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8 January 2021
Nicholas R. Ochs Arrested for Unlawful Entry into the United States Capitol BuildingRead the Press Release
HONOLULU, Hawaii – A criminal complaint was unsealed today in federal court in the District of Columbia charging Nicholas R. Ochs with Unlawful Entry into Restricted Buildings or Grounds, in violation of Title 18, United States Code, Section 1752(a). The defendant was arrested last evening in Honolulu, Hawaii, at the Daniel K. Inouye International Airport. His initial appearance will be in federal court in Honolulu.
According to court filings, the charge stems from Ochs’s unlawful entry into the United States Capitol building on January 6, 2021. The government will seek his removal to the District of Columbia to face this charge.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
Please direct all press inquiries to Shelia Miller at the U.S. Attorney’s Office for the District of Columbia at (202) 252-6933, [email protected].
New York Man Sentenced to Six Years in Prison for Supervisory Role in Large-Scale Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Bronx, New York man was sentenced today to 72 months in prison for supervising a large-scale wire fraud conspiracy that exposed victims to more than $2 million in losses, Acting U.S. Attorney Rachael A. Honig announced.
Joshua Suarez, 34, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of engaging in a conspiracy to commit wire fraud. Judge McNulty imposed the sentence today by video teleconference.
According to documents filed in the case and statements made in court:
The conspirators used multiple techniques to fraudulently convince banks and other corporate entities to send or release funds to them, including withdrawing funds by falsely claiming to be financial account holders and negotiating bogus checks. Suarez recruited and directed individuals to open bank accounts in order to launder the funds. Once the fraudulently obtained funds were deposited into the bank accounts, Suarez oversaw the withdraw and transfer of funds from those accounts. The conspiracy exposed victims to losses of more than $2,000,000.
Nine people have been charged, eight have pleaded guilty, and six have been sentenced in this case. The charges and allegations against the remaining defendant are merely accusations, and he is presumed innocent unless and until proven guilty.
In addition to the prison term, Judge McNulty sentenced Suarez to three years of supervised release and ordered him to pay $504,164 in restitution.
Acting U.S. Attorney Honig credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
NDTX Round-Up: January 1 - 7Read the Press Release
SENTENCING – MARIO MAKIYA SANDIFER a.k.a. “Danero the Goat”
On January 6, Mario Makiya Sandifer, 25, was sentenced to 3 years in federal prison for tampering with a witness or victim. In June 2019, law enforcement arrested Catrell Tywarren Johnson for sex trafficking. Sandifer intentionally contacted the trafficking victim via social media to prevent her testimony against Johnson. In one such attempt, Sandifer created a music video which he posted to YouTube and sent to the victim the link. In the video, Sandifer made threatening remarks and gestures in reference to the victim. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Nicole Dana prosecuted this case.
SENTENCING – ROGELIO ALVARADO
On January 7, Rogelio Alvardo, 35, was sentenced to 33 months in federal prison for conspiracy to distribute a controlled substance. Alvarado admits that he distributed cocaine to customers in exchange to U.S. currency. He also admits that he used a cellular phone to discuss, negotiate, and facilitate drug transactions with a co-conspirator. This case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – ROBERT BURNEY CAPPS
On January 7, Robert Capps, 71, plead guilty to transporting and shipping child pornography. In September 2019, HSI received a cyber tip that reported that an image of child pornography had been uploaded to the Kik messaging application. Agents executed a search warrant at an address in Dallas where Capps lived. A forensic review of Capps cellular device revealed 508 imaged of child pornography. These images included sadistic images as well as images of infants and toddlers. Capps faces up to 20 years in federal prison for his crimes. This case was investigated by Homeland Security Investigations (Child Exploitation Group – Dallas). Assistant U.S. Attorney Lindsey Beran is prosecuting this case.
SENTENCING – BO JACK KELLEY
On January 7, Bo Jack Kelley, 27, was sentenced to 30 years in federal prison for production of child pornography. Kelley, a resident of Cullman, Alabama met a 14-year-old minor, located in Texas, on social media. Kelley coerced the minor to produce and send him sexually explicit videos. Kelly threatened that if the minor did not continue to send him pornographic videos, he would send the videos she already sent him to members of her family. Eventually, Kelley sent four sexually explicit videos of the minor’s mother’s social media account. This case was investigated by the FBI, Texas DPS, Texas Rangers, Shallowater Police Department, and Cullman Police Department.
Muskogee County Man Pleads Guilty to Attempted Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jobe Anthony Terronez, age 19, of Muskogee County, Oklahoma entered a guilty plea to Attempted Robbery In Indian Country, in violation of Title 18, United States Code, Sections 2111, 1151, 1153, and 2, punishable by up to 15 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about July 30, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, by force and violence and by intimidation, did attempt to take items of value from the person and presence of D.L.
The charges arose from an investigation by the Oklahoma State Bureau of Investigation, the Haskell Police Department, the Muskogee Police Department, and the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Montrose Resident Sentenced to More Than Seven Years in Federal Prison for Role in Drug ConspiracyRead the Press Release
United States Attorney Jason Dunn announced that Naomi Vaughn, 36, of Montrose, Colorado, was sentenced to more than seven years (87 months) in federal prison for her role in a conspiracy to distribute methamphetamine. Vaughn’s prison sentence will be followed by a five-year term of supervised release.
According to court documents, as well as facts presented at sentencing, Vaughn and her husband/co-defendant Joseph Davis were mid-level dealers of methamphetamine in Montrose, Colorado. They received and distributed multiple pounds of methamphetamine for profit. Vaughn began this criminal activity shortly after her husband was released on parole in 2019, after he served a portion of a ten-year state prison sentence for previous drug distribution. After Davis was released on parole, the couple distributed methamphetamine from their Montrose residence.
“Montrose is an important community on the western slope,” said U.S. Attorney Jason Dunn. “Drug rings operating in small communities can have a devasting impact on the quality of life. I commend our federal and local law enforcement partners who worked tirelessly with our prosecutors to make a real difference for everyone who lives in Montrose and the surrounding area.”
“This sentencing sends a clear message that those who seek to sell this poison in our community will be caught and dealt with severely,” said DEA Special Agent in Charge Deanne Reuter. “The DEA and our law enforcement partners across the state are committed to eradicating the illegal sale and distribution of methamphetamine and other hard drugs plaguing our communities.”
United States District Court Judge Christine M. Arguello sentenced Vaughn on January 7, 2021. Davis was previously sentenced to more than 12 years (151 months) for his involvement in the drug conspiracy.
The investigation in this matter was conducted by the DEA, the Montrose County Sheriff’s Office, the Montrose County Police Department, and the Seventh Judicial District Drug Task Force. Assistant United States Attorney Zachary Phillips is leading the prosecution.
CASE NUMBER: 19-cr-00535-CMA-GPG
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Miami Nurse Charged with Defrauding Covid-19 Relief ProgramsRead the Press Release
Miami, Fl. – Federal prosecutors have charged a Miami nurse with fraud and other crimes in a criminal complaint that accuses him of lying on coronavirus relief loan applications and fraudulently obtaining close to half a million dollars in relief money intended to help small businesses survive disasters like the current pandemic.
The complaint affidavit alleges that Giraldo Caraballo, 55, falsely applied for and received approximately $420,000 in a Paycheck Protection Program (PPP) loan from a bank on behalf of Professional Skills Inc., a company that he controlled. According to the affidavit, Caraballo falsely claimed on the PPP loan application that the company had 28 employees and an average monthly payroll of $168,000. The affidavit also alleges that Caraballo applied for and received approximately $55,000 in Economic Injury Disaster Loan (EIDL) relief. In his EIDL application, Caraballo falsely claimed that his company had four employees and a 12-month gross revenue of $180,000. In fact, Caraballo’s company had zero employees and no payroll expenses. Caraballo spent the relief money on personal expenses and transferred $239,000 into a personal bank account, says the affidavit.
Caraballo made his initial appearance today before U.S. Magistrate Judge Jacqueline Becerra. His arraignment is scheduled for January 29, 2020, in federal magistrate court in Miami.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI Miami Field Office made the announcement.
FBI investigated this case. Assistant U.S. Attorney Eli S. Rubin is prosecuting it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. Since its enactment, Congress has authorized hundreds of billions of additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Another source of relief is funding for the EIDL program, which is administered by the U.S. Small Business Administration. The EIDL program provides low-interest financing to small businesses, renter, and homeowners in regions affected by declared disasters. The EIDL Advance is issued to affected employers based on the number of employees the applicant certifies having.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case number 21-mj-02014.
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Mescalero man pleads guilty to voluntary manslaughter in Indian countryRead the Press Release
ALBUQUERQUE, N.M. – Mundo Charles Barela, 19, of Mescalero, New Mexico, pleaded guilty on Jan. 6 in federal court to voluntary manslaughter in Indian country.
In the plea agreement, Barela admitted to stabbing a man on the evening of July 20, 2020, during a quarrel and “in the heat of passion.” Barela stabbed the victim several times in the victim’s throat, chest and abdomen. The victim was transported to the hospital where he was pronounced dead. The attack took place on the Mescalero Apache Indian Reservation and the victim was an enrolled member of the Mescalero Apache Tribe.
Barela will remain in custody pending sentencing. He faces up to 15 years in prison.
The Bureau of Indian Affairs and the FBI investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Maryland Man Sentenced to Prison for Bank FraudRead the Press Release
WASHINGTON – Deallto McQuil Key Davis, 25, of Maryland, was sentenced today in U.S. District Court for the District of Columbia to 27 months of imprisonment for conspiring to defraud a bank out of hundreds of thousands of dollars, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office. In 2015, Davis was sentenced to six months in prison followed by three years of supervised release for conspiracy to commit money laundering.
From January 2018 through April 2018, while he was on supervised release for the federal money laundering offense, Davis conspired with others to defraud Wells Fargo Bank. The conspiracy involved Davis traveling to Wells Fargo ATMs in the District of Columbia, Maryland, and Virginia, depositing worthless checks into accounts belonging to other account holders, and causing the ATMs to malfunction. The checks Davis deposited were ultimately dishonored by the issuing banks, but in some cases, any hold that Wells Fargo placed on the deposited checks expired before Wells Fargo discovered the fraud. In total, Davis used Wells Fargo ATMs to conduct 24 fraudulent check deposits totaling approximately $390,000 into various accounts. Participants in the conspiracy accessed approximately $144,000 from the accounts before the bank discovered the fraud.
Davis was charged via criminal complaint with bank fraud in January 2019. He was initially held without bond, but then released on certain conditions, which included not committing any additional crimes. In October 2019, a grand jury charged him with nine counts of bank fraud and nine counts of aggravated identity theft related to the bank fraud scheme. In January 2020, a grand jury returned a separate indictment charging him with seven counts of contempt, alleging that he committed additional fraudulent conduct while he was on pretrial release. As part of the plea agreement, the government agreed to dismiss all of the pending charges against Davis at his sentencing hearing.
In addition to sentencing Davis to 27 months in prison, the Honorable Trevor N. McFadden ordered that Davis serve three years of supervised release and pay restitution and a forfeiture money judgment.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who investigated the case. They also expressed appreciation to Paralegal Specialists Mariela Andrade and Amanda Rohde. Finally, they commended the work of former Assistant U.S. Attorney Anthony Saler, who investigated both cases, and Assistant U.S. Attorneys Kondi Kleinman and David Kent.
Marietta doctor sentenced to 8 years in prison for illegally distributing opioid pain meds, health care fraudRead the Press Release
COLUMBUS, Ohio – A Southeast Ohio doctor was sentenced in U.S. District Court today to 96 months in prison for illegally prescribing controlled substances and defrauding health care programs.
A federal jury convicted Roger D. Anderson, 66, of Marietta, in March 2020.
Specifically, Anderson was convicted of one count of conspiring to distribute controlled substances, eight counts of illegal dispensing of controlled substances and one count of committing health care fraud.
Anderson owned and operated Marietta Medical, which was located on Putnam Street in Marietta.
According to court documents and trial testimony, between January 2012 and March 2016, Anderson conspired with others to distribute opioids like oxycodone and hydrocodone outside the scope of medical practice and without a legitimate medical purpose.
Anderson pre-signed prescriptions for staff to complete and distribute to patients in his absence. Prescriptions were given to patients on days that Anderson did not examine them and by staff who were not legally qualified to give prescriptions. Further, the drugs would be distributed at a kiosk after hours inside the office complex Putnam Commons.
