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4 January 2021
Fire Extinguisher Manufacturer Ordered to Pay $12 Million Penalty for Delay and Misrepresentations in Reporting Product DefectsRead the Press Release
A federal judge today ordered Walter Kidde Portable Equipment Inc. (Kidde) to pay a $12 million civil penalty in connection with allegations that the company failed to timely inform the Consumer Product Safety Commission (CPSC) about problems with fire extinguishers manufactured by the company, the Department of Justice announced.
Kidde, based in Mebane, N.C., agreed to the civil penalty and other terms as part of a consent decree entered by U.S. District Judge Loretta C. Biggs of the Middle District of North Carolina. The consent decree resolves allegations in a complaint filed by the United States against Kidde on December 30.
The complaint concerned Kidde fire extinguishers with plastic handles that were the subject of a recall announced by the CPSC and Kidde in 2017. According to the recall announcement, the fire extinguishers could fail to discharge during a fire emergency, and their nozzles could detach. A subset of the recalled fire extinguishers was the subject of an earlier recall in February 2015. The complaint alleged that Kidde violated the Consumer Product Safety Act by significantly underreporting prior to the first recall the scope and nature of the defect and risk, and the number of products and models affected. According to the complaint, Kidde also failed to immediately report to the CPSC information concerning nozzles detaching from fire extinguishers. The complaint further alleged that Kidde made misrepresentations to the CPSC and misused a registered safety certification mark.
“Companies must immediately report to the CPSC information about unreasonable risks and defects that create substantial hazards,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to take appropriate enforcement actions against companies that jeopardize consumer safety by failing to comply with reporting requirements.”
“I want to convey my thanks to CPSC staff and to our partners at the Department of Justice for finalizing this consent decree without the need for extended litigation,” said CPSC Acting Chairman Robert S. Adler.
The court’s order requires Kidde to maintain a compliance program to ensure that the company complies with the Consumer Product Safety Act and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC as required by law. Kidde is subject to liquidated damages if the company is not in compliance with the consent decree. In agreeing to the consent decree, Kidde did not admit that it violated the law.
The government is represented by Trial Attorneys Claude Scott and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
California Woman Pleads Guilty to Hate Crime for Threatening to Bomb Catholic Prep SchoolRead the Press Release
WASHINGTON –The Justice Department announced today that Sonia Tabizada, age 36, of San Jacinto, California, pleaded guilty in federal court to intentionally obstructing persons in the enjoyment of their free exercise of religious beliefs by threatening to bomb the Georgetown Visitation Preparatory School in Washington, D.C., in violation of Title 18, U.S. Code, Section 247.
In May 2019, school officials announced that Visitation Prep, the oldest Catholic school for girls in the country, would begin publishing same-sex wedding announcements in its alumni magazine to advance its teaching that “we are all children of God ... worthy of respect and love.” According to the plea agreement, Tabizada learned of this announcement and made multiple calls threatening violence in response to the school’s decision. On May 15, 2019, Tabizada left a voice message stating that she was going to burn and bomb the church. Tabizada also stated that she was going to kill school officials and students. Several minutes later, Tabizada left a second voice mail stating that she was going to blow up the school and warned that she would commit “terrorism.”
“The defendant made violent threats against high school students, religious leaders, and school officials based solely on her disagreement with a private school’s application of religious doctrine,” said Eric Drieband, Assistant Attorney General for the Civil Rights Division. “Tolerance and religious freedom are cornerstone values in our society and the Department of Justice will continue to vigorously prosecute violent threats motivated by bias.”
“The defendant’s violent threats were directed at the free exercise of a private school community’s religious beliefs. An attack upon the free exercise of any person or group’s religious beliefs is an attack upon the civil rights of every citizen. Today’s guilty plea is part of my office’s commitment to ensuring that all District citizens can safely exercise their religious beliefs and that all of their civil rights are protected,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia.
“Tabizada used threats of violence to intimate others because of differing religious views,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Every citizen and community has the Constitutional right to exercise their own religious beliefs free from fear and discrimination. Defending civil rights is a top priority for the FBI and we will continue to work to protect the civil rights and freedoms granted to all Americans.”
Tabizada will be sentenced at a hearing scheduled for March 23, 2021. She faces a maximum penalty of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Assistant U.S. Attorney Kendra Briggs of the U.S. Attorney’s Office for the District of Columbia Public Corruption and Civil Rights Section and Civil Rights Division Trial Attorney Michael J. Songer.
California Woman Pleads Guilty to Hate Crime for Threatening to Bomb Catholic Prep SchoolRead the Press Release
The Justice Department announced today that Sonia Tabizada, age 36, of San Jacinto, California, pleaded guilty in federal court to intentionally obstructing persons in the enjoyment of their free exercise of religious beliefs by threatening to bomb the Georgetown Visitation Preparatory School in Washington, D.C., in violation of Title 18, U.S. Code, Section 247.
In May 2019, school officials announced that Visitation Prep, the oldest Catholic school for girls in the country, would begin publishing same-sex wedding announcements in its alumni magazine to advance its teaching that “we are all children of God ... worthy of respect and love.” According to the plea agreement, Tabizada learned of this announcement and made multiple calls threatening violence in response to the school’s decision. On May 15, 2019, Tabizada left a voice message stating that she was going to burn and bomb the church. Tabizada also stated that she was going to kill school officials and students. Several minutes later, Tabizada left a second voice mail stating that she was going to blow up the school and warned that she would commit “terrorism.”
“The defendant made violent threats against high school students, religious leaders, and school officials based solely on her disagreement with a private school’s application of religious doctrine,” said Eric Drieband, Assistant Attorney General for the Civil Rights Division. “Tolerance and religious freedom are cornerstone values in our society and the Department of Justice will continue to vigorously prosecute violent threats motivated by bias.”
“The defendant’s violent threats were directed at the free exercise of a private school community’s religious beliefs. An attack upon the free exercise of any person or group’s religious beliefs is an attack upon the civil rights of every citizen. Today’s guilty plea is part of my office’s commitment to ensuring that all District citizens can safely exercise their religious beliefs and that all of their civil rights are protected,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia.
“Tabizada used threats of violence to intimidate others because of differing religious views,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Every citizen and community has the Constitutional right to exercise their own religious beliefs free from fear and discrimination. Defending civil rights is a top priority for the FBI and we will continue to work to protect the civil rights and freedoms granted to all Americans.”
Tabizada will be sentenced at a hearing scheduled for March 23, 2021. She faces a maximum penalty of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Assistant U.S. Attorney Kendra Briggs of the District of Columbia and Civil Rights Division Trial Attorney Michael J. Songer.
Acting United States Attorney Appointed for the Middle District of PennsylvaniaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce D. Brandler has been appointed Acting United States Attorney for the Middle District of Pennsylvania effective January 2, 2021. Mr. Brandler was appointed upon the resignation of former United States Attorney David J. Freed, which became effective at midnight on January 1, 2021. Mr. Brandler’s appointment is for three hundred days or until a Presidential appointment is made, whichever occurs first.
Mr. Brandler previously served as United States Attorney for the Middle District of Pennsylvania between October 2, 2016, and November 26, 2017. He was first appointed to the position by former Attorney General Loretta E. Lynch on October 2, 2016, and then reappointed by Order of the District Court Judges on January 30, 2017. Mr. Brandler served as First Assistant United States Attorney under former United States Attorney David J. Freed between November 27, 2017, and January 1, 2021.
Mr. Brandler began his legal career as an Assistant District Attorney in Brooklyn, New York, where he served from 1981 until 1985. Upon leaving the District Attorney’s Office, he became the Deputy Chief and then the Chief Investigative Counsel of the New York State Senate Committee on Investigations, Taxation and Government Operations from 1985 to 1986.
Mr. Brandler was appointed an Assistant United States Attorney for the Middle District of Pennsylvania in 1986 and was promoted to the position of Senior Litigation Counsel in 1992. In 2014, he became the Chief of the Criminal Division and served in that capacity until his appointment as United States Attorney in October 2016.
During his tenure as an Assistant United States Attorney, Mr. Brandler specialized in complex white-collar prosecutions, including high-profile public corruption cases. Some of the notable cases Mr. Brandler prosecuted included a tax evasion case against former Luzerne County Judge Arthur Dalessandro; a perjury case against former State Representative Frank Serafini; a bribery/extortion case against former Lackawanna County Commissioners Robert Cordaro and Anthony Munchak; an illegal campaign contribution and fraud case against Renato Mariani, the former President of Empire Sanitary Landfill, Inc.; a disadvantaged business enterprise fraud case against Joseph Nagle, the former President of Schuylkill Products, Inc.; an accounting fraud case against Paul Polishan, the former Chief Financial Officer for the Leslie Fay Companies, Inc.; and an environmental crimes case against Chemical Waste Management, Inc. for illegal dumping activities at a Superfund site in Lackawanna County.
Mr. Brandler graduated from Stony Brook University in 1978 and received a B.A. in Political Science with honors, and was inducted into the Phi Beta Kappa honor society. He received his law degree in 1981 from the Boston University School of Law. He resides in Harrisburg, Pennsylvania.
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4 sentenced for roles in illegally harboring over 100 immigrantsRead the Press Release
McALLEN, Texas – Four Starr County residents have been handed significant sentences following their respective convictions involving the harboring of 104 illegal aliens in harsh conditions, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Barrera, 28, Odilon Oyervides Jr., 22, Isaac Villarreal, 25, and Gustavo Alberto Alaniz Jr., 25, all of Roma, pleaded guilty in late 2019.
Today, U.S. District Judge Randy Crane ordered Oyervides to serve 108 months in prison. On Aug. 7, 2019, U.S. District Judge Marina Marmalejo sentenced Oyervides to 18 months in prison for his conviction of being a felon in possession of a firearm. Today’s sentence will run consecutively for a total 126 months in prison.
