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7 January 2021
Former NYPD Sergeant Charged with 9/11 Benefits FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, Police Commissioner of the City of New York (“NYPD”), and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office (“DOJ-OIG”), announced today that SALLY SPINOSA was charged in Manhattan federal court with two counts of making false claims for monetary awards and medical benefits by falsely and materially overstating the amount of time she spent on recovery efforts after the September 11, 2001, attack on New York, as well as one count of aggravated identity theft for submitting a fraudulent affidavit in connection with her benefits application. SPINOSA surrendered this morning and will be presented before Magistrate Judge Kevin Nathaniel Fox in Manhattan this afternoon.
Acting U.S. Attorney Audrey Strauss said: “After the September 11 attacks on New York City, the brave men and women of the NYPD risked their lives and safety to rebuild the City. As alleged, former NYPD sergeant Sally Spinosa exploited her position by brazenly – and falsely – claiming to have worked hundreds of hours in the recovery effort. When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the departments that employ them, and to the public they serve. My Office will work tirelessly with our law enforcement partners to uncover and prosecute such conduct.”
NYPD Commissioner Dermot Shea said: “There is no place in the NYPD for criminal behavior. I commend Deputy Commissioner Joseph Reznick and Internal Affairs officers for their thorough investigation, in partnership with the U.S. Attorney’s Office, Southern District, and the Department of Justice Office of the Inspector General.”
DOJ-OIG Special Agent in Charge Russell W. Cunningham said: “The victim compensation funds are meant to provide some relief for victims of the 9/11 terrorist attacks. Spinosa allegedly tried to defraud the government and take benefits from the fund that she did not deserve. The charges brought today show that the DOJ OIG will thoroughly investigate allegations of fraud of these funds.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court[1]:
Following the attacks on New York and Washington, D.C., on September 11, 2001, Congress created certain programs to provide monetary compensation and medical treatment for victims of the attacks. Specifically, Congress created the September 11th Victim Compensation Fund (the “VCF”) to provide compensation for any individual who suffered physical harm or was killed as a result of either the September 11th attacks or the debris removal and recovery efforts that took place in the immediate aftermath of the attacks. Congress also created the World Trade Center Health Program (“WTCHP”) to provide, among other things, monitoring and medical treatment benefits for individuals who have or may develop health conditions due to exposure at disaster or recovery sites tied to the September 11th attacks. Both the VCF and the WTCHP are funded by Congress. An individual can be deemed eligible for a VCF award either by submitting medical documents and proof-of-presence documents directly to the VCF, or by going through the WTCHP’s process for having a medical condition certified.
SALLY SPINOSA served as an NYPD officer from in or about July 1986 until July 2019, and was a sergeant in the investigations unit of the NYPD’s Patrol Services Bureau of Staten Island (the “Staten Island Investigations Unit”) on September 11, 2001. In 2010, SPINOSA participated in a screening interview with the WTCHP in which she falsely stated that she worked for hundreds of hours at the Fresh Kills Landfill in Staten Island, New York (the “Landfill”), from September 2001 to June 2002. Similarly, in 2014, SPINOSA applied for a monetary award from the VCF, falsely claiming that she was at the Landfill for two hours each day for 62 straight days from September 20, 2001, to November 20, 2001. In support of her application, SPINOSA submitted proof-of-presence documents, including an affidavit purportedly signed by one of her supervisors at the Staten Island Investigations Unit (“Officer-1”) stating that Officer-1 frequently visited the Landfill with SPINOSA to supervise subordinates (the “Officer-1 Affidavit”).
However, contrary to SPINOSA’s representations to the WTCHP and the VCF, in fact SPINOSA spent little to no time at the Landfill. Indeed, during much of the time SPINOSA claimed to be working at the Landfill, SPINOSA was pregnant and doing limited work outside the Staten Island Investigations Unit’s offices, or was out of the office entirely on parental leave. Moreover, the Officer-1 Affidavit that SPINOSA submitted in support of her VCF application was fraudulent and was never signed by Officer-1.
Nevertheless, and based on her false and fraudulent misrepresentations, in or around 2017 the WTCHP granted her benefits. The WTCHP has since paid for certain medical visits and prescription drugs for SPINOSA. While SPINOSA’s original fraudulent application to the VCF was denied in 2014, she reapplied in 2017 and 2018 relying on the same false and fraudulent information. SPINOSA’s VCF claim remains pending.
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SPINOSA, 55, of Freehold, New Jersey, has been charged with one count of submitting false claims, which carries a maximum penalty of five years in prison, one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory penalty of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the NYPD’s Internal Affairs Bureau and DOJ-OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kedar S. Bhatia and Catherine E. Ghosh are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Who Financed and Patronized Child-Sex-Trafficking Ring in the Philippines Sentenced to Life in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge Virginia Hernandez Covington today sentenced Christopher John Streeter (63, Land O’Lakes) to life in federal prison for sex trafficking of a child under the age of 14. Streeter had pleaded guilty on October 15, 2020.
According to court documents, from September 2018 through June 2019, Streeter directly participated in a scheme that sexually exploited children in the Philippines in order to produce child sex-abuse videos for his consumption. Over that period, Streeter communicated and transacted with Philippines-based facilitators to recruit children to engage in sex acts on camera. The child victims—some of whom were as young as 12 and 13 years of age—were particularly vulnerable due to poverty and illness.
Streeter sent payments to the Philippines in exchange for depictions of the victims engaging in sex acts. The money that Streeter remitted covered various recording production costs, such as hotel rooms, transportation, and a commission for the recruiters. In return, Streeter received videos and images of children involved in various sex acts that tracked Streeter’s directives. Streeter negotiated and paid a premium for videos and images depicting female children losing their virginity and being harmed by other forms of sexual violence. He also negotiated and paid a premium for media depicting female children being placed at risk of pregnancy, including additional payment for emergency contraception pills and, occasionally, for abortions.
One of Streeter’s victims was a 12-year-old girl from Ozamis, Philippines. In 2018 and 2019, Streeter communicated with a Philippine recruiter in Ozamis named Analyn Tababini. On multiple occasions, while in the Tampa Bay area, Streeter paid Tababini to arrange for sex-abuse videos to be made of the victim. The monies covered production costs, including the male abuser, money for the victim, hotel expenses, and a commission for Tababini. In return, Tababini sent Streeter several videos of the sexual abuse of the victim. At one point, Streeter voiced displeasure with the videos not depicting insemination of the victim and ordered Tababini to purchase and make the victim take emergency contraception for future videos.
In addition to working for Streeter, Homeland Security Investigations Transnational National Criminal Investigative Unit in Manila discovered that Tababini has facilitated internet sex shows of minors in exchange for payment from an array of international clientele. In a recent, coordinated operation conducted by the Philippine National Police in Ozamis, Philippines, six of Tababini’s child sex-trafficking victims (including Streeter’s 12-year-old victim) were rescued by the Philippine Department of Social Welfare and Development. Philippine authorities also arrested Tababini and executed three search warrants in support of their continuing investigation.
“This morally corrupt individual thought he could circumvent justice because of international borders,” said HSI Tampa Acting Deputy Special Agent in Charge Micah C. McCombs. “Leveraging HSI’s unique international authorities and our strong law enforcement partnership with the Pasco Sheriff’s Office, this human trafficker will now face the justice he deserves.”
"I am proud of the partnership that we have with the Department of Homeland Security,” said Pasco Sheriff Chris Nocco. “We are proud of the hard work of our members that resulted in saving children and getting the perpetuator of these heinous acts out of our community."
This case was investigated by Homeland Security Investigations (Tampa and Manila), with assistance from the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
The Philippines victim-rescue operation was conducted by the Philippine National Police (Manila), with assistance from Homeland Security Investigations (Tampa and Manila), U.S. Customs and Border Protection (National Targeting Center), the Philippine National Police Woman and Children Protection Center (Mindanao Field Unit), and the Ozamis City Police Office.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida; one of 13 Task Forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law-enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Federal authorities investigating any potential violations of federal law by residents of Southern District of Ohio at U.S. CapitolRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers reiterated today that his office, in coordination with the Cincinnati Division of the FBI, will investigate any potential violations of federal crime at the United States Capitol Building on Jan. 6, 2021 committed by individuals from the Southern District of Ohio.
“We are in continual contact with the FBI and they are actively investigating,” DeVillers said. “There is no set timeframe for investigations to conclude.”
Individuals in the Southern District of Ohio with information related to the commission of federal crimes at the Capitol are asked to contact the FBI at 513-421-4310. Additionally, tips may be submitted to the FBI at fbi.gov/USCapitol.
DeVillers noted federal statutes that may be applicable, including:
- 18 United States Code section 231 – Civil Disorder, which prohibits adversely affecting any federally protected function or obstructing any law enforcement officer from the performance of official duties, punishable by up to five years in prison.
- 18 United States Code section 2101 – The Federal Riot Act, which applies to anyone who traveled interstate to incite, promote, or participate in a riot. This includes anyone who aided or abetted individuals who carried on a riot or committed a violent crime in furtherance of a riot. The crime is punishable by up to five years in prison.
- 18 United States Code section 2383 – Rebellion or insurrection. This law states that whoever incites, assists or engages in any rebellion or insurrection against the United States faces up to 10 years in prison.
“Investigations are ongoing, and we are unable to comment further at this time,” DeVillers said.
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Ex-Indian Health Services doctor sentenced to prison, fined for drug kickback scheme while at Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A former Indian Health Services doctor who worked on the Blackfeet Indian Reservation and admitted using his job to prescribe a diabetes drug from a pharmacy in exchange for kickbacks was sentenced today to three months in prison, two years of supervised release and fined $10,000, Acting U.S. Attorney Leif Johnson said.
Dr. Arnold Scott Devous, 68, of Billings, pleaded guilty on Sept. 10, 2020 to federal medical officer with conflict of interest.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris allowed Devous to self-report to prison.
“Dr. Devous used his position and ability to exploit patients in the Blackfeet community. These kinds of kickback schemes erode the public’s trust in its healthcare providers at a time when we need that trust more than ever. We will continue to prosecute these schemes to the full extent of the law,” Acting U.S. Attorney Johnson said.
"By engaging in kickback schemes, Dr. Devous committed a serious ethics violation which may result in diminished public trust of federal employees,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we are committed to rooting out corruption in our federal healthcare programs.”
In court documents filed in the case, the prosecution said that Devous used his position at IHS as a medical officer and in charge of the diabetes program in Browning to prescribe Farxiga, a Type 2 diabetes medication. Farxiga was not on the IHS formulary and could not be obtained at the facility. From December 2015 until June 2016, Devous solicited multiple pharmacies in Montana to fill expensive prescriptions of Farxiga in exchange for Devous receiving a "cut" of the profits and kickbacks. Government personnel are prohibited from engaging in these types of relationships.
Ultimately, a pharmacy agreed to Devous' terms and paid him $45,540 in approximately six months. Devous first hid the kickbacks by sending the money to his wife, and then he used a prospective business associate. Neither of these options was allowable under the law. When interviewed, Devous admitted that his wife received the money, which was illegal. Devous also admitted he never informed his superiors of the outside income as required by law.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Office of Inspector General, Office of Investigations, U.S. Department of Health & Human Services.
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Drug User and Convicted Domestic Abuser Sentenced to over Three Years in Prison for Possessing a Loaded GunRead the Press Release
A Cedar Rapids man who illegally possessed a loaded firearm was sentenced on January 6, 2021, to more than three years in federal prison.
Thomas Anthony Wallace, age 34, from Cedar Rapids, Iowa, received the prison term after an August 19, 2020 guilty plea to one count of possession of a firearm by a prohibited person.
Information disclosed at sentencing showed that on October 14, 2019, Cedar Rapids police officers were searching for Wallace for violating his state probation. They found Wallace in the driver’s seat of a parked Toyota Camry. After smelling marijuana, officers searched Wallace’s car and recovered a loaded firearm and marijuana. Wallace was prohibited from possessing firearms because he was a drug user and had previously been convicted of multiple crimes of domestic violence.
Wallace was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. He was sentenced to 42 months’ imprisonment, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Wallace is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00043.
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Drug User Sentenced to Four Years in Federal Prison for Possessing Firearms and AmmunitionRead the Press Release
A drug user who possessed firearms and ammunition was sentenced on January 5, 2021, to four years in federal prison.
Daniel Heim, age 33, of Dubuque, Iowa, received the sentence after an August 17, 2020 guilty plea to one count of being a drug user in possession of firearms and ammunition. In a plea agreement, Heim admitted that, in December 2019, he possessed 14 firearms and 3,398 rounds of ammunition while being a user of marijuana and cocaine. Heim also admitted that, in December 2019, while on a road in Dubuque County, he fired at least five shots from a .45 caliber pistol that was later found in his truck. The other firearms were found in Heim’s residence.
Heim was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Heim was sentenced to 48 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Heim was released on the bond previously set and is to surrender to the United States Bureau of Prisons on a date yet to be set.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 /media/1122011/dl?inline.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Dubuque County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 20-1006.
