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Wednesday 4 November 2020
Big Stone Gap Man Sentenced to 120 Months for Role in Drug ConspiracyRead the Press Release
ABINGDON, Va.- Sammy McMahan, the last of the 21 co-conspirators who distributed methamphetamine in Wise and Lee counties in Southwest Virginia, was sentenced today to 120 months in federal prison for his role in the scheme. Acting United States Attorney Daniel P. Bubar made the announcement today following McMahan’s sentencing.
McMahan, 54, previously pleaded guilty to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
“Methamphetamine continues to ravage Virginia and those who traffic in it must be held accountable for harming our communities,” United States Attorney Bubar said today. “I am thankful to the ATF and the Southwest Virginia Drug Task Force for bringing these 21 defendants to justice.”
According to court documents, McMahan was one of 21 defendants charged in a May 29, 2019 indictment who conspired to distribute methamphetamine throughout Wise and Lee counties in Southwest Virginia. The 21 defendants were sentenced to a total of 310 years and one month in prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Southwest Virginia Drug Task Force, which is comprised of the Scott County Sheriff’s Office, Lee County Sheriff’s Office, Wise County Sheriff’s Office, Dickenson County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the Virginia State Police. Assistant United States Attorneys Lena Busscher, Jonathan Jones, and Anthony P. Giorno prosecuted the case for the United States.
Albuquerque man sentenced to six years in prison for robberyRead the Press Release
ALBUQUERQUE, N.M. – Vicente Perez, 22, of Albuquerque, was sentenced on Oct. 29 in federal court to six years and three months in prison for robbery. Perez pleaded guilty on July 10. His accomplice, Jacob Merkel, pleaded guilty on Aug. 24 for his part in the crime.
According to his plea agreement, Perez admitted to driving Merkel to Tobacco Town, a business in Albuquerque, on Nov. 20, 2019, with the intent of robbing the business. Merkel robbed the store at gunpoint and fired a shot at the clerk while exiting the building. Perez and Merkel fled, but were identified and followed by Albuquerque Police. While Perez attempted to evade the police, a tire on his car blew out, disabling it, and Perez and Merkel fled on foot. Perez surrendered after a brief pursuit.
In addition to his prison sentence, Perez will be subject to three years of supervised release. Merkel remains in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Eva M. Fontanez prosecuted the case.
Tuesday 3 November 2020
Whitewood Couple Sentenced to Federal Prison for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Whitewood, South Dakota, man and woman who both pleaded guilty to Conspiracy to Distribute a Controlled Substance, have been sentenced by Jeffrey L. Viken, U.S. District Court Judge
Robert Bartels, age 24, was sentenced on August 14, 2020, to 10 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Raina Strickland, age 24, was sentenced on October 30, 2020, to 10 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately May 2019 to December 2019, Bartels and Strickland distributed methamphetamine out of hotels in Sturgis and Spearfish.
This case investigation was a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Unified Narcotics Enforcement Team (UNET), the Rapid City Police Department, and the Pennington County Sheriff’s office.
Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Bartels and Strickland were immediately returned to the custody of U.S. Marshals Service.
West Virginia Man Pleads Guilty to Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Jay James Fields, 38, pled guilty yesterday to possession with intent to distribute methamphetamine and heroin.
“State and local law enforcement agencies work hard every single day to keep our communities safe from drug dealers like Fields,” said United States Attorney Mike Stuart. “I commend the Logan County Sheriff’s Department for their work in this case.”
Fields admitted that on June 12, 2020, in the Mallory Hollow area of Logan County, a deputy with the Logan County Sheriff’s Department searched his vehicle and found approximately 37 grams of methamphetamine and 3.5 grams of heroin. He admitted he intended to sell the substances.
Fields faces up to twenty years in prison when sentenced on February 1, 2021.
The Logan County Sheriff’s Department conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00149.
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Wall Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Wall, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on October 30, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Justin Westby, age 46, was sentenced to five years 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.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Westby was arrested and federally indicted following multiple text messages he exchanged with a person Westby believed to be a 15-year-old girl, but who was in fact an undercover agent. Westby requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Westby went to the pre-determined location to meet the minor, he was instead 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.
Westby was immediately remanded to the custody of the U.S. Marshals Service.
United States Attorney and DEA Announce Results of DEA's National Prescription Drug Take Back DayRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that over eight tons of prescription drugs and other items were collected in New Hampshire during the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, October 24, 2020.
During the event, approximately 16,840 pounds of unwanted prescription drugs and electronic vaping devices and cartridges were collected. In all, the DEA in New England collected over 57 tons of drugs and other material.
