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12 January 2021
Aroostook County Man Pleads Guilty to Federal Drug Importation ChargeRead the Press Release
BANGOR, Maine: An Aroostook County man pleaded guilty today in federal court to importing methamphetamine into the United States from Canada, U.S. Attorney Halsey B. Frank announced.
According to court records, on November 19, 2019, Lance Labreck, 25, of Hamlin, drove a snowmobile from the U.S. across the international border into Canada. Later that evening, he returned to the U.S. via snowmobile, carrying with him approximately 55 grams of methamphetamine he had obtained in Canada. When stopped by Border Patrol Agents, he admitted to possessing the methamphetamine and bringing it back over the international border into the U.S.
Labreck faces at least 10 years and up to life in prison. He also faces a $10 million fine and at least five years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations, the U.S. Border Patrol and the U.S. Drug Enforcement Administration investigated the case.
Amherst Man Arrested for Threatening Members of CongressRead the Press Release
CONCORD – Ryder Winegar, 33, of Amherst, was arrested on a federal complaint charging him with threating members of Congress, United States Attorney Scott W. Murray announced today.
The complaint filed in court alleges that on December 16 and 17, 2020, Winegar left voicemails at the offices of six members of the United States Congress in the District of Columbia. In some of the messages, Winegar identified himself by name or identified his telephone number. The voicemails threatened to hang the members of Congress if they did not “get behind Donald Trump.” For example, in one message, Winegar allegedly said, “I got some advice for you. Here’s the advice, Donald Trump is your president. If you don’t get behind him, we’re going to hang you until you die.”
Winegar was arrested on January 11, 2021, in Boston and is scheduled to appear before a federal magistrate judge later 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 U.S. Capitol Police with assistance from the United States Marshals Service, U.S. Customs and Border Protection, and the Amherst Police Department.
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Adel Woman Pleads Guilty to Maintaining A Drug PremisesRead the Press Release
ALBANY, Ga. – An Adel, Georgia, woman is facing up to 20 years in prison for maintaining a drug premises, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kiera Keann Cooksey, 29, of Adel, pleaded guilty to one count using or maintaining a drug premises before U.S. District Judge Louis Sands today. Cooksey faces a maximum 20 years in prison, to be followed by five years of supervised release and a $500,000 fine. A sentencing date has not been scheduled. There is no parole in the federal system.e
Cooksey admitted in her signed plea agreement that she knowingly used and maintained her Adel residence for the purpose of distributing cocaine, crack cocaine and marijuana between March 30, 2017 and May 12, 2017. According to the plea agreement, Adel Police Department officers, working with a Confidential Informant (CI), began an investigation into the sale of illegal narcotics at Cooksey’s residence. Four controlled purchases were conducted at the residence. On May 11, 2017, officers executed a search warrant, arresting Cooksey and a co-defendant, Frederick Moore, aka “Iron Man,” 32, of Adel. Officers found ten packages of cocaine weighing approximately 232 grams stuffed in a toilet, cocaine base, marijuana, drug paraphernalia and a firearm.
“The penalty is steep for individuals who knowingly use their home to facilitate the distribution of illegal drugs—a maximum 20 years in prison, without parole,” said Acting U.S. Attorney Leary. “I want to thank the Adel Police Department and the DEA for their work investigating this case.”
Federal charges remain pending against co-defendant Moore: one count of conspiracy to possess with intent to distribute marijuana, one count of distribution of marijuana, one count of possession with intent to distribute cocaine and cocaine base, one count of possession of a firearm by a convicted felon and one count of possessing a firearm during and in relation to a drug trafficking crime. An indictment is only an allegation of criminal conduct. Moore is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
The investigation was conducted by the Adel Police Department and the Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant U.S. Attorney Sonja Profit. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Acting United States Attorney for the District of Columbia Michael R. Sherwin's Statement Condemning Violence against the Media and Inviting the Report of Such ViolenceRead the Press Release
WASHINGTON - The United States Attorney’s Office for the District of Columbia, along with its law enforcement partners, is aware of reports of violence, including assaults, threats, and property damage, against members of the press while they were engaged in covering events unfolding at the United States Capitol on January 6. Such violence will not be tolerated. We are resolutely committed to upholding the freedoms guaranteed by the First Amendment, including speech, peaceful assembly, and press, and we will investigate, prosecute, and hold accountable anyone who attempts to obstruct or curtail these freedoms through violence or intimidation.
The United States Attorney’s Office invites members of the press to report any instances where a reporter, journalist, photographer, videographer, or other member of the press or broadcast media was the victim of an assault, threat, or property damage during the events of January 6 at the United States Capitol. Such information, to include video and photographic evidence, can be emailed to [email protected]. As appropriate, a prosecutor or law enforcement agent may follow up for further information.
We will spare no effort to bring to justice all those who committed lawless and violent acts of any kind, including against members of the media.
Acting Manhattan U.S. Attorney Announces Settlement of Civil Forfeiture Claims Against over $50 Million Laundered Through Black Market Peso ExchangeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Timothy J. Shea, the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), and Susan A. Gibson, the Special Agent in Charge of the New Jersey Division of the DEA, announced today that the United States has settled a civil forfeiture action against assets of Sefira Capital LLC (“Sefira”) and 31 subsidiary corporations, which own high-end commercial and residential real estate throughout the United States. The Government’s complaint, which was filed on January 8, 2021, alleged that the defendant corporations accepted millions of dollars of narcotics proceeds laundered through the shadow financial system commonly known as the Black Market Peso Exchange, for investment in various real estate ventures.
In the stipulation of settlement filed with U.S. District Judge Andrew L. Carter Jr. today, which is still subject to approval by the Court, the defendant corporations agree to forfeit $29 million to resolve the Government’s claims, representing approximately $22.5 million previously seized from Sefira and its subsidiaries, and an approximately $6.5 million payment in lieu of the forfeiture of certain real estate interests. As part of the settlement, Sefira agreed to conduct reasonable due diligence on future investors, and not to accept investment funds from any source other than the actual investor.
In a related civil forfeiture action, the Government filed today a proposed judgment of forfeiture with U.S. District Judge George B. Daniels, covering $23.2 million seized from Hampus Assets, Inc., and Kaunas Assets Corp. in connection with their acceptance of millions of dollars of narcotics proceeds laundered through the Black Market Peso Exchange. Hampus Assets and Kaunas Assets previously entered into a settlement consenting to the forfeiture of the funds, agreeing to conduct reasonable due diligence on future deposits into bank accounts under their control, and to refrain from conducting certain cross-border money transfers.
Acting Manhattan U.S. Attorney Audrey Strauss said: “The Black Market Peso Exchange facilitates the laundering of vast sums of drug trafficking proceeds generated in the U.S., enabling the conversion of U.S. dollars into the currencies of drug trafficking organizations’ countries. The forfeiture filings announced today signal not only the surrender of more than $50 million in laundered proceeds, but also the agreement of corporate defendants to exercise due diligence to ensure they are not assisting in or facilitating money laundering.”
DEA Acting Administrator Timothy J. Shea said: “The alleged laundering of millions of dollars of illicit proceeds shows the incredible profit generated by ruthless drug cartels who only care about money and power, not the suffering of Americans or devastated communities left behind. The DEA’s unique ability to infiltrate money laundering organizations is essential to illuminating the global networks used to repatriate drug proceeds around the globe. Money is the lifeblood of the cartels, and DEA, together with our law enforcement partners, is committed to identifying, targeting, and prosecuting these organizations to protect the American people.”
The Government lawsuits alleged as follows:
The Black Market Peso Exchange allows drug trafficking organizations to transfer narcotics proceeds from the United States to the country in which they operate while concealing the source and nature of the funds. Drug trafficking organizations will sell bulk United States currency earned from their drug operations in the U.S. to money laundering brokers at a discount, in exchange for payment in the home country or countries of the drug trafficking organization in their local currency. To finance the transactions, the brokers will purchase bulk currency in the local currency of the drug trafficking organizations, typically from individuals who wish to transfer money to the United States while avoiding the banking system. The brokers pay these individuals by depositing the U.S. dollar drug proceeds into U.S.-based shell accounts, and then transferring them to accounts controlled by the individuals, or for their benefit.
As part of an investigation of international money laundering, the DEA used confidential sources to facilitate transactions on the Black Market Peso Exchange to uncover persons engaged in illegal activity and develop evidence for criminal prosecutions. As part of the DEA undercover operation, confidential sources bought narcotics proceeds on the Black Market Peso Exchange, and then transferred those funds to U.S.-based accounts in the United States at the direction of money laundering brokers.
Sefira is a Florida-based boutique investment company that has raised over $100 million in capital from various investors (“Sefira Investors”) to invest in real estate projects primarily in the Southeastern United States. From 2016 to 2019, Sefira or its subsidiaries received millions of dollars in criminal proceeds from certain Sefira Investors as part of an effort by drug trafficking organizations and others to launder the criminal proceeds through the Black Market Peso Exchange.
Between January 2018 and January 29, 2019, the DEA transferred millions of dollars of narcotics proceeds to certain Sefira subsidiaries at the instruction of money-laundering brokers. These funds were wired from DEA undercover accounts that were not titled in the name of, or under the control of, any particular Sefira Investor. Sefira accepted these funds without inquiring as to the source of ownership of these accounts or funds.
In addition, millions of dollars of criminal proceeds were used to fund other Sefira Investors’ investments in Sefira. Sefira ignored similar red flags for those investments, including discrepancies between the purported investment amount and the actual amount Sefira received from Sefira Investors, as well as discrepancies between the purported Sefira Investors and the entities sending the investments to Sefira.
Between July 2018 and February 2019, Hampus Assets received millions of dollars from a shell company used to transfer narcotics proceeds on the Black Market Peso Exchange. These deposits came in large amounts in rapid succession and did not follow an observable business pattern. In October 2018, Hampus Assets transferred a portion of these proceeds to Kaunas Assets Corp.
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Ms. Strauss praised the outstanding investigative work of Special Agents from the DEA New Jersey, Enforcement Group 2.
This case is being handled by the Office’s Narcotics and Money Laundering and Transnational Criminal Enterprises Units. Assistant United States Attorneys Aline R. Flodr, Stephanie Lake, and Sheb Swett are in charge of the case.
Acting AG and Five Country Statement on the Temporary Derogation to the ePrivacy Directive to Combat Child Sexual Exploitation and AbuseRead the Press Release
Acting Attorney General Jeffrey A. Rosen joined the Home Affairs, Interior, and Security Ministers of Australia, Canada, New Zealand, and the United Kingdom in issuing the following statement:
“We, the Home Affairs, Interior, and Security Ministers of Australia, Canada, New Zealand, the United Kingdom and the United States of America (‘the Five Countries’), are proud of our collective work alongside our European partners to combat online child sexual exploitation and abuse. Together, we have taken the lead in working with the world’s largest technology companies to develop new and better ways to protect children from the production and circulation of child sexual abuse material, grooming, live-streamed abuse, and all other forms of sexual abuse occurring on online platforms.
In this statement, we highlight how from December 21 2020, the ePrivacy Directive, applied without derogation, will make it easier for children to be sexually exploited and abused without detection – and how the ePrivacy Directive could make it impossible both for providers of internet communications services, and for law enforcement, to investigate and prevent such exploitation and abuse. It is accordingly essential that the European Union adopt urgently the derogation to the ePrivacy Directive as proposed by the European Commission in order for the essential work carried out by service providers to shield endangered children in Europe and around the world to continue.