Follow us on Twitter @USAO_NDIA.
Drug Trafficking Sends Lafayette Man to Federal PrisonRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Paul Bernard, a/k/a “PJ,” 21, of Lafayette, Louisiana, was sentenced today by Judge Robert R. Summerhays. Bernard was sentenced to 42 months (3 years, 6 months) in prison followed by 2 years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
Bernard pled guilty on December 10, 2019. Evidence introduced in court revealed that from January through June 2019, Bernard purchased methamphetamine from a co-defendant in this case approximately once per week, with each transaction involving quantities of one ounce to one pound. He would then sell the methamphetamine for profit.
This prosecution is part of a larger investigation conducted by the Drug Enforcement Administration through its Southwest Louisiana HIDTA Task Force and Organized Crime and Drug Enforcement Task Forces. The Louisiana State Police Narcotics Division initiated the investigation, and Special Agents with DEA, as well as Task Force Officers assigned to the Southwest Louisiana HIDTA Task Force, completed the investigation. In addition to the above conviction and sentence, the investigation resulted in the dismantling of a drug trafficking organization in Ville Platte, Louisiana. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
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Developer Agrees to Pay $1.2 Million to Resolve Criminal Probe into Executive’s Relationship with Ex-L.A. City Councilman Jose HuizarRead the Press Release
NON-PROSECUTION AGREEMENTLOS ANGELES – A San Francisco-based company has agreed to pay $1.2 million to resolve a federal criminal investigation that focused on the company’s relationship with former Los Angeles City Councilmember Jose Huizar, who voted to approve its 35-story project in the Arts District.
CP Employer, Inc., formerly known as Carmel Partners, Inc., agreed to make the payment in a non-prosecution agreement (NPA) announced today by United States Attorney Nick Hanna and FBI Assistant Director in Charge Kristi Koons Johnson. The three-year NPA with CP Employer is the latest development in the ongoing investigation into a wide-ranging “pay-to-play” scheme in which developers bribed Los Angeles city officials to secure official acts to benefit their real estate projects.
Under the NPA, CP Employer admitted and accepted responsibility for the actions of its employees and agents and agreed to fully cooperate with the FBI’s ongoing public corruption probe. The company made the $1.2 million payment last month.
The United States Attorney’s Office agreed not to prosecute the company for three years, as long as it refrains from any criminal conduct, for a series of reasons detailed in the NPA. Those reasons include CP Employer’s acceptance of responsibility for its conduct, a demonstrated commitment to compliance, and cooperation with the government’s investigation. The NPA also notes the company has taken several remedial measures, including enhancing its compliance program, creating a “corporate policy against violations of all anti-bribery/anti-corruption laws” that will address political contributions and gifts to public officials, and terminating a consultant who later pleaded guilty to criminal charges stemming from the investigation.
The statement of facts attached to the NPA outlines CP Employer’s conduct in relation to former Los Angeles City Councilmember Jose Huizar, who faces a trial in June on a 41-count racketeering indictment, and real estate development consultant Morris Goldman, who is scheduled to be sentenced in August after pleading guilty last year to brokering deals in which a CP Employer executive agreed to make $50,000 in political contributions in exchange for Huizar’s official actions on the company’s mixed-use project in the Arts District of downtown Los Angeles.
In the statement of facts, CP Employer admits a series of facts, including:
- Goldman funneled a series of requests from Huizar that CP Employer make contributions to two political action committees for Huizar’s benefit;
- CP Employer made three of the four requested political contributions for a total of $75,000;
- the company official in charge of the Arts District project – “Executive M” – met with Huizar and agreed to assist with political fundraising efforts to benefit a Huizar relative running for his City Council seat and to obtain information on a person who was “causing problems for Huizar’s family”;
- while Executive M ultimately did not help with fundraising, the company official obtained the requested background report at company expense and without the knowledge of CP Employer’s Compliance Department or senior management;
- Executive M personally delivered the background report to Huizar, at which time Huizar solicited a $250,000 personal payment in exchange for reducing CP Employer’s public benefit payment – a request that Executive M did not act on, but which he withheld from his senior management and the company’s Compliance Department; and
- Huizar sought additional help from Executive M – background information on Huizar staffers and a potential job with CP Employer once he left the City Council – which Executive M did not act on, but again withheld this information from company management and its Compliance Department.
The statement of facts also outlines how the City’s Planning Commission approved the project in June 2018 with a requirement that 11 percent of the housing units be reserved for “very low income” residents. But the Huizar-chaired Planning and Land Use Management (PLUM) Committee approved the project four months later and accepted the company’s request to reduce the affordable housing requirement. The PLUM Committee also voted to deny an appeal of the project that had been filed by a labor union.
The NPA does not preclude or limit the investigation or prosecution of individuals, including any current or former CP Employer officer, employee or agent.
The matter involving CP Employer and the criminal cases stemming from the investigation are being handled by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Veronica Dragalin and Melissa J. Mills, also of the Public Corruption and Civil Rights Section.
Any member of the public who has information related to this investigation or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line – tips.fbi.gov – or to call the FBI’s Los Angeles Field Office at (310) 477-6565.
Convicted Felon Sentenced to Eight Years in Federal Prison for Firearm PossessionRead the Press Release
GAINESVILLE, FLORIDA – Robert Robinson Sr., of Gainesville, Florida, was sentenced on January 5, 2021, to eight years in federal prison after entering a plea of guilty to possessing a firearm as a convicted felon. At the time of his guilty plea on September 8, Robinson already had multiple prior felony convictions, including felony battery, possession of a firearm by felon, possession of a firearm with serial number removed, and possession of a controlled substance without a prescription. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The criminal use of firearms is one of the greatest threats to the safety and well-being of the people of North Florida, and this lengthy sentence will keep a serious repeat offender away from the law-abiding people of our communities,” U.S. Attorney Keefe said. “This sentence sends a clear message that we take such threats seriously and do everything in our power to stop them.”
On the morning of March 1, 2020, deputies from the Alachua County Sheriff’s Office (ACSO) were dispatched to a gas station after 911 callers reported that an armed confrontation had occurred in front of the store. Video footage later confirmed information provided by witnesses who said that Robinson, 27, got into an argument with another man in front of the store and then retrieved a 9 mm rifle from the trunk of his vehicle. Robinson escalated the confrontation with the other man while holding the rifle in his hands, before fleeing the area in his vehicle. A responding deputy quickly located the suspect vehicle and got behind it, but before the deputy could activate his emergency lights to initiate a traffic stop, the vehicle accelerated into a residential neighborhood in an attempt to evade law enforcement. During a brief pursuit through the neighborhood, Robinson turned around on a dead-end road and threw the rifle out of his car window, before aggressively driving toward the pursuing deputy’s vehicle and continuing his flight. Robinson was ultimately stopped by other ACSO deputies who had blocked the exit to the neighborhood. The rifle, loaded with an extended magazine and 17 rounds of 9 mm ammunition, was located in the grass near where Robinson had turned around.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) adopted the case for federal prosecution and conducted additional investigation, as a part of the Gainesville Gun Violence Initiative (GVI).
“Removing convicted felons in possession of firearms from our streets is a priority for ATF,” said ATF Special Agent in Charge Craig W. Saier. “Together with the investigative efforts of our law enforcement partners, this individual has been prosecuted to the fullest extent of the law”.
This sentencing resulted from the collaborative work of the ACSO and the ATF. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The Gainesville GVI was established in April 2019 by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. This commitment to protecting public safety is shared by GVI partners the State Attorney’s Office for the Eight Judicial Circuit, the ATF, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the ACSO, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. RobinsonConvicted Felon Admits to Shooting Drug Customer Twice over Unpaid Drug DebtRead the Press Release
BEAUMONT, Texas – A 34-year-old Beaumont, Texas man has pleaded guilty to federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Rustin Chase McKinsey, also known as “Dollar Bill,” pleaded guilty to discharging a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. McKinsey entered his guilty plea before U.S. Magistrate Judge Zack Hawthorn on Jan. 6, 2021.
According to information presented in court, on Sep. 4, 2020, law enforcement officers responded to a residence on Taylor Street in Beaumont, Texas in reference to a shooting. Upon arrival at the residence, officers discovered the victim laying on the front porch with a towel wrapped around a gunshot wound to his leg. The victim’s roommate told officers he was awoken by an argument between the victim and McKinsey, and he observed McKinsey fire two shots at the victim before fleeing the scene. The victim stated he owed money to McKinsey for methamphetamine that McKinsey sold him.
On Oct. 9, 2020, law enforcement officers responded again to the same residence on Taylor Street in Beaumont, Texas in reference to another shooting. Upon arrival, officers discovered the same victim suffering from a gunshot wound to his back. A single spent .22 caliber shell casing was discovered at the scene. The victim stated that McKinsey shot him again over the same drug debt that was owed.
McKinsey was arrested and admitted to officers that he had shot the victim on both occasions over a drug debt. McKinsey is a convicted felon having previously been convicted of possession of a controlled substance in Jefferson County, Texas, on Dec. 18, 2017. As a convicted felon, McKinsey is prohibited by federal law of owning or possessing a firearm or ammunition.
Under federal statutes, McKinsey faces up to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Matthew Quinn.
Chittenden County Man Charged as a Drug User in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Aaron Loucks, 27, of Burlington, Vermont, appeared today in court on charges that in December 2020, he possessed a firearm while being a user of controlled substances. Loucks appeared in person for the initial appearance before the Hon. John M. Conroy, U.S. Magistrate Judge, and was detained pending further proceedings in the case.
According to the complaint filed on Monday, Loucks has struggled with psychological and drug addiction issues since high school. In early December 2020, Loucks was charged by state authorities with smashing the windows of a Church Street storefront with a hammer. On December 16, 2020, Shelburne Police found Loucks in possession of a firearm. Since that incident, local police departments have received reports that Loucks was concerned about governmental actions involving COVID-19 vaccination efforts, and that he had purchased additional firearms to “protect” himself and his family. Loucks did not contest detention at this time. The Court delayed ruling on a motion for a mental health evaluation.
U.S. Attorney Nolan thanked concerned members of the community for bringing Loucks’ psychological struggles to the attention of authorities, and credited law enforcement, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Burlington Police and Shelburne Police for speedily taking steps to ensure Loucks would not be able to harm anyone. She also thanked the Vermont State Police for assisting in the federal arrest of Loucks. U.S. Attorney Nolan stated: “The mix of psychological struggles, drug use, and firearms is a particularly dangerous cocktail. We will continue to use federal gun laws where appropriate to ensure the safety of Vermonters. Although law enforcement interventions may be only a part of the overall approach where a defendant has mental health challenges, we will bring charges when necessary to promote the paramount interest in the protection of public safety.”
Kelly D. Brady, Special Agent in Charge of the ATF, Boston Field Division, joined in Nolan’s praise of law enforcement’s work in this case. He stated, “ATF will continue to work with its federal, state, and local law enforcement counterparts, in addition to our prosecutorial partners at the United States Attorney’s Office, especially when there is a credible threat to public safety involving the unlawful possession of a firearm.”
If convicted of the charged offense, Loucks could face up to ten years in prison along with a period of federal supervised release that could include requirements for mental health and substance abuse treatment. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Loucks’s personal history and characteristics.
This prosecution is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
AUSA Eugenia A. P. Cowles appeared for the government. Assistant Federal Public Defender Elizabeth Quinn appeared for Loucks.
Buffalo Man Arrested After Cocaine and A Loaded Weapon Were Found in His ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adrian Funderburk, 37, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a maximum penalty of 25 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the complaint, on January 6, 2021, the Buffalo Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, executed a state search warrant at the defendant’s residence on Wecker Street in Buffalo. During the search, investigators recovered a loaded .40 caliber pistol, approximately one ounce of suspected cocaine, a quantity of suspected marijuana, and approximately $81,000 in cash. Funderburk was taken into custody during the execution of the search warrant.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Broken Arrow Man Pleads Guilty to Assault with A Dangerous Weapon in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wesley Allan Hahn, age 37, of Broken Arrow, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Do Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151, and 1153, punishable by up to 10 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 1, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did assault K.T. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Broken Arrow Police Department and the Federal Bureau of Investigation.
The Honorable Amanda G. Maxwell, U.S. Magistrate Judge out of the United States District Court for the Western District of Oklahoma, temporarily assigned to the Eastern District of Oklahoma, presided over the hearing and accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Benjamin D. Traster represented the United States.
Bridgeport Felon Sentenced to More Than 5 Years in Federal Prison for Possessing FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on January 5, 2020, ANTONIO JOHNSON, 27, of Bridgeport, was sentenced by U.S. District Judge Stefan R. Underhill to 66 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
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, on September 2, 2017, DeWayne Joyner, also known as “Weezy,” and others stole a large quantity of heroin during an armed robbery of a narcotics stash house on Maplewood Avenue in Bridgeport. Joyner discharged two rounds from a handgun while chasing a victim of the robbery. The investigation revealed that Johnson had loaned a loaded handgun to Joyner to use during the robbery.