In December 2020, Barrera and Alaniz received 120-month sentences, while Villarreal was sentenced to 63 months. All the terms will each be immediately followed by three years of supervised release.
“If it were not for the efforts of the federal, state and local law enforcement agencies who worked on this case these dangerous criminals would have continued harming unsuspecting illegal aliens,” said Rio Grande Valley Sector Chief Patrol Agent Brian Hastings. “Criminal organizations exploit migrants throughout their journey and the abuse does not stop when they arrive in the U.S.”
“These men, who supported alien smuggling and alien harboring, placed their personal profit ahead of public safety and U.S. border security,” said Maria Michel-Manzo, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The resulting lengthy prison sentences should act as a warning to others who are involved in this dangerous trade of the severe consequences of their actions.”
During the sentencing hearings, U.S. District Judge Randy Crane noted their “egregious” conduct and ruled the men had threatening the aliens with stun guns and a firearm, physically mistreated them and failed to provide sufficient food and water. He also held them accountable for maintaining 104 aliens in an open-sided shed without a shower or toilet facilities in the middle of summer and placed the group at risk for serious bodily injury or death. They also had harbored multiple unaccompanied minors.
On Aug. 8, 2019, a man alerted authorities in rural Starr County. He identified himself as an illegal alien who escaped from a nearby ranch because property caretakers were mistreating him. He said others were being held against their will and requested assistance. Law enforcement responded to the location and were eventually able to locate all 104 illegal aliens.
All four men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Rio Grande City Border Patrol’s Field Intelligence Group conducted the investigation with assistance from the Texas Department of Public Safety and the Starr County Sheriff’s Office. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.
2 January 2021
Statement on the deaths of Vinnie and Kelly ZummoRead the Press Release
“I, along with my staff at the U.S. Attorney’s Office, are shocked and saddened to hear of the tragic deaths of Supervisory U.S. Probation Officer Vinnie Zummo and his wife, Kelly. Our thoughts go out to their families, friends, and colleagues. As the investigation continues, please be respectful of those who knew the Zummos, as well as their families, at this difficult and unimaginable time,” said U.S. Attorney Bill Powell, Northern District of West Virginia.
Statement of the Acting Attorney General Jeffrey A. Rosen on the Death of Former Attorney General Richard (Dick) ThornburghRead the Press Release
Acting Attorney General Jeffrey A. Rosen released the following statement:
"Acting Attorney General Jeffrey A. Rosen released the following statement: Acting Attorney General Jeffrey A. Rosen released the following statement on the death of former Attorney General Richard (Dick) Thornburgh: It is with profound sadness that I learned of the passing of former Attorney General and Pennsylvania Governor Richard (Dick) L. Thornburgh. Gov. Thornburgh’s tenure at the Department of Justice started in 1969 in the Western District of Pennsylvania, where he served as the U.S. Attorney. He later led the Department’s Criminal Division before successfully running for Governor of Pennsylvania, where he served two terms as the Keystone state’s chief executive. In 1988, President Ronald Reagan appointed Gov. Thornburgh to serve as the U.S. Attorney General and he was retained as Attorney General by President George H.W. Bush. Gov. Thornburgh was widely respected as a brilliant lawyer, a true patriot and a model leader. He led the efforts on the Americans with Disabilities Act, launched campaign against white collar crime-- including a record number of cases against savings and loans and securities officials, and he actively pursued racial, religious and ethnic hate crimes. His contributions to the Nation, our Department and the legal profession are legendary and the memory of his contributions will live on for generations to come."
31 December 2020
U.S Attorney Brady Statement on the Passing of Dick ThornburghRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, issued the following statement tonight following the passing of former Attorney General of the United States, U.S. Attorney for the Western District of Pennsylvania, and Pennsylvania Governor, Dick Thornburgh.
"We join all Pennsylvanians in mourning the passing of General Thornburgh, a true giant in the law and a former leader of our Office who set an unwavering standard of excellence and professionalism for all United States Attorneys to follow."
"General Thornburgh’s legacy has been one not only of fierce intellect and love of justice, but also, like the Pittsburgher he was, an impact infused with his trademark integrity, grace and humility."
At the Law Enforcement Directors Awards Ceremony held on November 5th, U.S. Attorney Brady unveiled the inaugural Dick Thornburgh Award, which will be presented each year to an outstanding Assistant U. S. Attorney who exhibits the commitment to justice and the highest ethical standards that were embodied by General Thornburgh throughout his career.
Then-United States Attorney General William Barr provided a videotaped statement of congratulations to Assistant U.S. Attorney Brendan Conway, the first winner of the first Dick Thornburgh Award, in which AG Barr recalled his work experiences with Dick Thornburgh, the first Attorney General for whom he worked. AG Barr recalled General Thornburgh as "a lawyer’s lawyer", "an outstanding leader" and "a man of unquestioned integrity and courage."
"Away from the Department, he was a model of personal decency and public service, contributing on issues ranging from international affairs to the rights of the disabled," former AG Barr added.
Dick Thornburgh was born on July 16, 1932 in Pittsburgh, Pennsylvania. He graduated with a bachelor’s degree in engineering from Yale University in 1954 and earned his LL.B degree from the University of Pittsburgh in 1957. Mr. Thornburgh also holds honorary degrees from 31 colleges and universities.
Following law school, Mr. Thornburgh worked in private industry until 1959 when he joined the Pittsburgh law firm then known as Kirkpatrick & Lockhart. In 1967, he was elected as a delegate to the Pennsylvania Constitutional Convention. From 1969 to 1975, Mr. Thornburgh was the U.S. Attorney for the Western District of Pennsylvania and was appointed Assistant Attorney General for the Criminal Division in 1975, serving two years in Washington, D.C. in that role before returning to private practice as a partner at Kirkpatrick & Lockhart. Pennsylvania elected Mr. Thornburgh governor in 1979 and he served two terms. Mr. Thornburgh also taught courses at the Harvard University Kennedy School of Government and directed that school’s Institute of Politics from 1987 to 1988.
Appointed by President Reagan, Dick Thornburgh was sworn in as Attorney General on August 12, 1988. President George H.W. Bush reinstated him as Attorney General in 1989 and he served until 1991. In 1992, the American Legion honored Mr. Thornburgh with its highest award, the "Distinguished Services Medal." He published his autobiography in 2003 entitled, Where the Evidence Leads: The Autobiography of Dick Thornburgh.
Tulsa Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wesley Michael Rollings, age 32, of Tulsa, Oklahoma entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning in October 2018 and continuing until July 2019, in the Eastern District of Oklahoma and elsewhere, Rollings did willfully and knowingly combine, conspire, confederate, and agree with others to commit Drug offenses against the United States by acquiring large amounts of methamphetamine and distributing it for money. On July 14, 2019, Oklahoma State Troopers arrested Rollings and his girlfriend Jamie Denise McDonald in Tulsa in possession of one kilogram of methamphetamine (actual) that they had just purchased from Lannie Jo Carter.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
TriWest Healthcare Alliance Corp. Agrees to Pay $179.7 Million to Resolve Overpayments from the Department of Veterans AffairsRead the Press Release
WASHINGTON – TriWest Healthcare Alliance Corp. has agreed to pay the United States $179,700,000 to resolve claims that it received overpayments from the U.S. Department of Veterans Affairs (VA) in connection with its administration of certain VA health care programs, the Department of Justice announced today.
TriWest, an Arizona corporation headquartered in Phoenix, is in the business of administering government health care programs, including those operated by the VA. TriWest is responsible for administering certain portions of the VA Patient-Centered Community Care Program (PC3) and the VA’s former Veterans Choice Program (Choice). Both programs have enabled veterans to obtain medical care from providers in their communities. As an administrator of these programs, TriWest is paid by the VA to coordinate medical appointments and make payments to health care providers.
The settlement resolves allegations that TriWest retained overpayments from the VA in connection with its administration of the PC3 and Choice Programs. The alleged overpayments included payments by the VA to TriWest twice for the same services as well as payments for services for which TriWest received full or partial reimbursement from certain health care providers.
“The VA’s PC3 and Choice Programs have provided significant benefits to our nation’s veterans,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The department will continue to support the VA and its Office of Inspector General in ensuring that the VA’s programs are administered properly and that taxpayer funds are used as intended.”
“The VA provides invaluable assistance to those who have sacrificed on our behalf,” said U.S. Attorney Michael Bailey for the District of Arizona. “It is vital that those who administer programs for the VA be held accountable to do so with the utmost care and integrity.”
“The VA Office of Inspector General works tirelessly to promote the economy, efficiency, and integrity of the VA’s programs and operations,” said VA Inspector General Michael J. Missal. “This settlement is integral to ensuring that the VA’s funds are spent for the benefit of our nation’s veterans. I appreciate the teamwork and dedication that led to this significant recovery.”
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Arizona, the Department of Justice Civil Division’s Commercial Litigation Branch, and the VA and its Office of Inspector General. The claims resolved by the settlement agreement are allegations only, and there has been no determination of liability.
Third Defendant Pleads Guilty for his Role in Nigerian Romance ScamRead the Press Release
A Norman man pleaded guilty today in U.S. District Court for his role as a money launderer in a Nigerian romance scam that defrauded multiple victims, including elder Americans, of millions, announced U.S. Attorney Trent Shores.
Tobiloba Kehinde, 28, pleaded guilty to conspiracy to commit money laundering before U.S. District Court Judge Gregory K. Frizzell. Kehinde’s sentencing hearing is set for March 29, 2021.
“In the last year, Americans were defrauded out of more than $200 million due to romance scams. Whether these con artists are romancing vulnerable elder victims online or facilitating money laundering to hide the illicit proceeds, this U.S. Attorney’s Office will never stop fighting to get justice for the victims,” said U.S. Attorney Trent Shores. “Today, Tobiloba Kehinde, becomes the third conspirator brought to justice for his role in a Nigerian romance scheme.”
