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8 January 2021
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.
Follow us on Twitter: SDWVNews and USAttyStuart
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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.
Virginia Man Sentenced for Using Stolen Identity in Attempt to Secure Loan from Worcester Credit UnionRead the Press Release
BOSTON – A Virginia man was sentenced today in federal court in Worcester for making a false statement on a loan application and aggravated identity theft. At the time of the offense, he was on supervised release for a previous conviction.
Rashad Al-Terek Walker, 39, of Hampton, Va., was sentenced by U.S. District Court Judge Timothy S. Hillman to 32 months in prison and two years of supervised release. In September 2020, Walker pleaded guilty to one count of making a false statement on a loan application and one count of aggravated identity theft.
In November 2019, Walker attempted to obtain a loan using a stolen identity from a Worcester-area credit union. Walker provided employees of the credit union several fraudulent records, including a counterfeit license, employer pay record and utility bill. Employees of the credit union immediately reported the matter to law enforcement authorities, who responded to the credit union and arrested Walker.
Walker was previously convicted of bank fraud in U.S. District Court in the Eastern District of Virginia and was on supervised release for that offense when he committed the crimes in Worcester.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.
Utah man who trafficked meth from camper on Fort Peck Indian Reservation sentenced to 10 years in prisonRead the Press Release
GREAT FALLS — A Utah man who towed a camper to the Fort Peck Indian Reservation and trafficked methamphetamine in the community was sentenced today to 10 years in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Andrew Michael Gomez, 33, of Ogden, Utah, pleaded guilty on Sept. 14, 2020 to conspiracy to possess with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said that Gomez, and his co-defendant, Jeffrey Allen Dabb, 39, of Ogden, Utah, towed a camper from Utah and rented a vacant lot on the reservation. In August 2019, a Wolf Point Police officer received information about drug activity on property where the camper was parked. The officer obtained a tribal search warrant to enter the property and seize the camper. Gomez, Dabb, and another individual were in the camper. Dabb said that they were in the area to work in the North Dakota oil fields and denied there was anything illegal in the camper.
During a search of the camper, law enforcement found more than 6.5 ounces of meth, drug ledgers, electronic money transfer receipts showing money wires to individuals in Utah, a set of brass knuckles with a built-in knife, scales, baggies and other drug paraphernalia.
Gomez attempted to further the meth trafficking conspiracy while incarcerated on state charges by urging individuals to recover and sell the drugs, which he thought were still hidden in the camper.
Dabb was convicted in the case and sentenced to 51 months in prison.
Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the FBI, Fort Peck Law Enforcement Services, Wolf Point Police Department and Roosevelt County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Upshur County man sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Jason Benton Barcus, of Ellamore, West Virginia, was sentenced today to 87 months of incarceration for methamphetamine distribution, U.S. Attorney Bill Powell announced.
Barcus, age 41, pled guilty to one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine” in July 2020. Barcus admitted to distributing 50 grams or more of methamphetamine in March 2019 in Upshur County.Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
United States Attorney Marc Krickbaum Announces ResignationRead the Press Release
DES MOINES, Iowa – Marc Krickbaum, the United States Attorney for the Southern District of Iowa, announced he is resigning today. “Serving as United States Attorney has been the privilege of my professional life,” Mr. Krickbaum said. “I am grateful to the law enforcement and agencies we serve with, and to the people of the U.S. Attorney’s Office. They have done great things, and they have many more to come.”
Mr. Krickbaum has served as United States Attorney, the district’s chief federal prosecutor, since 2017, and before that worked for almost a decade as a career prosecutor in two United States Attorney’s Offices. During his tenure, the U.S. Attorney’s Office brought significant prosecutions against violent street gangs and others responsible for gun crime, targeted those who sexually exploit children, and obtained significant civil settlements against those who commit health care fraud and other fraud against the government.
U.S. Attorney's Office Statement on the Review of Facts and Evidence in October 18, 2020, Motorized Scooter IncidentRead the Press Release
The United States Attorney’s Office issues the following statement in reference to the Office’s review of the facts and evidence available regarding the incident that occurred in Providence on October 18, 2020, that seriously injured the operator of a motorized scooter:
“This office has reviewed all of the evidence, interviews, and statements collected and cooperatively shared by the Attorney General’s Office to determine if there is evidence of a federal criminal civil rights violation. The review determined that evidence did not constitute a federal criminal offense; and that there is insufficient evidence to obtain and sustain a federal conviction.”
The United States Attorney’s Office will have no further comment on this matter.
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U.S. Attorney Mike Stuart Issues Statement Regarding Violence at Nation's Capitol BuildingRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“The Rule of Law is paramount to the maintenance of freedom. The right to peaceful assembly and demonstration is a fundamental right, but that right does not extend to committing violence in the name of any cause or purpose. The violence at the Nation’s Capitol Building was reprehensible and counter to every value we share as Americans. My team is working with our counterparts in law enforcement and, as the facts dictate, are prepared to enforce the Rule of Law and the laws of these United States. I fully support and endorse the statement of Acting United States Attorney General Rosen regarding yesterday’s intolerable events. I want to commend the brave men and women of law enforcement for their selfless service yesterday and always. These men and women are incredible public servants in defense of our citizens, our communities and the Rule of Law.”
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.
- Follow us on Twitter: SDWVNews and USAttyStuart
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The United States Department of JusticeFOR IMMEDIATE RELEASE
WEDNESDAY, JANUARY 6, 2021
WWW.JUSTICE.GOV/NEWS
ACTING ATTORNEY GENERAL JEFFREY A. ROSEN REGARDING THE OVERRUNNING OF THE U.S. CAPITOL BUILDINGWASHINGTON - Acting Attorney General Jeffrey A. Rosen issued the following statement:
"The violence at our Nation’s Capitol Building is an intolerable attack on a fundamental institution of our democracy. From the outset, the Department of Justice has been working in close coordination with the Capitol Police and federal partners from the Interior Department, the Department of Homeland Security, and the National Guard, as well as the Metropolitan Police and other local authorities. Earlier this afternoon, the Department of Justice sent hundreds of federal law enforcement officers and agents from the FBI, ATF, and the U.S. Marshals Service to assist the Capitol Police in addressing this unacceptable situation, and we intend to enforce the laws of our land."
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U.S. Attorney Mike Hurst Announces His Departure from Department of JusticeRead the Press Release
Jackson, Miss. – Mike Hurst, United States Attorney for the Southern District of Mississippi, announced today that he has submitted his resignation to President Donald J. Trump and Acting Attorney General Jeffrey A. Rosen and will leave the Department of Justice on January 19, 2021.
“Serving as the Chief Federal Law Enforcement Officer for over half of our state has been the highest honor of my professional career. During my time as U.S. Attorney, I have tried to do everything within my power to make our neighborhoods safer, support our law enforcement, engage and empower our communities and citizens, protect victims, prevent and reduce crime, and uphold our constitutional rights. The secret to the success of this office is its people – hard-working, tenacious, and full of integrity, they are committed to seeing that justice is always done, every day. I wish them all the best in their continued service to our fellow man and to this noble work,” said U.S. Attorney Hurst.
