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Friday 6 November 2020
Local corporations enter guilty pleas related to City of Dayton demolition contractsRead the Press Release
DAYTON – Two corporations entered guilty pleas in U.S. District Court today for conspiring to commit mail fraud.
Steve Rauch, Inc. and Green Star Trucking, Inc. admitted they conspired during the summer of 2014 to submit false paperwork to the City of Dayton for demolition contract payments.
According to court documents, Steve Rauch, Inc. accepted a contract with the city that required the company to sub-contract a set portion of the work to a certified disadvantaged business – for example a small business, a woman-owned business, etc. In this instance, the certified disadvantaged business was Green Star Trucking, Inc.
Steve Rauch, Inc., knowing it had not satisfied the requirements on its demolition project, contacted Green Star and asked that Green Star falsely certify it had completed and been paid for several thousand dollars’ worth of additional work on the project. Green Star agreed and signed the false paperwork that Steve Rauch, Inc. then sent to the city.
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; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the pleas entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.
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Local businessman pleads guilty to bribing IRS Agent to avoid paying back taxesRead the Press Release
ATLANTA – Local business owner Dauda Saibu has pleaded guilty to attempting to pay over $15,000 in bribe money to an IRS Revenue Agent to reduce his federal taxes.
“Rather than pay his taxes like every other law-abiding American, Saibu attempted to bribe an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the prompt reporting of the agent, Saibu was exposed and his scheme ended with him now facing time in prison.”
“The act of bribery is an attempt to corrupt the administration of the Internal Revenue laws,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Any such attempt will be aggressively investigated and prosecuted to preserve the integrity of the American tax system.”
According to U.S. Attorney Pak, the charges and other information presented in court: As a result of an audit of Saibu's 2014 tax return, the IRS calculated that Saibu owed approximately $187,000 in back taxes. On October 11, 2019, Saibu met with a Revenue Agent to discuss his 2014 tax return. At the end of the meeting, Saibu attempted to give the Revenue Agent a cash bribe.
The Revenue Agent properly reported Saibu’s bribe offer and subsequently agreed work with federal law enforcement authorities. On October 22, 2019, Saibu had two meetings with the Revenue Agent to discuss the results of the IRS’s audit. During these audio and video recorded meetings, Saibu proposed that if the Revenue Agent reduced his tax liability to 20% of the actual amount owed, Saibu would pay the Revenue Agent a $10,000 cash bribe. To memorialize the deal, Saibu wrote: (a) “$10,000” on a piece of paper and gave it the Revenue Agent; and (b) “20% of total amount I owed $187,000” on another piece of paper. After a brief negotiation, Saibu offered to pay the Revenue Agent an additional $5,000, for a total of $15,000.
On October 23, 2019, Saibu again met with the Revenue Agent. During the audio and video recorded meeting, Saibu paid the Revenue Agent $10,000 in cash in exchange for the Revenue Agent reducing the amount Saibu owed in back taxes from approximately $187,000 to $47,485.33. Saibu also confirmed that he would pay the Revenue Agent an additional $5,000 at a later date.
On February 28, 2020, Dauda Saibu, 63 of Atlanta, Georgia, was charged via criminal information with bribing a federal official and pleaded guilty to that charge today. Sentencing has not yet been scheduled.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Jeffrey W. Davis, Public Integrity and Special Matters section chief, and David A. O'Neal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
KC Woman Sentenced for Social Security, Bankruptcy Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri woman was sentenced in federal court today for a Social Security and bankruptcy fraud scheme.
Carol L. Dille, 68, was sentenced by U.S. District Judge Greg Kays to two years in federal prison without parole. The court also ordered Dille to pay $76,601 in restitution.
On Jan. 31, 2020, Dille pleaded guilty to one count of wire fraud and one count of bankruptcy fraud. Dille admitted that she filed an online application for Social Security retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of her former husband, Gerald Sanders, from whom she separated in 2009. Sanders had been living overseas since the 2009 separation, and was unaware that Dille filed the application.
Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.
In June 2016, as Sanders neared his 65th birthday, Dille emailed him offering to help set up his benefits – even though she had been secretly collecting them herself for nearly three years. She pretended to help him and to be sympathetic to his financial distress while diverting $1,420 a month of his benefits to her own bank account.
In August 2016, Sanders moved from Indonesia to Guam. After his move, Sanders went into the Guam Social Security office to check on his application. At that point he was told a claim had already been filed and the Social Security Administration had been paying monthly benefits in his name since October 2013. As a direct result of the fraudulent application filed by Dille, the government paid a total of $76,601 in monthly benefits earmarked for Sanders.
In addition to the Social Security fraud scheme, Dille used the Alliance of Divine Love Chapel bank account twice to commit bankruptcy fraud.
On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.
On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.
The court also ruled today that Dille violated the terms of her plea agreement by committing another crime between the time of her guilty plea and today’s sentencing. Within three months of entering her guilty plea, Dille committed bankruptcy fraud again when she concealed the attempted sale of a real estate parcel that was an asset of her bankruptcy estate, and the related sale documents, from the bankruptcy court and U.S. Trustee’s Office. Dille admitted that had the sale gone through, she did not intend to use the proceeds to repay her bankruptcy creditors.
This case was prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten and Assistant U.S. Attorney Leigh Farmakidis. It was investigated by the Social Security Administration, Office of Inspector General.
Justice Department Reaches Settlement with the Town of Irmo, South Carolina, to Resolve Allegations of Discrimination Against Homeowner with DisabilityRead the Press Release
The Justice Department announced today that the Town of Irmo, South Carolina, has agreed to pay $25,000 to a homeowner with a disability as part of a settlement agreement resolving the government’s Fair Housing Act (FHA) lawsuit.
The department’s complaint, filed in the U.S. District Court for the District of South Carolina in November 2018, alleged that the town violated the FHA by refusing to allow the Irmo homeowner to build a carport adjacent to her home to accommodate her physical disability. According to the complaint, the homeowner, after falling and suffering injuries on several occasions outside her home, applied for a zoning variance in 2016 to build a carport to protect her driveway and mobility ramp in inclement weather and prevent future falls; the town summarily denied the variance. The homeowner filed a complaint with the Department of Housing and Urban Development (HUD), which conducted an investigation and referred the matter to the Justice Department.
“The homeowner in this case requested a simple, straightforward, and reasonable accommodation: to build a carport adjacent to her own single-family home so she would be protected from the elements and could safely enter and exit her home. She should not have been forced to wait three years for this accommodation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement is a reminder that the Justice Department is committed to working tirelessly to enforce the Fair Housing Act and protect the rights of persons with disabilities. The department’s lawsuit should also serve as a warning that federal law protects the right of persons with disabilities to be secure in their homes and that the Justice Department will do whatever is necessary to protect that right.”
“This office will take action to protect those with disabilities,” said Peter M. McCoy, Jr., U.S. Attorney for the District of South Carolina. “This settlement not only compensates an individual who was initially prevented from making reasonable accommodations for her disability, but it helps ensure that those in similar situations are protected in the future.”
“Today’s settlement is a victory for persons with disabilities, who often need basic modifications to their living space in order to fully utilize and enjoy the place they call home,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to take appropriate action when a municipality’s housing practices violate the law.”
After the department filed the lawsuit, the town adopted an ordinance allowing persons with disabilities to request reasonable accommodations in rules, policies, practices or services to afford them an equal opportunity to use or enjoy their home. More than a year later, the town finally granted the homeowner’s reasonable accommodation request and allowed her to build a carport so she could live safely in her home. Under the terms of the settlement agreement, the town is prohibited from engaging in future disability discrimination or interfering with the homeowner’s use of her carport, and town officials must participate in fair-housing training and report to the department any denial of a request for a reasonable accommodation.
The federal FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Jury convicts North Dakota man of meth trafficking crimesRead the Press Release
GREAT FALLS – A federal court jury today convicted a North Dakota man of methamphetamine trafficking crimes after investigators seized nearly two pounds of meth that were hidden in a pinata and a jar of peanut butter, U.S. Attorney Kurt Alme said.
After a three-day trial that began on Nov. 4, a jury found Christopher Michael Stebbins, 53, of Williston, N.D., guilty of conspiracy to possess with intent to distribute meth and with attempted possession with intent to distribute meth.
Stebbins faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on each crime.
Chief U.S. District Judge Bryan M. Morris presided. Chief Judge Morris set sentencing for March 4, 2021 and ordered Stebbins detained.
“Pinatas are meant to be stuffed with candy, not meth,” U.S. Attorney Alme said. “Mr. Stebbins worked with others to bring large amounts of this poison to Montana communities, including the Fort Peck Indian Reservation. Organizations that push meth will be broken up, and we will stop their spread. I want to thank Assistant U.S. Attorney Jeff Starnes, the FBI, the U.S. Postal Service and the Merced, CA, Police Department for their work on this case.”
The prosecution presented evidence at trial that on Nov. 8, 2019, Don Fred Baldwin, of Merced, CA, mailed almost two pounds of meth to Stebbins to an address of a residence in Brockton, located on the Fort Peck Indian Reservation. The meth was hidden in a jar of peanut butter and inside a “cop dog” pinata. Law enforcement officers intercepted the package, obtained a search warrant and found 1.7 pounds of meth inside the pinata and the peanut butter jar. The quantity of meth seized is the equivalent of about 6,208 doses.
Baldwin was convicted in a companion case of meth distribution and was sentenced in September to six years in prison.
A witness told law enforcement officers that Stebbins received meth from Baldwin and that the shipments were usually one-pound quantities. Baldwin typically shipped the meth to Stebbins’ home in Williston and that the Nov. 8 package was the only shipment to the Brockton residence. The witness said Stebbins would send Baldwin cash for the drugs, which Baldwin would then send to Stebbins. Stebbins would re-package the meth to sell to others.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI, U.S. Postal Service and the Merced, CA, Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Jury convicts Missoula CPA of filing false tax returnsRead the Press Release
MISSOULA – A federal jury on Thursday found a Missoula accountant guilty of crimes in a scheme in which he filed false tax returns on a couple's businesses by skimming cash and deducting personal expenses like vacations, home improvements and water craft as business expenses, U.S. Attorney Kurt Alme said today.
After a four-day trial that began on Nov. 2, the jury convicted Daniel Brian Burke, 62, of six counts of aiding and assisting to subscribing to a false document.
Burke faces a maximum of three years in prison, a $100,000 fine and three years of supervised release on each count.
U.S. District Judge Dana L. Christensen presided and set sentencing for March 11, 2021. Burke remains on release pending further proceedings.
"Our system depends on all of us paying our fair share of taxes. Accountants and other tax preparers have a particular responsibility to their clients and to our country to advise their clients to follow the law. When someone abuses that trust and helps clients cheat on their taxes, they will be investigated and prosecuted. I want to thank Assistant U.S. Attorneys Ryan Weldon and Karla Painter for prosecuting the case and the IRS Criminal Investigation Division for its investigation," U.S. Attorney Alme said.
“Last night’s conviction of CPA Daniel Burke for helping his clients file false federal tax returns is a victory for all taxpayers,” said IRS-CI Special Agent in Charge Andy Tsui. “The public should expect all tax and accounting professionals to guide their clients to legal and honest financial outcomes. Instead, Mr. Burke used his position as a CPA to break the law, and he will now face the consequences of his actions.”
In evidence presented at trial, the prosecutors said Burke signed false tax returns along with co-defendants and clients, Traci and Joseph Baumgardner, owners of AJB, Inc., for years 2011 to 2013. In total, the Baumgardners reported gross receipts of $5,001,374 and paid federal taxes totaling $10,066 for the time. Traci and Joseph Baumgardner each pleaded guilty to a conspiracy count and testified against Burke. The Baumgardners were each sentenced in June to three years of probation and ordered to pay $89,918 restitution.
Through AJB, the Baumgardners operated two businesses, Splash Car Wash, in Missoula and Hamilton, and Pro Sweeps Plus, an industrial maintenance service. Burke, a certified public accountant, owned and operated Burke and Company, P.C., and prepared corporate and individual tax returns for the Baumgardners.
Prosecutors said an undercover investigation by the IRS showed evidence of two theories for the false returns. In one theory, Burke instructed the Baumgardners not to deposit cash in the bank or report it as income as required. A search conducted by the IRS found $50,000 cash in a safe owned by the Baumgardners.
In the second theory, the Baumgardners deducted personal expenses as business expenses. The deducted personal expenses included vacations to Florida, Hawaii, Las Vegas, the Bahamas and Dallas; residential expenses like utilities, remodeling and house cleaning; retail purchases at various stores; recreational purchases like boats, dune buggies and water craft; and a country club membership.
Prosecutors further presented evidence that the Baumgardners and Burke depreciated assets at 100 percent of business use, disguised items, like a boat as a “sweeper,” and double depreciated assets. Entertainment items, like boats and dune buggies, are not deductible.
An undercover IRS agent met with Burke and in a recorded interview, Burke demonstrated his knowledge of skimming cash and deducting personal expenses as business expenses. At one point, Burke asked the agent, “You're not an undercover agent from the IRS or anything?” The agent responded no. Burke told the agent how to avoid taxes.
Assistant U.S. Attorneys Ryan Weldon and Karla Painter prosecuted the case, which was investigated by the IRS.
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Judge Hands Down Max Prison Sentence to Illegal Firearms TraffickerRead the Press Release
MACON, Ga. - A known firearms trafficker, arrested during an ATF undercover operation into illegal gun trafficking in Macon, was sentenced to federal prison, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Darrius R. Allen, 32, of Macon, was sentenced to 60 months in prison by U.S. District Judge Tripp Self on Thursday, November 5, after pleading guilty to one count possession of a firearm with an obliterated serial number, the maximum prison sentence under federal guidelines. There is no parole in the federal system.
Allen become the subject of an ATF investigation into the illegal possession and sale of firearms in Macon beginning in late September 2019. During the course of the months-long investigation, Allen sold a multitude of firearms and methamphetamine to a confidential informant. A few of these firearms included a loaded Zastava semi-automatic pistol with a large capacity magazine and a Ruger semi-automatic pistol with an obliterated serial number. The final purchase occurred on November 14, 2019, when ATF agents arrested Allen, seizing four firearms and what turned out to be two inert hand grenades.