Anderson prescribed dangerous combinations of controlled substances, including those known as “Holy Trinity” (an opioid, a benzodiazepine and a muscle relaxant) and “Speedballs” (a stimulant and an opioid).
One patient received four prescriptions issued in the same day for 10 Fentanyl patches, 120 Xanax pills, 180 Oxycodone pills and 180 pills of the acetaminophen-hydrocodone mix Norco. On that same date, the patient already had two other overlapping prescriptions for Fentanyl issued by Anderson.
Additionally, Anderson conspired to and committed health care fraud, defrauding the Ohio Medicaid and Medicare programs. Anderson caused the submission of claims for controlled substance that were prescribed in violation of Federal law.
“Anderson ignored blatant red flags that his patients were abusing and diverting the opioids he prescribed,” U.S. Attorney David M. DeVillers said. “He prescribed opioids and benzodiazepines to a pregnant patient and was banned by pharmacies. Today’s sentence is another reminder that if you act like a drug dealer, we will prosecute you like one.”
“Instead of helping and healing, this doctor fueled drug addictions,” Ohio Attorney General Dave Yost said. “It’s appalling and I am thankful for the state and federal partnership that worked to stop this activity.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; John Logue, Interim Administrator/CEO, Ohio Bureau of Workers Compensation; and Washington County Sheriff Larry Mincks announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley.
Assistant United States Attorney Kenneth F. Affeldt and Senior Litigation Counsel Douglas W. Squires represented the United States in this case.
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Man Who Solicited “Nudes” of Children Online Sentenced to Federal PrisonRead the Press Release
A man who possessed photographs and at least six videos containing child pornography, and who communicated with others online in an attempt to obtain additional nude photographs of children, was sentenced today to more than 15 years in federal prison.
Dustin Herhold, age 27, from Waterloo, Iowa, received the prison term after an August 6, 2020 guilty plea to the attempted sexual exploitation of a child.
In a plea agreement, Herhold admitted that between September 20, 2019, and October 1, 2019, he used a chat application to request nude photos of a twelve-year old child. He also admitted to possessing nude photographs of children on a tablet.
Herhold was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Herhold was sentenced to 188 months’ imprisonment and fined $100. He must also serve a 5-year term of supervised release after the prison term and register as a sex offender. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Herhold is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2016-CJW.
Follow us on Twitter @USAO_NDIA.
Man Sentenced for Illegally Straw Purchasing 17 FirearmsRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to one year and one day in prison for conspiring to illegally straw purchase 17 firearms.
According to court documents, Corey Randolph Harris, Jr., 27, conspired with an unnamed co-conspirator to knowingly make false statements with respect to the purchase of firearms. Between April 2019 and July 2019, Harris straw purchased 17 firearms in eight separate transactions, all from federal firearms licensees in the Eastern District of Virginia. In each transaction, Harris represented himself as the true buyer of the firearms when, in fact, he was purchasing them on behalf of the unnamed co-conspirator and selling them to the unnamed co-conspirator for a profit. The Metropolitan Police Department in Washington, D.C. recovered two of the firearms from individuals other than Harris and the unnamed co-conspirator.
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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Natasha Smalky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-212.
Man Sentenced for Financial Institution and Identity FraudRead the Press Release
A man has been sentenced today in federal court for fraudulently using another individual’s identity to purchase an RV in the Northern District of Oklahoma, announced U.S. Attorney Trent Shores.
Ryan Andy Cuevas, 32, of Moreno Valley, California, has been sentenced by Chief U.S. District Judge John E. Dowdell to 21 months in federal prison and 3 years supervised release.
“Identity theft is one of the fastest growing crimes in the United States. The ramifications for victims can be devastating, personally and financially,” said U.S. Attorney Trent Shores. “Identity thieves like Ryan Cuevas will be prosecuted vigorously in this district. I applaud the efforts of the Social Security Administration’s Inspector General and Bartlesville Police Department for their great investigative work on this case.”
In his plea agreement, Cuevas admitted that on November 30, 2019, having traveled to Oklahoma from California, he went to Bob Hurley RV in Tulsa to purchase a recreational vehicle fraudulently. He used the identity of a man in California, without his permission, while duping the dealership into a vehicle sale. Cuevas used the man’s name and social security number to apply for credit financing, knowing the dealership would submit the loan application papers to Tinker Federal Credit Union for the purpose of obtaining the funds to purchase the RV. He secured $38,000 to purchase the vehicle. Bob Hurley was able to recover the RV once Cuevas’ fraud was discovered.
The Social Security Administration – Office of Inspector General and the Bartlesville Police Department conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Man Arrested for Illegally Entering Office of Speaker of the HouseRead the Press Release
WASHINGTON - Richard Barnett, 60, of Gravette, Arkansas was arrested today in Bentonville, Arkansas on multiple criminal charges related to his alleged unlawful activities earlier this week at the U.S. Capitol Building where he was photographed with his feet up on a desk in the Speaker of the House of Representatives’ office.
Barnett is in custody is expected to make his initial appearance Tuesday at 3pm (via zoom) in federal court in Fayetteville. He will ultimately be extradited to Washington, D.C.
“The shocking images of Mr. Barnett with his boots up on a desk in the Speaker of the House’s office on Wednesday was repulsive,” said Jeffrey A. Rosen, Acting Attorney General of the United States. “Those who are proven to have committed criminal acts during the storming of the Capitol will face justice.”
According to court documents, U.S. Capitol Police learned that an individual had entered the restricted office area of the Speaker of the House of Representatives Nancy Pelosi and was photographed with his feet propped up on furniture. Those photos were circulated on numerous news media platforms which identified the individual as Barnett. A search of law enforcement databases confirmed that the individual in the news photographs did in fact appear to be Barnett.
“This case is just one in a number that demonstrate the brazen acts that were committed at the Capitol on Wednesday,” said Michael Sherwin, Acting U.S. Attorney for the District of Columbia. “My Office is committed to prosecuting all individuals who participated in these abhorrent acts to the fullest extent of the law.”
“The U.S. Capitol is one of the most iconic buildings in our country and a symbol of the Constitution and people we have sworn to protect, and its destruction will not be tolerated,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “This arrest demonstrates to all individuals involved in January 6 incursion into the U.S. Capitol that the FBI will find you and hold you accountable for your crimes, no matter your location. We thank the FBI Little Rock Field Office for their quick assistance in bringing this perpetrator to justice.”
Barnett is charged with knowingly entering or remaining in any restricted building or grounds without lawful authority; violent entry and disorderly conduct on Capitol grounds; and theft of public money, property, or records. If convicted, he faces a maximum penalty of one year in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the U.S. Capitol Police and the FBI’s Washington Field Office, with the assistance of the Justice Department’s National Security Division and the FBI’s Little Rock Field Office.
Assistant U.S. Attorney Nicole McClain of the U.S. Attorney’s Office for the District of Columbia is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Arrested for Illegally Entering Office of Speaker of the HouseRead the Press Release
Richard Barnett, 60, of Gravette, Arkansas was arrested today in Bentonville, Arkansas on multiple criminal charges related to his alleged unlawful activities earlier this week at the U.S. Capitol Building where he was photographed with his feet up on a desk in the Speaker of the House of Representatives’ office.
Barnett is scheduled to make his initial appearance in federal court on Tuesday. He will ultimately be extradited to Washington, D.C.
“The shocking images of Mr. Barnett with his boots up on a desk in the Speaker of the House’s office on Wednesday was repulsive,” said Jeffrey A. Rosen, Acting Attorney General of the United States. “Those who are proven to have committed criminal acts during the storming of the Capitol will face justice.”
According to court documents, U.S. Capitol Police learned that an individual had entered the restricted office area of the Speaker of the House of Representatives Nancy Pelosi and was photographed with his feet propped up on furniture. Those photos were circulated on numerous news media platforms which identified the individual as Barnett. A search of law enforcement databases confirmed that the individual in the news photographs did in fact appear to be Barnett.
“This case is just one in a number that demonstrate the brazen acts that were committed at the Capitol on Wednesday,” said Michael Sherwin, Acting U.S. Attorney for the District of Columbia. “My Office is committed to prosecuting all individuals who participated in these abhorrent acts to the fullest extent of the law.”
“The U.S. Capitol is one of the most iconic buildings in our country and a symbol of the Constitution and people we have sworn to protect, and its destruction will not be tolerated,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “This arrest demonstrates to all individuals involved in January 6 incursion into the U.S. Capitol that the FBI will find you and hold you accountable for your crimes, no matter your location. We thank the FBI Little Rock Field Office for their quick assistance in bringing this perpetrator to justice.”
Barnett is charged with knowingly entering or remaining in any restricted building or grounds without lawful authority; violent entry and disorderly conduct on Capitol grounds; and theft of public money, property, or records. If convicted, he faces a maximum penalty of one year in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the U.S. Capitol Police and the FBI’s Washington Field Office, with the assistance of the Justice Department’s National Security Division and the FBI’s Little Rock Field Office.
Assistant U.S. Attorney Nicole McClain of the U.S. Attorney’s Office for the District of Columbia is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Lafourche Parish Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL MATHEWS, a/k/a “DOT,” age 37, a resident of Thibodaux, Louisiana, pled guilty on January 7, 2021 before U.S. District Judge Carl J. Barbier to thirteen counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine, five kilograms or more of cocaine hydrochloride, use of a communication facility to facilitate a drug trafficking crime, and distribution of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from MATHEWS. After making the controlled purchases, agents obtained court ordered wiretaps of MATHEWS and his co-conspirators’ telephones and intercepted numerous calls between MATHEWS his co-conspirators, and customers in which they discussed the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents were able to identify and seize two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1300 grams of a mixture or substance containing methamphetamine.
MATHEWS faces a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment and a $100.00 special assessment fee per count.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Jackson Sentenced to 10 Years in Federal Prison for Possession of Child Pornography ConvictionRead the Press Release
SALT LAKE CITY – Patrick George Jackson, 60, of North Salt Lake, Utah, will serve 10 years in federal prison followed by 84 months of supervised release after pleading guilty to possession of child pornography in federal court. In the plea agreement, Jackson admitted that in May of 2019, he possessed over 600 images of child pornography on his electronic devices. Jackson also admitted that he had been previously convicted twice of sexual offenses Utah, including a 1990 conviction for Sexual Abuse of a Child, and a 2002 conviction for Attempted Forcible Sexual Abuse. After his release from federal prison, Jackson will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents of the FBI conducted the investigation.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 4 was:
Taylor Ray Bogard, 21, of Missoula, on charges of prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Bogard faces a maximum 10 years in prison, a $250,00 fine and three years of supervised release. Bogard was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department investigated the case. PACER case reference. 20-49.
Grady Harold Sullivan, Jr., 44, of Eureka, on charges of prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Sullivan faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sullivan was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Lincoln County Sheriff’s Office, Montana’s Probation and Parole Division and Montana Department of Fish, Wildlife and Parks investigated the case. PACER case reference. 20-55.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 5 was:
Jose Eduardo Garcia, 29, hometown unknown, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Garcia faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Garcia was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-134.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 5 was:
Eduardo Luis Diaz, 26, of Chicago, IL, on charges of aggravated sexual abuse and sexual abuse. If convicted of the most serious crime, Diaz faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Diaz was released pending further proceedings. The National Park Service investigated the case. PACER case reference. 20-56.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Independence Man Pleads Guilty to Illegal Firearm Following Police Chase in Stolen TruckRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to illegally possessing a firearm following a police chase in a stolen pickup truck.
John D. Seger, 28, pleaded guilty before U.S. District Judge Greg Kays to being a felon in possession of a firearm.
By pleading guilty today, Seger admitted that he was in possession of a Phoenix handgun while driving a stolen pickup truck on Jan. 18, 2017. Independence police officers saw Seger run a red light. Officers attempted a traffic stop, but Seger fled from police and stopped only after the vehicle wrecked and became inoperable. Seger fled on foot before being apprehended by police. Officers then found the handgun inside the pickup truck.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Seger has a prior felony conviction for voluntary manslaughter, two prior felony convictions for burglary, two prior convictions for tampering with a motor vehicle, and a prior felony conviction for resisting arrest.