“Mike Hurst is the ultimate public servant. He has routinely taken on tough fights in order to preserve the rule of law – because he believes in it. He has been a champion for the people of Mississippi, and we wish him well in his next adventure,” said Mississippi Governor Tate Reeves.
“Mike Hurst has served the people of Mississippi with honor and distinction as U.S. Attorney,” said United States Senator Roger Wicker. “He’s a talented lawyer and dedicated public servant. I wish him well in his next chapter.”
“Mike Hurst has served as the consummate U.S. Attorney, serving Mississippi and our nation extremely well. Like so many in our state, I am grateful for his achievements in the Southern District of Mississippi to prosecute crimes and to bring special focus on fighting human trafficking and illegal drug trafficking. I wish him and his family all the best as he leaves office,” said United States Senator Cindy Hyde-Smith.
“The Mississippi Sheriffs Association offers its gratitude to Mike Hurst for his service as United States Attorney for the Southern District of Mississippi. Since October 2017, Mike has faithfully served the State of Mississippi and supported Mississippi law enforcement officers. The Mississippi Sheriffs Association appreciates his service to Mississippi and the United States and wishes him the very best,” said Jasper County Sheriff Randy Johnson, President of the Mississippi Sheriffs Association.
“It is imperative the many levels of criminal justice to work as a team to be successful. Having worked with U.S. Attorney Mike Hurst for nearly 4 years, I have seen firsthand his passion to put swift, fair and just efforts into providing justice for victims. Mike is a law enforcement-minded person and he has always been there to stand on the front lines with Mississippi law enforcement. His criminal prosecution of the worst in Mississippi should be commended and our communities are safer because of his efforts. The men and women of law enforcement who combat evil in Mississippi send their sincerest best wishes to Mike and know the best for him is yet to come,” said Ridgeland Police Chief John Neal, President of the Mississippi Association of Chiefs of Police.
“As District Attorney of the 15th Judicial District, it is my pleasure to commend and thank Mike Hurst for a job well done during his tenure as U.S. Attorney for the Southern District of Mississippi. Mike began the Project EJECT program a few years ago, which targets the investigation and prosecution of violent crime in the Pine Belt area. Through this program, Mike and his prosecution team have created an effective collaboration between federal authorities and state and local agencies, and they have successfully brought many serious offenders to justice. This contribution has assisted my office immeasurably in efforts to ensure public safety in my district, and I appreciate his leadership in this pursuit,” said Fifteenth Circuit District Attorney Hal Kittrell, former President of the Mississippi Prosecutors Association.
CRIMINAL
Southern District of Mississippi Ranked First in Nation for Indictments by Medium-Size Offices in FY19; Most Federal Indictments, Federal Defendants Ever Prosecuted in One Year in Mississippi History
In Fiscal Year 2016, the U.S. Attorney’s Office for the Southern District of Mississippi indicted just 188 cases. U.S. Attorney Hurst was determined to change that. Knowing this office, and the capacity it had to do even more, Hurst increased prosecutions by Fiscal Year 2019 to 522 indictments, a 178% increase and almost tripling the number from just three years before. Those 522 indictments encompassed 641 federal defendants – the most ever in the history of the state of Mississippi. And this number places the Southern District of Mississippi as the number one Medium-size district in the nation for indictments and prosecutions.
Shortly after becoming United States Attorney, Hurst was named President of the Greater Jackson Law Enforcement Officers Association in February 2018. Through this group, U.S. Attorney Hurst brought federal, state and local law enforcement together in the greater Jackson metro area to hear from a variety of speakers and increase their coordination and collaboration in their fight again crime and in keeping citizens safe.
Violent Crime
Project EJECT
With violent crime on the rise in Mississippi and throughout the nation, U.S. Attorney Hurst launched Project EJECT in Jackson in December 2017. Project EJECT, the U.S. Attorney’s Office’s initiative under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian programs, was a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. In its first year in Jackson, overall violent crime fell by 7%, including a 50% reduction in carjackings alone, resulting in 108 fewer victims of violent crime in our capital city in 2018.
Recognizing the success of Project EJECT, and the need for more affirmative enforcement of our civil laws, Attorney General Jeff Sessions allocated five brand new Assistant U.S. Attorney positions to the Southern District of Mississippi, more than many other, larger districts throughout the nation. Four of these positions were to combat violent crime, and the other position was to increase our affirmative civil enforcement work.
Because of this ground-breaking, collaborative and innovative work to reduce violent crime, Project EJECT was recognized and awarded in December 2018 as one of only two Outstanding Overall Partnership/Task Forces by the U.S. Department of Justice among all 94 U.S. Attorney’s Offices throughout the entire country.
In February 2019, Project EJECT was expanded into Hattiesburg, Natchez, Meridian and Moss Point, with Gulfport joining the list in September 2020. EJECT stands for “Empower Justice Expel Crime Together.” For the first time in its history, the U.S. Attorney’s Office assigned a full-time federal prosecutor to each of these areas with responsibility to carry out Project EJECT and reduce violent crime. Project EJECT brought together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Likewise, 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.
At the end of U.S. Attorney Hurst’s second year in office, the U.S. Attorney’s Office for the Southern District of Mississippi ended Fiscal Year 2019 ranked as the number one medium-size office in the nation for number of indictments (outpacing the other 24 medium-size U.S. Attorney’s Offices). That is an outstanding improvement in just three years, where the Southern District was ranked 19 out of 25 medium-sized districts in Fiscal Year 2016. Since FY16, the U.S. Attorney’s Office has almost tripled the number of federal criminal indictments throughout the Southern District of Mississippi, charging more defendants with federal crimes than has ever been charged before in the history of the State of Mississippi.
Operation Triple Beam
In June 2018, U.S. Attorney Hurst teamed up with the U.S. Marshals Service’s Gulf Coast Regional Fugitive Task Force, along with other federal, state and local law enforcement agencies, to conduct a six-week-long violence reduction initiative in the Southern District of Mississippi known as "Operation Triple Beam," resulting in the arrests of 270 individuals for various crimes, including approximately 90 gang members, and the seizure of 50 firearms, illegal narcotics, and approximately $26,000 in cash. In addition, approximately 300 registered sex offenders were individually checked for compliance, resulting in approximately 20 arrests for sex offender registry violations. While the Marshals Service has conducted these types of initiatives elsewhere around the country, this is the first time Operation Triple Beam has been conducted throughout an entire U.S. Attorney’s district and is believed to be one of the most successful Operation Triple Beams of this scale that the Marshals have ever accomplished since the program began in 2010.