A subsequent court-authorized search of Johnson’s phone revealed multiple images of firearms, several of which Johnson had offered to sell or trade.
Johnson’s criminal history includes convictions for conspiring to commit robbery and witness tampering. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
One of the firearms identified in an image on Johnson’s phone was a stolen Glock pistol. Law enforcement recovered the pistol after it was used in a shooting incident committed by juveniles within the Greene Homes Housing Complex in Bridgeport on January 15, 2019.
Johnson was arrested on February 11, 2019. A search of Johnson’s residence at the time of his arrest revealed two loaded Springfield XD .40 caliber handguns, one of which had an obliterated serial number, and a Polymer80, Inc., PF90C pistol frame with a Glock-brand slide with no serial number. Analysis of one of the .40 caliber firearms connected it to a non-fatal drive-by shooting in Bridgeport on May 15, 2018.
On July 18, 2019, Johnson pleaded guilty to one count of possession of a firearm by a convicted felon.
Johnson, who had been released on bond in this case, has been detained in state custody since March 9, 2020, after a state court-authorized search of his residence revealed another loaded pistol. The state charges are pending.
Joyner was convicted in federal court of heroin distribution charges and, on September 21, 2020, was sentenced to 15 years of imprisonment.
This matter was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bridgeport Police Department, and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Boeing Charged with 737 Max Fraud Conspiracy, Agrees to Pay $2.5 Billion+Read the Press Release
The Boeing Company has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
Boeing, a U.S.-based multinational corporation that designs, manufactures, and sells commercial airplanes to airlines worldwide, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.”
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.”
“Today's deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The substantial penalties and compensation Boeing will pay, demonstrate the consequences of failing to be fully transparent with government regulators. The public should be confident that government regulators are effectively doing their job, and those they regulate are being truthful and transparent.”
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” said Special Agent in Charge Andrea M. Kropf, Department of Transportation Office of Inspector General (DOT-OIG) Midwestern Region. “This landmark deferred prosecution agreement will forever serve as a stark reminder of the paramount importance of safety in the commercial aviation industry, and that integrity and transparency may never be sacrificed for efficiency or profit.”
As Boeing admitted in court documents, Boeing—through two of its 737 MAX Flight Technical Pilots—deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. Because of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS.
Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.
In connection with this process, the FAA AEG was principally responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which contained relevant information about certain aircraft parts and systems that Boeing was required to incorporate into airplane manuals and pilot-training materials for all U.S.-based airlines. The 737 MAX FSB Report also contained the FAA AEG’s differences-training determination. After the 737 MAX FSB Report was published, Boeing’s airline customers were permitted to fly the 737 MAX.
Within Boeing, the 737 MAX Flight Technical Team (composed of 737 MAX Flight Technical Pilots) was principally responsible for identifying and providing to the FAA AEG all information that was relevant to the FAA AEG in connection with the FAA AEG’s publication of the 737 MAX FSB Report. Because flight controls were vital to flying modern commercial airplanes, differences between the flight controls of the 737 NG and the 737 MAX were especially important to the FAA AEG for purposes of its publication of the 737 MAX FSB Report and the FAA AEG’s differences-training determination.
In and around November 2016, two of Boeing’s 737 MAX Flight Technical Pilots, one who was then the 737 MAX Chief Technical Pilot and another who would later become the 737 MAX Chief Technical Pilot, discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Boeing, through these two 737 MAX Flight Technical Pilots, concealed this information and deceived the FAA AEG about MCAS. Because of this deceit, the FAA AEG deleted all information about MCAS from the final version of the 737 MAX FSB Report published in July 2017. In turn, airplane manuals and pilot training materials for U.S.-based airlines lacked information about MCAS, and pilots flying the 737 MAX for Boeing’s airline customers were not provided any information about MCAS in their manuals and training materials.
On Oct. 29, 2018, Lion Air Flight 610, a Boeing 737 MAX, crashed shortly after takeoff into the Java Sea near Indonesia. All 189 passengers and crew on board died. Following the Lion Air crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. The FAA AEG also learned for the first time about the change to MCAS, including the information about MCAS that Boeing concealed from the FAA AEG. Meanwhile, while investigations into the Lion Air crash continued, the two 737 MAX Flight Technical Pilots continued misleading others—including at Boeing and the FAA—about their prior knowledge of the change to MCAS.
On March 10, 2019, Ethiopian Airlines Flight 302, a Boeing 737 MAX, crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew on board died. Following the Ethiopian Airlines crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. On March 13, 2019, the 737 MAX was officially grounded in the U.S., indefinitely halting further flights of this airplane by any U.S.-based airline.
As part of the DPA, Boeing has agreed, among other things, to continue to cooperate with the Fraud Section in any ongoing or future investigations and prosecutions. As part of its cooperation, Boeing is required to report any evidence or allegation of a violation of U.S. fraud laws committed by Boeing’s employees or agents upon any domestic or foreign government agency (including the FAA), regulator, or any of Boeing’s airline customers. In addition, Boeing has agreed to strengthen its compliance program and to enhanced compliance program reporting requirements, which require Boeing to meet with the Fraud Section at least quarterly and to submit yearly reports to the Fraud Section regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective at deterring and detecting violations of U.S. fraud laws in connection with interactions with any domestic or foreign government agency (including the FAA), regulator, or any of its airline customers.
The Fraud Section reached this resolution with Boeing based on a number of factors, including the nature and seriousness of the offense conduct; Boeing’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and Boeing’s prior history, including a civil FAA settlement agreement from 2015 related to safety and quality issues concerning the Boeing’s Commercial Airplanes (BCA) business unit. In addition, while Boeing’s cooperation ultimately included voluntarily and proactively identifying to the Fraud Section potentially significant documents and Boeing witnesses, and voluntarily organizing voluminous evidence that Boeing was obligated to produce, such cooperation, however, was delayed and only began after the first six months of the Fraud Section’s investigation, during which time Boeing’s response frustrated the Fraud Section’s investigation.
The department also considered that Boeing engaged in remedial measures after the offense conduct, including: (i) creating a permanent aerospace safety committee of the Board of Directors to oversee Boeing’s policies and procedures governing safety and its interactions with the FAA and other government agencies and regulators; (ii) creating a Product and Services Safety organization to strengthen and centralize the safety-related functions that were previously located across Boeing; (iii) reorganizing Boeing’s engineering function to have all Boeing engineers, as well as Boeing’s Flight Technical Team, report through Boeing’s chief engineer rather than to the business units; and (iv) making structural changes to Boeing’s Flight Technical Team to increase the supervision, effectiveness, and professionalism of Boeing’s Flight Technical Pilots, including moving Boeing’s Flight Technical Team under the same organizational umbrella as Boeing’s Flight Test Team, and adopting new policies and procedures and conducting training to clarify expectations and requirements governing communications between Boeing’s Flight Technical Pilots and regulatory authorities, including specifically the FAA AEG. Boeing also made significant changes to its top leadership since the offense occurred.
The Fraud Section ultimately determined that an independent compliance monitor was unnecessary based on the following factors, among others: (i) the misconduct was neither pervasive across the organization, nor undertaken by a large number of employees, nor facilitated by senior management; (ii) although two of Boeing’s 737 MAX Flight Technical Pilots deceived the FAA AEG about MCAS by way of misleading statements, half-truths, and omissions, others in Boeing disclosed MCAS’s expanded operational scope to different FAA personnel who were responsible for determining whether the 737 MAX met U.S. federal airworthiness standards; (iii) the state of Boeing’s remedial improvements to its compliance program and internal controls; and (iv) Boeing’s agreement to enhanced compliance program reporting requirements, as described above.
The Chicago field offices of the FBI and the DOT-OIG investigated the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorneys Cory E. Jacobs and Scott Armstrong and Assistant Chief Michael T. O’Neill of the Fraud Section and Assistant U.S. Attorney Chad E. Meacham of the Northern District of Texas are prosecuting this case.
Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: [email protected] or call (888) 549-3945.
Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 BillionRead the Press Release
The Boeing Company (Boeing) has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
Boeing, a U.S.-based multinational corporation that designs, manufactures, and sells commercial airplanes to airlines worldwide, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.”
“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.”
“Today's deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The substantial penalties and compensation Boeing will pay, demonstrate the consequences of failing to be fully transparent with government regulators. The public should be confident that government regulators are effectively doing their job, and those they regulate are being truthful and transparent.”
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” said Special Agent in Charge Andrea M. Kropf, Department of Transportation Office of Inspector General (DOT-OIG) Midwestern Region. “This landmark deferred prosecution agreement will forever serve as a stark reminder of the paramount importance of safety in the commercial aviation industry, and that integrity and transparency may never be sacrificed for efficiency or profit.”
As Boeing admitted in court documents, Boeing—through two of its 737 MAX Flight Technical Pilots—deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. Because of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS.
Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.
In connection with this process, the FAA AEG was principally responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which contained relevant information about certain aircraft parts and systems that Boeing was required to incorporate into airplane manuals and pilot-training materials for all U.S.-based airlines. The 737 MAX FSB Report also contained the FAA AEG’s differences-training determination. After the 737 MAX FSB Report was published, Boeing’s airline customers were permitted to fly the 737 MAX.
Within Boeing, the 737 MAX Flight Technical Team (composed of 737 MAX Flight Technical Pilots) was principally responsible for identifying and providing to the FAA AEG all information that was relevant to the FAA AEG in connection with the FAA AEG’s publication of the 737 MAX FSB Report. Because flight controls were vital to flying modern commercial airplanes, differences between the flight controls of the 737 NG and the 737 MAX were especially important to the FAA AEG for purposes of its publication of the 737 MAX FSB Report and the FAA AEG’s differences-training determination.
In and around November 2016, two of Boeing’s 737 MAX Flight Technical Pilots, one who was then the 737 MAX Chief Technical Pilot and another who would later become the 737 MAX Chief Technical Pilot, discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Boeing, through these two 737 MAX Flight Technical Pilots, concealed this information and deceived the FAA AEG about MCAS. Because of this deceit, the FAA AEG deleted all information about MCAS from the final version of the 737 MAX FSB Report published in July 2017. In turn, airplane manuals and pilot training materials for U.S.-based airlines lacked information about MCAS, and pilots flying the 737 MAX for Boeing’s airline customers were not provided any information about MCAS in their manuals and training materials.
On Oct. 29, 2018, Lion Air Flight 610, a Boeing 737 MAX, crashed shortly after takeoff into the Java Sea near Indonesia. All 189 passengers and crew on board died. Following the Lion Air crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. The FAA AEG also learned for the first time about the change to MCAS, including the information about MCAS that Boeing concealed from the FAA AEG. Meanwhile, while investigations into the Lion Air crash continued, the two 737 MAX Flight Technical Pilots continued misleading others—including at Boeing and the FAA—about their prior knowledge of the change to MCAS.
On March 10, 2019, Ethiopian Airlines Flight 302, a Boeing 737 MAX, crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew on board died. Following the Ethiopian Airlines crash, the FAA AEG learned that MCAS activated during the flight and may have played a role in the crash. On March 13, 2019, the 737 MAX was officially grounded in the U.S., indefinitely halting further flights of this airplane by any U.S.-based airline.
As part of the DPA, Boeing has agreed, among other things, to continue to cooperate with the Fraud Section in any ongoing or future investigations and prosecutions. As part of its cooperation, Boeing is required to report any evidence or allegation of a violation of U.S. fraud laws committed by Boeing’s employees or agents upon any domestic or foreign government agency (including the FAA), regulator, or any of Boeing’s airline customers. In addition, Boeing has agreed to strengthen its compliance program and to enhanced compliance program reporting requirements, which require Boeing to meet with the Fraud Section at least quarterly and to submit yearly reports to the Fraud Section regarding the status of its remediation efforts, the results of its testing of its compliance program, and its proposals to ensure that its compliance program is reasonably designed, implemented, and enforced so that it is effective at deterring and detecting violations of U.S. fraud laws in connection with interactions with any domestic or foreign government agency (including the FAA), regulator, or any of its airline customers.
The department reached this resolution with Boeing based on a number of factors, including the nature and seriousness of the offense conduct; Boeing’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and Boeing’s prior history, including a civil FAA settlement agreement from 2015 related to safety and quality issues concerning the Boeing’s Commercial Airplanes (BCA) business unit. In addition, while Boeing’s cooperation ultimately included voluntarily and proactively identifying to the Fraud Section potentially significant documents and Boeing witnesses, and voluntarily organizing voluminous evidence that Boeing was obligated to produce, such cooperation, however, was delayed and only began after the first six months of the Fraud Section’s investigation, during which time Boeing’s response frustrated the Fraud Section’s investigation.