Under federal statutes, Seger is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Houston Woman Arrested for Lottery Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. – On Wednesday, January 6th, federal agents arrested a woman for her role in a lottery fraud scheme, announced U.S. Attorney Prim F. Escalona, FBI Special Agent in Charge Johnnie Sharp, Jr., and U.S. Postal Inspection Service Inspector-In-Charge, Houston Division, Adrian Gonzalez.
A five-count indictment filed in U.S. District Court charges Gloria Kirk Edmonson, 75, of Houston, Texas, with one count of conspiracy, two counts of wire fraud, one count of mail fraud, and one count of conspiracy to commit money laundering.
According to the indictment, from January 2019 through December 2020, Edmonson was a part of a lottery fraud scheme that persuaded individuals, often vulnerable elderly individuals, to send money and/or valuable property via mail. The individuals were led to believe they had won the lottery and need only pay their taxes or fees to receive their winnings. Edmonson deposited the money into bank accounts that she controlled. The funds were transferred to other accounts that her co-conspirators had access to via a debit card, which they used to withdraw cash from financial institutions in Jamaica.
The maximum penalty for conspiracy is five years in prison. The maximum penalty for wire fraud, mail fraud, and the money laundering conspiracy is 20 years in prison.
FBI and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Kristen S. Osborne is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Home Health Aide Charged in Twenty-Two Count Indictment for Stealing Elderly Clients’ Identity, Banking, and Credit Card Information and Using it to Commit Financial FraudRead the Press Release
Miami, Fl. -- Jamie Jakia Cofer, a/k/a “Anna Bell,” 24, of Lake Worth, Florida, was charged in a twenty-two count indictment with bank fraud, aggravated identity theft and fraudulent use of unauthorized access devices after using the social security numbers, dates of birth, and other identity and financial information of victims to steal money from their bank accounts, deposit unauthorized checks, make unauthorized credit card purchases, and engage in other fraudulent transactions. During the alleged crimes, Cofer worked as a home health aide. Cofer’s victims included elderly clients of Cofer’s, whose homes she entered with the supposed purpose of helping them with their home health needs.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office and Brian J. Smith, Chief, Juno Beach Police Department made the announcement.
According to allegations contained in the indictment and previously filed criminal complaint, for over a year starting in January 2019, Cofer worked as a home health aide servicing senior citizens in the South Florida community. During that time, Cofer gained access to her elderly clients’ social security numbers, dates of birth, bank accounts, credit cards, and other information. Without the knowledge or consent of these elderly clients, Cofer allegedly used the information to steal money from bank accounts, open unauthorized credit card accounts, deposit unauthorized checks, make herself an authorized user on credit accounts, make unauthorized purchases of items such as a mannequin head and wig stand, pay her mobile phone, insurance, and other bills, and send money to a prison inmate, among other things.
For example, Cofer allegedly used one elderly client’s bank account information to set up auto pay on one of Cofer’s utility accounts. Cofer allegedly used her own phone number and email to set up paperless account notifications to prevent this victim from receiving alerts.
Cofer is scheduled to be arraigned on the indictment on January 25, 2021, at 10:00 a.m., before the West Palm Beach Duty Magistrate Judge.
U.S. Attorney Fajardo Orshan commended the FBI and Juno Beach Police Department for its work on this investigation. She also thanked the Lantana Police Department and Boca Raton Police Department for their assistance.
Assistant United States Attorney Sarah J. Schall is prosecuting this case.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
An indictment and criminal complaint are charging instruments containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case numbers 20-MJ-8273 and 21-CR-80003-Middlebrooks.
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Greenbrier County Man Sentenced to Prison for Breaking into United States Post OfficeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Matthew Riffle, age 30, of Rupert, was sentenced to 14 months in federal prison for the felony offense of breaking into a United States Post Office. Riffle pled guilty on September 25, 2020 and has been in federal custody since June 30, 2020. He was also ordered to pay restitution to the United States Post Office in the amount of $3,690.42 for the items he took that were not recovered and any damage done to both of the post offices. After he discharges his prison sentence, he will be placed on supervised release for three years.
“Breaking into federal government buildings is a serious offense,” said United States Attorney Mike Stuart. “And as Riffle can attest, it’s an offense that can result in stiff sentences.”
On two successive days, Riffle broke into two different United States Post Offices. On March 31, 2019, Riffle used a pry bar to break into the Springdale, Fayette County, United States Post Office. Once inside, he took a postage meter, mail, stamps and some cash. On the previous day, Riffle broke into the Smoot, Greenbrier County, United States Post Office and took some cash. Finally, on April 1, 2019, Riffle again attempted to break into the Smoot Post Office, but was not successful due to the installation of a new door lock and security mechanism. Riffle was arrested on April 2, 2019 by the Greenbrier County Sheriff’s Department. Riffle was advised of his Miranda rights and agreed to give a statement. He admitted to breaking into both of the post offices, and attempting to break into the Smoot Post Office a second time. Riffle stated that his goal was to take the postal machine that prints money orders, but he took the postage stamp meter by mistake. Law enforcement recovered a number of the stolen items from Riffle’s home, including the postage meter from the Springdale Post Office.
United States District Judge Frank W. Volk presided over the sentencing. The United States Postal Inspection Service (USPIS) and the Sheriff’s Departments of Greenbrier and Fayette counties investigated the case. Assistant United States Attorney Erik S. Goes handled the prosecution.
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. 5:20-cr-00064.
Follow us on Twitter: SDWVNews and USAttyStuart
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Gloversville Man Arrested on Drug and Firearms ChargesRead the Press Release
ALBANY, NEW YORK – Kent Tucker, age 23, of Gloversville, New York, was indicted yesterday on charges of possession with intent to distribute methamphetamine, possession of a firearm by a felon, possession of a stolen firearm, and possession of a firearm in furtherance of drug trafficking.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The indictment alleges that on August 21, 2020, Tucker possessed a Glock handgun stolen from a Gloversville firearms dealer, and possessed methamphetamine with the intent to distribute. The indictment also charges that Tucker possessed the handgun in furtherance of his drug trafficking activities. An earlier complaint filed on January 5, 2021 alleges that during the arrest, Tucker threw the stolen firearm from his person while being arrested.
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted on all charges, Tucker faces a maximum sentence of life in prison, a minimum of 5 years in prison, a fine of up to $5 million, and a term of supervised release of at least 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Tucker initially appeared Wednesday in Albany before United States Magistrate Judge Christian Hummel, and was ordered detained pending a trial.
This case is being investigated by the ATF and Gloversville Police Department, and prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
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/ag/project-guardian-memo-2019/download.
Four Bulloch County drug traffickers sentenced to federal prison after pleading guilty to conspiracyRead the Press Release
STATESBORO, GA: Four people have been sentenced to federal prison after pleading guilty to operating a methamphetamine distribution ring throughout Bulloch County.
The four defendants were indicted in January 2020, and three of them pled guilty to Conspiracy to Possess with Intent to Distribute 50 Grams or More of a Substance Containing Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall sentenced the defendants to prison terms, including:
- Clifton Pittman, 51, of Statesboro, sentenced to 240 months in prison, followed by five years of supervised release, and fined $1,500;
- Hope Mitchell, 45, of Statesboro, sentenced to 162 months in prison, followed by five years of supervised release, and fined $1,500;
- Clarence Johnson, 56, of Statesboro, sentenced to 97 months in prison, followed by five years of supervised release, and fined $1,500; and,
- Joy Leigh Horton, 36, of Metter, Ga., who pled guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, was sentenced to 50 months in prison, followed by three years of supervised release, and fined $1,500.
There is no parole in the federal system.
“This successful operation represents the best of law enforcement working together with citizens to remove bad elements from the community,” said U.S. Attorney Christine. “When nearby residents voiced concerns about suspicious activities at Johnson’s residence, officers responded – and shut off a pipeline pouring poison into Statesboro.”
The investigation began in after residents in 2016 complained about late-night traffic at Johnson’s home, where Pittman and Mitchell also resided. After members of the Bulloch County Sheriff’s Office Crime Suppression Team saw evidence of suspected drug activity, they served a search warrant at the residence and seized kilos of methamphetamine and paraphernalia for distribution.
As described in court documents and testimony, the four members of the conspiracy admitted regularly transporting large amounts of methamphetamine into Bulloch County from an Atlanta supplier. The drugs then were sold to local distributors to resell in the Statesboro area.
“The sentencing of these defendants is a shining example of U.S. Drug Enforcement Administration’s effort to confront, engage and eliminate drug distribution networks,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the collaborative effort between DEA and its law enforcement partners, these defendants will spend well-deserved time in prison.”
“Georgians deserve to live in a safe and drug-free environment. Citizens can take an active role in assisting law enforcement by providing valuable tips, as demonstrated by this case,” said Georgia Bureau of Investigation Director Vic Reynolds. “We will continue to work diligently with all of our partners, including citizens, to investigate and dismantle drug trafficking organizations that threaten the safety of our communities.”
The case was investigated by the DEA, the GBI, and the Bulloch County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and Organized Crime Drug Enforcement Task Force Coordinator Marcela C. Mateo.
Fort Gibson Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joshua Wade Frazier, age 39, of Fort Gibson, Oklahoma entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that on or about May 3, 2020, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charges arose from a joint investigation by the Fort Gibson Police Department and the Drug Enforcement Administration.
The Honorable Amanda G. Maxwell, U.S. Magistrate Judge out of the United States District Court for the Western District of Oklahoma, temporarily assigned to the Eastern District of Oklahoma, presided over the hearing and accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Conway represented the United States.
Former Owner of Seafood Processor Sentenced to Prison for Tax EvasionRead the Press Release
A Rhode Island man was sentenced to three years in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Aaron L. Weisman for the District of Rhode Island, and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation.
According to court documents, for more than ten years, Billie R. Schofield attempted to evade his federal income taxes. Schofield partly owned and worked for Northern Pelagic LLC, a seafood processing business located in New Bedford, Massachusetts. Despite earning hundreds of thousands of dollars in income, Schofield failed to pay taxes owed and, beginning in 2009, stopped filing income tax returns. Between 2008 and 2018, Schofield obstructed IRS efforts to assess and collect his taxes by filing fraudulent forms, advancing frivolous tax arguments, creating and using a nominee entity and bank account, negotiating income checks to cash, and creating and submitting fraudulent checks to the IRS in an attempt to extinguish his tax liabilities. Including penalties and interest, Schofield caused a tax loss of more than $350,000 to the United States.
In addition to a term of imprisonment, U.S. District Judge William E. Smith sentenced Schofield to three years of supervised release, a $5,000 fine, and ordered him to pay $364,200.22 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weisman commended special agents of IRS-CI, who investigated the case, and Trial Attorney Christopher P. O’Donnell of the Tax Division and Assistant U.S. Attorney Sandra Hebert, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former Owner of New Bedford Seafood Processing Plant Sentenced for Tax EvasionRead the Press Release
PROVIDENCE - A Rhode Island man was sentenced to three years in prison today for tax evasion, announced U.S. Attorney Aaron L. Weisman, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation, and William Kalb, Special Agent in Charge of Treasury Inspector General for Tax Administration, North East Field Division.
According to court documents, for more than ten years, Billie R. Schofield attempted to evade his federal income taxes. Schofield partly owned and worked for Northern Pelagic LLC, a seafood processing business located in New Bedford, Massachusetts. Despite earning hundreds of thousands of dollars in income, Schofield failed to pay taxes owed and, beginning in 2009, stopped filing income tax returns. Between 2008 and 2018, Schofield obstructed IRS efforts to assess and collect his taxes by filing fraudulent forms, advancing frivolous tax arguments, creating and using a nominee entity and bank account, negotiating income checks to cash, and creating and submitting fraudulent checks to the IRS in an attempt to extinguish his tax liabilities. Including penalties and interest, Schofield caused a tax loss of more than $350,000 to the United States.
In addition to a term of imprisonment, U.S. District Court Judge William E. Smith sentenced Schofield to three years of supervised release, a $5,000 fine, and ordered him to pay $364,200.22 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weisman commended special agents of IRS-CI and Treasury Inspector General for Tax Administration, who investigated the case, and Assistant U.S. Attorney Sandra Hebert and Trial Attorney Christopher P. O’Donnell of the Tax Division who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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Former Hamtramck, Michigan Police Officer Pleads Guilty to Federal Civil Rights Charge for Excessive Use of ForceRead the Press Release
Former Hamtramck police office Ryan McInerney, 44, pleaded guilty today in federal court in the Eastern District of Michigan to using excessive force against a civilian arrestee and violating the arrestee’s civil rights.