“Gun trafficking is a deadly business that feeds violence and criminal activities across the Middle District of Georgia. We will pursue the maximum punishment allowed under law for those found trafficking illegal firearms,” said U.S. Attorney Charlie Peeler. “ATF is relentless in their efforts to crack down on illegal firearms trading. I want to thank these agents for their work making our communities safer.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation,” said Beau Kolodka, Assistant Special Agent in Charge, ATF Atlanta.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by ATF. Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jimcy McGirt Found Guilty of Aggravated Sexual Abuse, Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Jimcy McGirt, age 71, was found guilty by a federal jury of two counts of Aggravated Sexual Abuse In Indian Country, and one count of Abusive Sexual Contact in Indian Country in violation of Title 18, United States Code, Sections 1151, 1153, 2241(c) and 2246(2). Each count is punishable by not less than 30 years and not more than life imprisonment, a fine up to $250,000.00, or both. The jury trial began with testimony on Wednesday, November 4, 2020 and concluded on Friday, November 6, 2020 with the guilty verdicts.
Evidence presented at trial proved that in August 1996 the defendant knowingly engaged in sexual acts upon a child who was four years old at the time.
In 1997 Jimcy McGirt was tried and convicted of First Degree Rape by Instrumentation, Lewd Molestation, and Forcible Sodomy in Wagoner County. While serving two 500 year sentences and life without parole in the Oklahoma Department of Corrections he appealed his conviction, arguing the Creek Nation Reservation had not been disestablished and therefore the State of Oklahoma did not have jurisdiction to prosecute him because he is a member of the Seminole Nation. On July 9, 2020 the United States Supreme Court held the Creek Nation Reservation had not been disestablished and therefore the State of Oklahoma had been without jurisdiction over McGirt.
On August 18, 2020 the federal grand jury in the United States District Court for the Eastern District of Oklahoma returned an indictment against the defendant based on the same facts that had resulted in his 1997 Oklahoma conviction. Less than three months later his federal jury trial began and ended with today’s verdict.
“Today’s verdict is a result of a courageous victim who for the sake of justice was willing to once again relive the horrific acts the defendant perpetrated against her over 24 years ago. Her strength is a powerful testament to the resilience and strength of the human spirit, and a great example for us all,” said United States Attorney Brian J. Kuester. “Prosecuting decades old cases are difficult at best, but the prosecution team along with the Federal Bureau of Investigation demonstrated tenacity and commitment to the federal government’s trust responsibility in Indian Country in the Eastern District of Oklahoma.”
“While the McGirt decision was a precedent setting case in regards to the FBI’s work in Indian Country, today’s verdict shows that the FBI’s commitment to seeking justice for the victims will never change, no matter the court, no matter the venue,” said FBI Special Agent in Charge Melissa Godbold. “I am grateful to the team for their work to bring this more than two-decades old case to trial, and we thank the Jury for their hard work that led to today’s conviction.”
The Honorable John F. Heil, III, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Sarah McAmis and Assistant United States Attorney Courtney Jordan represented the United States.
Issaquah man sentenced to 30 months in prison for possession of child pornographyRead the Press Release
Seattle - A 61-year-old Issaquah, Washington, man was sentenced today in U.S. District Court in Seattle to 30 months in prison for possession of child pornography, announced U.S. Attorney Brian T. Moran. PHILIP B. GILBERT, who was employed in the IT department of the Archdiocese of Seattle, was arrested on state charges in May 2019. He was charged federally in October 2019 and pleaded guilty in June 2020. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez noted that GILBERT will be transferred to custody in California where he is charged with sexual assault and faces up to life in prison if convicted.
According to documents in the case, in January 2019 an electronic service provider reported GILBERT’s account to the National Center for Missing and Exploited Children (NCMEC) for uploading images of child rape and molestation. After obtaining a court-authorized search warrant, law enforcement served the warrant at GILBERT’s residence and seized electronic devices. The devices contained 256 images of child pornography.
Following GILBERT’s arrest, a victim came forward to law enforcement and reported GILBERT molested her. Contra Costa County, California, has charged the defendant with multiple sexual abuse crimes against a minor for which he faces life in prison. Following his federal sentence, he will be transferred to California to resolve those charges. On the federal case, Chief Judge Martinez imposed ten years of supervised release to follow prison and $12,000 in restitution to the victims depicted in the various child pornography series that GILBERT possessed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by the King County Sheriff’s Office in subsequent collaboration with Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Investment Professional and Author Is Sentenced for Defrauding National Women's SororityRead the Press Release
KNOXVILLE, Tenn. A Florida woman was sentenced to 24 months in prison for her role in an investment management scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney James Douglas Overbey of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
Cheryl Broussard, 63, of Miami, Florida, was sentenced on November 5, 2020 in the U.S. District Court for the Eastern District of Tennessee by Chief Judge Gregory N. Stivers of the Western District of Kentucky. Judge Stivers also ordered the defendant to pay $106,000 in restitution and $106,000 in forfeiture. Broussard pleaded guilty on Aug. 14, 2019, to one count of wire fraud.
Broussard, the author of multiple books on women and finance, advertised herself as a financial professional with over two decades of experience in investment management and fiscal independence for women. As part of her plea, Broussard admitted to entering into an investment agreement with a professional women’s sorority pursuant to which she would manage $100,000 of the sorority’s funds in February 2015. Beginning in June 2015, Broussard sent regular investment portfolio reports to the sorority purporting to detail investments in securities. Unbeknownst to the sorority, Broussard had used its funds for personal expenses, and the periodic reports were fake. Broussard admitted that, when the sorority noticed inconsistencies in the periodic reports and sought to terminate the agreement, she fabricated a termination penalty that appeared to be part of the original agreement to prevent the sorority from going forward with the termination. When the sorority eventually terminated the agreement, Broussard failed to remit any funds to the sorority.
This case was investigated by the Federal Bureau of Investigation. Trial Attorney Michelle Pascucci of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Frank M. Dale are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan, and pleading not guilty on Nov. 4 was:
Jason John Stang-Parker, 32, of Shepherd, on charges of theft from a federal licensee and possession of a stolen firearm. If convicted of the most serious crime, Stang-Parker faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stang-Parker was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-130.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Nov. 3 was:
Brandon Lee Main, 41, of Harlem, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Main faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Main was detained pending further proceedings. The FBI and Fort Belknap Police Department investigated the case. PACER case reference. 20-79.
Leonard James Hilton, 34, of Great Falls, on charges of possession of a firearm by an unlawful user of a controlled substance. If convicted of the most serious crime, Hilton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Hilton was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-78.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband and Wife Sentenced for International Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A husband and wife were sentenced today to a combined 92 months in prison for their roles in a sophisticated fraud scheme that primarily targeted elderly Americans.
According to court documents, Chirag Choksi, 36, who was sentenced to 78 months in prison, and Shachi Majmudar, 36, who was sentenced to 14 months, were members of a criminal conspiracy in which members used a variety of schemes, including impersonating law enforcement officers and other government officials, to trick and coerce victims into mailing and shipping cash to other conspiracy members by convincing the victims, a disproportionate number of whom were elders, that it was in their best interests to do so.
“The financial and emotional harm these scams cause elderly victims and their family members can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The scope of fraud perpetrated through robocalls from overseas call centers is truly enormous. According to the Federal Trade Commission, in 2019 it received nearly 400,000 complaints alleging imposter fraud claims totaling $152.9 million, which government officials suspect substantially underestimates the extent of fraud because many victims do not report their losses. As seen from the evidence in this case, a disproportionate percentage of those victims are elderly. This office will continue to aggressively prosecute crimes involving elder fraud, and we are firmly committed to bringing the offenders to justice, no matter where they reside.”
These schemes generally started with automated “robocalls” from a call center in India that were designed to create a sense of urgency with unsuspecting recipients. The messages typically told the recipient that they had some sort of serious legal problem, and that if they did not immediately take a particular action demanded by the callers then there will be drastic consequences. Typically the recipients were threatened with arrest, significant financial penalties, or cessation of government benefits. The fraudsters almost invariably instructed the call recipient that, in order to prevent these dire consequences, the recipient must pay money, by wire transfer or cash, to some purported government entity. This conspiracy operated “money mule” cells in multiple states, including New Jersey, California, Indiana, Texas, Illinois and Minnesota. These money mules would receive parcels containing cash that had been sent by victims and then deposit the money in bank accounts controlled by conspirators.
“These fraudsters used fear, intimidation, and even posed as law enforcement to threaten seniors and swindle them out of their hard-earned money,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “These scams can cause irreparable harm to the unsuspecting and trusting victims they target. The FBI will continue to work with our law enforcement partners to stop those who are targeting our senior communities. Regardless of whether the perpetrators live domestically or overseas, the FBI will work to bring them to justice.”
In one particular scheme involving a victim in Chesterfield County, members of the conspiracy impersonated DEA agents and advised the victim that they had found a vehicle located near the United States Southwest border that contained a large amount of cocaine and the victim’s bank information. The fraudsters then convinced that victim to surrender half the cash in her bank accounts as a sign of good faith until a thorough investigation had cleared her of any criminal activity.
According to court documents, Choksi and Majmudar worked as money mules for the Minnesota cell of this conspiracy for at least two months in 2019. Between May and June, Choksi and Majmudar received victim cash shipments at their home in Eden Prairie, Minnesota. Choksi also used counterfeit driver’s licenses to pick up victim cash shipments from locations in and around Eden Prairie. Majmudar regularly tracked victim cash shipments. Once in hand, she and Choksi made video recordings of Choksi removing and counting the money, and then sent the videos to their conspiracy supervisor as proof of how much victim cash had been received. The two each then made multiple cash deposits into bank accounts controlled by conspiracy members.
In total, Choksi and Majmudar received or attempted to receive 11 shipments from 10 victims located in multiple states around the country. The total amount of victim cash in these packages was $132,200. Of the 10 victims who sent cash to the defendants, nine were between 66 and 86 years of age.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
The Eden Prairie Police Department (Minnesota) provided significant assistance with this investigation.
Assistant U.S. Attorneys Brian Hood and Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Haverhill Man Pleads Guilty to Fentanyl DistributionRead the Press Release
BOSTON – A Haverhill man pleaded guilty yesterday in federal court in Boston to distributing fentanyl in 2019.
Wilfredo Rivera, 32, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. District Court Nathaniel M. Gorton scheduled sentencing for March 3, 2021.
On Aug. 15, 2019, Rivera was arrested after purchasing eight grams of fentanyl for distribution. He was indicted in October 2019 as part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Valuable assistance was provided by the Drug Enforcement Administration, the Massachusetts State Police and the North Andover Police Department. Assistant U.S. Attorney Eve A. Piemonte of Lelling’s Office is prosecuting the case.
Greene County Man Sentenced to 6 Years in Prison for Federal Drug and Gun OffensesRead the Press Release
PITTSBURGH – A former resident of Waynesburg, Greene County, Pennsylvania, has been sentenced in federal court to serve a total of 72 months’ imprisonment followed by 36 months’ supervised release on his convictions for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Julius Maurice Hurt, 35, formerly of Waynesburg, Greene County, Pennsylvania, who was convicted of possessing quantities of heroin and cocaine intending to redistribute those substances, and possessing firearms in furtherance of that drug trafficking crime.
According to information presented to the court, in the early morning hours of May 3, 2017, Waynesburg Borough Police Officers were dispatched to the area in and around the Greene County Courthouse based on 911 calls that an individual, later determined to be Mr. Hurt, was observed carrying firearms. The responding officers located Mr. Hurt in that area and found him in possession of two loaded firearms (a .45 caliber Colt pistol and a 9mm Smith & Wesson pistol). On his person, police found quantities of cocaine and heroin, which Mr. Hurt admitted to possessing with the intent to distribute. In Mr. Hurt’s Waynesburg residence, the state police found drug paraphernalia commonly used to package heroin and cocaine for further distribution. In connection with his guilty plea, Mr. Hurt admitted to possessing the firearms in furtherance of the charged drug trafficking offense.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Waynesburg Borough Police Department for the investigation leading to the successful prosecution of Mr. Hurt.
Grand jury indicts former Ferguson police officer accused of assaulting suspectRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted former Ferguson Police Officer Jackie Matthews, 63, of Florissant, Missouri on one count of Deprivation of Rights Under Color of Law and one count of Making a False Record for an incident occurring on March 13, 2020.
According to the indictment, on March 13, 2020, Officer Matthews while with the Ferguson Police Department deprived the victim of his right to be free from unreasonable force. In so doing, Matthews assaulted the victim while handcuffed and not posing a physical threat to anyone. The indictment further alleges Matthews’ falsified the police report claiming the victim resisted arrest.
“I want to commend the Ferguson Police Department for swiftly bringing this matter to the attention of the appropriate authorities,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By doing so, it demonstrated its commitment to accountability that all professional law enforcement organizations strive for in order to maintain the public’s trust.”
If convicted on both counts, Matthews faces a maximum punishment of up to 20 years in prison and a fine of up to $250,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Federal Bureau of Investigation investigated this case.
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Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Daniel Galindo, 26, of Grand Island, Nebraska, was sentenced by the Chief United States District Judge John M. Gerrard to 15 years’ imprisonment for distribution of methamphetamine. There is no parole in the federal system. Once he completes his prison term, Galindo will begin a 10-year term of supervised release.
On six occasions between January and August, 2019, Daniel Galindo sold methamphetamine to a confidential informant working with investigators.
Galindo was previously convicted in 2013 for distribution of methamphetamine.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Goldsboro Man Sentenced to 17 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 204 months in prison for Possession with Intent to Distribute 50 Grams or More of Methamphetamine.
According to court documents, Obrien Devon Kornegay, 38, was arrested in Duplin County on June 26, 2019, after he delivered four ounces of crystal methamphetamine to a confidential informant. When Kornegay was arrested, he also had two grams of crack cocaine and 2 grams of heroin in his pockets. Further investigation revealed that Kornegay had been involved in dealing kilograms of crystal methamphetamine and cocaine between December 2018 and his arrest in June 2019.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Duplin County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
A copy of this press release is located on our website. 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. 5:20-CR-00024-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Tulsa Police Officer Charged with First Degree MurderRead the Press Release
A former Tulsa Police Officer who requested his Oklahoma manslaughter conviction be dismissed based on the Supreme Court’s McGirt decision was charged today in federal court with the first degree murder of Jeremey Lake, announced U.S. Attorney Trent Shores.