Without decisive action, from December 21, 2020 internet-based messaging services and e-mail services captured by the European Electronic Communications Code’s (EECC) new, broader definition of ‘electronic communications services’ are covered by the ePrivacy Directive. The providers of electronic communications services must comply with the obligation to respect the confidentiality of communications and the conditions for processing communications data in accordance with the ePrivacy Directive. In the absence of any relevant national measures made under Article 15 of that Directive, this will have the effect of making it illegal for service providers operating within the EU to use their current tools to protect children, with the impact on victims felt worldwide.
We note the European Parliament Committee on Civil Liberties, Justice and Home Affairs’ (LIBE) voted on December 7, 2020 in favor of the Temporary derogation from certain provisions of Directive 2002/58 as regards the use of technologies by number-independent interpersonal communications service providers for the processing of personal data and other data for the purpose of combatting child sexual abuse online. We now urge the Presidency of the Council, the European Commission and the European Parliament to come to a rapid agreement at Trilogue on a final text that ensures that this important work can continue as it does today.
The European Union has a unique role to play in the global fight against online child sexual exploitation. It is essential that the European Union adopt measures that ensure not only the legal authority, but also the practical ability, for providers to use tools to detect online child sexual exploitation. For example, a requirement that tools have false positives less than 1:50 billion would prevent the use of some of the most common and effective tools used today to rescue children. Without that ability the Union places its own Strategy for a More Effective Fight against Child Sexual Abuse in jeopardy.
In July 2020, we welcomed the launch of the European Union (EU) Strategy for a More Effective Fight against Child Sexual Abuse. In particular, we were pleased to see the EU commit to ‘propose the necessary legislation to tackle child sexual abuse online effectively, including by requiring relevant online services providers to detect known child sexual abuse material and to report that material to public authorities.’
These commitments strongly align with the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse, which were developed by the Five Countries in close consultation with six leading platforms. We launched the Voluntary Principles in March 2020 to provide a framework for the technology industry to combat online child sexual exploitation and abuse—they are intended to drive both individual company efforts and collective industry action. But those Voluntary Principles are predicated upon the continuation of companies’ legal and technical ability to identify and take action against child sexual abuse content and activity on their platforms.
Certain providers of communications services already voluntarily use specific technologies to detect, report, and remove child sexual abuse material on their services. United States-based electronic service providers are legally obliged to report instances of child sexual abuse to the National Center for Missing and Exploited Children (NCMEC). In 2019, these electronic service providers made 16.9 million reports to NCMEC, comprising 69.1 million videos, images and files. The number of reports in 2020 is expected to eclipse previous years, with NCMEC President and Chief Executive Officer John F. Clark noting, in his letter of November 2020 to Members of the European Parliament, that ‘[i]n the first nine months of 2020, more than 52 million child sexual abuse files have been reported to NCMEC, and more than 2.3 million of these files involve an offender or a child victim in the EU’.
The vast majority of NCMEC reports come from direct messaging services and are usually generated as a result of platforms’ use of automated hashing measures (such as PhotoDNA), grooming indicators, artificial intelligence and other technologies to identify and report child sexual abuse material. The Commission’s proposals for a temporary derogation address the unintended consequences of the EECC and ensures companies can continue to use highly effective tools to detect, report and remove child sexual abuse material online until at least the end of 2022.
We are now calling upon friends and partners in the EU to carry out their responsibility to protect not only European children, but also children around the world whose abuse will be shared among EU citizens that providers will be blind to stop. We therefore urge you, on behalf of children around the world, to allow the work that is being done to protect them from sexual abuse and exploitation to continue.
We look forward to continuing to work with you as your closest international partners in tackling child sexual exploitation and abuse, both in our respective countries and around the world.”
Signatories,
Jeffrey A. Rosen, Acting Attorney General of the United States
Rt Hon Priti Patel MP, Secretary of State for the Home Department for the United Kingdom
The Hon Peter Dutton MP, Minister for Home Affairs for Australia
The Hon Jan Tinetti, Minister of Internal Affairs for New Zealand
The Hon Bill Blair, Minister of Public Safety and Emergency Preparedness for Canada
Accountant Sentenced to Prison for Tax Evasion and Obstruction OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LOUIS DeMAIO, 70, of Guilford, was sentenced today by U.S. District Judge Janet Bond Arterton to 30 months of imprisonment, followed by one year of supervised release, for tax evasion and obstruction offenses.
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, DeMaio was employed as an accountant in East Haven and, from approximately 2010 to 2018, also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies. Although DeMaio listed an individual (“Individual A”) on paper as the owner of Almatt, Almatt was effectively owned and run by DeMaio.
As part of Almatt’s operating procedures, Almatt invoiced construction companies for the cost of labor provided and, from the payments received from the companies, paid the employees for services rendered. Almatt and DeMaio then provided the employees with W-2 forms reflecting that Almatt had undertaken required federal tax withholdings. However, Almatt and DeMaio failed to withhold taxes and subsequently failed to pay over those withholdings to the IRS. Almatt also never filed yearly income tax returns or quarterly 941 forms reflecting federal withholding and payroll taxes owed.
In addition, DeMaio issued hundreds of thousands of dollars of checks from Almatt made out to himself and to family members who did not work at the business. From 2010 through 2018, DeMaio and his family received more than $2.5 million from Almatt. DeMaio failed to report any of these distributions on his federal personal income tax returns.
In 2015, the IRS initiated a civil examination of Almatt, and then expanded the examination to evaluate the completeness of DeMaio’s personal income tax returns. When the IRS confronted DeMaio about his failure to report income paid to him by Almatt, DeMaio fabricated a story that a substantial portion of the payments he received from Almatt were loan repayments from Individual A. DeMaio also provided an IRS revenue agent with a false notarized document that DeMaio had created to support his story. When the civil investigation was referred to IRS Criminal Investigation, DeMaio confirmed the fake loan repayment story in an interview with IRS special agents.
The investigation revealed that DeMaio underreported his income by more than $2.5 million. The tax loss as a result of DeMaio’s criminal conduct is $1,132,398.
Judge Arterton ordered DeMaio to pay full restitution, as well as interest and penalties.
On August 11, 2020, DeMaio pleaded guilty to one count of tax evasion and one count of obstructing and impeding the due administration of Internal Revenue laws.
DeMaio, who is released on a $100,000 bond, is required to report to prison on May 12, 2021.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
11 January 2021
Wheeling man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Devon Alexander Bertram, of Wheeling, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Bertram, also known as “VON,” 31, pled guilty to one count of “Distribution of Cocaine Base within 1000 Feet of a Protected Location.” Bertram admitted to selling cocaine base or “crack” near The Linsly School in March 2020 in Ohio County.
Bertram faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Wheeling Man Sentenced to 15 Years in Federal Prison for Conspiracy to Produce Child PornographyRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that Randall Lee Peggs, also known as “Randy Peggs,” 57, of Wheeling, was sentenced to 15 years in federal prison for conspiracy to produce child pornography. Upon completion of his prison sentence, the defendant will serve a 20 year term of supervised release. Peggs also was ordered to pay $42,900 in restitution to the child victim, which will be joint and several with his codefendant, Elizabeth Haway. Last month, Haway was sentenced to 20 years in prison.
“Egregious,” said United States Attorney Mike Stuart. “The heinous acts of Peggs and co-conspirator, Elizabeth Haway, have caused lifelong trauma to the young victim in this case. They will now be behind bars, away from West Virginia children, for the next 15 and 20 years, respectively.”
Peggs previously admitted that he began talking with codefendant Elizabeth Haway, of Princeton, on Facebook in November 2018. Over the course of several months, Peggs and Haway conspired to produce child pornography of a female minor child. The majority of their communications occurred on Facebook Messenger. Peggs encouraged Haway to record and send him nude videos of the female minor child. Ultimately, Haway recorded a video of the female minor child that showed the child nude and sent the video to Peggs via Facebook in February 2019.
This case was investigated by the Mercer County Sheriff’s Department, the Federal Bureau of Investigation (FBI) and the FBI’s Violent Crimes Against Children Task Force. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Kristin F. Scott handled the prosecution.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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 No. 1:19-cr-00304.
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Virginia man sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Damanya Terelle Carter, of Front Royal, Virginia, was sentenced to 12 months of incarceration for his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Carter, 38, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Hydrochloride” in September 2020. Carter admitted to working with others to distribute cocaine hydrochloride in Jefferson County and elsewhere from February to March 2019.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Veterans Affairs Respiratory Therapist sentenced to prison for stealing and selling medical suppliesRead the Press Release
Seattle — A respiratory therapist at the Veterans Affairs Medical Center (VAMC) in Seattle was sentenced today in U.S. District Court in Seattle to three months in prison and nine months of home confinement for theft of government property, announced U.S. Attorney Brian T. Moran. GENE WAMSLEY, 42, of Bonney Lake, Washington, admits stealing a ventilator and other respiratory medical equipment in the midst of the COVID-19 pandemic and selling it for his own gain. At the sentencing hearing, U.S. District Judge James L. Robart said, “This is an extremely serious offense, quite independent of the COVID-19 pandemic, this was exploiting patients.”
“This type of fraud strikes at the heart of our efforts to care for our elderly—especially our veterans,” said U.S. Attorney Brian Moran. “Stealing money is bad enough, but stealing equipment needed for life-saving therapies shocks the conscience.”
According to records filed in the case, the investigation began in January 2020 when VAMC reported two bronchoscopes, used for examining a patient’s airway, went missing from the hospital. A third bronchoscope was reported missing in April 2020. In all, WAMSLEY admits stealing and selling three bronchoscopes worth over $100,000 for just $15,750. WAMSLEY sold the scopes to a Florida resident via eBay. When WAMSLEY’s home was searched in June, law enforcement seized a fourth bronchoscope and a $6,000 sleep apnea device called a WatchPat that had been stolen from the VA Medical Center.
Further investigation revealed that in April 2020, WAMSLEY also stole a $9,950 respirator and sold it via eBay to an Ohio man for just $6,000. Records from online sales indicate WAMSLEY sold five ventilators—three of which were stolen from the VA.
In their sentencing memo prosecutors wrote that WAMSLEY was involved in the care of COVID-19 patients during the pandemic. Therefore, his “decision to steal respiratory therapy devices for personal monetary gain is rather confounding as he was an eyewitness to the tremendous suffering of those inflicted. By repeatedly stealing equipment from a population of ill veterans at such a critical point in time, Mr. Wamsley violated not only federal law, but ethical obligations held by nurses since the inception of the profession.”
The total loss to the United States from the thefts is $132,291; WAMSLEY was ordered to pay that amount in restitution.
The case was investigated by the Veterans Affairs Office of Inspector General (VA-OIG). The case was prosecuted by Assistant United States Attorney Cecelia Gregson.
U.S. Attorney’s Office in Memphis Collects $65,969,200.04 for U.S. Taxpayers and Victims in 2020Read the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant announced today that the U.S. Attorney’s Office for the Western District of Tennessee collected a total of $65,969,200.04 in criminal and civil actions during Calendar Year 2020. Of that amount, $1,314,912.06 was collected through civil actions and $64,654,287.98 stemmed from fines and restitution ordered as part of criminal convictions.