The department also considered that Boeing engaged in remedial measures after the offense conduct, including: (i) creating a permanent aerospace safety committee of the Board of Directors to oversee Boeing’s policies and procedures governing safety and its interactions with the FAA and other government agencies and regulators; (ii) creating a Product and Services Safety organization to strengthen and centralize the safety-related functions that were previously located across Boeing; (iii) reorganizing Boeing’s engineering function to have all Boeing engineers, as well as Boeing’s Flight Technical Team, report through Boeing’s chief engineer rather than to the business units; and (iv) making structural changes to Boeing’s Flight Technical Team to increase the supervision, effectiveness, and professionalism of Boeing’s Flight Technical Pilots, including moving Boeing’s Flight Technical Team under the same organizational umbrella as Boeing’s Flight Test Team, and adopting new policies and procedures and conducting training to clarify expectations and requirements governing communications between Boeing’s Flight Technical Pilots and regulatory authorities, including specifically the FAA AEG. Boeing also made significant changes to its top leadership since the offense occurred.
The department ultimately determined that an independent compliance monitor was unnecessary based on the following factors, among others: (i) the misconduct was neither pervasive across the organization, nor undertaken by a large number of employees, nor facilitated by senior management; (ii) although two of Boeing’s 737 MAX Flight Technical Pilots deceived the FAA AEG about MCAS by way of misleading statements, half-truths, and omissions, others in Boeing disclosed MCAS’s expanded operational scope to different FAA personnel who were responsible for determining whether the 737 MAX met U.S. federal airworthiness standards; (iii) the state of Boeing’s remedial improvements to its compliance program and internal controls; and (iv) Boeing’s agreement to enhanced compliance program reporting requirements, as described above.
The Chicago field offices of the FBI and the DOT-OIG investigated the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorneys Cory E. Jacobs and Scott Armstrong and Assistant Chief Michael T. O’Neill of the Fraud Section and Assistant U.S. Attorney Chad E. Meacham of the Northern District of Texas are prosecuting this case.
Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: [email protected] or call (888) 549-3945.
Birmingham Man Pleads Guilty to Conspiracy for Making Unapproved Drug Products in His Kitchen and WarehouseRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man today pleaded guilty to making unapproved drug products in his kitchen and warehouse, and marketing and selling them as a cancer treatment, announced U.S. Attorney Prim F. Escalona and U.S. Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
PATRICK CHARLES BISHOP, 54, pleaded guilty before U.S. District Court Judge Karon O. Bowdre to one count of conspiracy for fraudulently introducing adulterated drugs and misbranded drugs into interstate commerce. A sentencing date has been set for May 5, 2021.
According to the plea agreement, Bishop owned and operated Patrick, LLC, an entity organized in Nevada. Between 2015 and 2016, Bishop purchased, manufactured, labeled, marketed, sold, and distributed drug products purportedly containing a peptide called PNC-27. PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer, nor has PNC-27 undergone clinical trials in the United States. Bishop took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from GL Biochem, a manufacturer based in China, and used the business name Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort, and made false representations to FDA personnel and others.
Bishop paid GL Biochem more than $600,000 for the product. Bishop repeatedly assured the manufacturer that he would use the peptide solely for laboratory research purposes. But instead, he used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham. The facilities were not sterile, and did not comply with current good manufacturing practices. Customers who purchased suppositories from Bishop reported finding pieces of hair in their suppository packs.
Bishop marketed the PNC-27 drug products to alternative-medicine doctors, cancer patients, and others as an effective treatment for cancer. Bishop sold PNC-27 drug products to Hope4Cancer, a holistic cancer treatment center with clinics in Mexico. Bishop shipped the products to a location in California, and Hope4Cancer would use the products to treat patients at its Mexico clinics. Bishop also sold PNC-27 drug products to patients and others in the United States.
The maximum punishment for conspiracy is five years in prison and a $250,000 fine.
The FDA investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
Bangladeshi National Sentenced for Conspiracy to Bring Aliens to the United StatesRead the Press Release
A Bangladeshi national formerly residing in Monterrey, Mexico, was sentenced to 46 months in prison followed by three years of supervised release for his role in a scheme to smuggle aliens from Mexico into the United States.
According to the plea agreement, Moktar Hossain admitted that from March 2017 to August 2018, he conspired to bring, and did bring, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain paid drivers to transport the aliens to the U.S. border, and gave the aliens instructions on how to cross the Rio Grande river.
“The defendant was a key player in an organized smuggling network that operated for profit and preyed on Bangladeshi nationals who wanted to enter the United States illegally,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “This sentence serves as a clear deterrent to participants of such transnational criminal organizations who seek to undermine the security of our borders by illegally facilitating the travel of foreigners into the United States for a financial gain.”
“Border security and national security are one in the same,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “We must know who is coming into the country, and we cannot allow unfiltered access. My office continues to work with all our partners executing this mission.”
“The investigation, prosecution, and sentencing of Hossain is a result of HSI’s expertise in transnational investigations and unique ability to coordinate investigative efforts across international boundaries with foreign counterparts,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI will continue to work with our law enforcement partners both domestic and international to aggressively dismantle criminal travel networks that pose a threat to U.S. national security.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Patrol, U.S. Border Patrol, and the U.S. Marshals Service. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
Assistant Attorney General Eric Dreiband Announces Departure from Civil Rights DivisionRead the Press Release
Assistant Attorney General Eric S. Dreiband of the U.S. Department of Justice’s Civil Rights Division announced his departure from the department, effective Jan. 8, 2021. Dreiband has served as Assistant Attorney General since Nov. 1, 2018.
“It has been the honor of a lifetime to serve as Assistant Attorney General for the Civil Rights Division,” said Assistant Attorney General Eric S. Dreiband. “The United States of America is and must remain committed to the principle that all persons are created equal and should be judged because of their character, conduct, talent, work, and skills. Our Constitution and civil rights laws embody the ideals that all persons have worth, and are entitled to equal justice, respect, decency, peace, and safety. It is the duty of government to secure these rights, and it is the duty of the Civil Rights Division to protect all people in this nation against any violation of these rights, including hate-motivated violence, exploitation, unlawful discrimination and bigotry, and any other infringement of our Constitutional and federal civil rights. The Civil Rights Division fulfills its duty by enforcing the federal civil rights laws and seeking justice for victims. The Civil Rights Division’s enforcement of our civil rights laws also punishes lawbreakers, vindicates the rights of victims, and sends a message to the nation and the world that the United States government and its people do not tolerate illegal bigotry, discrimination, and exploitation of anyone.”
Under Assistant Attorney General Dreiband’s leadership, the career professionals of the Civil Rights Division set enforcement records and ensured that no area of civil or constitutional rights went unprotected. The division vigorously prosecuted hate crimes, including for the mass-murders at the Tree of Life Synagogue in Pittsburgh, Pennsylvania; at an El Paso, Texas Walmart where 23 innocent people were killed, and; Charlottesville, Virginia where a white supremacist drove a car into a crowd of protesters. Under Assistant Attorney General Dreiband, the Civil Rights Division filed more sexual harassment in housing lawsuits than ever; protected and sought and obtained relief for victims of racial discrimination in employment, housing, voting, lending, and other areas; held law enforcement accountable; protected U.S. workers; protected free speech, religious exercise, and other rights under the Constitution during the COVID-19 pandemic, and; filed more cases in 2020 on behalf of servicemembers than in any prior year.
Assistant Attorney General Dreiband defended civil and constitutional rights newly under threat or previously overlooked, in addition to aggressively enforcing traditional areas of civil rights protections. That record of accomplishments by the Civil Rights Division includes:
Record Response to Instances of Law Enforcement Misconduct. The Civil Rights Division prosecutes those law enforcement officers who betray the public trust by violating constitutional or other federally-protected rights. In 2019, the division prosecuted more of these criminal cases than ever in its history. These cases typically involved instances of excessive force by police or corrections officers.
Highest Number of Hate Crimes Cases in Decades. Federal law prohibits hate crimes involving physical harm and criminal threats motivated by the victims’ protected traits, such as religion, sex, sexual orientation, gender identity, race, or disability. Under Dreiband’s leadership, federal prosecutors fully and fairly enforced these protections. In 2020, the number of hate crime cases charged by the division was the highest in two decades.
Racial Justice. As to racial discrimination, the division has brought and successfully resolved cases involving racial discrimination in employment by local governments, including law enforcement agencies under Title VII of the Civil Rights Act of 1964; racial discrimination in housing, including racial steering, under the Fair Housing Act; racially discriminatory lending under the Fair Housing Act and the Equal Credit Opportunity Act; race discrimination in voting under the Voting Rights Act; and to allow high school students to apply to college without illegal discrimination under the Constitution and the Civil Rights Act of 1964 based on the color of their skin.
Record Number of Sexual Harassment Cases. In 2020, the Civil Rights Division filed more sexual harassment lawsuits against landlords than in any prior year. The division also successfully prosecuted sexual harassment cases against state and local government employers, including on behalf of female firefighters, and against public schools and universities.
Protecting Religious Liberty. Under the Civil Rights Division’s Place to Worship Initiative, the division significantly increased the number of lawsuits and investigations protecting the right of religious worship of Buddhists, Christians, Hindus, Jews, Muslims, Native Americans, and others. Combatting anti-Semitism, including in the form of hate crimes, was also a priority. In the Supreme Court of the United States, the division contributed to victories for religious liberty including the rights of religious employers, such as Catholic schools, and the right to attend parochial schools free of religious discrimination in scholarship programs.
Prison Reform. The Civil Rights Division during Dreiband’s tenure investigated, litigated, and successfully resolved cases that involve reforms of state and local prisons and jails. These include cases involving alleged pattern or practice violations of the Constitution against a state prison system for men for guard-on-prisoner excessive force, prisoner-on-prisoner violence, and sexual abuse; state prisons for sexual abuse of female prisoners; state prisons and local jails for excessive force against prisoners; the failure of juvenile justice systems to keep youth reasonably safe from youth-on-youth violence, and; other violations of the Constitution and other federal rights.
Protecting U.S. Workers. The division’s Protecting U.S. Workers Initiative, which combats employers who abuse temporary foreign visa programs (e.g., H-1 or H-2 visas) by discriminating against U.S. Workers, secured back pay to affected U.S. workers and civil penalties and recently filed a case against a major social media company for its alleged abuse of the temporary visa program.
Increased Resources to Fight Human Trafficking. Under Dreiband’s leadership, the division significantly increased the number of prosecutors who are dedicated to prosecuting the modern-day slavery of human trafficking — both in the commercial sex industry and as to forced labor. The division and its U.S. Attorney partners brought over 700 human trafficking cases in recent years.
Disability Rights. During Dreiband’s tenure, the division successfully investigated, litigated, and settled hundreds of disability-rights cases. A few examples illustrate this important work. The division reached major settlements with West Virginia to reform its children’s mental health system; Amtrak to make its train stations accessible to individuals with disabilities; North Dakota to end unnecessary segregation of individuals with physical disabilities, and; Harris County, Texas to provide accessible voting to voters with disabilities. The division also successfully tried to verdict a lawsuit against the State of Mississippi that alleged that Mississippi violates the Americans with Disabilities Act by unnecessarily segregating people with mental illness in its state hospitals and placing people with mental illness at serious risk of hospitalization as a result of insufficient community-based services. The Civil Rights Division also defended in court protections against coercive abortions for women and their unborn children who are diagnosed with Down’s syndrome.
COVID-19 Restrictions. Because there is no pandemic exception to the Constitution and our civil rights laws, the Civil Rights Division successfully fought unlawful pandemic-related restrictions that infringe on individual liberties, including First Amendment rights to free speech and free exercise of religion, in numerous jurisdictions across the nation.
Acting United States Attorney Bubar, FBI Special Agent in Charge Archey Condemn Yesterday’s Violence in Washington D.C.Read the Press Release
ROANOKE, Virginia - Acting United States Attorney Daniel P. Bubar and FBI Special Agent in Charge David W. Archey jointly announced today their condemnation of violence during yesterday’s events in Washington D.C. and request information regarding individuals involved in potential criminal acts of violence.
“We strongly condemn the violence carried out by rioters yesterday at the U.S. Capitol, which was a reprehensible attack on our democracy,” Acting U.S. Attorney Bubar said. “Here in the Western District of Virginia, we are quite familiar with the use of the federal Anti-Riot Act, and are working with our law enforcement partners to identify and prosecute any individuals that traveled from the Western District of Virginia to Washington, D.C. to commit violent criminal acts in furtherance of these riots. We will continue to carry out our mission to support and defend the Constitution and the rule of law, undeterred.”
If you have any information, tips, or digital media identifying persons or depicting rioting and violence at the U.S. Capitol Building or its surrounding area yesterday, please visit fbi.gov/USCapitol or call 1-800-CALL-FBI. If you have any information identifying persons who traveled from within the Western District to Virginia and engaged in such violence, please reach out to FBI’s Richmond Division at 804-261-1161.
Accountant Who Aided Worldwide Scam Charged with Small Business Administration Loan FraudRead the Press Release
Miami, Fl. -- A former accountant who assisted in a scam involving valuable artwork and a Swiss bank account has been charged in connection with a scheme to fraudulently obtain a Small Business Administration (“SBA”) loan.