Shannon James Kepler, 60, of Tulsa, is charged with first degree murder in Indian Country, causing death by using and discharging a firearm during and in relation to crimes of violence, and assault with a dangerous weapon in Indian Country.
“Nineteen-year-old Jeremey Lake’s life was senselessly cut short in 2014 when Shannon Kepler allegedly shot and killed him. A jury convicted Mr. Kepler in state court, but the McGirt decision has impacted his conviction. The need to pursue justice remains. The United States Attorney’s Office will now ask a federal jury to convict Shannon Kepler,” said U.S. Attorney Trent Shores. “Our victim specialists are communicating with Jeremey’s family and will be with them every step of the way as this case moves forward in federal court. Our prosecutors have worked hand in hand with our partners at the Tulsa County District Attorney’s Office to ensure this young man and his family experience a full measure of justice.”
According to the indictment, Kepler maliciously and with premeditation murdered Mr. Lake, his daughter’s boyfriend, by shooting him multiple times with a firearm. He is further charged with shooting at a minor male victim during the course of the crime.
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorneys Ross E. Lenhardt and Sean J. Taylor are prosecuting the case. Mr. Lenhardt is a prosecutor from the Western District of Pennsylvania, and Mr. Taylor is a prosecutor from the Northern District of Texas. Both volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Former Rusk County Employee Sentenced to 5 Years for Embezzling over $700,000Read the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Sandra Stiner, 66, Ladysmith, Wisconsin, was sentenced today by U.S. District Judge William Conley to five years in prison for wire fraud and aggravated identity theft. Stiner pleaded guilty to these charges on August 12, 2020.
Stiner worked at the Rusk County Health and Human Service Department (HHS) for 42 years before retiring in January 2019. While working for HHS, Stiner misappropriated $702,351, during a nine-year time span, from June 2010 to January 2019, by creating and submitting fictitious invoices allegedly from a home-based therapy company (R.Y.P.) for nonexistent intensive in-home autism services to twin boys.
At her plea hearing on August 12, 2020, Stoner admitted that she used, without lawful authority, a means of identification of real people and real entities in an effort to create documentation that appeared legitimate and provided cover to support her fraud scheme, including taking the name and taxpayer identification number (TIN) of R.Y.P., and the name of its founder, Dr. K.L., and misusing them to create a nominee bank account, nominee email account, and fictitious invoices.
Stiner also admitted that part of her fraud scheme included her forging the signature of Dr. K.L. on various R.Y.P. documents and IRS forms to make these documents appear legitimate to Rusk County. Stiner also admitted that she took the name of T&T S.C., a CPA firm in La Crosse, Wisconsin, and misused it to create a fictitious letter and financial statements for R.Y.P. Stiner told Judge Conley that she created a nominee bank account on June 21, 2010 at Bank of America using the name of R.Y.P. and forged the signature of Dr. K.L. on the R.Y.P. direct deposit authorization form to make sure the payments came to Stiner and not the real owner of R.Y.P. Based on these fictitious invoices, Rusk County paid $702,351 to Stiner’s nominee bank account over a 9-year period.
Judge Conley imposed a sentence of three years for the wire fraud charge and a consecutive two years for the aggravated identity theft charge, for a total prison sentence of five years. Judge Conley ordered Stiner to report to prison on January 6, 2021.
In imposing sentence today, Judge Conley told Stiner that he has seldom seen someone whose conduct was so cynical, deliberative and longstanding. He explained to Stiner that her conduct also undermined the public trust in government institutions. Judge Conley ended his comments by telling Stiner, “I am holding you responsible for the decisions you made.”
The charges against Stiner are the result of an investigation conducted by the Rusk County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Former President and CEO of Cecil Bank Sentenced in Maryland to Two Years in Federal Prison for a Bank Fraud Conspiracy, Receiving a Bribe, and Making False Statements in Bank RecordsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced the former President and Chief Executive Officer of Cecil Bank, Mary Beyer Halsey, age 59, of Rising Sun, Maryland, to two years in federal prison, followed by five years of supervised release. Halsey pleaded guilty on July 31, 2020, to the federal charges of conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Maryland, upon which Cecil Bank had foreclosed. Judge Chasanow also ordered Halsey to forfeit her interest in the home in Rising Sun and to pay restitution in the amount of $145,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark P. Higgins of Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Mid-Atlantic Region; Special Agent in Charge Patricia Tarasca of Federal Deposit Insurance Corporation, Office of Inspector General (FDIC/OIG), New York Region; Special Inspector General Christy Goldsmith Romero for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA/OIG).
“Mary Beyer Halsey will now serve time in federal prison after she used her position as President and CEO of Cecil Bank for her personal benefit, causing a loss to the bank, which had already received federal taxpayer funds as part of the Troubled Asset Relief Program,” said U.S. Attorney Robert K. Hur. “Corrupt bank officials undermine the public’s trust in our financial system.”
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Mark Higgins, Special Agent in Charge of the FHFA-OIG’s Mid-Atlantic Region. “We are proud to have partnered with the U.S. Attorney’s Office for the District of Maryland and our law enforcement partners on this case.”
“Today the former CEO of Cecil Bank was sentenced to prison, becoming the 78th banker sentenced to prison resulting from a SIGTARP investigation,” said Special Inspector General Christy Goldsmith Romero. “Treasury wrote off $11 million from its TARP investment in Cecil Bank. We commend U.S. Attorney Hur and his team of prosecutors in standing with SIGTARP to combat fraud that hurt banks during critical times.”
Cecil Bank, located in Elkton, Maryland, had received $11,560,000 in federal taxpayer funds in 2008, under the Capital Purchase Program, as part of the Troubled Asset Relief Program. On April 20, 2011, Cecil Bank initiated the foreclosure of a single-family house located at 127 Ebenezer Church Road in Rising Sun.
According to her plea agreement, from 2012 to 2013, Halsey conspired with Daniel Whitehurst, an employee of a real estate development company that did business in Maryland, to defraud Cecil Bank and another bank to purchase a home through false pretenses, representations and promises. Specifically, on March 28, 2012, Halsey and Whitehurst met at a restaurant in Cecil County. Whitehurst asked Halsey if she could help him and a business partner get a $500,000 line of credit from Cecil Bank. Halsey agreed to help Whitehurst to obtain a line of credit from Cecil Bank, in exchange for Whitehurst agreeing to serve as the straw purchaser of 127 Ebenezer on behalf of Halsey. Halsey suggested that she increase the line of credit for Whitehurst to $650,000 to include the funds needed to buy the house. Whitehurst agreed to Halsey’s request to secretly buy 127 Ebenezer on Halsey’s behalf. On May 9, 2012, Halsey participated in a loan committee meeting at Cecil Bank that considered and approved a $650,000 line for credit for Whitehurst and a $500,000 line of credit for his business partner.
Halsey admitted that at her request, on May 14, 2012, Whitehurst visited 127 Ebenezer and provided Halsey with an estimate of the costs to update the house. Whitehurst determined that beyond replacing the kitchen subflooring at a cost of about $1,000, there were no significant repairs needed. Whitehurst provided a letter of intent to purchase the home from the bank for $150,000 for Halsey to review. Halsey suggested lowering the price to $145,000 to allow room to increase the offer later. Halsey knew that an exterior-only appraisal of the property ordered by Cecil Bank on November 9, 2011, showed a market value of $263,000. A full appraisal on September 10, 2012, reflected a market value of $295,000. To support the below-market price that Halsey wanted to pay, Whitehurst included in the letter of intent a list of lower-priced home sales in the same area that were not comparable to 127 Ebenezer and therefore was not reflective of the property’s actual market value.
As detailed in the plea agreement, on May 23, 2012, Whitehurst e-mailed Cecil Bank his offer to purchase 127 Ebenezer for $145,000. On the same day, during a meeting of the Cecil Bank Board of Directors, Halsey advised the Board that Whitehurst had made a purchase offer of $140,000 for 127 Ebenezer, $5,000 less the actual offer. To support the below-market price of $140,000, Halsey falsely characterized the property as having “structural deficiencies [that] will require significant repairs.” Halsey did not disclose her personal interest in the property, nor Whitehurst’s role as her nominee to acquire the property on her behalf. The Board authorized Halsey to “negotiate the best price.” Thereafter, Whitehurst submitted a contract for him to purchase 127 Ebenezer from Cecil Bank for $150,000, which Halsey signed on August 17, 2012 on behalf of Cecil Bank.
According to the plea agreement, subsequent to authorizing the sale of 127 Ebenezer, Halsey told Whitehurst that he should not use his line of credit from Cecil Bank to purchase the house, but should instead get the funds from a different source. Whitehurst applied for and obtained a $100,000 loan from another bank to purchase 127 Ebenezer, fraudulently claiming that he was purchasing the property for himself and that the down payment was from an investment account. On October 31, 2012, prior to 127 Ebenezer going to settlement, Halsey wired $75,000 to Whitehurst’s bank account to cover the cost of the down payment as well as closing costs and upgrades to the property that Halsey directed Whitehurst to arrange. To conceal the true purpose of the wired funds, Whitehurst sent Halsey a fictitious real estate contract purporting to show that the $75,000 was the down payment for a different property that Whitehurst owned in Havre de Grace, Maryland.
On November 21, 2012, the settlement of 127 Ebenezer was held with Halsey representing Cecil Bank as the seller, and Whitehurst as the purported purchaser, selling the property to Whitehurst for $150,000. Both signed the HUD-1 form which falsely represented that Whitehurst had paid approximately $52,566 at settlement, when in fact, the down payment and all related closing costs were paid from the $75,000 Halsey had wired to Whitehurst’s bank account beforehand. From October 31, 2012 through March 29, 2013, Halsey transferred an additional $60,000 to Whitehurst to cover the cost the upgrades to the house that they had previously discussed, as well as to reimburse Whitehurst for mortgage payments he made on the property. Halsey and Whitehurst also made plans to transfer title of the property to Halsey by selling the house to her at a price that would minimize the tax consequences of the sale for Whitehurst.
In December 2012, in response to a question from a bank examiner for the Federal Reserve Bank of Richmond inquiring about the sale of the property to Whitehurst, Halsey falsely stated that she was “not totally familiar with [that] property” and that the bank had difficulty marketing the property and had not listed it with a realtor because of “issues with the county over the bonds outstanding.”
In April 2013, federal agents began interviewing employees and other borrowers about banking irregularities at Cecil Bank. Title to 127 Ebenezer was never transferred to Halsey. Halsey never told the bank that she was the true purchaser of 127 Ebenezer, nor did the bank know that Halsey and Whitehurst had orchestrated the sale of the foreclosed property at the fraudulent price of $150,000, instead of the appraised pre-renovation price of $295,000.
As a result of Halsey’s misrepresentations and omissions, the bank lost approximately $145,000.
Daniel Whitehurst, age 36, of Bel Air, Maryland, pleaded guilty under seal to the federal charge of mail fraud on April 6, 2018. Whitehurst faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud. Judge Chasanow has not scheduled a date for Whitehurst’s sentencing.
United States Attorney Robert K. Hur commended the FHFA-OIG, Mid-Atlantic Region; FDIC/OIG; SIGTARP; and SBA/OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
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Former Missouri State Representative pleads guilty to using campaign funds for his own personal use and expensesRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen Clark accepted a plea, today, from Courtney Curtis. The 39-year-old Ferguson, Missouri resident pleaded guilty to three counts of wire fraud relative to his theft of funds from his “Curtis for MO” campaign account. Curtis served as Representative of Missouri District 73 from 2013 until 2019. Most recently, Curtis served as an assistant to St. Louis County Councilwoman Rita Heard Days.
According to the plea agreement, beginning on or about January 1, 2016 and continuing through on or about December 31, 2017, Curtis devised, intended to devise, and knowingly participated in a scheme to defraud and to obtain money from donors to the “Curtis for MO” campaign committee by means of materially false and fraudulent pretenses, representations, and promises. Curtis misled donors by falsely representing, and causing to be falsely represented, that money contributions to the “Curtis for MO” campaign committee would be used for campaign and reelection purposes, when, in fact, he used a substantial portion of the money contributed by donors to the “Curtis for MO” campaign committee for his own personal use and expenses.
After fraudulently convincing constituents to donate money to the “Curtis for MO” campaign committee, Curtis knowingly used monies in the “Curtis for MO” campaign committee bank account for his own personal benefit, unrelated to any legitimate campaign or reelection purpose in various ways, including but not limited to: Using money in the account to pay for his apartment rental and utility bills; paying for hotel, airfare and travel expenses; paying for restaurant and bar bills; withdrawing funds from the account through substantial cash withdrawals; and, using money in the account to purchase retail items for his personal use.
Additionally, from time to time, Curtis deposited campaign donation checks into his personal bank account, and used those funds to pay for personal living expenses unrelated to any legitimate campaign or reelection purpose. Curtis acted to conceal his scheme by failing to file required reports with the Missouri Ethics Commission, or by filing false reports with the Missouri Ethics Commission, which failed to identify his cash withdrawals from the “Curtis for MO” campaign committee bank account, failed to identify payments made directly from the “Curtis for MO” campaign committee bank account which were made for his own personal use, unrelated to any campaign or reelection purpose, and failed to identify campaign donation checks received and deposited to his personal bank account. Curtis wire transferred funds from the “Curtis for MO” campaign account to pay for personal expenses and to make cash withdrawals.
“If it weren’t for the diligent work of the Missouri Ethics Commission, this federal felony may not have come to light,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “While the Commission can only impose fines on candidates who lie on campaign finance reports, the FBI will bring to justice those who serve themselves instead of their constituents.”
Total funds obtained by Curtis through his scheme to defraud his donors was approximately $47,867.69.