One case that generated significant collection efforts was United States of America v. SK Engineering & Construction Co. Ltd. (SK), which generated $60,578,847.08 in criminal fines, the largest fine ever imposed against a criminal defendant in the Western District of Tennessee. On June 10, 2020, SK Engineering, one of the largest engineering firms in the Republic of Korea, pleaded guilty to one count of wire fraud in connection with a fraudulent scheme to obtain U.S. Army contracts through payments to a U.S. Department of Defense contracting official and the submission of false claims to the U.S. government. SK was also ordered to pay $2,601,883.86 in restitution to the U.S. Army, and serve three years of probation, during which time SK agreed not to pursue U.S. federal government contracts.
U.S. Attorney D. Michael Dunavant said, "Protection of the United States Treasury and taxpayer resources is a core value and critical mission for this office and the Department of Justice. Equally as important is the priority of collecting restitution for victims of crime in order to punish offenders and provide justice for the harm and loss suffered by victims. I commend the outstanding work of our Criminal Division, Civil Division, and Financial Litigation Unit in aggressively pursuing and effectively collecting this significant total amount on behalf of victims of crime and the United States in 2020."
The U.S. Attorneys’ Offices, along with the U.S. Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Calendar year 2020 collections include recovery of government money lost to criminal fraud and other misconduct, and recovery of money lost by victims as a result of individual and corporate misconduct. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Health and Human Services, Internal Revenue Service, the Department of Education, and the Department of Veterans Affairs.
Total civil collections were reduced in 2020 because of the COVID-19 pandemic, which resulted the suspension of many civil collections, such as student loans, SBA loans and all Social Security Treasury Offset Program (TOP) payments.
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U.S. Attorney Robert M. Duncan, Jr. Announces ResignationRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert M. Duncan, Jr. has announced his resignation, effective midnight, Sunday, January 24, 2021. Following his resignation, he will enter the private practice of law in Lexington.
“It has been a true honor and privilege to lead this Office, an office that has a demonstrated commitment to fairness and justice, and a long history of handling tough and important cases,” stated Duncan. “I began my career in this Office nearly sixteen years ago as an Assistant United States Attorney and have been blessed to work with many talented and dedicated men and women along the way. I would like to thank my colleagues in the Office for their hard work and commitment in support of our mission. We are fortunate to have so many dedicated and professional attorneys and support staff, who make our Office successful.”
“Throughout my career, I have also been privileged to work with our law enforcement partners at the federal, state, and local levels. These brave men and women selflessly serve and protect the citizens of the Eastern District of Kentucky and beyond. I have been honored to partner with them in the protection of the public and the pursuit of justice.”
“I am proud of the work we have undertaken during my tenure as United States Attorney – important work on behalf of the citizens of the Eastern District of Kentucky. In partnership with our law enforcement colleagues, we have implemented efforts to reduce violent crime; we have fought to disrupt the flow of deadly drugs, including opioids and methamphetamine, into our communities; we have combatted fraud and public corruption; we have sought justice for victims; and we have endeavored to faithfully enforce the law.”
“We’ve implemented these efforts despite several challenges, including the longest federal government shutdown in history and a global pandemic that has upended our lives. While there is always more to be done, I am proud of what we have accomplished.”
Under Duncan’s leadership, the Office marked noteworthy achievements in violent crime enforcement, controlled substances enforcement, combatting public corruption and fraud, and its significant change in staff. Some of these achievements include the following:
Violent Crime – The Office worked in conjunction with federal, state, and local partners, to reinforce its commitment to holding offenders accountable for the commission of violent criminal acts and unlawful possession of firearms, including armed drug trafficking, armed robberies, and shootings. From Fiscal Year 2018 through Fiscal Year 2020, the Office prosecuted a total of 525 defendants throughout the District, as part of the Project Safe Neighborhoods or Project Guardian programs. Critically, the majority of those convicted of federal firearms related crimes received a federal sentence of greater than five years in prison.
As part of the commitment to address violent crime, Duncan spearheaded the creation of the Fayette County Violent Crime Task Force, a joint, multi-jurisdictional effort to combat violent crime and drug trafficking in Lexington. The Task Force was formed as part of the Department of Justice’s Project Safe Neighborhoods initiative, which focuses enforcement efforts on the most violent offenders and coordinates with locally-based prevention and reentry programs in an effort to achieve lasting reductions in crime. From January 2018 to the present, 70 cases have been prosecuted federally as part of the Fayette County Violent Crime Task Force, along with countless prosecutions by state authorities.
Controlled Substances – The Office prioritized the controlled substance enforcement, aggressively prosecuting transnational criminal organizations supplying drugs to eastern Kentucky, continuing its aggressive prosecution of overdose cases caused by drugs (particularly opioids), and targeting opioid related healthcare fraud for prosecution.
Included in this effort, the Office participated in several Department of Justice initiatives, including the Appalachian Regional Prescription Opioid Strike Force, aimed at identifying medical professionals who commit acts of opioid related healthcare fraud, and the Synthetic Opioid Surge program, which provided resources to combat fentanyl trafficking in Fayette County. In eastern and southeastern Kentucky, the Office partnered with federal, state, and local law enforcement to vigorously prosecute methamphetamine trafficking and its related violence.
Public Corruption and Fraud – The Office maintained its longstanding commitment to prioritizing public corruption, partnering with the FBI and others to identify and prosecute cases of corruption involving federal, state, and local offices. Notable cases included the prosecution of Gerald Lundergan and Dale Emmons, for illegal campaign contributions; Beth Sallee, the former Jackson County Treasurer, for wire fraud and identity theft; and Lexington businessman Wayne Wellman, for obstruction of justice related to a bribery investigation.
Similarly, the Office prosecuted many complex fraud schemes, including cases involving the exploitation of elderly individuals and romance scams, and used affirmative civil enforcement efforts, under the False Claims Act (a federal law that prohibits the submission of false or fraudulent claims to the federal government), to hold individuals and entities accountable for committing fraud against the government, including healthcare fraud and other efforts to defraud, waste, and abuse federal funds.
Office Administration – The Office also hired 16 new Assistant United States Attorneys, to prosecute cases and represent the government in civil litigation, and nearly twenty support staff personnel, to support the Office’s litigation efforts. These hires represent approximately a third of the Office’s total employees.
More generally, the Office saw increases in federal prosecutions during Duncan’s tenure. The Office saw increases in the total number of criminal defendants prosecuted (by more than 18 percent from Fiscal Years 2017 to 2018, and 27 percent from Fiscal Years 2018 to 2019) and continued to prosecute significant numbers of defendants, despite the challenges of the COVID-19 pandemic. The Office has also achieved meaningful recoveries for the government and victims of crime. Over the past three years, the Office has collected and received judgments for more than $92 million in criminal penalties, civil recoveries, forfeited assets, and restitution.
Duncan was appointed by President Trump as the twenty-third presidentially appointed United States Attorney for the Eastern District of Kentucky. Duncan was unanimously confirmed by the United States Senate, on November 9, 2017, and he was sworn in as United States Attorney on November 21, 2017.
As United States Attorney, Duncan also served nationally, as the Chairman of the Heroin-Opioid Working Group for the Attorney General’s Advisory Committee, providing advice and recommendations about policy initiatives to combat the opioid crisis across the country. He also served on the Controlled Substances Subcommittee; the Management, Budget, and Personnel Subcommittee, and the Law Enforcement Coordination Subcommittee for the Attorney General’s Advisory Committee. More recently, he served as a member of the Department of Justice’s eLitigation Steering Committee, working to enhance discovery practices and procedures across the federal law enforcement community, as a representative for United States Attorneys across the country.
Prior to his nomination, Duncan had served for more than a decade as an Assistant United States Attorney, in the Eastern District of Kentucky. Beginning in 2011 and continuing until his appointment as United States Attorney, Duncan focused on the prosecution of Organized Crime Drug Enforcement Task Force cases, working with federal, state, and local law enforcement personnel to disrupt and dismantle complex drug trafficking and money laundering organizations operating in eastern Kentucky and elsewhere. From 2007 to 2013, Duncan also served as coordinator of the office’s Project Safe Neighborhoods Program. During his career as a federal prosecutor, Duncan handled a wide array of criminal and appellate matters, including violent crime, immigration offenses, public corruption, white-collar offenses, environmental crime, and child exploitation offenses. Duncan also served as the Professional Responsibility Officer for the office.
Prior to becoming a federal prosecutor, Duncan served as a law clerk to Senior United States District Court Judge Henry R. Wilhoit, Jr., in Ashland. Duncan grew up in Inez, in Martin County, along the Commonwealth’s border with West Virginia. Duncan graduated from Sheldon Clark High School, in 1996. He then graduated from Centre College in Danville, in 2000, with a B.A. in English and minor in History. Duncan received his J.D., in May 2003, from the University of Kentucky College of Law.
“I was raised in Kentucky, went to school in Kentucky, and have spend the majority of my legal career working with law enforcement and prosecuting cases in Kentucky,” said Duncan. “Having the opportunity to serve Kentucky, as the United States Attorney for the Eastern District of Kentucky, has been an enormous honor and privilege.”
Law enforcement officials offered the following comments about U.S. Attorney Duncan’s leadership of the Office.
“I have had the pleasure of working with USA Rob Duncan since my appointment as United States Marshal in February of 2018,” said Norman E. Arflack, United States Marshal for the Eastern District of Kentucky. “Rob’s dedication to law enforcement and to the citizens of the Eastern District of Kentucky is unparalleled. As a result of his leadership many of the most violent offenders in the Eastern District of Kentucky have been successfully prosecuted. His professionalism and leadership will be greatly missed. I wish him the best in his next undertaking whatever that may be.”
“Throughout my time serving in the FBI's Louisville Field Office, the collaborative efforts of USA Duncan and his entire office have been nothing short of extraordinary. I want to personally thank USA Duncan for his steadfast commitment to justice and his unwavering partnership in effectively leading the Eastern District of Kentucky,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office.
“It’s been an absolute pleasure serving with Rob Duncan; as the United States Attorney for Kentucky’s Eastern District, he’s been a great partner to the Drug Enforcement Administration and the people of the Eastern District are safer for his efforts,” said Special Agent in Charge J. Todd Scott, head of DEA’s Louisville Division. “Rob’s more than just a professional colleague, he’s also become a personal friend.”
“I am grateful for the opportunity to have served,” said Duncan. “While leaving the Office is definitely bittersweet, I am excited to start a new chapter. I am confident that the Office will continue its outstanding work, enforcing the law and pursuing justice on behalf of the people of the Eastern District of Kentucky.”
The Eastern District of Kentucky encompasses the 67 easternmost counties in the Commonwealth, has a population of approximately 2.2 million, and includes the cities of Lexington, Covington, Frankfort, Ashland, Pikeville, Somerset, and London. The United States Attorney oversees a staff of approximately 110, including 49 Assistant U.S. Attorneys, and is responsible for prosecuting federal crimes and defending the United States in civil litigation, in the Eastern District of Kentucky.
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U.S. Attorney Condemns Violence at U.S. CapitolRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – January 11, 2021
SAN DIEGO – U.S. Attorney Robert Brewer issued the following statement:
On January 6, 2021, a mob attacked the United States Capitol. This 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.
We will work closely with our law enforcement partners, including the U.S. Attorney’s Office in the District of Columbia, to ensure that any individuals from San Diego or Imperial counties who were involved in criminal activity at the U.S. Capitol are brought to justice. If we determine that federal charges should be brought in this District, we will aggressively prosecute all such matters.
Anyone with information regarding the events of January 6 should contact the Federal Bureau of Investigation: https://tips.fbi.gov/digitalmedia/aad18481a3e8f02.
Two Huntington Men Sentenced to Federal Prison for Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that two Huntington men were sentenced to federal prison for gun crimes.