Domestic Violence and Operation Pheonecia
In light of the COVID-19 pandemic, U.S. Attorney Hurst recognized a rising trend of increased domestic violence throughout the country. In response to these national statistics, coupled with anecdotes from local law enforcement and nonprofit organizations, U.S. Attorney Hurst launched a new initiative entitled “Operation Pheonecia,” in honor of a local victim of domestic violence, Pheonecia Ratliff of Canton, Mississippi, to combat this growing threat. Under this initiative, and by working with federal, state and local law enforcement and nonprofit entities, the U.S. Attorney’s Office has made the investigation and prosecution of federal domestic violence crimes a priority. In addition, “Operation Pheonecia” involves a campaign to put domestic abusers on notice of their prohibition to possessing firearms, train law enforcement on how to investigate federal domestic violence crimes, provide education for local judges as to the impact of their orders on potential federal criminal prosecutions, and bring awareness to local bar associations and the public on how to report domestic violence crimes to and work with federal authorities, with the overarching goal to reduce domestic violence, save lives and assist victims.
Opioids
On the cutting edge of prosecutions and investigations, the U.S. Attorney’s Office for the Southern District of Mississippi announced in October 2017 that it had indicted a Chinese national for conspiracy to distribute large quantities of fentanyl, fentanyl analogues and other deadly chemicals in the United States, marking the first manufacturer and distributor of fentanyl and other opiate substances to be indicted in the history of the United States while being designated as a Consolidated Priority Organization Target (CPOT). CPOT designations are those who have "command and control" elements of the most prolific international drug trafficking and money laundering organizations and are considered by DEA to be some of the most significant drug trafficking threats in the world.
Immigration
Astronomical Increase (1,482%) in Immigration Prosecutions in Three Years
In U.S. Attorney Hurst’s first full year, Fiscal Year 2018, the U.S. Attorney’s Office increased its number of immigration prosecutions by 536% from just two years prior (11 in FY16 v. 70 in FY18). However, the following year, Fiscal Year 2019, the immigration prosecutions increased another 149% from the just prior year (70 in FY18 v. 174 in FY19). This represents a 1,482% increase in just three years (from FY16 to FY19).
Largest Single-State Worksite Enforcement Operation in Nation’s History
In August 2019, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in partnership with the U.S. Attorney’s Office for the Southern District of Mississippi, conducted the largest single-state worksite enforcement action in our nation’s history, executing multiple federal criminal and administrative search warrants at seven locations across the State of Mississippi, which resulted in the collection of evidence of federal crimes and the arrest of 680 illegal aliens. This was the most humane enforcement operation ever conducted by ICE, processing all 680 illegal aliens within an approximate 24 hour period and releasing approximately 300 aliens on humanitarian grounds and physically returning these illegal aliens, with ankle monitors, to the place where they were originally encountered.
As a result of this operation, 119 illegal aliens have been prosecuted by the U.S. Attorney’s Office for federal crimes ranging from misusing social security numbers of American citizens, to fraudulently claiming to be a U.S. Citizen, to falsifying immigration documents, to reentering the United States after having previously been deported or removed.
Just one year later, in August 2020, the U.S. Attorney’s Office indicted Managers, Supervisors, and Human Resource Personnel, charging them with Harboring Illegal Aliens, Assisting in Representing False Citizenship and Obtaining False Social Security Cards, Lying to Law Enforcement, Wire Fraud, and Aggravated Identity Theft. These prosecutions continue this office’s long, successful history of prosecuting employers for violating our nation’s immigration laws. [link]
Human Trafficking
Recognizing the growing threat and issue that is human trafficking, U.S. Attorney Hurst partnered with U.S. Attorney Chad Lamar of the Northern District of Mississippi, and Mississippi Department of Public Safety Commissioner Marshal Fisher to establish and launch a statewide, umbrella organization to tackle all facets of this crime – the Mississippi Human Trafficking Council. Led by AUSAs from both districts in Mississippi, as well as the Mississippi Human Trafficking Coordinator, the Council’s mission is to prevent trafficking, protect victims, and prosecute criminals through a partnership model using a victim-centered, collaborative, and multi-disciplinary model. The Council consists of a Steering Committee, five subcommittees to address various issues concerning human trafficking, and small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney.
In the Southern District of Mississippi, U.S. Attorney Hurst established five (5) Human Trafficking Task Forces covering every county throughout the district and led by an Assistant U.S. Attorney.
Fraud and Public Corruption
Largest Healthcare Fraud Scheme in Mississippi History
For the last three years, the U.S. Attorney’s Office has been prosecuting business owners, doctors, nurses, pharmacists, and many others relating to the largest healthcare fraud scheme in Mississippi history, which has come to be known as the "Compounding Pharmacy" or “pain cream scheme” case in Hattiesburg. This case involves close to $1 billion in fraud by defendants using pharmacies, doctors and unnecessary compounding prescriptions to drive up prices charged to TRICARE, the healthcare system for the military, and other insurance companies. The massive pain cream scheme, which began in Mississippi, has defrauded TRICARE and other insurance companies more than $1.5 billion nationwide, with a third of that fraud attributed to participants in Mississippi. To date, at least 25 have been charged in the scheme in Mississippi alone, and twenty have been convicted at trial or pled guilty, with others awaiting trial. In addition to prosecuting these criminals, the office has assisted in recovering millions of dollars and ill-gotten gains and assets through the forfeiture process. [link]
Largest Ponzi Scheme in Mississippi History
In 2018, the U.S. Attorney’s Office prosecuted what is believed to have been the largest Ponzi scheme in Mississippi history. Arthur Lamar Adams was sentenced to almost 20 years in federal prison for wire fraud involving a large, multi-state Ponzi scheme involving more than $164 million dollars stolen from more than 320 investors located in at least 14 different states spanning a number of years.
Public Corruption
The office continued its storied tradition of bringing corrupt public officials to justice, whether businessmen bribing state officials, or spouses of public officials paying kickbacks, or state officials rigging bids for money or law enforcement officials committing extortion or wire fraud schemes, or correctional officers accepting bribes.
Civil Rights
Steeped in a hallowed history of effective enforcement of our nation’s civil rights laws, the U.S. Attorney’s Office continued prosecuting those who would violate the civil rights of others, including law enforcement and correctional officers using excessive force [link] [link] [link], as well as those committing hate crimes such as crossburnings. [link] [link]
CIVIL
False Claim Act Fraud
In November 2017, one of the largest healthcare fraud settlements involving a nursing home in the history of the Southern District of Mississippi was resolved when a nursing home facility, its related companies, and their owners agreed to pay $1.25 million to resolve allegations of false claims to Medicare and the Mississippi Medicaid program for providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Lumberton, Mississippi, from late 2005 through 2012. [link]
In December 2017, in what is believed to be the largest False Claims Act healthcare settlement in Mississippi history, Region 8 Mental Health Services agreed to pay the United States in excess of $6.93 million under the False Claims Act to resolve allegations that Region 8 was paid for services that it either did not provide or that were not provided by qualified individuals as part of its preschool Day Treatment program.
