting certified if they plan to apply for discretionary grants, sometimes known as competitive grants, during this fiscal year.
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U.S. Attorney Pak announces the appointment of sixteen new Assistant U.S. AttorneysRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced the appointment of sixteen new Assistant U.S. Attorneys (AUSA) who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens we serve in this district.
“We are grateful to have such talented and dedicated professionals answer the call to represent the United States in federal court,” said U.S. Attorney Byung J. “BJay” Pak. “These outstanding Assistant U.S. Attorneys have proven that they are committed to excellence in their service to our country, and the citizens of the Northern District of Georgia.”
The following AUSAs joined our Criminal Division:
- Radka Nations served as an Attorney with DOJ Criminal Division/ Fraud Section, in the Foreign Corrupt Practices Act (FCPA) unit, where she worked on many high profile investigations and received numerous awards, including the DHS 2015 and 2017 Outstanding Financial Investigation Awards. Radka earned her J.D. from the University of Georgia School of Law and her Master of Science in Law from the University of Sofia School of Law in Bulgaria.
- Erin Harris served as a SAUSA assigned to us from the HIDTA program. She was also an AUSA in the General Crimes Unit of the USAO for the Eastern District of Michigan for two years. Prior to entering government service, Erin was an associate with Morgan Lewis & Brockius in Chicago. Erin earned her B.A. in political science from the University of Michigan and her law degree from the George Washington University Law School in Washington, D.C.
- Greg Radics served as an Assistant Chief Counsel for the U.S. Department of Homeland Security – Immigration and Customs Enforcement and served as a SAUSA in our General Crimes Section. Greg previously served a detail to our office (2010-2012) and HSI (as an embedded attorney) and was a Senior Assistant District Attorney in the Northeastern Judicial Circuit for nine years. Greg earned his B.A. in Criminal Justice from the University of Georgia and his law degree from the University of Memphis, Cecil C. Humphreys School of Law.
- Tal Chaiken joins us from Riley Safer Holmes & Cancila LLP, where she was a partner, handling complex civil litigation and white collar criminal matters. Previously, she was an associate with Schiff Hardin LLP, in Chicago. Tal received her B.A. in Economics, with honors, from the University of Chicago, where she was on the Dean’s list all four years. She earned her law degree from the University of Chicago, serving as the Managing Editor of the University of Chicago Legal Forum.
- Sarah Klapman served as a career law clerk for the Hon. Richard Story. She previously worked as a litigation associate at the Atlanta office of Miller & Martin, where she was a member of the Litigation and White Collar & Corporate Investigations Section, and she has also served as a Staff Attorney for the Federal Defender’s Program in Atlanta. Sarah earned her law degree from the University of Virginia School of Law, and she received her B.S., magna cum laude, Phi Beta Kappa, and M.S., both in chemistry, from Furman University.
- D’Juan Jones served as an associate with Wilkinson Walsh + Eskovitz in Washington D.C., where he handled pharmaceutical litigation. Previously, he clerked for Hon. LaShann Dearcy Hall, U.S. District Judge for EDNY, and he was an associate at Sidley Austin LLP in New York. D’Juan received his B.A. from Wake Forest University, where he was a Magnolia Scholar, and he earned his law degree, cum laude, from Howard University, where he was a Staff Editor for the Howard Human & Civil Rights Law Review.
- Mary Webb returned to our office after serving as a Vice President of Litigation with Rooms to Go. Mary was an AUSA in our office from 2013-2018, and before that, an associate at Bondurant Mixson & Elmore LLP in Atlanta. She has also served as a law clerk for Hon. R. Lanier Anderson, U.S. Court of Appeals for the 11th Circuit. Mary received her undergraduate degree in English and Political Science, summa cum laude, Phi Beta Kappa, from the University of Georgia and her law degree from Yale Law School, where she was a Coker Fellow, and an editor of the Yale Journal on Regulation.
- Nicholas Joy previously served our office as a SAUSA with the HIDTA program. Prior to that, Nick served for 7 years as a Trial Counsel with the Navy Judge Advocates General Corps (where he continues to serve as a reservist), handling a variety of legal matters and prosecuting criminal cases. Nick received his B.A., magna cum laude, in History and Classical Studies, from the University of Pennsylvania, and he earned his law degree from Harvard Law School.
- Tyler Mann served as a SAUSA with the HIDTA program. Prior to this, he was an Assistant District Attorney with the DeKalb County District Attorney’s Office for three years, and he worked as an associate at Troutman Sanders LLP for six years. Tyler also served as the Chief of Staff for State Senator Jason Carter and as legal Counsel for the Georgia Senate Democratic Caucus. He received his undergraduate degree, in Biomechanical Engineering and Political Science, from Yale University, and he earned his law degree from the University of Michigan Law School.
- Michael Qin served as an associate with Kellogg, Hansen Todd, Figel & Frederick PLLC in Washington D.C. Prior to that, he served as a law clerk to then-Judge Neil M. Gorsuch of the U.S. Court of Appeals for the 10th Circuit, and he was an Honors Program attorney with the Federal Communications Commission. Michael received a B.S. in Computer Science and another in Applied Mathematics, both with highest honors, from Georgia Tech, and he earned his law degree, magna cum laude, from Harvard Law School, where he was an Executive Editor of the Harvard Law Review.
- Lauren Macon served as a Senior Associate in the Securities Litigation Group of Alston & Bird LLP, where she handled both white collar defense and related civil matters. Lauren received her law degree with Highest Honors, Order of the Coif, from the University of North Carolina, where she also served as the Contributing Editor of the North Carolina Law Review. She received her B.A. from UNC-CH as well, and she was a Summer Clerk for the Hon. Justice Paul Martin Newby of the Supreme Court of North Carolina.
- Rebeca Ojeda previously served as an associate with King & Spalding-Atlanta, where she handled complex and mass torts litigation. Additionally, she has been an active volunteer, serving as the chair of K&S’s pro bono subcommittee, the Team leader of K&S’s United Way Campaign, as Vice President of the Georgia Hispanic Bar Association (which awarded her the Rising Star Award), and as Young Lawyers Division Representative to the Hispanic National Bar Association. Rebecca received her B.A. in Economics and English, cum laude, from Vanderbilt University, and received her law degree, with honors, from the University of Texas School of Law in Austin, where she was the Editor in Chief of the American Journal of Criminal Law.
- Amy Palumbo served as an Assistant District Attorney in the Queens District Attorney’s Office for five years, where she prosecuted major violent crimes. Prior to that, she was a litigation associate with Jones Day, in their New York Office. She earned her law degree from Harvard Law School, where she was a Line Editor for the Environmental Law Review. She also interned with the USAO in Boston during law school. Amy earned her B.A., in Political Science, Psychology and History, cum laude, from Tulane University, where she attended on a full scholarship.
The following AUSA’s joined our Civil Division:
- Tiffany Moore previously served as FLU Coordinator and Asset Forfeiture AUSA in the Western District of North Carolina and as FLU Coordinator and Civil Defensive AUSA in the Southern District of Georgia. Prior to joining the U.S. Attorney’s Office, she was senior law clerk to the Hon. W. Louis Sands, United States District Court Judge for the Middle District of Georgia and practiced commercial and securities litigation at Eversheds Sutherland. Tiffany is a graduate of Spelman College and the University of Georgia School of Law. During her studies, she completed graduate level business and environmental studies coursework with the UGA Terry College of Business in New Zealand and Fiji and an international law curriculum with the ABA/London College of Law.
- Aaron Ross served as Chief of the Litigation Strategy Division of the DeKalb County Law Department, where he worked since 2014. Prior to that, he was a litigation associate at Kilpatrick Townsend & Stockton for six years. Aaron received his B.A. from Northwestern University and his law degree from Emory University School of Law, where he was the Notes and Comment Editor of the Emory Law Journal.
- Trishanda Treadwell was previously a partner with Parker, Hudson, Rainer & Dobbs, LLP. She also worked as an associate with King & Spalding. Trish received her J.D. cum laude from Georgia State University College of Law, where she was the Student Writing Associate Editor of the Law Review, President of the Student Bar Association, and a member of the Board of Visitors. She earned her B.A. cum laude from Oglethorpe University.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Radka Nations served as an Attorney with DOJ Criminal Division/ Fraud Section, in the Foreign Corrupt Practices Act (FCPA) unit, where she worked on many high profile investigations and received numerous awards, including the DHS 2015 and 2017 Outstanding Financial Investigation Awards. Radka earned her J.D. from the University of Georgia School of Law and her Master of Science in Law from the University of Sofia School of Law in Bulgaria.
Two Area Doctors Charged in a Scheme to Defraud the United StatesRead the Press Release
A psychologist and medical doctor were charged in a criminal complaint for their alleged role in a scheme to create fake medical diagnoses to help immigrants fraudulently obtain their U.S. citizenship, announced United States Attorney Matthew Schneider.
Joining in the announcement were Acting Special Agent in Charge David G. Nanz, Federal Bureau of Investigation (FBI), Associate Director of Field Operations Directorate Daniel Renaud, United States Citizenship and Immigration Services (USCIS) and Director of Field Operations Christopher Perry, United States Customs and Border Protection (CBP).
Charged were psychologist Firoza VanHorn, 70, of Bloomfield Hills, Michigan and medical doctor Muhammad Awaisi, 61, of Pontiac, Michigan.
Schneider stated, “The allegations in this case are truly outrageous and are a disservice to every immigrant who comes to America and becomes a citizen the right and honest way.”
"As Americans we look for those individuals seeking to become our fellow citizens to respect and follow the laws of our country. We expect them to accept and respect our system of government and our naturalization process. And we expect everyone involved in the naturalization process to demonstrate the same good moral character required of immigrants applying to be U.S. citizens," said Nanz. "The conduct alleged in this complaint, if proven, demonstrates those involved showed contempt for the naturalization process and our laws."
Renaud stated, “The collaborative efforts of multiple departments and agencies on this investigation sends a clear message of our joint dedication to track down and hold accountable any who would seek to abuse our immigration system. In this situation, allegations of medical professionals dishonoring their positions of power to undermine our immigration system are especially despicable and are a slap in the face to those immigrants seeking relief through the disability exception process who truly need it.”
Perry stated, “Medical professionals are in a position of trust, profiting off of fake medical diagnoses to help others fraudulently obtain citizenship is a betrayal of that trust. U.S. Customs and Border Protection takes these allegations seriously and will aggressively pursue those bad actors who attempt to financially benefit off of such fraudulent activities.”
According to the complaint, immigrants seeking to become naturalized U.S. citizens must first successfully demonstrate the ability to read, write and use the English language, and demonstrate a knowledge of United States history and government. These requirements, however, can be waived for immigrants who can prove that they are not able to meet the requirements because of physical or mental disabilities. The complaint alleges that Van Horn and Awaisi helped immigrants fraudulently obtain these waivers, and hence fraudulently obtain U.S. citizenship, by diagnosing the immigrants with medical conditions they did not have, documenting tests that were never performed on the immigrants, and prescribing medically unnecessary medication. Van Horn typically received $500 each time she created the fake diagnosis and medical records. According to records from the United States Citizenship and Immigration Services, Van Horn assisted 1,249 immigrants file requests for such waivers over the past four years alone.
For example, the complaint alleges that a witness met with Van Horn at Van Horn’s office. Van Horn asked how the witness was feeling, along with other basic questions a doctor typically asks a patient. The witness explained that the witness had previously been in a car accident. The complaint alleges that Van Horn then wrote a report diagnosing the witness with Chronic Post Traumatic Stress Disorder caused by the witness being in a car accident, being held captive and assaulted by Sunni terrorists, being bombed, being jailed for a year by Saddam Hussein, being shot at a bus stop with friends, and the witness being the lone survivor.