Jeffrey L. Hodgens, 42, was sentenced to 30 months in federal prison for theft of a firearm. He previously pled guilty and admitted that on March 24, 2019, he entered a vehicle that was parked in the 1100 block of 4th Avenue in Huntington where he located a Colt, 5.56 mm rifle. Hodgens stole the rifle and admitted that he subsequently traded it to another person in Huntington in exchange for methamphetamine. When the rifle was later recovered, it was determined that the rifle was capable of firing as a fully automatic machinegun. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
Craig Eatmon, also known as “Fresh,” 41, was sentenced to 15 months in prison for being a felon in possession of a firearm on two separate occasions. Eatmon admitted that on May 19 and June 17 of 2019, he sold a firearm at Tri-State Pawn and Jewelry on 4th Avenue in Huntington. At the time he sold the firearms, he had been convicted of a drug related felony and malicious destruction of property in Wayne County, Michigan. As a result of those convictions, Eatmon was prohibited from possessing the firearms. The ATF conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
These cases were prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 3:19-cr-00297 (Hodgens) and 3:20-cr-00104 (Eatmon).
Follow us on Twitter: SDWVNews and USAttyStuart
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Suburban Chicago Man Pleads Guilty to Laundering Proceeds from Telemarketing Scheme That Defrauded Elderly VictimsRead the Press Release
CHICAGO — A suburban Chicago man has pleaded guilty in federal court to laundering cash proceeds from a telemarketing scheme that defrauded elderly victims.
HIRENKUMAR P. CHAUDHARI, 27, of Des Plaines, Ill., pleaded guilty on Jan. 6, 2021, to one count of money laundering. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Sara L. Ellis set sentencing for April 1, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Gail S. Ennis, Inspector General of the Social Security Administration; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The government is represented by Assistant U.S. Attorneys Kartik K. Raman and Rick D. Young.
Chaudhari admitted in a plea agreement that he used a phony Indian passport, false name, and false address to open multiple bank accounts in the United States to receive money from victims of the telemarketing scheme. The scheme involved phone calls from people falsely claiming to be associated with, among other agencies, the Social Security Administration and U.S. Department of Justice, stating that a victim’s identity had been stolen and that it was necessary to transfer money to various bank accounts, including the accounts opened by Chaudhari. One of the victims was an elderly woman from Massachusetts who transferred a total of more than $900,000 from her bank and retirement accounts to accounts controlled by Chaudhari or others.
On April 19, 2018 – one day after Chaudhari opened an account and received a $7,000 transfer from the Massachusetts victim – Chaudhari entered a bank branch in Chicago and withdrew $6,500, the plea agreement states. Chaudhari admitted in the plea agreement that he engaged in this financial transaction knowing that the money represented proceeds of unlawful activity.
If you believe you or someone you know is a victim of elder fraud, complaints may be filed with the Federal Trade Commission online at www.ftccomplaintassistant.gov, or by calling 877-FTC-HELP. More information about the Department of Justice’s efforts to help seniors is available at its Elder Justice Initiative webpage.
Stroudsburg Man Sentenced to 114 Months’ Imprisonment for Heroin and Cocaine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eddie Pace, age 46, of Stroudsburg, Pennsylvania, was sentenced to 114 months’ imprisonment followed by eight years on supervised release on January 8, 2020, by U.S. District Court Judge Malachy E. Mannion, for drug trafficking. The sentence consists of 102 months’ imprisonment for conspiracy and 12 months’ imprisonment for violating supervised release.
According to Acting United States Attorney Bruce D. Brandler, Pace previously pled guilty to participating in the conspiracy during 2012 through March 2015. Pace was a leader of the drug conspiracy and possessed a firearm in connection with the offense. The conspiracy involved over 100 grams of heroin and more than 500 grams of cocaine (quantity of heroin involved in the conspiracy exceeded 4,000 retail bags).
Pace was one of seven defendants charged in the case. Others previously sentenced in the case were:
- Myron Owens—140 months;
- Daryl Trent—90 months;
- Anton Woodson—63 months;
- William Young—60 months;
- Shawnette Isaac—30 months; and
- Catherine Abbey—12 months.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, the Scranton Police Department, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Statement of U.S. Attorney KennedyRead the Press Release
“Since late Wednesday, my Office has been working around the clock with both the Buffalo and Washington Field Offices of the Federal Bureau of Investigation, to pursue all leads, to gather evidence, and to bring to justice those who committed crimes at the Capitol Building in Washington, DC. Any suggestion, direct or implied, that there is undue delay, a political purpose, or race-based reason why charges have not yet been filed against any Western New York resident is incorrect, unfounded, and frankly, offensive. I think most people recognize the danger inherent in advocating for a criminal justice system that is more concerned with getting things done quickly than getting them done correctly. As U.S. Attorney, I have refused—and will continue to refuse—to succumb to political pressure or to serve any factional interest. My job is to do my best to get things right and to see to it that the law and justice are the only interests served by me and those who work so hard in this Office.”
St. Louis County man pleads guilty to possession of a firearm in furtherance of a drug trafficking crimeRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry accepted a plea, today, from Bernard Toler. The 33-year-old St. Louis County, Missouri resident pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to a plea agreement, on or about February 20, 2019, officers from the St. Louis County Police Department saw a vehicle with no visible license plates make a turn without signaling. Officers turned on the emergency lights to make a traffic stop, but Toler evaded police at a high rate of speed. Toler continued to flee police through a residential area while refusing to stop at multiple stop signs.
Officers eventually turned off their lights and sirens but maintained visual observation of Toler’s vehicle. Officers saw Toler park the vehicle in the parking lot of a business, at which time officers turned on their lights again and positioned their vehicles to prevent Toler from fleeing.
Officers approached Toler’s vehicle and noticed a revolver-style firearm in the middle compartment of the vehicle. Officers removed Toler from the vehicle and took him into custody. Officers seized the firearm, which was loaded with six live rounds, along with two digital scales, a marijuana grinder, a plastic bag containing 24 grams of marijuana and three cellular phones. The seized paraphernalia, drugs and phones are indicative of drug trafficking.
Toler admitted he intended to distribute some or all of the marijuana in his possession to one or more persons and he possessed the seized firearm in furtherance of his drug trafficking activity.
The charge of possession of a firearm in furtherance of a drug trafficking crime carries a penalty of not less than five years, and not more than life, in prison and/or a fine of not more than $250,000.
Judge Perry has set sentencing for April 12, 2021.
The St. Louis County Police Department investigated this case. Assistant United States Attorney Geoff Ogden is handling the case.
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San Diego’s First Woman Federal Prosecutor HonoredRead the Press Release
Assistant U. S. Attorney Rebecca Church (619) 546-7721
NEWS RELEASE SUMMARY – January 8, 2021
SAN DIEGO - The U.S. Attorney’s Office for the Southern District of California is proud to honor the courageous life of Betty Marshall Graydon, the first woman Assistant U.S. Attorney in San Diego, by dedicating a conference room to her memory.
Ms. Graydon joined the U.S. Attorney’s Office in Los Angeles in 1938. She became the sole Assistant U.S. Attorney in San Diego in 1944, prosecuting criminal cases and defending the United States in civil suits until she was elevated to U.S. Commissioner in 1952.
“It is an honor to participate in this important event celebrating the life of Betty Marshall Graydon, a person of great significance to the history of the Southern District of California,” said U.S. Attorney Robert Brewer. “She had a brilliant and trailblazing career, and she represents the important role that women have played in the development and success of this office.” Brewer commended Assistant U.S. Attorney Rebecca Church for leading the effort to honor Ms. Graydon.
Graydon was known as a tenacious advocate who devoted her career to the pursuit of justice. Although she had an impactful life, her story has not been celebrated by this office until now. To learn more about Ms. Graydon’s trailblazing life, please watch conference room dedication tribute video available at https://youtu.be/_dT2UaYg4Xc. With this memorial, we hope that Ms. Graydon’s career will continue to inspire the dedicated public servants in this office, and the larger San Diego community, in the future.
The U.S. Attorney’s Office for the Southern District of California extends gratitude to the Hon. Cynthia Bashant, Hon. Barbara Major, Hon. Nita Stormes, Hon. Karen Crawford, Hon. Jill Burkhardt, and Yahariah Aristy, President of Lawyers Club, for contributing to the video, Ray Christensen for preparing the tribute, Elaine Lawrence, Executive Director of Lawyers Club, and Betty Boone, co-chair of Lawyers Club's History and Archives committee, for generously providing access to Lawyers Club’s research and resources regarding Ms. Graydon’s life and career, and to Federal Women’s Program, Special Emphasis Program Managers, AUSAs Rebecca Church, Katie McGrath, and Meghan Heesch.
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HERESan Antonio-Based Coalition Fighting Human Trafficking Receives $1.5 Million GrantRead the Press Release
A recent award of federal funds will enhance the efforts of the South Texas Officers and Prosecutors (STOP) Human Trafficking Task Force, a coalition of prosecutors and law enforcement agencies in San Antonio committed to fighting the evils of human trafficking. This announcement from U.S. Attorney Gregg N. Sofer, San Antonio Mayor Ron Niremberg, San Antonio Police Chief William McManus and BCFS Health and Human Services Human Trafficking Interdiction Division (BCFS-HHS-HTI) Executive Director Chara McMichael appropriately coincides with National Human Trafficking Awareness Day.
The $1.5M federal grant from the Department of Justice – Office of Victims of Crime – Bureau of Justice Assistance will strengthen the efforts of law enforcement agencies in Bexar and adjacent counties in investigating and prosecuting individuals engaged in trafficking. The STOP Human Trafficking Task Force will use the funding to increase community identification of all forms of human trafficking, rescue victims and prosecute traffickers. Importantly, this program will enhance the existing resources of all area partners to effectively serve survivors of human trafficking. The San Antonio Police Department serves as the lead law enforcement agency and BCFS-HHS-HTI serves as the lead victim services agency.
“Today is National Human Trafficking Awareness Day. In the United States there are thousands of individuals held captive by malevolent traffickers who dehumanize, debase and harm their vulnerable victims. No human being of any age, nationality or background should be treated as a commodity to be bought, sold, traded or forced into labor of any kind,” said U.S. Attorney Sofer. “I am pleased that the STOP Human Trafficking Task Force has received this federal funding. Together, we will prosecute those that profit from this brutal and cruel behavior to the fullest extent of the law.”
Task Force members will provide specialized training and support for local law enforcement agencies and victim service providers to increase offender arrests, prosecutions and convictions. Task Force members will also provide training for educational and business establishments throughout our community. Presentations and audience-specific trainings within the community will increase awareness and identification of all forms of human trafficking – both adults and children who are exploited for the purposes of sex and labor – and will result in more victims rescued and exploitation prevented.
“According to the U.S. Department of Health and Human Services, 25% of human trafficking victims are found in Texas. With tens of thousands of human trafficking victims, San Antonio has proven to be a primary hub for sex trafficking in Texas in the last three years. It is clear, our community must focus on identifying the victims of human trafficking,” said Mayor Niremberg.
The STOP Human Trafficking Task Force, chaired by the U.S. Attorney’s Office, consists of experts dedicated to investigating and prosecuting incidents of human trafficking at both the state and federal levels. In addition to the San Antonio Police Department and BCFS-HHS-HTI, partners include the FBI, Homeland Security Investigations (HSI), Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, Bexar County Juvenile Probation, Texas Attorney General’s Office, Texas Department of Public Safety, Texas Alcohol and Beverage Commission, Texas RioGrande Legal Aid (TRLA), U.S. Marshals Service and U.S. Attorney’s Office.