In his plea agreement, Kehinde admitted that he knew the money involved in the financial transactions involved the proceeds from unlawful activity. He further stated that he knew the financial transactions were designed, in whole or in part, to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of the unlawful activity.
From 2017 through and November 2019, Kehinde knowingly concealed the proceeds of a romance scam operation by moving money between and among multiple bank accounts that were opened under various aliases using fake passports and other fraudulent identification documents to obscure the source of the funds and the identities of the co-conspirators. Court documents state that he and his co-conspirators took further steps to conceal the source of the funds, took a commission, and directed the remainder of the funds back to the online romance scammers in Nigeria, including in the form of vehicles and vehicle parts.
According to court documents, Kehinde coordinated with overseas co-conspirators who had assumed false identities on online dating websites and social media platforms with the intent to defraud victims. Kehinde opened several accounts using fraudulent identities, including “Jeff Atto” and “Ari Lawson,” then provided the account and routing numbers to the overseas co-conspirators. The overseas co-conspirators told victims they were U.S. residents working abroad. In fact, the investigation revealed that these overseas co-conspirators were located in Nigeria. As these online “relationships” continued, the overseas co-conspirators’ would request increasingly larger sums of money, claiming that the funds were needed to complete business projects or to return to the United States. The victims were directed by the overseas co-conspirators to send funds to Kehinde and others’ bank accounts, assuring the victims that he would allocate the money as needed.
Kehinde and his co-defendants were charged in November 2019. Afeez Olajide Adebara, 35, and John Oluwaseun Ogundele, 31, have also pleaded guilty.
The remaining defendants are Joshua Naandom Ditep, 26, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Paul Usoro, 26, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Chibuzo Godwin Obiefuna, Jr., 27, U.S. citizen residing in Long Beach, California; Jamiu Ibukun Adedeji, 24, Nigerian citizen, residing in Norman; First and last name unknown #1, who maintained an address in Brooklyn, New York; First and last name unknown #2, who maintained an address in Dallas, Texas; and First and last name unknown #3, who maintained an address in Dallas, Texas. Ditep, Usoro, Obiefuna, and Adedeji await trial while the three additional co-defendants remain fugitives. These remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Oklahoma City Field Office conducted the investigation. Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Nassar of the Northern District of Oklahoma are prosecuting the case.
Summerset Man Sentenced to One Year for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on December 17, 2020, by U.S. District Court Judge Jeffrey L. Viken.
Richard Nowell, age 59, was sentenced to one year, plus one day, in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately April 2019 to late August 2019, Nowell brought methamphetamine to South Dakota while working as an over the road truck driver. Nowell then dispersed the methamphetamine to others for use or additional distribution.
This case was investigated by the Drug Enforcement Agency and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Nowell was immediately returned to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on December 28, 2020, by U.S. District Judge Karen E. Schreier.
Charles Little Bear, Jr., age 54, was sentenced to six months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Bear was indicted by a federal grand jury on July 20, 2020. He pled guilty on November 9, 2020.
The conviction stemmed from Little Bear failing to register as a sex offender as required by federal law between July 19, 2019, and April 9, 2020. Little Bear had previously been convicted of a sex offense in federal court, which requires him to register for 25 years after his release from custody.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Little Bear was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Indicted on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Bud Theus, II, age 68, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on December 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 8, 2020, Theus, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and then knowing he had been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, and then knowing he was an unlawful user of a controlled substance, knowingly did possess a revolver, which had been shipped and transported in interstate commerce and foreign commerce, in Corson County, South Dakota.
The charge is merely an accusation and Theus is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent 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/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Theus was released on bond pending trial. A trial date has not been set.
Rapid City Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on December 10, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Michael Hanson, age 63, was sentenced to five years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, $3,000 in restitution, and a $5,000 special assessment to the Victims of Trafficking Fund. Hanson will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stems from Hanson receiving computer images of child pornography, as well as obscene matter, at Rapid City between September 2010 and June 2019.
The investigation was conducted by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Hanson was immediately remanded to the custody of the U.S. Marshals Service.
Porcupine Man Indicted on Carjacking and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Carjacking, Use and Brandishing of a Firearm During the Commission of a Crime of Violence, and Possession of a Stolen Firearm.
Curtis Horse, age 29, was indicted on December 8, 2020. He appeared before U.S. Magistrate Judge Daneta Wollmann on December 16, 2020, and pleaded not guilty to the Indictment.
The penalty upon conviction is 15 years in federal prison and/or a $250,000 fine, followed by three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Horse stealing a motor vehicle and firearm at gunpoint at Rapid City, South Dakota, in November 2020. The charges are merely an accusation and Horse is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent 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/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rapid City Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Horse was detained pending trial. A trial has been set for February 23, 2021.
Northern District of Iowa Prosecutor Recognized for Lifetime of Exceptional Service to Department of JusticeRead the Press Release
Senior Litigation Counsel Richard L. Murphy of the U.S. Attorney’s Office in the Northern District of Iowa was recognized by the Executive Office for U.S. Attorneys (EOUSA) with the Lifetime of Exceptional Service Director’s Award. United States Attorney Peter E. Deegan, Jr. presented Mr. Murphy with the award on December 2, 2020.
Mr. Murphy was recognized for his more than 35 years of service to the Northern District of Iowa and the Department of Justice. Mr. Murphy first worked in the United States Attorney’s Office as an intern in 1981. After clerking for a federal judge, Mr. Murphy joined the office full-time. Over the next decades, he prosecuted many of the most important and difficult cases in the district:
- As an organized crime and narcotics prosecutor, he launched a vigorous initiative that transformed the “war on drugs” in the district into an aggressive and successful offensive. In the fall of 1988, a two-year investigation led by Mr. Murphy resulted in 65 arrests, the seizure of cocaine valued at $1.5 million, marijuana valued at $800,000, and over $300,000 in cash and other assets. For his efforts Mr. Murphy was awarded the Director’s Award for his outstanding contributions to narcotics enforcement in 1990.
- In 1996, Mr. Murphy was awarded the Director’s Award for his outstanding accomplishments as lead prosecutor in the prosecution and conviction of 11 members of the Sons of Silence (SOS) Outlaw Motorcycle Club. The prosecution incapacitated both SOS chapters in Iowa and seriously disrupted racketeering activities of the club nationwide. The national vice-president and three SOS chapter presidents were convicted as part of the case. During the investigation, seven current or former SOS members broke the “code of silence” and agreed to cooperate fully.
- In 2014, Mr. Murphy received the Director’s Award for supervising the (then) largest criminal worksite enforcement operation in United States history. The investigation resulted in the conviction of more than 300 illegal workers, several company officials, and a conviction by jury of a corporate CEO for an array of financial crimes including a $26 million bank fraud as well as significant immigration related fraud.
- In 2016, Mr. Murphy was honored with the Anti-Defamation League’s Shield Award for his work as lead prosecutor of Gervais Ngombwa. Ngombwa was convicted by a jury of naturalization fraud as a result of having lied to gain entry to the United States as a refugee following the 1994 Rwandan genocide. Evidence presented in court showed Ngombwa had actively participated in the genocide. Ngombwa was sentenced to 15 years’ imprisonment and will be removed to Rwanda after the completion of his prison term.
In addition to his decades prosecuting crimes, Mr. Murphy contributed to the promotion of justice in Iowa and nationally by serving in numerous leadership positions and being hand-picked for many additional duties for the Department of Justice:
- Mr. Murphy has served in virtually every leadership position in the United States Attorney’s Office. Mr. Murphy served (sometimes concurrently) in each of the following management positions: First Assistant United States Attorney, Criminal Chief, Senior Litigation Counsel, and Counsel to the United States Attorney.
- Mr. Murphy’s leadership was also instrumental in responding effectively to the massive flood in Cedar Rapids in June 2008 that displaced the main office for five months. Mr. Murphy’s outstanding work during this time-period was recognized with a 2009 Director’s Award for Superior Performance in a Managerial Role. Following the flood, Mr. Murphy spent hundreds of hours serving as the office’s lead representative as a new federal courthouse was designed, constructed, and occupied by the office.
- Mr. Murphy served as Special DOJ Counsel to the United States Sentencing Commission (USSC) from September 1990 through April 1991.
- Mr. Murphy served as a member and Chair of the DOJ’s Criminal Chiefs Working Group. With other committee members, Mr. Murphy assisted in formulating recommendations to the Attorney General concerning a wide variety of issues affecting criminal prosecutors.
- In 2018, as the office’s Antiterrorism Coordinator and National Security prosecutor, Mr. Murphy collaborated with state, federal, and local law enforcement; mental health providers, prosecutors, school administrators and resource officers, and juvenile court services to develop a School Threats Prevention Resource Guide. The guide was widely distributed to those same stakeholders across the district and elsewhere. This effort is recognized nationally as a “Best Practices” at https://usanet.usa.doj.gov/staffs/AGAC/Pages/BestPrac.aspx.
After nearly 40 years of service to the Northern District of Iowa, Mr. Murphy will retire at the end of 2020.
“The impact Mr. Murphy has had on the United States Attorney’s Office and the federal court system in the Northern District of Iowa cannot be overstated,” said United States Attorney Deegan. “For more than 35 years, he has served with an unyielding commitment to justice and the rule of law. By consistently providing the public with the very highest quality legal representation, Mr. Murphy has served as an outstanding example for generations of government attorneys. He is truly irreplaceable and we will miss him terribly, but we all wish him the best in his well-deserved retirement.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Follow us on Twitter @USAO_NDIA.
- As an organized crime and narcotics prosecutor, he launched a vigorous initiative that transformed the “war on drugs” in the district into an aggressive and successful offensive. In the fall of 1988, a two-year investigation led by Mr. Murphy resulted in 65 arrests, the seizure of cocaine valued at $1.5 million, marijuana valued at $800,000, and over $300,000 in cash and other assets. For his efforts Mr. Murphy was awarded the Director’s Award for his outstanding contributions to narcotics enforcement in 1990.