The complaint further alleges that, as part of this conspiracy, Awaisi prescribed opioid painkillers to a patient, even though the patient was not in pain and did not tell Awaisi the patient was in pain.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Jonathan Goulding. The investigation is being conducted jointly by the FBI, USCIS and CBP.
Tulsa Man Pleads Guilty to Voluntary Manslaughter in Indian CountryRead the Press Release
A Tulsa man pleaded guilty to voluntary manslaughter in Indian Country after he shot and killed a woman in Philpott Park on July 10, 2020, announced U.S. Attorney Trent Shores.
James Michael Landry, 29, committed the crime on the Creek Nation reservation. The victim was an enrolled member of the Cherokee Nation.
“James Landry tried to explain away what happened the day he killed Crystal Bradley, but thanks to the coordinated efforts of law enforcement, the truth came out. Today, Mr. Landry pleaded guilty to voluntary manslaughter and will be held accountable for his inexcusable actions,” said U.S. Attorney Trent Shores. “In partnership with the Tulsa County District Attorney’s Office and the Muscogee (Creek) Nation, my office has worked relentlessly to ensure every victim of violent crime experiences a measure of justice and that no case falls through the cracks. With three sovereigns – tribal, state, and federal – communicating and coordinating, I believe we have a blueprint for success in the criminal justice arena in the post-McGirt world.”
In his plea agreement, Landry admitted that on July 10, 2020 without malice, but upon a sudden quarrel or heat of passion, he unlawfully shot and killed Crystal Bradley.
U.S. District Judge Gregory K. Frizzell set sentencing for Feb. 22, 2021.
The FBI, Muscogee (Creek) Nation Lighthorse Police Department and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
Troy Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
ALBANY, NEW YORK – Jean Luis Colon, age 23, of Troy, New York, pled guilty today to possessing and intending to distribute heroin, and to possessing a firearm with an altered serial number.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Colon admitted that he possessed approximately 2,050 small bags of heroin that he intended to sell, which law enforcement seized when they executed a search warrant on his residence on August 21, 2020. Some of the heroin bags were stamped with the words “Corona Virus,” according to a criminal complaint previously filed in the case. Colon also admitted to possessing a .38 caliber Smith and Wesson revolver with a scratched serial number.
Colon, who has been in custody since his arrest on August 21, faces up to 25 years in prison, and at least 3 years of post-imprisonment supervised release, when Chief United States District Judge Glenn T. Suddaby sentences him on April 22, 2021. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This prosecution was the result of a joint investigation by the DEA, Troy Police Department, the New York State Police Special Investigations Unit, and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett with assistance from the Rensselaer County District Attorney's Office.
Tacoma woman sentenced to 27 months in prison for 7-year public assistance fraud schemeRead the Press Release
Seattle –A 40-year-old Tacoma resident was sentenced today in U.S. District Court in Seattle to 27 months in prison for wire fraud, aggravated identity theft, and embezzlement of mail by a postal employee. ILIGANOA THERESA LAUOFO illegally collected more than $276,000 over the course of a fraud scheme that began in 2011 and continued until 2018. At the sentencing hearing, U.S. District Judge Richard A. Jones noted, “There are large families across this country who have no source of income and mouths to feed…. You had no right to go out and lie and cheat and steal your way.… You told a persistent and protracted series of lies.”
“This defendant was unrelenting in her efforts to defraud the systems we rely on to help the neediest in our communities. She persisted even after authorities made clear they were investigating her fraud scheme,” said U.S. Attorney Brian T. Moran. “At a time when many are struggling to make ends meet because of COVID-19, we must safeguard federal resources for those who need assistance.”
According to records in the case, LAUOFO lied about her household composition and income, used stolen identities to claim additional benefits and open bank and credit accounts, and stole checks from the mail during a period when she was employed by the U.S. Postal Service. Between April 2011 and December 2018, LAUOFO applied for welfare benefits, including food, childcare, and income assistance, by claiming her husband did not live with the family, and submitted falsified documents to bolster that claim. Had her husband’s income been counted, she would not have qualified for all the assistance she received. In addition to the benefits claimed in her own name, LAUOFO applied for and received additional benefits in stolen identities of friends and family members. Across those various identities, LAUOFO also stole and misused the identity information of 13 minor children who lived in American Samoa and Western Samoa, claiming they resided with her (or her alternate identities) when they did not. By claiming these children, she received additional food and childcare benefits. In all, LAUOFO fraudulently received $222,294 in overpaid benefits.
LAUOFO falsely claimed the children on her tax filings, resulting in over $35,000 in tax credits and refunds that she did not deserve.
The fraud did not end with stolen benefits. LAUOFO used some of the identities she stole to open bank and credit accounts. She opened one of those accounts in the name of her ex-husband three years after he died and deposited worthless checks in the bank account and quickly withdrew cash before the bank realized the fraud. More than $10,000 in loss resulted from that conduct.
Finally, in March 2018, when LAUOFO was employed by the U.S. Postal Service as a letter carrier, she stole and deposited checks from the mail she was assigned to deliver. She deposited the checks into an account in the name of one of the identities she had stolen in the benefits fraud scheme. Later, in April 2018, LAUOFO discarded and destroyed more than 200 pieces of mail, later admitting she threw the mail in a dumpster so she could complete her route more quickly.
“By stealing this money, she compromised the integrity of these programs and, in her way, drew down the resources that will be available to those beneficiaries who play by the rules…. Fraud and theft like Defendant’s … have a corrosive effect on the public’s belief that programs like these, motivated by compassion and dependent on honesty, can work as intended. And when people lie to social agencies about the basic circumstances of their lives, these agencies must use their limited resources to detect and investigate fraud instead of delivering benefits,” prosecutors wrote in their sentencing memo.
LAUOFO was ordered to serve three years of supervised release following prison and is obligated to pay $276,639 in restitution.
“Ms. Lauofo used stolen identities to fraudulently receive federally funded benefits for several years,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will aggressively pursue those who misuse Social Security numbers by working with the U.S. Attorney’s Office and our joint law enforcement partners to pursue this type of fraud and hold those responsible accountable for their crimes.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG), Washington State Department of Social and Health Services Office of Fraud and Accountability (DSHS/OFA), and the United States Postal Service Office of Inspector General (USPS-OIG).
The case was prosecuted by Assistant United States Attorney Benjamin Diggs.
Statement from Acting Solicitor General Jeffrey B. Wall on the Passing of Former Solicitor General Drew S. Days IIIRead the Press Release
Today, Acting Solicitor General Jeffrey B. Wall issued the following statement on the passing of former Solicitor General Drew S. Days III:
“We are saddened to learn of the passing yesterday of former Solicitor General Drew Days. As Solicitor General from 1993 to 1996, Drew Days was a distinguished advocate for the United States before the Supreme Court, a wise leader for this office, and a cherished colleague. His career outside the office was no less remarkable. He was a trailblazing civil-rights litigator for the NAACP Legal Defense Fund, the respected head of the Justice Department’s Civil Rights Division, and a beloved professor at Yale Law School for many decades. His colleagues at the Solicitor General’s Office will remember Drew as a kind and gentle soul with a firm commitment to principle. We offer our deepest condolences to his family and join the legal community in mourning his passing.”
Spokane Man Sentenced for Attempted Robbery on Coeur d'Alene Indian ReservationRead the Press Release
COEUR D'ALENE – Sylvester Trevon Tuggles, Jr., 21, of Spokane, Washington, was sentenced in U.S. District Court to 70 months in federal prison for attempted robbery, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Tuggles to serve three years of supervised release following his prison sentence. Tuggles pleaded guilty to the charge on August 19, 2020.
According to court records, on January 8, 2019, Tuggles and Isaiah James Harrington, 20, also of Spokane, followed a man from Spokane Valley, Washington to the Coeur d’Alene Indian Reservation, in Idaho, to rob him. When the man exited his car, Tuggles and Harrington approached, pointed a firearm, and demanded money. Before they could take the man’s money, Tuggles and Harrington fled when they observed people coming to help from a nearby residence.
Earlier this year, Harrington was sentenced to 41 months in federal prison followed by three years of supervised release for his role in the attempted robbery. McKenna Marie Buss, 22, of Bellingham, Washington, was sentenced to five years of probation and nine months of home confinement for aiding the attempted robbery by driving Tuggles and Harrington.
This case was prosecuted in federal court because the crime occurred within the boundaries of the Coeur d’Alene Indian Reservation.
This case was investigated by the Federal Bureau of Investigation, Coeur d’Alene Tribal Police Department, and Plummer Police Department.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Southern Maryland Man Sentenced to 150 Months in Federal Prison for Fentanyl DistributionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Steven Jerome, age 33, of Leonardtown, Maryland, today to 150 months in federal prison, followed by three years of supervised release, for the federal charge of distribution of fentanyl. Jerome acknowledged that his distribution of fentanyl resulted in the death of two victims.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Charles County Sheriff Troy D. Berry.
U.S. Attorney Robert K. Hur stated, “Steven Jerome knew that the fentanyl he was distributing killed someone and still went on to distribute fentanyl to his own mother, killing her, too. He’s now sentenced to 12½ years in federal prison. Drug traffickers are on notice that dealing in deadly fentanyl increases their odds of prosecution in federal court, where there are no suspended sentences and no parole—ever. We will continue to work with our law enforcement partners to stop the tragic deaths resulting from opioid overdoses.”
According to his plea agreement, Jerome and his co-defendant, Rodney Coby, distributed fentanyl to an individual on September 6, 2017, resulting in the death of the victim. Specifically, on September 6, 2017, Victim 1 drove Jerome from the St. Clement Shores neighborhood of St. Mary’s County, Maryland, to Waldorf, Maryland, where Jerome met with a physician to obtain prescriptions for Xanax and Adderall. Victim 1 then drove Jerome to a nearby pharmacy where Jerome filled the Xanax prescription, then to a pre-arranged meeting location in Waldorf where Coby distributed fentanyl to Jerome. Jerome then distributed a portion of that fentanyl to Victim 1.
As detailed in the plea agreement, Victim 1 then used the fentanyl and immediately showed signs of an overdose. Jerome did not call first responders or seek medical attention for Victim 1 because he had an unrelated arrest warrant pending against him. Instead, Jerome drove Victim 1 back to St. Clement Shores, parked the car, and walked to his mother’s house, which was nearby. Jerome’s mother then called first responders, who were unable to resuscitate Victim 1. The medical examiner later determined that Victim 1 died of fentanyl intoxication.
On March 26, 2018, Jerome’s mother texted him to order a “cap,” which is a gel capsule filled with an opioid such as fentanyl. On March 27, 2018, Jerome sold a gel capsule that contained fentanyl to his mother. On March 30, 2018, Jerome’s mother used the contents of the gel capsule that he distributed and died from a fentanyl overdose. Next to her body, investigators found a used syringe and the gel capsule that Jerome distributed. The contents of the gel capsule tested positive for fentanyl, and the medical examiner concluded that Jerome’s mother died of fentanyl intoxication.
Jerome subsequently admitted to one of his associates that he worked with Coby to distribute narcotics.