As a result of the assault, the victim, identified in court documents only as D.M., suffered broken facial bones and lacerations requiring stitches, among other injuries.
At the plea hearing, the defendant admitted that on the night of June 22, 2014, while he was on duty as a Hamtramck Police Department (HPD) officer, he initiated a traffic stop on D.M. After D.M. stopped his car, the defendant approached the driver’s side door and ordered D.M. to put his hands up. D.M. complied. Regardless, and without justification, the defendant pistol whipped D.M. several times in the face, using his service firearm, through the open window of D.M.’s car door. D.M. did not present a danger to the defendant, and there was no lawful reason for the pistol-whipping. The strikes caused D.M. to suffer broken facial bones, among other injuries.
The defendant further admitted that he intentionally memorialized a false account of this incident in an official HPD use of force form in order to cover up his excessive use of force against D.M. and to impede any further investigation of this incident. The defendant also admitted that, later that same night during a different arrest, he pistol-whipped a second civilian, identified as J.M., also without justification, breaking J.M.’s teeth.
“Officers are supposed to serve as role model for upholding the law,” said Assistant Attorney General for the Civil Rights Division, Eric Dreiband. “It is disheartening to hear of a police officer taking such actions. The Justice Department works hard to ensure that officers who take the law into their own hands see their day in court.”
“Most police officers honorably serve and uphold their mission to protect the citizens of Michigan, but this is a rare example of an officer who has fallen far below his duty,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “Officer McInerney abused the power of his badge by violating the civil rights of two Michigan citizens, and for that he deserves federal prison time.”
“Police officers take an oath to protect, serve, and uphold the law. When an officer betrays that oath by violating a person’s civil rights, the FBI will make it a priority to hold the officer accountable,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “Ryan McInerney’s actions were a betrayal of the trust his community placed in him and are not reflective of the honorable way in which the men and women of the Hamtramck Police Department work to keep their community safe.”
McInerney will be sentenced on April 19, 2021. If the court accepts the plea agreement, McInerney faces a maximum sentence of 36 months in prison.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
Former Federal Agent and Others Indicted in South FloridaRead the Press Release
Miami, Fl. – A South Florida federal grand jury indicted a former federal agent and three other Miami-Dade residents for their alleged roles in an operation that involved illegal Oxycodone distribution, federal witness tampering, and obstruction of justice.
The indictment charges Alberico Ahias Crespo, 46, a former Special Agent with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), with conspiring to traffic oxycodone, tamper with witnesses, and obstruct justice and with substantive counts of witness tampering. During the time of the alleged crimes, Crespo worked as part of the South Florida Health Care Fraud Strike Force, made up of interagency teams of federal investigators and prosecutors focused on combating health care fraud and health care-related narcotics trafficking in Southern Florida.
Also charged in the indictment are Jorge Diaz Gutierrez, 66, Yandre Trujillo Hernandez, 41 and Anais Lorenzo, 32. Diaz Gutierrez, identified in the indictment as a patient recruiter, is charged with drug trafficking, witness tampering, and obstruction of justice crimes. Hernandez Trujillo and Lorenzo face drug trafficking charges.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Derrick L. Franklin, Special Agent in Charge, HHS-OIG, Special Investigations Branch, made the announcement.
Crespo and Diaz Gutierrez were initially charged for their conduct by criminal complaint filed on July 22, 2020. See case number 20-mj-03211. According to the criminal complaint affidavit, the illegal Oxycodone distribution system involved patients, pharmacies, and medical clinics. Patients were recruited and sent to medical clinics to obtain Oxycodone prescriptions that they did not need. Once the patients obtained the prescriptions, they would give them to the recruiter in exchange for money. Recruiters would fill the prescriptions at certain pharmacies and sell the Oxycodone pills (at a mark-up) to third party street dealers.
Also according to the criminal complaint affidavit, Crespo used his position as an HHS-OIG Special Agent working on health care fraud cases to protect the Oxycodone operation by monitoring Strike Force investigations involving the operation, accessing and disclosing sensitive law enforcement information to Diaz Gutierrez, a patient recruiter, updating Diaz Gutierrez on the progress of health care fraud investigations, and coaching Diaz Gutierrez on how to lie to investigators and tamper with evidence.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG, Special Investigations Branch. Assistant United States Attorneys Sean T. McLaughlin and Christopher Clark are prosecuting this case.
Indictments and criminal complaints are accusations that contain allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find the indictment and related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20005.
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Former Enforcer of Boston Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
BOSTON – The former Enforcer of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced yesterday on racketeering charges.
Matthew Palacios, a/k/a “King Nene,” 26, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 33 months in prison and three years of supervised release. In September 2020, Palacios pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. As Enforcer, Palacios was responsible for ensuring discipline, meting out punishment to members for violating the rules of the gang and organizing violence against rival gang members and those believed to be cooperating with law enforcement. The Devon Street Kings, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. During the investigation, various meetings were covertly recorded in which Palacios and members of the Devon Street Kings discussed the business of the racketeering enterprise. Palacios was present during meetings where members were beaten and violence against rival gangs was discussed and decided upon.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Palacios is the 11th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Florida Medical Doctor Pleads Guilty to Conspiring to Falsify Clinical Trial DataRead the Press Release
A Florida medical doctor pleaded guilty to conspiring to falsify clinical trial data regarding an asthma medication, the Department of Justice announced today.
Dr. Yvelice Villaman Bencosme, 64, of Miami, Florida, pleaded guilty in U.S. District Court for the Southern District of Florida today to one count of conspiracy to commit wire fraud. Bencosme was a licensed medical doctor who served as the primary investigator for clinical trials purportedly conducted at a medical clinic called Unlimited Medical Research (Unlimited Medical) in Miami. In pleading guilty, Bencosme admitted that from approximately 2013 to 2016, she participated in a scheme to defraud an unnamed pharmaceutical company by fabricating the data and participation of subjects in a clinical trial at Unlimited Medical. The clinical trial was designed to investigate the safety and efficacy of an asthma medication in children between the ages of four and 11. Bencosme admitted that she falsified medical records to make it appear that pediatric subjects arrived for scheduled visits at Unlimited Medical, took study drugs as required, and received checks as payment for site visits.
“Clinical trials are critical to ensuring the safety and effectiveness of new drugs. Falsifying that data can endanger consumers,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to work hand-in-hand with the FDA to investigate and prosecute fraudsters who put personal profit before public health.”
“When those charged with investigating the efficacy of new drugs manipulate the data for personal profit, they violate the public’s trust and pose serious threats to our collective health and safety,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Such selfish and irresponsible behavior is criminal and will be prosecuted.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials. Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review,” said Special Agent in Charge Justin C. Fielder of the Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those who deny the public their right to safe and effective medicines.”
Bencosme pleaded guilty before U.S. District Court Judge Beth Bloom. When sentenced, Bencosme faces a maximum penalty of 20 years in prison. Bencosme is the second defendant to plead guilty in this matter. Lisett Raventos, a former study coordinator at Unlimited Medical, pleaded guilty to a conspiracy charge in November 2020. Two other defendants were charged in connection with the scheme, and they are presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorneys Joshua Rothman and Kara M. Traster of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.
Florida Medical Doctor Pleads Guilty to Conspiring to Falsify Clinical Trial DataRead the Press Release
Miami, Fl. -- A Florida medical doctor pleaded guilty today in Miami federal court to conspiring to falsify clinical trial data relating to an asthma medication.
Yvelice Villaman Bencosme, 64, of Miami, Florida, was a licensed medical doctor who served as the primary investigator for clinical trials purportedly conducted at a medical clinic called Unlimited Medical Research (Unlimited Medical) in Miami. In pleading guilty, Bencosme admitted that from approximately 2013 to 2016, she participated in a scheme to defraud a pharmaceutical company by fabricating the data and participation of subjects in a clinical trial at Unlimited Medical. The clinical trial was designed to investigate the safety and efficacy of an asthma medication in children between the ages of four and 11. Bencosme admitted that she falsified medical records to make it appear that pediatric subjects arrived for scheduled visits at Unlimited Medical, took study drugs as required, and received checks as payment for site visits.
“When those charged with investigating the efficacy of new drugs manipulate the data for personal profit, they violate the public’s trust and pose serious threats to our collective health and safety,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Such selfish and irresponsible behavior is criminal and will be prosecuted.”
“Clinical trials are critical to ensuring the safety and effectiveness of new drugs. Falsifying that data can endanger consumers,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to work hand-in-hand with the FDA to investigate and prosecute fraudsters who put personal profit before public health.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials. Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review,” said Special Agent in Charge Justin C. Fielder of the Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those who deny the public their right to safe and effective medicines.”
Bencosme pleaded guilty before U.S. District Court Judge Beth Bloom. Bencosme faces a maximum penalty of 20 years in prison. Bencosme is the second defendant to plead guilty in this matter. Lisett Raventos, a former study coordinator at Unlimited Medical Research, pleaded guilty to a conspiracy charge in November 2020. Two other defendants were charged in connection with the scheme, and they are presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorneys Joshua Rothman and Kara M. Traster of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.
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Federal Jury Convicts Gang Member of Gun CrimeRead the Press Release
An Arlington gang member has been convicted at trial of felon in possession of a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following around two hours of deliberation, a Fort Worth federal jury returned a guilty verdict against 25-year-old Jeremy Devonte White, aka “Worm,” Thursday afternoon.
According to evidence presented at trial, on November 26, 2019, Mr. White, a known member of the Trill Fam street gang, was riding in the passenger side of a fellow gang member’s vehicle when Arlington police attempted a traffic stop. When the vehicle reached a residential neighborhood, Mr. White jumped out and fled with a backpack, which he then ditched in a resident’s yard.
Inside the backpack were two loaded handguns, including one with a 33-round, high capacity magazine. Mr. White was subsequently identified and apprehended.
Mr. White, who was convicted in 2015 of three incidents of felony evading arrest, now faces up to ten years in federal prison on the firearms charge. Sentencing has been set for April 16.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Arlington Police Department’s Gang and Gun Crimes Units conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Andrew Briggs tried the case. U.S. District Judge Reed O’Connor presided over the trial, which incorporated extensive safety protocols, including social distancing of the attorneys, witnesses, and jurors, as well as face masks and face shields.
Federal Hearings Held This Week in Separate Project Guardian CasesRead the Press Release
MACON, Ga. – Federal hearings were conducted this week in two separate Project Guardian cases, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
On Wednesday, January 6, in U.S. District Court, Athens, U.S. District Judge C. Ashley Royal sentenced Preston Davis, 37, of Athens, to serve 37 months in prison, to be followed by three years of supervised release, after Davis pleaded guilty to one count possession of a firearm by a convicted felon. There is no parole in the federal system. Jonathan Kunz, 44, of Valdosta, pleaded guilty to one count possession of a firearm by a prohibited person before U.S. District Judge Louis Sands in U.S. District Court, Albany. Kunz faces a maximum ten years imprisonment, three years of supervised release and a $250,000 fine. Sentencing has not been scheduled. There is no parole in the federal system.
“Felons who get caught with guns will face the possibility of federal prison without parole,” said Acting U.S. Attorney Leary. “I want to thank our local, state and federal law enforcement partners for their continued crime reduction efforts across the Middle District of Georgia.”
On May 16, 2019, officers executed a search warrant at a residence in Athens. Davis was located in the residence, and officers found two semi-automatic pistols, as well as ammunition, a magazine with ammunition, drugs and drug paraphernalia. Davis, who was previously convicted of a felony, admitted that he knew he was a prohibited person when he possessed the firearms.
On August 20, 2018, officers legally searched Kunz’s residence in Valdosta and found a double barrel 12-gauge shotgun and a gym bag containing a large quantity of ammunition and a magazine. Kunz was prohibited from possessing firearms and ammunition because of a prior conviction for distribution of methamphetamine in the Superior Court of Lowndes County, Georgia.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The Davis investigation was conducted by the Athens-Clarke County Police Department, the Northeast Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Kimberly S. Easterling prosecuted the case for the Government. The Kunz investigation was conducted by the Lowndes County Sheriff’s Office, FBI and ATF. Assistant U.S. Attorney Leah McEwen is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Ex oficial de policía de Hamtramck, Michigan se declara culpable por el cargo Derechos Civiles Federal por uso excesivo de fuerzaRead the Press Release
El ex oficial policía de Hamtramck, Ryan McInerney, 44, se declaró culpable hoy en la corte federal del Distrito de Michigan por usar fuerza excesiva en contra de un civil arrestado y violación de los Derechos Civiles del arrestado.
