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12 January 2021
Owner of Bitcoin Exchange Sentenced to Prison for Money LaunderingRead the Press Release
A Bulgarian national who was convicted by a federal jury for his role in a transnational and multimillion-dollar scheme to defraud American victims was sentenced today to 121 months in prison.
Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, and Resident Agent in Charge John Oldham of the U.S. Secret Service made the announcement.
U.S. District Court Judge Robert E. Weir sentenced Rossen G. Iossifov, 53, formerly of Bulgaria, for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit money laundering.
According to trial evidence, Iossifov owned and managed RG Coins, a cryptocurrency exchange headquartered in Sofia, Bulgaria. According to the evidence at trial, Iossifov knowingly and intentionally engaged in business practices designed to both assist fraudsters in laundering the proceeds of their fraud and to shield himself from criminal liability. At least five of Iossifov’s principal clients in Bulgaria were Romanian scammers, who belonged to a criminal enterprise known in court records as the Alexandria (Romania) Online Auction Fraud (AOAF) Network.
More specifically, according to court documents and evidence presented at trial, Iossifov and his co-conspirators participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud that victimized at least 900 Americans. Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites — such as craigslist and eBay — for high-cost goods (typically vehicles) that did not actually exist. Once victims were convinced to send payment, the conspiracy engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers. Iossifov was one such foreign-based money launderer who facilitated this final step in the scheme.
According to evidence at trial, Iossifov designed his business to cater to criminal enterprises by, for instance, providing more favorable exchange rates to members of the AOAF Network. Iossifov also allowed his criminal clients to conduct cryptocurrency exchanges for cash without requiring any identification or documentation to show the source of funds, despite his representations to the contrary to the major bitcoin exchanges that supported his business. Evidence submitted during trial and his sentencing hearing revealed that Iossifov laundered nearly $5 million in cryptocurrency for four of these five scammers in a period of less than three years. This represented over $7 million in funds defrauded from American victims. In return, Iossifov made over $184,000 in proceeds from these transactions.
Iossifov was convicted after a two-week trial in front of Judge Weir in Frankfort, Kentucky in September 2020.
Under federal law, Iossifov must serve 85 percent of his prison sentence.
Thus far, 17 members of the AOAF Network have been convicted for their role in this scheme, including Iossifov. Seven others have been sentenced, including Livui-Sorin Nedelcu to 82 months in prison, Marius Dorin Cernat to 50 months in prison, Stefan Alexandru Paiusi to 31 months in prison, Eugen Alin Badea to 40 months in prison, Florin Arvat to 30 months in prison, Alin Ionut Dobric to 37 months in prison, and Austin Edward Nedved to 96 months in prison. Three members are fugitives.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor's Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Money Laundering and Asset Recovery Section of the Criminal Division provided significant support. This case is being prosecuted by Senior Counsel Frank Lin and Senior Trial Attorney Timothy Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases.
Owasso Man Sentenced to 19 Years in Prison for Killing a Man in a Collision While Eluding PoliceRead the Press Release
An Owasso man was sentenced today in federal court for striking and killing William Houseman while eluding officers at speeds exceeding 90 mph in 2019.
U.S. District Judge Claire V. Eagan sentenced Michael Leon Johnson, 35, to 19 years in federal prison followed by 5 years of supervised release.
“Michael Leon Johnson can spend the next 19 years in federal prison reflecting on the tragic consequences of his reckless actions,” said U.S. Attorney Trent Shores. “Today, the defendant heard firsthand from William Houseman’s widow, Darcy, about the impact of his actions. It was an incredibly moving and powerful statement. My thoughts today are with Darcy and their children. These cases are tough, and I appreciate Assistant U.S. Attorney Mark Morgan for pursuing justice for this family."
In her statement to Johnson, Darcy Houseman shared how much she missed her husband and of the future experiences they could never share. Then she offered forgiveness to Johnson, stating in part “You can make a difference. You have a purpose. Please don’t waste it.”
On Oct. 13, 2020, Johnson pleaded guilty to second degree murder in Indian Country. Johnson admitted to leading officers on a chase through Tulsa streets in a stolen pick-up truck, running multiple red lights, driving into oncoming traffic and causing other drivers to divert off the road. Johnson struck the victim’s vehicle after running a red light at the intersection of 12900 East 11th St. Housman died as a result of his injuries. The collision occurred on Jan 12, 2019.
The FBI, Tulsa Police Department, and Tulsa Country Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Mark R. Morgan is prosecuting the case.
Nemo Found, Pleads GuiltyRead the Press Release
TYLER, Texas – A 36-year-old Tyler, Texas man has pleaded guilty to federal drug trafficking in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Nasir Saleh-Saad Jabr, a.k.a. “Nemo,” appeared before U.S. Magistrate Judge K. Nicole Mitchell today to enter a plea of guilty to possession with intent to distribute methamphetamine.
Jabr was arrested on Dec. 3, 2019, following an armed standoff with law enforcement in the parking lot of the Econo Lodge located at 2631 WNW Loop 323 in Tyler. At the time of his arrest, Jabr was found to be in possession of 111.2 grams of methamphetamine and three firearms. According to information presented in court, Jabr admitted he was responsible for possessing and distributing more than 50, but less than 150 grams of methamphetamine. Jabr and three others were indicted by a federal grand jury on July 15, 2020, and charged with violations of federal drug trafficking laws. Co-defendants Ralph Paul Pressley, III, 37, a.k.a. “Lil’ Paul,” and Tammy Lynn Dilbeck, 39, of Troup, Texas, have also recently plead guilty to violations of federal drug trafficking laws.
Under federal statutes, Jabr faces up to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Texas Department of Public Safety; the Smith County Sheriff’s Office; and the Tyler Police Department and is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
Mount Vernon, Washington, woman pleads guilty to conspiracy to distribute fentanyl-tainted pillsRead the Press Release
Seattle – A 22-year-old Mount Vernon, Washington, woman pleaded guilty today in U.S. District Court in Seattle to conspiracy to distribute fentanyl, announced U.S. Attorney Brian T. Moran. Rosaliana Lopez-Rodriguez sold counterfeit oxycodone pills tainted with fentanyl in Skagit and Whatcom Counties. The pills are connected to at least two overdoses, including the overdose death of a Bellingham 17-year-old. Lopez-Rodriguez and a co-conspirator were arrested in December 2019 after an investigation to track down the source of the tainted pills. Both defendants have been in custody since their arrests.
According to records filed in the case, a family member found the 17-year-old victim unresponsive on November 9, 2019. Despite efforts of emergency responders to resuscitate him, the victim died; his cause of death was later determined to be fentanyl overdose. Investigators found a whole and a partial pill near the 17-year-old victim. These pills were designed to look like oxycodone 30-milligram pills, with “M” and “30” stamped on them. But they were fakes tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region. In fact, a friend of the 17-year-old victim nearly died after smoking one of the pills in November 1, 2019. Lopez-Rodriguez knew of that near-fatal overdose when she sold the 17-year-old victim more pills on November 9, 2019.
As part of her plea agreement, Lopez-Rodriguez also admitted selling an undercover law-enforcement officer fentanyl pills, which Lopez-Rodriguez stated she had received from the co-conspirator. In addition, Lopez-Rodriguez admitted that during this investigation, law enforcement served court-authorized search warrants at each defendant’s residence. At Lopez-Rodriguez’s residence, in her bedroom, law enforcement found two and a half fentanyl pills. At the co-conspirator’s residence, law enforcement found a safe containing hundreds of fake oxycodone pills that matched the appearance of the fentanyl-laced pills linked to the fatal overdose. Lopez-Rodriguez admitted that the co-conspirator had provided her with the pills that killed the Bellingham 17-year-old.
The co-conspirator is scheduled for trial in May 2021.
Lopez-Rodriguez faces a mandatory minimum five years in prison and up to forty years in prison when sentenced by Chief Judge Ricardo S. Martinez on April 16, 2021. Under the terms of the plea agreement, the prosecution and defense will each recommend a term of imprisonment between five and eight years. Chief Judge Martinez is free to impose any sentence allowed under the statute.
The case is being investigated by the Whatcom County Sheriff’s Office, the Drug Enforcement Administration (DEA), the Skagit County Interlocal Drug Enforcement Unit (SCIDEU) and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Customs and Border Protection (CBP), and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Middlesex County Man Sentenced to 75 Months for Possession of a Handgun in Connection with a RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 75 months in prison for illegally possessing a loaded 9mm HiPoint pistol, Acting U.S. Attorney Rachael A. Honig announced.
Rashawn S. Williams of Woodbridge Township, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of being a felon in possession of a firearm and ammunition. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On Feb. 6, 2019, in an Irvington, New Jersey parking lot, Williams knowingly possessed a 9mm HiPoint pistol loaded with at least one round of 9mm ammunition. He and a conspirator robbed four individuals at gunpoint. Williams fired a shot, striking one of the victims in the leg.
In addition to the prison term, Judge Martinotti sentenced Williams to three years of supervised release.