Rodney Mondell Coby, a/k/a “Cuz,” age 31, of Waldorf, Maryland, was convicted on February 28, 2020, after a seven-day trial for the federal charges of distribution of fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms and ammunition. Coby faces a mandatory minimum of 20 years and up to life in prison for distribution of fentanyl resulting in death. Coby also faces a maximum sentence of 40 years in prison for the conspiracy and for possession with intent to distribute controlled substances; a maximum of life in prison for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in prison for being a felon in possession of firearms and ammunition. Judge Hazel has not yet scheduled a sentencing date for Coby. Coby has been in custody since his arrest on April 13, 2018.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, and the Charles County Sheriff’s Office for their work in the investigation, and thanked the Prince George’s County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Erin Pulice, who are prosecuting the case.
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Six area residents charged in COVID relief fraud schemeRead the Press Release
HOUSTON – Seven individuals across two states have been charged in a Houston federal indictment unsealed today for their alleged participation in a scheme to obtain approximately $16 million in forgivable Paycheck Protection Program (PPP) loans.
The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Amir Aqeel, 52, and Pardeep Basra, 51, both of Houston; Rifat Bajwa, 51, Richmond; Mayer Misak, 40, Cypress; Mauricio Navia, 41, Katy; and Richard Reuth, 57, Spring, are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Andrew M. Edison.
They are all charged with conspiracy to commit wire fraud and wire fraud. The indictment also charges Aqeel with three counts of money laundering.
Also named in the Houston indictment is Siddiq Azeemuddin, 41, of Naperville, Illinois. He also faces charges of conspiracy to commit wire fraud, wire fraud and money laundering. Azeemuddin will appear today before U.S. Magistrate Judge Heather K. McShain of the Northern District of Illinois.
“Some fraudsters create the most complicated schemes to steal money from the taxpayer. Just imagine how productive they could be if they put their creativity and effort into noble and useful work,” said U.S. Attorney Ryan K. Patrick. “With the great work of so many partner agencies, we will bring to justice those who steal from the treasury.”
“These defendants allegedly participated in a scheme to capitalize on the pandemic by filing at least 80 fraudulent PPP applications and enriching themselves by $16 million, spending it on luxury items such as a Porsche and Lamborghini automobiles,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue those who would seek to illegally exploit the ongoing national emergency for their own benefit.”
The indictment alleges all conspired to submit more than 80 fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In support of these fraudulent loan applications, they conspired to submit, and did submit, fraudulent bank records and/or fake federal tax forms, according to the charges. Some of the PPP loan applications were allegedly submitted on behalf of companies the defendants controlled.
Other loan applications were submitted on behalf of entities that third-parties allegedly owned, according to the indictment. In exchange for these, several of the defendants received large kickbacks, according to the charges.
The indictment further alleges the defendants laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks included some of the defendants and their relatives, according to the charges. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store - a cash checking company Azeemuddin owned.
The indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Azeemuddin’s business.
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said Special Agent in Charge (SAC) Sharon Johnson of the SBA-Office of Inspector General (OIG) Central Region. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“These defendants are alleged to have defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said SAC Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who seeks to take advantage of the pandemic to deliberately harm and deceive others for their own profit.”
“To support small and community banks, federal home loan banks can accept PPP loans as collateral when making loans to their members,” said SAC Catherine Huber of the Federal Housing Finance Agency (FHFA) - OIG, Central Region. “OIG is proud to work with our partners in law enforcement to prevent, detect and deter attempts to perpetrate fraud in the federal home loan bank system and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
“Today’s indictment describes significant abuse of public funds meant for struggling American businesses and families,” said SAC Laurie L. Younger of the Federal Deposit Insurance Corporation (FDIC) - OIG. “This alleged fraud represents substantial, egregious and coordinated actions that undermine faith in our financial systems and programs enacted by Congress to help our nation recover from economic damage brought on by COVID-19. We thank our law enforcement partners for their cooperation in this investigation.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department Justice and our law enforcement partners in this effort.”
Federal agents also executed 45 seizure warrants in conjunction with the case. Some of items seized included a Porsche and a Lamborghini allegedly purchased with illegally obtained funds.
This is an ongoing investigation. If the public has further information regarding this fraud, please contact the Department of Homeland Security at 1-866-DHS-2-ICE.
The CARES Act is a federal law enacted on March 29, 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 the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April, Congress authorized 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 one 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 on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
SBA-OIG, HSI, FHFA-OIG, FDIC-OIG and TIGTA are conducting the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Charged in Connection with a COVID-Relief Fraud Scheme Involving more than 80 Fraudulent Loan Applications Worth Approximately $16 MillionRead the Press Release
Seven individuals across two states were charged in an indictment unsealed today for their alleged participation in a scheme to obtain approximately $16 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Amir Aqeel, 52, and Pardeep Basra, 51, both of Houston, Texas; Rifat Bajwa, 51, of Richmond, Texas; Mayer Misak, 40, of Cypress, Texas; Mauricio Navia, 41, of Katy, Texas; and Richard Reuth, 57, of Spring, Texas, are expected to make their initial appearances today before U.S. Magistrate Judge Andrew M. Edison.
They are all charged with conspiracy to commit wire fraud and wire fraud. The indictment also charges Aqeel with three counts of money laundering.
Also named in the Houston indictment is Siddiq Azeemuddin, 41, of Naperville, Illinois. He also faces charges of conspiracy to commit wire fraud, wire fraud and money laundering. Azeemuddin will appear today before U.S. Magistrate Judge Heather K. McShain of the Northern District of Illinois.
“These defendants allegedly participated in a scheme to capitalize on the pandemic by filing at least 80 fraudulent PPP applications and enriching themselves by $16 million, spending it on luxury items such as a Porsche and Lamborghini automobiles,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue those who would seek to illegally exploit the ongoing national emergency for their own benefit.”
“Some fraudsters create the most complicated schemes to steal money from the taxpayer. Just imagine how productive they could be if they put their creativity and effort into noble and useful work,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “With the great work of so many partner agencies, we will bring to justice those who steal from the treasury.”
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (OIG) Central Region. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“These defendants are alleged to have defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who seeks to take advantage of the pandemic to deliberately harm and deceive others for their own profit.”
“To support small and community banks, Federal Home Loan Banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency (FHFA) OIG, Central Region. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
“Today’s indictment describes significant abuse of public funds meant for struggling American businesses and families,” said Special Agent in Charge Laurie L. Younger of the Federal Deposit Insurance Corporation (FDIC) OIG. “This alleged fraud represents substantial, egregious, and coordinated actions that undermine faith in our financial systems and programs enacted by Congress to help our nation recover from economic damage brought on by COVID-19. We thank our law enforcement partners for their cooperation in this investigation.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the Coronavirus Aid, Relief, and Economic Security Act,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
The indictment alleges all conspired to submit more than 80 fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In support of these fraudulent loan applications, they conspired to submit, and did submit, fraudulent bank records and/or fake federal tax forms, according to the charges. Some of the PPP loan applications were allegedly submitted on behalf of companies the defendants controlled.
Other loan applications were submitted on behalf of entities that third-parties allegedly owned, according to the indictment. In exchange for these, several of the defendants received large kickbacks, according to the charges.
The indictment further alleges the defendants laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks included some of the defendants and their relatives, according to the charges. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a cash checking company Azeemuddin owned.
The indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Azeemuddin’s business.
Federal agents also executed 45 seizure warrants in conjunction with the case. Some of items seized included a Porsche and a Lamborghini allegedly purchased with illegally obtained funds.
This is an ongoing investigation. If the public has further information regarding this fraud, please contact the Department of Homeland Security at 1-866-DHS-2-ICE.
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 one 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 on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA-OIG; HSI; FHFA-OIG; FDIC-OIG and TIGTA. Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Second Virgin Islands Woman Convicted in Tax Fraud SchemeRead the Press Release
St. Croix, USVI – After a five-day trial, a federal jury today found Patricia Henry, age 52, of St. Croix, guilty of conspiracy to defraud the United States, United States Attorney Gretchen C.F. Shappert announced. Henry faces up to 10 years in prison on the conviction plus a fine of up to $250,000.
According to evidence presented at trial, Henry, her daughter Phiona Henry, and others participated in a scheme to unlawfully obtain money from the United States treasury by fraudulently acquiring federal income tax refunds during the period from 2010 to 2013. The scheme involved the acquisition of personal identifying information used to electronically file falsified tax returns for tax years 2009 through 2012. Henry aided others in the filing of tax returns in individuals’ true names and actual social security numbers but falsified the individuals’ income earned, tax withholding amounts, credits, and other information, and thereby claimed refunds to which they were not entitled. Persons involved in the scheme designated bank accounts for receipt of the refunds, which, once received, they subsequently withdrew. As a result of the scheme, three tax returns were filed in the name of Patricia Henry. On those returns, a total of $29,295 was designated to Patricia Henry’s and Phiona Henry’s bank accounts. Evidence at trial indicated that $8,918 was deposited into Patricia Henry’s account and $10,068 was deposited into Phiona Henry’s account. An additional $106,382 was also deposited into Phiona’s bank account.
Phiona Henry entered a guilty plea in this case on May 3, 2019 and is pending sentencing.
The prosecution of this fraud scheme is the result of years of investigative work by the Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews, Jr. and Melissa Ortiz.
Plea: Wichita Woman Took 17-year-old Across State Lines for ProstitutionRead the Press Release
WICHITA, KAN. – A Wichita woman pleaded guilty today to a federal charge of taking a minor across state lines for prostitution, U.S. Attorney Stephen McAllister said.
Taylor Kinsey, 22, Wichita, Kan., pleaded guilty to one count of interstate transportation for prostitution. In her plea, she admitted she recruited a 17-year-old victim to engage in prostitution. Kinsey transported the minor from Wichita to Oklahoma City to engage in commercial sex acts.
Sentencing is set for Feb. 5. Both parties have agreed to recommend a sentence of 90 months in federal prison. McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Plattsburgh Man Sentenced to 60 Months for Cocaine TraffickingRead the Press Release
ALBANY, NEW YORK – Nathan A. Hart, age 25, of Plattsburgh, New York, was sentenced today to 60 months in prison for cocaine trafficking.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea on February 11, 2020, Hart admitted that from February 14, 2017 through June 3, 2019, he worked with a drug trafficking organization that trafficked cocaine from Massachusetts to the Plattsburgh area for distribution. During his involvement in the conspiracy, Hart admitted to selling approximately 1.5 kilograms of cocaine.
Chief United States District Court Judge Glenn T. Suddaby also sentenced Hart to a 4-year term of supervised release, to begin following his term of imprisonment.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pittsburgh Man Pleads Guilty to Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of theft of government money, Social Security fraud, and Social Security representative payee misuse, United States Attorney Scott W. Brady announced today.
John Robert Mahoney, age 53, of pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Mahoney applied to the Social Security Administration (SSA) be the representative payee for his minor child and receive Social Security Title II survivor benefits and Title XVI Supplemental Security Income (SSI) benefits on her behalf. As a representative payee, Mahoney was required to report to the SSA if his child left his household and was required to use SSA funds for the child’s benefit or save them.
In October 2015, Mahoney’s child was removed from his custody, and he failed to report the removal to the SSA as required. Mahoney continued to receive Title XVI payments on behalf of the child until December 2017 and Title II payments until April 2018. He also submitted a Representative Payee Report to SSA in which he falsely stated that the child had resided with him the prior year. Mahoney used money he received from SSA to pay his rent rather than for the child’s benefit. The overpayment by the SSA to Mahoney was $22,611.62.