“I am grateful for the efforts of Granite State citizens to dispose of unwanted drugs in a safe and responsible way,” said U.S. Attorney Murray. “By participating in this event, the DEA and local law enforcement officers partnered with members of the community to remove unwanted drugs from medicine cabinets. This type of common sense effort helps to prevent drugs from being misused or wrongfully distributed.”
“Thanks to the public over 57 tons of unwanted, expired, unused, prescription drugs, electronic vaping devices and cartridges have now been taken out of harm’s way across New England,” said DEA Special Agent in Charge Brian D. Boyle. “Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. These events are only made possible through the hard work of our law enforcement, coalitions and community partners and DEA thanks each and every one of them for their efforts in making this initiative a huge success.”
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Unauthorized Cash Withdrawals from ATM Locations in Shreveport Lead to Conviction of California ManRead the Press Release
SHREVEPORT, La. – Dennis Busch, 40, of Costa Mesa, California was sentenced today on federal wire fraud charges, Acting United States Attorney Alexander C. Van Hook announced. Busch was sentenced by United States District Judge S. Maurice Hicks, Jr. to 72 months (6 years) in prison followed by 3 years of supervised release. In addition, he was ordered to pay $63,045 in restitution.
At the guilty plea hearing on July 7, 2020, Busch admitted to defrauding Capital One Financial Corporation (“Capital One”) of thousands of dollars in 2018 and 2019. Busch used altered, re-encoded Capital One debit cards to make cash withdrawals from ATMs located in the Western District of Louisiana by entering the account holder’s personal identification number and selecting a cash withdrawal from the bank account, without the account holder’s consent or knowledge.
In September and October 2018, Busch withdrew $33,838 from bank accounts of numerous Capital One account holders. In August 2019, Busch used the same manner and means to make unauthorized cash withdrawals in the amount of $28,607 from Capital One ATMs located in this district. He attempted to make numerous additional transactions, but those transactions were denied by the bank. In total, Busch made over 300 fraudulent ATM withdrawals from account holders residing in the Shreveport-Bossier City area. The investigation revealed that some of the account holders had previously responded to text messages that were part of a phishing scam, which compromised their banking information. Capital One reimbursed the account holders and ultimately sustained the loss.
The United States Secret Service conducted the investigation and Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
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U.S. Attorney’s Office for the Northern District of Georgia will monitor voting procedures in Fulton and Gwinnett CountiesRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (”DOJ”) announced plans for voting rights monitoring in Fulton and Gwinnett Counties for the Nov. 3, 2020 general election. The DOJ historically has monitored in jurisdictions in the field on election day, and is again doing so this year. The department will also take complaints from the public nationwide regarding possible violations of the federal voting rights laws through its call center.
“Every citizen must be able to vote without interference or discrimination,” said U.S. Attorney Byung J. “BJay” Pak. “On Election Day, Civil Division staff from my office will be monitoring voting procedures at polling places throughout Fulton and Gwinnett Counties. Free and fair elections are critical to our democracy, and my office will continue to devote resources to protect this fundamental right.”
“Federal law entrusts the Civil Rights Division with protecting the right to vote for all Americans,” said Eric S. Dreiband, Assistant Attorney General for the Civil Rights Division. “Our federal laws protect the right of all American citizens to vote without suffering discrimination, intimidation, and harassment. The work of the Civil Rights Division around each federal general election is a continuation of its historical mission to ensure that all of our citizens can freely exercise this most fundamental American right.”
The Civil Rights Division enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. Since the passage of the Voting Rights Act in 1965, the division has regularly monitored in a variety of elections around the country throughout every year to protect the rights of all voters, and not just in federal general elections.
On Nov. 3, the United States Attorney’s Office and the Civil Rights Division plan to send personnel to two jurisdictions in the Northern District of Georgia to monitor for compliance with the federal voting rights laws.
As in past years, monitors will focus on compliance with the Voting Rights Act, and the other federal voting rights laws enforced by the division. Monitors will include civil rights personnel from the Civil Rights Division and civil personnel from the U.S. Attorney’s Office. Civil Rights Division personnel and the U.S. Attorney’s Office will maintain contact with state and local election officials.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Civil Rights Division personnel will be available all day to receive complaints from the public related to possible violations of the federal voting rights laws by a complaint form on the department’s website https://civilrights.justice.gov/ or by telephone toll-free at 800-253-3931.
Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at https://www.ada.gov/.
Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.
Last week, the Justice Department announced its overall plans for the general election to protect the right to vote and secure the integrity of the voting process through the work of the Civil Rights Division, Criminal Division, National Security Division, and U.S. Attorney’s Offices.