Free Speech, First Amendment and Religious Liberties
In December 2019, the office joined our colleagues in the Civil Rights Division in filing a Statement of Interest in a federal lawsuit brought by a student organization and J. Michael Brown, a former student at Jones County Junior College, explaining that public colleges cannot trample on their students’ First Amendment rights to free speech. Jones County Junior College’s policies required campus administrators to pre-approve all “meetings or gatherings,” and Mr. Brown alleged that college officials called the campus police on him when he sought to engage on campus with fellow students about topics such as free speech and civil liberties. Our Statement of Interest pointed to Supreme Court case law explaining that the First Amendment rights of speech and association extend to the campuses of state universities. While Jones County Junior College’s “extreme preconditions to speech might not be out of place in Oceania, the fictional dystopian superstate in George Orwell’s Nineteen Eighty-Four,” the Statement of Interest explains, “[t]he First Amendment to the United States Constitution . . . ensures that preconditions like these have no place in the United States of America.”
In April 2020, the office joined Attorney General William Barr, our colleagues in the U.S. Attorney’s Office in the Northern District of Mississippi and the Civil Rights Division in filing a Statement of Interest in support of a church in Greenville, Mississippi that allegedly sought to hold parking lot worship services, in which congregants listened to their pastor preach over their car radios, while sitting in their cars in the church parking lot with their windows rolled up. The City of Greenville fined congregants $500 per person for attending these parking lot services – while permitting citizens to attend nearby drive-in restaurants, even with their windows open.[1] The City appears to have thereby singled churches out as the only essential service (as designated by the state of Mississippi) that may not operate despite following all CDC and state recommendations regarding social distancing.
Protecting Our Military and Service Members
In June 2018, the U.S. Attorney’s Office accepted a settlement agreement with Syncom Space Services, LLC (S3) that resolved allegations that S3 violated the employment rights of Louisiana Air National Guardsman, Jason Cooper, under the Uniformed Services Employment and Reemployment Rights Act (USERRA). USERRA safeguards the rights of uniformed servicemembers, including National Guardsmen, to all benefits of employment following periods of absence due to military service obligations. Cooper had applied for a promotion while he was deployed on active duty with the National Guard. Although Cooper had the most PT&I experience of all applicants, S3 failed to promote him to the position upon his return from deployment. As a result of the employer’s failure to promote him to a position that he was qualified for, because of his military service, Cooper lost promotional income and benefits. S3 agreed to pay Cooper for lost wages and to make his promotion effective as of the date on which he returned to work from active duty.
ADMINISTRATIVE
Over the past three years, the U.S. Attorney’s Office for the Southern District of Mississippi saved taxpayers more than $1.7 million dollars, returning this saved money from its budget to the Department of Justice, while at the same time accomplishing more than has ever been done in the history of our district.
Upon his departure from the Department of Justice, Hurst plans to join a law firm in Jackson, Mississippi.
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U.S. Attorney John H. Durham Encourages People with Information about U.S. Capitol Incursion to Contact FBIRead the Press Release
New Haven – “We encourage people with information related to the activity yesterday at the U.S. Capitol to contact the FBI (https://tips.fbi.gov.) If the District of Connecticut is the appropriate venue for the prosecution of individuals involved in that disgraceful and criminal activity, our office will aggressively pursue any such matter.”
U.S. Attorney Halsey Frank Issues Statement on Violence at U.S. CapitolRead the Press Release
U.S. Attorney Halsey Frank Statement on Violence at U.S. Capital
"Our democratic republic is designed to resolve contentious disagreements in a peaceful and orderly fashion. It accommodates differences of opinion, political speechmaking, and peaceful protest. It does not tolerate mob violence. Such violence is antithetical to our values and is a crime. If the District of Maine has jurisdiction over any of the criminal activity that took place at the U.S. Capitol yesterday, we will prosecute it."
U.S. Attorney Gretchen Shappert Asks Virgin Islanders to Recognize and Celebrate Our Law Enforcement Officers: National Law Enforcement Appreciation Day, January 9thRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands encourages everyone to join her this Saturday, January 9th, by saluting our law enforcement officers and showing support on Law Enforcement Appreciation Day. “Local and federal law enforcement officers are our first responders whenever our communities are threatened by criminal activity, natural disasters, or other public safety emergencies. The men and women of law enforcement risk their lives and sacrifice their personal interests in order to protect and defend all of us,” Shappert said. “And each year, approximately 140 to 160 officers sacrifice their lives in the line of duty. It’s our job to acknowledge and recognize their enormous contributions to public safety and to our well-being.”
National Law Enforcement Appreciation Day will be observed across the country, this Saturday, January 9th. The holiday was originally created in 2015 by multiple organizations to express gratitude for law enforcement officers throughout the United States. One of the leading organizations to support this holiday is C.O.P.S—Concerns of Police Survivors. For more information about C.O.P.S. and how to support law enforcement on January 9th, see https://www.concernsofpolicesurvivors.org/l-e-a-d .
Anyone who appreciates law is encouraged to consider ways to show appreciation to law enforcement officers during Law Enforcement Appreciation Day:
- Change your profile picture on social media show support for Law Enforcement.
- Wear blue clothing in support of law enforcement.
- Send a letter, card or email to your local police department or federal agency expressing support and appreciation.
- Share a story about a positive law enforcement experience on social media.
- Ask children to write letters in support of law enforcement.
- Participate in Project Blue Light by proudly displaying a blue light in support of law enforcement.
Most importantly, if you see a law enforcement officer, thank a law enforcement officer.
Two Oregon Men Face Federal Charges for Pocketing Millions in Covid-Relief Fraud SchemeRead the Press Release
EUGENE, Ore.—Two Oregon men are facing federal charges for fraudulently converting to their personal use loans intended to help small businesses during the COVID-19 pandemic, announced U.S. Attorney Billy J. Williams.
Andrew Aaron Lloyd, 50, of Lebanon, Oregon, and Russell A. Schort, 38, of Myrtle Creek, Oregon, have been charged by criminal complaint with wire fraud, bank fraud, and money laundering.
Lloyd and Schort took advantage of economic relief programs administered by the Small Business Administration (SBA), including Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
According to the complaint, the FBI began investigating Lloyd and Schort after discovering suspicious financial transactions indicating that the pair may have fraudulently obtained PPP loans. A review of bank records revealed that between April 7, 2020 and May 8, 2020, Lloyd and Schort applied for and received at least three PPP loan payments using three separate entities, totaling more than $2.2 million. The loan application packages included some of the same information across the different business entities, including the businesses’ physical locations and the names of several dozen employees.
After receiving the funds, Lloyd transferred at least $1.8 million to a personal online brokerage account and purchased various securities. In the months that followed, these investments substantially increased in value. On the date of the seizure, the securities purchased with the fraud proceeds and with a loan secured by equities purchased with fraud proceeds, were valued at over $10 million.
Schort was arrested on January 6, 2021 by FBI agents and made his initial appearance in federal court the same day. Lloyd was arrested today FBI agents and will make his initial appearance tomorrow, January 8, 2021, before a U.S. Magistrate Judge in Eugene.
This case was investigated by the FBI with assistance from the Small Business Association and IRS. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Criminal complaints are only accusations of a crime, and defendants are presumed innocent unless and until proven guilty.