“The concepts of human trafficking are often misunderstood. The need for increased public awareness, education, and training will increase the identification and reporting of suspected human trafficking. The STOP Task Force is committed to continually refining the methods used to identify victims of human trafficking, as well as working within the community to promote awareness,” said Chief McManus.
If you or someone you know is a victim of human trafficking and needs immediate assistance, call 911. For more information or to learn how you can help, please visit www.STOP-HumanTrafficking.com. If you suspect human trafficking activities, please call the toll-free local human trafficking regional hotline at 1-844-843-6348 or 1-844-UIENDHT (U&I can END Human Trafficking). Trained professionals are ready to provide information and assistance.
“The only way we will succeed is for everyone in our communities to become involved,” said BCFS-HHS-HTI Director McMichael. “Help us fight this horrific crime. Help us educate those around you as to what slavery really looks like in a modern world. With your help, we can identify and remove victims from their situations of abuse and help them to recover.”
Richlands Man Pleads Guilty to Possessing and Manufacturing an Unregistered Explosive DeviceRead the Press Release
ABINGDON, Va.- A Richlands man, who appeared at a health clinic in June 2020 with severe injuries to his hands and fingers, pleaded guilty today to possessing and manufacturing an unregistered explosive device. Acting United States Attorney Daniel Bubar, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police made the announcement today.
Cole Carini, 24, pleaded guilty today to one count of possessing and manufacturing an unregistered explosive device. A sentencing hearing has been scheduled for April 13, 2021. At sentencing, Carini faces up to ten years imprisonment and a $250,000 fine.
“The defendant put the safety of the community at risk when he built and then detonated an explosive device,” Acting United States Attorney Daniel P. Bubar said today. “Thanks to the prompt response and careful investigation of our federal and state law enforcement partners, Carini is being held accountable for his dangerous acts.”
According to court documents, on June 3, 2020, Carini went to a health clinic in Richlands suffering from suffering from extensive injuries to his hands, and shrapnel wounds to his neck and throat. After being interviewed at the hospital by officers, Carini reported that his injuries were caused by a lawn mower accident at his home.
During a search of Carini’s home, agents found the lawn was overgrown and found no other evidence indicating a lawn mower had recently been used. They did, however, find evidence of an explosion more consistent with the types of injuries Carini had suffered. Agents also discovered drawings of improvised explosive devices, significant quantities of what is believed to be Triacetone Triperoxide, an explosive substance used in the creation of improvised explosive devices, and a partially constructed pressure cooker explosive device similar to that used in the Boston Marathon bombing.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the Richlands Police Department and the Tazewell County Sheriff’s Office. Assistant United States Attorneys Zachary T. Lee and Whit Pierce are prosecuting the case for the United States.
Resignation Letter of United States Attorney Russell ColemanRead the Press Release
“Today I submitted my resignation to the President and Acting Attorney General, effective January 20. For a guy whose childhood dream job as an FBI Agent ended early due to a spinal injury, serving as the chief federal law enforcement officer in the place I love, and for the people I’ve known all my life, has been a humbling honor.
I leave this office with gratitude and awe.
Gratitude for the statesmanship and friendship of Senator McConnell who recommended me for this position, to Senator Paul who supported me, and to the White House for the opportunity.
Awe at the gravity of the mission of protecting the families of our West Kentucky district, and of the caliber of the committed public servants of YOUR United States Attorney’s Office. Cynicism abounds regarding government institutions, but we are so fortunate to have good and talented people staffing both this office and serving in federal law enforcement in our Commonwealth.
I traveled to each of the 53 counties in our district seeking ways to be a more responsive partner to business & community leaders, Commonwealth’s Attorneys, sheriffs, and police departments of all sizes. To better protect South Central Kentucky and collaborate with law enforcement partners in the region, we opened a Bowling Green Office for the first time ever. We also increased our staffing in the Paducah Office to more effectively serve our geographically immense district that stretches well beyond Jefferson County, running from Prospect to the Purchase. I’m proud of the outcomes of the challenging cases we worked, and I’m hopeful we delivered justice to victims.
I am forever grateful to Assistant U.S. Attorneys, agents, officers, deputies, and troopers who keep us safe, and are insufficiently lauded for their work. From combatting historic levels of bloody violence in Louisville to child predators in Paducah, and from fighting the torrent of Mexican-produced meth pouring up I-65, to our relentless pursuit of justice for Officer Jason Ellis and Crystal Rogers in Nelson County, West Kentucky lawmen/women are among the very best in the country.
I deeply regret we ran out of time to achieve justice for the families of Officer Ellis and Ms. Rogers during my tenure, and I urge the next Administration to prioritize these active and ongoing investigations. I am also plagued by the loss of life we grieved this year: violent crime took the lives of 173 Louisvillians in 2020 alone, with 572 wounded non-fatally. That’s hundreds of devastated families struggling with this trauma in the midst of a global pandemic. Louisville cannot be complacent about this spike in violence, or 2021 will bring more lost sons like Austin Fitzpatrick, and lost baby girls in Disney coffins like Trinity Randolph.
We must also continue to build relationships between law enforcement and communities that feel under-protected and over-enforced. While our new strategy of Group Violence Intervention (GVI) will not cure all that ails us in Louisville, it will help establish trust, which is the first step toward healing. This approach has worked for decades in cities large and small, and if we deploy GVI the right way, we can put a stop to the senseless deaths of young Black men and women.
Finally, I share in the sentiments of my fellow U.S. Attorneys around the country who were shocked, appalled, and saddened at the violent mob that stormed our Capitol on January 6th, resulting in deaths and multiple injuries, including fallen heroes from the United States Capitol Police. I hope each and every perpetrator is brought to justice, and our country can heal from this tragic chapter. Law enforcement is not a partisan calling, and to be clear, I stand at the ready to be helpful to my successor in any way.
Our Commonwealth has much to be proud of in the strong timber of Kentucky law enforcement, but we must never stop listening and striving to achieve a fairer and more effective justice system. It’s not “happy talk” to say that our men and women in blue, brown, or gray are the finest in the nation, and I am deeply grateful that God afforded me the privilege of being amongst them for a season.”
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Raytheon Technologies and Subsidiary Pay $515K to Settle False Claims Act AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RAYTHEON TECHONLOGIES CORPORATION (“RTC”) and its subsidiary, HAMILTON SUNDSTRAND CORPORATION (“HSC”), have entered into a civil settlement agreement with the government in which they will pay $515,6235 to resolve allegations that they violated the False Claims Act.
RTC, a Massachusetts-based corporation, and HSC, its wholly owned subsidiary, are military defense contractors that sell goods and services to the U.S. and to other defense contractors.
The Buy American Act of 1933 (the “BAA”) is domestic-preference legislation that attempts to protect U.S. businesses and labor by generally restricting the acquisition and use of end products or construction materials that are not categorized as “domestic.” The government alleges that UTC and HSC sold various goods to the government pursuant to contracts containing domestic-preference requirements and, in the course of those sales, improperly certified that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania. UTC and HSC also sold various goods to a third-party supplier for sale to the government and, in the course of those sales, improperly certified to the third-party supplier that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania.
The government contends that the certifications and invoices submitted to the government and to the third-party supplier were false claims for payment pursuant to the False Claims Act. To resolve the government’s allegations, RTC and HSC have paid $515,625 for conduct occurring between 2006 and 2015.
This investigation was conducted by Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Naval Criminal Investigative Service. This matter was handled by Assistant U.S. Attorney John Larson.
Pittsburgh Woman Sentenced for Role in Drug Trafficking Activity of South PittsburghRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 2 years’ probation on her conviction of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Ronika Somerville, age 24, of Pittsburgh, Pennsylvania.
According to information presented to the court, Somerville pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. The defendant acknowledged her responsibility for the distribution of 6 grams of a mixture of heroin and fentanyl. Ms. Somerville was one of 40 defendants charged in the case.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that Ronika Somerville was involved in the distribution of heroin and fentanyl. Specifically, Ms. Somerville conducted narcotics transactions on behalf of her brother and codefendant, Ronald Williams, by obtaining the drugs from stash locations and physically distributing heroin and fentanyl to customers.
Prior to imposing sentence, Judge Stickman stated that given Somerville’s minimal participation in the drug trafficking conspiracy and her lack of any criminal history, a sentence of probation served as just punishment and sufficient deterrence.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States MarshalsFugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task ForceProgram (OCDETF). The OCDETF program supplies critical federal funding and coordination thatallows federal and state agencies to work togetherto successfully identify, investigate, and prosecutemajor interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Man Pleads Guilty to Producing Pornographic Photos of ChildrenRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jeffrey Porch, 34, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that over the course of approximately two years, Porch physically and sexually abused two minors. During this period, Porch produced pornographic photos of the children. Two photos of the older child were produced on May 9, 2017, when the child was 12 years old. Two photos of the younger child were produced on April 29, 2017, when the child was 11 years old. The photos were discovered on Porch’s Samsung smart phone.
Judge Ambrose scheduled sentencing for May 11, 2021 at 10:00 a.m. The law provides for a total sentence of at least 15 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Porch remained detained.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Violent Crimes Against Children Task Force and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Porch.
Philadelphia Woman Sentenced to 35 Years for Enticing and Inducing a Child to Produce Child Pornography OnlineRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Linda Paolini, 45, of Philadelphia, Pennsylvania, was sentenced to 35 years in prison, a lifetime of supervised release, and ordered to pay more than $15,000 in fines by United States District Court Judge Nitza I. Quiñones Alejandro for child pornography and enticement offenses.
In October 2019, the defendant pleaded guilty to two counts of manufacturing child pornography and one count of online enticement of a minor. The defendant used social media to engage in sexually explicit communications with a 16-year-old Florida boy and coerce him to produce and send her videos of him masturbating. She did this by assuming the persona of a 16-year-old girl, sending the boy provocative images of her own daughter in order to manipulate him into thinking that an attractive, same-aged girl was in love with him. Ultimately, during an online video chat, Paolini faked a suicide attempt in order to induce the boy to attempt suicide himself in solidarity with her. Further, the defendant’s crimes were not limited to just this child; she also admitted to similar criminal communications with at least two other minor boys.
“This defendant’s criminal conduct was so heinous and cold-hearted that it almost defies description,” said First Assistant U.S. Attorney Williams. “She maliciously manipulated a child into making and sending her pornography of himself. But that was not enough for this defendant. She then manipulated the vulnerable child into attempting suicide. As a result of this prosecution and today’s sentencing, she will be behind bars for decades and will no longer pose a danger to other children.”
“Linda Paolini sexually exploited a boy the same age as her teen daughter. She even used pictures of her daughter to do it,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “These were predatory, premeditated acts, solely for her own gratification. Today’s sentence ensures she is held accountable for the considerable damage done, and keeps her from victimizing anyone else’s child.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi.
Pendleton County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Devin Cory Teter, of Franklin, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Teter, 33, pled guilty to one count of “Unlawful Possession of a Firearm.” Teter, a person prohibited from having a firearm because of a prior conviction, admitted to having a 12-gauge shotgun in December 2019 in Hardy County.
Teter faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Patient Recruiter Convicted in $2.8 Million Telemedicine Scheme Against MedicareRead the Press Release
The owner of an Orlando-area telemarketing call center was convicted for his role in a kickback scheme involving expensive genetic tests and fraudulent telemedicine services that resulted in the payment of approximately $2.8 million in false and fraudulent claims to Medicare.
Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Division, and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services – Office of Inspector General (HHS-OIG) for the Middle District of Florida, made the announcement.
Ivan Andre Scott, 34, of Kissimmee, Florida was convicted after a four-day trial of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and three counts of receiving kickbacks.
According to evidence presented at trial, Scott was the owner of Scott Global, a telemarketing call center located in Orlando. The evidence showed that Scott targeted Medicare beneficiaries with telemarketing phone calls falsely stating that Medicare covered expensive cancer screening genetic testing, or “CGx.” The tests could cost as much as $6,000 per test. After beneficiaries agreed to take the test, the evidence showed Scott paid bribes and kickbacks to telemedicine companies to obtain doctor’s orders authorizing the tests.
The evidence showed that the telemedicine doctors approved the expensive testing even though they were not treating the beneficiary for cancer or symptoms of cancer, and often without even speaking with the beneficiary. According to the evidence presented at trial, Scott then sold the genetic tests and doctor’s orders to laboratories in exchange for illegal kickbacks. To conceal the illegal kickbacks, Scott submitted invoices to the laboratories and other marketers making it appears as though he were being paid for hourly marketing services, rather than per referral.
Between November 2018 and May 2019, labs submitted more than $2.8 million in claims to Medicare for genetic tests Scott referred to them, of which Medicare paid over $880,000. In that timeframe, Scott personally received approximately $180,000 for his role in the scheme.
The case was investigated by the HHS-OIG and the FBI and was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged. Trial Attorneys Alejandro Salicrup and Jamie de Boer of the Criminal Division’s Fraud Section are prosecuting the case.
Mobile Man Sentenced to Forty Years in Prison in Child Sex Abuse CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Judge Jeffrey Beaverstock sentenced defendant Jerald Sells, 62, to 40 years imprisonment after a federal jury found him guilty at trial in September 2020 on charges in a child exploitation case. As part of his sentence, the judge ordered that the defendant receive mental health and sex offender treatment as directed by the U.S. Probation Office, register as a sex offender under the Sex Offender Registration and Notification Act, pay special assessments totaling $10,200, and have no contact with minors. The judge further ordered that Sells be supervised by federal probation officers for 25 years after finishing his prison term.
On June 24, 2020, a federal grand jury for the Southern District of Alabama indicted Sells on one count of transporting minors across state lines with intent to engage in criminal sexual activity and one count of aggravated sexual abuse for crossing of a state line with intent to engage in a sexual act with a child under the age of twelve.
The jury heard two days of evidence during the trial, which began on September 28, 2020. According to the evidence introduced at trial, a child victim was abused for years by the defendant. The victim testified at trial that Sells had sexually abused her many times over the course of several years, including during one of his trucking trips from Alabama to Ohio, and back again. The defendant was employed as a long-haul trucker.
In April 2019, the victim disclosed the abuse to a school counselor. The counselor immediately contacted police. The Mobile County Sheriff’s Office investigated the offense. During an interview with law enforcement, the defendant confessed to the abuse.
The jury also heard from a second child victim, who was abused by the defendant in Sells’s home in Mobile.The victim wrote to the Court before today’s sentencing hearing. She described how the defendant’s abuse had irreparably altered her life.
The Mobile County Sheriff’s Office and the FBI investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Middlesex County Man Admits Unlawfully Possessing FirearmRead the Press Release
NEWARK, N.J. – A Middlesex County man today admitted illegally possessing a firearm, Acting U.S. Attorney Rachael Honig announced.
Sharome Neals, 27, of Carteret, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
On Dec. 30, 2019, Neals knowingly possessed a Glock 21 .45 caliber handgun loaded with 11 rounds of ammunition, and an additional 33 rounds of .45 caliber ammunition in his vehicle. Neals has two prior felony convictions, both involving firearms.
The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 25, 2021.
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 Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Secaucus Police Department, under the direction of Police Chief Dennis Miller, with the investigation leading to today’s guilty plea. She also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Kentucky woman pleads guilty to aiding and abetting witness tampering in case involving murder of her ex-son-in-lawRead the Press Release
DAYTON – A Burlington, Ky. woman pleaded guilty in U.S. District Court in Dayton today to aiding and abetting her daughter in intimidating a witness after the murder of her ex-son-in-law.
Chandra Harmon, 57, admitted to aiding and abetting the intimidation of a witness after the August 2017 murder of Robert Caldwell. Harmon and her daughter, Tawnney Caldwell, attempted to prevent the witness from providing testimony to law enforcement about weapons provided to a co-defendant.
According to court documents, around 6pm on Aug. 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant was later identified as co-defendant Sterling Roberts.
Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident. Chandra Harmon is Tawnney Caldwell’s mother and previous mother-in-law to Robert Caldwell.
Tawnney Caldwell and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.
Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father) collaborated to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.
Tawnney Caldwell pleaded guilty in October 2020 to interstate stalking resulting in death, and Roberts is scheduled for jury trial in U.S. District Court on March 15.
Harmon faces up to 20 years in prison for aiding and abetting the intimidation of a witness in this case. Her sentencing hearing is scheduled for 1:30pm on May 6.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Amy M. Smith and Assistant Deputy Criminal Chief Laura Clemmens are representing the United States in this case.
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Justice Department Concludes Its Investigation of D.C.-Area Private High Schools’ Decision to Stop Offering Advanced Placement CoursesRead the Press Release
The Department of Justice announced today that it has completed its investigation into whether Georgetown Day School, Holton-Arms School, Landon School, Maret School, National Cathedral School, The Potomac School, St. Albans School, and Sidwell Friends School (jointly, “the Schools”) collectively agreed to stop offering Advanced Placement (AP) courses by 2022 in violation of the Sherman Act. The Schools announced in June 2018 that they would eliminate AP courses from their curricula by 2022.
The Antitrust Division’s investigation revealed that the Schools likely did agree to eliminate AP courses by 2022. Each of the Schools has represented to the Antitrust Division, however, that they are not bound by, and will not enter in the future, any agreement with another non-affiliated school or schools relating to the elimination of AP courses. As a matter of prosecutorial discretion, and especially in light of the burden on the Schools associated with the ongoing pandemic, the division will not bring an enforcement action against the Schools.
“I am pleased that the Schools have disavowed any anticompetitive agreement to coordinate on their offerings to students,” said Assistant Attorney General Makan Delrahim. “The division will remain vigilant in enforcing the antitrust laws to ensure that educational institutions do not enter into agreements to restrain competition.”
Judge sentences former company Vice President/Chief Financial Officer for stealing nearly $800,000 in company fundsRead the Press Release
ST. LOUIS, MO – United States District Judge Audrey G. Fleissig sentenced Lynese Cargill to 21 months in prison and ordered Cargill to make restitution to the victim in the amount of $707,964.35today. The 51-year-old St. Louis County, Missouri resident pleaded guilty, in September, to three counts of wire fraud related to her former position as vice president and chief financial officer of Common Ground Public Relations, Inc.
Cargill was one of the two founders of Common Ground and served as the firm’s Vice President and Chief Financial Officer. Beginning in or about 2008 and continuing through in or about March 31, 2020, Cargill devised, and knowingly participated in a scheme to defraud and obtain money from Common Ground by means of materially false and fraudulent pretenses, representations, and promises in the total amount of $785,615.25.
Cargill issued 80 unauthorized bank checks to herself written on Common Ground’s bank account totaling $198,980.23. In order to conceal this aspect of her fraudulent scheme, Cargill made false and misleading entries in the internal financial and accounting records of Common Ground, purporting to make these unauthorized bank checks appear to be legitimate when, in fact, she knew they were not.
Cargill was issued both a Citibank MasterCard credit card and an American Express credit card by Common Ground to be used to pay for legitimate company expenses, such as necessary travel and other business expenses. Cargill used both of her company issued credit cards to make personal purchases, unrelated to the legitimate business and operations of Common Ground. Cargill's unauthorized credit card charges were for such personal expenses as airfare, hotels, automobiles, clothing, cosmetics, medi-spas, restaurants and miscellaneous retail purchases. These company issued credit card purchases were done by Cargill without the knowledge and authority of Common Ground. During the period of her fraudulent scheme, Cargill made approximately 2,841 unauthorized company issued MasterCard credit card purchases for personal use items and expenses, totaling approximately $351,748.42, and an additional approximately 1,166 unauthorized company issued American Express credit card purchases for personal use items and expenses, totaling approximately $190,200.66.
Cargill applied for and obtained two different $1,000,000 life insurance policies, but instead of naming Common Ground as the sole beneficiary, as required under the shareholder agreement, Cargill named her then husband, B.H., as the sole beneficiary on both policies. Cargill then made premium payments on both policies, totaling $5,244.00, with funds from Common Ground’s bank accounts.
Cargill also used Common Ground bank funds to pay for charges on three of her personal credit cards totaling approximately $38,516.94. None of these charges which was paid for with Common Ground funds was authorized by Common Ground, and was not for the legitimate business or operations of Common Ground.
In order to conceal her fraudulent scheme, Cargill moved funds between Common Ground bank accounts to falsely inflate the balance of the firm’s operating account when she provided financial updates to the president and chief executive officer of the firm. In furtherance of her scheme, Cargill caused unauthorized wire transfers to be made from Common Ground’s bank account to make payments on her personal credit card charges.
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
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Judge sentences St. Louis man for armed robbery at Church’s ChickenRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Daquan Marshall to 120 months in prison. The 26-year-old St. Louis resident pleaded guilty to one count of armed robbery and one count of brandishing a firearm in furtherance of an armed robbery on July 7, 2020.
On December 21, 2018, around 10:15 p.m., employees of the Church’s Chicken located in the 900 block of N. Grand Boulevard in St. Louis, Missouri, were cleaning the store after closing. While cleaning, the store manager heard knocking at the back door. The store manager went to the back door and asked who was knocking. Marshall identified himself by his nickname. The store manager knew Marshall because he was a former employee and had dated an employee. The manager told Marshall to go to the front door.
The store manager unlocked the front door and let Marshall inside the restaurant. Marshall pulled out a handgun and pointed it at the employees. Marshall ordered all the employees to put up their hands and threatened to shoot one employee when he resisted. Marshall pointed the gun at the store manager and ordered the store manager to open the safe. The store manager complied and triggered the silent alarm when opening the safe. The manager gave Marshall $300 from the safe and Marshall left restaurant.
The Federal Bureau of Investigation and St Louis Metropolitan Police Department investigated the case. Special Assistant United States Attorney Jennifer Szczucinski prosecuted the case for the United States Attorney’s Office as part of the Safer Streets Initiative. The initiative was launched by Attorney General Schmitt and former U.S. Attorney Jeff Jensen in January of 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis.
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Jeffrey Dworek Sentenced to Prison for Defrauding Metro Waste AuthorityRead the Press Release
DES MOINES, Iowa — On Friday, January 8, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jeffrey Scott Dworek, age 55, formerly of the Des Moines area, to 57 months in prison for mail fraud, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Dworek was ordered to serve three years of supervised release. He was also ordered to pay over $1.6 million in restitution to Metro Waste Authority (MWA).
Jeff Dworek served as the Director of Operations at MWA. Over the course of nearly five years, Dworek stole money from MWA. Dworek created a front company, Britad – incorporated by Dworek in South Dakota – and proceeded to fraudulently bill MWA for services Britad never provided. In addition to setting up one front company, Dworek was also aware that two other MWA “vendors,” Lamar Programming Company and International Telemetry Technologies, also submitted false invoices to MWA and Dworek approved those invoices, knowing they were not legitimate. In addition to approving the fake invoices, Dworek also received payment from these companies, presumably as a kickback for Dworek’s role in the scheme.