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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; and the Irvington Police Department, under the direction of Police Chief Tracy Bowers, with the investigation leading to today’s sentence. She also thanked the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Theodore N. Stephens II, for its assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Methamphetamine trafficking sends Eureka man to prisonRead the Press Release
MISSOULA — A Eureka man who admitted trafficking methamphetamine was sentenced today to six years and eight months in prison and four years of supervised release, Acting U.S. Attorney Leif Johnson said.
Tracy Eugene Conard, 50, pleaded guilty on Sept. 15, 2020 to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents filed in the case that Lincoln County Sheriff’s Office detectives were investigating Conard and in October 2019, conducted a monitored drug deal with another informant to buy drugs from Conard. In November 2019, law enforcement received information that Conard was in Kalispell buying meth. Conard was stopped returning from Kalispell. A passenger confirmed they were returning from a residence near Kmart in Kalispell where Conard gone to pick up his truck. Conard had $2,127 in his pocket along with a small amount of marijuana.
Based on corroborating information and other observations, officers obtained a search warrant for Conard’s residence in Eureka. There, officers located scales, meth pipes, about 53.6 grams of meth, 9.9 grams of black tar heroin, small plastic baggies and firearms and ammunition.
Assistant U.S. Attorney Jennifer Clark prosecuted the case, which was investigated by the Lincoln County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Merrimack Man Arrested for Drug TraffickingRead the Press Release
CONCORD – Kyle Mehlhorn, 27, of Merrimack, was arrested on a federal complaint charging him with possession of controlled substances with intent to distribute, United States Attorney Scott W. Murray announced today.
The complaint filed in court, alleges that on October 27, 2020, Manchester Police officers conducted a traffic stop in which Mehlhorn was the driver of the vehicle. After a records check revealed Mehlhorn’s license and registration privileges were suspended, he was placed under arrest. The complaint further alleges that officers later obtained a search warrant for the vehicle and recovered firearms, over $14,000 in cash, over 37 grams of suspected fentanyl, over 214 grams of suspected methamphetamine, and other items commonly used in the packaging and distribution of controlled substances.
Mehlhorn was arrested on January 11, 2021, in Boston and is scheduled to appear before a federal magistrate today.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation. Manchester Police Department, Concord Police Department, Gorham Police Department, and the New Hampshire State Police were all instrumental in this investigation. The case is being prosecuted by Assistant U.S. Attorneys Charles Rombeau and Aaron Gingrande.
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Manitowoc Man Indicted for Crimes Against Underage ChildrenRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on anuary 12, 2021, a federal grand jury returned a three-count indictment against Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin.
Tetzlaff faces two counts alleging that he transported minors in interstate and foreign commerce with the intent to engage in criminal sexual activity contrary to Title 18, United States Code, Section 2423(a) and that he engaged in the production of child pornography in violation of Title 18, United States Code, Section 2251(a).
If convicted of the transportation charges, Tetzlaff faces a mandatory ten years’ imprisonment and up to a life sentence on each count. If convicted of the child pornography production charge, he faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
This case was investigated by the Manitowoc County Sheriff’s Office and the Green Bay branch of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Man Trafficking Methamphetamine from Colorado to Iowa Pleads Guilty in Federal CourtRead the Press Release
A Storm Lake man who trafficked and intended to distribute large quantities of methamphetamine pled guilty today, January 12, 2021, in federal court in Sioux City. Christian Javier Ramirez, age 31, from Storm Lake, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Ramirez admitted that from early January of 2020 to on or about January 30, 2020, he intentionally conspired with others to distribute methamphetamine. According to the complaint filed in this matter, approximately 7 pounds of methamphetamine was intercepted in Colorado by the Colorado State Patrol and was destined for Storm Lake, Iowa, at the direction of Ramirez.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Ramirez remains in custody of the United States Marshal pending sentencing. Ramirez faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Iowa Division of Narcotics Enforcement, Homeland Security Investigation/ICE, Buena Vista County Sheriff’s Office, and Colorado State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4011.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to 78 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Edreece Nance, 47, Superior, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release.
The conviction in this case is the result of an investigation conducted by the Superior Police Department in October and November 2019. Law enforcement arranged a series of controlled buys with a confidential informant who purchased methamphetamine from Nance in the Superior area on 10 occasions, for a total of approximately 268 grams. In addition, law enforcement recovered approximately 222 grams of methamphetamine and two firearms from Nance’s apartment on November 14, 2019. He is prohibited from possessing any firearms as a result of prior felony drug convictions in Pennsylvania.
In an interview with law enforcement, Nance admitted to selling methamphetamine in the Superior area, and possessing the methamphetamine and firearms found in his apartment. Further, Nance confirmed that he intended to sell that methamphetamine.
At sentencing Judge Peterson remarked that the quantity of methamphetamine involved in this case was significant. He also noted that Nance’s conduct had a “damaging and degrading” effect on the community, because his conduct preyed on the illness of others.
The charges against Nance were the result of an investigation conducted by the Superior Police Department, Duluth Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Man Pleads Guilty to Robbery in Indian CountryRead the Press Release
A Tulsa man pleaded guilty this morning after he forcefully pulled a woman from her car and then stole it, announced U.S. Attorney Trent Shores.
Tyler Jonathan Martin, 28, of Tulsa, pleaded guilty before Chief U.S. District Judge John E. Dowdell. Martin is an enrolled member of the Muscogee (Creek) Nation. His sentencing is set for April 12, 2021.
“When his efforts to verbally intimidate an elderly woman were unsuccessful, Tyler Martin used physical violence to push her to the ground and steal her truck from a Walmart parking lot,” said U.S. Attorney Trent Shores. “I’m thankful the victim is okay now and commend the FBI, Tulsa Police Department, and Assistant U.S. Attorney Kevin Fletcher for their collaborative efforts.”
In his plea agreement, Martin admitted that on July 7, 2019 he used force, violence, and intimidation to take a Ford F-150 from the victim. Martin stated that he approached the victim in a Walmart parking lot and demanded that she give him the keys to her truck. When the victim refused, Martin admitted to pulling her from the truck and pushing her to the ground. When the keys fell to the ground, Martin grabbed the keys and drove off, knowing that the victim had sustained injuries from his actions.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Kevin C. Fletcher is prosecuting the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Man Involved in Willimantic Heroin Ring Sentenced to 33 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL CEBALLO-CRUZ, 31, of Willimantic, was sentenced today by U.S. District Judge Michael P. Shea to 33 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in May 2018, the DEA’s Hartford Task Force and Willimantic Police Department, while investigating a heroin/fentanyl overdose death that occurred in August 2017, received information that Xavier Diaz, also known as “Coco,” was operating a heroin distribution ring in Willimantic. The investigation revealed that drug purchasers called a phone shared by Diaz and other members of the conspiracy to place an order for heroin. Thereafter, a “runner” would meet the purchaser to complete the transaction.
Ceballo-Cruz was a runner for the Diaz organization, and he delivered the drugs involved in the August 2017 overdose death. Several non-fatal overdoses have also been connected to drugs distributed by the Diaz organization.
Ceballo-Cruz, Diaz and other members of the organization were arrested on October 15, 2018. On that date, a search of Diaz’s residence revealed more than 100 grams of heroin, a stolen firearm, and ammunition. In addition, a search of a storage unit connected to the organization revealed more than $20,000 in cash.
On October 1, 2019, Ceballo-Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. He has been detained since February 2020 after he violated conditions of his release and his bond was revoked
Diaz pleaded guilty to the same charge and, on November 25, 2019, was sentenced to five years of imprisonment.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Man Charged with 2013 Drug-Related Murder in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that ANTWANE WILLIAMS-BEY, also known as “Buck,” 30, has been charged with the drug-related murder of Valentin Santos Jr., 21, in Hartford on August 12, 2013.
On September 24, 2020, a federal grand jury in Hartford returned an indictment charging Williams-Bey with causing the death of Valentin Santos Jr. through the use of a firearm. The indictment alleges that Williams-Bey murdered Mr. Santos in relation to and in furtherance of drug trafficking crimes, and that he did so deliberately, maliciously and with premeditation.
Williams-Bey, formerly of East Windsor, has been detained in federal custody since February 2017 and is currently serving a federal sentence for a narcotics offense. He appeared today via videoconference before U.S. Magistrate Judge Thomas O. Farrish and entered a plea of not guilty.
If convicted of the charge, Williams-Bey faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in the matter.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Lexington Man Sentenced to 100 Months for Illegally Possessing a FirearmRead the Press Release
LEXINGTON, Ky. - A Lexington man, Terrico W. Williams, 29, was sentenced on Monday, by Chief U.S. District Judge Danny C. Reeves, to 100 months in federal prison, after previously being convicted of possession of a firearm by a convicted felon.
According to testimony at trial, on September 11, 2019, officers with the Lexington Police arrested Williams, on an outstanding warrant. Williams was searched and found to have a loaded, .22 caliber handgun concealed inside his pants. Williams has a previous felony conviction from the Fayette Circuit Court, from 2016, for Manslaughter Second Degree.
Williams was convicted in August 2020.
In addition to the prison time, Williams will also be required to pay a $2,000 fine. Under federal law, Williams must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the verdict.