Como resultado del asalto, la víctima, identificado en los documentos de corte sólo como D.M., sufrió de fracturas de huesos faciales y laceraciones que requirieron de puntos, entre otras heridas.
En la audiencia de declaración, el acusado admitió que la noche del 22 de junio de 2014, mientras se encontraba en servicio como oficial del Departamento de Policía de Hamtramck (HPD), inició un control de tránsito a D.M. Después D.M. detuvo su auto, el acusado se acercó a la puerta lateral del conductor y le ordenó a D.M. que subiera las manos. D.M. cumplió. Sin importar, y sin justificación, la pistola del acusado golpeó a D.M varias veces en la cara, usando su arma de servicio, por medio de la ventana abierta del auto de D.M. D.M. no representó un peligro para del acusado y no hubo razón legítima para los golpes con la pistola. Los golpes provocaron que D.M. tuviera huesos fracturados en la cara, entre otras heridas.
El acusado también admitió que memorizó intencionalmente anotó un cargo falso para este incidente en un HPD oficial del uso de fuerza para cubrir su uso de fuerza excesivo contra D.M. y para impedir cualquier investigación futura de este incidente. El acusado también admitió que, más tarde esa misma noche durante un arresto diferente, golpeó con su pistola a un segundo civil identificado como J.M., también sin justificación, y le rompió los dientes a J.M..
“Los oficiales están supuestos a servir como ejemplos para sostener la ley”, dijo el Fiscal General Interino para la División de Derechos Civiles, Eric Dreiband. “Es desalentador escuchar a un oficial de policía hablar sobre dichas acciones. El Departamento de Justicia trabaja fuerte para asegurar que los oficiales que toman la ley en sus propias manos verán sus días en la corte”.
“La mayoría de los oficiales de policía sirven honorablemente y cumplen su misión para proteger a los ciudadanos de Michigan, pero es un ejemplo raro de un oficial que cayó por debajo de su obligación”, dijo el Fiscal de EE.UU., Matthew Schneider, del Distrito del Este de Michigan. “El Oficial McInerney abusó del poder de su placa al violar los Derechos Civiles de dos ciudadanos de Michigan y por ello merece pasar tiempo en la prisión federal”.
“Los oficiales de policía hacen juramento para proteger, servir y respetar la ley. Cuando un oficial traiciona el juramento al violar los Derechos Civiles de una persona, el FBI dará prioridad a hacer responsable al oficial”, dijo Timothy Waters, Agente Especial a Cargo del FBI en Michigan. “Los actos de Ryan McInerney fueron una traición a la confianza que puso su comunidad en él y no reflejan de forma honorable en la que los hombres y mujeres del Departamento de Policía de Hamtramck trabaja para mantener la seguridad de la comunidad”.
McInerney será sentenciado el 19 de abril de 2021. Si la corte acepta el acuerdo de súplica, McInerney enfrenta una sentencia máxima de 36 meses en prisión.
Este caso está siendo investigado por el FBI y será condenado por el Fiscal Asistente de EE.UU. Frances Carlson del Distrito Este deMichigan y el Abogado Litigante Risa Berkower de la División de Derechos Civiles del Departamento de Justicia.
Eastern District of Louisiana (EDLA) U.S. Attorney Peter G. Strasser Recognizes Law Enforcement Appreciation Day (LEAD)Read the Press Release
NEW ORLEANS— U.S. Attorney Peter G. Strasser recognizes the service and sacrifice of federal, state, and local police officers on the occasion of Law Enforcement Appreciation Day (LEAD), which is being observed on January 9, 2021. Law Enforcement Appreciation Day was established in 2015.
U.S. Attorney Strasser said, “During Law Enforcement Appreciation Day, I encourage the nation to celebrate the selfless contributions from our brave men and women in law enforcement from around the country, and especially in the Eastern District of Louisiana, by recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe. As the United States Attorney for the Eastern District of Louisiana, I want to acknowledge the work performed by federal, state, and local law enforcement and the choice made by them to protect and serve with full knowledge that they could one day find themselves facing dangerous situations. We want them and their families to know they have our unwavering support and appreciation. I encourage us as a community to take some time to reflect and honor the fallen and also continue to support those who continue to dutifully serve the public.”
Deutsche Bank Agrees to Pay over $130 Million to Resolve Foreign Corrupt Practices Act and Fraud CaseRead the Press Release
Deutsche Bank Aktiengesellschaft (Deutsche Bank or the Company) has agreed to pay more than $130 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a separate investigation into a commodities fraud scheme.
The resolution includes criminal penalties of $85,186,206, criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and $43,329,622 to be paid to the U.S. Securities & Exchange Commission in a coordinated resolution.
Deutsche Bank is a multi-national financial services company headquartered in Frankfurt, Germany. The charges arise out of a scheme to conceal corrupt payments and bribes made to third-party intermediaries by falsely recording them on Deutsche Bank’s books and records, as well as related internal accounting control violations, and a separate scheme to engage in fraudulent and manipulative commodities trading practices involving publicly-traded precious metals futures contracts.
Deutsche Bank entered into a three-year deferred prosecution agreement (DPA) with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and with the U.S. Attorney’s Office for the Eastern District of New York. The criminal information was filed today in the Eastern District of New York charging Deutsche Bank with one count of conspiracy to violate the books and records and internal accounting controls provisions of the FCPA and one count of conspiracy to commit wire fraud affecting a financial institution in relation to the commodities conduct.
“Deutsche Bank engaged in a seven-year course of conduct, during which it failed to implement a system of internal accounting controls regarding the use of company funds and falsified its books and records to conceal corrupt and improper payments,” said Acting Deputy Assistant Attorney General Robert Zink of the Justice Department’s Criminal Division. “Separately, Deutsche Bank traders on three continents sought to manipulate our public financial markets through fraud for five years. This resolution exemplifies the department’s commitment to help ensure that publicly traded companies devise and implement appropriate and proper systems of internal accounting controls and maintain accurate and truthful corporate documentation. It also stands as an example of the department’s efforts to police the public U.S. markets so that all may continue to trust, and rely upon, the integrity of our public financial systems.”
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” stated Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York. “This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
“The U.S. Postal Inspection Service takes pride in investigating complex fraud and corruption cases that impact American investors,” said Inspector in Charge Delany De Léon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group. “This type of deceptive activity can cause immeasurable economic losses to competitive markets around the world. The combined efforts of our partners at the FBI and Department of Justice helped to bring today’s significant action which illustrates our efforts to protect the United States and the international marketplace.”
The FCPA Case
According to admissions and court documents, between 2009 and 2016, Deutsche Bank, acting through its employees and agents, including managing directors and high-level regional executives, knowingly and willfully conspired to maintain false books, records, and accounts to conceal, among other things, payments to a business development consultant (BDC) who was acting as a proxy for a foreign official and payments to a BDC that were actually bribes paid to a decisionmaker for a client in order to obtain lucrative business for the bank. In some instances, Deutsche Bank made payments to BDCs that were not supported by invoices or evidence of any services provided. In other cases, Deutsche Bank employees created or helped BDC’s create false justifications for payments.
In relation to a Saudi BDC, Deutsche Bank admitted that its employees conspired to contract with a company owned by the wife of a client decisionmaker to facilitate bribe payments of over $1 million to the decisionmaker. Deutsche Bank approved the BDC relationship despite Deutsche Bank employees knowing about the relationship between the Saudi BDC and the decisionmaker, and approved the corrupt payments despite Deutsche Bank employees openly discussing the need to pay the Saudi BDC in order to incentivize her husband to continue to do business with Deutsche Bank. In requesting approval of one payment, Deutsche Bank employees cautioned that the “client and [the Saudi BDC] are intimately linked and . . . any cessation of payment to the [the Saudi BDC] will certainly prompt a significant outflow of [business]” from the client.
Deutsche Bank also contracted with an Abu Dhabi BDC to obtain a lucrative transaction, despite Deutsche Bank employees knowing that the Abu Dhabi BDC lacked qualifications as a BDC, other than his family relationship with the client decisionmaker, and that the Abu Dhabi BDC was in fact acting as proxy for the client decisionmaker. Deutsche Bank paid the Abu Dhabi BDC over $3 million without invoices.
By agreeing to misrepresent the purpose of payments to BDCs and falsely characterizing payments to others as payments to BDCs, Deutsche Bank employees conspired to falsify Deutsche Bank’s books, records, and accounts, in violation of the FCPA. Additionally, Deutsche Bank employees knowingly and willfully conspired to fail to implement internal accounting controls in violation of the FCPA by, among other things, failing to conduct meaningful due diligence regarding BDCs, making payments to certain BDCs who were not under contract with Deutsche Bank at the time, and making payments to certain BDCs without invoices or adequate documentation of the services purportedly performed.
Deutsche Bank will pay a total criminal penalty of $79,561,206 in relation to the FCPA scheme. In a related matter with the U.S. Securities & Exchange Commission, Deutsche Bank will also pay $43,329,622 in disgorgement and prejudgment interest.
The Commodities Fraud Case
According to admissions and court documents, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders on the New York Mercantile Exchange Inc. and Commodity Exchange Inc., which are commodities exchanges operated by the CME Group Inc. On numerous occasions, traders on Deutsche Bank’s precious metals desk in New York, Singapore, and London placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants through injecting false and misleading information concerning the existence of genuine supply and demand for precious metals futures contracts.
On Sept. 25, 2020, a Chicago federal jury found two former Deutsche Bank precious metals traders, James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, guilty of wire fraud affecting a financial institution for their respective roles in the commodities scheme. A third former Deutsche Bank trader, David Liew, 35, of Singapore, pleaded guilty on June 1, 2017, to conspiracy to commit wire fraud affecting a financial institution and spoofing. A fourth former Deutsche Bank trader, Edward Bases, 58, of New Canaan, Connecticut, was charged in a third superseding indictment on Nov. 12, 2020, and awaits trial on fraud and conspiracy charges. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deutsche Bank has agreed to pay a total criminal amount of $7,530,218 in relation to the commodities scheme. This amount includes criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and a criminal penalty of $5,625,000, which will be fully credited against Deutsche Bank’s payment of a civil monetary penalty of $30 million to the U.S. Commodity Futures Trading Commission in January 2018 in connection with substantially the same commodities conduct.
The department reached this resolution with Deutsche Bank based on a number of factors, including the Company’s failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included corrupt payments, willful violations of the FCPA accounting provisions, and commodities trading violations in three countries. Deutsche Bank received full credit for its cooperation with the department’s investigations and for its significant remediation. Penalties associated with both the FCPA and wire fraud conspiracies reflect a discount of 25 percent off the middle of the otherwise-applicable U.S. Sentencing Guidelines fine range, to account for Deutsche Bank’s 2015 resolution in connection with its manipulation of the London Interbank Offered Rate.
The FCPA investigation is being conducted by the U.S. Postal Inspection Service, and is being prosecuted by the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Katherine Nielsen, Elizabeth S. Boison and Nikhila Raj, and Assistant U.S. Attorneys Alixandra Smith and Whitman Knapp. The Justice Department’s Office of International Affairs provided assistance in this case.
The commodities case is being investigated by the FBI’s New York Field Office, and is being prosecuted by the Fraud Section. Deputy Chief Brian R. Young, Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Fraud Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Individuals who believe that they may be a victim in the commodities case should visit the Fraud Section’s Victim Witness website for more information.
Deutsche Bank Agrees to Pay over $130 Million to Resolve Foreign Corrupt Practices Act and Fraud CaseRead the Press Release
BROOKLYN, NY – Deutsche Bank Aktiengesellschaft (Deutsche Bank or the Company) has agreed to pay more than $130 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a separate investigation into a commodities fraud scheme.
The resolution includes criminal penalties of $85,186,206, criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and $43,329,622 to be paid to the U.S. Securities & Exchange Commission in a coordinated resolution.