This matter was investigated by the Federal Bureau of Investigation and the Iowa State Auditor’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
January 11, 2021 is National Day of Human Trafficking AwarenessRead the Press Release
Mention “human trafficking” in the same sentence with “Vermont,” and the reaction may be one of surprise and disbelief. Although Vermont may seem insulated from such a horrendous and insidious crime, even in the Green Mountain State human trafficking is hidden in plain sight. As with most public health issues, awareness is key to the prevention of human trafficking.
In 2007, the U.S. Senate designated January 11th as National Day of Human Trafficking Awareness. Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion can be subtle, and traffickers use manipulation and threats of physical, psychological, or emotional harm. Traffickers target those who are most vulnerable to exploitation: for example, children, runaways, the mentally or physically disabled, or those suffering from poverty, substance abuse disorder, neglect, or abuse. Victims are lured, manipulated, and controlled by the trafficker via false promises concerning relationships, employment, lifestyle, or drug availability. They are treated as commodities.
One of the challenges is to debunk the many myths surrounding sex and labor trafficking. Human trafficking is often confused with smuggling, evoking ideas of an international slave trade that has little to do with Vermont’s small towns and cities. Victims of trafficking in Vermont, however, include our own neighbors.“We must confront the reality that human trafficking happens all over the world, including right here in our beautiful state,” said United States Attorney Christina Nolan, “We must combat this horrible form of abuse through education and outreach, providing victims the full slate of recovery and support services they need, and prosecuting their vicious perpetrators. To meet this challenge, the Human Trafficking Task Force convenes stakeholders from across the spectrum, from service providers to law enforcement. We are grateful to all who work together to advance the Task Force mission.”
“Make no mistake that human trafficking happens in Vermont,” said Attorney General T.J. Donovan. “We can begin to prevent this crime by understanding that there is no single profile for offenders or for those who are victimized. The Vermont Human Trafficking Task Force seeks to coordinate systemic responses to crimes of trafficking and to also identify trauma-informed, person-centered resources and interventions for victims, and I am grateful for their service.”
The Vermont Human Trafficking Task Force was formed in 2013 to forge a collaboration to pursue prosecution of perpetrators - and to protect, rehabilitate, and empower survivors of human trafficking through comprehensive social, medical, and legal services. Led by the United States Attorney’s Office for the District of Vermont and the Vermont Attorney General’s Office, the Vermont Human Trafficking Task Force comprises dozens of stakeholders and embraces a mission “to prevent trafficking of persons within the State of Vermont by implementing a multidisciplinary response to human trafficking.”
Buoyed in 2019 by a federal cooperative agreement between the Department of Justice’s Office of Victims of Crime and two Vermont Task Force leaders - the Vermont State Police and the Vermont Center for Crime Victims Services - the Task Force has been expanding its scope and reach. This powerful collaboration, with representation from victim service providers, healthcare providers, prosecutors, and law enforcement, is recognizing the month with the release of two key resources.
The Vermont Human Trafficking Resource Guide provides contacts, tips, tools, and referrals for professionals who may encounter a suspected trafficking situation; and the Labor Trafficking Fact Sheet provides essentials about a crime that can be easily overlooked or confused with other labor violations.
If you suspect an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call 2-1-1, or the National Human Trafficking Hotline at 1-888-373-7888, or Text: BeFree.
If you or someone you know suspects that a child is being exploited or trafficked, please make a report to the Vermont Child Abuse Hotline (1-800-649-5285). Help and resources are available that can be offered to protect children in Vermont.
Anyone interested in obtaining training or for more general inquiries about the Task Force and its work can contact the United States Attorney’s Office through their Civil Rights Specialist at [email protected].Jamaican Man Charged with Smuggling Cocaine into United States through Newark AirportRead the Press Release
NEWARK, N.J. – A Jamaican man made his initial appearance today on charges that he smuggled approximately one kilogram of cocaine into the United States, Acting U.S. Attorney Rachael A. Honig announced.
Perez Omar Gibbs, 37, of Jamaica, was arrested on Jan. 9, 2021, and is charged by complaint with one count of importation of controlled substances. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor and was remanded without bail.
According to documents filed in this case and statements made in court:
Gibbs arrived at Newark Liberty International Airport aboard a flight from Montego Bay, Jamaica. Law enforcement officers discovered that Gibbs possessed approximately one kilogram of cocaine concealed inside two bags of coffee and four picture frames.
The count with which Gibbs is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Houston man gets life for trafficking girls for sexRead the Press Release
HOUSTON – A 45-year-old Houston man has been sent to prison and ordered to pay nearly $1 million following his convictions on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for less than three hours before convicting David Mearis Oct. 18, 2019, following three days of trial.
Today, U.S. District Judge Kenneth Hoyt sentenced Mearis to life in federal prison on each count to run concurrently. He was further ordered to pay $921,680 in restitution to the victims.
At the hearing, the court heard additional information including excerpts from victim impact statements two of the victims had prepared. “Many days I thought might be my last, being beat as if not human,” said one woman. “I ask that you ensure that no other human has to be subject to the threat of Mr. Mearis. He has created distress and trauma to one too many women and I how we are the last victims of his destructive mind.” Another victim called Mearis the “Devil. I was fearing for my life not knowing how to escape the humiliation that was going on. I have been mentally and physically abused,” she said.
“David Mearis was a career pimp who abused, controlled, and exploited his victims. He stooped to a new kind of low by taking advantage of one of the girls who had a learning disability and the mental capacity of a child,” said FBI Special Agent in Charge Perrye K. Turner. “Mearis wasn't the caretaker he wanted the court or his prey to believe. He was a dangerous predator who saw his victims not as girls or women, but a money-making commodity."
At trial, the jury heard evidence that spanned from approximately 2007 – 2016. Four victims testified about how they each met Mearis while still teenagers and how he won them over with gifts and kindness before using threats, sexual abuse and physical force to compel them into prostitution.
The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims. At today’s hearing, the court heard Mearis trafficked one victim for eight years, during which she “endured his reign of terror.”
One girl began a relationship with Mearis, then 32, when she was 17 after
she had run away from her Oakland, California, home. Another victim was only 15 when she met Mearis, then 34. Both of these girls considered Mearis their boyfriend in the earlier stages of their relationships but were eventually forced to engage in commercial sex in north Houston. One testified that they had to engage in these acts daily and at all times of the day.
Another victim, 14, encountered Mearis, then 41, and eventually ran away to live with him after they met on MocoSpace. She testified he had sexually assaulted her twice while she was with him in 2016.
Testimony revealed Mearis had put at least two of the girls on a peanut butter diet in order to fatten them up for the purpose of working as his prostitute. Evidence also showed text messages between Mearis and several victims demonstrating his constant control over their activities, including during the sex dates themselves. He controlled where they went, what they wore, what they ate and with whom they engaged in commercial sex. The jury saw commercial sex advertisements Mearis created for two of the victims and heard evidence about numerous times Mearis had accessed Backpage, a site formerly used for the purpose of advertising people for sexual activity. He also had bonded one of the victims out of jail at least twice after she was arrested for engaging commercial sex.
Some victims testified Mearis perpetrated acts of violence upon them, from slapping them across the face to being bound and gagged. They reported multiple instances in which they feared physical retaliation if they did not comply with demands, did not do as instructed or perform sexual acts as required. One victim described violence she experienced at the hands of Mearis following her release from jail.
At one point, when the girls were not making enough money, Mearis made one of them participate in a bank robbery. When it did not go exactly as he had planned, he berated her, calling her stupid, among other things.
That victim also described how she had virtually no relationships with anyone outside Mearis’ circle. He had taken her ID, would not let her drive or even use the phone. She was brought to tears multiple times on the stand. In one instance, she described that when her grandfather passed away, Mearis would not let her go unless he went with her. In trying to find the right word to describe the experience, she testified she felt “kidnapped” at the time and called him in court a “threat to young women.” “I felt like I had met the devil,” she said.
When she had eventually made it back to family in California after seeking help from Houston authorities, Mearis contacted her and threatened to call the police about her actions and the bank robbery if she did not return.
Another victim described how Mearis had hog-tied her and that he made her find other women for him. The jury heard Mearis had put a sock in her mouth, a gun to her head and threatened to kill her.
Evidence and testimony further established Mearis caused Supplemental Security Income benefits, intended for one of the victims, be directed to him. That victim had been diagnosed with mental retardation at an early age. Mearis himself described her as having the “mental capacity of a child” and could not do the simplest of tasks without constant supervision and instruction.
The defense implied the victims only implicated Mearis to avoid prosecution for their actions. The defense attempted to portray Mearis as simply a loving boyfriend who provided protection while the girls voluntarily engaged in commercial sex. However, testimony revealed the victims had to turn over the monies they earned for sexual acts directly to Mearis.
The jury did not believe the defense claims and found him guilty as charged.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department, Texas Attorney General’s Office and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—Jaelan Sarray Reid, 26, a known Hoover Criminal Gang member and resident of Portland, was sentenced today to 58 months in prison and three years’ supervised release for illegally possessing a firearm as a convicted felon, announced U.S. Attorney Billy J. Williams.
According to court documents, on June 18, 2020, a Morrow County sheriff’s deputy received a tip that several people with outstanding criminal arrest warrants were traveling west on Interstate-84 in a black Range Rover. The deputy located the vehicle with three occupants and conducted a traffic stop. Reid identified himself as “Charles Benton” and gave the deputy a false date of birth. The deputy identified Reid using a DMV photo and detained him.
During the traffic stop, the deputy noted a strong smell of marijuana coming from the vehicle. Deputies searched the vehicle pursuant to a state warrant issued in June 2020 and located a backpack behind the driver’s seat. Inside the package was a prescription bottle in Reid’s name and a loaded 9mm semiautomatic pistol. Reid was arrested and held at the Umatilla County Jail on state charges. During record jail calls, Reid made several incriminating statements about possessing the firearm in his backpack.
This case was investigated by the FBI, Homeland Security Investigations, Portland Police Bureau, and Multnomah County Sheriff’s Office with assistance from the Morrow County Sheriff’s Office. It was prosecuted by Lewis Burkhart, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gary Man Sentenced to 60 Months Imprisonment for Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
HAMMOND- Varnell Dixon, 24, of Gary, Indiana, was sentenced by Judge James T. Moody to 60 months imprisonment following his guilty plea to possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Bell.
According to documents in the case, on December 28, 2019, Dixon was driving a rented vehicle speeding eastbound on Interstate 80/94. At the time, he possessed a fully loaded Glock nine millimeter firearm, four bags of marijuana, some of which he intended to distribute, and $323.00 in small bills. Upon being pursued by the Indiana State Police, Dixon attempted to elude the police at a high rate of speed and ultimately exited onto the Cline Avenue ramp. Dixon lost control of the vehicle, causing it to leave the roadway and roll over several times. Dixon was thrown from the vehicle and arrested by police.
This case was the result of the investigative efforts of the Federal Bureau of Investigation Gang Response Investigative Team and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Maria N. Lerner and former Assistant U.S. Attorney Joseph A. Cooley.