North Liberty Man Sentenced to Prison for Heroin DistributionRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Eric Allen Rhine, age 55, of North Liberty, to 120 months in prison for Conspiracy to Distribute Heroin announced United States Attorney Marc Krickbaum. Following his prison term, Rhine was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
This investigation began in 2018 involving narcotics trafficking between Johnson County and Chicago, Illinois. Law enforcement determined Rhine and his co-conspirator, Robert Rankins, Jr., obtained heroin in Chicago and sold it in Johnson County. Rhine admitted the conspiracy was responsible for selling more than 1,000 grams of heroin and he was supplying heroin to numerous individuals in the Iowa City/Coralville/North Liberty area.
This matter was investigated by the Johnson County Drug Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Mount Pleasant Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Robert Dean Stagers, age 32, of Mount Pleasant, to 140 months in prison for Conspiracy to Distribute Methamphetamine and Possession of Firearms in Furtherance of Drug Trafficking announced United States Attorney Marc Krickbaum. Stagers was ordered to serve five years of supervised release to follow his prison term and to pay $200 to the Crime Victims’ Fund.
The investigation began in March of 2018 when law enforcement discovered Stagers had become a supplier of methamphetamine in the Southeast Iowa area. Stagers knowingly distributed methamphetamine to his purchasers who then distributed to others. In 2019, a search warrant was executed on Stagers’ residence in Mount Pleasant. Officers found a safe that contained 132.01 grams of methamphetamine and seven loaded guns. A vehicle associated with Stagers was also searched and officers found four more firearms. Stagers admitted he knowingly carried and used these firearms in furtherance of drug trafficking.
This matter was investigated by the Henry County Sheriff’s Office, Mount Pleasant Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minnesota Man Sentenced for Attempted Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rushford Village, Minnesota, man convicted of Attempted Possession of Child Pornography was sentenced on December 18, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Josef Pettit, age 24, was sentenced to 18 months in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Pettit will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Pettit was arrested and federally indicted following multiple text messages he exchanged with a person Pettit believed to be a 15-year-old girl, but who was in fact an undercover agent. Pettit requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor. When Pettit went to the pre-determined location, he was met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Pettit was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint PracticesRead the Press Release
The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana, to address and prevent the discriminatory secluding and restraining of students with disabilities.
The agreement follows an investigation conducted under Title II of the Americans with Disabilities Act (ADA) into a complaint that the school district inappropriately secluded and restrained students with emotional and behavioral disabilities in the district’s self-contained classrooms. The department’s investigation confirmed that students as young as five years old were secluded and restrained improperly and repeatedly, resulting in days, and sometimes weeks, of lost instructional time. The department also investigated allegations that the school district regularly and inappropriately sent these students home early from school, placed them on abbreviated school days, and assigned them to homebound instruction.
“Students with disabilities, like all students, belong in classrooms where they can learn — not locked away or otherwise segregated from their peers. When school districts improperly seclude or restrain students with disabilities, they inflict grievous harm on some of America’s most vulnerable children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Students with emotional and behavioral disabilities need additional supports in the classroom, not practices that keep them out or subject them to isolation and trauma. We look forward to working with the North Gibson School Corporation as it implements this settlement agreement to provide students with disabilities equal access to education — a right guaranteed to them by the Americans with Disabilities Act.”
“We are better as a community when our schools serve all of our students,” said Acting U.S. Attorney John Childress for the Southern District of Indiana. “Our schools should be places where all children have the best chance to learn and grow and this agreement is a significant step toward achieving that goal.”
The school district cooperated fully throughout the investigation, voluntarily suspended its use of seclusion rooms before the investigation was completed and agreed to take the steps outlined in today’s settlement agreement.
Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things: change its policies to prohibit use of seclusion rooms; report all instances of restraint and review whether they were justified; take steps to avoid placing students with emotional and behavioral disabilities on an abbreviated school day or homebound instruction and document those steps; create and implement a procedure for handling complaints of disability discrimination; provide appropriate training and resources to help schools implement the agreement; and appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
This year marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools is a priority of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint PracticesRead the Press Release
Evansville – The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana to address and prevent the discriminatory secluding and restraining of students with disabilities.
The agreement follows an investigation conducted under Title II of the Americans with Disabilities Act (ADA) into a complaint that the school district inappropriately secluded and restrained students with emotional and behavioral disabilities in the district’s self-contained classrooms. The department’s investigation confirmed that students as young as five years old were secluded and restrained improperly and repeatedly, resulting in days, and sometimes weeks, of lost instructional time. The department also investigated allegations that the school district regularly and inappropriately sent these students home early from school, placed them on abbreviated school days, and assigned them to homebound instruction.
“Students with disabilities, like all students, belong in classrooms where they can learn – not locked away or otherwise segregated from their peers. When school districts improperly seclude or restrain students with disabilities, they inflict grievous harm on some of America’s most vulnerable children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Students with emotional and behavioral disabilities need additional supports in the classroom, not practices that keep them out or subject them to isolation and trauma. We look forward to working with the North Gibson School Corporation as it implements this settlement agreement to provide students with disabilities equal access to education — a right guaranteed them by the Americans with Disabilities Act.”
“We are better as a community when our schools serve all of our students” said Acting U.S. Attorney John Childress for the Southern District of Indiana. “Our schools should be places where all children have the best chance to learn and grow and this agreement is a significant step toward achieving that goal.”
The school district cooperated fully throughout the investigation, voluntarily suspended its use of seclusion rooms before the investigation was completed and agreed to take the steps outlined in today’s settlement agreement.
Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things: change its policies to prohibit use of seclusion rooms; report all instances of restraint and review whether they were justified; take steps to avoid placing students with emotional and behavioral disabilities on an abbreviated school day or homebound instruction and document those steps; create and implement a procedure for handling complaints of disability discrimination; provide appropriate training and resources to help schools implement the agreement; and appoint an Intervention Coordinator to ensure the district’s compliance with the agreement and Title II of the ADA.
This year marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools is a priority of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Download NGSC Executed Agreement.pdfInformational: 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 Dec.29 was:
Sean Andrew Shaw, 40, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Shaw faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shaw was released pending further proceedings. The Drug Enforcement Administration 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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Davenport Man Sentenced to Prison for Possession with Intent to Distribute Marijuana and Possession of a FirearmRead the Press Release
DAVENPORT, Iowa — On December 31, 2020, United States District Court Chief Judge John A. Jarvey sentenced Curtis Lee Smith, age 26, of Davenport, to 65 months in prison for Possession with Intent to Distribute Marijuana and Possession of a Firearm in Furtherance of a Drug Trafficking Crime announced United States Attorney Marc Krickbaum. Following his prison term, Smith will serve three years of supervised release as well as pay $100 to the Crime Victims’ Fund.
On January 25, 2019, officers were dispatched to the Quad City Inn in Davenport in response to a 911 call describing a person being held against her will in a room. When officers arrived at the room, two people were found inside— a woman and Smith. Officers obtained a search warrant for the motel room. Upon execution of the warrant, officers discovered 128 grams of marijuana, a .380 caliber pistol, a .45 caliber pistol, and another .380 caliber pistol. Smith admitted to placing the marijuana and firearms in the ceiling of the room near a vent. Additionally, officers found a digital scale, drug packaging materials, and $2,060 United States currency. Smith admitted to possessing the marijuana with the intent to distribute it and using the firearms in furtherance of that drug distribution.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Charged with Illegal Possession of FirearmRead the Press Release
BOSTON – A Fitchburg man was charged today with being a felon in possession of a 10 mm Glock pistol.
Joel Polanco, 32, was charged by criminal complaint with one count of being a felon in possession of a firearm. Polanco is currently in state custody and will make an initial appearance in federal court at a later date.
On Oct. 24, 2020, Polanco was arrested after police responded to the area of Snow and Cherry Streets in Fitchburg following a report of a person suffering a gunshot wound to the leg. A witness reported seeing someone fitting Polanco’s description shoot the victim. In addition, surveillance videos showed a person fitting Polanco’s description carrying what appeared to be the black fanny-pack and holding an item in his hand that appeared to be a gun. According to the charging documents, Polanco shot the victim using a 10 mm Glock pistol that was later recovered from a black fanny-pack in the area of Snow Street.
Polanco is prohibited from possessing a firearm due to a March 2011 conviction in Worcester federal court of being a felon in possession of ammunition and distribution of cocaine base.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Fitchburg Police Chief Ernst Martineau made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burlington Woman Sentenced to Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Pamela Sue Hester, age 59, of Burlington, to 130 months in prison for Possession with Intent to Distribute Methamphetamine announced United States Attorney Marc Krickbaum. Following her prison term, Hester was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
The investigation began in 2018 when law enforcement learned of Hester being a distributer of methamphetamine in the Burlington area. In February 2019, Hester was arrested on a warrant and officers located 58 grams of methamphetamine and $764.00 that was comingled with proceeds for drug trafficking in her possession. At a search warrant of Hester’s residence that same day, law enforcement located 217 grams of methamphetamine, $2,000 cash, drug packaging material, and a digital scale. Hester admitted to knowingly possessing the materials and drugs with the intent to distribute and deliver it to others.
This matter was investigated by the Southeast Iowa Narcotics Taskforce. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bristol Man Charged with Federal Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging XAVIER CRUZ, 26, of Bristol with firearm offenses.
The indictment was returned on December 21. Cruz appeared yesterday via videoconference before U.S. Magistrate Judge Robert A. Richardson, entered a plea of not guilty to the charges, and is released on a $100,000 bond.
It is alleged that, on September 5, 2020, law enforcement found a backpack containing a loaded Smith and Wesson semiautomatic handgun in a parking lot in a residential area of Bristol. The handgun’s serial number had been removed. Investigators subsequently determined that Cruz had possessed the firearm before discarding it.