Deutsche Bank is a multi-national financial services company headquartered in Frankfurt, Germany. The charges arise out of a scheme to conceal corrupt payments and bribes made to third-party intermediaries by falsely recording them on Deutsche Bank’s books and records, as well as related internal accounting control violations, and a separate scheme to engage in fraudulent and manipulative commodities trading practices involving publicly-traded precious metals futures contracts.
Earlier today, in federal court in Brooklyn, Deutsche Bank entered into a three-year deferred prosecution agreement (DPA) with United States Attorney’s Office for the Eastern District of New York and the Department of Justice Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS). The criminal information was filed in U.S. District Court for the Eastern District of New York charging Deutsche Bank with one count of conspiracy to violate the books and records and internal accounting controls provisions of the FCPA and one count of conspiracy to commit wire fraud affecting a financial institution in relation to the commodities conduct. The case is assigned to U.S. District Judge Rachel P. Kovner.
Seth DuCharme, Acting United States Attorney for the Eastern District of New York, Robert Zink, Acting Deputy Assistant Attorney General of the Justice Department’s Criminal Division, and Delany De Léon-Colón, Inspector-in-Charge, United States Postal Inspection Service (USPIS), made the announcement.
"Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” stated Acting United States Attorney DuCharme. “This Office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
“Deutsche Bank engaged in a seven-year course of conduct, during which it failed to implement a system of internal accounting controls regarding the use of company funds and falsified its books and records to conceal corrupt and improper payments,” stated Acting Deputy Assistant Attorney General Zink. “Separately, Deutsche Bank traders on three continents sought to manipulate our public financial markets through fraud for five years. This resolution exemplifies the department’s commitment to help ensure that publicly traded companies devise and implement appropriate and proper systems of internal accounting controls and maintain accurate and truthful corporate documentation. It also stands as an example of the department’s efforts to police the public U.S. markets so that all may continue to trust, and rely upon, the integrity of our public financial systems.”
“The U.S. Postal Inspection Service takes pride in investigating complex fraud and corruption cases that impact American investors,” stated USPIS Inspector-in-Charge De Léon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group. “This type of deceptive activity can cause immeasurable economic losses to competitive markets around the world. The combined efforts of our partners at the FBI and Department of Justice helped to bring today’s significant action which illustrates our efforts to protect the United States and the international marketplace.”
The FCPA Case
According to admissions and court documents, between 2009 and 2016, Deutsche Bank, acting through its employees and agents, including managing directors and high-level regional executives, knowingly and willfully conspired to maintain false books, records, and accounts to conceal, among other things, payments to a business development consultant (BDC) who was acting as a proxy for a foreign official and payments to a BDC that were actually bribes paid to a decisionmaker for a client in order to obtain lucrative business for the bank. In some instances, Deutsche Bank made payments to BDCs that were not supported by invoices or evidence of any services provided. In other cases, Deutsche Bank employees created or helped BDC’s create false justifications for payments.
In relation to a Saudi BDC, Deutsche Bank admitted that its employees conspired to contract with a company owned by the wife of a client decision maker to facilitate bribe payments of over $1 million to the decision maker. Deutsche Bank approved the BDC relationship despite Deutsche Bank employees knowing about the relationship between the Saudi BDC and the decision maker, and approved the corrupt payments despite Deutsche Bank employees openly discussing the need to pay the Saudi BDC in order to incentivize her husband to continue to do business with Deutsche Bank. In requesting approval of one payment, Deutsche Bank employees cautioned that the “client and [the Saudi BDC] are intimately linked and . . . any cessation of payment to the [the Saudi BDC] will certainly prompt a significant outflow of [business]” from the client.
Deutsche Bank also contracted with an Abu Dhabi BDC to obtain a lucrative transaction, despite Deutsche Bank employees knowing that the Abu Dhabi BDC lacked qualifications as a BDC, other than his family relationship with the client decision maker, and that the Abu Dhabi BDC was in fact acting as proxy for the client decision maker. Deutsche Bank paid the Abu Dhabi BDC over $3 million without invoices.
By agreeing to misrepresent the purpose of payments to BDCs and falsely characterizing payments to others as payments to BDCs, Deutsche Bank employees conspired to falsify Deutsche Bank’s books, records, and accounts, in violation of the FCPA. Additionally, Deutsche Bank employees knowingly and willfully conspired to fail to implement internal accounting controls in violation of the FCPA by, among other things, failing to conduct meaningful due diligence regarding BDCs, making payments to certain BDCs who were not under contract with Deutsche Bank at the time, and making payments to certain BDCs without invoices or adequate documentation of the services purportedly performed.
Deutsche Bank will pay a total criminal penalty of $79,561,206 in relation to the FCPA scheme. In a related matter with the U.S. Securities & Exchange Commission, Deutsche Bank will also pay $43,329,622 in disgorgement and prejudgment interest.
The Commodities Fraud Case
According to admissions and court documents, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders on the New York Mercantile Exchange Inc. and Commodity Exchange Inc., which are commodities exchanges operated by the CME Group Inc. On numerous occasions, traders on Deutsche Bank’s precious metals desk in New York, Singapore, and London placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants through injecting false and misleading information concerning the existence of genuine supply and demand for precious metals futures contracts.
On Sept. 25, 2020, a Chicago federal jury found two former Deutsche Bank precious metals traders, James Vorley, of the United Kingdom, and Cedric Chanu, of France and the United Arab Emirates, guilty of wire fraud affecting a financial institution for their respective roles in the commodities scheme. A third former Deutsche Bank trader, David Liew, of Singapore, pleaded guilty on June 1, 2017, to conspiracy to commit wire fraud affecting a financial institution and spoofing. A fourth former Deutsche Bank trader, Edward Bases, of Connecticut, was charged in a third superseding indictment on Nov. 12, 2020, and awaits trial on fraud and conspiracy charges. An indictment is an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deutsche Bank has agreed to pay a total criminal amount of $7,530,218 in relation to the commodities scheme. This amount includes criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and a criminal penalty of $5,625,000, which will be fully credited against Deutsche Bank’s payment of a civil monetary penalty of $30 million to the U.S. Commodity Futures Trading Commission in January 2018 in connection with substantially the same commodities conduct.
The department reached this resolution with Deutsche Bank based on a number of factors, including the Company’s failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included corrupt payments, willful violations of the FCPA accounting provisions, and commodities trading violations in three countries. Deutsche Bank received full credit for its cooperation with the department’s investigations and for its significant remediation. Penalties associated with both the FCPA and wire fraud conspiracies reflect a discount of 25 percent off the middle of the otherwise-applicable U.S. Sentencing Guidelines fine range, to account for Deutsche Bank’s 2015 resolution in connection with its manipulation of the London Interbank Offered Rate.
The FCPA investigation is being conducted by the U.S. Postal Inspection Service and is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section. Assistant U.S. Attorneys Alixandra Smith and Whitman Knapp of the Eastern District of New York and Trial Attorneys Katherine Nielsen, Elizabeth S. Boison and Nikhila Raj are prosecuting the case. The Justice Department’s Office of International Affairs provided assistance in this case.
The commodities case is being investigated by the FBI’s New York Field Office and is being handled by the Fraud Section. Deputy Chief Brian R. Young, Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Fraud Section are prosecuting the case.
E.D.N.Y. Docket No. 20-CR-584 (RPK)
Davidson Nail Salon Owner Convicted of Forced LaborRead the Press Release
CHARLOTTE, N.C. – The Justice Department and the U.S. Attorney’s Office announced today that after a five-day trial, a federal jury in Charlotte found Thuy Tien Luong, 37, of Charlotte, guilty of forced labor after finding that Luong compelled the labor of one of her nail technicians at a nail salon she owned and operated in Davidson, North Carolina.
“More than 150 years after the United States ratified the Thirteenth Amendment to the Constitution and abolished slavery and involuntary servitude, human trafficking remains a problem in our cities, our towns, and our communities,” said Assistant Attorney General for the Civil Rights Division Eric Dreiband. “Like slave masters of old, human traffickers are adept at targeting the most vulnerable members of our society and using coercive and violent tactics to intimidate and compel their services. We must and will confront and defeat this vile conduct, like this defendant’s, and the Department of Justice will continue its vigorous and systematic efforts to hold human traffickers accountable, bring justice to their victims, and prevent them from harming others.”
“Through the infliction of mental and physical abuse, Luong despicably preyed upon the victim’s hardships and personal vulnerabilities for her own selfish financial gains,” said U.S. Attorney Andrew Murray. “Forced labor schemes are an assault on human dignity and have no place in modern society. My office remains committed to combatting all forms of human trafficking and prosecuting perpetrators to the fullest extent of the law.”
“Traffickers treat human beings as commodities, and this case is no exception. They use force, fraud or coercion to prey on people’s vulnerabilities,” said Homeland Security Investigations (HSI) Charlotte Special Agent in Charge Ronnie Martinez. “HSI special agents will continue to focus their efforts on eradicating this heinous crime; no one should be subject to human trafficking.”
“Davidson police officers and investigators took immediate action when this horrific crime was reported by the brave victim,” said Chief Penny L. Dunn of the Davidson Police Department. “We are extremely grateful for the quick response of Special Agents of Homeland Security and for the pursuit of justice for victims by the U.S. Attorney’s Office. The case is an example of how domestic trafficking can and does happen anywhere in our nation.”
Evidence presented at trial established that Luong compelled the victim’s labor from October 2016 to June 2018 through a variety of coercive means. Luong physically assaulted the victim on several occasions, including pulling her hair out, stabbing her with nail salon tools, and pouring acetone on her head. Luong also threatened to ruin the victim’s reputation with her family by threatening to tell them information about the victim which would negatively impact the victim’s relationship with her family. Luong falsely claimed that the victim owed her a debt of $180,000, and falsely alleged that the victim’s poor work performance caused Luong to lose this amount of money. Luong even executed a debt contract with the victim in the amount of $180,000, and threatened to send the victim to jail if she did not repay all of it. In reality, the victim was a good employee. Luong often treated the victim in a humiliating and demeaning fashion, all while having her work 10 hours a day for 6 to 7 days a week. The totality of Luong’s coercive scheme caused the victim to fear Luong and forced her to continue working for Luong until a particularly violent assault led to the victim reporting Luong to the Davidson Police Department and to Luong’s subsequent arrest in June 2018.
Following entry of the guilty verdict, Luong was remanded into federal custody. A sentencing date has not been scheduled at this time, but it will occur before District Court Judge Kenneth D. Bell. The defendant faces a maximum sentence of 20 years in prison and must pay mandatory restitution to the victim.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations with the invaluable assistance of the Davidson Police Department and the Charlotte-Mecklenburg Police Department. Assistant United States Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
January is National Slavery and Human Trafficking Prevention Month
In recognition of National Slavery and Human Trafficking Prevention Month, U.S. Attorney Murray highlights the continued efforts of the U.S. Attorney’s Office to combat human trafficking, raise awareness, and prosecute perpetrators.
In addition to Luong’s conviction of forced labor charges, in 2020, the U.S. Attorney’s Office’s anti-trafficking efforts resulted in significant prosecutions.
- In October, a federal grand jury indicted Dajuan Akeem Blair, 25, of Cornelius, N.C, on two counts of sex trafficking of two minors and child pornography charges.
- Simone Cherelle McIllwain, 29, of Matthews, N.C. was also indicted in October with sex trafficking of on a minor. McIllwain allegedly trafficked the minor while on federal supervised release for another federal sex trafficking conviction in Florida.
- On October 22, 2020, Xavier Boston, 31, of Charlotte, was sentenced to 40 years in federal prison. Boston was convicted by a jury of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise.
- In August 2020, Timothy Johnson, 25, of Charlotte, pleaded guilty to conspiracy to commit human trafficking.
The charges against McIllwain and Blair are pending. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. A sentencing date for Johnson has not been set yet.
“Human trafficking is one of the most abhorrent crimes that can be inflicted upon another human being. Whether forced into unpaid labor or coerced into commercial sex acts, trafficking victims are reduced to commodities, their worth determined by how much a trafficker profits from them. In most cases, victims also endure great physical violence and mental abuse in the hands of the perpetrators,” said U.S. Attorney Murray. “Since launching our initiative to combat human trafficking, the U.S. Attorney’s Office has shed a light on this blight to modern society. We remain committed to educating the public and we will continue to work closely with our law enforcement partners to investigate and prosecute traffickers who exploit their victims for personal gain. While we have had many notable successes, our efforts to eradicate human trafficking in the Western District continue.”