The charge of wire fraud carries a maximum penalty of no more than 20 years of imprisonment and a fine of no more than $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Judge Clark has set sentencing for February 5, 2021. The Federal Bureau of Investigation investigated this case. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
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Former Minneapolis Police Officer Charged with Illegally Acquiring Controlled Substances, Extortion, Violation of Civil RightsRead the Press Release
United States Attorney Erica H. MacDonald today announced an 11-count federal indictment charging TY RAYMOND JINDRA, 28, with acquiring controlled substances by deception, extortion under color of official right, and deprivation of rights under color of law. JINDRA, who was taken into custody earlier today, made his initial appearance before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment, from September 2017 through October 2019, JINDRA, a former police officer with the Minneapolis Police Department (“MPD”), abused his position in order to obtain and attempt to obtain controlled substances including methamphetamine, heroin, oxycodone, cocaine, and other drugs by deception, extortion, and conducting unconstitutional searches and seizures.
According to the allegations in the indictment, as part of his scheme, JINDRA diverted controlled substances for his own purposes by various means in the course of his duties as a MPD officer. JINDRA diverted controlled substances by not reporting, logging, placing into evidence, or informing his partner or other officers on scene about the controlled substances that he had confiscated. On some occasions, JINDRA would find ways to interact with or search an individual, vehicle, or residence so that he could surreptitiously recover controlled substances without his partner’s knowledge. At times, JINDRA conducted searches beyond the scope warranted under the circumstances in attempt to recover controlled substances. At times, JINDRA would turn off his body-worn camera when he found, concealed or diverted controlled substances he lawfully possessed in the course of his duties as a MPD officer.
United States Attorney Erica H. MacDonald thanks the FBI for its skilled investigative work on this case and the Minneapolis Police Department for its immediate notification to the FBI and substantial assistance in bringing this indictment.
Assistant U.S. Attorneys Amber M. Brennan and Michelle E. Jones are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
TY RAYMOND JINDRA, 28
Elk River, Minn.
Charges:
- Acquiring controlled substances by deception, 6 counts
- Extortion under color of official right, 2 counts
- Deprivation of rights under color of law, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Ennis pharmacist sentenced to prison, fined for opioid distributionRead the Press Release
MISSOULA – A former Ennis pharmacist who admitted dispensing opioids to himself and to a friend using forged or altered prescriptions was sentenced today to five months in prison, followed by five months of home confinement, three years of supervised release and was fined $4,500, U.S. Attorney Kurt Alme said.
Bradley John Stoick, 70, of Hailey, Idaho, pleaded guilty on July 30 to dispensing a controlled substance by a practitioner and to acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception or subterfuge.
U.S. District Judge Donald W. Molloy presided. Judge Molloy allowed Stoick to self report to prison.
“Mr. Stoick abused his position as a pharmacist to fraudulently prescribe himself opioids and to illegally send opioids to a friend. Health care professionals and other licensed providers must comply with the law in dispensing all drugs, especially opioids, and they will be held accountable if they don’t,” U.S. Attorney Alme said.
The prosecution said in court records that Stoick was the pharmacist-in-charge of Ennis Pharmacy in Ennis. In 2019, Drug Enforcement Administration investigators conducted a routine administrative inspection of Ennis Pharmacy and discovered numerous prescriptions for Stoick for Norco 10-325mg, a drug which contains Hydrocodone, a powerful opioid and a Schedule II controlled substance. Stoick filled those prescriptions for himself as the on-duty pharmacist. The doctor whose name and signature were on those prescriptions never saw Stoick as a patient and did not issue any of those prescriptions.
In addition, pharmacy records showed that Stoick altered a prescription for a friend. He modified the strength of the prescription from Norco 5-325mg up to Norco 10-325mg, which contains twice as much Hydrocodone. He also increased the amount of the prescription from 45 pills to 120 pills. Stoick then filled the prescription himself and mailed it to his friend in Utah.
In a separate civil case settled in July, Ennis Pharmacy agreed to pay a $125,000 fine and make several changes to its operating procedures.
Assistant U.S. Attorney Michael A. Kakuk prosecuted the case, which was investigated by the DEA.
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Former Department of Justice Paralegal Pleads Guilty to Accessing and Releasing Sensitive, Non-Public InformationRead the Press Release
A former contractor with the U.S. Department of Justice pleaded guilty today for unlawfully using her government computer to access government records and providing sensitive, non-public information to another individual, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Danielle Taff, 37, of Ankeny, Iowa, who was employed as a contractor paralegal at the U.S. Attorney’s Office for the Southern District of Iowa from approximately June 2017 to June 2018, pleaded guilty to one count of fraud and related activity in connection with computers before U.S. District Judge Stephanie M. Rose of the Southern District of Iowa. A sentencing date has not been scheduled.
According to admissions made in connection with her guilty plea, while employed as a paralegal, Taff was assigned to the office’s Civil Division, where she worked exclusively on matters related to civil forfeiture and was neither required nor authorized to access files and information related to the district’s investigation and prosecution of criminal cases. Taff admitted that on or about May 16, 2018, she used her U.S. Department of Justice computer to access criminal files stored on the district’s shared electronic data storage drive, including reports of law enforcement interviews with at least two individuals who cooperated with the district in a drug-trafficking investigation. Taff then used her cell phone to take approximately thirty photographs of the sensitive, non-public documents related to the drug-trafficking investigation.
After photographing the documents, Taff shared them with her friend, Person A, who subsequently shared the photographs with several individuals on Facebook. As a result, in October 2018, other individuals posted those photographs to a Facebook group dedicated to outing “snitches,” or law enforcement cooperators, in the Des Moines, Iowa region. Among other sensitive information, the photographs taken by Taff and subsequently posted on Facebook identified at least two cooperators in the drug-trafficking investigation by name and other personal identifiers.
The Department of Justice Office of the Inspector General, Chicago Field Division, is investigating the case. Trial Attorneys Erica O’Brien Waymack and Matthew Palmer-Ball of the Criminal Division’s Public Integrity Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Bank Employee Arrested for Fraud and Identity TheftRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Natasha Seetaram was arrested for bank fraud, aggravated identity theft, and related charges.
According to the Indictment filed in the case, Seetaram formerly worked at the St. Thomas branch of a bank identified by the initials “B.P.” in the charging document. She is accused of using her position at the bank to issue debit cards in the names of bank customers without such customers’ knowledge or consent. Seetaram then used the cards for her own personal benefit, making ATM withdrawals and purchases first in St. Thomas and later in Jacksonville, FL when she relocated her residence there.
This case is being investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Nathan Brooks and Kyle Payne.
An indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Former Baltimore Police Detective Pleads Guilty to Making False Statements to Federal AgentsRead the Press Release
Baltimore, Maryland – Ivo Louvado, age 47, of Bel Air, Maryland, pleaded guilty today to making false statements to federal agents.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Louvado joined the Baltimore Police Department on November 21, 1999, and was promoted to Detective in 2008. In February 2009, one of Louvado’s co-workers advised that they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence in the 1400 block of Ellamont Street in Baltimore. On February 19, 2009, Louvado and other members of his squad were conducting surveillance in the 1400 block of Ellamont Street, targeting an individual, T.M.
As detailed in the plea agreement, other officers participating in the law enforcement action followed a car from that residence. Those officers claimed to have recovered trash that contained cocaine residue that had been thrown from the car they had followed. Louvado and other officers then entered the residence that the man was allegedly observed leaving. Louvado and other officers remained in the house until two members of the squad obtained a search warrant from a Baltimore City District Court judge. Louvado ultimately participated in the search of the residence, specifically, taking photographs of items that BPD seized. At some point, Louvado was alerted to the presence of a jacket hanging behind a door that contained a large amount of cash in it, which Louvado photographed.
While in the house, officers found car keys and a BPD officer activated the remote alarm on one of the keys. Officers heard the alarm sound in a pickup truck that was parked nearby. Louvado and other officers went to the pickup and opened an opaque cover that was over the back of the pickup truck. Under construction debris, a significant quantity of cocaine was found. Louvado and other officers waited with the cocaine until a SWAT team arrived. The SWAT team was called to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by another member of Louvado’s squad, K.G. After the cocaine was loaded into the surveillance van, Louvado followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine was turned into the BPD’s Evidence Control Unit on February 20, 2009. Later that day, federal drug charges were filed against T.M.
Louvado admitted that he, K.G., and V.R. (another member of the squad) later discovered three kilograms of cocaine in the surveillance van that had been used to transport the 41 kilograms that were turned into BPD. The three kilograms were part of the seizure from T.M.’s pick-up truck but had not been turned into BPD. Louvado, K.G., and V.R. agreed that rather than turn this cocaine into BPD, they would sell it and split the proceeds. According to the plea agreement, a confidential informant of V.R.’s who was a drug trafficker purchased the cocaine, which the trafficker then sold in Baltimore. V.R. received the proceeds of the sale from his source and shared them with Louvado and K.G. Louvado acknowledged that he received $10,000 in drug proceeds from the sale of the three kilograms of cocaine.
On March 1, 2017, seven members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, including W.J. Following the filing of charges, the FBI continued to investigate misconduct by members of the BPD. On May 30, 2018, Louvado agreed to participate in a voluntary interview with an FBI special agent and an FBI task force officer, who questioned him about the seizure of cocaine on February 19 and 20, 2009. In that interview, Louvado knowingly falsified, concealed, and covered up material facts, namely, that he and two other officers had split the proceeds from the sale of the three kilograms of cocaine that had been seized by BPD that day. As a former federal task force officer himself, Louvado knew that it was a crime to provide false information during interviews with federal law enforcement. Louvado also knew that the FBI was investigating police corruption and was questioning him about the seizures that day in order to determine if police misconduct had occurred.
Louvado faces a maximum sentence of five years in federal prison for making false statements to federal agents. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Federal Jury Convicts Bryson City Woman of Distribution of A Controlled Substance Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Shannon White, 43, of Bryson City, N.C. of distribution of a controlled substance resulting in death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, witness testimony and evidence presented at trial, Shannon White, an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, was involved in the distribution of narcotics in an around Jackson and Swain Counties. Trial evidence established that on January 27, 2019, a victim, identified in court documents as “J.F.,” ordered heroin from White. White agreed to supply the heroin to J.F. and supplied him with a substance that White believed to be heroin, but that turned out to be fentanyl. According to trial testimony, J.F.’s use of the fentanyl resulted in J.F.’s overdose death. According to evidence presented at trial, White continued to sell narcotics even after she became aware of the J.F.’s death, as well as falsely accused several other individuals of committing the crime.
White is currently in custody. At sentencing, the charge carries a mandatory minimum sentence of 20 years in federal prison.
In making today’s announcement U.S. Attorney Murray commended the Swain County Sheriff’s Office and the DEA in Asheville for their investigation of this case, and thanked the FBI and the Cherokee Indian Police Department for their invaluable assistance.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Federal Inmate Sentenced for AssaultRead the Press Release
SPRINGFIELD, Mo. – An inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, was sentenced in federal court today for assaulting another inmate at the facility.
Earl F. Love, 55, was sentenced by U.S. District Judge Roseann Ketchmark to seven years in federal prison without parole. The court ordered today’s sentence to be served consecutively to Love’s previously imposed sentence of 25 years in prison for fatally stabbing a victim with whom he was angry because the victim borrowed his scooter for too long.
On Aug. 18, 2020, Love was found guilty at trial of one count of assault causing serious bodily injury. Evidence introduced during the trial indicated that Love walked into the cell of another inmate, identified in court documents as “D.W.,” on Dec. 30, 2018. Love and the victim were in an argument over a $46 sports gambling bet. As another inmate served as a lookout, Love struck D.W., fractured his nose and other bones in his face, and knocked him unconscious.
Afterward, the victim was transported by ambulance to the emergency room with potentially life-threatening injuries. D.W. was admitted to the hospital and spent several days in the Intensive Care Unit. According to court documents, the victim’s injuries not only required intubation to ensure he could continue to breathe, other serious injuries were inflicted that included a broken orbital bone, a fracture to his neck vertebrae, and facial injuries that have required several operations to reconstruct.
According to court documents, Love has a history of violent criminal behavior. While incarcerated, he has continued to amass a considerable amount of violations that includes repeatedly assaulting other inmates, disrespect to the staff, possession of contraband, and running a gambling pool.
This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI.
Federal Grand Jury A Indictments Announced- November 2020Read the Press Release
United States Attorney Trent Shores today announced the results of the November 2020 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Gilbert Bilal. Possession of a Firearm and Ammunition by an Alien Illegally in the United States. Bilal, 47, of Tulsa, is charged with being an alien unlawfully in the United States who possessed a Glock 19, 9mm pistol and ammunition. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
David Samuel Boggs, Jr. Felon in Possession of a Firearm and Ammunition; Possession of Firearm While Subject to a Domestic Violence Protective Order; Assault of a Spouse, Intimate Partner, Dating Partner by Strangling, and Attempting to Strangle or Suffocate in Indian Country; Assault With a Dangerous Weapon in Indian Country; Attempted Kidnapping in Indian Country; Interstate Violation of a Protective Order in Indian Country; Stalking in Indian Country; Carrying and Using a Firearm During and in Relation to a Crime of Violence (superseding). Boggs Jr, 34, of Tulsa, faces multiple charges including the violation of a protective order, stalking, attempted kidnapping and assault of a female victim. On June 10, 2020, the defendant allegedly assaulted his former dating partner by strangling her until she passed out and kicking her head and body with steel toe boots. From June 10-17, 2020, it is alleged that the defendant stalked the victim and attempted to kidnap her. Boggs Jr is also charged with being a felon in possession of an FMK 9mm pistol and ammunition. He was previously convicted of kidnapping and domestic abuse. He is also charged with possessing the firearm while subject to a protective order issued on April 3, 2019. The FBI and Tulsa Police Department are the investigative agencies.
James Jordan Buckley. Robbery in Indian Country; Burglary in the First Degree; Kidnapping in Indian Country. According to the indictment, Buckley, 21, of Tulsa, forcibly broke into the victim’s home, threatened the victim, and demanded the keys to her car. He then stole the car. On April 1, 2020, Buckley kidnapped two other victims and attempted to steal their car. The FBI and Tulsa Police Department are the investigative agencies.
Jeremiah Dylan Claxton. Unlawful User of a Controlled Substance in Possession of a Firearm. Claxton, 42, of Sand Springs, is charged with being a user of a controlled substance in possession of a Smith and Wesson 9mm semi-automatic pistol.The Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.