Daniel Gibson, 57, of Marlboro, New Jersey, was charged today by Information with one count of conspiracy to commit bank fraud, announced United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, Special Agent in Charge for the FBI Miami Field Office George L. Piro, Acting Special Agent in Charge for the IRS Criminal Investigation Miami Field Office Tyler R. Hatcher, and Special Agent in Charge for the FDIC, Office of Inspector General Kyle A. Myles.
According to court documents, 1 Global Capital LLC was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates beginning in or around 2013. Gibson was a certified public accountant licensed in the State of New York who served as the accountant for 1 Global, 1 Global’s former chairman, and a number of businesses owend and operated by 1 Global’s former chairman.
The Information alleges that in 2011, 1 Global’s former chairman took out an approximately $3 million loan backed by the SBA, purportedly to be used as working capital for a nutraceutical business that he owned at the time. 1 Global’s former chairman and his wife were required to personally guarantee the SBA loan in full.
From about 2013 to 2018, Gibson and 1 Global’s former chairmain misrepresented to the SBA that the nutraceutical company failed as a business and that 1 Global’s former chairman had no other assets or income to make his payments on the SBA loan. According to the Information, Gibson and 1 Global’s former chairman concealed from the SBA certain assets and income that could have been used to repay the loan, including: (a) money that 1 Global’s former chairman received from 1 Global beginning in 2013, which totaled hundreds of thousands of dollars during the period in question; (b) valuable artwork that belonged to 1 Global’s former chairman; and (c) an offshore Swiss bank account in the name of and controlled by 1 Global’s former chairman, containing at one point over $1 million. Acccording to the Information, the SBA is currently owed $1,783,019.14 on this loan.
FBI Miami, IRS-CI Miami, and FDIC-OIG investigated the case. Special Assistant U.S. Attorney for the Southern District of Florida Elizabeth Young is prosecuting it, together with DOJ Criminal Division Fraud Section Trial Attorneys Jerrob Duffy, Lisa H. Miller, and L. Rush Atkinson. Assistant U.S. Attorney for the Southern District of Florida Nicole Grosnoff is handling asset forfeiture.
You may find a copy of this press release and more information about the United States Attorney’s Office for the Southern District of Florida at its website: www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20009.
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20th MS-13 member pleads guilty in violent racketeering conspiracyRead the Press Release
COLUMBUS, Ohio – A local man pleaded guilty in federal court in Columbus this morning to participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.
In his plea, Juan Flores-Castro (also known as Juan Pablo Guerra-Flores and “Duende”), 32, of Columbus, accepts responsibility for committing murder and trafficking cocaine and marijuana on behalf of MS-13.
Parties involved in Flores-Castro’s case have recommended a sentence of 35 to 40 years in prison.
The defendant is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the twentieth defendant to plead guilty.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
Among other crimes, Flores-Castro is charged for his role in the December 2016 murder of Salvador Martinez-Diaz, a suspected rival 18th Street gang member. According to court documents, this homicide was carefully planned. Just after 3am on Dec. 4, 2016, MS-13 members waited outside the apartment of Martinez-Diaz and opened fire on him with pistols, shooting him multiple times and killing him. The members of the transnational gang then disposed of evidence of their crime. Flores-Castro admitted that he and other co-conspirators conducted surveillance of the victim, followed him home, and were in contact with the shooters in the moments leading up to the murder.
Flores-Castro pleaded guilty to one count of conspiracy to commit racketeering.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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6 January 2021
Westbrook Man Sentenced for Child Sexual Exploitation OffenseRead the Press Release
PORTLAND, Maine: A Westbrook man was sentenced today in federal court for distributing images of child sexual exploitation, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Tyler Garnett, 23, to 78 months in prison and 10 years of supervised release. Judge Woodcock also ordered Garnett to pay a total of $12,000 in restitution to four victims depicted in images Garnett possessed. Garnett pleaded guilty on February 25, 2020.
According to court records, in July 2018, Garnett used the social media application Kik Messenger to chat over the internet with another Kik user. During the chat, Garnett sent several images that depicted minors engaged in sexually explicit conduct.
Later in 2018, the Westbrook Police Department investigated a CyberTip provided by the National Center for Missing and Exploited Children regarding child pornography that had been uploaded to another social networking service. The IP address used to upload the child pornography was assigned to Garnett’s residence in Westbrook. Detectives interviewed Garnett in December 2018. He admitted uploading the images that were the subject of the CyberTip and using Kik Messenger to find child pornography. He consented to a search of his mobile telephone, which contained numerous images and videos depicting minors engaged in sexually explicit conduct. The phone also contained evidence of Kik chats in which Garnett distributed child pornography images.
The Westbrook Police Department, the Maine State Police Computer Crimes Unit and the FBI investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vivint Smart Homes Inc. to Pay $3.2 Million to Resolve Allegations of False Statements to Federally Insured BankRead the Press Release
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.
U.S. Attorney's Office for the Eastern District of Tennessee Collects $7,442,571.29 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
KNOXVILLE, Tenn.– United States Attorney J. Douglas Overbey announced that the Eastern District of Tennessee collected $7,442,571.29 in criminal and civil actions in Fiscal Year (FY) 2020. Of this amount, $2,581,550.52 was collected in criminal actions and $4,861,020.77 was collected in civil actions. U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit stating, “The men and women of the U.S. Attorney’s Office continue to work diligently to ensure East Tennesseans receive justice. The money recovered for victims of crime and taxpayers is the direct result of the hard work and commitment our Assistant U.S. Attorneys dedicate to the wellbeing of this community.”
Highlights of the Eastern District of Tennessee’s FY 2020 collections effort include:
- A $1,500,000 civil settlement with Retina Associates to resolve False Claims Act Allegations in February 2020.
- Sylvia Hofstetter was found guilty and sentenced for her role in operating pill mills in East Tennessee. She was also ordered to forfeit $3.6 million in ill-gotten gains.
- $555,000 in criminal restitution was collected from five defendants involved in a pain cream scheme fraud case. All five defendants were convicted for their roles in defrauding both private and government insurance programs.
- In November, 2020, as part of her sentence, Cheryl Broussard was required to forfeit $106,000, which represented the proceeds of her defrauding a National Women’s Sorority as part of an investment management scheme. In addition, Broussard was ordered to pay $106,000 in restitution to her victims.
- $132,343.50 in criminal restitution was collected from a former Controller, Shain Chappel, who was sentenced for an embezzlement scheme in July 2020.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.
Nationwide, the United States Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020, ending September 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorney’s Offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
The largest civil collections in FY 2020 were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud, other misconduct, or collected fines imposed upon individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
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Tyngsborough Police Officer and Chinese National Charged with Violations of National Firearms ActRead the Press Release
BOSTON – A Tyngsborough police officer and a Chinese national were arrested today and charged with firearms violations.
Daniel Whitman, 36, of Pelham, N.H., and Bin Lu, 49, a Chinese national residing in Westford, were charged by criminal complaint with conspiracy to violate provisions of the National Firearms Act (NFA) by making, possessing and failing to register short-barreled rifles, as well as possessing a suppressor without proper registration. The defendants will make initial appearances today in federal court in Boston.
According to the charging documents, Whitman is currently a full-time police officer with the Tyngsborough Police Department and the owner and principal manager of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. Whitman maintains a Type 01 Federal Firearms License (FFL) which allows for buying, selling, transferring and gunsmithing (i.e. servicing, of firearms), but does not permit manufacturing of any type of firearms. Lu is listed on the FFL as a manager of Hitman Firearms and is also an investor in the store.
It is alleged that Lu and Whitman sought to build a large indoor shooting range, Freedom Alley Shooting Sports (FASS), which would serve regional and international customers, and offer shooting clinics and other services using funding from Chinese investors. On several occasions, Lu and Whitman did run firearms training camps, consisting of shooting and tactics trainings, for Chinese tourists. Providing such trainings to foreign nationals requires a license from the U.S. Department of State, which Whitman and Lu never applied for nor received.
Whitman and others allegedly recorded videos on a YouTube channel operated by Lu that promotes Hitman Firearms, FASS and the training camps.
The purpose of the NFA is to regulate transactions of certain firearms, which are deemed to be more dangerous, by regulating the manufacture, possession and registration of certain firearms including short-barreled rifles (SBRs), suppressors, short-barreled shotguns and machineguns. The NFA requires registration of all NFA firearms in the National Firearms Registration and Transfer Record (NFRTR). The NFA further prohibits an FFL who is not properly registered from manufacturing or changing a firearm that originally was not an NFA weapon to create an NFA weapon.
According to the criminal complaint, Hitman Firearms does not possess the required license to manufacture, or NFA status to possess, firearms regulated by the NFA. Nevertheless, Whitman and Lu allegedly possessed and manufactured items that are covered by the NFA, including a short-barreled rifle and suppressor.
Specifically, during a search of Hitman Firearms, a complete CMMG MK9 rifle was found in the store. The shop’s acquisition and disposition record (a/k/a A&D book) indicated that the rifle was acquired from another store in March 2016 as a lower receiver only. The investigation determined that the seized firearm is an SBR since it has an 8.625 riffle barrel and a collapsible stock. It is alleged that neither Whiteman nor Lu registered the firearm as an SBR in the NFRTR.
During the search, Lu arrived at the shop and gave federal agents permission to search the vehicle he was driving. The vehicle contained several firearms including a Sig Sauer MCX with a folding stock attached. The shop’s A&D book indicated that the firearm was acquired from another store as a pistol. However, at the time it was recovered from Lu’s vehicle, the firearm had a stock attached to the rear, which made the weapon into a rifle. The firearm was never registered as an SBR in the NFRTR. According to the charging document, at the time of the search, Lu stated that “Dan” put the stock on the end, thus making the pistol into a rifle.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of Diplomatic Security Service in Boston; and Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement today. Assistance was provided by the Massachusetts State Police. Assistant U.S. Attorney Eugenia M. Carris and Neil Gallagher of Lelling’s Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two North Carolina Men Charged in Gunpoint Robbery of Puppies from Lancaster County BreederRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Christopher Lamont Stimpson, Jr., 22, and Wilbert Curtis Trey Artis, III, 29, both of Greensboro, North Carolina, were arrested and charged by Indictment with robbery which interferes with interstate commerce, interstate transportation of stolen goods, and aiding and abetting, as a result of their alleged October 29, 2020 gunpoint robbery of a Lancaster County puppy breeder and theft of five French Bulldog puppies [see attached photo] valued at more than $23,000.
Stimpson and Artis are charged with posing as customers seeking to purchase five French Bulldog puppies allegedly in order to steal the puppies at gunpoint. One of the victims recorded the registration of the defendants’ getaway vehicle, which was traced back to a rental company in Greensboro, North Carolina. According to court documents, a customer of the breeder who had also been interested in purchasing one of the puppies later discovered an Instagram posting which featured a video and a photograph of the puppies, as well as photographs of Stimpson and Artis.
On December 8, 2020, both defendants were arrested by the Greensboro (North Carolina) Police Department on the bench warrants which had been issued in the Eastern District of Pennsylvania. On January 4, 2021, during a virtual initial appearance in the Eastern District of Pennsylvania before the United States Magistrate Judge Henry S. Perkin, Stimpson was ordered to home confinement pending trial. Artis made a virtual initial appearance before Judge Perkin today and was ordered to home detention pending trial.
“Robbery at gunpoint is always a severe crime, and in this case the defendants are charged with stealing living creatures at gunpoint – puppies - and transporting them across state lines,” said First Assistant U.S. Attorney Williams. “These are serious federal offenses which will be strenuously prosecuted by this office. We are thankful to our partners here in Pennsylvania and in North Carolina for their swift investigation and apprehension of these defendants.”
“This wasn't just some dognapping caper, it was a violent armed robbery that saw the victim menaced at gunpoint,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “We're glad the FBI and our partners could help safely recover the pups, and determined to see the perpetrators held accountable.”
“The quick apprehension of these individuals is a prime example of how well interagency cooperation between municipal and federal law enforcement agencies work,” said Ephrata Police Department Chief John E. Petrick. “The Project Safe Neighborhoods program allows for a law enforcement agency to coordinate an investigation with other law enforcement partners hundreds of miles away without delay.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, each defendant faces a maximum possible sentence of 30 years’ in prison and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Ephrata Police Department, and the Greensboro (NC) Police Department, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Inmates Sentenced for their Role in Two Separate Incidents at FCC PollockRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that three inmates who were housed at the Federal Correctional Complex in Pollock, Louisiana, have been sentenced by United States District Judge Dee D. Drell for their involvement in illegal incidents that took place at the complex.
Federal Prison Inmates Sentenced for Assaulting another Inmate
Eulogio Banda-Chavez, 29, and Gerardo Ramirez, 33, were each sentenced on one count of assault resulting in serious bodily injury. Banda-Chavez was sentenced to 60 months (5 years) in prison followed by 1 year of supervised release. Ramirez was sentenced to 45 months (3 years, 9 months) in prison followed by 1 year of supervised release.
On June 28, 2019, Banda-Chavez and Ramirez, beat another inmate about his head and body with their fists and feet causing serious bodily injuries. The incident was recorded on a prison surveillance camera focused on the recreation yard. Both inmates admitted to committing the offense and pled guilty on September 24, 2020.