The investigation was conducted by ATF and Lexington Police Department. The United States was represented in the case by Assistant U.S. Attorney Cynthia Rieker.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Justice Department Settles Claims Against California Supermarket Chain and Affiliated Money Lender for Discriminating Against Asylee WorkerRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Northgate Gonzalez Markets Inc., a California-based supermarket chain, and Northgate Gonzalez Financial LLC d/b/a Prospera Gonzalez, an affiliated payday loan company (collectively, Northgate).
The settlement resolves a claim that Northgate discriminated against a worker with asylum status when reverifying his eligibility to work in the United States, and fired him when he did not satisfy the company’s discriminatory requests, in violation of the Immigration and Nationality Act (INA).
“Employers must treat all workers who have the right to work in the United States fairly and consistent with the law, regardless of a worker’s citizenship status, immigration status, or national origin,” said Acting Assistant Attorney General John B. Daukas of the Civil Rights Division. “The Civil Rights Division is committed to protecting workers from unlawful discrimination.”
Based on its investigation, the department concluded that Northgate did not allow a worker with asylum status to provide his choice of valid documentation to show that he was authorized to work in the United States. Instead, when the employee offered to present an unrestricted Social Security card, which is legally sufficient to prove work authorization during the reverification process, Northgate rejected the document, demanded a document the worker did not have, and fired the worker when he did not present it. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status or national origin. Instead, in the INA, Congress determined that all work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA does, however, permit employers to reject non-genuine looking documents.
Under the terms of the settlement agreement, Northgate will pay over $22,000 in back pay to the injured worker; pay a civil penalty to the United States; revise its policies and procedures; and train relevant employees on the INA’s anti-discrimination provision.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (e.g., Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Reaches Agreement with the Board of Election Commissioners for the City of St. Louis to Ensure Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with the Board of Election Commissioners for the City of St. Louis to ensure that St. Louis polling places are accessible during elections to individuals with mobility and vision impairments.
The Department of Justice reviewed the St. Louis Board’s voting program for compliance with the ADA. The department identified architectural barriers at St. Louis polling places, including inaccessible parking, ramps that were too steep, stairs at the only entrance or route to the voting area, and doorways with thresholds that were too high.
The department also identified that the St. Louis Board fails to provide accessible curbside voting and auxiliary aids and services, including headphones for some accessible voting machines, and also fails to provide voters with disabilities the same amount of privacy and independence while voting as voters without disabilities. Under the ADA, governmental entities that conduct local, state, or federal elections may not select polling places that are inaccessible to individuals with disabilities for use during elections, and they must make reasonable modifications to ensure equal opportunity to participate in voting programs.
“The department remains committed through its ADA Voting Initiative to ensuring that every eligible voter with a disability has an equal opportunity to participate in the voting programs of public entities,” said Acting Assistant Attorney General John Daukas for the Civil Rights Division. “This settlement ensures that eligible voters with disabilities in the City of St. Louis will be able to exercise their fundamental right to vote and participate in our democracy.”
Under the terms of the settlement agreement, the St. Louis Board will begin remediating its voting program. To make its selected polling places accessible, the St. Louis Board will employ temporary measures, such as portable ramps, signage, and propped open doors. In addition, the St. Louis Board will train its poll workers and other elections staff on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible during elections. The St. Louis Board will also survey polling locations for accessibility and maintain the accessibility of each polling place it uses on election days. When selecting future polling places, the agreement requires the St. Louis Board to select locations that will be accessible during elections.
This settlement is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department of Justice has surveyed more than 2,300 polling places and increased polling place accessibility in more than 50 jurisdictions, including Sandoval County, New Mexico; Harris County, Texas; Lackawanna County, Pennsylvania; and Anderson County, South Carolina.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Joint Statement from United States Attorney Jason Dunn and Denver FBI Special Agent in Charge Michael SchneiderRead the Press Release
The United States Attorney’s Office for the District of Colorado and the Denver Field Office of the FBI are committed to holding perpetrators of last week’s Capitol violence to account for any federal crimes. At the same time, we are working together with state and local authorities to ensure that any demonstrations that may take place in Colorado remain peaceful. Should that not be the case, we will investigate and aggressively prosecute those who violate federal law. While First Amendment rights will be protected, our offices will ensure that our criminal laws are enforced.
We urge the public to remain vigilant and immediately report to law enforcement if they see or hear anything suspicious or witness acts of violence. Call 303-629-7171, or go on-line at https://www.fbi.gov/tips.
Jefferson County Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
ST. LOUIS, MO –Tracy Douglas Hyden, 55, of Jefferson County, Missouri, pleaded guilty today before United States District Judge Stephen N. Limbaugh, Jr. to one count of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and one count of possession with the intent to distribute more than 50 grams of actual methamphetamine.
According to a plea agreement, in 2018 and 2019, investigators discovered that methamphetamine distributors operating in and around Jefferson County, Missouri, including Hyden and several of his co-defendants, were traveling to the City of St. Louis to obtain large quantities of crystal methamphetamine for redistribution in Jefferson County and elsewhere.
In August of 2019, DEA agents conducting surveillance observed Hyden meeting with a co-defendant who was supplying methamphetamine near the Central West End neighborhood in the City of St. Louis. Following a transaction that occurred near a stash-house utilized by co-conspirators near the 4100 block of Westminster, investigators stopped Hyden and ultimately located approximately 110 grams of crystal methamphetamine in his vehicle.
Hyden faces a mandatory minimum term of imprisonment of at least 10 years and a maximum term of life and/or a fine of not more than $10,000,000.
Judge Limbaugh has set sentencing for April 15, 2021.
The Drug Enforcement Administration and the Multi County Narcotics and Violent Crimes Enforcement Unit investigated this case.
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Insitu Inc. to Pay $25 Million to Settle False Claims Act Case Alleging Knowing Overcharges on Unmanned Aerial Vehicle ContractsRead the Press Release
Insitu Inc., headquartered in Bingen, Washington, has agreed to pay $25 million to settle allegations that it violated the False Claims Act by knowingly submitting materially false cost and pricing data for contracts with the U.S. Special Operations Command (SOCOM) and the Department of the Navy (Navy) to supply and operate Unmanned Aerial Vehicles (UAVs), the Department of Justice announced today.
“We expect companies that seek to do business with the government to provide complete and accurate information so contract prices can be negotiated on a level playing field,” said Acting Assistant Attorney General of the Justice Department’s Civil Division Jeffrey Bossert Clark. “This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines that taxpayer dollars have been misused.”
“Taxpayers deserve to get what they paid for – especially in significant no-bid military contracts,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
“The Naval Criminal Investigative Service is dedicated to protecting the taxpayer’s interests and safeguarding critical services for the war fighter,” stated Charles P. King, Special Agent in Charge, NCIS Northwest Field Office. “The success of the Department of the Navy’s war fighting ability is dependent upon a sound, transparent and honest acquisition process. I want to thank the Department of Justice and our law enforcement partners for their incredible support and dedication during this investigation.”
“Defense contractors are required to obey strict standards when proposing cost and pricing data for work to be performed on government contracts,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “The pursuit and favorable settlement of this civil litigation is yet another example of our agents and law enforcement partners working together to uncover fraudulent activity and protect taxpayers' dollars entrusted to the DoD.”
Between Jan. 1, 2009 and Dec. 31, 2017, Insitu entered into five contracts with the Navy and two contracts with SOCOM for the supply and operation of UAVs, also known as “drones,” at various sites identified in the contracts. The settlement resolves allegations that Insitu knowingly induced the government to award it these seven, noncompetitively bid contracts at inflated prices by proposing cost and pricing data for new parts and materials in support of its contract proposal while planning to and in fact using less expensive recycled, refurbished, reconditioned, and/or reconfigured parts to perform the contracts.
The settlements resolve allegations filed in a lawsuit by D R O’Hara, a former executive of Insitu, in federal court in Seattle, Washington. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. O’Hara will receive $4,625,000 of the recovered funds.
The settlements were the result of a coordinated effort by the Commercial Litigation Branch (Fraud Section) of the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Western District of Washington, the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and the Defense Criminal Investigative Service.
The case is captioned United States ex rel. O’Hara v. Insitu, Inc. and The Boeing Company,Case No. C15-1527-JCC (W.D.Wash.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
High-Ranking Nuestra Familia Gang Member Pleads Guilty to Directing Drug Trafficking in Kings and Tulare Counties While Inside PrisonRead the Press Release
FRESNO, Calif. — High-ranking Nuestra Familia prison gang member Salvador Castro Jr., 50, pleaded guilty today to conspiring to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Castro used a contraband cellphone from inside Pleasant Valley State Prison in Fresno County to arrange for the formation of a new street gang regiment in Kings and Tulare Counties. According to the plea agreement, Castro was recorded on a wiretap conspiring with associates outside of prison to distribute cocaine and methamphetamine. Between May 5, 2019, and May 15, 2019, Castro coordinated the transportation of approximately 10 pounds of methamphetamine from the Sacramento area to a residence in Visalia. Castro arranged for co-conspirators outside of prison to protect the narcotics during transit, and when the drugs arrived in Visalia, Castro and his co-conspirators discussed plans to distribute the methamphetamine to buyers in the Central Valley.
The case is the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; the Kings County District Attorney’s Office; and the Tulare County Sheriff’s Office. Assistant U.S. Attorneys Justin Gilio, Kate Schuh, and Kimberly Sanchez are prosecuting the case.