Fort Walton Beach Man Sentenced to 15 Years in Federal Prison for Possession of Drugs and FirearmsRead the Press Release
PENSACOLA, FLORIDA – Guy Anthony Folta of Fort Walton Beach, Florida, was sentenced to serve 15 years in federal prison after pleading guilty to possession with intent to distribute over 50 grams of methamphetamine, heroin, and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm and ammunition by a convicted felon. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“Drugs and a weapon in the hands of a convicted felon is a menacing and potentially deadly combination, and the United States Attorney’s Office is committed to making sure such dangerous criminals are sentenced appropriately,” said U.S. Attorney Keefe. “Our law enforcement partners in Okaloosa County did an outstanding job in helping us bring Folta to justice.”
Folta, 49, was arrested on outstanding arrest warrants last June 29 by deputies from the Okaloosa County Sheriff’s Office. Following the arrest, deputies looked inside the vehicle Folta was driving and observed the grip of a pistol. After determining that Folta was a convicted felon, deputies obtained a search warrant authorizing the search of the vehicle, where they discovered a loaded stolen Glock 9 mm pistol with an obliterated serial number and 45 rounds of ammunition. Deputies also found 152 grams of methamphetamine packaged in five separate baggies, 10 grams of cocaine base, 21 grams of cocaine, 22 grams of heroin, and a digital scale.
“Our region should take notice of this case,” said Okaloosa County Sheriff Eric Aden. “This is a significant arrest and significant sentence for a man with a lengthy criminal record who was back out peddling poison to our citizens. But due to the ongoing joint efforts of our deputies and federal partners, Folta will now be off the streets for the next 15 years, making our region safer from the dangerous impacts of heroin, methamphetamine, and cocaine.”
The December 28 sentencing resulted from a joint investigation by the Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. FoltaFormer Sulphur Springs Office Administrator Sentenced to over Two and Half Years in Federal Prison for Theft of Government FundsRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that Codi Dannell Bates, age 34, of Gravette, Arkansas, was sentenced today to 32 months in federal prison without the possibility of parole followed by three years supervised release and ordered to pay $184,934.06 in restitution on one count of Theft from an Agency Receiving Federal Funds. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, from 2017 through 2019, while Bates was employed as the Office Administrator for the city of Sulphur Springs, she stole funds from the city in a variety of means. She obtained the signatures of city officials under false pretenses, then wrote those checks to herself and her husband. She also used cash funds paid to the city for water services to pay for her personal expenses. Bates’s criminal conduct was initially uncovered in detail by the Arkansas Bureau of Legislative Audit. Bates was arrested on state charges in May of 2019. The investigation was then referred to the Federal Bureau of Investigation. According to the investigation, Bates converted $184,934.06 from Sulphur Springs for her own personal use during her period of employment from August of 2017 through March of 2019. In 2018, the city of Sulphur Springs received over $180,000 from FEMA alone.
Bates waived formal Indictment and pled guilty to an Information filed by the U.S. Attorney’s Office on September 18, 2020.
This case was investigated by the Federal Bureau of Investigation, the Benton County Sheriff’s Department and the Arkansas Bureau of Legislative Audit. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Former Procurement Director at Broward Health Charged with Bribery, Extortion, and Money LaunderingRead the Press Release
Miami, Fl. – On Friday, the former Procurement Director for Broward Health appeared in Ft. Lauderdale federal court to face charges accusing him of awarding lucrative government contracts to vendors in exchange for bribes and of trying to conceal his crimes by directing the bribe money to various bank accounts.
For about 10 years, Brian Bravo, 46, of Pembroke Pines, Florida, worked as the Corporate Procurement Officer and Director of Materials Management for the North Broward Hospital District, known in the community as Broward Health. According to the five-count indictment, from 2008 to 2015, Bravo engaged in a kickback scheme with vendors that provided products and services to Broward Health, including health care products, linens, compression sleeves, and printer repairs. During that time, two of the vendors and a consultant for two other vendors made illegal kickback payments totaling hundreds of thousands of dollars to Bravo in order to secure tens of millions of dollars of business from Broward Health, says the indictment. In 2015, Bravo directed the vendors to pay the bribes to two companies that Bravo controlled in order to hide the unlawful nature of the scheme, according to the indictment.
Bravo had his initial appearance and arraignment hearings on Friday before Magistrate Judge Patrick M. Hunt, who sits in Ft. Lauderdale.
Southern District of Florida U.S. Attorney Ariana Fajardo Orshan and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey N. Kaplan is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60125.
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Former Orange County Social Worker Pleads Guilty to Federal Charge that He Distributed Child Pornography Videos on the InternetRead the Press Release
SANTA ANA, California – A former Orange County social worker pleaded guilty today to a federal criminal charge that he distributed computer video files that contained sexually explicit videos depicting children, including infants and toddlers.
Carlos Castillo, 62, of Santa Ana, pleaded guilty via videoconference to a single-count information charging him with distribution of child pornography.
According to his plea agreement, Castillo worked at Orange County’s Social Services Agency from May 2002 to January 2020. Beginning in August 2007, Castillo was a placement senior social worker whose responsibilities included assessing applicants’ suitability to provide care of children who are in protective custody, completing a home and grounds environment assessment, and placing children into homes.
In November 2019, Castillo knowingly distributed child pornography consisting of three video files, the plea agreement states. Castillo admitted that he, using the screen name “Ratster12” as a member of a child pornography group that used the LiveMe application, posted a link to another webpage containing three videos depicting prepubescent children, including infants and toddlers, who were being sexually assaulted by adults and other children.
Castillo also admitted that in January 2020 he possessed a Dell computer, two flash drives and an Apple iPhone that contained at least 1,027 videos and 914 images of child pornography. Castillo further admitted that he possessed videos of minors undressing that Castillo had recorded from LiveMe. In addition, he admitted to possession of pictures of minors in public without the authorization or knowledge of the minors or their parents.
United States District Judge Cormac J. Carney has scheduled an April 19 sentencing hearing, at which time Castillo will face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office is prosecuting this case.
Former New Haven Resident Admits Possessing Child Sex Abuse ImagesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHELLE LYNN GSCHLECHT, formerly known as RICHARD GSCHLECHT, 51, last residing in New Haven, pleaded guilty today before U.S. District Judge Kari A. Dooley to one count of possession of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in August 1996, Gschlecht was convicted in state court of sexual assault in the first degree related to the aggravated sexual abuse of a minor. In July 2015, Gschlecht was convicted in state court of possession of child pornography.
In March 2019, Gschlecht began serving a 10-year term of state probation. In July 2019, Gschlecht’s probation officer received information that Gschlecht was in possession of a cellphone that contained images depicting the sexual abuse of minors. State probation officers arrested Gschlecht on July 31, 2019, after a review of her phone revealed images of child pornography. Subsequent forensic analysis of the phone revealed approximately 174 images of child pornography, including images depicting the sexual abuse of prepubescent children and infants.
Judge Dooley scheduled sentencing for April 8, 2021, at which time Gschlecht faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Gschlecht’s criminal history.
Gschlecht has been detained since her arrest.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the New Haven Police Department, with the assistance of the Connecticut’s Office of Adult Probation. The case is being prosecuted by Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Longtime Employee of Orange Unified School District Sentenced to 6 Years in Prison for Distributing Child PornographyRead the Press Release
LOS ANGELES – A former employee of the Orange Unified School District was sentenced today to 72 months in federal prison for distributing child pornography, specifically sending image and video files of explicit sexual conduct involving young children via the Kik instant messaging application.
Mike Barry Brior, 43, of Riverside, who was an 18-year employee of the school district, where he worked for a time directly with children as a teacher’s assistant, was sentenced by United States District Judge George H. Wu. Once he completes the six-year prison term, Brior will be under supervised release for 20 years, and he will be required to register as a sex offender. Judge Wu also ordered Brior to pay $12,000 in restitution and special assessments that will go to victims in this case.
Brior pleaded guilty in November to one count of distribution of child pornography. According to court documents, Brior sent at least 10 video files to two message groups in less than three weeks in 2018, and prosecutors believe at least some of these uploads occurred while he was at school during work hours.
The sentencing memorandum filed by prosecutors summarizes the content of the videos and notes that the victims were both boy and girls, some of them appearing to be as young as 3.
Citing a U.S. Senate report in the sentencing memorandum, prosecutors wrote that Brior “was actively expanding the marketplace for child pornography by regularly putting it in the hands of others. The marketplace for child pornography incentivizes other individuals to produce such content and harms some of the most vulnerable members of society: children.”
This matter was investigated by Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.
Disgraced soccer star and indoor soccer team owner pleads guilty to massive tax fraudRead the Press Release
Seattle - A former Seattle college soccer star, currently serving time for sexual assault in Arizona and on a second sexual assault case in King County, Washington, pleaded guilty today in U.S. District Court in Seattle to making false statements on a tax return, announced U.S. Attorney Brian T. Moran. During a massive tax fraud scheme, 48-year-old DION L. EARL purchased the Seattle Impact FC franchise, a professional indoor soccer club. According to the plea agreement between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions so that he could attempt to claim tax refunds of more than $1.6 million. Under the terms of the plea agreement, prosecutors will recommend EARL serve a one-year consecutive federal sentence following his 12-year sentence in Arizona and 33-month consecutive sentence in Washington State, for a total sentence of nearly 16 years in prison.
The actual sentence is up to U.S. District Judge Robert S. Lasnik who has scheduled sentencing for April 9, 2021.
In the 1990’s EARL was a soccer star at Seattle Pacific University. Between 2008 and 2014, EARL also worked in car sales in Washington State and Arizona and owned Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact, FC. In today’s plea agreement, EARL admitted that he used his association with car dealers, Dion Earl’s Total Soccer & Tennis Camps, and the Seattle Impact to commit tax fraud.
EARL specifically acknowledged that, on his 2012 Form 1040 tax return, he claimed that (1) he made $1,600,000 working for eight different car dealers, which withheld more than $660,000 of his wages for taxes, and (2) his wife was employed by Dion Earl’s Total Soccer & Tennis Camps, which paid her $240,000 and withheld $51,000 in taxes, and (3) he made $520,000 in mortgage interest payments on four different properties. EARL admitted that, in fact, all these claims were false. That is, EARL admitted that during 2012, EARL made less than $45,000, from which he did not have any taxes withheld, and he paid limited mortgage interest. Pursuant to these false claims, EARL obtained a federal tax refund of $414,160.
EARL also admitted that even after the IRS began a civil audit of EARL’s taxes in 2013, he continued to make false claims and provide false information to the IRS. For example, Earl admitted that, as late as 2015, he falsely claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, and the Seattle Impact FC, from which the businesses withheld $180,000 in taxes. In making these false claims, EARL sought a tax refund of $137,554. That refund was not paid, however.
In total, EARL sought $1.6 million in fraudulent tax refunds and was paid $1,093,534 by the IRS.
In the plea agreement, EARL also agreed to pay $600,000 in restitution to the State of Arizona, as a result of fraudulent tax returns he filed with that state. And, while EARL did not admit to submitting false income information to Key Bank in 2008, in order to qualify for a home equity line of credit—as was alleged in the Indictment—in the plea agreement, EARL agreed to make approximately $95,000 in restitution payments to Key Bank.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.
Cleveland man admits to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Michael Anthony Toler, of Cleveland, Ohio, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Toler, age 34, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Toler admitted to having cocaine case, also known as “crack,” in Ohio County in February 2020.
Toler faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Chicopee Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was indicted by a federal grand jury on Wednesday, January 6, 2021 on child pornography offenses.
Michael Geoffroy, 35, was indicted on three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography.
The indictment alleges that in December 2020, Geoffroy distributed and possessed child pornography, and that he used a child to create child pornography.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation in Boston; and Chicopee Police Chief William R. Jebb made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
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.