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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tulsa Man Sentenced for Attempting to Transfer Obscene Material to a MinorRead the Press Release
A Tulsa man has been sentenced today after he attempted to send obscene material to an individual he believed was a 14-year-old girl, announced U.S. Attorney Trent Shores.
Aaron Charles Merritt, 34, was sentenced to 54 months in federal prison and 3 years of supervised release in front of U.S. District Court Judge John E. Dowdell. Further, Merritt will have to forfeit the electronic devices that were used or intended to be used to facilitate his crime.
From March, 2020 until May, 2020, Merritt used an online messaging service to send numerous messages of a sexual nature to someone he thought was a 14-year-old girl; however, it was an undercover agent. Throughout his messages, Merritt asked questions about the young girl’s age and if she had a history of “hooking up” with older men she met on the internet. Further, Merritt acknowledged the legal consequences for engaging in sexual activity with her. Merritt continued sexual inquiries and sent a photo of his face, multiple photos of him masturbating, and a photo of he and a woman engaging in a sex act. Merritt went as far to say that he was not just communicating out of fantasy, but wanted to have children with the young woman he believed he was corresponding with. Merritt was ultimately arrested at his home, where officers located the mobile device used in the communications.
“Sadly, the facts of this case are far too common a story in today’s society: an adult male used the internet to sexually exploit a young child,” said U.S. Attorney Trent Shores. “Fortunately, in this case, it was an undercover officer on the other end of that conversation and this predator was brought to justice.”
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Christopher J. Nassar and Melody Noble Nelson prosecuted the case.
Third Clan Del Golfo associate extradited to face charges for international cocaine distribution conspiracyRead the Press Release
HOUSTON – Another alleged associate of one of the most serious transnational organized criminal organizations will make his initial appearance in U.S. federal court today on charges of distributing kilogram quantities of cocaine from Colombia, announced U.S. Attorney Ryan K. Patrick.
Jose Alfredo Valencia, 43, is set to appear at 2 p.m. in Houston before U.S. Magistrate Judge Dena Henovice Palermo.
A federal grand jury returned an indictment against Alfredo-Valencia and others Aug. 16, 2018. Colombian authorities took him into custody at the request of the United States in November 2018. He was extradited and landed in Houston yesterday.
Valencia is an alleged close associate of Joaquin Guillermo David-Usuga aka Guillermo, 43, who is believed to be a ranking member of the Clan Del Golfo. David-Usuga was extradited to Houston Dec. 5, 2019, and is pending trial. Another Clan Del Golfo associate charged is Jhony Fidel Cuello-Petro aka Mocho, 45, who was extradited to Houston in October 2020. He pleaded guilty to international cocaine distribution in December 2020 and is pending sentencing.
The Department of Justice designated Clan Del Golfo as one of the most serious transnational organized criminal organizations that threatens the United States.
The indictment alleges Valencia, Cuello-Petro, David-Usuga and others were involved in the importation of kilogram quantities of cocaine into the United States. Both are charged with conspiracy to distribute cocaine internationally and one count of international cocaine distribution.
Valencia, Cuello-Petro and David-Usuga were allegedly involved in an ongoing five-year conspiracy to distribute cocaine from Colombia to the United States. In May 2019, they and others participated in distributing approximately 20 kilograms of cocaine in Colombia knowing it was to be imported into the United States, according to the allegations.
The FBI and Drug Enforcement Administration led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Macondo.”
The operation is part of an OCDETF Strike Force Initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.
The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates that impact Houston and south Texas.
The Justice Department’s Office of International Affairs was responsible for securing the extradition. The Justice Department also extends its gratitude to the government of Colombia and the Colombian police and military for its cooperation and assistance.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Syracuse Man Pleads Guilty to Uploading Child Pornography to FacebookRead the Press Release
SYRACUSE, NEW YORK – Randy Tremfer, age 44, of Syracuse, New York, pled guilty today in federal court in Binghamton to one count of transportation of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Tremfer admitted that on January 24, 2019, he uploaded to Facebook a video containing child pornography, and that he possessed 37 additional videos of child pornography on his Facebook account. Tremfer also admitted that he has a prior conviction in federal court for receipt and possession of child pornography, for which he served a 60-months prison sentence, and that he was on supervised release at the time of the offense for which he pled guilty today.
The charge to which Tremfer pled guilty carries a mandatory minimum sentence of 15 years in prison, a maximum sentence of up to 40 years in prison, a fine of up to $250,000, and a term of supervised release of between five years and life. 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.
Tremfer will be sentenced on May 6, 2021, by United States District Judge David N. Hurd, who presides over the case.
This case was investigated by Homeland Security Investigations (HSI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Suburban Chicago Businessman Charged with COVID-Relief FraudRead the Press Release
CHICAGO – A suburban Chicago businessman has been indicted on federal fraud charges for allegedly fraudulently obtaining more than $420,000 in small business loans under the Coronavirus Aid, Relief, and Economic Security Act.
CARLOS SMITH, 56, of Park Forest, Ill., allegedly engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL), two sources of relief under the CARES Act. Smith was charged in an indictment unsealed Tuesday in the Northern District of Illinois with two counts of wire fraud, one count of making false statements to a financial institution, and one count of money laundering. Arraignment is set for Jan. 14, 2021, at 11:00 a.m., before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government is represented by Assistant U.S. Attorney Kelly Greening.
“The Paycheck Protection Program and the Economic Injury Disaster Loan Program were designed as lifelines for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to root out abuse of the important relief programs established under the CARES Act.”
Pursuant to the CARES Act, a PPP loan allows the interest and principal to be forgiven if businesses spend a certain amount of the proceeds on essential expenses, such as payroll, rent, and utilities, while the EIDL provides loan assistance or grants to cover working capital and other operating expenses.
According to the indictment, Smith applied for and obtained $270,000 in PPP funds for CLS Financial Services Inc., an Indiana-based company that he owned. In his loan application, Smith stated that the company had 61 employees and an average monthly payroll of $108,000, even though Smith knew the company had no actual employees and no payroll expenses, the indictment states. Smith also fraudulently represented in the application that he was not convicted of a felony criminal offense within the last five years, even though he knew he had been convicted of such an offense, the indictment states.
Smith similarly obtained $151,900 in EIDL loans by stating in the application that his company had two employees and $1.8 million in gross revenue last year, even though he knew the company had no such employees or revenue, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or filing an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Statement of United States Attorney Kenji M. PriceRead the Press Release
HONOLULU, Hawaii – "I strongly condemn the assault on democracy that unfolded before our eyes yesterday at the very heart of the Nation’s capital. I’ve devoted much of my professional life—both as a uniformed servicemember and prosecutor—to protecting and defending the rule of law, our institutions, and, most importantly, the safety and security of those who reside in this great country. The acts of those who attacked the Capitol—and more importantly, attempted to stop the process by which free people determine who will lead this Nation during the years that lie ahead—contravene the very principles that scores of public servants like me stand for and have, at times, risked life and limb to defend.
As Acting Attorney General Jeffrey A. Rosen said earlier today, ‘The Department of Justice is committed to ensuring that those responsible for this attack on our Government and the rule of law face the full consequences of their actions under the law.’ My office condemns this unlawful behavior and will conduct or assist in conducting any investigation or prosecution with an appropriate nexus to our jurisdiction."