More information about the federal civil rights laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Robert Brewer Announces DOJ Grant to Combat Violent Crime in San DiegoRead the Press Release
Assistant U. S. Attorney Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – November 3, 2020
SAN DIEGO – U.S. Attorney Robert S. Brewer today announced that Social Advocates for Youth, San Diego Inc. (“SAY”) has received a $488,495 Department of Justice grant to fight and prevent violent crime in the Southern District of California. The grant, awarded by the Department’s Office of Justice Programs, is part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
“This grant to SAY will support comprehensive intervention strategies (including mentoring, restorative circles and emotional literacy education), that both dissuade youth from joining gangs and help them escape if they are already entrenched in the lifestyle,” said U.S. Attorney Brewer. “It is programs like this that can pull kids from the clutches of gangs and put them on a path to a better life.”
With this money, Social Advocates for Youth will implement project REJUVENATE, a comprehensive intervention program to reduce violence and gang involvement among youth living in opportunity zones in San Diego. This program will employ prevention and intervention strategies that address individual, family, and community factors that contribute to gang activities. In partnership with Project Aware and Union of Pan Asian Communities, SAY will serve 192 high-risk youth and reach 3,000 youth ages 12–17. The program will seek to reduce gang involvement by 80 percent for participants by providing work experience, life skills, and counseling. SAY will increase rates of participants in alcohol and drug education, intervention and referral for treatment, and increase community connectedness. Activities include employment training, restorative talk circles, counseling, and the development of a youth-led task force.
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney John C. Anderson announces $500,000 to combat violent crime in the District of New MexicoRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson today announced a $500,000 Department of Justice grant to fight and prevent violent crime in Bernalillo County, New Mexico. The grant, awarded by the Department’s Office of Justice Programs, is part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
The funding announced today continues the Trump Administration’s commitment to reducing crime and improving public safety. In the two years before President Trump took office, America had experienced a precipitous rise in crime, particularly in serious violent crime. The President elevated community safety to the top of his domestic agenda and crime rates have fallen steadily since. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
“I am pleased to announce this additional funding awarded to Bernalillo County as part of Operation Legend,” said U.S. Attorney Anderson. “Sheriff Gonzales and his department have been integral partners in identifying and apprehending perpetrators of dangerous crimes in our community. This funding helps to ensure that our efforts are sustainable over the long term.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
Bernalillo County will receive $500,000 to assist in continuing efforts as part of Operation Legend. Operation Legend is an ongoing, systematic and coordinated law enforcement initiative across federal law enforcement agencies work with state and local law enforcement officials to fight the current surge of violent crime in American cities.
“The Bernalillo County Sheriff's Office is grateful for our federal law enforcement partners supporting our office in the removal of career criminals from the streets and combating Albuquerque's out-of-control crime crisis. This additional funding proves we have the federal government's full support to make Bernalillo County a safer place to live.”
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
Two Virginia Men Convicted for Their Roles in Investment Fraud SchemeRead the Press Release
A federal jury found two representatives of a purported investment company based in the United Kingdom guilty on Oct. 30 for their roles in an investment fraud scheme by which they stole at least $5 million from victim investors.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group, Special Agent in Charge David Archey of the FBI’s Richmond Field Office and Mark C. Christie Chair of the Virginia State Corporation made the announcement.
After a four-day trial, James Michael Johnson, 69, of Richmond, Virginia and James Leonard Smith, 64, of Midlothian, Virginia, were convicted of conspiracy to commit wire fraud, wire fraud, and money laundering.
Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment. Sentencing for Johnson and Bridge is scheduled for March 5, 2021, before U.S. District Court Judge Henry E. Hudson for the Eastern District of Virginia. Co-conspirator Stuart Anderson, who pleaded guilty to his role in the scheme, is scheduled to be sentenced on Nov. 13.
According to evidence presented at trial, Johnson and Smith participated in a worldwide scheme through Chimera Group Ltd. The scheme operated as an advance fee scheme which involved the defendants as promoters who promised to pay the victims a sum of money at a later date in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and Smith and their co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that the defendants used escrow attorneys, who were themselves part of the scheme, in order to give the victims the appearance that their money would remain secure until the defendants’ promises had been kept.
The defendants stole at least $5 million from their victims.
The U.S. Postal Inspection Service’s Criminal Investigations Group, FBI’s Richmond Field Office and Virginia State Corporation Commission investigated the case. Trial Attorneys Vasanth Sridharan and Christopher Jackson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Men Charged with March 2011 MurderRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and David Chong, Public Safety Commissioner for the City of White Plains, announced the unsealing of a federal Indictment charging MARCUS CHAMBERS, 29, a/k/a “Chino,” a/k/a “Chi D,” a/k/a “SP,” and DARNELL KIDD, a/k/a “Black,” a/k/a “Donney,” a/k/a “Donney Black,” 29, with the murder of Jonathan Johnson, 21, on March 18, 2011, in White Plains, New York. CHAMBERS and KIDD are serving prison sentences from prior federal convictions, and will be brought to the federal courthouse in White Plains at a later date to be presented before a magistrate judge.