Castro faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This 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 www.justice.gov/OCDETF.
Hays man admits manslaughter charge after fatal crash on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Hays man who admitted to drinking and driving a vehicle when it crashed and killed a passenger in 2019 on the Fort Belknap Indian Reservation pleaded guilty today to charges, Acting U.S. Attorney Leif Johnson said.
Tough Arthur Snow, 22, pleaded guilty to involuntary manslaughter. Snow faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Snow was released pending further proceedings. Chief Judge Morris set sentencing for April 29.
The prosecution said in court documents that at about 6:10 a.m. on June 8, 2019, Fort Belknap Law Enforcement Services officers and emergency medical providers responded to a 911 call of a vehicle crash on the gravel road that runs through Mission Canyon on the Fort Belknap Indian Reservation.
Medical responders found two men, Snow and John Doe 1, walking on the road. Snow denied they had been in an accident and said Doe 1 was injured. Responders attended to Doe 1 and Snow left the scene on foot. Snow did not report an accident to the medical responders and did not report that anyone else was injured. Doe 1 told the medical responders there had been accident just down the road and that Snow had been the driver. A responder continued down the road and found a truck on its passenger side in a creek by the road. The truck was on top of a victim, identified as John Doe 2, who had been partially ejected and was deceased.
Law enforcement officers located Snow at his mother’s residence. Snow showed signs of impairment, claimed not to know about the crash and that he arrived home at about 5:30 a.m. after being out and drinking beer. Snow consented to a blood draw, which determined he had a blood alcohol concentration of .116 percent.
A Montana Highway Patrol crash scene investigation determined the truck was registered to Snow and that it was going too fast for the road, failed to negotiate a curve and went off the road, landing on its side in the creek. Contributing factors were speed, reckless driving and alcohol impairment.
Doe 1 reported that Snow was the driver, Doe 2 was the front passenger and that he was the rear seat passenger. Doe 1 told investigators the three of them had been drinking together that night, got into the truck and then Snow went fast and lost control. Doe 1 reported they both knew Doe 2 was dead when they walked away from the crash scene.
Assistant U.S. Attorney Ethan Plaut is prosecuting the case, which was investigated by the FBI, Fort Belknap Law Enforcement Services and Montana Highway Patrol.
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Glenpool Man Pleads Guilty to Attempted Robbery in Indian CountryRead the Press Release
A man pleaded guilty this morning to attempted robbery in Indian Country, announced U.S. Attorney Trent Shores.
Mason Ray Razo, 19, of Glenpool, pleaded guilty before Chief U.S. District Judge John E. Dowdell. Razo is an enrolled member of the Muscogee (Creek) Nation. His sentencing is set for April 12, 2021.
“My team adopted this case because of the Supreme Court’s McGirt decision and Assistant U.S. Attorney Tom Duncombe worked hard to ensure justice for the victim and accountability for a violent criminal,” said U.S. Attorney Trent Shores. “We’ve seen an increase in gun-related violent crimes over the past twelve months. Credit goes to the Glenpool Police Department, Tulsa Police Department, and Federal Bureau of Investigation for being on the front lines to stop violent criminals like Mason Razo.”
In his plea agreement, Razo admitted that on April 1, 2020 he attempted to commit robbery within the Muscogee (Creek) Reservation in the Northern District of Oklahoma. He stated that he and his codefendants went to the Tulsa home of an acquaintance, in order to take items of value by force, violence, or fear. Further, Razo stated that he brought a firearm with the intention of using it in the course of the robbery and that he wore a mask in an attempt to hide his identity.
Video footage from a door security system showed Razo and his codefendants standing outside the Tulsa home and preparing to break in. The video shows Razo attempting to break the door down but then stopping after hearing a loud noise inside. Razo and the others fled the scene before they could get inside to complete the robbery.
The FBI, Tulsa Police Department, and Glenpool Police Department conducted the investigation. Assistant U.S. Attorney Thomas E. Duncombe is prosecuting the case.
Fresno Man Sentenced to 5.5 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Rudy Soto, 32, of Fresno, today to five and a half years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on May 7, 2019, Soto fled from police in a high speed chase, crashed into another vehicle, and threw a loaded gun with a round of ammunition in the chamber from the sunroof of his car. Police had recognized Soto and knew he was wanted on an active felony warrant. The pursuit and gun discovery followed. Soto was prohibited from possessing a firearm as a result of four felony convictions between 2009 and 2016 for corporal injury to a spouse or cohabitant and three for evading an officer.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Former Union Officer Admits EmbezzlementRead the Press Release
NEWARK, N.J. – The former secretary treasurer of Local 2254 of the American Federation of State, County, and Municipal Employees Union (AFSCME) today admitted embezzling $40,455 from the union’s checking and savings accounts, Acting U.S. Attorney Rachael Honig announced.
Linda Rogers, 71, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging her with embezzlement from the union, located at Jersey City Medical Center (JCMC).
According to the Indictment and the plea allocution:
Rogers was employed at JCMC and held a part-time position at Local 2254 as its secretary treasurer. In that role, she had sole control over the union’s checking and savings accounts. From July 2016 through August 2017, her daughter, Jennifer Rogers, who also recently pleaded guilty to the same charges, deposited 112 unauthorized checks from Local 2254 to their joint checking and savings accounts, totaling $35,267. From October 2016 through December 2016, Linda Rogers made six wire transfers from Local 2254’s savings account, totaling $5,188, into her personal credit card account. None of the expenditures were authorized, or for legitimate union purposes.
The count to which Linda Rogers pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 25, 2021.
Acting U.S. Attorney Honig credited investigators of the U.S. Department of Labor, Office of Labor Management Standards, under the direction of Adriana Vamvakas, Regional Director; and special agents of the Department of Labor (OIG), New York Region, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Former Real Estate Developer Sentenced in Federal Court after Conspiring to Lie to a BankRead the Press Release
A former real estate developer who conspired with a bank vice president to lie to a bank for years was sentenced today to three years of probation.
Kenneth Moore, age 65, from Dubuque, Iowa, received the prison term after a February 3, 2020 guilty plea to one count of conspiracy to make a false statement to a financial institution.
Evidence and information disclosed during court hearings showed that between 2007 and 2009, Moore worked as a real estate developer in the Dubuque, Iowa, and Galena, Illinois, areas. During that time, he conspired with Dan Raduns, who was a vice president at a bank in Dubuque. Evidence showed that the two conspired to lie to the bank about how money the bank was loaning to Moore was being used. Specifically, they lied about using the money to complete a particular construction project when, instead, it was being used elsewhere. Ultimately, the bank lost over $320,000 in loans made on the construction project.
Moore was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Moore was sentenced to three years’ probation. He was ordered to make $332,108.80 in restitution to the victim bank. Raduns was also previously sentenced to three years’ probation and to make restitution to the victim.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 19-CR-1021.
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Former Hamilton County Deputy pleads guilty to using excessive forceRead the Press Release
CINCINNATI – Jason Mize, 34, of Cincinnati pleaded guilty in U.S. District Court today to using unreasonable force while acting under color of law.
According to plea documents, on August 20, 2016, Hamilton County Sheriff’s Office deputies arrested a 61-year-old individual and brought him to the county Justice Center for processing.
While the victim was in medical intake, Mize approached the victim from behind and told the individual to stand. Mize then pushed the victim towards a holding cell, shoving the victim with such force that the victim collided headfirst with a concrete wall. The victim suffered bodily injury, including lacerations to his scalp and a leg fracture.
Depriving an individual of their civil rights while acting under color of law is a federal crime punishable by up to 10 years in prison if bodily injury results from the act. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Megan Gaffney Painter and Ebunoluwa Taiwo are representing the United States in this case.
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Former DMV Program Manager Sentenced for Bribery ConspiracyRead the Press Release
RICHMOND, Va. – A former Virginia Department of Motor Vehicles (DMV) employee was sentenced today to 28 months in prison for his role in a seven-year bribery conspiracy involving the DMV’s Virginia Rider Training Program (VRTP).
According to court documents, Bruce A. Biondo, 64, of Mechanicsville, was the former Program Manager of the VRTP, and worked for the DMV from 1988 until 2018. Beginning in at least 2011 and continuing to March 2018, Biondo accepted bribes from outside contractors, including a $15,000 payment from the sham sale of a motorcycle in 2011, additional cash payments totaling over $74,000 between February 2014 and February 2018, as well as the use of a Ford F-450 pick-up truck for personal purposes. In exchange, Biondo performed official actions to benefit the preferred VRTP contractors who provided the bribes. In particular, Biondo used his official position to steer a lucrative contract and licenses to his conspirators.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Michael C. Westfall, Virginia State Inspector General; Colonel Gary T. Settle, Virginia State Police Superintendent; and Joseph Hill, DMV Assistant Commissioner for the Office of Enforcement and Compliance made the announcement after U.S. District Judge David J. Novak imposed the sentence.
Assistant U.S. Attorney Katherine Lee Martin and former Assistant U.S. Attorney David Maguire prosecuted this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-18.