Bradley Don Goodin. Aggravated Sexual Abuse of a Minor under 12 in Indian Country (Counts 1-3); Abusive Sexual Contact with a Child under 12 in Indian Country (Count 4); Abusive Sexual Contact of a Child in Indian Country (Count 5) Possession of a Firearm While Subject to a Domestic Violence Protective Order (Count 6)(superseding). Goodin, 46, of Sapulpa, is charged with four counts of engaging in sexual acts with two Native American children under the age of 12, occurring in 2019. He is further charged with abusive sexual contact of a different child between the ages of 12 and 16, allegedly taking place from the Fall of 2008 to the Spring of 2009. Goodin is also charged with being in possession of 21 firearms while subject to a domestic violence protective order. The Sapulpa Police Department, Creek County Sheriff’s Office and FBI are the investigative agencies.
Randy Alan Hammett. Kidnapping in Indian Country; Carjacking; Possessing and Receiving a Stolen Firearm and Stolen Ammunition; Possession of a Firearm While Subject to a Domestic Violence Protective Order; Burglary in the Second Degree in Indian Country; Assault With a Dangerous Weapon in Indian Country; Domestic Violence in Indian Country; Interstate Violation of a Protective Order; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. (2nd superseding). Hamett, 63, of Choctaw, allegedly violated a protective order by breaking into his former spouse’s home, and assaulting and kidnapping her on April 25 and April 26, 2017. He is also charged with brandishing a firearm during the crime, carjacking, possessing a stolen firearm and ammunition, and possessing firearms and ammunition while subject to a protective order. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Broken Arrow Police Department, Siloam Springs Police Department, and the Rogers State University Police Department are the investigative agencies.
Michael Charles Hicks Jr. Robbery in Indian Country; Larceny of a Motor Vehicle in Indian Country (superseding). Hicks Jr, 50, of Okmulgee, allegedly used force and violence to steal a 2015 Cadillac Escalade from its owner. The FBI, Tulsa Police Department, and Oklahoma Highway Patrol are the investigative agencies.
Matthew Alan Joseph. Felon in Possession of a Firearm; Kidnapping in Indian Country; Assault With a Dangerous Weapon in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Theft Over $1,000 in Indian Country. Joseph, 37, of Tulsa, is charged with being a felon in possession of a Colt .45 pistol and associated ammunition after three domestic assault and battery convictions. In this superseding indictment, Joseph is further charged with kidnapping, assaulting a female victim using a knife, and assaulting the victim by strangling her. He is also charged with stealing the victim’s Toyota Camry. The FBI and Tulsa Police Department are the investigative agencies.
Jamie Lea Keahbone. Child Abuse in Indian Country; Assault With a Dangerous Weapon in Indian Country. Keahbone, 40, of Broken Arrow, is charged with abusing a female minor by striking, beating, strangling, and suffocating her on Oct. 14, 2020. Keahbone is further charged with assaulting the minor with a lamp base. The FBI and Broken Arrow Police Department are the investigative agencies.
Shannon James Kepler. First Degree Murder in Indian Country; Causing Death by Using and Discharging a Firearm During and in Relation to Crimes of Violence; Assault With a Dangerous Weapon in Indian Country. Kepler, 60, of Tulsa, is charged with deliberately and with premeditation and malice aforethought murdering Jeremey Lake by shooting him multiple times with a firearm on Aug. 5, 2014. He is also alleged to have assaulted a second male victim by discharging a firearm at the victim. The FBI and Tulsa Police Department are the investigative agencies.
Derek Howard Long. Felon in Possession of a Firearm; Felon in Possession of a Firearm and Ammunition. Long, 33, of Tulsa, is charged with being a felon in possession of a Hi-Point,.380 caliber semi-automatic pistol and ammunition. He is further charged with being a felon in possession of a Smith and Wesson .40 caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Benjamin Marcantel. Assault Resulting in Serious Bodily Injury in Indian Country. Marcantel, 37, of Tulsa, is charged with assaulting a male victim by striking him with a pick-up truck, resulting in a serious compound fracture of the victim’s leg. The FBI and Tulsa Police Department are the investigative agencies.
Tyler Austin McGhee. Aggravated Sexual Abuse in Indian Country; Burglary in the First Degree in Indian Country; Aggravated Sexual Abuse in Indian Country; Strangulation of a Dating and Intimate Partner in Indian Country. On Oct. 10, 2020, McGhee, 26, of Broken Arrow, is alleged to have sexually abused the victim. Then on Oct. 23, 2020, McGhee is alleged to have broken into the victim’s home and strangled and sexually abused the victim, causing her to fear for her life. The FBI and Broken Arrow Police Department are conducting the investigation.
Craig Alan Morrison and Amanda Lyn Walker. Child Abuse in Indian Country; Enabling Child Abuse in Indian Country (superseding). Morrison, 36, and Walker, 41, of Tulsa, are charged with enabling and committing acts of child abuse. Morrison is charged with abusing a child under the age of 18, while Walker is being charged with enabling and allowing the abuse to take place. The FBI and Tulsa Police Department are the investigative agencies.
Emmanuel Nunez. Possession of a Firearm After a Conviction for a Misdemeanor Crime of Domestic Violence. Nunez, 37, of Tulsa, is charged with possessing a firearm after a domestic violence conviction. Nunez, knowing he had previously been convicted of domestic violence, was found to be in possession of A Rock Island Armory, .45 caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tulsa Police Department are the investigative agencies.
Ronald Alexander Rodriguez-Paz and Eva Estrada Juarez. Obtaining Forced Labor; Benefiting From Forced Labor; Involuntary Servitude; Trafficking With Respect to Peonage, Slavery, Involuntary Servitude, and Forced Labor; Use of False Social Security Number; Use or Possession of False Immigration Documents; Aggravated Identity Theft (superseding). Paz-Rodriguez, 36, and Juarez, 29, of Tulsa, aided and abetted each other in obtaining the labor and services of a minor child through 1. force, threats of force, physical restraint and threats of physical restraint; 2. serious harm and threats to seriously harm; 3. the abuse and threatened abuse of the law and legal process; and 4. multiple schemes to cause the victim to believe she would suffer serious harm if she did not perform the labor and services. The two are also charged with benefiting financially as a result of the forced labor; holding the minor to a condition of involuntary servitude; and recruiting, harboring, transporting, providing and obtaining the minor child for labor and services. They are both further being charged with using a false social security card, Paz-Rodriguez listing a false SSN on a rent application, and Juarez falsely listing a SSN on an employment application. Paz-Rodrigues is also being charged for using a forged permanent resident card. Paz-Rodriguez and Juarez are both being charged with aggravated identity theft for using means of identification they knew belonged to another person. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Jose Pizana Ruiz and Brittany Paige Coffee. Possession of Methamphetamine with Intent to Distribute. On Sept. 17, 2020, Ruiz, 44, and Coffee, 27, allegedly possessed with intent to distribute 500 grams or more of methamphetamine. The Tulsa Police Department is the investigative agency.
Travis Dray Stewart. Aggravated Sexual Abuse of Children in Indian Country. Stewart, 40, of Tulsa, knowingly engaged in sexual acts with a child under the age of 12. The FBI and Tulsa Police Department are the investigative agencies.
Jaymz Joe Vann. Felon in Possession of Firearm and Ammunition. Vann, 26, is charged with being a felon in possession of a Taurus, .40 caliber semi-automatic pistol and six rounds of ammunition. Vann is a 3-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Phillip Eugene Wallace. Felon in Possession of Firearms and Ammunition. Wallace, 31, of Tulsa, is charged with being a felon in possession of a Glock .40 caliber pistol, a Taurus .40 caliber pistol, and multiple rounds of ammunition. Wallace is a 6-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Kyla Morgan Westbrook. Possession of Methamphetamine With Intent to Distribute. Westbrook, 24, is charged with possessing 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine with the intent to distribute. The Tulsa Police Department is the investigate agency.
Kendall Ray Whitlow. Child Abuse in Indian Country; Child Neglect in Indian Country. Whitlow, 23, of Tulsa, physically abused a child under the age of 18. Further, Whitlow is also charged with child neglect after failing to provide adequate nurturance, affection, food, shelter, hygiene, sanitation, appropriate education, supervision, behavioral health care, and medical and dental care to the same child. The FBI and Tulsa Police Department are the investigative agencies.
Sherman Herbert Wilde III. Assault With a Dangerous Weapon in Indian Country. Wilde III, 37, of Tulsa, is charged with assault for discharging a firearm at the victim. The FBI and Tulsa Police Department are the investigative agencies.
Michael Douglas Williams. Failure to Register as a Sex Offender. Williams, 46, of Tulsa, knowingly failed to register as a sex offender after being convicted as such under Federal Law. The U.S. Marshals Service and Tulsa County Sherriff’s Office are the investigative agencies.
Sean Bonham Windsor. Felon in Possession of Firearms and Ammunition; Fugitive From Justice in Possession of Firearms and Ammunition. Windsor, 39, is charged with being a felon and a fugitive from justice in possession of a Ruger 5.7x28 caliber semi-automatic pistol, a Smith and Wesson .40 caliber semi-automatic pistol, and various kinds of ammunition. Windsor is a 24-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Marshals Service are the investigative agencies.
Tarence Lavell Woods. Felon in Possession of Firearm and Ammunition; Illegal Possession of a Machine Gun; Maintaining a Drug-Involved Premises; Possession of a Machine Gun in Furtherance of a Drug Trafficking Crime; Possession of a Firearm in Furtherance of a Drug Trafficking Crime (superseding). Woods, 22, of Tulsa, is being charged with being a felon in possession of a Glock, 9x19mm caliber pistol and ammunition. He is also being charged with maintaining a space in order to use, manufacture, and distribute cocaine as well as use and distribute marijuana. He is further being charged for using his firearm in furtherance of a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Ex-Financial Advisor Sentenced to More Than 3 Years in Prison for Defrauding Professional Athlete Clients in Ticket Company ScamRead the Press Release
SANTA ANA, California – A former Orange County financial advisor and lawyer was sentenced today to 37 months in federal prison for stealing millions of dollars of his pro athlete clients’ money and investing it in a cash-losing ticket company on which he was a board member.
Ash Narayan, 55, of Irvine, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $18,811,231 in restitution. Narayan pleaded guilty in June 2019 to a two-count information charging him with wire fraud and subscribing to a false tax return.
Narayan worked as an investment advisor at RGT Capital Management Ltd.’s Irvine office and also was a licensed California lawyer until his disbarment earlier this year. At RGT, Narayan’s clients were high-net-worth individuals who were current and former professional athletes.
In addition to his job at RGT, Narayan served on the board of directors for The Ticket Reserve Inc. (TTR), an Illinois-based technology company that allowed customers to buy an option on a ticket to future sporting events, such as playoff games, which they could cash in if their team made the postseason. TTR never was profitable and carried millions of dollars in debt.
From December 2009 to early 2016, Narayan advised his clients to invest in TTR, but failed to disclose to them his role in the company as well as the fact that it was a high-risk investment and an unprofitable business. At times, Narayan directed RGT employees to forge his clients’ signatures on wire authorizations to direct significant amounts of his clients’ money into TTR without their knowledge or consent.
Narayan left RGT in 2016 and The Ticket Reserve was put into receivership later that year.
Narayan also knowingly subscribed to a materially false federal income tax return when he reported that his total income for 2012 was $543,072, when in truth it was $1,138,072.
In a related case brought by the Securities and Exchange Commission in federal court in Dallas, Narayan was ordered to repay $1,498,000 in ill-gotten gains as well as a $350,000 civil penalty.
This matter was investigated by the FBI and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office.
Eldon Man Sentenced to Thirty Years in Prison for Transportation of Child PornographyRead the Press Release
DES MOINES, IA – On November 5, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Troy Wayne Davis, age 57, formerly of Eldon, Iowa, to 360 months in prison for Transportation of Child Pornography, announced United States Attorney Marc Krickbaum. Davis was ordered to serve five years of supervised release to follow his prison term, pay $40,000 in restitution, and comply with sex offender registry requirements upon release.
The investigation began in early 2019 when law enforcement received investigative leads from the National Center for Missing and Exploited Children that images of child pornography had been uploaded on Davis’ social media accounts. Investigators executed a search warrant at Davis’ Eldon residence in August 2019. Police seized Davis’ computers and phones which contained thousands of videos and images of child pornography. The investigation showed that Davis sent and received videos of child pornography to other persons, solicited minor boys online to send him nude photos, and solicited minors for sex via the internet. In 1998, Davis was convicted in the Iowa District Court for Wapello County on two instances of Lascivious Acts with a Child.
This case was investigated by the Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Eight Alleged Associates of Drug Trafficking Organization Indicted and ArrestedRead the Press Release
LAS VEGAS, Nev. – Eight alleged associates of the Pomona Sur Lokotes drug trafficking organization have been arrested for their alleged roles in trafficking large quantities of methamphetamine from California and Mexico to Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned a 22-count indictment charging Luis Arellano, aka “Lewis Arellano” aka “Laughter,” 29; Jacqueline Martinez, 29; Ivan Salazar, aka “Evil,” 38; Domingo Montes Jr., aka “JR,” 34; Amelio Che Medina, 43; Anna Barrios, 32; and Victor Manuel Rodriguez, aka “Smokey,” 37, all of Las Vegas, for conspiracy to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm. A federal grand jury also returned a seven-count indictment charging Sergio Rios, aka “Gremlin,” 36, of Las Vegas, for distribution of methamphetamine.
According to court documents, law enforcement began investigating Arellano and other associates of the Pomona Sur Lokotes drug trafficking organization in December 2019. As alleged, Arellano and Martinez traveled to California to pick up methamphetamine and cocaine that they — along with the other defendants — then distributed in Las Vegas. Between September 13 and November 4, law enforcement arrested the defendants and, during the course of the operation, law enforcement seized: over 12 kilograms (approximately 26 pounds) of methamphetamine, 1.5 kilograms of cocaine, and nine firearms.