Statement of Acting Attorney General Jeffrey A. RosenRead the Press Release
“Yesterday, our Nation watched in disbelief as a mob breached the Capitol Building and required federal and local law enforcement to help restore order. The Department of Justice is committed to ensuring that those responsible for this attack on our Government and the rule of law face the full consequences of their actions under the law. Our criminal prosecutors have been working throughout the night with special agents and investigators from the U.S. Capitol Police, FBI, ATF, Metropolitan Police Department and the public to gather the evidence, identify perpetrators, and charge federal crimes where warranted. Some participants in yesterday’s violence will be charged today, and we will continue to methodically assess evidence, charge crimes and make arrests in the coming days and weeks to ensure that those responsible are held accountable under the law.”
Statement from United States Attorney Russell ColemanRead the Press Release
LOUISVILLE, Ky. – “Whether vandalizing our nation’s most sacred secular structure or looting neighborhood businesses, there is a line that, when crossed, First Amendment protected protest becomes criminal conduct,” said United States Attorney Russell Coleman. “Such violence has no place on Capitol Hill or our Commonwealth. Just as we aggressively pursued federal prosecutions to protect the community, police, and protesters from violence during a tense season in Louisville last year, I join my colleagues from across the country in promising to vigorously enforce federal law as it relates to anyone from the Western District of Kentucky who assaulted the democratic process and put people at risk yesterday.”
Statement from U.S. Attorney Andrew E. Lelling on Breach of U.S. CapitolRead the Press Release
“Yesterday’s events in Washington were shocking and, once peaceful demonstrations turned violent, they became criminal. The Constitution protects the right to freedom of speech and assembly. What is does not protect is a violent assault on government institutions. Americans on the right and left must re-learn the difference. Anyone who traveled from Massachusetts with the intent to commit such crimes will be prosecuted in the District of Massachusetts.”
Statement of U.S. Attorney James P. Kennedy, Jr.Read the Press Release
“We have received a number of leads and tips regarding yesterday’s events at the Capitol Building. Working with our law enforcement partners, we are actively investigating the information we have obtained. Should we determine that there is a legal nexus between the crimes committed at the Capitol and our jurisdiction, we will not hesitate to charge those responsible. Violence is never an acceptable means of protest. We are one Nation, and as such, the unity which comes from a shared respect for both the rule of law and one another represents our only hope for lasting solutions to the challenges we face. Escalating hostility and violence diminishes us all.”
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Statement of Acting United States Attorney Regarding Yesterday’s Activities at the U.S. Capitol BuildingRead the Press Release
HARRISBURG – Acting United States Attorney Bruce D. Brandler provides the following statement:
“The violence and destruction that occurred yesterday at our Nation’s Capitol Building was reprehensible and repugnant. Our office will prosecute to the fullest extent of the law any individual who traveled from the Middle District of Pennsylvania to Washington D.C. with the intent to incite or commit those violent and destructive acts. We also stand ready to assist our law enforcement partners to identify any individual who committed any federal offense connected to those abhorrent activities.”
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Statement by U.S. Attorney J. Douglas Overbey on Protecting the Constitution and Upholding the Rule of LawRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey joins Acting Attorney General Jeffrey A. Rosen and other U.S. Attorneys in the continued commitment to protect the Constitution and uphold the Rule of Law under all circumstances.
“I am shocked and appalled by the mob violence that occurred yesterday in our nation’s Capitol,” said U.S. Attorney J. Douglas Overbey. “As the United States Attorney for the Eastern District of Tennessee, I took an oath to protect and defend the Constitution of the United States, which carries with it a duty to uphold the Rule of Law.”
“Our office remains dedicated to preserving the public’s constitutional right to peaceably assemble, demonstrate, and petition the government for a redress of grievances. However, it is also our duty to protect citizens from violence and criminal activity. Accordingly, where appropriate under the facts, our office will consider the prosecution of those whose conduct crosses the line from peaceful protest to violence and other criminal activity in violation of federal law.”
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Sioux Falls Man Sentenced to 20 Years in Federal Prison for Trafficking Heroin that Led to Fatal OverdoseRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man charged with Distribution of a Controlled Substance Resulting in Death pled guilty and was sentenced on January 5, 2021, by District Judge Lawrence L. Piersol.
Aaron Anthony Wodzinski, age 24, was sentenced to 240 months in federal prison, followed by three years of supervised release, and $100 to the Federal Crime Victims Fund.
Wodzinski was indicted by a federal grand jury on March 10, 2020.
The conviction stems from an incident that took place in November 2018, when Wodzinski knowingly and intentionally distributed heroin to an individual in Sioux Falls who used that heroin, overdosed, and died.
The investigation was conducted by the Sioux Falls Area Drug Task Force, United States Customs and Border Patrol, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Jennifer D. Mammenga.
Wodzinski was remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 10 Years for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on January 5, 2021, by U.S. District Judge Lawrence L. Piersol.
Matthew Edmond Donegan, age 23, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Donegan was indicted by a federal grand jury on February 4, 2020. He pled guilty on October 21, 2020.
The conviction stemmed from an incident on December 16, 2019, when Donegan was arrested in possession of 144 grams of methamphetamine, which was tested and found to be 97% pure. Donegan intended for some, or all, of that methamphetamine to be distributed.
This case was investigated by the Sioux Falls Police Department, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Donegan was immediately turned over to the custody of the U.S. Marshals Service.
Seven People Charged with Trafficking Cocaine in the Fox ValleyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that seven defendants have been charged with offenses related to a conspiracy to distribute large amounts of cocaine in the Fox Valley in Wisconsin.
Name
Charge(s)
Residence
Luis A. Morales (40)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Possession with Intent to Distribute at least 500 Grams of Cocaine
Felon in Possession of a Firearm
Appleton, WI
Eduardo F. Morales (26)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Rialto, CA
Sandra M. Munoz (36)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Appleton, WI
Jennifer Almeida-Sandoval (30)
Possession with Intent to Distribute at least 500 Grams of Cocaine
Hilbert, WI
Javier Guzman-Becerra (32)
Conspiracy to Distribute at least 500 Grams of Cocaine
Menasha, WI
Frank DiMatteo (66)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
New London, WI
Cory J. Ulrich (42)
Conspiracy to Distribute at least 5 Kilograms of Cocaine
Appleton, WI
According to the criminal complaint, Luis Morales is the owner of several restaurants in the Fox Valley, including Mr. Taco (Appleton, Kimberly, and Hilbert locations) and Savor Food & Spirits.
The investigation revealed that Luis Morales and his co-conspirators distributed numerous kilograms of cocaine in the Appleton, Wisconsin area since June of 2019. On several occasions, Luis Morales arranged for employees of Mr. Taco to distribute and accept payments for large amounts of cocaine at the Mr. Taco (Kimberly) restaurant. During the takedown on December 2, 2020, over two kilograms of cocaine were seized from Luis Morales’ vehicle and residence.