Acting U.S. Attorney Audrey Strauss said: “In March 2011, Jonathan Johnson was shot dead, the victim of senseless drug-related violence. As alleged in the Indictment, Marcus Chambers and Darnell Kidd are responsible for that murder. Thanks to the work of our remarkable law enforcement partners, Chambers and Kidd now stand charged in federal court for this terrible crime.”
FBI Assistant Director William F. Sweeney Jr. said: “At times, it may seem murders are less likely to be solved as more time passes. However, as the two men charged in this case have learned, the investigators and analysts assigned to our Westchester County Safe Streets Task Force don’t let time get in the way. Their commendable dedication and determination has now forced these men to answer for their alleged actions.”
White Plains Public Safety Commissioner David Chong said: “When local and federal law enforcement team together, there is little place for criminals to hide. This is a perfect example, taking two alleged felons off the streets for a vicious crime.”
According to the allegations in the Indictment[1]:
On or about March 18, 2011, CHAMBERS and KIDD murdered Jonathan Johnson by shooting him during the course of an armed robbery of Johnson for marijuana in White Plains, New York.
CHAMBERS and KIDD are each charged with one count of murdering Johnson through the use of a firearm during and in relation to a crime of violence, and aiding and abetting the same, in violation of Title 18, United States Code, Sections 924(j) and 2. This charge carries a maximum penalty of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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Ms. Strauss praised the outstanding investigative work of the White Plains Police Department and the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Putnam County Sheriff’s Office, Town of Ramapo Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. Ms. Strauss also thanked the Westchester County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Olga Zverovich and Christopher Brumwell are in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Former eBay Executives Indicted in Connection with Cyberstalking CampaignRead the Press Release
BOSTON – Two former eBay, Inc. executives were indicted today by a federal grand jury in Boston in connection with their roles in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.
James Baugh, 45, of San Jose, Calif., eBay’s former Senior Director of Safety & Security, and David Harville, 48, of New York City, eBay’s former Director of Global Resiliency, were indicted on one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts each of stalking through interstate travel, two counts of stalking through facilities of interstate commerce, two counts (Baugh) and one count (Harville) of witness tampering, and two counts (Baugh) and one count (Harville) of destruction, alteration, and falsification of records in a federal investigation. Baugh and Harville were previously charged by criminal complaint and arrested on June 15, 2020.
Co-conspirators and former eBay employees Philip Cooke, 55, Brian Gilbert, 52, Stephanie Popp, 32, Veronica Zea, 26, and Stephanie Stockwell, 26, previously pleaded guilty to conspiracy to commit cyberstalking and conspiracy to tamper with witnesses.
According to the charging document, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay. Members of eBay’s executive leadership team followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories.
It is alleged that in August 2019, the defendants and their co-conspirators executed a three-part harassment campaign targeting the Natick couple, which included the defendants sending anonymous and disturbing deliveries to the victims’ home; sending private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick; and traveling to Natick to surveil the victims and install a GPS tracking device on their car.
Among other things, the indictment alleges that Baugh convened meetings to plan and coordinate the various parts of the harassment campaign; directed Harville to travel with him to Boston for an “op” targeting the victims and their website; directed Stockwell to “make up” allegations that the victims had made direct threats to eBay, the company’s CEO and its employees as cover in case the surveillance team was stopped; and posed as Zea’s husband when a Natick Police detective arrived in the lobby of Boston’s Ritz Carlton hotel to investigate eBay’s connection to the harassment campaign.
Among other things, the indictment alleges that Harville flew from California to Boston intending to place the victims under surveillance; attempted to install a GPS tracking device on the victims’ car; purchased tools intending to break in to the victims’ garage; lied to an eBay investigator who was responding to the Natick Police’s request for assistance; and deleted evidence from his company-issued cell phone after learning of the criminal investigation.
The charges of conspiracy to commit stalking and stalking each carry a sentence of up to five years in prison, three years of supervised release, a fine of up to $250,000 and restitution. The charges of witness tampering and destruction, alteration and fabrication of records in a federal investigation each carry a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 and restitution. The witness tampering charges also carry the potential for forfeiture. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Natick Chief of Police James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the federal investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Lelling’s Securities, Financial and Cyber Fraud Unit, is prosecuting the case.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Former Jacksonville City Council Members Sentenced to Federal Prison for Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Katrina Brown (40, Jacksonville) to 33 months in federal prison and Reginald Brown (58, Jacksonville) to 18 months in federal prison. The Court also ordered Katrina Brown to pay a forfeiture money judgment of $425,335.68 and Reginald Brown to pay a forfeiture money judgment of $411,752.68, funds which are traceable to the offenses.