Judge Bissoon scheduled sentencing for March 9, 2021. For the offense of theft of government money, the law provides for a maximum sentence of not more than 10 years in prison, a fine of $250,000, or both. For each offense of Social Security fraud and Social Security representative payee misuse, the law provides for a maximum sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
Pittsburgh Man Charges with Drug and Gun Law OffensesRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Kendre Cain, 22, as the sole defendant.
According to the Indictment, on or about May 20, 2020, the defendant possessed fentanyl with the intent to distribute and a firearm, after being convicted of a crime punishable by more than one year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. The Indictment further alleges that the firearm, which had an obliterated serial number, was possessed in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of life in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant remains incarcerated pending the resolution of the case.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Odanah Man Receives 48-month Prison Sentence for Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Justin Moore (age: 34), a former resident of the Menominee Indian Reservation, was sentenced to federal prison for Domestic Assault by Strangulation. Moore, an enrolled member of the Bad River Band of the Lake Superior Chippewa Indians, pleaded guilty to the charge on August 7, 2020. At a hearing on November 16, 2020, Senior United States District Judge William C. Griesbach imposed a total sentence of 48 months in prison, followed by 36 months on supervised release.
According to court records, on December 1, 2019, Moore strangled a woman, with whom he was involved in a domestic relationship, while at a residence in Keshena, which is on the Menominee Indian Reservation. The woman sustained injuries during the incident that required medical attention.
In sentencing Moore, Judge Griesbach observed that Moore engaged in a “cruel” offense, made even more aggravated by the presence of children. Judge Griesbach noted Moore’s “tormenting” of the victim and her child “cries out for severe punishment.” Judge Griesbach emphasized the need to protect the public from the defendant and observed the need to deter others who might consider engaging in violence against women.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Ohio Man Arrested and Indicted for Burglary Heist of Brookfield Jeweler Resulting in $7 Million LossRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on November 3, 2020, James Patrick Quinn (age: 55) of Youngstown, Ohio, was charged by criminal complaint for his involvement in the July 12, 2016, burglary of Treiber & Straub Jewelers in Brookfield, Wisconsin. Quinn was arrested on November 10, 2020, and a federal grand jury returned a three-count indictment against Quinn on November 17, 2020.
According to the charging documents, three disguised individuals broke into Treiber & Straub Jewelers in Brookfield, Wisconsin, breached the store’s vault, and took a large quantity of goods and merchandise. The three burglars were captured by surveillance video. They cut communications lines and disabled exterior lighting and alarms to evade detection, and forced their way inside the store. The indictment alleges that Quinn and his co-actors conspired to carry out this burglary, and to transport and sell the stolen proceeds of the theft in interstate commerce. As part of the conspiracy, Quinn allegedly traveled to Wisconsin on at least two occasions, and returned to Ohio shortly after the burglary. According to the complaint, the value of the jewelry, diamonds, watches, and other valuables taken was estimated at over $7 million.
The complaint further alleges that Quinn possessed and attempted to conceal materials connected to gemstones that were taken during the burglary, and that a smartphone belonging to Quinn contained location information placing the device in the Brookfield area in the hours before the burglary. The indictment charges Quinn with Conspiracy to Commit Offenses against the United States, Transportation of Stolen Goods, and Sale or Receipt of Stolen Goods. If convicted, he faces a maximum of five years’ imprisonment for the conspiracy count, as well as ten years’ imprisonment on each of the stolen property counts.
“As alleged, Quinn and his co-actors engaged in a sophisticated, high-stakes heist,” said U.S. Attorney Krueger. “The charges resulted from excellent cooperation and dogged investigation by the FBI and its state and local law enforcement partners.”
FBI Special Agent in Charge, Robert Hughes said “The FBI has a long history of working with our law enforcement partners to investigate multimillion dollar criminal enterprises. I commend the efforts our special agents and local police departments in working collaboratively, interstate to bring those responsible to justice
This matter is being investigated by the Federal Bureau of Investigation and Brookfield (WI) Police Department, with assistance from the Canfield (OH) Police Department, Boardman (OH) Police Department, and Ohio Bureau of Criminal Investigation. It will be prosecuted by Assistant U.S. Attorneys Laura Kwaterski and Farris Martini.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
OECD Working Group on Bribery Issues Report Commending United States for Maintaining Leading Role in the Fight Against Transnational CorruptionRead the Press Release
The Working Group on Bribery of the Organisation for Economic Co-operation and Development (OECD Working Group) issued its Phase 4 Report of the United States today, announced the U.S. Departments of Justice, Commerce, State, and the Securities and Exchange Commission (SEC).
The Phase 4 Report is part of the OECD Working Group’s peer monitoring process and focuses primarily on the United States’ enforcement of its foreign bribery statute, the Foreign Corrupt Practices Act (FCPA), and was issued following a year-long review that included a series of interviews with government, private sector, academic, and civil society experts. In releasing the report, the 44-country OECD Working Group applauded the United States for its sustained and outstanding commitment to enforcing its foreign bribery laws.
The report highlights the United States’ increasing foreign bribery enforcement level since the OECD Working Group’s Phase 3 Report in 2010. As provided in the Phase 4 Report, between September 2010 and July 2019, through the Justice Department and the SEC’s efforts, the United States convicted or sanctioned 174 companies and 115 individuals for foreign bribery and related offences under the FCPA. The report indicates that this achievement resulted from a combination of enhanced expertise and resources to investigate and prosecute foreign bribery, the enforcement of a broad range of offences in foreign bribery cases, the effective use of non-trial resolution mechanisms, and the development of published policies to incentivize companies’ cooperation with law enforcement agencies.
Established in 1994, the OECD Working Group is responsible for monitoring the implementation and enforcement of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the 2009 Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions, and related instruments. Made up of representatives from the 44 countries that are signatories to the OECD Convention, the OECD Working Group meets four times per year, conducts peer-review country monitoring in successive phases, and publishes all of its country monitoring reports online. The OECD Working Group has been instrumental in leading global efforts to fight bribery of foreign officials. Further, the OECD Working Group’s law enforcement officers’ meetings serve an important role in fostering contacts between global law enforcement officials who focus on foreign bribery matters.
The full Phase 4 Report of the United States can be found at: /media/1105316/dl?inline.
The Fraud Section is responsible for investigating and prosecuting all criminal FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Nine defendants named in 42-count federal indictment for operation of south Georgia drug trafficking organizationRead the Press Release
BRUNSWICK, GA: Nine defendants have been accused in a federal indictment unsealed in U.S. District Court of operating a drug trafficking operation in multiple south Georgia counties.
The indictment includes charges of Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, and an amount of cocaine and marijuana, along with illegal firearms charges, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a possible penalty of up to life in prison, and there is no parole in the federal system.
Once the indictment was unsealed, seven of the nine defendants were remanded to custody of the U.S. Marshals Service after arraignment before U.S. District Court Magistrate Judge Benjamin Cheesbro. Of the other two defendants, one is a fugitive, and one was physically unable to appear in court, said U.S. Attorney Bobby L. Christine.
“This operation represents not only the mop-up from a previous drug trafficking prosecution in south Georgia, but also serves as a warning to those who distribute poison in our communities: We’re coming for you,” said U.S. Attorney Christine. “Our law enforcement partners continue to perform exemplary work in identifying, infiltrating and dismantling these multi-jurisdiction drug trafficking operations.”
As described in court documents and testimony, the operation targeted an organization that transported methamphetamine, cocaine and marijuana from the Atlanta area into Appling, Coffee and Telfair counties, and other areas in south Georgia, for street-level distribution from at least April 2018 through May 2020.
Each of the nine defendants is charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, and an amount of cocaine and marijuana. Those named in the indictment and their additional charges are:
- James Lamount Graham, a/k/a “JT Money,” a/k/a “James Livingston,” 47, of Jacksonville, Ga., also charged with two counts of Distribution of Methamphetamine; and 34 counts of Use of Communication Facility, a charge that describes using telephones to facilitate the drug-trafficking conspiracy;
- James Diangelo Gibbs, a/k/a “Big Lope,” 46, of Baxley, Ga., also charged with Distribution of Marijuana; and four counts of Use of Communication Facility;
- Sandrell Maurice Hobbs, 35, of Douglas, Ga., also charged with two counts of Distribution of Methamphetamine; and four counts of Use of Communication Facility;
- Deandra Laroy Graham, a/k/a “Bird,” 35, of McRae, Ga., also charged with six counts of Use of Communication Facility;
- Montoya Latse Eady, a/k/a “Mon,” 40, of McRae, Ga., also charged with four counts of Use of Communication Facility;
- Robert Livingston, 53, of Jacksonville, Ga., also charged with Possession of a Firearm by a Convicted Felon; and one count of Use of Communication Facility;
- Angela Leroy Livingston, 51, of Jacksonville, Ga., also charged with two counts of Use of Communication Facility;
- Willie Lee Batten, 59, of Jacksonville, Ga., also charged with Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and seven counts of Use of Communication Facility; and,
- Darrell Lynn Veal, 55, of Helena, Ga., also charged with two counts of Use of Communication Facility.
Sandrell Maurice Hobbs currently is a fugitive with an outstanding warrant for his arrest.
“Methamphetamine, cocaine and marijuana are dangerous drugs that pose a clear and present danger to the community,” said Robert J. Murphy, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) Atlanta Field Division. “Because of collaborative partnerships between DEA and its law enforcement partners, these defendants can no longer poison communities in south Georgia and elsewhere.”
“Illegal drugs have no place in Georgia. They are dangerous and threaten the safety of our communities,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It is being investigated by the U.S. Drug Enforcement Administration, the Georgia Bureau of Investigation, the Appling County Sheriff’s Office, the Telfair County Sheriff’s Office, the McRae Police Department, and the Douglas Police Department. The case is being prosecuted for the United States by Assistant U.S. Attorneys John Harper and Karl Knoche.
Nanty Glo Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – A resident of Nanty Glo, Pa., was indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Seth Long, 35, as the sole defendant.
According to the Superseding Indictment presented to the court, on or about June 3, 2020, Long was found in possession of numerous firearms and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Further, on or about June 3, 2020, Long possessed with intent to distribute quantities of a mixtures and substances containing detectable amounts of methylenedioxymethampehtamine (MDMA), heroin, lysergic acid diethylamide (LSD), methamphetamine, morphine, phencyclidine (PCP), cocaine and ketamine.
The law provides for a minimum sentence of 5 years up to life in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations, United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pennsylvania State Police conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
More Than 170 Charged Following A Large-Scale Human Trafficking InvestigationRead the Press Release
TALLAHASSEE, FLORIDA – More than 170 total arrests have been made on charges ranging from solicitation of prostitution to human trafficking of a minor. Nineteen defendants have been indicted on federal charges as a result of a two-year, multi-agency investigation led by the Tallahassee Police Department. Lawrence Keefe, United States Attorney for the Northern District of Florida, Tallahassee Police Chief Lawrence E. Revell, and Lorena Bueno, Assistant State Attorney for the 2nd Judicial Court, made the announcement at a press conference in Tallahassee, Florida.
“The victims of sex-trafficking crimes need our help,” said U.S. Attorney Keefe. “As a society, we must all do our part to be there for them in any way that we can. For so long as I am the United States Attorney, I will do everything I can to contribute to multi-agency efforts, to make federal resources available, and to assist your State Attorney, your police department and your sheriff as they protect our children and guard this community.”
According to Chief Revell, the investigation began in November 2018 when investigators from Tallahassee Police Department (TPD) saw that images of a minor were being posted on a website advertising sex for money. The investigation, dubbed Operation Stolen Innocence, uncovered an enormous amount of electronic evidence that required months to evaluate. This electronic evidence allowed investigators to further develop the scope and extent of the case. As a result, 72 suspects were charged with misdemeanors and notices to appear while 106 suspects were charged with felonies. Of that 106, 19 defendants face federal felony charges.