At the time of the offense, Banda-Chavez, a Mexican national, was serving an 18-month sentence for illegal reentry of a removed alien after felony, while Ramirez was serving a 168-month sentence for possession with intent to distribute 500 grams or more of methamphetamine.
Pollock Inmate Sentenced for Possessing Contraband
William Joseph Vincent, 30, was sentenced to 27 months (2 years, 3 months) in prison followed by 1 year of supervised release for possessing contraband in prison. On October 15, 2019, a correction officer performing a routine pat search of Vincent found an illegal prison shank hidden in his front pants pocket. Vincent pled guilty to the charge on September 30, 2020.
At the time of the offense, Vincent was serving a 92-month sentence for conspiracy to possess with intent to distribute heroin.
The FBI and BOP conducted these investigations and Assistant U.S. Attorney Mike Shannon prosecuted the cases.
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Texas Man Sentenced to 2½ Years in Prison for Scheming to Create Fake Airline Employee IDs to Fraudulently Obtain Free FlightsRead the Press Release
LOS ANGELES – A former Mesa Airlines employee was sentenced today to 30 months in federal prison for conspiring to fraudulently obtain nearly 2,000 free flights for himself and others on Spirit Airlines and to manufacture counterfeit Mesa employee identification badges.
Hubbard Bell, 32, of Houston, Texas, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $150,000 in restitution to the victim, Spirit Airlines. Bell, this case’s lead defendant, pleaded guilty in September 2020 to one count of conspiracy to commit wire fraud.
From June 2015 to October 2015, Bell worked at the Phoenix-based Mesa Airlines, a regional air carrier. While employed at Mesa, Bell was provided access to free Spirit Airlines tickets as a benefit he was permitted to use only while employed at Mesa. To book a free ticket on Spirit, a Mesa employee entered their personal identifying information and a unique verification code.
After Mesa Airlines terminated Bell’s employment, from February 2016 to November 2017, he conspired with others to sell the stolen and unauthorized information of Mesa employees – including their names, dates of hire, and employee identification numbers – that were needed to book free flights on Spirit Airlines through Spirit’s web portal for themselves and others.
Bell unlawfully used his Mesa employee information to book 34 free flights for himself on Spirit Airline, which allowed him to fly interstate, including into and out of Los Angeles International Airport, despite the fact Mesa Airlines no longer employed him. Bell also admitted he and his co-conspirators manufactured and sold fraudulent Mesa employee identification cards for use by the fraudulent travelers.
In total, the investigation into Bell and his co-conspirators has identified 1,953 flights that were connected to this scheme, flights that were booked for someone that did not match the Mesa Airlines employee whose information was used to book the free flight. The court found the loss to Spirit Airlines was approximately $150,000.
The case’s other defendants – Kamille Jemison, 28, a former Houston resident who subsequently relocated to the Beverly Grove district of Los Angeles; Alphonso Lloyd, 27, of Houston; Femi Felix-Ukwu, 40, of Hartford, Connecticut; Arnold Nichols, 32, of Houston; and Monique Ferguson, 32, of Houston – have pleaded not guilty to criminal charges in a superseding indictment returned in March 2019. They are scheduled to go on trial on April 13.
The case was investigated by the FBI, who received substantial assistance from the Federal Air Marshal Service and the Transportation Security Administration.
This case is being prosecuted by Assistant United States Attorneys Poonam G. Kumar of the Major Frauds Section and Joseph D. Axelrad of the Violent and Organized Crime Section.
Statement on the violence at the nation’s Capitol BuildingRead the Press Release
“The violence at the United States Capitol was reprehensible. It adds nothing of value to important public discourse. While peaceful protests are protected by our nation’s constitution, violence is not. I support the right to peacefully assemble. I also was sworn to uphold the rule of law. Those who violated the law in the nation’s capital today should and will face the justice system,” said Bill Powell, U.S. Attorney, Northern District of West Virginia.
Statement by U.S. Attorney John H. Durham on Officer-Involved Shooting in HartfordRead the Press Release
New Haven – “This morning, an individual was shot and killed on Enfield Street in Hartford during an exchange of gunfire with members of an FBI-led joint task force who were on the scene to arrest another individual on a federal criminal complaint. The Connecticut State Police and the Federal Bureau of Investigation’s Inspection Division are jointly investigating this matter in coordination with the New Haven State’s Attorney’s Office and the U.S. Attorney’s Office.”
Suspect in String of Robberies Sentenced in Federal CourtRead the Press Release
TAYLOR ROSS WARDELL, 29, of Cheyenne, was sentenced today by Federal District Court Judge Alan B. Johnson to eighty-four months in federal prison for a series of robberies committed in Cheyenne and Laramie in 2019.
Wardell was indicted in March 2020 and pleaded guilty to four counts of interfering with commerce by robbery in U.S. District Court on October 28, 2020. The first robbery occurred on on August 14, 2019 at Silver Mine Subs sandwich shop in Cheyenne. Within a few hours of committing that robbery Wardell robbed the Loaf N Jug on Lincolnway in Cheyenne. Eleven days later he would rob another store, this time in Laramie. Wardell’s robbery spree culminated on September 9, 2019 with the robbery of Vino’s Wine and Spirits in Cheyenne.
Wardell admitted he is, in fact, guilty of interfering with commerce by robbery as alleged by the United States. As part of his sentence, Wardell was ordered to pay restitution the victims of the robberies. He also received a three-year term of supervised release upon his release from prison.
These crimes were investigated by the Cheyenne Police Department, Laramie Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The government was represented by Assistant United States Attorney Timothy J. Forwood.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Rochester Woman Pleads Guilty to Defrauding Credit UnionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Trisha Cassidy, 55, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to bank fraud. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that on February 20, 2018, the defendant opened a checking account at a branch of Summit Federal Credit Union located within the Western District of New York. Between February 20 and March 30, 2018, Cassidy executed a scheme attempting fraudulently to obtain money from the credit union. The defendant presented checks for deposit into her account that she knew had been altered without the payer's knowledge or permission. Alterations to checks included changes to the payee’s name and the dollar amount of checks. During the course of the scheme, Cassidy attempted to obtain a total of $154,756.05 in funds, with the credit union suffering a loss of $45,367.50.
The plea is the result of an investigation by the U.S. Department of Treasury, Office of Inspector General, under the direction of Assistant Inspector General for Investigations Sally Luttrell.
Sentencing is scheduled for April 13, 2021, before Judge Larimer.
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Pittsburgh Felon Charged with Possession of a Destructive Device after Throwing a Homemade Explosive from a Moving Vehicle in Pittsburgh’s Lawrenceville NeighborhoodRead the Press Release
PITTSBURGH – A Pittsburgh man has been charged federally with illegal possession of an unregistered destructive device and being a felon in possession of a destructive device after throwing an incendiary device from a moving vehicle on January 3, 2021 in Pittsburgh’s Lawrenceville neighborhood, United States Attorney Scott Brady announced today.
Charles Baker, 33, of Pittsburgh, Pennsylvania, is charged by criminal complaint with knowingly and unlawfully possessing a firearm, that is, a destructive device, which was not registered to him in the National Firearms Registration and Transfer Record. In addition, Baker, who has previous felony convictions, is charged with being a felon in possession of a firearm, in this case a destructive device. Baker surrendered to law enforcement on Tuesday evening. He will make his initial appearance in U.S. District Court in Pittsburgh today at 2:30 p.m. via video teleconference.
"Our city is safer today thanks to the rapid response by the Pittsburgh Police and ATF, who worked tirelessly to identify and apprehend Charles Baker," said U.S. Attorney Brady. "Acts of wanton violence will be met with the swift hand of justice."
"It goes without saying that possessing and detonating illegal explosive devices is a crime that ATF and our law enforcement partners take very seriously," said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. "ATF along with the Pittsburgh Bureau of Police and all our other local, state and federal partners will continue to investigate violent crimes which threaten the safety of our communities."
"Once again the trusted partnership and vigorous level of cooperation between the Pittsburgh Bureau of Police, the ATF, and all of our federal and local law enforcement partners has resulted in the swift flow of information and the administration of justice," said Pittsburgh Police Chief Scott Schubert. "We are also grateful for the assistance from residents of the City of Pittsburgh who are also committed to keeping our city safe."
According to the complaint, the explosion occurred in the 3600 block of Penn Avenue in Pittsburgh’s Lawrenceville neighborhood. It caused damage to an unoccupied, parked white 2020 Subaru Forester. That damage included partial dislodging of the rear passenger side quarter panel, breaking off and dispersing plastic material from the rear portion of the vehicle, and causing several nails from the device to penetrate the surface of the passenger side rear tire. As explained in the complaint, when items such as nails or other small metal pieces that would serve as projectiles are added to bombs, those items can cause harm and are evidence that those devices were designed as weapons.
The post-blast scene was initially processed on January 3, 2021, by Pittsburgh Bureau of Police (PBP) and several items of evidentiary value were recovered that were believed to be used in constructing the device. These items include fragments of a Twisted Tea can, green cloth possibly from a Crown Royal bag, dozens of nails/screws, car parts, and a white powdery substance. These items were submitted to the Allegheny County Forensic Lab for testing.
PBP also obtained video from a neighboring residence which showed an older model Chevy Silverado truck driving westbound on Penn Avenue. As the Silverado passed by the Forester, a device was thrown from the passenger window of the Silverado and landed in the rear passenger area of the Forester. When the device was thrown from the Silverado, it was burning in a manner consistent with an improvised initiation system or wick. The device continued to burn and generate smoke for approximately 20 seconds from the time it was thrown from the Silverado until the time it exploded.
The Silverado was captured on various cameras operated by the City of Pittsburgh as well as cameras positioned on homes in the area. This distinctive looking truck was captured on a license plate reader and the vehicle’s registered owners were identified.
A separate video was obtained from a residence on Ligonier Street that shows the distinctive looking Silverado traveling southwest on Ligonier Street and making a right-hand turn into a parking lot adjacent to the Trinity Mission Baptist Church at approximately 8:56 p.m., within one minute of the explosion. Two individuals were captured on camera coming from the vicinity of the parked Silverado. The individuals both appear to be white males. One is noticeably taller than the other. The two individuals exited the parking lot where the Silverado was parked and walked towards the vicinity of Ligonier Street. As the two individuals were walking across Ligonier Street, the camera captured one individual say something to the effect of "so it didn’t even go off," as the other laughs. At approximately 9:21 p.m., the shorter individual with the hooded sweatshirt and reflective sneakers was seen running from the vicinity of Ligonier Street towards the parked Silverado. At approximately 9:32 p.m., the Silverado exited the church parking lot.
On Monday, January 4, 2021, ATF Special Agents received information that the taller of the two suspects seen on the video is Charles Baker, who lives on the third floor of a residence on Ligonier Street and has a history of making homemade explosive devices.
ATF conducted a query of Baker’s criminal history and learned that he was convicted of several offenses that would prohibit him from possessing firearms and ammunition to include the following felonies: Burglary (convicted August 8, 2011), Conspiracy to Commit Burglary (convicted August 8, 2011), Criminal Trespass-Break Into Structure (convicted February 15, 2018), and Manufacture, Delivery, or Possession with Intent to Manufacture or Deliver a
Controlled Substance (convicted February 15, 2018). For the last conviction, Baker received a sentence of nine – 18 months’ imprisonment.
On January 4, 2021, at approximately 8:50 p.m., ATF Special Agents conducted surveillance at a home and observed the Silverado parked at a private residence. ATF Special Agents observed cosmetic changes to the appearance of the vehicle, however, the license plate was still attached to the vehicle.
ATF obtained Pennsylvania driver’s licenses for the two registered owners of the suspect Chevy Silverado and through a driver’s license photo identified one of the owners as the shorter of the two individuals seen crossing Ligonier Street and the driver of the Chevy Silverado during this incident.
On January 5, 2021, a federal search warrant was obtained to search Baker’s residence, located on Ligonier Street, Pittsburgh, PA, 15201; (2) the residence of one of the owners of the Silverado; and (3) the Silverado truck used in the bombing.
The search warrants were executed on January 5, 2021, at approximately 2:30 p.m. Baker was not home at the time of the search warrant execution. The owner of the Silverado was home at the time of the search warrant execution. He agreed to speak to law enforcement and informed law enforcement that Baker asked him for a ride on January 3, 2021, and that once in the vehicle while they were driving on Penn Avenue, Baker pulled out some type of device, lit the device with a lighter and threw it out the window.
It is unlawful for an individual to manufacture, possess, or transfer a Destructive Device without first being registered in ATF’s National Firearms Transfer Record (NFA) registry and without serial numbers being issued for said NFA Weapons (i.e.; Destructive Devices). Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The counts charged in the criminal complaint carry a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.
U.S. Attorney Brady credited the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police, for conducting the investigation leading to the charges in this case.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case for the government.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Police Officer Sentenced to 14+ Years in Prison for Distributing Child Pornography While on DutyRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that James Strohm, 49, of Philadelphia, PA, a 20-year veteran of the Philadelphia Police Department, was sentenced to 172 months in prison, 20 years of supervised release, and ordered to pay $79,000 in restitution and more than $27,000 in special assessments by United States District Court Judge Gerald A. McHugh for possession and distribution of child pornography.