If convicted, Luis Morales, Eduardo Morales, Sandra Munoz, Frank DiMatteo, and Cory Ulrich face a mandatory minimum of 10 years and up to life in prison. Jennifer Almeida-Sandoval and Javier Guzman-Becerra face a mandatory minimum of 5 years and up to 40 years in prison.
“Drug-trafficking organizations harm our communities by maintaining arsenals of weapons and fueling addiction,” said United States Attorney Krueger. “This case underscores the extraordinary cooperation among federal, state, and local law enforcement to combat drug trafficking in Wisconsin.”
“The Drug Enforcement Administration (DEA) is committed to working with its local, state and federal law enforcement partners to keep Wisconsin citizens safe from the distribution of illegal drugs and the violence that is always associated with it,” said DEA Special Agent in Charge Robert J. Bell. “This indictment shows the resolve of law enforcement to bring to justice those who profit from drug trafficking.”
“Outstanding work by agents with Wisconsin DOJ’s Division of Criminal Investigation and local and federal law enforcement led to the arrests in this case and seizures of large quantities of narcotics,” said Wisconsin Attorney General Josh Kaul. “This case is a great example of the impact that enforcement efforts focused on large-scale drug trafficking can have.”
The defendants were charged based on a multi-year investigation led by law enforcement agents and officers from the Drug Enforcement Administration – Green Bay Residential Office (DEA-GBRO), the Lake Winnebago Area Metropolitan Enforcement Group – Drug Unit (LWAM), and the Wisconsin Department of Justice – Division of Criminal Investigation (DCI). Several other law enforcement agencies assisted throughout this investigation, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wisconsin National Guard Counterdrug Program, the Wisconsin State Patrol, the Appleton Police Department, the Calumet County District Attorney’s Office, the Fond du Lac County District Attorney’s Office, and the Outagamie County District Attorney’s Office. Assistant United States Attorney Alex Duros and Assistant United States Attorney William Roach are prosecuting the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Saturday, January 9, 2020 Law Enforcement Appreciation DayRead the Press Release
Spokane – William D. Hyslop, U.S. Attorney for the Eastern District of Washington, announced that this Saturday, January 9th, 2021, is National Law Enforcement Appreciation Day. This day was established to thank and show support to our local law enforcement officers for their dedication to duty and service to their communities.
U.S. Attorney Hyslop stated, “Each and every day, our law enforcement officers put on their uniforms and leave the safety of their homes and the comfort of their families to protect and serve our communities. National Law Enforcement Appreciation Day is a time to show them we appreciate their sacrifice and that we stand with them as they work to make our communities safe and secure. I ask everyone to send a note of thanks to their local law enforcement agency; their addresses are readily available online. And when you see an officer, wave to them and say ‘Thank you for all you do.”
Hyslop added, “The U.S. Attorney’s Office works closely with all federal, state, local and tribal law enforcement. We can’t complete the work we do without the support of our law enforcement partners. We appreciate them every day. We’re asking the residents of Eastern Washington to say Thank You this Saturday.”
Please take time this Saturday, January 9th, 2021 to show your appreciation to the law enforcement professionals by:
- Wear blue in support of law enforcement
- Send a card or letter of support to your local police department, county sheriff, tribal or state agency
- Tell an officer “Thank You”
- Share a story about a positive law enforcement experience on social media
- Participate in Project Blue Light – Proudly display your blue light in support of law enforcement
- Turn your social media channel blue
- Fly a blue ribbon on your car antenna, mailbox, or anywhere a ribbon can be tied
Most importantly, if you see a police officer, thank a police officer.
Russian Hacker Sentenced to 12 Years in Prison for Involvement in Massive Network Intrusions at U.S. Financial Institutions, Brokerage Firms, A Major News Publication, and Other CompaniesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” was sentenced in Manhattan federal court to 144 months in prison for computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies. TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” Joshua Samuel Aaron, a/k/a “Mike Shields,” and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators. TYURIN previously pled guilty to these charges, and was sentenced today before U.S. District Judge Laura Taylor Swain.
Acting U.S. Attorney Audrey Strauss said: “From his home in Moscow, Andrei Tyurin played a major role in orchestrating and facilitating an international hacking campaign that included one of the largest thefts of U.S. customer data from a single financial institution in history, stealing the personal information of more than 80 million J.P. Morgan Chase customers. The conspiracy targeted major financial institutions, brokerage firms, news agencies, and other companies, and netted Tyurin over $19 million in criminal proceeds. Now Tyurin has been sentenced to 12 years in prison for his crimes.”
According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:
From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S. (including but not limited to J.P. Morgan Chase Bank, E*Trade, Scottrade, and the Wall Street Journal), and was responsible for the theft of personal information of over 100 million customers of the victim companies. TYURIN’s hack of J.P. Morgan Chase Bank alone resulted in the theft of personal information of over 80 million customers. TYURIN engaged in these crimes at the direction of his partner Gery Shalon, and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States. For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.
In addition to the U.S. financial sector hacks, from approximately 2007 to mid-2015 TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors. Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns. TYURIN’s hacking activity included the targeting of companies known to be used for email marketing campaigns, competitor online casinos, and a merchant risk intelligence firm based in the United States, in order for the co-conspirators to monitor the firm’s efforts to audit potentially criminal online credit card transactions on behalf of major credit card networks, and thus avoid detection of their own criminal schemes.
In furtherance of his hacking activities, TYURIN used computer infrastructure located across five continents, which he controlled from his home in Moscow, and maintained persistent access over extended periods of time to the victims’ networks, regularly refreshing the stolen data by repeatedly downloading information from these companies. And once his hacking activities were detected, TYURIN worked with Shalon to destroy the evidence of their criminal activity and undermine U.S. law enforcement’s efforts to identify and arrest them.
Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds, and TYURIN himself earned over $19 million in profits from his hacking activity.
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TYURIN, 37, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, and one count of conspiracy to commit wire fraud and bank fraud. In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, and one count of conspiracy to commit computer hacking, from charges that were transferred from the Northern District of Georgia for purposes of his plea. In addition to the prison term, Judge Swain ordered TYURIN to serve three years of supervised release, and to pay forfeiture in the amount of $19,214,956. The Court will determine TYURIN’s restitution obligations at a hearing scheduled for April 6, 2021. TYURIN has been in U.S. custody since he was extradited from the country of Georgia in September 2018, and will commence serving his sentence immediately.
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Ms. Strauss praised the investigative work of the FBI and the U.S. Secret Service, and expressed her sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings. She also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.