In addition to drug charges, Salazar and Medina are each charged with one count of felon in possession of a firearm. Salazar is alleged to have possessed a semi-automatic rifle after previously been convicted of felonies in Nevada. Medina is alleged to have possessed a 9mm handgun after previously been convicted of felonies in Utah. Under federal law, felony convictions prohibit an individual from possessing a firearm.
“This case exemplifies the targeted, impactful prosecutions that our office has been prioritizing to drive down crime rates and dismantle drug trafficking organizations,” said U.S. Attorney Trutanich. “We look forward to continuing to work closely with our law enforcement partners, including the Las Vegas Metropolitan Police Department and the FBI, to increase public safety and get illegal drugs out of our communities.”
“Today's announcement is a direct result of the hard work and dedication shared between local and federal authorities in our efforts to combat drug trafficking organizations who distribute methamphetamine and cocaine in our communities,” said Special Agent in Charge Rouse. “The FBI’s Safe Streets Gang Task Force will continue to pursue investigations into individuals and groups who have furthered the scourge of drugs in our neighborhoods."
If convicted, each defendant faces a statutory maximum sentence of lifetime imprisonment and a $10,000,000 fine.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Safe Streets Gang Task Force and the Las Vegas Metropolitan Police Department.
The investigation is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Drug Dealer Who Sold “Ghost Guns,” Silencers, and a Machinegun Sentenced to Thirty Years in Federal PrisonRead the Press Release
A man who sold cocaine and firearms, including a machinegun with an integrated silencer, to another drug dealer was sentenced today to serve thirty years in federal prison.
Raven Damien Meader Burkhow, age 26, from Cedar Rapids, Iowa, received the prison term after a January 17, 2020 guilty plea to conspiracy to distribute a controlled substance, two counts of use and possession of a firearm during and in furtherance of a drug trafficking crime, possession of a sawed-off shotgun in furtherance of a drug trafficking crime, possession of machineguns, and possession of an unregistered pipe bomb.
Evidence at sentencing and prior hearings showed that Burkhow sold cocaine on five occasions to a confidential informant, who Burkhow knew to be a drug dealer. After one such transaction, Burkhow offered to sell the informant a pipe bomb. Burkhow also sold a gun without a serial number, otherwise known as a “ghost gun,” with a silencer and a machinegun with an integrated silencer to the informant. Burkhow sold the cocaine and guns from the doorway of his apartment building located in downtown Cedar Rapids. Law enforcement officers searched Burkhow’s apartment and seized twenty firearms, including machineguns, a sawed-off shotgun, and a pipe bomb. They also found cocaine, thirteen silencers, and thousands of rounds of ammunition in his apartment. Burkhow was also ordered to forfeit $177,720 in cash, six gold bars valued at approximately $5,522.50, firearms, and ammunition, which were seized in connection with the case.
Burkhow was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burkhow was sentenced to 360 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Burkhow is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Kyndra Lundquist and Richard Murphy and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-59.
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Court of Appeals upholds conviction of local man who tried to join ISISRead the Press Release
DAYTON – U.S. Attorney David M. DeVillers announced the United States Sixth Circuit Court of Appeals ruled yesterday in favor of the government, upholding the conviction of Laith Waleed Alebbini. The 29-year-old Jordan citizen was convicted of conspiring and attempting to join ISIS following a bench trial in Dayton in November and December 2018 before U.S. District Judge Walter H. Rice.
Court documents and trial testimony detail that on April 26, 2017, FBI agents arrested Alebbini at the Cincinnati-Northern Kentucky International Airport, as he was attempting to travel to Turkey and then Syria to join ISIS – a designated foreign terrorist organization. Alebbini is a U.S. legal permanent resident who was living in Dayton.
About one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
In another, previous conversation with a friend, Alebbini said, “I, cousin, want to go be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
Alebbini was sentenced in June 2019 to 180 months in prison and 25 years of supervised release for attempting to and conspiring to join the Islamic State of Iraq and al-Sham (ISIS). He will likely face deportation following service of his prison term.
In his appeal, Alebbini challenged the sufficiency of the evidence for both of his convictions. He argued the proof was insufficient to convict him of conspiring to provide material support to ISIS because it did not demonstrate that he entered into any kind of agreement with his cousin, Raid, his alleged co-conspirator, who departed Dayton prior to Alebbini’s attempt but was apprehended by Jordanian authorities upon arrival there. He also argued that the evidence was insufficient to convict him of attempting to provide material support to ISIS because, in his view, it did not demonstrate that he took a substantial step towards the crime, or that he intended to work under the direction and control of ISIS.
The Court of Appeals ruled against Alebbini’s arguments, stating in a precedent-setting published opinion that the government proved the elements of the crimes beyond a reasonable doubt.
Specifically, the Court of Appeals stated the government sufficiently proved conspiracy elements through consistent information and conversations detailing Alebbini’s plans with a co-conspirator to join and fight for ISIS.
Likewise, the government showed sufficient evidence that Alebbini took a substantial step towards the crime when, after research, preparation, and conveying to others his intent to join ISIS and work under its direction and control, Alebbini embarked on his journey to ISIS by departing Dayton, traveling to the Cincinnati/Kentucky International airport, sending farewell messages to family, checking in for his flight, and walking toward the airport security checkpoint after obtaining his airline ticket, all of which corroborated Alebbini’s intent
First Assistant United States Attorney Vipal J. Patel argued the appeal on behalf of the United States.
The FBI’s Joint Terrorism Task Force investigated the criminal case against Alebbini. First Assistant Vipal J. Patel and Assistant U.S. Attorney and Deputy Criminal Chief Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted the criminal case.
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Convicted Felon Arrested on Federal Child Pornography ChargeRead the Press Release
BOSTON – An Auburn man who is currently on supervised release for a child pornography conviction was arrested today for a child pornography offense.
Christopher Rondeau, 35, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance today before U.S. Magistrate Judge David H. Hennessy, Rondeau was detained pending a detention hearing scheduled for Nov. 13, 2020.
According to the charging documents, law enforcement executed a search warrant at Rondeau’s residence and found a cell phone containing images and videos of child pornography hidden under a dresser in his bedroom. In 2016, Rondeau was convicted of receipt of child pornography and sentenced to 68 months in prison and seven years of supervised release. He was released from federal custody in August 2019 and is registered as a Level II sex offender in the Commonwealth of Massachusetts.
Due to Rondeau’s prior conviction, the charging statute provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charity Founders Sentenced to Prison for Using Non-Profit to Steal from Donors and Cheat on Their TaxesRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619) 546-7304
NEWS RELEASE SUMMARY – November 6, 2020
SAN DIEGO – A Bonita husband and wife were sentenced in federal court today to 9 months and 15 months, respectively, in prison for using their charity to obtain donations from various companies – supposedly to give to the needy - and then selling those donations for a profit and failing to pay taxes on the profits.
According to plea agreements, Geraldine and Clayton Hill admitted they used lies and false promises to induce prominent companies to donate valuable goods to the Hills’ 501(c)(3) tax-exempt non-profit organization, known as On Your Feet, Inc., also known as Family Resource Center. Instead of using all the clothing and other donations to help the down-on-their luck get back on their feet, as their charity’s name suggested, or to provide resources for families, the Hills brazenly sold many donated goods for cash to be resold at discount outlets, and pocketed the proceeds. By preying on the generosity of others, they managed to get valuable goods at no cost and tax-free, which they resold for their personal benefit. What is more, the Hills used the tax-exempt charity as their personal bank account and evaded their own tax obligations, cheating the IRS by failing to pay over $50,000 in taxes on over a million dollars in ill-gotten gains from their fraud.
According to court documents, On Your Feet, Inc. claimed to “provid[e] assistance to low-income families and individuals in need to better their living conditions and quality of life.” Beginning at least as early as March 2009, however, the Hills conspired to fraudulently obtain charitable donations of clothing and other items from multiple companies by falsely promising and certifying that they would not to sell the merchandise for profit. The Hills violated those promises, knowingly reselling donated merchandise and using the proceeds from selling donated items to financially support themselves, their family members and other associates.
The Hills tricked multiple companies, including Forever 21, Feed the Children, Brooks Sports and Goods360, into donating millions of dollars of goods to their so-called charity. For example, in soliciting donations from Forever 21, the Hills falsely claimed in their marketing materials that “[t]he merchandise is never sold by On Your Feet Incorporated and any merchandise impossible to sell is disposed of.” In an email on May 20, 2015, to Forever 21, Geraldine Hill explained that the “routine for processing donated items” included “cutting [the] inside label in half” and “defacing [the] inside label with permanent marker,” and falsely insisted that “we’ve never had a problem with any donations we have received that companies have been so kind to donate.” In fact, Geraldine Hill knew at the time she sent that email to Forever 21 that her statement was a lie, because at least three years earlier, she had learned that Disney no longer wanted its donations to go to On Your Feet because the donated goods were appearing at local flea markets for sale.
In reliance on Ms. Hill’s false promises that the goods would not be re-sold, in June 2015, Forever 21 donated to On Your Feet approximately 161 pallets of clothing, which Forever 21 estimated had a retail value of $5.6 million. Immediately upon receiving the pallets from Forever 21, the Hills sold the donated goods to an operator of for-profit discount retailers. In September 2016, the Hills solicited additional donations from Forever 21 by promising to use them for a “Christmas Giveaway,” and in response, in October Forever 21 donated another 16 pallets of clothing with a retail value of $314,371. Once again, immediately upon receiving the pallets from Forever 21, the Hills sold donated goods to the same for-profit discount retailer. Based on the Hills’ series of false representations, Feed the Children and Forever 21 – just two of the Hills’ multiple victims – donated over $16 million in goods between 2010 and 2017.
With their repeated lies, between 2011 and 2016, the Hills personally received proceeds from the fraud totaling over $1.3 million. They spent the money on personal expenses including luxury retail purchases, vacations, entertainment, vehicles (including a $124,000 Mercedes), rent on a seven-bedroom, seven-bathroom home, and donations to their church. In their plea agreements, they admitted that they paid no taxes on their illegal gains.
The Hills further exploited their non-profit organization to cheat in other ways. For example, they falsified pay stubs claiming that defendant Clayton Hill earned a salary of over $100,000 from On Your Feet (even though the organization had never issued paystubs or W2s to Hill, and Hill was not claiming income in any tax filing). Armed with the phony pay stubs to demonstrate their income, the Hills applied to rent a seven-bedroom, seven-bathroom home that cost $6,000 per month.
In order to conceal their true income from the IRS and obstruct the IRS’s ability to monitor the charity’s tax-exempt status, the Hills filed false charitable tax returns. The charity’s tax returns falsely claimed that On Your Feet received less than $25,000 in gross receipts in tax year 2009, and less than $50,000 in tax years 2011-2015. In reality, the organization had received millions of dollars in valuable in-kind donations, and hundreds of thousands of proceeds from the unauthorized sale of those donations. By hiding the non-profit’s income, the Hills were able to hide their own income. As a result of the Hills’ fraudulent concealment of their income, they avoided paying $50,933 in tax years 2013 and 2014.
In addition to their prison sentences, the Hills were ordered to pay $50,933 in restitution to the IRS; a further restitution hearing related to the donor victims is scheduled for December 11, 2020.
“Geraldine and Clayton Hill abused the generosity of charitable donors and used their non-profit charity organization as their personal bank account,” said U.S. Attorney Robert Brewer “Although all tax evasion is serious, the conduct by the Hills is particularly offensive because they have undermined the faith of donors in charitable giving.” Brewer commended Assistant U.S. Attorney Rebecca Kanter and Trial Attorney Valerie Preiss of the Justice Department’s Tax Division, as well as agents from the IRS and FBI for their excellent work on this case.
“The Hills’ fraudulent scheme undermined legitimate charities with true intent to benefit low income families in order to satisfy their personal greed and an indulgent lifestyle,” said Suzanne Turner, Special Agent in Charge of FBI San Diego. “The FBI is hopeful that this sentence will send a message to anyone who would try to take advantage of the generosity of donors intending to help those in need.”
“Geraldine and Clayton Hill lied to unsuspecting donors about the direction of charitable contributions and engaged in tax fraud to cover their trail,” said Jim Lee, Chief of IRS Criminal Investigation. “Unfortunately, the donors were well-meaning organizations interested in helping the needy and this fraud prevented real people in need from receiving assistance. IRS Criminal Investigation works tirelessly to ensure that criminals like the Hills are brought to justice. In cases like these, not only do the needy of our communities suffer, but also taxpayers and the United States government.”
This case was prosecuted by Assistant U.S. Attorney Rebecca Kanter and Special Assistant U.S. Attorney Valerie Preiss.
DEFENDANTS Case Number 20CR0783-DMS
Geraldine Hill Age: 60 Bonita, CA
Clayton Hill Age: 59 Bonita, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail Fraud – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Internal Revenue Service Criminal Investigations
Federal Bureau of Investigation
California man sentenced to two years in prison for sexual assault on an aircraftRead the Press Release
Seattle – A 43-year-old Van Nuys, California, man was sentenced today in U.S. District Court in Seattle to two years in prison for two federal felonies for his sexual assault of a young woman on a flight from London to Seattle, announced U.S. Attorney Brian T. Moran. BABAK REZAPOUR was convicted on January 22, 2020, of abusive sexual contact in a special aircraft jurisdiction and abusive sexual contact with an incapacitated victim. The jury deliberated about two and a half hours following a five-day jury trial. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said the crime was “an evil act…. An awful, horrible, nightmare situation.”
“This defendant not only assaulted this young woman on the plane, his history shows escalating assaults on women even before this incident,” said U.S. Attorney Brian Moran. “I commend this brave victim who has endured the pain of describing this crime to first responders, investigators, and ultimately to the jury.”
According to records filed in the case and testimony at trial, REZAPOUR sexually assaulted the 20-year-old victim while she was incapacitated from medication and alcohol on a Norwegian Air flight from London to Seattle on January 10, 2018. The victim had taken prescribed anti-anxiety and anti-nausea medication and drank a glass of wine. The victim then accepted a second glass of wine purchased for her by REZAPOUR. After drinking the second glass, the victim became unusually sleepy. She awoke to find REZAPOUR sexually assaulting her. REZAPOUR used his jacket to shield the activity from other passengers. The victim fled to the back of the plane and reported the assault to flight attendants.