Former CEO of Real Estate Private Equity Investment Firm Charged with Securities FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of ERIC MALLEY, the founder and former chief executive officer of real estate private equity investment firm MG Capital Management L.P. on charges of securities fraud and wire fraud for his role in a scheme to fraudulently induce hundreds of individuals to invest a total of more than $50 million in two real estate investment funds by, among other things, lying about his own prior experience and investment track record and about the nature and characteristics of those funds. MALLEY was arrested this morning in New Canaan, Connecticut, on a criminal complaint (the “Complaint”) and will be presented before a magistrate judge in the Southern District of New York.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Eric Malley allegedly promised his clients that they would reap the benefits of owning equity in Manhattan real estate through his time-tested, sophisticated, debt-free investment strategy. As alleged, those promises were lies. Malley lied about his prior funds’ existence and performance, and he lied in promising clients that the funds were free of debt and leased to prominent corporate tenants. While his investors lost money, Malley enriched himself. We will continue to work with our law enforcement partners to protect investors from these types of deceptive practices.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Malley, acting as CEO of an investment firm he founded, solicited investors with material misrepresentations and lies pertaining to luxury residential real estate and several investment funds. Ultimately, the investors, many of whom had entrusted Malley with all of their retirement savings, lost nearly everything. Today’s action should serve as a reminder to fraudsters who seek to prey on unwitting investors that the FBI and our partners will not waver in our commitment to bring them to justice.”
As alleged in the Complaint unsealed today in Manhattan federal Court[1]:
MALLEY founded MG Capital Management L.P. (“MG Capital”) in approximately January 2013, and served as its chief executive officer (“CEO”) from that time until approximately December 2019. MALLEY described MG Capital as an opportunity for investors to invest in luxury residential real estate properties through limited partnership interests, and formed two real estate investment funds, MG Capital Management Residential Fund III (“Fund III”) and MG Capital Management Residential Fund IV (“Fund IV”) (collectively, “the Funds”), in approximately February 2014 and September 2017, respectively.
In connection with marketing the Funds to investors, MALLEY touted two purportedly extremely successful prior funds he had formed, Fund I and Fund II. MALLEY also assured investors that the Funds would be and were debt-free, and that the properties held by the Funds would be and were leased primarily to corporate tenants. MALLEY’s representations about the existence and performance of Funds I and II were largely fabricated. Furthermore, the Funds were not debt-free, but instead held mortgaged properties, and the properties that made up the Funds were almost entirely leased to individual, not corporate, tenants.
Investors in the Funds, many of whom invested the entirety of their retirement savings, lost all or almost all of their investments. As to Fund III, in total, approximately 60 investors invested approximately $23 million. Fund III incurred net operating losses of approximately $860,000, and its investors never received either distributions or a return of their investments. MALLEY nevertheless distributed at least approximately $278,000 to himself in his capacity as general partner. As to Fund IV, in total, approximately 275 investors invested approximately $35 million. Fund IV incurred millions of dollars in losses, and MALLEY did not disclose those losses until approximately two years into Fund IV’s operation.
In or about mid-December 2019, MALLEY stepped down from his role as CEO of MG Capital. Between in or about February 2020 and on or about March 31, 2020 – after MALLEY had become aware that the U.S. Securities and Exchange Commission (“SEC”) was investigating him – MALLEY accessed MG Capital’s server and deleted approximately 10,000 files from the server, including broker information and closing documents detailing the closing costs associated with acquisition of properties, which were used to obtain funding from the Funds’ administrators.
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MALLEY, 50, of New Canaan, Connecticut, is charged with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison, and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which has separately filed a civil action against MALLEY and M.G. Capital Management.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Elizabeth A. Hanft is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former Attorney Pleads Guilty to Embezzlement and Tax ChargesRead the Press Release
BOSTON – A former attorney pleaded guilty yesterday to wire fraud and filing false tax returns in connection with a long-running scheme to embezzle funds from trusts for which he served as trustee.
Kevin M. Brill, 61, of Newton, pleaded guilty to six counts of wire fraud and four counts of filing false tax returns. U.S. Senior District Judge Mark L. Wolf scheduled sentencing for April 5, 2021.
From 2012 to July 2017, Brill served as a trustee for three family trusts with funds held at Morgan Stanley Bank. As trustee, Brill had fiduciary responsibilities to protect and preserve the funds of the trusts and make expenditures for the benefit of each beneficiary. As part of his embezzlement scheme, Brill created new accounts at Santander Bank through which he funneled funds he withdrew from the trust accounts. Over the course of the six-year scheme, Brill embezzled and misappropriated more than $600,000 from the various trusts and used the proceeds on personal expenses such as a personal vehicle, a vacation home in Vermont and to pay for his personal credit card expenses.
In addition, Brill failed to report his illegal income to the IRS, thereby avoiding payment of more than $169,000 that he owed in federal income taxes.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. 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; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Fentanyl Distribution Leads to Prison Sentences for Two Menominee WomenRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Jacquelyn Grignon (age: 47) and Lottie Tucker (age: 38), both former residents of the Menominee Indian Reservation, recently received prison sentences in United States District Court for the Eastern District of Wisconsin in Green Bay. Tucker pleaded guilty on October 7, 2020, to Possession with Intent to Distribute Fentanyl. Grignon pleaded guilty on October 8, 2020, to Distribution of Fentanyl.
At a hearing on January 5, 2021, Tucker received a total sentence of 78 months in prison, followed by 48 months on supervised release, from Senior United States District Judge William C. Griesbach. At a hearing on January 12, 2021, Judge Griesbach sentenced Grignon to a total sentence of 48 months in prison, followed by 48 months on supervised release.
According to court documents, on or about March 20, 2020, Grignon obtained what she believed to be heroin, but which was Fentanyl, from Tucker. Grignon then used some of the Fentanyl and sold some of it to others. Two people, a 32-year old man and a 16-year old boy, overdosed on the Fentanyl they received from Grignon. The 32-year old man died at a residence on the Menominee Indian Reservation; first responders revived the 16-year old, but he required hospitalization. A search warrant at Tucker’s residence on the Menominee Indian Reservation led to the discovery of additional Fentanyl, along with methamphetamine and cocaine.
In sentencing the defendants, Judge Griesbach described the circumstances surrounding the overdoses as a “terrible injustice,” and noted the defendants spread a poison that robs people of their humanity and ruins communities. Judge Griesbach also emphasized the need to deter others who might consider engaging in the sale and distribution of controlled substances.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Federal Inmates Plead Guilty to Weapon ChargesRead the Press Release
BLUEFIELD, W.Va. -- United States Attorney Mike Stuart announced that two federal inmates pled guilty to possessing weapons. Corey Fair, 27, and Rashun Evans, 23, inmates at the Federal Correctional Institution (FCI) at McDowell, both admitted to possessing a handcrafted weapon, commonly known as a “shank.”
“Bureau of Prisons staff members do an excellent job of finding and confiscating shanks, ultimately thwarting potential violence among inmates,” said United States Attorney Mike Stuart. “These cases will be prosecuted and offenders will find themselves with longer prison sentences.”
Fair admitted that on January 26, 2020, he possessed a handcrafted weapon known as a shank. A staff member at the prison found the weapon, which was a five and one-half inch piece of metal sharpened on one end, in Fair’s pocket during a random search. The staff member then recovered the weapon.
Evans admitted that on February 5, 2020, he also possessed a handcrafted weapon while he was an inmate at the FCI McDowell. A staff member at the prison found the shank hidden underneath a telephone in a common area after Evans had placed it there. The weapon was a seven inch long piece of metal sharpened on one end with a cloth handle on the other end.
Both defendants admitted that the shanks were designed and intended to be used as a weapon.
Both Fair and Evans face up to five years in prison, to be served consecutively to the sentences they are now serving. Sentencing for both defendants is set for April 29, 2021.
The case was investigated by the Federal Bureau of Prisons (BOP). Assistant United States Attorney Timothy D. Boggess is handling the prosecutions. Senior United States District Judge David A. Faber presided over the plea hearings.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 1:20-cr-00202 and 1:20-cr-00203.
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El Paso Man Sentenced for Posting Threatening YouTube VideoRead the Press Release
A federal judge today sentenced an El Paso man to 21 months in federal prison for posting a threatening communication over the internet, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Luis M. Quesada, El Paso Division.
In addition to the prison term, U.S. District Judge Kathleen Cardone ordered that 43-year-old Manuel Flores be placed on supervised release for a period of three years after completing his prison term. Flores has remained in federal custody since FBI agents arrested him in Dallas on June 15, 2020.
On October 14, 2020, Flores pleaded guilty to transmitting a threatening communication. By pleading guilty, Flores admitted that in June 2020 he recorded and uploaded a video to YouTube entitled “N----- Lives Matter” in which he made threatening comments to Black Lives Matter protestors. During the video, Flores is seated and visible only from the knees down with what appears to be an AR-15 style rifle resting on his feet. Flores stated that in two days he would be travelling on I-20 Eastbound through Dallas while daring individuals representing Black Lives Matter to “stop him.” Flores further stated that “my dream is at least … take out at least 200 n------.”