On October 2, 2019, a jury found Katrina Brown and Reginald Brown guilty of conspiracy to commit mail and wire fraud, aiding and abetting mail and wire fraud, and aiding and abetting money laundering. The jury also found Katrina Brown guilty of attempted bank fraud and making false statements to a federally insured financial institution. Reginald Brown was also found guilty of failure to file an income tax return with the Internal Revenue Service for tax year 2014.
According to the evidence, in late 2013, Katrina Brown was the primary principal for two businesses (Basic Products, LLC and CoWealth, LLC), which in 2011 obtained a loan in the amount of $2,652,000 from the Small Business Administration (SBA), and both a loan of $380,000 and a grant of approximately $260,000 from the City of Jacksonville (COJ), to fund a small business that specialized in manufacturing, bottling, and selling barbecue sauce. As a member of the Jacksonville City Council, Reginald Brown voted in favor of City Ordinance 2011-290-E, which authorized the COJ loan and grant – proceeds of which he and Katrina Brown would later obtain by fraud.
Katrina Brown’s family had been in the barbecue business in Jacksonville for many years. The $3.2 million in financing was intended to fund an expansion of Basic Products and help create permanent manufacturing jobs in Northwest Jacksonville. Each time Katrina Brown sought money for Basic Products from BizCapital, the SBA-approved lender, she submitted a Loan Reimbursement Form that included the purported business expenses for which Basic Products sought reimbursement.
In late 2013, when the barbecue business was failing, Katrina Brown assisted Jacksonville City Councilman Reginald Brown in incorporating two businesses (A Plus Training and Consultants, LLC and RB Packaging, LLC) with the Florida Division of Corporations. A Plus Training and RB Packaging never performed any legitimate business. Instead of properly notifying BizCapital that Basic Products was in financial distress, Katrina Brown worked with Reginald Brown to submit fake invoices from A Plus Training and RB Packaging to the SBA lender, BizCapital, claiming that his businesses performed work for Basic Products requiring reimbursement, when the businesses did not.
BizCapital sent checks at times, larger than $60,000, to RB Packaging and A Plus Training, which, on paper, were headquartered at Reginald Brown’s home and his mother’s home, respectively. Reginald Brown deposited the checks into the bank accounts for A Plus Training and RB Packaging, then withdrew a significant portion of the money and provided it to Katrina Brown, who either kept the cash or laundered the money by depositing it back into the Basic Products bank account so that she could control the funds.
From late 2013 to early 2015, Reginald Brown, A Plus Training, and RB Packaging served as a conduit to receive $264,419.04 in proceeds from the SBA loan and the COJ grant, then funneled at least $166,500 back to Basic Products. Reginald Brown kept the money not provided to Katrina Brown, despite performing no legitimate work or services for Basic Products, and used the majority of the money for personal expenses. Reginald Brown never filed a tax return for tax year 2014, and he also failed to disclose to the IRS that he had received tens of thousands of dollars from the SBA.
In December 2014, BizCapital sent all loan, including the numerous fraudulent A Plus Training and RB Packaging invoices draw information to the City of Jacksonville. That loan information was relied upon by the COJ to wire $210,549.99 in tax-payer funded grant money to BizCapital for the intended use of Basic Products. Before the money was sent to BizCapital, neither Katrina Brown nor Reginald Brown informed BizCapital or the city that Basic Products had fraudulently obtained loan payments to Reginald Brown’s shell companies (A Plus Training and RB Packaging). Reginald Brown was serving on the Jacksonville City Council when he facilitated fraudulently obtaining the $210,549.99 from the City of Jacksonville. Neither Katrina Brown nor Reginald Brown ever repaid those funds.
After BizCapital informed Katrina Brown that the SBA loan was in default status in January 2015, she then attempted to obtain two bank loans, in 2015 and 2016, by submitting doctored and false bank statements to loan brokers, seeking loans from WebBank to infuse cash into her family’s businesses. Instead of providing the actual bank statements of the businesses, Katrina Brown falsified the businesses’ bank statements in an attempt to make it appear to the lender that the businesses were credit worthy, when in fact they were not.
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Katrina Brown and Reginald Brown chose to prioritize their greed at the expense of the taxpayers, and the FBI will continue working with our law enforcement partners to hold accountable anyone who uses illegal means and criminal behavior to advance their personal agendas.”