“This investigation is a testament to how diligent our investigators work to enhance the quality of life for everyone in this community, especially our vulnerable population. They worked tirelessly to bring justice to the victim in this case and were able to make an unprecedented number of human trafficking related arrests,” Chief Revell said. “I could not be prouder of the steadfast efforts of our investigators and the joint effort with our partners to stop the illegal and dehumanizing practice of human trafficking.”
The federal charges in this case include enticement and coercion of a minor to engage in sexual activity, enticement and coercion of a minor to engage in prostitution, production and/or receipt of child pornography, transfer of obscene material to a minor, sex trafficking a minor, and conspiracy to sex traffic a minor.
“It is difficult to comprehend the depravity of these criminals who prey on the most innocent in our society,” said Kevin Sibley, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Tampa Field Office. “Thanks to the collective efforts of the Tallahassee Police Department and HSI special agents, our local communities are significantly safer today as a result of this investigation.”
These cases resulted from investigations by the Tallahassee Police Department, the Department of Homeland Security Investigations, the U.S. Marshal Service, the Florida Department of Law Enforcement, and the Leon County Sheriff’s Office. The federal cases are being prosecuted by Assistant United States Attorney Michelle Spaven.
An indictment is merely an allegation by a grand jury 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 a fair trial, during which it will be 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 - Operation Stolen Innocence USA Keefe Remarks - Operation Stolen InnocenceMobile Man Pleads Guilty to Producing Child PornographyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Sean Michael Howell, age 21, of Mobile, Alabama, entered a guilty plea to two counts of production of child pornography. Howell faces a minimum mandatory sentence of fifteen years in prison, and a maximum of 60 years.
According to court documents filed in connection with his guilty plea, Sean Michael Howell was the manager at a roller skating rink in Saraland and met two pre-adolescent boys through his work. The defendant offered the boys free skating if they would stay behind after the rink closed and he would regularly engage in sex acts with them at the rink. He also took the two boys to a motel in Mobile and sodomized the victims there. One of the boys disclosed the abuse to his mother, who reported it to police. The Saraland Police Department took a statement from Howell, and he admitted to engaging in sex acts with the children and to photographing those acts.
The defendant’s cell phone was seized and searched. On the phone were numerous photos of adolescent and pre-adolescent boys, and many of the images were sexually explicit. There were recordings of video chats with as-yet-unidentified pre-pubescent boys in which Howell directed them to perform various sexually explicit actions. His phone also contained videos documenting the abuse of the two boys from the skating rink.
Howell was arrested by Saraland Police Department on December 16, 2018. In a recorded phone call with his father, he said, “I did it all, Dad. They saw the videos.”
Howell will be sentenced by Judge Callie V.S. Grenade on February 10, 2021.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
This case was investigated by the Saraland Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office and AUSAs Maria E. Murphy and Kacey Chappelear.
Middlesboro Man Convicted of Child Pornography ChargesRead the Press Release
LONDON, Ky. – A Middlesboro firefighter was convicted late Monday, by a federal jury sitting in London, of receiving and possessing child pornography, on a Middlesboro Fire Department laptop.
The jury convicted Robert Christopher England, 35, after 30 minutes of deliberations, following a five-day trial.
According to the evidence at trial, England received child pornography on three separate occasions and possessed a collection of over 600 images, between April of 2017 and June 23, 2018. England’s fire department laptop was seized, on June 23, 2018, by the Middlesboro Police Department. At the time, England was serving as a Lieutenant within the Middlesboro Fire Department. A forensic review conducted by the Kentucky State Police Electronic Crimes Branch showed evidence of dark web access via Tor Browser and child pornography “playlists” created in ManyCam, a web conferencing program.
England was indicted in October of 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, James R. Brown, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Acting Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the jury’s verdict.
The investigation was conducted by the FBI and the Kentucky State Police Electronic Crimes Branch. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
England will appear for sentencing, before U.S. District Judge Claria Horn Boom, on March 16, 2021. He faces a maximum of 20 years in prison for each count. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Member of New Bedford Latin Kings Pleads Guilty to Being a Felon in Possession of a Firearm Following Robbery and Shooting InvestigationsRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to being a felon in possession of a firearm and ammunition following an investigation into an armed robbery in New Bedford and a shooting in Boston in April 2020.
Ramon Martinez, a/k/a “King Razor,” 26, pleaded guilty to being a felon in possession of a firearm. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 11, 2021. In July 2020, Martinez was charged by criminal complaint.
On April 30, 2020, an individual in New Bedford was robbed and punched by two men who were in a black Ford Fusion. The men put a knife to the victim’s back and stole his wallet and motorized scooter. The victim was targeted because he beeped his horn at a friend and the men in the Ford Fusion believed that the victim was honking at them. Martinez, a known member of the Latin Kings, was later identified as one of the robbers and a warrant issued for his arrest.
Also on April 30, 2020, police responded to a report of shots fired in the area of Callender Street in Boston where three .45 caliber casings were recovered. Martinez’s SnapChat account included postings related to this shooting incident.
On May 7, 2020, police witnessed Martinez exit a residence on Crapo Street in New Bedford and walk to the rear of a black Ford Fusion. They observed Martinez open the trunk and quickly close it, and then get into a nearby vehicle. Officers stopped the vehicle, placed Martinez under arrest for the April 30th armed robbery and located a set of keys for the Ford Fusion. In the trunk of the Fusion, a Glock Model 30S .45 caliber firearm with four rounds of ammunition was recovered. Ballistics testing matched the Glock Model 30S to the casings recovered on Callender Street.
Due to prior felony convictions, Martinez is prohibited from possessing firearms. Martinez was also known to investigators to be a member of the New Bedford Chapter of the Latin Kings.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Charges related to the armed robbery in New Bedford remain pending in Bristol Superior Court and are being prosecuted by the Bristol County District Attorney’s Office.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; New Bedford Police Chief Joseph C. Cordeiro; and Boston Police Commissioner William Gross made the announcement today. Valuable assistance was also provided by the Bristol County District Attorney’s Office. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is 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.
Member of New Bedford Latin Kings Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug conspiracy charges.
Ines Lugo, a/k/a “Queen China,” 42, pleaded guilty to conspiracy to distribute cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 24, 2021. Lugo was charged in December 2019, at which time she was identified as a member of the New Bedford Chapter of the Latin Kings.
During the plea proceedings, Lugo admitted that she conspired with other Latin Kings members and leaders to possess cocaine base (also known as “crack cocaine’) with the intent to distribute it. Specifically, in August 2019 she conspired with others to obtain cocaine base from members of the Latin Kings in New Bedford for resale. On Aug. 24, 2019, Lugo was captured on video delivering cocaine base to another Latin Kings member in a trap house.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Ines Lugo is the 20th defendant to plead guilty in the case.
The charge of conspiring to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Melbourne Man Sentenced for Collier County Bank RobberiesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Richard Paul Cote (53, Melbourne) to 15 years and 8 months in federal prison for committing two bank robberies in Collier County. The court also ordered Cote to pay $5,134 in restitution to the victim banks.
Cote had pleaded guilty on February 10, 2020.
According to court documents, on June 11, 2019, Cote robbed the Bank of America located at 12965 Collier Boulevard in Naples. One week later, Cote robbed the Lake Michigan Credit Union located at 8635 Collier Boulevard in Naples. During each robbery, Cote gave notes to tellers demanding money. The victim tellers complied with the notes and provided money to Cote. Cote left behind a small folio on the teller counter of the Lake Michigan Credit Union, which ultimately led to his identification and arrest by the Collier County Sheriff’s Office.
This case was investigated by the Federal Bureau of Investigation and the Collier County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Martinsburg Federal Grand Jury indicts four in kidnapping and murder caseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four Maryland residents are facing charges involving kidnapping and murder, U.S. Attorney Bill Powell announced.
The 9-count indictment involves a kidnapping and murder, as well as the murder of two witnesses. Those indicted are:
• Monroe Merrell, 23, of Westminster, Maryland
• David Ray Sanford, Jr., 26, of Westminster, Maryland
• John Westley Black, III, 23, of Westminster, Maryland
• Jeffrey Craig Smith, Jr., 23, of Taneytown, Maryland“This is one of the most heinous crimes I’ve seen, where three people lost their lives for what appears to have begun as a $40 debt. These crimes will be aggressively prosecuted. We owe that to the families of the victims and the citizens who count on us to do so. I want to thank the prosecutors in Berkeley and Jefferson Counties, the Carroll County Maryland States Attorney’s office, the multiple local and federal law enforcement agencies involved in the investigation and my office’s prosecution team who tirelessly worked to bring the indictment before the federal grand jury. I am confident that this exceptional group effort will result in a just conclusion of this tragic case,” said Powell.
Merrell, Sanford, and Black are each facing one count of “Aiding and Abetting Kidnapping Resulting in Death,” one count of “Conspiracy to Commit Kidnapping,” and one count of “Aiding and Abetting Corrupt Destruction of Object” involving the kidnapping and murder of J.R. in March 2020 in Jefferson County. Smith is charged with one count of “Accessory After the Fact” for allegedly assisting Merrell and Sanford, after the kidnapping and murder occurred.
Merrell, Sanford, and Smith are each facing one count of “Conspiracy to Commit Tampering with a Witness Causing Death” and two counts of “Aiding and Abetting Tampering with a Witness Causing Death” involving the murders of D.T. and H.G. who were witnesses of crimes against J.R. The murders occurred in April 2020 in Berkeley County.
Merrell and Sanford are also each facing one count of “Aiding and Abetting Intimidation of a Witness by Threats.” Merrell is facing one count of “Solicitation to Commit a Crime of Violence.”
“These indictments demonstrate the continuing commitment of federal, state and local law enforcement officials to work together to combat violent crime in the Martinsburg area,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The deaths of three people were a tragic occurrence, and I’m glad the collaborative effort put forth by all agencies has resulted in these charges. The kidnapping and murder allegations in this complaint reveal an indifference to human life that will not be tolerated.”
Assistant U.S. Attorneys Kimberley D. Crockett and Jeffrey A. Finucane are prosecuting the case on behalf of the government. The Federal Bureau of Investigation, Jefferson County Sheriff’s Office, Maryland State Police, Carroll County State’s Attorney’s Office, and the Berkeley and Jefferson County Prosecuting Attorneys’ Offices. investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Woman Pleads Guilty to Aiding and Abetting Drug DistributionRead the Press Release
CONCORD - Quinn Pollock, 31, of Manchester, pleaded guilty in federal court to aiding and abetting the distribution of controlled substances, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 24 and June 26, 2019, Pollock and her co-defendant participated in two drug transactions with confidential sources who were working with law enforcement. These transactions involved methamphetamine and fentanyl.
Pollock is scheduled to be sentenced on February 23, 2021.
“The distribution of methamphetamine and fentanyl has been a scourge for New Hampshire communities” said U.S. Attorney Murray. “Manchester has been especially hard hit. Through Operation SOS, we are working with the Manchester Police Department to target and prosecute the drug dealers who threaten the health and safety of the hardworking people of the Queen City.”
“Ms. Pollock’s criminal behavior will not be tolerated in the city of Manchester,” said Manchester Police Chief Allen Aldenberg. “Her actions put others in danger and anytime we can take someone like that off the streets, we consider it a victory. The Manchester Police Department worked hard on this case and I am very pleased with this outcome.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Madison Felon Sentenced to 15 Years for Armed Robbery, Drug & Gun ChargesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeremiah Edwards, 34, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to a total of 15 years in federal prison.