At trial, witnesses described seeing REZAPOUR move into the seat next to the victim, contradicting his statements to law enforcement that he had stayed in his aisle seat with an open seat between them. In multiple statements to different investigators following the incident, REZAPOUR changed his description of what had occurred on the plane. In addition to consistent statements from the victim and witnesses, prosecutors used DNA evidence to prove REZAPOUR’s guilt beyond a reasonable doubt. An FBI DNA expert described how she discovered REZAPOUR’s DNA inside the victim’s underwear.
In sentencing documents, prosecutors describe how REZAPOUR’s criminal history shows a pattern of sexual assault. REZAPOUR was charged in 2012 in a prostitution sting in California. In 2017, just six months before the airplane assault, REZAPOUR was escorted out and banned from a North Carolina resort hotel after molesting a hotel worker who was cleaning the men’s locker room. “These were not isolated incidents. They can credibly be interpreted as a continuing course of conduct reflecting an ongoing urge to sexually assault strangers in increasingly serious attacks,” prosecutors wrote in their sentencing memo.
Prosecutors asked for an above guidelines sentence, noting that sex assault crimes on aircraft are on the rise and need to be deterred. According to the FBI, in 2014, 38 cases of in-flight sexual assaults were reported. In 2017, that number increased to 63 reported cases. In 2019, these assaults increased to 119 reported cases.
At the sentencing hearing the victim spoke to REZAPOUR saying “you saw me as an object and took from me whatever you wanted… You made me distrust every man in my life…. You made me feel less than what I was.” After she spoke Judge Lasnik told her she should be proud of how strong she has been in working to recover from this sexual assault and hold REZAPOUR accountable.
REZAPOUR has been in custody since the jury verdict in January 2020. He told the court he was begging for forgiveness, “I have a problem and I need help.”
REZAPOUR is required to register as a sex offender following his prison term.
The case was investigated by the Port of Seattle Police and the FBI. The case was prosecuted by Assistant United States Attorneys Marie Dalton and Grady Leupold.
Calhan School Teacher Sentenced to Nearly 4 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Patrick McMahon, age 30, a resident of Colorado Springs, Colorado who was a former school teacher in Calhan, Colorado, was sentenced to serve 46 months in federal prison (nearly 4 years) followed by 5 years supervised release for possession of child pornography. He was also ordered to pay $30,000 in restitution to certain victims of his crime. McMahon appeared at the hearing remotely, free on bond. He was ordered to voluntarily surrender to a Bureau of Prisons facility. Homeland Security Investigations (HSI) joined in this announcement.
According to the stipulated facts contained in McMahon’s plea agreement, defendant Patrick McMahon was brought to the attention of law enforcement when his ex-wife asked the Colorado Springs Police Department (CSPD) to analyze his laptop. She was in possession of the computer and was concerned because he had previously used it to show her child pornography. Colorado’s Internet Crimes Against Children (ICAC) Task Force obtained a search warrant leading to a computer forensic examination which revealed that the laptop contained child pornography or child erotica. Additionally, there was evidence that a peer-to-peer file sharing program had been installed on the computer and the program contained terms indicative of child pornography.
Based on the discovery of child pornography on the laptop, state search warrants were obtained for the defendant's home, school, vehicle, and person. Those search warrants were executed on January 7, 2019. McMahon was searched at his place of employment, a Calhan high school where he was a teacher. In addition to the child pornography discovered on the defendant’s laptop, the computer forensic examination revealed child pornography on additional devices belonging to the defendant: a cell phone recovered from the defendant's person at the school and a custom desktop computer with two hard drives as well as an external hard drive recovered from the defendant's home.
Copies of all of the files depicting child pornography were provided to the National Center for Missing and Exploited Children (NCMEC). NCMEC reported that 602 of the image files and two of the video files possessed by McMahon depict minor victims previously identified by law enforcement.
“Stopping the use of child pornography is a top priority for this office,” said U.S. Attorney Jason Dunn. “Thanks to the outstanding work of our HSI and ICAC partners, Mr. McMahon will go from spending his days in a high school classroom to spending them in a federal prison cell.”
“The victimization of children is a heartbreaking violation of trust and HSI worked relentlessly with our partners to bring McMahon to justice. Because he was a teacher we hope this sentence ensures he can never work with children again,” said Steven Cagen, special agent in charge of Homeland Security Investigations, Denver. “HSI, along with local, state and federal partners, worked tirelessly to investigate and prosecute McMahon to the fullest extent possible.”
This case was investigated by HSI and the Colorado ICAC Task Force. The case was prosecuted by Assistant United States Attorney Alecia L. Riewerts.
Patrick McMahon was charged by Indictment on April 18, 2019, and pleaded guilty to the charge on January 16, 2020. The sentence was pronounced by U.S. District Court Judge R. Brooke Jackson on November 2, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-185.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Bergen County Man Sentenced to 14 Years in Prison for Role in $7 Million Fraud Scheme and Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 168 months in prison for using bogus litigation support companies to obtain millions from two law firms where his wife was a partner and for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Melvin Feliz, 54, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. He also previously pleaded guilty to Count One of an indictment charging him and two co-defendants with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in these cases and statements made in court:
Feliz’s wife, Keila Ravelo, 55, also of Englewood Cliffs, worked as a partner at Law Firm 1 from July 1, 2005, through October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 through November 2014. Feliz admitted that during that time, Feliz and Ravelo formed two limited liability companies, Vendor 1 and Vendor 2, that purported to provide litigation support for both firms, but in fact provided no actual services.
Feliz admitted that from 2008 through July 2014, he and Ravelo controlled the Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1, Law Firm 2 and a client of both firms for work that was never performed. Ravelo, in her capacity as a partner at the law firms, approved payments to Vendor 1 and Vendor 2 that Ravelo and Feliz later used for personal expenses.
Over the course of the conspiracy, the law firms paid Vendor 1 and Vendor 2 approximately $7.8 million. Feliz admitted that he failed to report the income on his tax returns, including $2.36 million in illicit profits from 2012 alone.
Separately, Feliz and co-defendants Irving Olivero-Pena, 48, of Edgewater, New Jersey, and Robert Crawford, 45, of Long Island City, New York, each previously pleaded guilty to their roles in a cocaine distribution scheme. They admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
In addition to the prison term, Judge McNulty sentenced Feliz to five years of supervised release and ordered forfeiture of $7.9 million. Restitution will be determined at a later date. Ravelo was sentenced in October 2018 to five years in prison. Crawford was sentenced in July 2015 to 10 years in prison. Olivero-Pena is scheduled to be sentenced Nov. 9, 2020.
U.S. Attorney Carpenito credited special agents from the U.S. Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Susan A. Gibson; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Amsterdam Man Charged with Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Love, Jr., age 31, of Amsterdam, New York, was ordered detained yesterday on a charge of distributing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
On October 27, 2020, Love was charged by criminal complaint with distributing child pornography. Yesterday, United States Magistrate Judge Christian F. Hummel conducted a detention hearing and ordered Love detained pending trial.
The complaint alleges that, on or about July, 11, 2020, Love distributed images depicting the sexual exploitation of children via an online social media platform. Love further admitted to distributing child pornography on other social media platforms and over email, as well.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty. If convicted, Love faces at least 5 and up to 20 years in prison, a mandatory term of supervised release of at least 5 years and up to life, and a maximum fine of $250,000. 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. Love would also have to register as a sex offender.
This case is being investigated by the FBI and its Child Exploitation Task Force, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Anyone who wants to provide law enforcement with information about the defendant should contact the FBI Albany Field Office at (518) 465-7551.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Thursday 5 November 2020
Wythe County Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
ABINGDON, Va. – Joseph Miles, a Wythe County, Virginia man who conspired to distribute oxycodone and illegally possessed a firearm, pleaded guilty today in U.S. District Court in Abingdon to a pair of federal charges, Acting United States Attorney Daniel P. Bubar announced.
Miles, 34, pleaded guilty to one count of conspiracy to distribute oxycodone and one count of illegal possession of a firearm while being an unlawful user of a controlled substance. At sentencing, Miles faces up to twenty years in prison and/or a fine of up to $1 million.
According to court documents, from July 2016 through February 2019, Miles, and others, conspired to distribute oxycodone for himself and his father by having Dr. David Lelio write prescriptions in his name that had no legitimate medical purpose and were outside the scope of professional practice, with an agreement that some of the oxycodone pills would be shared with Dr. Lelio’s wife.
Evidence also showed that on February 15, 2019, Miles, while being an unlawful user of an addictive controlled substance, including oxycodone, possessed a firearm.
The investigation of the case was conducted by the Wythe County Sheriff’s Office and Virginia State Police. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
Wise Psychiatrist Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
ABINGDON, Va. – Uzma Ehtesham, a Wise, Virginia psychiatrist who defrauded Virginia Medicaid and Medicare by fraudulently billing these programs for services, pleaded guilty today to federal health care fraud. Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring announced today.
Ehtesham, 52, waived her right to be indicted and pleaded guilty today to a one-count Information charging her with health care fraud.
“Through Ehtesham’s fraud scheme, she stole funds from Virginia Medicaid and Medicare, which provide an essential safety net for our most vulnerable residents. When someone defrauds that system, the Department of Justice, and our partners with the Virginia Attorney General’s Office will hold them accountable,” United States Attorney Bubar said today. “I am thankful to the many local, state, and federal partners who assisted in this complex investigation.”
“Health care fraud not only undermines an important system that provides critical medical services to tens of thousands of Virginias but it also wastes hundreds of thousands of taxpayer dollars,” said Virginia Attorney General Mark Herring. “I want to thank my Medicaid Fraud Control Unit for their continued hard work to hold health care providers accountable when they defraud the system and we will continue to work with our local, state, and federal partners to pursue these cases.”
According to court documents, from 2010 to 2016, Ehtesham devised a scheme to defraud Virginia Medicaid and Medicare by billing for individual office visits when she often saw patients in groups of two to four patients per visit.
In addition, Ehtesham billed for extensive, time consuming, and costly office visits when she was conducting brief office visits consisting of five to six minutes and billed for services not supported by required documentation.
During the time of the investigation, Ehtesham was seeing in excess of 50 patients per day. Often, prescriptions were written in advance of a scheduled visit by the office staff, placed in patient files, and signed by Ehtesham during the brief patient visit. At times, Ehtesham did not employ any medically certified staff to compile patient’s vital statistics at each visit. Instead, vital statistics were copied from previous patient visits to each new visit information sheet at Ehtesham’s direction.
As part of the scheme to defraud, Ehtesham received $500,000 in fraudulently obtained processed from Virginia Medicare and Medicaid.
As part of the plea agreement, Ehtesham is required to pay a total of $1,000,000, consisting of restitution, fines, and forfeiture.
A sentencing hearing has been scheduled for January 28, 2021, at 2:30 p.m.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Norton Police Department, Southwest Virginia Drug Task Force, and Virginia State Police. The following agencies assisted with the execution of a search warrant during the investigation: Big Stone Gap Police Department, Virginia Alcohol and Beverage Control Special Investigations Unit, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, and Wise Police Department. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threat Unit, is prosecuting the case for the United States. Virginia Assistant Attorney Generals and Special Assistant United States Attorneys Janine Myatt and Joe Hall also assisted with the investigation.
Wheeling man sentenced for distributing methRead the Press Release
WHEELING, WEST VIRGINIA – Deante Creel, of Wheeling, West Virginia, was sentenced today to 121 months of incarceration for drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.
Creel, also known as “G,” pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2020. Creel, age 33, admitted to having methamphetamine in Ohio County in May 2019.
Creel was also ordered for forfeit $12,467 in cash, three firearms, and ammunition.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
United States Files A Civil Action to Forfeit Cryptocurrency Valued at over One Billion U.S. DollarsRead the Press Release
SAN FRANCISCO - The United States filed a civil complaint today to forfeit thousands of Bitcoins, valued at over $1 billion dollars, seized by law enforcement on November 3, 2020, announced United States Attorney David L. Anderson of the Northern District of California and Special Agent in Charge of the Washington DC Field Office, Internal Revenue Service Criminal Investigation (IRS-CI) Kelly R. Jackson. The seizure represents the largest seizure of cryptocurrency in the history of the Department of Justice.
“Silk Road was the most notorious online criminal marketplace of its day,” said U.S. Attorney Anderson. “The successful prosecution of Silk Road’s founder in 2015 left open a billion-dollar question. Where did the money go? Today’s forfeiture complaint answers this open question at least in part. $1 billion of these criminal proceeds are now in the United States’ possession.”
“Criminal proceeds should not remain in the hands of the thieves. Through CI’s expertise in following the money, we were able to track down the illicit funds,” said IRS-CI Special Agent in Charge Kelly R. Jackson. “The Washington DC Cyber Crimes Unit is uniquely specialized in tracing virtual currency transactions and we will continue to hone our skills to combat illegal activity.”
According to the allegations of the civil forfeiture complaint, from 2011 until October 2013 when it was seized by law enforcement, Silk Road was the most sophisticated and extensive criminal marketplace on the Internet. It served a sprawling black market bazaar where unlawful goods and services were bought and sold regularly by the site’s users. The complaint alleges that while in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs as well as other unlawful goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions. At the time it was taken down in 2013, Silk Road had nearly 13,000 listings for controlled substances and many more listings offering illegal services, such as computer hacking and murder for hire, which generated sales revenue totaling over 9.5 million Bitcoins and commissions from these sales totaling over 600,000 Bitcoins. The complaint further alleges that Silk Road used a so-called “tumbler” to process Bitcoin transactions in a manner designed to frustrate the tracking of individual transactions through the cryptocurrency Blockchain.
The Silk Road creator Ross Ulbricht, following his arrest in San Francisco, was convicted in 2015 by a New York federal jury of seven criminal counts, including conspiracy to distribute narcotics and money laundering.
The complaint further alleges that in 2020 agents of the IRS CI used a third party bitcoin attribution company to analyze bitcoin transactions executed by Silk Road and were able to identify 54 previously undetected bitcoin transactions executed by Silk Road, all of which appear to represent bitcoin, which was the proceeds of unlawful activity, that was stolen from Silk Road in or about 2012 and 2013.