“During this time of polarized political discord, peaceful protest is an important right that must be safeguarded and those who threaten to harm others, commit acts of violence, destroy property or attack law enforcement must be held accountable for their criminal behavior,” said U.S. Attorney Sofer. “Now more than ever we must respect the rule of law. The United States Attorney’s Office, along with its federal, state and local law enforcement partners will aggressively pursue those who refuse to do so. Today’s sentence should serve as a warning to anyone who would choose to threaten or harm others – you will be federally prosecuted and sent to federal prison.”
The FBI investigated this case. Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
Eastern District of California Obtains Nation’s First Civil Settlement for Fraud on Cares Act Paycheck Protection ProgramRead the Press Release
SACRAMENTO, Calif. — The first civil settlement to resolve allegations of fraud against the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been entered into today by the Department of Justice, U.S. Attorney McGregor W. Scott announced.
SlideBelts Inc., an internet retail company and debtor in bankruptcy, and Brigham Taylor, the company’s president and CEO, have agreed to pay the United States a combined $100,000 in damages and penalties to resolve allegations that they committed fraud. SlideBelts also repaid the Paycheck Protection Program funds it received.
The CARES Act was enacted on March 29, 2020, 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 Paycheck Protection Program. In April 2020, Congress authorized over $300 billion, and in December 2020, Congress authorized nearly $285 billion in additional Paycheck Protection Program funding.
As part of the settlement, Taylor and SlideBelts admitted that they made false statements to federally insured banks that SlideBelts was not in bankruptcy in order to influence those banks to approve, and the Small Business Administration (SBA) to guarantee, a Paycheck Protection Program loan to SlideBelts. As a result of their false statements, SlideBelts received a Paycheck Protection Program loan for $350,000. Months later, in response to demands by the United States, SlideBelts returned the Paycheck Protection Program funds to the lender. Taylor and SlideBelts also admitted that their statements caused false claims to be made to the SBA in connection with the Paycheck Protection Program loan. This settlement resolves claims that Taylor’s and SlideBelts’ misconduct violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including those that affect federally-insured financial institutions.
“The defendants made false statements to multiple banks in order to obtain a Paycheck Protection Program loan that should have been disbursed to an honest small business suffering financially from the economic effects of the COVID-19 pandemic,” said U.S. Attorney Scott. “The Department of Justice and our partners at the SBA will use all tools at our disposal, including civil fraud statutes, to aggressively pursue those who exploit federal programs intended to help those in need during this national emergency.”
“This is a critical time for our nation’s small businesses,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic’s challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Assistant U.S. Attorney Matthew R. Belz handled the case for the United States. The investigation was conducted with the Office of the Inspector General for the United States Small Business Administration.
Drug Dealing Doctor Sentenced to 71 Months in Federal PrisonRead the Press Release
Dr. Richard Samuel Piazza, D.O. Wrote Illegal Prescriptions for Thousands of Opioid Pills
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Dr. Richard Samuel Piazza, D.O., 63, of Grand Rapids, Michigan, was sentenced to 71 months in federal prison for writing illegal opioid prescriptions. U.S. District Judge Janet T. Neff imposed the sentence. She also sentenced him to 3 years of supervised release. In September 2020, Dr. Piazza pled guilty to three counts of distribution of controlled substances, in violation of 21 U.S.C. § 841(a), related to writing opioid prescriptions for no legitimate medical reason. He wrote illegal prescriptions for thousands of opioids in exchange for cash or a kickback of some of the pills. Judge Neff described his behavior as “an attack on the integrity of the medical profession.”
“Dr. Piazza stands convicted of the same offenses we charge against street corner drug dealers,” U.S. Attorney Birge said. “Those who feed the opioid crisis by writing prescriptions for no legitimate medical purpose deserve to be treated this way under the law. In some ways, Dr. Piazza’s behavior was worse than that of a street dealer, because his status as a doctor gave his actions a false appearance of legitimacy.”
The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, the Michigan State Police, and the Lake County Sheriff’s Office. Assistant United States Attorney Clay Stiffler prosecuted the case.
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Door County Man Indicted on Production of Child Pornography ChargesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, a federal grand jury returned a two-count indictment against Christopher J. Kone (age: 36) of Sturgeon Bay, Wisconsin.
Kone faces two counts alleging that he engaged in the production of child pornography in violation of Title 18, United States Code, Section 2251(a).
If convicted of the charges, Kone faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment as to each count.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
This case was investigated by the Door County Sheriff’s Office, the Wisconsin Department of Justice - Division of Criminal Investigation, with the assistance of the Door County District Attorney’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Kenneth Gales
414-297-1700
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Department of Justice Issues Positive Business Review Letter to Companies Developing Plasma Therapies for Covid-19Read the Press Release
The Department of Justice announced today that it has no intention to challenge proposed efforts by Baxalta US Inc., Emergent BioSolutions Inc., Grifols Therapeutics LLC, and CSL Plasma Inc. (together, the “Requesting Parties”) to assist the Biomedical Advanced Research and Development Authority (BARDA) in designing quality standards for collecting COVID-19 convalescent plasma.
“This public-private collaboration will support innovation to develop life-saving medicines to treat COVID-19,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The department continues to stand ready to advise and assist whenever businesses meeting the exigent challenges of the pandemic face complex questions of antitrust law.”
As the department’s business review letter explains, convalescent plasma is taken from individuals who have had and recovered from COVID-19. The convalescent plasma can be given to patients directly, through infusion, or used to make hyperimmune globulin (HIg) therapies. The Requesting Parties aim to assist BARDA in the development of quality assurance parameters so that COVID-19 convalescent plasma collected by blood banks for direct transfusion under Project Warp Speed can be repurposed for use in the development and manufacture of each Party’s HIg therapies targeting COVID-19. The department believes these efforts are procompetitive to the extent that they will facilitate the more efficacious deployment of critical therapies for COVID-19, which could, in turn, improve the health and safety of Americans. The Requesting Parties have also put in place safeguards that minimize the risk their conduct will lessen competition.
This is the sixth expedited COVID-19 business review letter issued by the department since the department and the Federal Trade Commission first set out an expedited, temporary review procedure in the Joint Antitrust Statement Regarding COVID-19 (the “Joint Statement”). In April 2020, the department issued expedited business review letters to certain distributors of personal protective equipment (PPE) as well as the pharmaceuticals distributor AmerisourceBergen. Over the next several months, the department issued additional expedited business review letters to the National Pork Producers Council, certain manufacturers of monoclonal antibodies for use in COVID-19 vaccines and therapies, and a voluntary membership association of beauty salons.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Denouncing Violence; Reporting Information Regarding the January 6, 2020 Attack Upon the U.S Capitol & Self Help Tips for Coping in the AftermathRead the Press Release
Spokane – William D. Hyslop, U.S. Attorney for the Eastern District of Washington, issued the following statement:
The January 6, 2021, mob attack upon the United States Capitol was a shameful and reprehensible affront to our democracy, and I condemn it in the strongest possible way. Our Constitution protects the rights of free speech and assembly, but it does not protect mob violence, threats to harm public officials, assaults on law enforcement officers, or damage to government buildings. Those who engage in these behaviors commit serious crimes, and our criminal justice system will hold them accountable.
The United States Attorneys across the Nation work closely with our law enforcement partners, including the U.S. Attorney’s Office in the District of Columbia and the Federal Bureau of Investigation, to ensure that any individuals who were involved in criminal activity at the U.S. Capitol are brought to justice.
Anyone with information regarding the events of January 6 should contact the Federal Bureau of Investigation: https://tips.fbi.gov/digitalmedia/aad18481a3e8f02 .
Likewise, the January 6, 2021 event has been traumatizing to many. Recognizing the mental health impact of this terrible day, the National Mass Violence and Victimization Resource Center (NMVVRC) has developed “Twelve Self-help Tips for Coping in the Aftermath of the Attack on the U.S. Capitol,” which can be accessed via the NMVVRC website at this link: http://nmvvrc.org/TipSheets/Self-Help%20Tip%20Sheet.pdf A copy is also accessible at the website for the United States Attorney for the Eastern District of Washington: /media/1114276/dl?inline
The NMVVRC was established in 2017 through a cooperative agreement with the U.S. Department of Justice, Office for Victims of Crime. The mission of the NMVVRC is to improve community preparedness and the nation’s capacity to serve victims recovering from mass violence through research, planning, training, technology, and collaboration.
Crips Gang Member Sentenced to 100 Months in Prison in Connection with Attempted Murder as Part of RICO ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey Grape Street Crips was sentenced today to 100 months in prison for his role in an attempted murder charged as part of a RICO conspiracy, as well as narcotics trafficking, acting U.S. Attorney Rachael A. Honig announced.
Sean Hills, a/k/a “Half A Brain,” a/k/a “Half,” a/k/a “Rydaman,” 29, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and distribution of cocaine. Judge Arleo imposed the sentence by videoconference today.
Since 2015, more than 80 members of the New Jersey Grape Street Crips have been convicted federally in connection with multiple murders, attempted murders, shootings, drug trafficking, firearms charges, and witness intimidation as part of a coordinated investigation by the FBI, the Drug Enforcement Administration (DEA), and local law enforcement partners.