On February 13, 2020, a jury found Edwards guilty of armed robbery of an O’Reilly Auto Parts store, brandishing a firearm during that crime, being a felon in possession of a firearm, possessing THC-products with an intent to distribute, and possessing a firearm in furtherance of the drug trafficking crime. The jury reached its verdict after 7 hours of deliberations following four days of testimony in federal court in Madison.
The evidence presented at trial showed that Edwards, along with Kanasha Woods, robbed the O’Reilly Auto Parts Store at 1826 S. Stoughton Road in the Town of Blooming Grove in Dane County, on November 8, 2018. Both Edwards and Woods brandished firearms during the robbery and obtained cash from the safe and cash register drawers. Edwards and Woods fled the scene and drove to the Moorish Science Temple in downtown Madison where Madison police officers attempted a traffic stop. Edwards evaded the stop and led the police in a high-speed chase through downtown Madison that ended with him crashing the vehicle, and fleeing the scene on foot.
During a search of the getaway vehicle, officers found the robbery proceeds, a ski mask and gloves used by Woods in the armed robbery, a receipt from Walmart showing the purchase of the mask and gloves, and a tactical light/laser that was on the firearm used by Edwards during the robbery. Officers also found a variety of marijuana and THC products and marijuana in individually packaged portions, as well as multiple THC vape cartridges, THC oil, and THC edibles. These products contained home-made labels with skull & crossbones in the names of “OG” and “LK.” During a second search of the vehicle, officers found a loaded 9mm Glock 19 semi-automatic pistol along with a black stocking hat with a green Moorish star on it. Both of these items were found in a hidden compartment in the ceiling of the vehicle behind a sunglasses holder. Analysts from the Wisconsin State Crime Lab in Madison testified that the Glock 19 and the black stocking hat contained Edwards’s DNA, and that the drugs found in the Mitsubishi Outlander contained THC, which is a Schedule I controlled substance. The government also presented evidence that four hours after the robbery, Edwards drained his bank account at an ATM in a laundromat located just 1 mile from the crash site, and fled to Chicago using a fake ID. He was arrested in Chicago on March 11, 2019.
At today’s sentencing, Edwards accused the police, prosecutors, judge and jury of being racists for allowing the conviction of an innocent Black man. Judge Peterson took issue with Edwards’s comments and noted that he has no doubt that Edwards is guilty, and that Edwards committed very serious crimes including an aggressive armed robbery followed by a getaway that involved unsafe driving resulting in a car crash. Judge Peterson also explained to Edwards that his armed robbery not only impacted the three victims in the store, but he also exploited a confused and vulnerable young woman to be his accomplice. Judge Peterson added that Edwards failed to take responsibility for his actions, and his trial strategy involved a false alibi where he convinced a different woman to supply the FBI with falsified evidence to support the fabricated alibi.
In choosing a sentence of 15 years, Judge Peterson told Edwards that his primary task in imposing such a long sentence was to incapacitate Edwards and protect the public from Edwards. Judge Peterson pointed out that Edwards had a prior felony conviction for robbery and then engaged in another armed robbery in a very aggressive manner that put people in danger.
Federal law requires that the mandatory 7-year and 5-year gun sentences be served consecutively to each other, and to the sentence imposed on the robbery charge, the drug charge, and the felon in possession charge.
The charges against Edwards and Woods are the result of an investigation by the Dane County Sheriff’s Office, the Madison Police Department, and the Federal Bureau of Investigation. The prosecution of the case was handled by Assistant United States Attorneys Chadwick M. Elgersma and Daniel J. Graber.
Lewiston Man Sentenced for Crack Cocaine TraffickingRead the Press Release
PORTLAND, Maine: A Lewiston man was sentenced yesterday in federal court in Portland for distributing cocaine base, also known as crack cocaine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced James Robertson, 31, to eight years in prison and three years of supervised release. Judge Singal sentenced Robertson to a consecutive two year prison term because he also had violated his conditions of supervised release stemming from a 2016 federal drug trafficking conviction. Robertson pleaded guilty on October 2, 2019.
According to court records, on January 29, 2019, Robertson distributed cocaine base to a confidential informant in Lewiston. At the time of the offense, Robertson was on federal supervised release following his 2016 drug trafficking conviction. In imposing sentence, Judge Singal noted Robertson’s substantial criminal history, which placed him in the highest criminal history category under the federal sentencing guidelines.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewiston Police Department investigated the case.
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Kenyan Woman Pleads Guilty to Marriage Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kenyan national pleaded guilty in federal court today to her role in a marriage fraud conspiracy.
Fidelina Mwelu Mutisya, 61, of Winchester, Ohio, pleaded guilty before U.S. Magistrate Judge Lajuana M. Counts to one count of criminal conspiracy.
By pleading guilty today, Mutisya admitted that she participated in a conspiracy to enter into fraudulent marriages for the purpose of circumventing federal immigration laws in exchange for money.
Mutisya entered into a fraudulent marriage to a United States citizen on June 22, 2007, for the sole purpose of acquiring permanent resident status. She paid her citizen spouse $1,000 at the time of the wedding and approximately $100 per month afterward until the immigration process was complete. Mutisya admitted that she filed a form with U.S. Citizenship and Immigration Services falsely representing that her marriage was valid. She also advised her citizen spouse to continue to tell investigators that the marriage was legitimate, and to never disclose she paid him for the marriage.
Mutisya, who was admitted to the United States on a visitor (B-1) visa, is a lawful resident. Today’s felony conviction may have consequences with respect to her immigration status. Under federal law, a broad range of crimes are removable offenses, including the offense to which she pleaded guilty; however, removal and other immigration consequences are the subject of a separate proceeding.
Mutisya’s fraudulent marriage was arranged by Delmar Dixon of Kansas City, Missouri, who was convicted in a separate but related case. Dixon was sentenced on July 13, 2017, to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services.
Justice Department Alleges Conditions at Massachusetts Department of Corrections Violate the ConstitutionRead the Press Release
The Justice Department's Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts today concluded an investigation into conditions at the Massachusetts Department of Correction (MDOC).
The Justice Department concluded that there is reason to believe that the conditions violate the Eighth Amendment of the Constitution. The department concluded that there is reasonable cause to believe that the MDOC fails to provide constitutionally adequate supervision to prisoners in mental health crisis; fails to provide adequate mental health care to prisoners in mental health crisis; and violates the constitutional rights of prisoners in mental health crisis by using prolonged mental health watch under restrictive housing conditions. As a result of these failures and conditions, prisoners in mental health crisis have engaged in self-harm and have died or seriously injured themselves while on mental health watch.
“Our investigation revealed that MDOC fails to provide adequate mental health treatment to prisoners experiencing a mental health crisis and instead exposes them to conditions that harm them or place them at serious risk of harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Remedying these deficiencies promptly will ensure that we protect the constitutional rights of these vulnerable prisoners and promote public safety.”
“Our investigation found cause to conclude that the Massachusetts Department of Corrections fails to properly supervise and accommodate prisoners suffering from serious mental health issues,” said U.S. Attorney Andrew E. Lelling for the District of Massachusetts. “The conditions at MDOC facilities show how systemic deficiencies in prison facilities can compound each other and amount to constitutional violations. MDOC has cooperated with our investigation from the beginning and we look forward to working with state prison authorities to implement reform measures.”
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the MDOC with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
The Justice Department's comprehensive investigation involved review and analysis of documents, including policies and procedures, mental health records, incident reports, investigative reports, disciplinary reports, and training materials. The department also conducted tours of prison facilities and conducted interviews of administrative staff, security staff, mental health staff, and hundreds of prisoners.
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation in October 2018 under CRIPA, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The department is closing its investigation of geriatric and palliative medical care and restrictive housing other than the restrictive housing on mental health watch.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts. Individuals with relevant information are encouraged to contact the department via phone at (833) 223-1550 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at Massachusetts Department of Correction Violate the ConstitutionRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the Department of Justice’s Civil Rights Division have concluded an investigation into conditions at the Massachusetts Department of Correction (MDOC) and found reason to believe that the conditions violate the Eighth Amendment of the Constitution.
The Department determined that there is reasonable cause to believe that the MDOC fails to provide constitutionally adequate supervision to prisoners in mental health crisis; fails to provide adequate mental health care to prisoners in mental health crisis; and violates the constitutional rights of prisoners in mental health crisis by using prolonged mental health watch under restrictive housing conditions. As a result of these failures and conditions, prisoners in mental health crisis have engaged in self-harm and have died or seriously injured themselves while on mental health watch.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the MDOC with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them. The Department is closing the portion of the investigation related to restrictive housing and geriatric and palliative care.
“Our investigation found cause to conclude that the Massachusetts Department of Corrections fails to properly supervise and accommodate prisoners suffering from serious mental health issues,” said United States Attorney Andrew E. Lelling. “The conditions at MDOC facilities show how systemic deficiencies in prison facilities can compound each other and amount to constitutional violations. MDOC has cooperated with our investigation from the beginning and we look forward to working with state prison authorities to implement reform measures.”
“Our investigation revealed that MDOC fails to provide adequate mental health treatment to prisoners experiencing a mental health crisis and instead exposes them to conditions that harm them or place them at serious risk of harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Remedying these deficiencies promptly will ensure that we protect the constitutional rights of these vulnerable prisoners and promote public safety.”
The Department’s comprehensive investigation involved review and analysis of documents, including policies and procedures, mental health records, incident reports, investigative reports, disciplinary reports and training materials. The Department also conducted tours of prison facilities and conducted interviews of administrative staff, security staff, mental health staff and hundreds of prisoners.
The U.S. Attorney’s Office and the Civil Rights Division initiated the investigation in October 2018 under the CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Individuals with information are encouraged to contact the U.S. Attorney’s Office by phone at 888-221-6023 or via email at [email protected].
The notice letter is posted here and the report is posted here.
U.S. Attorney Lelling and AAG Dreiband made the announcement today. Assistant U.S. Attorneys Gregory Dorchak and Michelle Leung of Lelling’s Civil Rights Unit and Trial Attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division handled the matter.
Joint Statement by Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz ManeroRead the Press Release
Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz Manero issued today the following statement:
“On Oct. 15, 2020, former Mexican Secretary of National Defense General Salvador Cienfuegos Zepeda was arrested in Los Angeles, California, on U.S. charges of conspiracy to manufacture, import, and distribute narcotics into the United States and money laundering.
“The Mexican Fiscalía General de la República, upon learning of the arrest and U.S. charges against General Cienfuegos, opened its own investigation.
“In recognition of the strong law enforcement partnership between Mexico and the United States, and in the interests of demonstrating our united front against all forms of criminality, the U.S. Department of Justice has made the decision to seek dismissal of the U.S. criminal charges against former Secretary Cienfuegos, so that he may be investigated and, if appropriate, charged, under Mexican law.
“At the request of the Fiscalía General de la República, the U.S. Department of Justice, under the Treaty that governs the sharing of evidence, has provided Mexico evidence in this case and commits to continued cooperation, within that framework, to support the investigation by Mexican authorities.
“Our two countries remain committed to cooperation on this matter, as well as all our bilateral law enforcement cooperation. As the decision today reflects, we are stronger when we work together and respect the sovereignty of our nations and their institutions. This close partnership increases the security of the citizens of both our countries.”
Jefferson County man indicted on charges he conspired against the U.S. and sold machine gun conversion devicesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy John Watson, of Ranson, West Virginia, is facing charges of conspiracy against the U.S. Government and selling machine gun conversion devices to extremists, U.S. Attorney Bill Powell announced.