“Left unchecked, greed can be a dangerous motivator. Katrina Brown and Reginald Brown made conscious decisions to deceive and benefit personally at the expense of the citizens of Jacksonville,” stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Reginald Brown further exposed his greed by failing to report his ill-gotten gains on his tax returns. We are committed to the collaborative effort to combat fraud and to prosecute those who take advantage of others for personal gain.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Tysen Duva and Michael J. Coolican.
Trenton man pleads guilty to aiding illegal purchase of firearms connected to the killing of Dayton DEA task force officerRead the Press Release
DAYTON – Arland Mills, 42, pleaded guilty in U.S. District Court today to hiring a man to illegally purchase firearms for him.
As part of his scheme, Mills obtained multiple firearms, three of which were later recovered during the execution of a search warrant on Ruskin Road in Dayton where Dayton Police Detective and DEA Task Force Officer Jorge Del Rio was shot on Nov. 4, 2019.
Delano Wells, 50, of Trenton, purchased the firearms at a licensed firearms dealer in Middletown on behalf of Mills. Wells was charged by criminal complaint on Nov. 5, 2019, with making false statements on a federal firearms form. Wells lied on ATF Form 4473 by indicating “yes” he was purchasing the firearm for himself and not for anyone else.
Once Wells purchased the firearms, he would provide them to Mills. Mills then either paid Wells a stipend in addition to the cost of the gun, or he forgave a portion of the debt owed to him by Wells.
Wells purchased more than eight firearms in this manner on behalf of Mills, along with several firearm lower receivers.
Mills will be forfeiting 28 firearms, which were seized by the government from Mills as part of this case.
Aiding and abetting the making of a false statement in connection with the acquisition of a firearm is a federal crime punishable by up to 10 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, U.S. Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Dayton Police Chief Richard S. Biehl; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Chris Hoffman, Special in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt are representing the United States in this case.
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Towing Company Owner Pleads Guilty to Tax Fraud and Evading Cash Transaction ReportingRead the Press Release
BOSTON – The owner of a Revere towing company pleaded guilty yesterday to engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million.
Gennaro Angiulo, 49, of Nahant and Saugus, pleaded guilty to one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for March 2, 2021.
For tax years 2014 through at least 2017, Angiulo paid a portion of the wages to employees of his company, GJ Towing, in cash “under the table.” In doing so, Angiulo did not collect, account for or pay over to the IRS required withholding and FICA taxes. The cash payments to employees were funded, at least in part, by cashing checks from clients of GJ Towing and other third parties in groups totaling not more than $10,000 in a single day.
The charge of willful failure to collect and pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of evading cash transaction reporting requirements provides for a sentence of up to 10 years in prison, up to five years of supervised release, a fine of $500,000 and forfeiture. Angiulo is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Topeka Man Sentenced for Driving Getaway CarRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to five years in federal prison for driving a getaway car during a robbery, U.S. Attorney Stephen McAllister said.
Justin Alexander McClelland, 33, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery. In his plea, McClelland admitted he drove a co-defendant to a Kentucky Fried Chicken restaurant where the co-defendant committed the robbery. Then McClelland drove the co-defendant away from the robbery.
Co-defendant Joshua Musgraves, 27, Topeka, Kan., pleaded guilty to robbery and is set for sentencing Jan. 25.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Supervisor at Fairfield Post Office Pleads Guilty to Stealing Cash from MailRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, announced that JESSICA GILES, 37, of West Haven, waived her right to be indicted and pleaded guilty today to theft of mail by a postal employee.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Sarah A.L. Merriam occurred via videoconference.
According to court documents and statements made in court, between October 2019 and May 2020, while she was employed as a supervisor at the U.S. Post Office in Fairfield, Giles used the flashlight feature on her phone to examine the content of various envelopes that had been placed in the mail. When she believed that an envelope contained U.S. currency, she opened the envelope, stole the cash that was found inside and, on multiple occasions, tore up and disposed of the envelope.
Giles’ illegal conduct was recorded by video surveillance at the Fairfield post office.
Giles is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 4, 2021, at which time she faces a maximum term of imprisonment of five years.
Giles is released pending sentencing.
This investigation is being conducted by the U.S. Postal Service Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
U.S. Attorney Durham encouraged individuals who believe they are a victim of theft related to this case to file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint.
St. Thomas Woman Arrested for Harboring and Importing Multiple Aliens for ProstitutionRead the Press Release
St. Thomas, USVI – United States Attorney for the District of the Virgin Islands Gretchen C.F. Shappert announced that a complaint has been filed charging Ramona Rivera Luna with alien harboring and importation of aliens for immoral purposes.