Prior to September 2020, Cruz sustained felony convictions in state court for controlled substance offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Cruz with one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tara Levens and Margaret Donovan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Appellate Chief appointed United States Attorney for Eastern District of MissouriRead the Press Release
Sayler A. Fleming was appointed by Attorney General William P. Barr on December 11, 2020, to replace U.S. Attorney Jeff Jensen. She assumed office on December 31, 2020.
“Having spent the bulk of my legal career as an Assistant United States Attorney, I am deeply humbled and honored to serve the office and federal judicial district in this capacity,” said Fleming. “I have immense respect for my colleagues, who work tirelessly to uphold the rule of law and fulfill the mission of the Department of Justice. I look forward to continuing this important and necessary work with our federal, state, and local partners.”
Fleming, as United States Attorney, is the top-ranking federal law enforcement official in the Eastern District of Missouri. The district serves 49 counties within three divisions – Northern, Eastern and Southern. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
In her time with the office, Fleming gained extensive legal experience prosecuting and supervising violent crime cases. Fleming most recently served as the office’s Appellate Chief.
Prior to joining the U.S. Attorney’s Office, Fleming was an associate at Bryan Cave Leighton Paisner. Fleming, who grew up in Charleston, Missouri, also clerked for the Honorable Stephen N. Limbaugh, Jr. Fleming received her Bachelor’s of Accountancy from Mississippi State University and her law degree from Vanderbilt University School of Law.
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Albuquerque woman charged with armed robbery and mail theftRead the Press Release
ALBUQUERQUE, N.M. – Cecilia Ann Gillespie, 31, of Albuquerque, was charged in federal court on Dec. 30 with robbery, brandishing a firearm during a crime of violence, mail theft and conspiracy to defraud the United States. A detention hearing is scheduled for Jan. 4.
On Oct. 13, a United States Postal Service (USPS) letter carrier was robbed at gunpoint at an apartment complex in Albuquerque. The suspects took mail keys and several pieces of U.S. Mail. On Nov. 23, a USPS letter carrier was robbed at gunpoint of two trays of mail in Albuquerque. The suspects allegedly fled both times in a white Dodge Avenger. A criminal complaint alleges that the vehicle used in the crimes belongs to Gillespie and that Gillespie was the driver in both armed robberies.
According to the complaint, on Dec. 11, U.S. Postal Inspectors located the white Dodge Avenger and allegedly observed Gillespie getting into the car. On Dec. 11, Postal Inspectors, Homeland Security Investigations and the New Mexico State Police conducted a search of the residence where the vehicle had been located. Inspectors found stolen mail, including stolen checks, both opened and unopened. Gillespie was one of the occupants on the lease.
If convicted, Gillespie faces a minimum of seven and up to 25 years in prison. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated this case with assistance from Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Albuquerque man charged with attempted bank robberyRead the Press Release
ALBUQUERQUE, N.M. – Daniel Hansen, 21, of Albuquerque, was charged in federal court today with attempted bank robbery. A detention hearing is scheduled for Jan. 5.
According to a criminal complaint, on Dec. 16, Hansen allegedly entered a bank and was informed by a teller that transactions must be conducted at the drive-through window. Hansen then allegedly approached the drive-through window on foot, told a teller that he would like to make a withdrawal, and was provided a withdrawal slip and a pen. Hansen allegedly returned the withdrawal slip with a demand for money. Understanding the bank was being robbed, the tellers backed away from the teller line and activated the security alarm. Hansen then allegedly returned to the vehicle in which he had arrived and fled.
Hansen was later identified through his involvement in an unrelated incident.
If convicted, Hansen faces up to 20 years in prison. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The FBI and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
30 December 2020
U.S. Attorney's Office and FBI Announce Federal Charges and Arrests in December 2020 Human Trafficking TakedownRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Agent in Charge Aaron C. Rouse of the FBI announced today a federal human trafficking takedown in the District of Nevada. With this takedown, the District of Nevada closes out 2020 having filed more human trafficking cases than in any previous year.
Human trafficking — a crime that involves the use of force, fraud, or coercion to lure victims and force them into labor or commercial sexual exploitation — is a top priority area for the U.S. Attorney’s Office, the FBI, and their law enforcement and community partners. Every year, millions of women, men, and children are trafficked worldwide, including in Nevada.
“Combating sex trafficking is one of our prosecutors’ top enforcement priorities, and our office now has the pieces in place to stay at the forefront of this fight,” said U.S. Attorney Trutanich. “Heading into 2021, we remain committed to increasing investigations and prosecutions of traffickers, taking them off the streets and away from victims.”
“The FBI will always be vigilant in pursuing those who choose to prey on our most vulnerable, especially our children,” said Special Agent in Charge Rouse. “I would like to thank our law enforcement partners and their task force officers as part of the FBI's Child Exploitation Task Force for their commitment to making these arrests.”
This month, the U.S. Attorney’s Office brought five prosecutions related to human trafficking. Two of the five defendants were charged with federal sex trafficking offenses:
- On December 15, 2020, Kenton King, 25, of Las Vegas, was indicted on one count of coercion and enticement, one count of sexual exploitation of a child, one count of attempt sex trafficking, and one count of possession of child pornography. According to allegations in the indictment, King attempted to coerce and entice an underage victim to engage in numerous sexual offenses, including prostitution.
The case was investigated by the Henderson Police Department and the FBI. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
- On December 3, 2020, Jeffrey Lofstead, 63, of Kings Beach, California, was indicted on one count of attempted sex trafficking of children. According to allegations in the indictment, on or about October 7, 2020, Lofstead attempted to recruit and solicit a child, who had not yet attained the age of 18 years, to engage in a commercial sex act.
The case was investigated by the FBI’s Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of federal, local, and state law enforcement. Assistant U.S. Attorney Peter Walkingshaw is prosecuting the case.
In addition to the sex trafficking cases above, the December 2020 takedown included three other individuals charged with federal firearm offenses who either had been previously convicted of pandering offenses or whose alleged offenses related to vice operations:
- On December 9, 2020, Tamarion Keandre Williams, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 21, 2020, Williams illegally possessed a .40 caliber semi-automatic pistol. At the time of the alleged offense, Williams was on probation due to convictions for pandering and battery with substantial bodily harm in Clark County.
The case was investigated by the FBI, the Nevada Division of Probation, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
- On December 29, 2020, Darryl Henderson, of Las Vegas, made his initial appearance in federal court on a felon in possession of a firearm charge. As alleged in the criminal complaint, beginning on August 12, 2020, and continuing until on or about September 8, Henderson illegally possessed a .22 caliber semi-automatic pistol. Henderson is prohibited from possessing firearms due to prior felony convictions in Clark County. He was also pending sentencing in Nevada state court after pleading guilty to attempt pandering, which is a felony.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
- On December 21, 2020, Adrian Anguiano, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 27, 2020, Anguiano illegally possessed a 9mm semi-automatic pistol. Two weeks earlier, on November 13, police officers had observed a female enter Anguiano’s truck in an area known for prostitution. When officers attempted to contact the vehicle’s occupants, the driver fled, ramming a police vehicle and nearly hitting an officer in the process. The female was thrown from the vehicle, fracturing her skull and rendering her unconscious. Subsequent investigation identified Anguiano as the vehicle’s driver. On November 27, Anguiano was arrested by local law enforcement as he left his residence. A protective sweep of the residence revealed a 9mm semi-automatic pistol in plain view in Anguiano’s bedroom. He subsequently admitted to being in possession of the firearm.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
Other federal sex trafficking charges that federal prosecutors filed in the District of Nevada in 2020 include:
- On October 6, 2020, Denzel Renyal Michael Loyd, 35, of Las Vegas, was charged in a 10-count indictment with four counts of coercion and enticement; three counts of sexual exploitation of a child; one count of transfer of obscene material to minor; one count of sex trafficking of children; and one count of possession of child pornography. As alleged, from February 5 to March 9, 2020, Loyd coerced and enticed four underage victims via Facebook to engage in prostitution for him. The indictment further alleges that Loyd sent obscene material to a victim, and that he possessed child pornography on his cell phone.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
- On June 3, 2020, Mario Alston, 42, of Las Vegas, was charged with one count of attempted sex trafficking of children.
The case was also investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
A complaint and/or indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In addition to prosecutions, the U.S. Attorney’s Office is committed to prevention and spreading awareness of human trafficking. This year, the U.S. Attorney’s Office co-hosted training events for attorneys, victim services providers, and the community. The Department of Justice provided non-profit service providers with a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to survivors of human trafficking.
If you or someone you know is a victim of human trafficking, contact the Homeland Security Investigations’ Blue Campaign at 1-866-347-2423 or get help from the National Human Trafficking Hotline at 1-888-373-7888.
Report missing children or child pornography to the National Center for Missing and Exploited Children (NCMEC) at 1-800-THE-LOST (843-5678).
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Ticketmaster Pays $10 Million Criminal Fine for Intrusions into Competitor’s Computer SystemsRead the Press Release
Earlier today in federal court in Brooklyn, Ticketmaster L.L.C. (Ticketmaster or the Company) agreed to pay a $10 million fine to resolve charges that it repeatedly accessed without authorization the computer systems of a competitor. The fine is part of a deferred prosecution agreement that Ticketmaster has entered with the United States Attorney’s Office for the Eastern District of New York to resolve a five-count criminal information filed today charging computer intrusion and fraud offenses. Previously, on October 18, 2019, Zeeshan Zaidi, the former head of Ticketmaster’s Artist Services division, pled guilty in a related case to conspiring to commit computer intrusions and wire fraud based on his participation in the same scheme. Both cases are assigned to U.S. District Judge Margo K. Brodie.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation’s New York Field Office, made the announcement.
“Ticketmaster employees repeatedly – and illegally – accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect business intelligence,” stated Acting U.S. Attorney DuCharme. “Further, Ticketmaster’s employees brazenly held a division-wide ‘summit’ at which the stolen passwords were used to access the victim company’s computers, as if that were an appropriate business tactic. Today’s resolution demonstrates that any company that obtains a competitor’s confidential information for commercial advantage, without authority or permission, should expect to be held accountable in federal court.”