According to documents filed in this case and statements made in court:
Hills is a long-time member of the New Jersey Grape Street Crips who has the gang’s senior hierarchy tattooed on his face. On Dec. 15, 2012, Hills repeatedly shot Victim-1 near the area of South 14th Street and 14th Avenue, an area that Hills and other gang members were trying to take over as part of their drug-trafficking territory. As part of the sentencing, the Court also considered a shooting Hills committed on Feb. 1, 2013, when he shot Victim-2 numerous times. Both victims survived the attacks. Hills was additionally sentenced for separate instances of possession with intent to distribute of cocaine. In addition to the prison term, Judge Arleo sentenced Hills to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing. She also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for assistance.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the Criminal Division and Jamel Semper, Chief of the Organized Crime and Gangs Unit in Newark.
Couple Sentenced for Obtaining $1.7 Million in Military Health Care Kickback SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KIMBERLY HOMRIGHAUSEN, age 44, and RICHARD HOMRIGHAUSEN, age 37, were sentenced on January 7, 2021 by United States District Judge Barry W. Ashe for conspiracy to pay and receive kickbacks related to compounded medications paid for by TRICARE, a federally funded health care benefit program that serves United States military personnel and their families. At their guilty pleas, the defendants admitted to paying kickbacks to TRICARE beneficiaries to induce them to obtain compounded medications, costing TRICARE a total of approximately $9 million. To conceal the kickbacks, the defendants created a purported non-profit that paid off the beneficiaries under the guise of “grants” to thank them for their military service.
Judge Ashe sentenced RICHARD HOMRIGHAUSEN to two years’ imprisonment, KIMBERLY HOMRIGHAUSEN to one year and one day imprisonment and 3 years of supervised release for both defendants. Judge Ashe also ordered both defendants to pay restitution in the amount of $1,754,518—the amount of money they obtained through the scheme.
“The Defense Criminal Investigative Service and our investigative partners are committed to seeking out and fully investigating companies that utilize improper billing to deprive military families of precious resources,” said Special Agent in Charge Cynthia A. Bruce, DCIS, Southeast Field Office. “Billing healthcare programs for medically unnecessary medications not only undermines the viability of those programs, it exploits all citizens."
U.S. Attorney Strasser praised the work of the Defense Criminal Investigative Service, the Department of Homeland Security - Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Service - Office of Inspector General, and the Department of Veterans Affairs - Office of Inspector General in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Convicted Hacker Charged with Fraud and Identity Theft Committed While Incarcerated in Federal PrisonRead the Press Release
SAN FRANCISCO - A federal complaint was unsealed today charging Ardit Ferizi with wire fraud and aggravated identity theft, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge Rachel L. Rojas, of the Jacksonville, Florida, FBI Division.
Ardit Ferizi, 25, a Kosovo citizen, last resided in Malaysia before being brought to the Eastern District of Virginia (EDVA) in 2016 to face federal criminal charges. Ferizi pleaded guilty to unauthorized access of computer information and to providing material support to a foreign terrorist group by providing personally identifiable information of United States government personnel to the Islamic State of Iraq and al-Sham (ISIS). He was sentenced to 20 years incarceration in the federal Bureau of Prisons.
According to the complaint, Ferizi’s sentence was reduced in December 2020 to time-served, plus 10 years of supervised release to be served in Kosovo, following the granting of a motion for compassionate release by an EDVA federal judge. Ferizi was awaiting deportation when the FBI determined he continued his criminal activities and had committed multiple new federal offenses while incarcerated at the Federal Correctional Institute in Terre Haute, Indiana.
“We allege Ferizi provided access to personal information of U.S. citizens, even as he was serving his prison sentence for providing similar information to ISIS,” said U.S. Attorney Anderson. “Ferizi’s alleged criminal conduct continued in prison notwithstanding his petition for an early prison release.”
"Ardit Ferizi is an admitted criminal who endangered the lives of over 1,000 Americans by sharing their personal information with members of a dangerous terrorist organization," said Special Agent in Charge Rojas, in charge of the FBI Jacksonville Division. “The FBI has never wavered in our commitment to seek justice for his innocent victims, and we will continue to vigorously investigate him and anyone else who is intent on harming our nation and citizens.”
According to an FBI agent’s affidavit filed in support of the criminal complaint, in 2017 and 2018 Ferizi had been involved in multiple fraudulent schemes from prison by coordinating with a family member who was operating Ferizi’s email accounts while Ferizi was incarcerated. Ferizi instructed the family member to “keep my email alive and not expiring” and passed his email addresses and passwords on to his family member. The FBI was able to determine that at least one email account included large databases of stolen personally identifiable information, extensive lists of stolen email accounts, partial credit card numbers, passwords, and other confidential information. According to the complaint affidavit, the databases of stolen personal information were the fruits of Ferizi’s criminal hacking activity. Based on an IP address resolving to Kosovo, login activity to Ferizi’s other e-mail accounts, and other investigative information, it was determined the family member downloaded the databases of stolen information to liquidate the proceeds of Ferizi’s previous criminal hacking activity.
In the course of these new crimes, Ferizi and his family member are alleged to have used electronic services of Google, PayPal, and Coinbase, each of which is located in the Northern District of California. The affidavit further alleges that Ferizi continued to communicate with others to further this scheme while in custody. It is alleged that electronic communications were used to further the scheme and that personal data and information used belonged to real individuals who were victimized.
Ferizi is charged with one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, and one count of wire fraud in violation of Title 18, United States Code, Section 1343. If convicted of wire fraud, he faces a maximum penalty of 20 years in prison and a fine of $250,000. If convicted of aggravated identity theft, he faces a mandatory penalty of 2 years in prison in addition to the punishment imposed for a wire fraud conviction. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Ferizi currently is in federal custody and will be transported to the Northern District of California to face the new federal charges. His initial federal court appearance to face the new charges has not yet been scheduled.
The Corporate Fraud Strike Force of the Northern District of California U.S. Attorney’s Office is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation Jacksonville and Washington field offices.
Clay County Man Indicted in Nationwide Mortgage Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Brian Roy Lozito (51, Orange Park) with conspiracy to commit wire fraud and 12 counts of wire fraud. If convicted, Lozito faces a maximum penalty of 20 years in federal prison on each count and payment of restitution to the victims he defrauded. Lozito was arraigned on the charges on January 11, 2021. His trial is set for March 1, 2021.
According to the indictment, Lozito owned and managed American Investigative Services (AIS). AIS purported to offer consumers mortgage auditing services in exchange for a fee. Lozito and his conspirators solicited customers nationwide through mailings and telephone calls. In these solicitations, Lozito and AIS employees under his direction made false and fraudulent representations to consumers, including that AIS would perform “forensic audits” of mortgage documents in order to uncover evidence of deficiencies in the mortgage documents. Lozito claimed AIS would obtain quitclaim deeds and other remedies, so the mortgage holders would be relieved of their mortgage debt and own their properties free and clear. If AIS could not help the consumer, Lozito promised to refund their money. In reality, AIS did not perform the services paid for by consumers and did not refund money to consumers. Money collected from consumers went to bank accounts controlled by Lozito, and he spent the money.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Secret Service (Jacksonville Field Office) and the Office of the Florida Attorney General – Consumer Protection Division, with assistance from the Clay County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Career Criminal Indicted on Fentanyl PossessionRead the Press Release
BOSTON – A Brockton man was indicted by a federal grand jury yesterday in connection with fentanyl and cocaine possession.
Dedrick Lindsey, 37, was charged in a superseding indictment with one count of possession with intent to distribute fentanyl and cocaine. Lindsey was previously indicted on one count of possession of a firearm by a convicted felon.
Lindsey was arrested on state charges on July 19, 2018, after law enforcement found a .25 caliber pistol, 18 grams of fentanyl and 10.5 grams of cocaine in his possession. Lindsey is prohibited from possessing a firearm due to previous drug convictions, which are all punishable by more than a year in prison.
The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, a minimum of one year and up to three years of supervised release and a fine of up to $250,000. As an armed career criminal, Lindsey is subject to a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release and a $250,000 fine. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistant U.S. Attorney Elysa Wan of Lelling’s Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canton Woman Pleads Guilty to Role in BEC SchemeRead the Press Release
BOSTON – A Canton woman pleaded guilty yesterday in federal court in Boston in connection with a business email compromise (BEC) scheme.
Bintu Toure, 26, pleaded guilty to wire fraud and money laundering conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 16, 2021. Toure was charged in September 2019 for her role in the scheme.
Toure is the second individual to be convicted in connection with this scheme, following the guilty plea of Yannick Minang a/k/a “Africa” last year.
Toure conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of a BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Through the use of fraudulent invoices and spoofed email accounts, Toure conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under her control. Toure and her co-conspirators then transferred funds from the accounts on to others located overseas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney William B. Brady, of Lelling’s Criminal Division and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.
Canadian Man Arrested at the Peace Bridge with over One-Half Ton of Suspected MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Xiao Liu, 27, a resident of Canada, was arrested and charged by criminal complaint with possessing with intent to distribute 100 kilograms or more of marijuana, and importation of marijuana into the United States. The charges carry a maximum penalty of 40 years in prison.