According to court documents filed in the case, Ramona Rivera Luna, a citizen of the Dominican Republic, was arrested on Friday, October 30, 2020. Earlier that day, federal agents executed a search warrant at The Embers Guest House, which the defendant owns and operated for over 15 years. Federal agents discovered seven female aliens from the Dominican Republic and Venezuela whom the defendant is alleged to have smuggled into St. Thomas by others, after having lured the females to work for her with the false offer of legitimate bartending and server jobs. Once the women arrived in St. Thomas, they were forced to engage in commercial sex acts, with the proceeds used to pay off their respective smuggling debts, which ranged from $8,000 to $15,000, and to pay the defendant $200 a week for rent. The women had to obtain permission and pay to leave the premises for any reason, including merely running errands such as to the grocery store, paying a $150 exit fee. Court documents allege that the defendant maintained her control over the women with threats of possible violence and near constant surveillance—the premises were equipped with video cameras, all of which were connected to a DVR found in the defendant’s bedroom.
This case is being investigated by Homeland Security Investigations, with assistance from the Federal Bureau of Investigation, the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Meredith Edwards.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
St. Thomas Cyril E. King Airport Traveler Sentenced for Undeclared Firearm in LuggageRead the Press Release
St. Thomas, USVI – Wayne Smith was sentenced today on his conviction for causing a firearm to be present in a federal facility, United States Attorney Gretchen C.F. Shappert announced.
Smith previously plead guilty to the charge on June 24, 2020. In his plea agreement, he admitted that, on March 21, 2020, at the Cyril E. King airport, he was a ticketed passenger on a Jet Blue Airline flight and checked luggage in his son’s name that contained a Ruger LCP pistol and an ammunition magazine. Although he was aware that the luggage contained the firearm and ammunition magazine, he did not notify Jet Blue Airlines or the Transportation Safety Administration (TSA) that the luggage contained a firearm. The Transportation Security Administration discovered the firearm at the federal security checkpoint.
District Court Magistrate Judge Ruth Miller sentenced Smith to an 18 month term of probation and a $5,000 fine.
This case was investigated by Homeland Security Investigations, Customs and Border Protection, and the Transportation Security Administration. It was prosecuted by Assistant United States Attorney Adam Sleeper.
Sex Offender Who Fled with Girlfriend to Mexico Admits Violating Sex Offender LawRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LESTER B. JOY, 40, formerly of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”) provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, on October 25, 2002, Joy was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree. For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender. On January 4, 2006, Joy was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor. For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.
On November 30, 2013, Joy was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey. However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut. He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required. On February 23, 2015, Joy pleaded guilty in the District of Connecticut to failing to register as a sex offender. On May 18, 2015, he was sentenced in Hartford federal court to 27 months of imprisonment, followed by five years of supervised release, for that offense.
In January 2017, after he was released from federal prison, Joy failed to report to parole in New Jersey and failed to seek permission to change his address or advise New Jersey of his new address Connecticut. He also failed to comply with treatment requirements of his federal supervised release. In April 2017, Joy was sentenced to an additional seven months of federal imprisonment for violating the conditions of his supervised release. He was released from federal custody in August 2017.
On February 17, 2019, Joy’s girlfriend, who did not have physical or legal custody of her three minor children, participated in a Department of Children and Families’ supervised visit with the children at a restaurant in Waterbury. During the visit, Joy’s girlfriend was given permission to take the children to the restroom. Instead, Joy’s girlfriend took her children out the back door of the restaurant into a waiting vehicle determined to have been used by Joy in the past.
On March 7, 2019, Joy, his girlfriend and her three children were located by Mexican law enforcement authorities in Mazatlán, Mexico, and Joy and his girlfriend were arrested. Joy had failed to provide information to the Connecticut Sex Offender Registry, as required by SORNA, about his travel to Mexico.
Joy has been detained since his arrest.
Judge Underhill scheduled sentencing for January 26, 2021, at which time Joy faces a maximum term of imprisonment of 10 years.
On October 29, 2020, Joy pleaded guilty in Waterbury Superior Court to three counts of risk of injury, and was sentenced to three years of incarceration followed by seven years of special parole.
This matter is being investigated by the U.S. Marshals Service, Federal Bureau of Investigation and Waterbury Police Department, with the assistance of Mexican law enforcement authorities. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater and Nancy V. Gifford.
Robeson County Man Pled Guilty to Illegal Gambling ChargesRead the Press Release
RALEIGH – On November 2, 2020 Keaton Chamers Oxendine, age 26, of Robeson County, pled guilty to aiding and abetting an illegal gambling business in violation of Title 18, United States Code, Sections 1955 and 2.