"When employees walk out of one company and into another, it's illegal for them to take proprietary information with them. Ticketmaster used stolen information to gain an advantage over its competition, and then promoted the employees who broke the law. This investigation is a perfect example of why these laws exist - to protect consumers from being cheated in what should be a fair market place,” stated FBI Assistant Director-in-Charge Sweeney.
The Scheme to “Choke Off” the Victim Company
According to Ticketmaster’s admissions and publicly filed court documents, Ticketmaster, a wholly owned subsidiary of Live Nation Entertainment, Inc. (Live Nation), was primarily engaged in the business of selling and distributing tickets to events and concerts. The victim company offered artists the ability to sell presale tickets – sold in advance of general ticket sales – on an online ticketing platform. It also offered artists an Artist Toolbox (the Toolbox), which was a password-protected app that provided real-time data about tickets sold through the victim company.
Instrumental to the criminal scheme was Coconspirator-1, a former senior employee of the victim company, who worked in the company’s Brooklyn, New York offices from approximately May 2010 to July 2012. In approximately July 2012, Coconspirator-1 signed a separation agreement with the victim company, in which he agreed to maintain the confidentiality of that company’s confidential information. He then joined Live Nation in approximately August 2013.
In November 2013, while employed by Live Nation, Coconspirator-1 shared with Zaidi and another Ticketmaster employee the URLs for draft ticketing web pages that the victim company had built for an artist, but had not disseminated to the public. In response to a Ticketmaster executive explaining that the goal was to “choke off [victim company]” and “steal back one of [victim company]’s signature clients,” Coconspirator-1 offered that Ticketmaster could “cut [victim company] off at the knees” if they could win back presale ticketing business for a second major artist that was a client of the victim company.
Ticketmaster’s Intrusions Into the Victim Company’s Password-Protected Artist Toolboxes
In January 2014, Coconspirator-1 emailed Zaidi and a second Ticketmaster executive multiple sets of usernames and passwords for Toolboxes. Coconspirator-1 encouraged the executives to “screen-grab the hell out of the system,” but also warned, “I must stress that as this is access to a live [victim company] tool I would be careful in what you click on as it would be best not [to] giveaway that we are snooping around.” (Emphasis in original.) The information from the Toolboxes was then used to prepare a presentation for other senior executives that was intended to “benchmark” Ticketmaster’s offerings against those of the victim company.
In early May 2014, a senior executive of Live Nation (Corporate Officer-1) asked Zaidi and others how Ticketmaster’s presale online offering compared with the Toolbox. Coconspirator-1 was then asked to “do a screenshare/demo” at an upcoming “Artist Services Summit.” Coconspirator-1 agreed to “pull together a list of the log-ins and URL’s that I still have access to for this so I can give the team as much insight as possible.” At least 14 Live Nation and Ticketmaster employees attended the Artist Services Summit, in San Francisco. There, in front of those employees, Coconspirator-1 used a username and password he had retained from his employment at the victim company to log in to a Toolbox, and provided a demonstration. Coconspirator-1 later also provided Zaidi and other Ticketmaster executives with internal and confidential financial documents he had retained from his employment at the victim company.
In January 2015, Coconspirator-1 was transferred to the Artist Services division, promoted to Director of Client Relations, and given a raise. Following the promotion, Coconspirator-1 emailed another Artist Services employee, “Now we can really start to bring down the hammer on [Victim Company].” Ticketmaster employees continued to access password-protected victim company Toolboxes through December 2015.
Ticketmaster’s Surveillance of the Victim Company’s Draft Ticketing Web Pages
Between approximately July 2014 and June 2015, Coconspirator-1 and others monitored draft ticketing web pages created by the victim company. Although these pages were not password-protected, they were not indexed in search engines, and therefore could not be located without determining the exact URLs, which included a series of numbers. Until the victim company or artist publicly disseminated a URL, the victim company intended to restrict access to itself and the artist.
After joining Live Nation, Coconspirator-1 explained to Zaidi and others how the “store ID” numbers in the URLs were numbered sequentially, enabling Ticketmaster employees to monitor new pages and to learn which artists planned to use the victim company to sell tickets. Coconspirator-1 used this information to search for new victim company ticketing web pages, and sent the URLs to Ticketmaster executives. In or about January 2015, a Ticketmaster employee was assigned to learn about this system from Coconspirator-1, and maintained a spreadsheet listing every victim company ticketing web page that could be located, so that Ticketmaster could identify the victim company’s clients and attempt to dissuade them from selling tickets through the victim company. Zaidi explained that “we’re not supposed to tip anyone off that we have this view into [the victim company’s] activities.”
The Deferred Prosecution Agreement and Criminal Information
Under the terms of the deferred prosecution agreement, Ticketmaster will pay a criminal penalty of $10 million and will maintain a compliance and ethics program designed to prevent and detect violations of the Computer Fraud and Abuse Act and other applicable laws, and to prevent the unauthorized and unlawful acquisition of confidential information belonging to its competitors. Ticketmaster will also report to the United States Attorney’s Office annually during the three-year term of the agreement regarding these compliance measures. If the Company breaches the agreement, it will be subject to prosecution for the charges in the criminal information that was filed today, charging the Company with one count of conspiracy to commit computer intrusions, one count of computer intrusion for commercial advantage, one count of computer intrusion in furtherance of fraud, one count of wire fraud conspiracy and one count of wire fraud.
The investigation is being conducted by the FBI’s New York Field Office. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Allon Lifshitz, Craig R. Heeren and Ian C. Richardson are in charge of the prosecution.
The Defendants:
TICKETMASTER L.L.C.
E.D.N.Y. Docket No. 20-CR-563 (MKB)
ZEESHAN ZAIDI
Age: 46
New York, New YorkE.D.N.Y. Docket No. 19-CR-450 (MKB)
Rock Island Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Darrell Kenneth Holloway, age 29, of Rock Island, Illinois, to 150 months in prison for Possession with Intent to Distribute a Controlled Substance and Felon in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Holloway was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began on the evening of July 4, 2019, when a domestic dispute between Holloway and his girlfriend erupted into a violent altercation. While in Illinois, Holloway shot at his girlfriend’s vehicle as she drove away from him. Holloway then fled into Iowa, where he and another individual eluded law enforcement through the streets of Bettendorf. During their flight, Holloway’s vehicle drove the wrong way down streets, caused property damage, and struck squad cars, nearly striking police officers. Once stopped and apprehended by law enforcement, officers located a .45 caliber Smith and Wesson handgun in the vehicle and 36 pills containing a mixture of methamphetamine and caffeine. As a convicted felon, Holloway is prohibited from possessing a firearm.
The case was investigated by the Bettendorf Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Philadelphia Man Sentenced to 12 1/2 Years for Trafficking Methamphetamine and Weapons, Including 'Ghost Guns,' Near SchoolsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Matthew Stephens, 52, of Philadelphia, PA, was sentenced to 151 months in prison and ten years of supervised release by United States District Judge Harvey Bartle III for his role in a scheme to traffic pounds of methamphetamine, several dozen firearms, machine gun conversion devices, and hundreds of rounds of ammunition between 2017 and 2019.
The defendant pleaded guilty in November 2019 to seven counts of drug trafficking and firearms charges, and then pleaded guilty again in August 2020 to nine additional firearms offenses charged in two Superseding Indictments. The specific charges included conspiracy to distribute methamphetamine, distribution of methamphetamine within 1,000 feet of a school, possession of a machine gun, possession of a non-registered machine gun, possession of a firearm by a felon, and dealing in firearms without a license.
The charges against Stephens stemmed from a long-term investigation conducted by the ATF into methamphetamine and firearms trafficking in the area of two public schools in the Kensington neighborhood of Philadelphia. In 2018 and 2019, during the course of this investigation, the defendant sold dozens of firearms to the ATF through a confidential informant. Many of these firearms had serial numbers that were obliterated, and still others were homemade, un-serialized, AR-15 style assault rifles, commonly referred to as “ghost guns” or “PMFs” (Privately Made Firearms) due to the complete absence of traceable manufacturer markings. Stephens also sold to the ATF during dozens of transactions parts designed to convert a semiautomatic firearm into a fully automatic firearm (“auto sears”), Glock machine gun conversion “kits,” two rifles and more than one hundred rounds of ammunition.
On March 27, 2019, Stephens was arrested during an ATF sting operation in the parking lot of a Wawa convenience store on Bustleton Avenue in North Philadelphia. At the time of his arrest, the defendant was in possession of over three kilograms of methamphetamine. For his criminal conduct, which included his role in three different conspiracies between 2017 and 2019, Stephens was later charged in three separate Indictments.
In total, Stephens sold 52 firearms, 44 machinegun conversion devices, and hundreds of rounds of ammunition, as well as more than $50,000 worth of methamphetamine. Many of the transactions occurred within one block of a public elementary school in Philadelphia. Two of the transactions involving methamphetamine occurred at a rest stop on the New Jersey Turnpike.
“This defendant personally threatened the safety of our communities,” said First Assistant United States Attorney Williams. “He sold drugs and firearms, including homemade untraceable firearms, immediately adjacent to two public schools, directly endangering the lives of children. Thanks to the steady, determined efforts of investigators at the ATF, Stephens’ revolving door of criminal contraband has been cut off.”
“Trafficked firearms represent a danger to our community, because they can end up in the hands of convicted felons, violent criminals, and many other kinds of people who are prohibited from having firearms,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This successful investigation and prosecution is a testament to our terrific partnership with the U.S. Attorney’s Office, and a reflection of our commitment to aggressively pursuing firearms traffickers in our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorneys Justin Ashenfelter and Priya T. De Souza.