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If you believe you are a victim or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Court orders defendants to stop selling Vitamin D products as treatments for COVID-19 and other diseasesRead the Press Release
WASHINGTON: A federal court entered a permanent injunction barring a Georgia company from selling unapproved vitamin D products touted as treatments for COVID-19, the Department of Justice announced today.
In a civil complaint and accompanying court papers filed Nov. 23, 2020, in U.S. District Court for the Southern District of Georgia, the United States alleges that Matthew Ryncarz and his Alpharetta, Ga., based companies, Fusion Health and Vitality LLC dba Pharm Origins, and Fusion Ionz LLC dba Pharm Origins, sold and distributed products the defendants claimed would cure, mitigate, or treat COVID-19 and other diseases. According to the government’s complaint, the defendants sold several products that purportedly contained vitamin D3, such as “Immune Shot,” “Immune Boost,” and “Core,” through websites maintained by the defendants. The complaint alleges that none of the products were generally recognized as safe and effective by qualified experts for any of the uses promoted by the defendants.
“The Department of Justice will not allow individuals to take advantage of consumers during a public health emergency by making unproven claims about unapproved drugs to profit from public panic,” said Deputy Assistant Attorney General Daniel J. Feith. “We will continue to work closely with the Food and Drug Administration to halt such conduct.”
“In challenging times, we must be especially vigilant on behalf of the most vulnerable,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Our office and our law enforcement partners take very seriously our responsibility to help protect consumers, and we will identify and shut down such attempted financial and emotional exploitation.”
“Americans expect and deserve medical treatments that have been scientifically proven to be safe and effective. Making claims that unproven drugs can cure or prevent diseases, including COVID-19, places consumers’ health at risk,” said U.S. Food and Drug Administration (FDA) Chief Counsel Stacy Amin. “We remain committed to pursuing and taking swift action against those who attempt to subvert the regulatory functions of the FDA by repeatedly disregarding the law and distributing unapproved products.”
According to the complaint, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by introducing unapproved new drugs into interstate commerce. The complaint alleges that the defendants’ disease-related treatment claims lacked support from any well-controlled clinical studies or other credible scientific evidence. The complaint also asserts that such claims made in absence of any clinical data caused the products to be misbranded under the FDCA. Ryncarz and his company, Fusion Health, pled guilty on Sept. 29, 2020, in a separate but related criminal case in which Ryncarz admitted that labeling for his “Immune Shot” product falsely claimed it would lower the risk of contracting COVID-19 and that the product was misbranded under the FDCA.
The civil enforcement action against Ryncarz and Fusion Health is being prosecuted by Trial Attorney Claude Scott of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Jonathan A. Porter of the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from FDA Associate Chief Counsel for Enforcement Jennifer Argabright.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Georgia, visit its website at https://www.justice.gov/usao-sdga. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected]. For more information about the Justice Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus.
Court Orders Georgia Defendants to Stop Selling Vitamin D Products as Treatments for Covid-19 and Other DiseasesRead the Press Release
A federal court entered a permanent injunction barring a Georgia company from selling unapproved vitamin D products touted as treatments for COVID-19, the Department of Justice announced today.
In a civil complaint and accompanying court papers filed Nov. 23, 2020, in U.S. District Court for the Southern District of Georgia, the United States alleges that Matthew Ryncarz and his Alpharetta, Georgia, based companies, Fusion Health and Vitality LLC dba Pharm Origins, and Fusion Ionz LLC dba Pharm Origins, sold and distributed products the defendants claimed would cure, mitigate, or treat COVID-19 and other diseases. According to the government’s complaint, the defendants sold several products that purportedly contained vitamin D3, such as “Immune Shot,” “Immune Boost,” and “Core,” through websites maintained by the defendants. The complaint alleges that none of the products were generally recognized as safe and effective by qualified experts for any of the uses promoted by the defendants.
“The Department of Justice will not allow individuals to take advantage of consumers during a public health emergency by making unproven claims about unapproved drugs to profit from public panic,” said Deputy Assistant Attorney General Daniel J. Feith. “We will continue to work closely with the Food and Drug Administration to halt such conduct.”
“In challenging times, we must be especially vigilant on behalf of the most vulnerable,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “Our office and our law enforcement partners take very seriously our responsibility to help protect consumers, and we will identify and shut down such attempted financial and emotional exploitation.”
“Americans expect and deserve medical treatments that have been scientifically proven to be safe and effective. Making claims that unproven drugs can cure or prevent diseases, including COVID-19, places consumers’ health at risk,” said U.S. Food and Drug Administration (FDA) Chief Counsel Stacy Amin. “We remain committed to pursuing and taking swift action against those who attempt to subvert the regulatory functions of the FDA by repeatedly disregarding the law and distributing unapproved products.”
According to the complaint, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by introducing unapproved new drugs into interstate commerce. The complaint alleges that the defendants’ disease-related treatment claims lacked support from any well-controlled clinical studies or other credible scientific evidence. The complaint also asserts that such claims made in absence of any clinical data caused the products to be misbranded under the FDCA. Ryncarz and his company, Fusion Health, pleaded guilty on Sept. 29, 2020, in a separate but related criminal case in which Ryncarz admitted that labeling for his “Immune Shot” product falsely claimed it would lower the risk of contracting COVID-19 and that the product was misbranded under the FDCA.
The civil enforcement action against Ryncarz and Fusion Health is being prosecuted by Trial Attorney Claude Scott of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Jonathan A. Porter of the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from FDA Associate Chief Counsel for Enforcement Jennifer Argabright.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Georgia, visit its website at https://www.justice.gov/usao-sdga. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected]. For more information about the Justice Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus.
Connecticut Electrical Contractor Agrees to Pay $3.2 Million to Resolve Criminal and Civil InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DUCCI ELECTRICAL CONTRACTORS, INC., of Farmington, will pay more than $3.2 million and implement internal reforms to resolve a criminal and civil investigation into alleged fraud committed by the company in connection with public construction contracts in Connecticut that were principally funded with U.S. Department of Transportation (“USDOT”) financial assistance.
The USDOT’s Disadvantaged Business Enterprise (“DBE”) program is intended to provide small businesses owned by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded transportation contracts. When a DBE participates in a contract funded with USDOT financial assistance, only the value of the work actually performed by the DBE counts toward a DBE goal. A DBE must be performing a commercially useful function on the contract, which means that it is actually responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing and supervising the work involved. A DBE performs a commercially useful function if it negotiates the price, quantity and quality of the materials to be used on the contract, pays for the materials and, when applicable, installs those materials. A DBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract or project through which funds are passed in order to obtain the appearance of DBE participation.
In April 2007, the State of Connecticut Department of Transportation (“ConnDOT”) selected Ducci Electrical Contractors, Inc. (“Ducci”) to be the prime contractor for a construction contract valued at $79,234,692 to replace 11 miles of catenary, which is overhead line wire used to transmit electrical energy to trains. The contract, which was funded with USDOT financial assistance, required Ducci to comply with DBE regulations and designated a DBE goal of 13 percent. In its bid documents, Ducci proposed to subcontract to a particular DBE (“Company #1).
In March 2012, Ducci received a public construction subcontract valued at $6,699,999.60 relating to the Bus Rapid Transit system along a 9.4-mile corridor between New Britain and downtown Hartford. The contract, also funded with USDOT financial assistance, designated a DBE goal of approximately 12 percent. In its bid documents, Ducci proposed to subcontract $852,500 in work to Company #1.
The government contends that Ducci knew that Company #1 would not be performing a commercially useful function as a DBE on either contract. Ducci terminated certain Ducci employees and immediately provided those employees to work for Company #1 on the 2007 contract, and controlled the employees that would work for Company #1 on the 2012 contract. For both contracts, Ducci supervised Company #1 employees and provided Company #1 with the hours worked by those employees for billing and payroll purposes, provided Company #1 with Ducci-owned equipment, and negotiated for and ordered materials Company #1 purchased for the project. Although Company #1 never performed a commercially useful function for either contract, Ducci submitted to ConnDOT and other entities periodic DBE update forms and certified payroll and payment verifications for work Ducci claimed Company #1 had performed that would qualify for DBE credit.
In a non-prosecution agreement with the government, Ducci admits that Company #1 was not performing certain commercially useful functions on the 2007 and 2012 contracts, and that it caused false statements to be submitted to the United States and ConnDOT, thereby depriving other DBE companies of that or other work. Ducci represents in the non-prosecution agreement that it has undertaken various remediation measures to ensure its compliance with the DBE requirements on current and future federally funded construction projects.
As part of a civil settlement agreement with the government, Ducci has agreed to pay damages of $3,233,593.64, plus interest, to resolve civil False Claims Act allegations, and it has entered into a monitoring agreement with the Federal Transit Administration.
“The financial penalty and monitoring agreement imposed on Ducci, combined with remediation measures the company has pledged to undertake, should ensure that Ducci will lawfully comply with the requirements of all publicly-funded contracts going forward,” said U.S. Attorney Durham. “Companies that lie to gain an unfair advantage over their competitors, thus preventing true disadvantaged businesses of opportunities to perform work on taxpayer-funded construction projects, will be held accountable.”
“Disadvantaged Business Enterprise (DBE) fraud diminishes the integrity of DBE programs by exploiting efforts to ensure a level playing field on which firms can compete fairly for federal contracts,” said Douglas Shoemaker, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) Northeast Region. “Our agents will continue to work with our law enforcement and prosecutorial partners to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-funded transit programs in the State of Connecticut and throughout the United States.”
This investigation was conducted by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. This matter was prosecuted by Assistant U.S. Attorneys Michael Gustafson, Sarah Gruber and Nancy Gifford.
Cartersville businessman indicted for filing false tax returns and health care fraudRead the Press Release
ROME, Ga. - Mohammed Ajmal was arraigned today, charged with three counts of making and subscribing a false tax return, two counts of health care fraud, and two counts of false statements related to health care matters. Co-defendant Faisal Shahzad, who was arraigned in December 2020, was charged with making a false statement to a federal agent.
“Ajmal was a successful businessman who attempted to game the system by allegedly filing false tax returns to conceal kickbacks,” said Acting U.S. Attorney Bobby L. Christine. “He also allegedly submitted false income statements to obtain free healthcare for his children, while his brother, Shahzad, is alleged to have lied to a federal agent to help conceal the crimes.”
“It doesn’t matter if your earnings are legal or illegal; income is income,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Everyone has equal responsibility for reporting their earnings to the Internal Revenue Service and we are dedicated to enforcing the law.”
“This was a GBI investigation that began as an illegal commercial gambling case and led authorities to discover a plethora of other crimes. The partnerships the GBI has with local, federal, and other state agencies are important to ensure all possible crimes are uncovered, investigated, and prosecuted successfully,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Christine, the charges, and other information presented in court: Through various corporations Mohammed Ajmal owned several gas stations and convenience stores in the Cartersville, Georgia, area. Many of the stores contained coin operated amusement machines, known as “COAMs”. COAMs are regulated by the Georgia Lottery Corporation.
Between 2013 and 2015, the Georgia Lottery Corporation issued administrative regulations under Georgia law which resulted Ajmal receiving less revenue from the COAMs. Ajmal then contacted the company holding the master license for the COAMs in his properties, and allegedly conveyed that if it wanted to continue operating COAMs on Ajmal’s properties, it would have to pay additional money, or kickbacks, to Ajmal. To disguise the kickback payments, Ajmal allegedly told the company to write checks to Ajmal’s relatives, including his brother, Shahzad. Ajmal then allegedly used the monies for his own benefit, including to build a new home. From 2015 through 2018, the amount of the kickbacks totaled $2,292,847. Ajmal allegedly did not report any of this income on his tax returns for 2015 through 2017; as a result, Ajmal allegedly paid less federal tax than he actually owed for all three years.
As part of this investigation, on June 14, 2019, an IRS-CI agent interviewed Faisal Shahzad at his workplace. During this interview, Shahzad allegedly falsely told the agent that checks made out by the company to him were for work he performed for the company.
In addition, Ajmal allegedly defrauded and made false statements to PeachCare for Kids, which is a publicly subsidized health insurance program for children in low- and moderate-income Georgia families. To enroll a child in PeachCare for Kids, parents must show that the family’s income is below certain limits. Because Ajmal’s income was well over the eligibility limit, Ajmal’s children were not eligible for PeachCare for Kids.