Rankin Man Sentenced to 5 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania has been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of five years of imprisonment, followed by five years of supervised release, on Marcell Sewell, 60, of Rankin, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Law enforcement identified several individuals who were illegally distributing controlled substances in the Greater Pittsburgh Region, as members of a neighborhood-based street gang, self-titled "SCO" and whose leader was identified as Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. As a result of this investigation, Sewell, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that early in the investigation, Mr. Sewell was identified as an associate of SCO and, in particular an associate of Howard McFadden. Investigators observed Mr. Sewell meeting with Howard McFadden at a stash house location on Seddon Avenue, via pole camera footage. Once law enforcement began intercepting communications, in January of 2019, the government confirmed that these meetings pertained to drug trafficking. Mr. Sewell was intercepted communicating with Howard McFadden, discussing their drug customers and drug-trafficking businesses. Mr. Sewell regularly met with Howard McFadden at various locations, in and around Braddock, to obtain cocaine and cocaine base from Howard McFadden and/or to pay him. Mr. Sewell admitted to conspiring to distribute 182 grams of cocaine and 114 grams of cocaine base.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Sewell.
Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Pocahontas County man facing several firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Julian N. Waddell, of Durbin, West Virginia, appeared in federal court today to face several firearms charges, U.S. Attorney Bill Powell announced.
Waddell, 36, was indicted by a federal grand jury sitting in Wheeling in October 2020. He is facing four counts of “Unlawful Possession of a Firearm” and one count of “Unlawful Possession of an Unregistered Firearm.” Waddell, a person who isn’t permitted to have a firearm because of a prior conviction, is accused of having three revolvers, a shotgun, a semi-automatic rifle, and an unregistered silencer from April to August 2019 in Pocahontas County.
Waddell is facing up to 10 years of incarceration and a fine of up to $250,000 for each of the first four counts and face up to 10 years of incarceration and a fine of up to $10,000 for the unregistered firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mountain Region Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Michael John Aloi presided.
Pittsburgh Man Charged with Threatening Communications and Impeding FBI InvestigationRead the Press Release
PITTSBURGH – Khaled Miah, 27, a resident of Pittsburgh, Pennsylvania, and former student at the University of Pittsburgh, has been charged by federal criminal complaint with one count of making interstate threatening communications, one count of influencing, impeding or retaliating against a Federal law enforcement officer, and one count of destruction of records in a federal investigation, United States Attorney Scott Brady announced today. Miah was arrested on Wednesday and made an initial appearance in U.S. District Court via video teleconference. A preliminary and detention hearing is scheduled for tomorrow, January 8, 2021, at 10 a.m., before Chief Magistrate Judge Cynthia Eddy.
"Khaled Miah’s use of multiple Twitter accounts to threaten and harass federal law enforcement officers and their family members and to obstruct a federal investigation are clear violations of federal law," said U.S. Attorney Brady. "We will not hesitate to pursue and prosecute individuals who cross the line from interest to intimidation."
"This arrest is the culmination of a year-long investigation which included threatening federal law enforcement officers," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Threatening online statements, whether directed to a federal officer or any other person, is not harmless activity. It is serious criminal activity with consequences. Threats against law enforcement officers are particularly egregious in that it interferes with our ability to protect the communities we are charged with serving. We should all understand that the First Amendment is not a license to threaten others with harm and that the FBI and our law enforcement partners will relentlessly pursue those who pose a threat to the community."
According to an affidavit filed in U.S. District Court in Pittsburgh, on or about December 27, 2020, Miah posted threats directed at individual FBI agents who were investigating him, as well as the FBI generally. In December 2020, FBI personnel identified a publicly visible Twitter account created by Miah. From the date of its creation to on or about January 1, 2021, Miah used this Twitter account to threaten, intimidate and harass FBI Pittsburgh Agents and the FBI. In addition, after posting the threatening statements, and with full knowledge of the FBI investigation into his conduct, Miah subsequently deleted those posts which impeded, obstructed, and influenced the FBI investigation.
Specifically, as referenced in the criminal complaint, among other statements, Miah posted the following statement on Twitter: "Currently eating pasta and watching videos of the secind plane hit the south tower."
Based upon their lengthy investigation of Miah, the FBI assessed that by referring to watching "videos of the second plane hit the south tower," Miah was referring to the coordinated Al-Qaeda terrorist attacks of September 11, 2001, at which time two commercial airplanes were hijacked and crashed into the North and South towers of the World Trade Center in New York City. As a result, the North and South towers ultimately burned and collapsed causing the deaths of more than 2900 people. Miah went on to state that "the deed will be done, at a time which is most opportunistic for me, chosen by myself."
Miah additionally commented on December 29, 2020, that the "zero hour" was approaching and posted the geographic location of FBI Headquarters in Washington, D.C. According to the criminal complaint affidavit, Miah also traveled to Washington, D.C., and was surveilled on at least 11 occasions in the immediate vicinity of the FBI headquarters building in Pittsburgh between November 1, 2020, and January 3, 2021.
The criminal complaint affidavit also details that, after seizing and searching Miah’s electronic devices pursuant to a federal search warrant, FBI’s forensic analysis revealed that Miah apparently idealized the Boston Marathon Bombers, Tamerlan and Dzhokhar Tsarnaev, and visited several landmarks in Massachusetts associated with the bombings, including where each of the two bombings took place, where the Tsarnaev brothers participated in a violent shootout with local police, and the gym where Tamerlan Tsarnaev previously trained in mixed martial arts.
Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, University of Pittsburgh Police Department, Pittsburgh Bureau of Police, Allegheny County Police Department, Allegheny County Port Authority Police, Pennsylvania State Police, Allegheny County Probation, the Department of Homeland Security, and the Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorneys Jessica Lieber Smolar and Soo C. Song of the Western District of Pennsylvania.
Charges pursuant to a criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Passaic County Man Sentenced to 63 Months for Role in Fentanyl ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 63 months in prison for conspiring to distribute fentanyl and distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Keith Brinkley, a/k/a “K Murder,” 30, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to fentanyl and knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Brinkley and his conspirators are all members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Brinkley and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Brinkley to three years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Owner of Westwego, Louisiana Accounting Business Pleads Guilty to Tax Fraud ChargesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Henry J. Timothy, 69, of Westwego, pleaded guilty in United States District Court to four counts of tax fraud.
Timothy is the owner and sole tax preparer for B&B Accounting Services, located in Westwego, Louisiana. He operates his business out of his home and has been a tax preparer since 2012. According to information presented to the court at the guilty plea hearing, Timothy admitted to preparing and electronically submitting false and fraudulent U.S. Individual Tax Returns on behalf of himself and his wife for the tax years of 2013, 2014, 2015 and 2016.
Timothy purposefully omitted approximately $83,304 in gross receipts for year 2013; $80,932 in gross receipts for year 2014; $73,391.79 in gross receipts for year 2015; and $82,592 in gross receipts for year 2016 from Schedule C of his 1040 U.S. Individual Tax Returns where the gross receipts are listed. The omission of this income resulted in an additional tax liability of $88,593. As a tax preparer, Timothy was well aware that he had to list all of his gross receipts but failed to do so in order to reduce his tax liability.
Timothy faces a maximum penalty of up to 3 years in prison, a $100,000 fine, or both, at sentencing. The sentencing hearing has been set for April 15, 2021 at 2:00.
The Internal Revenue Service and FBI conducted the investigation and Assistant United States Attorneys Kelly P. Uebinger and David J. Ayo are prosecuting the case.
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