Manitowoc Man Sentenced to Nine Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 15, 2020, Jonathon A. Erickson, also known as “Jonathon A. Jimenez” (age: 19), of Manitowoc, Wisconsin, was sentenced to nine years in federal prison for possession of controlled substances with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and unlawful possession of a firearm by a felon.
According to court documents, on April 26, 2020, City of Manitowoc police responded to a disturbance outside a parked car involving Erickson. Officers smelled marijuana coming from a backpack located in the vehicle. Inside the backpack, officers located marijuana, hydrocodone, ecstasy, Clonazepam, and a variety of other controlled substances, as well as a digital scale and a loaded Smith and Wesson 9mm handgun. A subsequent investigation linked ownership of the backpack and its contents to Erickson, a previously convicted felon.
In pronouncing sentence, Senior U.S. District Judge William C. Griesbach noted the serious nature of Erickson’s offense and the need to send a message of deterrence to Erickson and others involved with illegal drugs and firearms. The judge ordered that Erickson’s nine-year prison term be followed by seven years of supervised release.
The case was investigated by the City of Manitowoc Police Department and the Manitowoc County Metropolitan Enforcement Group. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Nathan Nosley, age 29, has been charged with sexual exploitation of children and distributing, receiving, possessing, and accessing child pornography. The charges are contained in a Superseding Indictment filed on December 16, 2020, in United States District Court in Cedar Rapids.
The six-count Superseding Indictment alleges that, between 2017 and 2020, Nosley persuaded, induced, and enticed minors under 18 to produce images of sexually explicit conduct that were transported in interstate commerce, distributed child pornography, received child pornography, possessed child pornography on a cell phone and a memory card (two counts), and accessed child pornography on a cell phone.
If convicted, Nosley faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 120 years’ imprisonment, a $1,500,000 fine, $201,600 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Nosley appeared on November 25, 2020, in federal court in Cedar Rapids for a detention hearing and was held without bond. Nosley’s next appearance for trial is set for March 22, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Iowa State Patrol, and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-101.
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Keokuk Man Sentenced to Prison for Felon in Possession of AmmunitionRead the Press Release
DAVENPORT, Iowa — On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Logan David Bode, age 32, of Keokuk, to 100 months in prison for Felon in Possession of Ammunition announced United States Attorney Marc Krickbaum. Following his prison term, Bode was ordered to serve three years of supervised release and pay $100 to the Crime Victims’ Fund.
The investigation began on September 1, 2019, when law enforcement was dispatched to a shots-fired incident in Keokuk. The investigation revealed Bode had argued with another male and shot at the man’s vehicle. On September 28, 2019, officers located Bode and arrested him on outstanding warrants. At that time, Bode was in possession of an inoperable firearm with a defaced serial number and three .45 caliber bullets. As a convicted felon, Bode is prohibited from possessing ammunition.
This matter was investigated by the Keokuk Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Kalona Man Sentenced to 25 Years in Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa—On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Jackson Yaro Young, age 22, of Kalona, to 300 months in prison for Production, Receipt, Possession, and Transfer of Child Pornography announced United States Attorney Marc Krickbaum. Following his prison term, Young was ordered to serve ten years of supervised release and pay $600.00 to the Crime Victims’ Fund.
The investigation of Young began in March 2019 when the Washington County, Iowa Probation Office received information that Young had been seen interacting with a minor in public. At the time, Young was on probation for a sexual abuse conviction originating in Linn County. Following further investigation, the Washington County Sheriff’s Office seized two phones from Young. Forensic review of the phones revealed images and videos of child pornography, as well as sexually explicit communication between Young and multiple minors. In communications retrieved from his phone, Young knowingly coerced his victims to engage in sexually explicit conduct. Young acted with the purpose of creating pornographic content and visual depictions of such content, as well as storing the material. Photos and images, produced and collected by Young, were transported electronically through interstate commerce through cellphone usage, and Young knew his victims were under 18 years of age.
This matter was investigated by the Federal Bureau of Investigation and the Washington County Sherriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide 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.
Justice Department Seeks Forfeiture of Third Commercial Property Purchased with Funds Misappropriated from PrivatBank in UkraineRead the Press Release
Today, the U.S. Department of Justice filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida alleging that commercial real estate in Cleveland, Ohio, was acquired using funds misappropriated from PrivatBank in Ukraine as part of a multi-billion-dollar loan scheme.
Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Justin E. Herdman for the Northern District of Ohio and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
In August 2020, two other civil forfeiture complaints were filed in the Southern District of Florida involving properties in Louisville, Kentucky and Dallas, Texas, in which it was alleged that those properties were also acquired using funds misappropriated from PrivatBank in Ukraine. All three properties are alleged to be subject to forfeiture based on violations of federal money laundering statutes.
The three complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the complaints, in the United States, associates of Kolomoisky and Boholiubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the office tower known as 55 Public Square in Cleveland, Ohio, the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of more than $60 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida are handling these cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.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.
Justice Department Secures Relief for U.S. Army National Guard Reservist on Employment Discrimination Claim Against Luxury Jeweler Harry WinstonRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the Southern District of Texas announced today that they resolved a claim that luxury jeweler Harry Winston Inc. violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer full-time employment to U.S. Army National Guard Reservist John A. Walker because of his military service obligations.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all servicemembers for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, reservist Walker applied for a job with Harry Winston, Inc., which denied his application. Walker alleged that Harry Winston, Inc. refused to hire him because of his military service obligations. Under the terms of the settlement, Harry Winston, Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
The U.S. Department of Labor (DOL) referred this matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled the case and work collaboratively with the DOL to protect the jobs and benefits of military members.
This investigation was led by Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens and Paralegal Specialist Raymond Babauta of the Southern District of Texas, along with Assistant Director Andrew Braniff of the Department of Justice’s Servicemembers and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Jewelry Wholesaler Pleads Guilty in $200 Million Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Gregory Altieri pleaded guilty to wire fraud for running a two-year $200 million Ponzi scheme based on false statements to investors about inflated returns for nonexistent wholesale jewelry deals. As part of the plea, Altieri also admitted to committing securities fraud in connection with the scheme. When sentenced, Altieri faces up to 20 years in prison. Today’s proceeding took place before United States District Judge Brian M. Cogan.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Altieri is held accountable for duping dozens of investors, including retirees living off their pensions,” stated Acting United States Attorney DuCharme. “The defendant’s lies have caught up to him and he will now face the consequences of his fraudulent scheme.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, for its exemplary work on the case, and to the Securities and Exchange Commission, New York Regional Office, for their assistance.
Beginning in August 2017, Altieri solicited between $75 million to $85 million in investments in his entity, LNA Associates, from over 80 investors located in Queens, Staten Island, Long Island and elsewhere. Altieri told investors that their money would be used to purchase jewelry at “closeout” prices, which would then be resold at a high profit yielding returns on those investments of between 30 and 70 percent in a matter of months. While Altieri initially purchased some jewelry with investors’ money, since approximately May 2018, he used money from new investors to pay earlier investors, representing to the latter group that they were receiving returns on their investments. These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates by “rolling over” their funds into new investments based on false promises to use this money to purchase additional jewelry. By January 2020, when Altieri stopped making payments to investors, he owed them approximately $200 million based on the falsely inflated promised returns.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit and by a Special Agent of the Office’s Business & Securities Fraud Section.
The Defendant:
GREGORY ALTIERI
Age: 53
Melville, New YorkE.D.N.Y. Docket No. 20-CR-249 (BMC)
Jennings Woman Sentenced for Mail Theft by USPS EmployeeRead the Press Release
A woman was sentenced in federal court today after stealing cash and hydrocodone tablets from packages while working for the U.S. Postal Service, announced U.S. Attorney Trent Shores.
Jennifer Louise Bruce, 44, of Jennings, received a sentence of three years of probation from Chief U.S. District Judge John E. Dowdell. Bruce was convicted of mail theft after stealing hydrocodone tablets from packages mailed by a VA Medical Center and Outpatient Clinics on several different occasions and stealing cash from cards that had been mailed through the Postal Service.
“Abusing a position of trust within the U.S. Postal Service for the purpose of stealing drugs and money undermines the public’s trust in an essential government service. Jennifer Bruce violated the sanctity of the mail by corruptly acting for personal gain,” said U.S. Attorney Trent Shores.
In her plea agreement, Bruce admitted to stealing money from cards and controlled substances from packages that had been mailed. She stated that during this time, she was employed by the U.S. Postal Service as a Sales and Services Associate. Over a four-month period, Bruce admitted that she stole a total of 240 hydrocodone tablets.
The Office of the Inspector General of the U.S. Postal Service conducted the investigation. Assistant U.S. Attorneys Joseph F. Wilson, now retired, and Kevin C. Leitch prosecuted the case.
Identity Thief Extradited from Dominican Republic Sentenced to Two and ½ Years in Prison for Using Stolen Information to Commit Tax FraudRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Arleny Reyes Nunez, 42, of Philadelphia, PA and the Dominican Republic, was sentenced to 30 months in prison and three years of supervised release, and ordered to pay $154,528 in restitution by United States District Judge Harvey Bartle III, for using the personal identification information of others to file fraudulent tax returns, resulting in more than $150,000 in losses to the federal government.
In August 2020, the defendant pleaded guilty to charges of criminal conspiracy to defraud the federal government, theft of government funds, and the unlawful possession and use of a means of identification. The charges were the result of the defendant and her co-conspirators acting together to defraud the United States by filing fraudulent tax returns using the identities of others.
From 2010 through May 2014, Reyes Nunez prepared and filed approximately 29 false tax returns, retrieved the refund checks (sometimes paying a minor child to retrieve paper checks from mailboxes at vacant Philadelphia properties), and deposited the checks into bank accounts associated with fake businesses she created in furtherance of this scheme. Later, in order to avoid apprehension, the defendant fled to her home country of the Dominican Republic, where she was ultimately arrested by local authorities for using a false passport and extradited back to the United States in January 2020.