“The suspect in this case appears to have supplied hundreds of people with these conversion devices, some to people who want to do Americans harm. Federal law is very specific on these types of devices, and the safety of the public from extremists is one of our highest priorities. Detecting this business front for what it actually was is due to the excellent law enforcement work that I have the honor of seeing every day. The indictment only reflects the charges, and we look forward to meeting our burden of proof,” said Powell.
Watson, 30, was indicted today on one count of “Conspiracy to Commit Offenses against the United States,” one count of “Unlawfully Engaging in the Business of Manufacturing Machineguns,” one count of “Illegal Possession and Transfer of Machineguns,” and one count of “Possession of Unregistered Firearm Silencer.”
Watson is suspected of selling machinegun conversion devices online without having a license to do so. The devices, called “drop in auto sears,” convert semi-automatic AR-15 rifles to fully automatic machine guns. The indictment alleges that Watson was selling the devices on a website that appeared to be selling wall hangers. This portable wall hanger business is suspected of marketing to Boogaloo adherents, a loosely organized far-right, anti-government, and extremist political movement in the U.S.
“The FBI remains focused on the threat posed by domestic violent extremists,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The FBI’s Joint Terrorism Task Force works closely with our federal, state and local partners across the country to combat these serious threats. We cannot and will not allow these types of activities to inflict violence and harm to the American people.”
Watson faces up to five years of incarceration and a fine of up to $250,000 for the conspiracy count and faces up to 10 years of incarceration and a fine of up to $250,000 for each of the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher are prosecuting the case on behalf of the government. The FBI, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Postal Inspection Service continues its investigation.
This case falls with the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Alleges Rhode Island Man Stole and Then Sold Luxury Car Tires and RimsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging MICHAEL FARIAS, 54, of Providence, Rhode Island, with offenses related to his alleged role in a scheme to steal tires and rims from new vehicles at car dealerships in northeastern states and then sell the stolen items to individuals across the country.
The indictment was returned under seal on March 10, 2020, and Farias was arrested today. He appeared via videoconference before U.S. Magistrate Judge Robert M. Spector and was released on a $100,000.
As alleged in the indictment, between May 2015 and August 2018, Farias and others stole tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
The indictment charges Farias with one count of conspiracy to transport stolen property, an offense that carries a maximum term of imprisonment of five years, and one count of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
India-based VoIP provider and its director indicted for facilitating millions of scam robocalls to AmericansRead the Press Release
ATLANTA – A first-of-its-kind indictment was unsealed today against Indian-based Voice over Internet Protocol (VoIP) provider, E Sampark, and its Director, Gaurav Gupta, who pushed out tens of millions of scam calls to American consumers on behalf of India-based phone scammers. Pursuant to a consent permanent injunction, a federal court has also ordered a Florida-based server farm to stop providing E Sampark and Gupta with servers used to help perpetuate the fraud scheme. The consent permanent injunction seeks to prevent E Sampark and Gupta from further victimizing U.S. consumers through the use of the servers located in Florida.
“The defendants bombarded American consumers with scam calls, causing emotional and financial devastation, including to vulnerable and elderly individuals,” said U.S. Attorney Byung J. “BJay” Pak. “Those who facilitate fraudulent calls into the United States will be investigated and brought to justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said J. Russell George, the Treasury Inspector General for Tax Administration. “I wish to thank the U.S. Department of Justice and our law enforcement partners involved in this first-of-its-kind indictment. Taxpayers must remain cautious of unsolicited telephone calls from individuals claiming to be Internal Revenue Service employees. If any taxpayer believes they or someone they know has been a victim of an Internal Revenue Service impersonation scam, they should report it to the Treasury Inspector General for Tax Administration at tips.tigta.gov or by calling 1-800-366-4484.”
According to U.S. Attorney Pak, the Indictment, and the Complaint: Defendant Gaurav Gupta directed and operated E Sampark, d/b/a VG-Tech Serve Private Limited, a Voice Over IP (VoIP) company that allegedly sent calls from criminal India-based call centers to victims in the United States, both directly and through VoIP providers located in the United States. From May 2015 to June 2020, the defendants passed tens of millions of scam calls from India into the United States, leading to reported victim losses of over $20 million. The callers purported to be legitimate government agencies and businesses and misled victims over the phone. The callers allegedly used multiple frauds, including Social Security impersonation, IRS impersonation, and loan scams.
As part of a Social Security scam, India-based callers posed as federal agents in order to mislead victims into believing their Social Security number was involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to send cash to aliases used by other members of the fraud network, and to transfer funds via gift cards to the callers. In one instance in November 2019, the callers kept a Marietta, Georgia woman on the phone for over eleven hours while they convinced her that her Social Security number had been compromised, that there was a warrant for her arrest in Texas, and that she should tell no one about the purported investigation. The callers told the victim that her assets were going to be frozen and that she should purchase gift cards in order to protect her money. Per the callers’ directions, the victim went around Cobb County to purchase over $35,000 in gift cards, including Target, GameStop, Sephora, and Nordstrom gift cards. The callers had the victim provide them with the numbers on the back of the cards, which allowed them to steal the funds from her. E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the IRS impersonation scam, India-based callers posed as IRS or Treasury officials and defrauded the U.S. residents into believing they owed money to the IRS or would be arrested and fined if they did not pay alleged back taxes, fines, and fees immediately. For example in April 2017, a Georgia resident received numerous calls from an individual who claimed to work for the IRS. A caller told the victim that he owed $28,000 to the IRS in back taxes and that if he did not pay, he would be arrested. After the victim explained that he could not pay the full amount, the caller directed him to send two wire transfers for $500 and $1,990 to two aliases in order to resolve the issue. The victim followed the caller’s instructions, and the funds sent by wire transfer were retrieved by a co-conspirator in South Carolina. Again, E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the loan scam, India-based callers misled American consumers into believing that the callers worked for lending institutions and that the victims were eligible for fictitious loans. The India-based callers directed the victims to pay upfront fees to demonstrate their ability to repay the loan. At times, the callers directed victims to provide their bank account information and made it appear as though they had deposited funds into the victims’ accounts. The callers then told the victims to withdraw the funds and transfer them via wire transfer and gift cards. After the victims sent the funds, the deposits that the callers supposedly made bounced. The victims received nothing in return.
Defendants Gupta and E Sampark maintained approximately sixty servers in Florida that the company used at times to connect criminal India-based callers with American consumers. The servers contained over 130,000 recordings of scam calls, including robocall voicemail recordings and conversations between the India-based scammers and U.S.-based victims.
Northern District of Georgia Assistant U.S. Attorney, Jolee Porter, who is currently detailed to the DOJ’s Consumer Protection Branch, and Assistant U.S. Attorney Elizabeth McBath are prosecuting the criminal case. Northern District of Georgia Assistant U.S. Attorney Armen Adzhemyan is handling the civil injunction matter.
The U.S. Treasury Inspector General for Tax Administration (TIGTA), Fraud and Schemes Division is investigating the case, with the assistance of the Social Security Administration Office of Inspector General; Homeland Security Investigations; Department of Homeland Security Office of Inspector General; the Houston, Texas Police Department; and the Matagorda County, Texas Sheriff’s Office.
U.S. Attorney Pak thanked TIGTA for its investigation of the case, and the DOJ’s Consumer Protection Branch for their substantial coordination efforts. He also expressed appreciation to AT&T’s Global Fraud Management Organization for apprising the U.S. Attorney’s Office of the alleged offenses.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to IRS or Social Security, the agency will send a letter with payment options and appeal rights. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
The public is reminded that gift cards are for gifts, not for payments. If a stranger purporting to be a legitimate business or government agency demands payment with a gift card, hang up. Anyone who demands payment by gift card is a scammer. Once you buy the gift card, the callers typically demand the number on the back of the gift card. That number lets the caller immediately steal the money loaded onto the card. For more information, visit https://www.consumer.ftc.gov/articles/paying-scammers-gift-cards
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Illegal Alien Sentenced to 18 Months in Federal Prison for Re-Entering the United States After Being DeportedRead the Press Release
November 17, 2020
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4885
Illegal Alien Sentenced to 18 Months in Federal Prison for Re-Entering the United States After Being Deported
Previously Convicted in Federal Court of Sex Trafficking Offense; It Was the Fourth Time She Entered the United States Illegally
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Iris Martinez-Napper, age 47, a Guatemalan national residing in Prince George’s County, Maryland, to 18 months in federal prison, followed by three years of supervised release, for illegally re-entering the United States after being deported. Martinez-Napper was previously convicted in federal court of conspiracy to transport individuals interstate to engage in prostitution and had previously been deported twice—once in 2010 and then again in 2012.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
According to her plea agreement, Martinez-Napper first illegally entered the United States in or around 1999. On April 30, 2009, she was sentenced in Maryland to 32 months in federal prison for conspiracy to travel to transport at least 100 women from New York and New Jersey to Maryland for the purpose of employing them in prostitution. She was removed from the United States on July 29, 2010. Less than four months later, Martinez-Napper illegally re-entered the United States near Naco, Arizona. On September 19, 2011, she was sentenced in Arizona to 11 months in federal prison for illegal re-entry and on February 9, 2012, was removed from the United States for a second time. At some time after that, Martinez-Napper again illegally re-entered the United States and was found in Prince George’s County, Maryland. Martinez-Napper admitted that she has never sought, nor obtained, the consent of the Attorney General of the United States or the Secretary of Homeland Security to apply for readmission to the United States.
United States Attorney Robert K. Hur praised HSI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
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Gunman sentenced to 27 years for armed robberies that targeted Asian-run businessesRead the Press Release
ATLANTA – A federal judge has sentenced Tabyron Rashad Smith, the first of two gunmen convicted for robbing nine Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross in October and November 2017, to 27 years in prison.
“Smith and his fellow gunman, Dravion Sanchez Ware, terrorized, threatened, and injured their innocent victims,” said U.S. Attorney Byung J. “BJay” Pak. “This lengthy prison sentence hopefully provides some peace to the victims by ensuring Smith cannot terrorize anyone for decades to come.”
“Once again, the FBI would like to thank our many state and local law enforcement partners for helping to bring this month-long terror in the Asian business community to an end,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “To the victims, some of whom were shot and some of whom were pistol-whipped, your emotional scars can never be erased. But we can promise you these two men will not threaten you for a long, long time.”
“The GBI Crime Lab was instrumental in this case. Expert analysis and testimony helped lead to a successful prosecution. The GBI is committed to provide the highest quality forensic services in all cases. For over a month, these gang members targeted and terrorized the Asian business community. This sentence is evidence that this behavior will not be tolerated in the state of Georgia,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“The fact that Tabyron Smith has been sentenced is a win for the victims, metro-Atlanta, law enforcement and the criminal justice system,” City of Atlanta Interim Chief Rodney Bryant. “The collaborative efforts from multijurisdictional agencies is a testament to the hard work that goes into arresting, prosecuting and keeping hardened criminals off our streets. Additionally, I look forward to continuing collaborations to make our communities safe.”
“This effort highlights the great cooperation between our local and federal law enforcement partners. As a result of this combined effort this violent predator will no longer be a threat to the community,” said Chief Chuck Atkinson, Doraville Police Department.