The complaint alleges that these funds were traced to a bitcoin address. Further investigation of that bitcoin address by the United States Attorney’s Office and IRS CI agents revealed that the funds were connected to Individual X. It was further determined that Individual X had hacked the funds from Silk Road. Pursuant to that investigation of the hack, law enforcement seized several thousand Bitcoins on November 3, 2020. On November 4, 2020, the seized Bitcoin had a value of over $1 billion.
The civil complaint merely alleges that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the items are subject to forfeiture. If the United States prevails, the court will order all interests of any potential claimant forfeited.
Assistant U.S. Attorneys Claudia Quiroz, William Frentzen, David Countryman, and Chris Kaltsas of the Northern District of California are prosecuting the forfeiture with the assistance of Carolyn Jusay. The forfeiture action is the result of an investigation by IRS – Criminal Investigation Cyber Crimes Unit with assistance from Chainalysis and Excygent.
U.S. Law Enforcement Assists Brazilian Law Enforcement Takedown of Numerous Digital Piracy Sites and Apps Alleged to Have Caused Millions of Dollars in Losses to U.S. Media CompaniesRead the Press Release
Seizure warrants have been executed against three domain names of commercial websites engaged in the illegal reproduction and distribution of copyrighted works in support of a Brazilian-led takedown of digital piracy sites there, dubbed “Operation 404”.
The coordinated federal law enforcement operation targeted online services that provided illegal copies of copyrighted works, including television shows and movies.
“By seizing these domain names, law enforcement has disrupted the unlawful reproduction and distribution of thousands of pirated television shows and movies, while also cutting off the profits to unlawful actors willing to exploit the hard work of others for their own personal gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Justice Department, together with our international law enforcement partners, will continue to take enforcement actions to identify, seize, and disable these sites wherever they exist around the globe.”
“Illegal streaming is not a victimless crime,” said Derek Benner, Executive Associate Director for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “It harms the content creators of the shows that you know and love, and feeds a criminal enterprise whose profits support organized criminal endeavors. Now more than ever, the partnerships between the creative industry and law enforcement agencies are essential to combat digital piracy and protect consumers. The collaborative nature of this investigation is representative of the ongoing work HSI conducts with its international law enforcement partners to proactively identify, target and investigate individuals who violate U.S. intellectual property rights laws.”
According to the affidavit in support of the seizure warrants, each of the three domains—megatorrentshd.biz, comandotorrentshd.tv, and bludv.tv—offered “free access to copyrighted content to website visitors all over the world, including released and pre-release feature-length movies and television shows.” Megatorrentshd.biz featured approximately 84 navigation pages, with 20 film titles per page and approximately 21 navigation pages with approximately 16 television series titles per page. Comandotorrentshd.tv offered movies and television shows, with approximately 10 titles per page, distributed throughout approximately 124 navigation pages. Bludv.tv displayed approximately 670 navigation pages with approximately 14 titles per page.
Operation 404 was coordinated with Brazil’s Secretariat of Integrated Operations (SEOPI) at Brazil’s Ministry of Justice and Public Security (MoJPS). More information about the operation is available here.
The seized domains are in the custody of the federal government. Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.
The Justice Department thanks its Brazilian partners at SEOPI and the MoJPS, the City of London Police Intellectual Property Crime Unit, and its domestic partners at the U.S. Attorney’s Office for the Eastern District of Virginia, HSI’s Washington D.C. field office and ICE HSI Attaché at the U.S. Embassy in Brasilia, Brazil, for its assistance and collaboration in this matter.
The Justice Department is working to provide intellectual property related training and technical assistance in other countries through the International Computer Hacking and Intellectual Property (ICHIP) program. Learn more about the Criminal Division’s ICHIP Program, jointly administered by the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training and the Computer Crime and Intellectual Property Section, here.
The National Intellectual Property Rights Coordination Center (IPR Center) is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its member agencies to share information, develop initiatives, and coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorneys Mike Stuart and Bill Powell Announce $4.85 Million to Combat Violent Crime in West VirginiaRead the Press Release
Awards Are Part of More than $458 Million in Justice Department Funding Announced by Attorney General Barr
CHARLESTON, W.Va. – U.S. Attorneys Mike Stuart and Bill Powell today announced more than $4.85 million in Department of Justice grants to fight and prevent violent crime in the Southern and Northern Districts of West Virginia. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“I am thankful for this Justice Department funding that will further support law enforcement efforts to reduce violent crime,” said United States Attorney Mike Stuart. “We will continue to work closely with our federal, state and local partners to keep West Virginia communities safe.”
“I am proud to announce funding that will assist law enforcement in keeping our great state safe for all of us. We must continue our good work to ensure that West Virginia continues to be “almost heaven,” said Powell.
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
BJA Project Safe Neighborhoods ($166,713) The efforts of Project Safe Neighborhoods include addressing criminal gangs and the felonious possession and use of firearms. PSN collaborates with local, state, tribal and federal law enforcement agencies, as well as the communities they serve, in a unified approach led by the U.S. Attorney in all 94 districts. Information on the awards is available here.
- Northern District of West Virginia: $88,955
- Southern District of West Virginia: $77,758
BJA Edward Byrne Justice Assistance Grant ($1.575 million) Byrne JAG supports a broad range of initiatives that work to prevent and reduce violent crime. It also provides funds to help crime victims and assist efforts in enforcement, prosecution, adjudication, detention and rehabilitation. Byrne JAG grants local and tribal, and state, District of Columbia and territory awards through separate solicitations.
- City of Wheeling: $40,284
- City of Martinsburg: $10,797
- City of Morgantown: $12,783
- Berkeley County: $10,846
- Marion County: $10,507
- Monongalia County: $15,833
- Randolph County: $10,120
- City of Huntington: $60,862
- City of Charleston: $81,005
- City of Parkersburg: $30,165
- City of Beckley: $23,241
- City of Bluefield: $15,833
- City of South Charleston: $10,216
- Kanawha County: $42,802
- Wood County: $15,300
- Fayette County: $10,652
- Jackson County: $12,056
- Logan County: $15,639
- Mercer County: $11,233
- Nicholas County: $22,031
- Putnam County: $24,500
- Raleigh County: $15,785
- State of West Virginia: $1,072,540
National Instant Criminal Background Check System (NICS) Act Record Improvement Program (NARIP) ($1.73 million) NARIP provides financial and technical assistance to states and tribes to improve the completeness, automation and transmittal of records to state and federal systems used by the NCIS.
- West Virginia Court of Appeals: $1,739,332
National Criminal History Improvement Program ($1.37 million) NCHIP enhances the quality, completeness, and accessibility of criminal history record information to state, territory and federal systems used by the NICS and ensures the nationwide implementation of criminal justice and noncriminal justice background check systems.
- West Virginia Justice and Community Services: $1,374,733
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
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.
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U.S. Attorney McCoy Announces More than $4.5 million to Combat Violent Crime in the District of South CarolinaRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today more than $4.5 million in Department of Justice grants to fight and prevent violent crime in the District of South Carolina. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“Today’s grants will bolster crime-fighting efforts in communities throughout South Carolina and continue this office’s mission to keep the people of South Carolina safe,” said U.S. Attorney McCoy. “Our efforts in combatting and reducing violent crime are only possible because of the great work of our state and local partners. These funds provide assistance to these team members so we can continue our critical work.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations in South Carolina received funding:
- South Carolina Law Enforcement Division: $2,271,078
- City of Spartanburg: $1,000,000
- City of Myrtle Beach: $700,000
- Commission on Prosecution Coordination: $340,000
- Horry County Government: $265,258
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Marc Krickbaum and Police Chief Paul Sikorski Announce Nearly $700,000 to Combat Violent Crime in DavenportRead the Press Release
Awards Are Part of More than $458 Million in Justice Department Funding Announced by Attorney General Barr
DAVENPORT, Iowa – United States Attorney Marc Krickbaum today announced nearly $700,000 in Department of Justice grants to fight and prevent violent crime in Davenport, Iowa. The grant, awarded by the Department’s Office of Justice Programs, is part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
The City of Davenport applied for the Bureau of Justice Assistance Strategies for Policing Innovation grant in May 2020. The Davenport Police Department will utilize the grant funding to create a new crime analysis division within the department. The crime analysis division will enable the department to more effectively and efficiently collect and analyze data to inform crime reduction strategies aimed at reducing violent crime, and specifically gun violence, in Davenport.
“The Davenport Police Department is thrilled to receive the Strategies for Policing Innovation grant through the Department of Justice. This funding will be instrumental to our department in creating a new crime analysis division that will further our ability to bring the perpetrators of violent crime in the community to justice,” Davenport Police Chief Sikorski stated. “We are thankful for our partnership with the U.S. Attorney’s Office as we work together to address gun crime in Davenport.”
In July 2019, the City of Davenport announced that it had been selected to join the National Public Safety Partnership (PSP). PSP is a three-year commitment that serves as a Department of Justice-wide program that enables cities to consult with and receive coordinated training and technical assistance and a variety of resources from the Department of Justice to enhance local violence reduction strategies.
In 2019, the City of Davenport was selected to receive approximately $120,000 in funding from Project Safe Neighborhoods to hire a research partner through the University of Iowa. The research project will integrate evidenced-based research into the department’s strategic planning process, identifying opportunities to enhance gun enforcement efforts, build on intervention programs, and establish sustainable gun crime prevention measures. The research project is expected to begin in January 2021 and last approximately 18 months. Additionally, it has been proposed, but not yet finalized, that the City of Davenport receive approximately $55,000 of the Project Safe Neighborhoods funding for fiscal year 2020 to further gun investigations.
“The U.S. Attorney’s Office is committed to working with the Davenport Police Department and other law enforcement agencies to meet the growing threat of gun crime in the Quad Cities,” said U.S. Attorney Marc Krickbaum. “This grant will help ensure that we are targeting the most violent offenders. When those offenders are caught with a gun in Davenport, they should expect to serve long terms in federal prison.”
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
U.s. Attorneys Bill Powell and Mike Stuart Announce $4.85 Million to Combat Violent Crime in West VirginiaRead the Press Release
WEST VIRGINIA – U.S. Attorneys Bill Powell and Mike Stuart today announced more than $4.85 million in Department of Justice grants to fight and prevent violent crime in the Northern and Southern Districts of West Virginia. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“I am proud to announce funding that will assist law enforcement in keeping our great state safe for all of us. We must continue our good work to ensure that West Virginia continues to be “almost heaven,” said Powell.
“I am thankful for this Justice Department funding that will further support law enforcement efforts to reduce violent crime,” said United States Attorney Mike Stuart. “We will continue to work closely with our federal, state and local partners to keep West Virginia communities safe.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
BJA Project Safe Neighborhoods ($166,713) The efforts of Project Safe Neighborhoods include addressing criminal gangs and the felonious possession and use of firearms. PSN collaborates with local, state, tribal and federal law enforcement agencies, as well as the communities they serve, in a unified approach led by the U.S. Attorney in all 94 districts. Information on the awards is available here.
• Northern District of West Virginia: $88,955
• Southern District of West Virginia: $77,758BJA Edward Byrne Justice Assistance Grant ($1.575 million) Byrne JAG supports a broad range of initiatives that work to prevent and reduce violent crime. It also provides funds to help crime victims and assist efforts in enforcement, prosecution, adjudication, detention and rehabilitation. Byrne JAG grants local and tribal, and state, District of Columbia and territory awards through separate solicitations.
• City of Wheeling: $40,284
• City of Martinsburg: $10,797
• City of Morgantown: $12,783
• Berkeley County: $10,846
• Marion County: $10,507
• Monongalia County: $15,833
• Randolph County: $10,120
• City of Huntington: $60,862
• City of Charleston: $81,005
• City of Parkersburg: $30,165
• City of Beckley: $23,241
• City of Bluefield: $15,833
• City of South Charleston: $10,216
• Kanawha County: $42,802
• Wood County: $15,300
• Fayette County: $10,652
• Jackson County: $12,056
• Logan County: $15,639
• Mercer County: $11,233
• Nicholas County: $22,031
• Putnam County: $24,500
• Raleigh County: $15,785
• State of West Virginia: $1,072,540
National Instant Criminal Background Check System (NICS) Act Record Improvement Program (NARIP) ($1.73 million) NARIP provides financial and technical assistance to states and tribes to improve the completeness, automation and transmittal of records to state and federal systems used by the NCIS.• West Virginia Court of Appeals: $1,739,332
National Criminal History Improvement Program ($1.37 million) NCHIP enhances the quality, completeness, and accessibility of criminal history record information to state, territory and federal systems used by the NICS and ensures the nationwide implementation of criminal justice and noncriminal justice background check systems.
• West Virginia Justice and Community Services: $1,374,733
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here.
Two Stockton Gang Members Indicted for Firearms TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against two Stockton residents and alleged members of the Everybody Killa (EBK) street gang, charging them with conspiring to deal firearms without a license and other charges, U.S. Attorney McGregor W. Scott announced.
Johnnie Earl Ross Jr., 20, is charged with conspiring to deal firearms without a license, dealing firearms without a license, and possession of an unregistered machine gun. Vin Whealen Gaines Jr., 32, is charged with conspiring to deal firearms without a license, dealing firearms without a license, two counts of being a felon in possession of a firearm, and distribution of methamphetamine.
According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Ross and Gaines sold at least 13 firearms to an undercover agent or confidential source on behalf of the EBK street gang in Stockton. Many of the firearms were obtained out of state, in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. One of the firearms was a Glock handgun with a switch that converted it to a fully automatic firearm. Gaines has prior felony convictions, making it illegal for him to possess a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
This case is part of an investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a prosecutor-led, intelligence-driven, multi‑agency task force that leverages the authorities and expertise of federal, state, and local law enforcement.
The charges carry the following penalties: a maximum statutory penalty of five years in prison and a fine of up to $250,000 for conspiracy to deal firearms without a license; a maximum of five years in prison and a fine of up to $250,000 for dealing firearms without a license; a maximum of 10 years in prison and a fine of up to $10,000 for possession of an unregistered machine gun; a maximum of 10 years in prison and a fine of up to $250,000 for being a felon in possession of a firearm; and a maximum statutory penalty of 20 years in prison and a fine of up to $1 million for methamphetamine distribution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.