“The defendant played a key role in a scheme to exploit others’ personal information in order to steal from the federal government,” said First Assistant U.S. Attorney Williams. “Further, when Reyes Nunez became aware that authorities had a warrant for her arrest, she abandoned her family and fled the United States in order to avoid facing criminal consequences. But she could not outrun justice, and now she will pay her debt to society.”
“Ms. Reyes Nunez thought she could flee the country to evade prosecution,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “What she failed to count on is that IRS Criminal Investigation special agents work diligently to identify and bring to prosecution those who engage in tax fraud. Her extradition and sentencing should serve as a reminder that we are committed to vigorously pursuing those who undermine the integrity of the U.S. tax system.”
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to over three months in federal prison.
Juan Carlos Cabrera-Carreto, age 45, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a guilty plea on November 13, 2020, to one count of illegal reentry into the United States.
At the guilty plea, Cabrera-Carreto admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Cabrera-Carreto was deported in September 2005. Cabrera-Carreto most recently came to the attention of immigration agents following a traffic accident in September 2020.
Cabrera-Carreto was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cabrera-Carreto was sentenced to 97 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Cabrera-Carreto is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-83. Follow us on Twitter @USAO_NDIA.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to four months in federal prison.
Andres Mejia-Perez, age 30, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a guilty plea on October 30, 2020, to one count of illegal reentry into the United States.
In a plea agreement, Mejia-Perez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Mejia-Perez was deported in January 2012 and he illegally reentered the United States in April 2012. Mejia-Perez most recently came to the attention of immigration agents in May 2020 when he was found during the execution of a state search warrant at a home in Toledo.
Mejia-Perez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mejia-Perez was sentenced to 119 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mejia-Perez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-72. Follow us on Twitter @USAO_NDIA.
Employment discrimination claim resolved on behalf of U.S. Army National Guard reservistRead the Press Release
HOUSTON – Luxury Jeweler Harry Winston has paid a U.S. Army reservist to resolve a claim they violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer him full-time employment.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all service members for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas (SDTX). “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, John Walker applied for a job with Harry Winston Inc. who ultimately denied his application. Walker alleged Harry Winston Inc. refused to hire him because of his military service obligations.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages. It also intended to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service. USERRA also prohibits discrimination against persons because of their service in the uniformed services or if they pursue a claim.
Under the terms of the settlement, Harry Winston Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
The Department of Labor - Veterans’ Employment and Training Service conducted the investigation.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled the matter with Assistant Director Andrew Braniff of the Department of Justice’s Service members and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section. SDTX paralegal specialists Raymond Babauta and Nicole Robbins also provided assistance.
Davenport Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On December 29, 2020, United States District Court Chief Judge John A. Jarvey sentenced Dawone Darnell Henderson, age 34, of Davenport, to 151 months in prison for Possession with Intent to Distribute a Controlled Substance and Felon in Possession of a Firearm announced United States Attorney Marc Krickbaum. Following his prison term, Henderson was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began in 2019 during routine patrol of a privately-owned park. Officers found two males loitering under a pavilion. As officers approached the men, one of the men— Henderson—fled. As he ran, Henderson threw a .40 caliber Smith and Wesson handgun over a fence into a residential yard. After arresting Henderson, officers located crack cocaine in his pocket. Henderson is a convicted felon and is prohibited from possessing a firearm.
This case was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Indicted on Federal Child Pornography ChargeRead the Press Release
BOSTON – An Auburn man was indicted today by a federal grand jury on a child pornography charge.
Christopher Rondeau, 35, was indicted on one count of possession of child pornography and will be arraigned in federal court in Worcester at a later date. Rondeau was arrested and charged by criminal complaint on Nov. 6, 2020.
According to the charging documents, a search was executed at Rondeau’s residence where a cell phone was found containing images and videos of child pornography. 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 was on supervised release at the time of his November arrest.
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 case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
29 December 2020
United States Attorney David J. Freed Announces ResignationRead the Press Release
HARRISBURG – United States Attorney David J. Freed, of Camp Hill, PA, has announced his resignation effective midnight January 1, 2021. Mr. Freed is departing the office after serving for more than three years as the chief federal law enforcement officer for the Middle District of Pennsylvania, which consists of 33 counties in Central and Northeastern Pennsylvania and has offices in Harrisburg, Scranton, and Williamsport. Mr. Freed was nominated as United States Attorney by Senators Pat Toomey and Bob Casey, appointed by President Donald Trump in September, 2017, confirmed by the United States Senate in November, 2017, and sworn in as United States Attorney on November 27th, 2017.
Mr. Freed was born in West Chester, PA, and raised first in Pottsville, PA, and later Camp Hill, PA, where he resides with his family. He is a graduate of Camp Hill High School, Washington and Lee University, and the Pennsylvania State University Dickinson School of Law. Prior to his appointment as United States Attorney, Mr. Freed served for twelve years as the District Attorney of Cumberland County.
“I have been enormously privileged to be able to serve my fellow citizens, first as a young prosecutor in York County, then later in several positions in Cumberland County including 12 years as District Attorney, and finally as the United States Attorney for the Middle District of Pennsylvania. I have done my best to be thoughtful and consistent, and to provide justice to my fellow citizens in a fair, effective and efficient manner. I am grateful to President Trump and Senators Toomey and Casey for the opportunity to serve; and to former Attorneys General Sessions and Barr for their leadership of the Department.”
“I have had the incredible opportunity to work with our brave men and women in law enforcement nearly every day for the past 20 years and continue to be amazed by their commitment to their fellow citizens. I have witnessed first-hand the fortitude and grace of victims of crime, and have taken to heart the awesome responsibility of speaking for those who cannot speak for themselves.”
“For the past three years, I have had the great fortune to work with the highly skilled attorneys and staff in the Middle District of Pennsylvania. It is an office blessed with experienced and dedicated leaders, and colleagues who truly understand the importance of working together for the benefit of their fellow citizens. It was not difficult to recognize, frankly before I even started, that the office was efficient and productive, and was in need of very little change. More than anything over the past three years, I have endeavored above all to tell the story of the great accomplishments of the office. While the public words are mine, the accomplishments belong to them.”
The United States Attorney’s Office for the Middle District of Pennsylvania consists of three distinct Divisions: Criminal, Civil, and Administrative. The accomplishments of each Division during Mr. Freed’s tenure are many and varied.
Criminal
Foremost among the office’s accomplishments during Mr. Freed’s tenure has been the continued commitment to working together with state and local partners in an effort to reduce violent crimes in targeted areas throughout the District. As part of the Department of Justice priority programs Project Safe Neighborhoods and Project Guardian, the office has worked hand in hand with District Attorneys, state and local law enforcement and community partners in target areas including the cities of Harrisburg, Wilkes Barre, Williamsport, and York to address gun violence at a micro level. I am happy to report that our efforts have been successful as reflected by recent statistics showing significant reductions in gun violence throughout the District. In addition, the office pursued and successfully prosecuted numerous priority cases in the areas of public corruption, drug trafficking, drug delivery resulting in death, drug distribution and illegal prescribing by medical professionals, fraud, sex trafficking and exploitation of minors, environmental crimes and illegal immigration.
Civil
The office’s Civil Division has wide areas of responsibility, from defending federal agencies and employees in civil matters to immigration, discrimination matters, and prisoner litigation. Following a reorganization of the office’s affirmative civil efforts, the Affirmative Civil Enforcement (ACE) Unit was formed to allow a dedicated team of attorneys and investigators to attack fraud against the government. The ACE unit has enjoyed nearly immediate success, bringing cases and negotiating the return of millions of taxpayer dollars that individuals and businesses had obtained by fraudulent means. The Civil Division continues to focus upon important polling place access discrimination cases throughout the district with the goal of ensuring that every eligible citizen will be able to cast a vote regardless of any disability. With a federal prison population that is larger than all but two other districts in the nation, the dedicated prisoner litigation attorneys and paralegals handle a constant stream of cases from the district’s federal correctional institutions with extremely favorable outcomes.
Administrative
Notwithstanding the current pandemic and the longest government shutdown in United States history, the office’s Administrative Division has been exceedingly productive during the past three years. Chief among these accomplishments has been the institution of a yearly strategic planning process including individual employee self-assessments and clear yearly goals updated annually and monitored throughout the year. In addition, the support of the Administrative Division has allowed the Financial Litigation Unit to collect well in excess of the District’s budget each year, and allowed the District to maintain its position as the one of the most productive medium sized offices in the nation.
Upon Mr. Freed’s departure, First Assistant United States Attorney Bruce D. Brandler will assume the position of United States Attorney pursuant to the Vacancies Reform Act. Mr. Brandler has been with the office for more than 30 years, and previously served as United States Attorney from 2016 to 2017.
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U.S. Attorney’s Office Settles Disability Discrimination Allegations with Operator of Skilled Nursing FacilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with Alliance Health and Human Services, the operator of eight skilled nursing facilities in Massachusetts, to resolve allegations that they violated the Americans with Disabilities Act (ADA) by turning away patients because they were being treated for Opioid Use Disorder (OUD).
According to the complaint, Alliance denied individuals seeking admission on more than 350 occasions because they were being treated with buprenorphine or methadone, medications used to treat OUD. These individuals were seeking admission to the facilities for health issues unrelated to their addiction, but also required that the facilities administer those treatments as they would administer any other medication. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, Alliance will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, pay a civil penalty of $50,000 to the United States, $10,000 of which will be paid now and $40,000 of which shall be suspended and forgiven if Alliance materially complies with the terms of the agreement.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the Title III of the ADA and to eliminate discriminatory barriers to treatment for OUD. In May 2018, the U.S. Attorney’s Office reached a settlement with Charlwell House, a rehabilitation center that provides skilled nursing services. A similar settlement was reached with Athena Health Care Systems in September 2019. Today’s settlement marks the third resolution in the District of Massachusetts.
This matter was handled by Assistant U.S. Attorneys Torey Cummings and Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.-