In July 2019, the defendant pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography. The charges against Strohm stemmed from a tip submitted to the National Center for Missing and Exploited Children from a gaming and social networking application about a user account, “fungirl12321,” containing thousands of images depicting child pornography. A phone number and IP address connected to the account were associated with the defendant. Investigators then determined that Strohm was viewing, downloading and distributing child pornography, including during hours when he was officially working as a Philadelphia Police Officer.
“The defendant abused his position of power and trust by distributing images involving the sexual exploitation of children, some as young as infants,” said First Assistant U.S. Attorney Williams. “James Strohm not only committed these crimes from his home, but also, abhorrently, while on duty as a police officer. He will now spend years behind bars where he will be unable to exploit the suffering of children any longer.”
“James Strohm was viewing child sexual abuse material while employed as a police officer, at times even from police workspace,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “He violated his sworn oath and broke the law in a particularly disturbing way. Today's sentencing sends a message that, no matter who you are, if you're perpetuating the exploitation of children by seeking and trading this horrific content, the FBI will step in, put a stop to it, and see you brought to justice.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Meaghan A. Flannery.
Pennsylvania Man Sentenced for Conspiracy to Commit Arson and Defraud Insurance Company of More than $100,000Read the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that Jason Gusoff, 45 years old, of Richboro, PA was sentenced today by United States District Court Judge C. Darnell Jones, II, to 60 months in prison followed by three years of supervised release, and ordered to pay $105,486 in restitution for conspiring to destroy his business by arson in order to collect insurance proceeds.
In 2008, Gusoff enlisted a co-conspirator to set fire to Gusoff’s business, California Tanning Salon, located on Roosevelt Boulevard in Philadelphia. Once the damage was caused, Gusoff submitted requests for payment to the business’ insurance company while making materially false representations that he was not responsible for the loss caused by the fire. These false representations resulted in Gusoff receiving $105,486 from the insurance company.
The defendant was indicted for the crime in February 2011 but then fled the United States prior to trial. In February 2019, thanks to the coordinated efforts of the Cambodian Police, the United States Marshal Service (USMS), the Diplomatic Security Service (DSS), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the defendant was captured in Cambodia and promptly returned to the Eastern District of Pennsylvania to answer to his crimes.
“If you are charged with a federal crime in the Eastern District of Pennsylvania, you will not be able to evade justice by fleeing to another country,” said First Assistant U.S. Attorney Williams. “We will find you and hold you accountable for your actions. In this case, the defendant was captured, convicted, and will spend five years behind bars.”
“Arson is a violent crime which ATF takes very seriously,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The capture and subsequent sentencing of Gusoff exemplifies the dedication of ATF and the United States Attorney’s office to fully prosecute those individuals who commit acts of arson.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Otsego County Woman Pleads Guilty to Stealing from School DistrictRead the Press Release
ALBANY, NEW YORK – Kristina Hand, age 47, of Morris, New York, pled guilty today to stealing at least $34,000 from her former employer, the Morris Central School District.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Hand pled guilty to two counts of federal program theft, for stealing from a school district that received federal funds.
From 2014 through February 2020, Hand was the Treasurer for the Morris Central School District in Otsego County. In pleading guilty, she admitted that she stole about $24,000 by depositing checks payable to the school district into bank accounts that she controlled. She also admitted to stealing at least $10,000 more by using the school district’s Amazon account and credit cards to purchase items for her personal use.
Senior United States District Judge Thomas J. McAvoy is scheduled to sentence Hand on May 11, 2021. She faces up to 10 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release. 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. Hand has also agreed to pay $34,000 in restitution to the school district.
This case was investigated by the FBI, New York State Police, and the Office of the New York State Comptroller, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Onslow County Gang Member Receives More Than 9 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Cyle Norris, 30, of Onslow County, was sentenced on January 5, 2021, to 112 months imprisonment for: (1) conspiracy to distribute and possess with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine; and (2) distribution of a quantity of a mixture and substance containing methamphetamine.
The evidence presented during the sentencing hearing revealed that on December 20, 2019, Norris sold a quantity of methamphetamine to an undercover officer working with the Onslow County Sheriff’s Office in the Richlands, N.C. area. The investigation further revealed that between August 2018 and the time of his arrest, Norris possessed and/or distributed more than 250 grams of methamphetamine. According to law enforcement, Norris was also a member of a violent gang.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint federal, state, and local investigation targeting a multi-State drug trafficking organization that has been responsible for the distribution of large quantities of extremely pure methamphetamine in Onslow County and throughout the United States. OCDETF cooperative investigations are the nation’s primary tool for disrupting and dismantling national and regional level drug trafficking organizations.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, with assistance from the Onslow, Duplin and Craven County Sheriff’s Offices and the Beaufort and Kinston Police Departments. 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-00075-FL-1.
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Omaha Man Sentenced for Robbery SpreeRead the Press Release
United States Attorney Joe Kelly announced that Darrell L. Manley, 19, of Omaha, Nebraska, was sentenced today in federal court in Omaha for his involvement in numerous robberies, some involving firearms, occurring between July and September 2019. United States District Judge Brian C. Buescher sentenced Manley to 18 years in the Bureau of Prisons. There is no parole in the federal system. Upon his release from prison, Manley will begin a 5-year term of supervised release. He was also ordered to pay $1,690.45 in restitution
On July 22, 2019, Manley entered the KwikShop at 3222 Q Street in Omaha with a long gun and forced everyone to the ground. He took money from the register and a pack of cigarettes. During the robbery, he threatened the clerk.
On September 12, 2019, Manley robbed four businesses in Omaha. At 12:39 am, he robbed the Bucky’s at 107 South 40th Street by walking in with what the clerk believed to be a gun and struck him in the face with it. After demanding the registers be opened, he ran out the door with cash. At 6:47 am, he entered the Bucky’s at 6003 Center Street, and struck that clerk in the face with the same gun. At 9:26 am, he robbed the Anderson B.P. at 15635 West Dodge Road by entering the store, banging on the register, and demanding the register be opened. Manley grabbed the money and fled. At 9:23 pm, he entered the Casey’s General Store at 1202 South 13th Street. One of the clerks saw a gun and heard Manley demand money. Another employee unlocked the register. Manley grabbed money and left the store.
Manley continued his spree by again robbing the Bucky’s at 6003 Center Street in Omaha on September 16, 2019. He entered the store, pointed a gun at the clerk and demanded she open the register. She did so. He jumped on the counter, grabbed cash, and left the store.
Two days later, on September 18, 2019, he robbed the Casey’s General Store located at 1202 South 13th Street in Omaha. He entered the store, pointed a tire iron at the clerk, jumped the counter and demanded the registers be opened. He grabbed cash and left the store.
Manley’s face was concealed or partially concealed during each of the seven robberies. The Omaha Police Department Robbery Unit and Federal Bureau of Investigation’s Great Plains Violent Crime Task Force used shoe prints, fingerprints, DNA and video to tie Manley to this string of robberies.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
New Jersey Man Sentenced for Cyberstalking, Receiving Child PornographyRead the Press Release
PROVIDENCE – A New Jersey man who befriended three Rhode Island minor females and a fourth in Indiana on social media, persuading them to send him sexually explicit photographs of themselves, and then cyberstalked and threatened to share some of the photographs if they refused to continue to communicate with him, was sentenced on Tuesday to more than seven years in federal prison.
Pritkumar Tarunkumar Patel, 24, of Closter, NJ, threatened to share the photographs on social media with the girls’ classmates and others.
According to court documents, Patel befriended the girls on various social media platforms and persuaded them to send sexually explicit photographs of themselves to him. He sent sexually explicit photographs of himself to the girls and, in at least one instance, communicated in much the same way via a live video chat.
Patel pleaded guilty on April 30, 2020, to charges of cyberstalking and receipt of child pornography, admitting that he threatened and harassed the girls on social media, by text messaging, and /or by calling them, and that he repeatedly demanded that they resume communicating with him and unblock his access to their social media accounts. Patel admitted that he threatened to post the sexually explicit photos of them online and that he would share them with their friends, classmates, and family members. He also threatened to create Instagram accounts in the girls’ names and use those accounts to post the pictures online.
On at least one occasion he followed through on his threats by posting a sexually explicit picture of a 13-year-old girl from Indiana on an Instagram account he created using her name.
On Tuesday, U.S. District Court Judge Mary S. McElroy sentenced Patel to 90 months in federal prison to be followed by 5 years’ supervised release; pay each of the four victims restitution in the amount of $3,000; and ordered Patel to pay a mandatory assessment of $5,000 as provided for in the Justice for Victims Trafficking Act.
Patel’s sentence is announced by United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge William S. Walker.
The case was prosecuted by Assistant United States Attorney Lee H. Vilker.
The investigation into Patel’s criminal activity began when the family of one of the girls brought the matter to the attention of the Hopkinton, R.I., Police Department.
United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge William S. Walker acknowledge and commend the Hopkinton Police Department for their investigative efforts that ultimately led to the identity and arrest of Patel, and thank Rhode Island State Police and New Jersey State Police for their assistance in the investigation.
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New Bedford Woman Charged with Embezzling Nearly $600,000 from EmployerRead the Press Release
BOSTON – The former bookkeeper of a New Bedford-based seafood company has been charged and has agreed to plead guilty in connection with embezzling nearly $600,000 from her employer.
Kara Howland, 37, of New Bedford, was charged with bank fraud and filing a false tax return. Under the terms of the plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of 18 to 36 months in prison, a fine and restitution. A plea hearing has not yet been scheduled by the Court.
According to court documents, between January 2016 and December 2019, Howland embezzled $598,241 from her employer by writing checks from her employer’s bank accounts to pay her credit card bills. Howland altered the company’s internal accounting records to make it appear that the checks were paid to legitimate vendors. Additionally, Howland did not report or include the funds that she embezzled on her federal income tax filings, resulting in a tax loss of $180,863.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joleen D. Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Craig A. Marech, Resident Agent in Charge of the Providence Office of the U.S. Secret Service, made the announcement today. The New Bedford Police Department also provided assistance. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Montgomery Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Sammy Joe Fragale, II, 39, of Montgomery, was sentenced to 42 months in federal prison for conspiracy to distribute methamphetamine.
“The Fragales made meth trafficking their family business,” said United States Attorney Mike Stuart. “Now, father and son, both convicted of their crimes, will be calling a federal prison their home.”
Fragale pled guilty in September admitting to being involved in a conspiracy to distribute methamphetamine in and around Montgomery. On August 18, 2020, Fragale distributed an ounce of methamphetamine to an informant. Two days later he sent the informant to his father, Sammy Joe Fragale, Sr. to obtain more methamphetamine. Fragale, Sr. pled guilty in December and is scheduled to be sentenced on March 29, 2021.
The Drug Enforcement Administration (DEA) conducted the investigation of the Fragales. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Joshua Hanks is handling the prosecution.
This case was part of operation “Second Wave,” a long-term investigation of a drug trafficking ring involved in the distribution of methamphetamine, cocaine, heroin, marijuana, and THC products. More than a dozen individuals have been charged in federal court as part of the investigation. In addition to the Fragales, Larry Terrence Martin and Greg Woods have pled guilty. Jimmie Lee Coleman is scheduled to plead guilty on January 19, 2021. Trial for the remaining defendants is scheduled in March. The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force, the United States Postal Inspection Service (USPIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office (KCSO), the Metropolitan Drug Enforcement Network Team (MDENT), and the Charleston Police Department conducted the “Second Wave” investigation.
The Organized Crime Drug Enforcement Task Force (OCDETF) is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the keystone of the Attorney General’s strategy to reduce the availability of illicit narcotics throughout the United States using a prosecutor-led, multi-agency approach to combat transnational organized crime. OCDETF agents and prosecutors nationwide handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States. OCDETF facilitates joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:20-cr-00176 (Fragale, II), 2:20-cr-00184 (Fragale, Sr.), 2:20-cr-00154 (Martin et al), and 2:20-cr-00153 (Woods).
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Marshall County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dannielle L. Young, of Moundsville, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Young, 32, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Young admitted to working with others to distribute methamphetamine from August 2019 to August 2020 in Marshall County and elsewhere.
Young faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man from Albuquerque pleads guilty to federal firearm chargeRead the Press Release
ALBUQUERQUE, N.M. – Edward Romero, 31, of Albuquerque pleaded guilty in federal court on Dec. 9 to being a felon in possession of a firearm and ammunition.
According to his plea agreement, Romero arrived at the U Pull and Pay, a self-serve used auto parts business in Bernalillo County, New Mexico, on March 9. Romero and a companion engaged in an argument with the victim in the parking lot and followed the victim into the store. When Romero’s companion and the victim began to fight, Romero pulled out his firearm and fired at the victim. Romero and his companion then fled in Romero’s vehicle, and Romero was arrested soon afterward by law enforcement.