Assistant U.S. Attorney Richard Antoine, who is handling the case, stated that according to the complaint, on January 10, 2021, a Customs and Border Protection Officer encountered the defendant in the commercial truck processing lane at the Peace Bridge Port of Entry. Liu was driving a commercial truck bearing Ontario license plates and stated that he was hauling a shipment of wax. The officer asked the defendant to open the sleeper cab curtain, which he did, but only partially. Unable to see inside, the officer again asked Liu to open the curtain and back up a few feet so he could see into the sleeper cab. Liu complied and the officer observed black bags filling the sleeper cab from the floor to the ceiling. When questioned, the defendant stated that the bags belonged to a friend and he was taking them to Buffalo. Liu was referred to X-ray inspection for further processing.
A scan of the tractor trailer revealed a large anomaly in the bunk area of the tractor. An officer then physically inspected the tractor cab. Upon entering the cab, the officer immediately detected a smell consistent with marijuana, and observed hockey bags stacked from the floor to the ceiling in the bunk area of the tractor cab. The officer opened one bag and noticed multiple vacuum sealed bags of a green leafy substance, suspected to be marijuana. Liu was taken into custody at that time. CBO officers then offloaded a total of 30 hockey bags which included 1,139 vacuum sealed bags of suspected marijuana weighing approximately 1,281 pounds.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Burlington County Man Admits Role in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a drug-trafficking organization that distributed heroin and cocaine in Camden, Acting U.S. Attorney Rachael A. Honig announced.
Dwight Williams, 29, of Mount Holly, New Jersey, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to possess and possess with intent to distribute heroin and cocaine
According to documents filed in this case and statements made in court:
An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations a drug-trafficking organization based on the 500 block of Pine Street in Camden.
Williams and 15 other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Carlos Perez, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, David Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, Meylin Troncoso, and Jose Agron – have now pleaded guilty in this case.
The charges against three other defendants remain pending, and they are presumed innocent unless and until proven guilty.
The count to which Williams pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for May 17, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Buffalo Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Saan Thompson, 41 a/k/a Duke, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Laura A. Higgins and Richard Antoine, who are handling the case, stated that between July 2019, and January 10, 2020, the defendant conspired with others to sell cocaine. Thompson utilized a residence at 189 May Street in Buffalo to store and distribute bulk quantities of cocaine and crack cocaine base to other individuals, including co-defendants, Louis Gilbert, Antoine Gilbert, and Ronnie Charleston. The defendant also stored proceeds of his drug trafficking activities at his Shirley Avenue residence in Buffalo.
On August 5, 2020, a search warrant was executed at the defendant’s residence. Investigators seized $28,355 in cash, approximately 234 grams of marijuana, and a digital scale. That same day, investigators also executed a search warrant at 189 May Street and seized 1,000 grams of cocaine, five bags of crack cocaine, two additional bags of cocaine, a digital scale, packaging and drug-processing materials.
Charges remain pending against Louis Gilbert, Antoine Gilbert, and Ronnie Charleston. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing will be scheduled at a later date.
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Brownsville Felon Sentenced to Prison for Manufacturing and Selling Explosive MaterialRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of KENNETH RAY MILLER, 58, to 22 months in prison for manufacturing and dealing in explosive material. MILLER, who pleaded guilty on September 8, 2020, was sentenced earlier today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to MILLER’s guilty plea and documents filed with the court, in the spring of 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was notified of a Popular Science magazine article about MILLER manufacturing pyrotechnics on his property in Brownsville, Minnesota. MILLER, a convicted felon, is prohibited from possessing firearms and manufacturing and dealing in explosive material.
According to MILLER’s guilty plea and documents filed with the court, from 2013 to March 3, 2020, he manufactured and sold smoke generating devices containing electric igniters (also known as electric matches) and a chlorate explosive mixture to customers across the country. MILLER admitted that he did not have a license, permit, exemption or other authorization from the ATF to possess or use the electric matches or chlorate explosive mixtures.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Houston County Sheriff’s Office, the St. Paul Police Department, the U.S. Environmental Protection Agency, the Minnesota Department of Natural Resources, and the Minnesota Department of Public Safety (State Fire Marshal).
Assistant U.S. Attorney Emily A. Polachek prosecuted the case.
Defendant Information:
KENNETH RAY MILLER, 58
Brownsville, Minn.
Convicted:
- Manufacturing and dealing explosive materials, 1 count
Sentenced:
- 22 months in prison
- Three years of supervised release
- Prohibited from buying, selling, using, or possessing pyrotechnic materials
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brazilian National Sentenced for Firearms TraffickingRead the Press Release
BOSTON – A Brazilian national, who previously resided in Malden, was sentenced yesterday for immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and two years of supervised release. Upon completion of his sentence, DeAraujo will be placed into removal proceedings and deported to Brazil.
On Sept. 30, 2020, DeAraujo pleaded guilty to one count of dealing in firearms without a license, two counts of being an alien in possession of a firearm and ammunition and one count of illegal reentry of a previously deported alien. DeAraujo was arrested on May 29, 2019 and has been in federal custody since.
On Aug.11, 2011, DeAraujo, who was determined to be illegally present in the United States, was deported to Brazil. Sometime after his removal, DeAraujo illegally reentered the United States and between Sept. 6, 2018 and Jan. 28, 2019, DeAraujo illegally sold two semi-automatic firearms and ammunition.
United States Attorney Andrew E. Lelling; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made announcement. Valuable assistance was provided by Homeland Security Investigations in Boston; the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and the Malden Police Department. Assistant U.S. Attorneys Kenneth G. Shine and Lindsey Weinstein of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in connection with surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 36, pleaded guilty to two counts of possession of child pornography. Thai was arrested on March 11, 2019 by criminal complaint and indicted later that month. U.S. District Court Judge William G. Young scheduled sentencing for May 13, 2021.
According to the charging documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai on campus. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera. Those charges are currently pending in Middlesex County Superior Court.
Following Thai’s arrest, a search of his home was executed where dozens of devices including computer hard drives, thumb drives, covert and regular cameras, computers, iPads, cell phones and multiple SD and Sim cards were recovered. Investigators found several electronic folders labeled BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports and foreign country locations. Thai was charged federally for the child pornography located in the Boston Latin folders, which contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in the boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017, all after school hours.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession.
The charges of possession of child pornography provide for a sentence of up to 10 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. According to the terms of the plea agreement, the government will recommend a sentence of between 108 and 180 months in prison. 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; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boeing owned drone maker to pay $25 million to settle False Claims Act allegations it used recycled parts on military projectsRead the Press Release
Seattle –Insitu Inc., headquartered in Bingen, Washington, has agreed to pay $25 million to settle allegations that it violated the False Claims Act by knowingly submitting materially false cost and pricing data for contracts with the United States Special Operations Command (SOCOM) and the Department of the Navy (Navy) to supply and operate Unmanned Aerial Vehicles (UAVs), the Department of Justice announced today.
“We expect companies that seek to do business with the government to provide complete and accurate information so contract prices can be negotiated on a level playing field,” said Acting Assistant Attorney General of the Justice Department’s Civil Division Jeffrey Bossert Clark. “This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines that taxpayer dollars have been misused.”
Between January 1, 2009, and December 31, 2017, Insitu entered into five contracts with the Navy and two contracts with SOCOM for the supply and operation of UAVs, also known as “drones,” at various sites identified in the contracts. The settlement resolves allegations that Insitu knowingly induced the government to award it these seven, noncompetitively bid contracts at inflated prices by proposing cost and pricing data for new parts and materials in support of its contract proposal while planning to and in fact using less expensive recycled, refurbished, reconditioned, and/or reconfigured parts to perform the contracts.
“Taxpayers deserve to get what they paid for – especially in significant no-bid military contracts,” said U.S. Attorney Brian T. Moran. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
“The Naval Criminal Investigative Service is dedicated to protecting the taxpayer’s interests and safeguarding critical services for the war fighter,” stated Charles P. King, Special Agent in Charge, NCIS Northwest Field Office. “The success of the Department of the Navy’s war fighting ability is dependent upon a sound, transparent and honest acquisition process. I want to thank the Department of Justice and our law enforcement partners for their incredible support and dedication during this investigation.”
“Defense contractors are required to obey strict standards when proposing cost and pricing data for work to be performed on government contracts,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “The pursuit and favorable settlement of this civil litigation is yet another example of our agents and law enforcement partners working together to uncover fraudulent activity and protect taxpayers' dollars entrusted to the DoD.”
The settlements resolve allegations filed in a lawsuit by D R O’Hara, a former executive of Insitu, in federal court in Seattle, Washington. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. O’Hara will receive $4,625,000 of the recovered funds.
The settlements were the result of a coordinated effort by the Commercial Litigation Branch (Fraud Section) of the Civil Division of the Department of Justice, the United States Attorney’s Office for the Western District of Washington, the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and the Defense Criminal Investigative Service.
The case is captioned United States ex rel. O’Hara v. Insitu, Inc. and The Boeing Company,Case No. C15-1527-JCC (W.D.Wash.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Assistant United States Attorney Kayla Stahman handled the matter for the U.S. Attorney's Office, Western District of Washington and DOJ's Commercial Litigation Branch was represented by Senior Trial Attorney Don Williamson.