In order to enroll his children anyway, Ajmal allegedly understated his income by faxing false income verification forms and supporting documentation to the program. The income verification forms allegedly did not report any self-employment income for Ajmal or his wife, but instead listed fictitious employment and attached copies of purported paychecks which were never cashed. While the children were enrolled in the PeachCare for Kids program, Ajmal and his wife obtained medical and dental care and prescription drugs for them at public expense.
Mohammed Ajmal, 47, of Cartersville, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Ajmal, and Faisal Shahzad, 30, also of Cartersville, Georgia, were indicted by a federal grand jury on December 8, 2020. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by Internal Revenue Service Criminal Investigation and the Georgia Bureau of Investigation, with valuable assistance provided by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Cartersville Police Department, Bartow County Sheriff’s Office, and Bartow-Cartersville Drug Task Force.
Assistant U.S. Attorneys Alana Black and Michael Herskowitz are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bloomfield Man Sentenced to 70 Months in Federal Prison for Distributing NarcoticsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that McCLENDON JONES, 40, of Bloomfield, was sentenced today by U.S. District Judge Kari A. Dooley to 70 months of imprisonment, followed by four years of supervised release, for distributing narcotics.
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, on August 8, 2019, Jones sped away from investigators who were conducting a traffic stop in Hartford and his car sideswiped a city transit bus. He eventually lost control of his vehicle and crashed into a fence on Mahl Avenue. After Jones was apprehended, a search of the vehicle revealed approximately 47 grams of crack cocaine, 150 bags of packaged heroin, and a quantity of marijuana. A subsequent search of Jones’ residence revealed $5,880 in cash and quantities of heroin, cocaine, crack, PCP, and marijuana.
Jones has been detained since his arrest. On July 31, 2020, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”).
Jones’ criminal history includes felony convictions for narcotics distribution, firearm possession and assault offenses.
This matter was investigated by the FBI’s Northern Connecticut Gang Task Force, Drug Enforcement Administration and Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Billings man sentenced to prison for strangling woman on Crow Indian ReservationRead the Press Release
BILLINGS – A Billings man who admitted strangling a woman during an argument at a residence on the Crow Indian Reservation was sentenced today to 46 months in prison and three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Leslie Charles Hogan, Jr., 37, pleaded guilty on July 21, 2020 to assault of a dating partner by strangulation and to domestic assault by an habitual offender.
U.S. District Judge Susan P. Watters presided. Hogan was detained.
The prosecution said in court records that on May 17, 2017, the victim and Hogan, who were in a relationship, were at the victim's residence when the couple got into a verbal argument. The fight turned physical. Hogan pushed the victim up against a wall and strangled her until she was almost unconscious. Another person in the residence struck and pushed Hogan to stop the strangulation. The victim sought medical treatment.
Hogan has two prior convictions for domestic assault.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
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Beckley Man Enters Guilty Plea to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Isaiah Lamont Shaw, 21, of Beckley, pled guilty to distributing more than 5 grams of methamphetamine. Shaw was charged as a result of a joint investigation conducted by the Federal Bureau of Investigation and the Beckley/Raleigh County Drug and Violent Crime Unit.
“Shaw was peddling meth that was between 92% and 98% pure,” said United States Attorney Mike Stuart. “Meth is taking a serious toll on West Virginia communities. I commend the collaborative work of law enforcement in this case that put another meth dealer out of business.”
Shaw admitted that on October 30, 2019, he sold more than five grams of methamphetamine to a person that was working with law enforcement as a confidential informant. Shaw admitted to meeting the informant near a shopping center near Mount Hope in Raleigh County to sell the drugs. As part of the plea agreement, Shaw also admitted to selling methamphetamine to the same confidential informant on four other occasions. Each transaction occurred within the Southern District of West Virginia. The drugs sold by defendant were tested by the DEA Drug Lab which established the methamphetamine was between 92% and 98% pure.
Shaw faces not less than five years and up to forty years in federal prison when he is sentenced on April 26, 2021.
The Federal Bureau of Investigation and the Beckley/Raleigh County Drug and Violent Crime Unit which is comprised of officers from the Raleigh County Sheriff’s Department, the Beckley Police Department, and the West Virginia State Police, conducted the investigation.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Frank W. Volk.
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. 5:20-cr-00124.
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Atlanta Man Sentenced to 30 Years in Federal Prison for Trafficking Methamphetamine in North FloridaRead the Press Release
PANAMA CITY, FLORIDA – Gerry F. Carter, 34, of Atlanta, Georgia, was sentenced yesterday to a total of 30 years in federal prison after pleading guilty to drug trafficking and weapons charges stemming from an organization that distributed methamphetamine in North Florida. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“Drug traffickers have one thing in common: They are more concerned with personal profit than the lives that they ruin. We will continue to support the efforts our law enforcement partners in any way we can as we work together to investigate and prosecute these criminals bringing drugs into North Florida,” U.S. Attorney Keefe said.
Carter was the Atlanta-based supplier of drugs distributed by a methamphetamine-trafficking organization operating in North Florida. Carter provided the organization with at least 120 kilograms of methamphetamine between August 2018 and February 2019. He also possessed several handguns, which he carried to protect his drug money. Carter was the subject of a DEA sting operation conducted on July 18, 2019, when Carter attempted to pick up $21,000 from a person in Tallahassee, Florida, to be used for the purchase of 3 kilograms of methamphetamine. Unknown to Carter, the “purchaser” was an undercover agent.
“Due to the outstanding cooperation and coordination by our collective law enforcement and prosecutorial agencies, this individual no longer poses a significant risk of distributing dangerous narcotics throughout Northern Florida communities,” said DEA Miami Field Division Special Agent in Charge Keith Weis.
Carter pled guilty to conspiracy to distribute 500 grams or more of a mixture containing methamphetamine, and possession of a firearm in furtherance of a drug-trafficking offense. Carter qualified for sentencing as a career offender because of convictions for two prior drug-trafficking offenses. He will serve 25 years on the conspiracy charge, followed by 5 years on the firearm charge. The Court also ordered 10 years of supervised release following the completion of Carter’s prison term.
This sentencing resulted from the collaborative work of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Highway Patrol, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Franklin County Sheriff’s Office, and the Leon County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney James A. McCain.
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 U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. CarterAlabama Man Charged with Possession of Eleven Molotov Cocktails Found Near Protest at U.S. CapitolRead the Press Release
WASHINGTON— Today, Acting U.S. Attorney Michael Sherwin for the District of Columbia announced charges against an Alabama man that include one count of unlawful possession of a destructive device, and one count of carrying a pistol without a license.
Lonnie Leroy Coffman, 70, of Falkville, Alabama, was arrested yesterday and charged in a criminal complaint filed in the U.S. District Court for the District of Columbia. Coffman remains in custody pending a detention hearing scheduled for Tuesday, January 12.
As alleged in the Complaint, on January 6, U.S. Capitol Police (USCP) officers responded to reports of possible explosive devices in the area around the United States Capitol. In the course of conducting a protective sweep of the area, officers observed the handle of what appeared to be a firearm on the front right passenger seat of a red pickup truck with Alabama tags. A law enforcement database check of the vehicle registration revealed that the vehicle was registered to Lonnie L. Coffman with a home address in Falkville, Alabama. USCP Bomb Squad members subsequently searched the vehicle and secured one black handgun, one M4 Carbine assault rifle along with rifle magazines loaded with ammunition, and components for the construction of eleven “Molotov Cocktails” in the form of mason jars filled with ignitable substances, rags, and lighters.
Later that evening, Coffman was stopped in the vicinity of his truck when he attempted to return to his vehicle. Coffman was subsequently searched and found to have on his person a 9mm Smith & Wesson handgun, a 22-caliber derringer style handgun, and two sets of vehicle keys that matched the truck. When asked, Coffman told officers that the mason jars contained melted Styrofoam and gasoline. ATF advised that the combination of melted Styrofoam and gasoline is an explosive mixture that has the effect of napalm because, when detonated, the substance causes the flammable liquid to better stick to objects that it hits.
Coffman is charged with one count of unlawful possession of a destructive device, which carries a maximum prison term of up to 10 years, and one count of carrying a pistol without a license under D.C. law, which carries a maximum prison term of up to 5 years.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by the Assistant U.S. Attorneys Jason B.A. McCullough and Michael Friedman of the District of Columbia United States Attorney’s Office, and Trial Attorney Taryn Meeks of the National Security Division of the Department of Justice. The case is being investigated by the U.S. Capitol Police Department with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and Federal Bureau of Investigation.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
7 January 2021
Wilmington Gang Member Receives 4 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Aaron Bell, 25, of New Hanover County, was sentenced on January 6, 2021, to 48 months imprisonment for: (1) Distribution of a quantity of heroin; and (2) possession of a firearm by a convicted felon.
The evidence presented in court and other information revealed that on August 8, 2019, the Wilmington Police Department conducted a controlled purchase of heroin from Bell in the area of Voltaire Place. On May 15, 2020, Bell was arrested on an outstanding warrant for pending state court charges. At the time of that arrest he was found in possession of a loaded handgun. Bell informed officers that he had the handgun because he was concerned that he was a target and going to be shot by a rival group. Bell was a felon and prohibited from possessing a firearm at the time of his arrest. The investigation further revealed that between October 2018 and August 2019, Bell distributed more than 65 grams of heroin. According to law enforcement, Bell was also a member of a violent gang.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation and the Wilmington Police Department investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00104-M-1.
West Hartford Man Sentenced to 7 Years in Prison for Trafficking Cocaine, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MANUEL SANTIAGO, also known as “Pete” and “Green-eyed Pete,” 51, last residing in West Hartford, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer to 84 months of imprisonment, followed by five years of supervised release, for trafficking cocaine, and for violating the conditions of his supervised release from a prior federal conviction.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in August 2019, the FBI’s Northern Connecticut Gang Task Force received information that Santiago was distributing half-kilogram quantities of cocaine. Investigators knew that Santiago had a history as a large-scale narcotics supplier and that he was on federal supervised release following his 2013 convictions for conspiracy to possess with intent to distribute five kilograms or more of cocaine, possession of a firearm by a convicted felon, and money laundering.
On August 14, 2019, investigators arranged a controlled purchase of a half-kilogram of cocaine from Santiago. Santiago was arrested at approximately 7:40 that evening after he arrived at a gas station parking lot in Hartford to complete the transaction. A search of Santiago’s vehicle revealed a ziplock bag containing approximately 514 grams of cocaine.
A subsequent search of Santiago’s residence revealed approximately four kilograms of cocaine.
Santiago has been detained since his arrest. On October 8, 2020, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Vivint Smart Homes Inc. to Pay $3.2 Million to Resolve Allegations of False Statements to Federally Insured BankRead the Press Release
WASHINGTON – Vivint Smart Home Inc. (Vivint), based in Provo, Utah, has agreed to pay the United States $3.2 million to resolve allegations under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) that Vivint employees made false statements to secure financing for customers’ purchases of Vivint’s home monitoring products, the Justice Department announced today. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes.
Vivint is a provider of smart home monitoring services and frequently obtains new customers through door-to-door sales by Vivint sales representatives. The United States contended that, from 2017 to 2020, certain Vivint sales representatives used their personal funds to cover the cost of initial financing payments on behalf of Vivint customers who sought financing to purchase Vivint’s products, while making false and misleading statements to the federally insured financial institution providing the financing that made it appear as if the borrowers had funded the initial payments.
“Making false statements about the creditworthiness of borrowers undermines the integrity of our banking system and puts at risk the taxpayer dollars that help to support it,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will pursue those who fail to provide truthful information needed by federally insured financial institutions to make appropriate lending decisions.”
“American business should be based on truthful disclosures, and false and misleading statements should never be part of dealings with federally insured financial institutions,” said U.S. Attorney John W. Huber for the District of Utah. “This resolution should send a strong message to corporations that using fraudulent tactics to secure consumer sales will not be tolerated.”
The allegations resolved by the settlement were initially provided to the United States in a declaration submitted under the Financial Institutions Anti-Fraud Enforcement Act, which provides for rewards to eligible declarants who provide information about potential FIRREA violations. The declarant’s share of the recovery in this matter has not yet been determined.
This matter was investigated by the U.S. Attorney’s Office for the District of Utah and the Civil Division’s Commercial Litigation Branch (Fraud Section). Investigative assistance was provided by the FBI.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.