As a convicted felon, Romero cannot legally possess a firearm or ammunition. By the terms of the plea agreement, Romero faces up to 10 years in prison and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case this case as part of the Department of Justice’s Operation Legend, a coordinated federal and local law enforcement initiative to fight gun and dangerous crime. Assistant U.S. Attorney Nicholas Mote is prosecuting the case.
Lincoln County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Lenville Jason Porter, 36, of Lincoln County, was sentenced to 33 months in federal prison for being a felon in possession of a firearm. Stuart commended the investigative work of the West Hamlin Police Department, notably Lt. J.J. Napier, the Lincoln County Prosecuting Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), who assisted the West Hamlin Police Department with the trace and testing of the firearm.
Porter admitted that on October 15, 2018, he was removing engine parts from a car when he was seen by Lt. Napier of the West Hamlin Police Department. Suspicious that he was observing Porter commit theft, Lt. Napier investigated and asked if he could pat Porter down for officer safety. Porter admitted he had a gun prior to the pat down search. Lt. Napier physically recovered a Phoenix Arms .22 pistol from the defendant’s pocket. The gun was loaded and capable of shooting. A records check revealed that Porter was convicted in 2013 of two prior felony offenses in Lincoln County: third degree arson and destruction of a public utility. Porter had neither been pardoned nor had his civil right to possess a firearm restored. Additional records checks of the firearm by the ATF confirmed the gun had traveled in interstate commerce. The ATF also confirmed the functionality of the firearm.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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. 2:20-cr-00120.
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Law enforcement leaders celebrate opening of Cleveland OCDETF Strike Force facilityRead the Press Release
U.S. Attorney Justin Herdman joined local and federal law enforcement leaders today for a ribbon-cutting ceremony to celebrate the grand opening of the Cleveland Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force facility. The new facility will allow police, federal investigators and both state and federal prosecutors to collaborate and share resources on investigations into criminal organizations at one central location.
Joining U.S. Attorney Herdman in the announcement were representatives from the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA); Cleveland Division of Police (CPD); Internal Revenue Service (IRS); United States Attorney's Office for the Northern District of Ohio (USAO-NDOH); Immigration and Customs Enforcement/United States Department of Homeland Security (ICE/HSI); United States Postal Inspection Service (USPIS); United States Marshals Service (USMS); United States Border Patrol (USBP); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); High Intensity Drug Trafficking (HIDTA) Task Force; and Independence Mayor Gregory Kurtz and Police Chief Michael Kilbane.
“This new facility will allow members of the Cleveland OCDETF Strike Force to more efficiently share intelligence and coordinate resources on investigations into drug trafficking organizations and others responsible for violent crime in the city of Cleveland and the outlying suburbs,” said U.S. Attorney Justin Herdman. “I want to thank everyone involved in the planning, construction and operation of this facility. This building will greatly enhance our law enforcement presence and operational capacity for years to come.”
“As illicit drug production, transportation, and distribution plague our nation and the safety of our citizens, OCDETF remains the premier targeting, coordination, and intelligence platform for combatting high-level drug trafficking and its attendant violent crime,” said OCDETF Director Adam W. Cohen. “The Cleveland Strike Force does not just join 18 other OCDETF Strike Forces; it joins the largest anti-crime task force in the country. The Cleveland OCDETF Strike Force will bring to bear the full resources, authorities, and expertise of the OCDETF Program, maximizing its impact against priority threats.”
"Cleveland is one of the largest Strike Force's in the nation,’ said FBI Special Agent in Charge Eric Smith. “The need for such a capability comes as a response to a persistent and growing crime rate, but it also serves as a bulwark and a predictive unit to address the new threats we see ahead. This Strike Force represents the best of our combined efforts - law enforcement resources working violence, drugs, gangs, carjackings, and armed robberies - TOGETHER - under one roof. We know this unanimity of purpose and unity of effort will only enhance our efforts to combat, disrupt and dismantle criminal activity."
“The OCDETF Strike Force is another tool we are using to collectively combat those distributing poison throughout Ohio and committing violent acts to further their enterprise at the expense of the safety and security of our communities,” said DEA Special Agent in Charge Keith Martin. “We have already seen results from our collaborative efforts with our state, local and federal partners in Ohio and I fully expect this initiative to only get better. “
The organizational structure of the new facility allows for real-time, collaborative, centralized intelligence sharing between member agencies. Present in the facility are officers, investigators and prosecutors from the U.S. Attorney’s Office for the Northern District, FBI, DEA, HSI, IRS, ATF, U.S. Marshals Service, Cleveland Division of Police, Cuyahoga County Prosecutor’s Office, U.S. Postal Inspection Service, U.S. Border Patrol, the Ohio State Highway Patrol, the Ohio High Intensity Drug Trafficking Area, the Independence Police Department and several other local area law enforcement agencies.
Launched in 2018, the Cleveland OCDETF Strike Force brings together local police agencies, federal agents and prosecutors to work collaboratively on investigations into major criminal organizations and their subsidiaries trafficking narcotics, weapons, humans and the proceeds of those crimes. Cooperative investigations are focused on dissolving these organizations, their financial infrastructure, and the violence that accompanies their activities.
In addition, the Strike Force also targets violent street gangs involved in retaliatory homicides, carjackings, commercial robberies and other violent activities, as well as people and organizations involved in trafficking opioids.
Justice Department Applauds the Passage and Enactment of the Servicemembers and Veterans Initiative Act of 2020Read the Press Release
On Jan. 5, 2021, President Donald J. Trump signed H.R. 8354, the Servicemembers and Veterans Initiative Act of 2020, a bill to permanently establish the Servicemembers and Veterans Initiative, or “SVI”, within the Civil Rights Division of the Department of Justice.
SVI’s mission is to support the department in its efforts to protect those who protect us all. The SVI is a proven and effective vehicle for coordinating the department’s servicemember-related litigation efforts as well as delivering training, technical assistance, and other support to Assistant U.S. Attorneys (AUSAs), servicemembers, veterans, and their families.
“We applaud both houses of Congress for their bipartisan action to recognize the important work that is being done within the Civil Rights Division and codify the role of the Servicemembers and Veterans Initiative within our organization,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “The Civil Rights Division has been at the forefront of litigation and outreach intended to ensure that servicemembers, veterans and their families do not have to bear undue burdens caused by civil rights violations as a result of their military service.”
SVI coordinates with Department of Justice components and federal agencies to build a comprehensive legal support and protection network focused on serving servicemembers, veterans, and their families. The Civil Rights Division is the Department of Justice component that enforces the majority of servicemember-related statutes, including: the Servicemembers Civil Relief Act (SCRA), the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), and the Americans with Disabilities Act (ADA). The initiative builds upon this critical enforcement work, as well as the work of other department components that serve the military community, by sharing information, identifying servicemember and veteran needs, and coordinating the distribution of resources. The SVI also coordinates its training programs with the Civil Division’s Consumer Protection Branch to investigate and prosecute reported fraud targeting servicemember and veterans. The SVI also regularly liaises with Department of Defense, the Consumer Finance Protection Bureau, the Federal Trade Commission, the Department of Labor, as well as nonprofits, professional associations, and law school clinics dedicated to serving our servicemember and veteran communities.
The Department of Justice, the Civil Rights Division, and the SVI are dedicated to its responsibilities to assist servicemembers and veterans. Since January 2017, the division has filed 23 SCRA complaints and entered into 21 consent decrees and settlement agreements providing $11 million in compensation to over 2,000 servicemembers, in addition to civil penalties. The division filed more SCRA lawsuits in fiscal year 2020 (eight) than in any prior fiscal year. Since the division assumed USERRA enforcement authority in 2004, it has filed 109 USERRA employment-related lawsuits and has favorably resolved 200 USERRA complaints either through consent decrees obtained in those suits or through facilitated private settlements. Since January 2017, the division has filed 10 complaints and resolved 34 claims through consent decree or settlement and has secured compensation to improperly reemployed or terminated servicemembers. Since UOCAVA was enacted in 1986, the division has filed over 50 lawsuits to enforce its terms. The division also has achieved many resolutions that did not require litigation to obtain the needed remedial actions by state officials. The division also has filed amicus briefs in litigation regarding UOCAVA to ensure that eligible military and overseas voters would have sufficient time to vote. Our partners in the Civil Division’s Consumer Protection Branch have also had success in their work. For example, in August 2019 the branch indicted five individuals for coordinating a million-dollar scheme to target thousands of servicemembers and veterans.
In just the past year, SVI has organized multi-day training programs for AUSAs in order to create a nationwide network of enforcement network. SVI has also conducted over 50 trainings, presentations and other events directly to servicemembers and Judge Advocates since 2018, including 18 virtual trainings since the onset of the COVID-19 pandemic. SVI has also engaged in legislative and policy changes impacting servicemembers.
As a result of Congress’s action, and President Trump’s support, the important work of the SVI can continue as an integral part of the Civil Rights Division’s enforcement and outreach portfolio. The civil rights of our servicemembers, veterans, and their families are of utmost importance to the Civil Rights Division and the codification of the SVI’s role in our organization ensures our continued efforts to protect those who sacrifice so much to protect all of us.
Judge sentences St. Louis County man to 30 years in prison for production of child pornography chargesRead the Press Release
ST. LOUIS, MO – United States District Judge Rodney W. Sippel sentenced Zachary Hamby to 30 years in prison today after the 30-year-old Florissant, Missouri resident’s guilty plea to four counts of production of child pornography and two counts of attempted production of child pornography. Judge Sippel sentenced Hamby’s co-defendant, Heather McDorman, to 288 months in prison in October.
According to court documents, between February 1, 2018 and March 12, 2018, Hamby directed McDorman to take pornographic photographs of children in restrooms at South County Mall, Walmart, other area malls, park bathrooms and a church bathroom. McDorman, at the direction of co-defendant Hamby, also sexually abused a child and photographed and live-streamed some of the abuse for Hamby to view. The abuse was filmed using an iPhone, which had traveled in interstate commerce.
The St. Louis County Police Department and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Colleen Lang handled the case.
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Incarcerated Gang Leader and Spouse Plead Guilty to Drug Trafficking Conspiracy Orchestrated from PrisonRead the Press Release
OKLAHOMA CITY – Earlier this week, RAMON DOMINQUEZ, 46, currently incarcerated in an Oklahoma prison, and STEPHANIE SOLIZ, 46, of Oklahoma City, pleaded guilty to a drug distribution conspiracy involving methamphetamine and heroin, announced U.S. Attorney Timothy J. Downing.
According to court documents and public records, Dominquez was a member of the Southside Locos prison gang serving a life sentence in the Oklahoma Department of Corrections for a previous conviction for First Degree Murder, in addition to sentences for other offenses. Leaders of the Southside Locos prison gang, including Dominquez, orchestrated a large-scale drug-trafficking operation, primarily focused on distribution of methamphetamine and heroin, using contraband cell phones from prison.
As a non-incarcerated member of the conspiracy, Dominquez’s wife and co-defendant, Soliz, served as Dominquez’s de facto presence on the street. In addition to delivering drugs, Soliz collected proceeds from drug debts and sales, storing the money for future drug-trafficking and protecting the Southside Loco’s drug-related assets.
On January 4, 2021, Dominquez pleaded guilty to his involvement in the drug trafficking conspiracy. On January 6, 2021, Soliz also pleaded guilty to her involvement in the drug trafficking conspiracy.
At sentencing, which is anticipated to take place in about 90 days, Dominquez faces a maximum penalty of life in a federal prison or a fine of up to $10,000,000, or both, in addition to a term of supervised release for five years. Soliz faces a maximum penalty of twenty years in federal prison or a fine of $1,000,000, or both, in addition to a term of supervised release for three years.
These charges are the result of a nearly two-year investigation by the Oklahoma City Federal Bureau of Investigation, the Oklahoma City Police Department, and the Oklahoma Department of Corrections—Security Threats Intelligence that ultimately led to the federal indictments of more than 40 defendants related to this drug trafficking enterprise. Thirty-four defendants have already pleaded guilty, and six defendants are still awaiting trial or plea hearings.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Jason Harley and David McCrary are prosecuting the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Hartford Man Allegedly Involved in December Shooting Charged with Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRANDON SPENCE, also known as “Spun,” 33, of Hartford, was arrested today on a criminal complaint charging him with violating the conditions of his federal supervised release.
Following his arrest, Spence appeared via videoconference before U.S. Magistrate Judge Thomas O. Farrish, who ordered Spence detained.
On February 5, 2019, Spence was sentenced in Hartford federal court to 24 months of imprisonment and three years of supervised release for possession of a firearm by a convicted felon. Spence, who had been detained since his arrest in June 2018, was released from federal prison in February 2020.
As alleged in court documents, at approximately 9:30 a.m. on December 7, 2020, Hartford Police surveillance cameras captured Spence and another individual engaged in a dispute in a parking lot at 20 Enfield Street. Spence pulled out a firearm, shot the individual in the leg, and then stole the victim’s vehicle.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI Connecticut Violent Crimes Task Force, the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.