“The successful outcome and sentencing of these cases is a testament of the importance of agencies working together. Unlike police departments, criminals are not bound by jurisdictional boundaries and these cases are proof that great things happen when agencies proactively share information, work together, and compare cases. The State of Georgia is now a safer place thanks to the cooperation between local, state, and federal partners that enabled the removal of these dangerous criminals from our communities,” said Chief Kenneth DeSimone. Sandy Springs Police Department.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between October 7 and November 10, 2017, Smith and Ware, both of whom are members of the Bloods, committed multiple armed robberies of Asian-run businesses in Metro-Atlanta. Smith participated in at least nine armed robberies, including robberies of three businesses in Atlanta, two in Doraville, and one business in each of the following cities: Norcross, Duluth, Stone Mountain, and Roswell, Georgia. Ware shot victims in the Doraville robbery and pistol-whipped several other victims in the other robberies.
Smith was captured on November 21, 2017, after the FBI led a multi-jurisdictional investigation that included participation of the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Smith pled guilty on July 23, 2019, to one count of conspiracy to commit Hobbs Act robberies and four counts of discharging or brandishing a firearm during several of the robberies. The shooter, Ware, was convicted by a jury on August 2, 2019, for conspiracy to commit the Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
Tabyron Rashad Smith, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to serve 27 years in prison followed by five years on supervised release and to pay restitution in the amount of $135,951.81.
Sentencing for Dravion Sanchez Ware, 25, of Atlanta, Georgia is scheduled for 10:00 a.m., January 7, 2021.
Assistant U.S. Attorney Bret R. Hobson and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gulf Coast Health Care Fraud Strike Force Expanded to Include Eastern District of TexasRead the Press Release
The Department of Justice announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas.
The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud (HCF) Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.
“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system. We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”
“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox of the Eastern District of Texas. “We are honored to join the department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”
“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office.
“Health care fraud is a multi-billion dollar criminal enterprise,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities. We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”
“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country. The communities in the Eastern District of Texas are no different,” said Special Agent in Charge Steven S. Whipple of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.”
“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Special Agent in Charge Miranda Bennett of HHS-OIG. “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”
The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.
The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA. In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In September, Acting Assistant Attorney General Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. Five of the defendants were indicted in the Eastern District of Texas. Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country. More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.
Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas. The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies. The physicians’ orders were used to submit claims for payment to federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers. Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.
In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl. Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. He extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Gulf Coast Health Care Fraud Strike Force Expanded to Include Eastern District of TexasRead the Press Release
BEAUMONT, Texas - U.S. Attorney Stephen Cox of the Eastern District of Texas today announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas. The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.
“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox. “We are honored to join the Department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”
“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system. We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”
“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.
“Health care fraud is a multi-billion dollar criminal enterprise,” said FBI Houston Special Agent in Charge Perrye K. Turner. “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities. We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”
“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country. The communities in the Eastern District of Texas are no different,” stated Steven S. Whipple, Special Agent in Charge of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.”
“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Dallas Special Agent in Charge Miranda Bennett. “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”
The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.
The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA. In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In September, Acting Assistant Attorney General Brian C. Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. Five of the defendants were indicted in the Eastern District of Texas. Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country. More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.
Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas. The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies. The physicians’ orders were used to submit claims for payment to federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers. Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.
In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl. Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. He extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.
Four charged with conspiring to transport 61 aliens in tractor trailerRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against four area residents on charges of conspiracy to transport 61 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Octavio Ramirez, 27, Juan Antonio Carranco Jr., 26, San Juana Guadalupe Juarez-Flores, 39, and Alina Rodriguez, 20, were all originally charged via criminal complaint. They are expected to appear for their arraignments on the charges in the indictment before a U.S. magistrate judge in the near future.
Ramirez, Carranco and Rodriguez are U.S. citizens. Ramirez resided in Nuevo Laredo, Mexico, while other two resided in Laredo. Juarez-Flores is a Mexican national who resides in Laredo.
On Oct. 23, law enforcement set up surveillance at the intersection of North Smith Avenue and Green Street in Laredo, according to the complaint. Authorities allegedly witnessed Ramirez arrive at the location and either direct or escort aliens into the back of a nearby parked tractor-trailer multiple times.
Throughout the evening, Carranco, Juarez-Flores and Rodriguez all also arrived at the location, dropped off aliens in their personal vehicle and then left the scene, according to the charges.
Law enforcement ultimately apprehended a total of 61 undocumented aliens from various countries including Mexico, Guatemala and Honduras at the location.
If convicted, each faces up to 10 years in prison as well as a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection, Border Patrol, FBI and the Webb County Constable’s Office. Assistant U.S. Attorney Brian Bajew is 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.
Fort Wayne Man Sentenced to 235 Months in PrisonRead the Press Release
FORT WAYNE – Hector I. Mendez, age 29, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to distributing 50 grams or more of methamphetamine, announced U.S. Attorney Kirsch.
Mendez was sentenced to 235 months in prison followed by 5 years of supervised release.
According to documents presented in this case, on October 19, 2018, Mendez distributed more than 50 grams of methamphetamine, and from August through October of 2018, Mendez distributed methamphetamine on multiple other occasions.
“Narcotics trafficking hurts the citizens of Fort Wayne,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Law enforcement partnerships such as this local, state and federal effort will continue to investigate narcotics trafficking and violent crime plaguing our communities”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Indiana State Police, the Fort Wayne Police Department, and the Mission (Texas) Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Former UAW Vice President Sentenced to 30 Months for Taking $250,000 in Bribes and KickbacksRead the Press Release
Joseph Ashton, former Vice President of the UAW’s General Motors Department, was sentenced today to 30 months in federal prison for conspiring with other UAW officials to engage in honest services fraud by taking $250,000 in bribes and kickbacks from a UAW vendor and for conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the Chicago Region for the U.S. Department of Labor – Office of Inspector General, Acting Special Agent in Charge David G. Nanz, Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
In December 2019, Joseph Ashton, 72, of Ocean View, NJ, pleaded guilty to conspiring with two other high-level UAW officials—Michael Grimes and Jeffrey Pietrzyk—to take hundreds of thousands of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Grimes and Pietryzk have also pleaded guilty. Grimes was sentenced to 28 months in prison and Pietrzyk is awaiting sentencing.
The CHR is supposed to be a center for training UAW workers employed by GM. Ashton was the co-director of the Center for Human Resources. Ashton, Pietrzyk and Grimes also served on the Executive Board for the Center for Human Resources and they were responsible for approving contracts with the vendors. Ashton admitted that over the course of the conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from a vendor based in Philadelphia, PA, in exchange for securing or maintaining a contract to provide custom watches to the Center for Human Resources.
Ashton and his UAW co-conspirators demanded kickbacks on the $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. Ashton demanded over $250,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks payable to Ashton which were deposited into his personal bank account. The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches were left sitting in a storage room at the CHR for over five years.
Besides conspiring with other UAW officials and vendors to the UAW, Ashton also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.
Ashton is one of 15 defendants convicted in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 months). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director and UAW Board member Vance Pearson, former UAW Midwest CAP President Edward “Nick” Robinson, and former UAW President Dennis Williams.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Joseph Ashton illegally used his power and influence to benefit himself, and he caused long-lasting damage to the hardworking members of the UAW. Ashton wasted almost $4 million that could have been used to train UAW members, and his crimes led to the closing of the UAW-GM training center and the loss of many training center jobs. Ashton’s greed caused irreparable damage to the trust UAW members have in their leaders who are supposed to represent their best interests,” stated U.S. Attorney Schneider.
“Joseph Ashton abused his position with the International United Auto Workers Union (UAW) by demanding and accepting over $250,000 in kickbacks from a UAW vendor. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The men and women of the UAW deserve real, honest leadership. It is clear Mr. Ashton’s priority was not to advocate for union members but to line his own pockets,” said Acting SAC David G. Nanz. “The FBI will continue to work with our law enforcement partners to investigate corruption and ensure the financial integrity of our country’s labor unions.”
“It is imperative that UAW leadership continues to be held accountable for their selfish acts of greed,” stated Sarah Kull, Special Agent in Charge of IRS-Criminal Investigation in Detroit. “Today’s sentence is another step forward in our efforts to rid the UAW of corrupt leaders who abuse their positions to line their own pockets and tarnish the reputation of UAW officials.”
“Joseph Ashton is another in a long line of UAW officials that failed in his fiduciary duties and betrayed the trust of the UAW membership by using his union position to obtain bribes and kickbacks from vendors in excess of $250,000 so that he could enrich himself and others within the UAW,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today's sentence leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former Resident of Bergen County Admits Role in $1.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey resident today admitted participating in an investment scheme through which he fraudulently obtained $1.525 million from at least three families from 2017 through 2019, U.S. Attorney Craig Carpenito announced.
Matthew Benjamin, 53, formerly of Englewood, New Jersey, and now of New York, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from Company A, which he would then resell at a mark-up to Company B. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from Company A and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investor’s money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme; and by funding Benjamin’s and his family’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million. Sentencing is scheduled for March 24, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Director Richard R. Best, for its assistance. The SEC also filed a civil complaint based on the same conduct when Benjamin was arrested July 1, 2020; that complaint remains pending.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Former Raytheon Engineer Sentenced for Exporting Sensitive Military-Related Technology to ChinaRead the Press Release
TUCSON, Ariz. – Today, Wei Sun, 49, a Chinese national and naturalized citizen of the United States, was sentenced to 38 months in prison by District Court Judge Rosemary Marquez. Sun previously pleaded guilty to one felony count of violating the Arms Export Control Act (AECA).
Sun was employed in Tucson for 10 years as an electrical engineer with Raytheon Missiles and Defense. Raytheon Missiles and Defense develops and produces missile systems for use by the United States military. During his employment with the company, Sun had access to information directly related to sensitive defense technology. Some of this defense technical information constituted what is defined as “defense articles,” which are controlled and prohibited from export without a license under the AECA and the International Traffic in Arms Regulations (the ITAR).
From December 2018 to January 2019, Sun traveled from the United States to China on a personal trip. On that trip, Sun brought along unclassified defense-related technical information in his company-issued computer, including data associated with an advanced missile guidance system that was controlled and regulated under the AECA and the ITAR. Despite having been trained to handle these materials correctly, Sun knowingly transported the information to China without an export license in violation of the AECA and the ITAR.
“Sun was a highly skilled engineer entrusted with sensitive missile technology that he knew he could not legally transfer to hostile hands,” said Assistant Attorney General John C. Demers. “Nevertheless, he delivered that controlled technology to China. Today’s sentence should stand as a warning to others who might be tempted similarly to put the nation’s security at risk.”
“The United States relies on private contractors to help build our unparalleled defense technology,” said United States Attorney Michael Bailey. “People who try to expose that technology to hostile foreign powers should know that prison awaits them. The close cooperation of the victim defense contractor and the dedication of the FBI made this case a success.”
"Sun admitted to illegally exporting controlled weapons technology plans out of the U.S. to China." said Sean Kaul Special Agent in Charge of the FBI Phoenix Field Office. "China represents the greatest counterintelligence threat to our nation's protected information and intellectual property. Confronting this threat remains a top priority for the FBI and we applaud the victim company for their cooperation and coordination throughout this investigation. We encourage Americans to be aware of the foreign economic espionage threat and report any relevant information to their local FBI office."
The Federal Bureau of Investigation, investigated this matter with the assistance of Raytheon Missile and Defense. Beverly K. Anderson and Nicole P. Savel, Assistant United States Attorneys, and William Mackie from the National Security Division, Counterintelligence and Export Control Section, handled the prosecution.
CASE NUMBER: CR-19-00472 TUC-RM
RELEASE NUMBER: 2020-103_Wei Sun# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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