According to the indictment, from in or around 2018, and continuing up to on or about July 23, 2018, Oxendine did unlawfully conspire with others to conduct an illegal gambling business involving video gambling devices and slot machines, in violation of the laws of the State of North Carolina, to wit, N.C. Gen. Stat. § 14‑306.4 (sweepstakes through entertaining display), § 14‑306.1A (video gaming machines), and § 14-292 (gambling). The illegal gambling business allegedly managed by Oxendine involved five or more persons, remained in substantially continuous operation for a period in excess of thirty days, and had a gross revenue exceeding $2,000.00 in any single day.
Oxendine faces a maximum penalty of 5 years imprisonment and a $250,000 fine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. Department of Homeland Security, North Carolina Alcohol Law Enforcement (NC ALE), and the Robeson County Sheriff’s Office are investigating the case and Assistant U.S. Attorney Ethan A. Ontjes is prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Retired Lawyer Sentenced to 24 Months Imprisonment for Tax EvasionRead the Press Release
PORTLAND, Ore. – On November 2, 2020, retired attorney Bruce L. Lamon, age 66, of Hillsboro, Oregon, was sentenced to 24 months in federal prison and 3 years supervised release following his April plea of guilty to evading payment of his taxes for calendar years 2008 through 2013. Lamon was also ordered to pay $744,339 in back taxes to the IRS.
“Tax cheats steal from all of us” said United States Attorney Billy J. Williams. “This defendant chose greed over paying his taxes. Thanks to the excellent work of the IRS, this disgraced lawyer was caught and will now serve time.”
Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii, for 30 years. Lamon retired in 2012 and moved to Hillsboro. Between November 2012 and December 2015, Lamon committed numerous affirmative acts to evade his tax obligations. These included titling vehicles in his former spouse’s name and purchasing three rental properties using an LLC registered in Hawaii to conceal these assets from the IRS.
After he was indicted in October 2018, Lamon failed to appear for his arraignment. He bought a burner cell phone, rented a car, and hid from federal law enforcement officers for six weeks. IRS agents tracked Lamon’s movements and arrested him when he returned the rental car.
U.S. District Judge Marco A. Hernandez found that Lamon had used his skills as an attorney to create a sophisticated method for hiding his assets from the IRS. Judge Hernandez also found Lamon obstructed justice by not appearing for his arraignment and for staying on the run for six weeks.
Lamon recently sold his three rental properties and paid the IRS $465,000 from the sale proceeds.
This case was investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Ponzi Scheme Operator Pleads Guilty to Securities FraudRead the Press Release
A McKinney man who conned investors out of more than $13 million has pleaded guilty to securities fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Patrick O. Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – was charged in June 2018 and pleaded guilty via videoteleconference Tuesday morning.
“This defendant repeatedly lied about his funds’ performance, inducing investors – including several retirees – to turn over considerable sums of money that he then squandered. The Northern District of Texas is committed to investigating and prosecuting financial fraud," said U.S. Attorney Erin Nealy Cox.
In plea papers, Mr. Howard, 49, admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece.
His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.” However, instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their earnings quarterly out of the investments of later investors, rather than out of the earnings of the fund.
Mr. Howard falsely represented himself as a registered investment advisor and claimed his companies saw 20% annual earnings. Promising that investors could not possibly lose money due to insurance that offset poor performance, the defendant induced at least one investor to turn over his entire retirement savings to the fund.
Mr. Howard now faces up to five years in federal prison. His sentencing has been set for March 4, 2021.
The Federal Bureau of Investigation’s Dallas Field Office and the Postal Inspection Service conducted the investigation, with a parallel investigation conducted by the U.S. Securities & Exchange Commission. Assistant U.S. Attorney Andrew Wirmani is prosecuting the criminal case.
Orlando Man Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Steven Rembert (48, Orange County) with disaster assistance fraud related to Hurricane Irma. If convicted, Rembert faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States.
According to the
indictment , in September 2017, Rembert falsified records concerning his primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from the Orange County Sheriff’s Office and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Terry B. Livanos.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll-free at (866) 720-5721 or complete the online complaint form by visiting www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
Opelousas Man Sentenced for Arson of Three African-American ChurchesRead the Press Release
LAFAYETTE, La. – Holden James Matthews, 23, of Opelousas, Louisiana, was sentenced today to 300 months in prison, followed by 3 years of supervised release, for intentionally setting fire to three African-American Baptist churches because of the religious character of those buildings, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Robert R. Summerhays sentenced Matthews on three counts of violating the Church Arson Prevention Act, 18 U.S.C. § 247(a)(1)—one count for each church—as well as one count of using fire to commit a federal felony, in violation of 18 U.S.C. § 844(h). The fires, which Matthews set over a ten-day period in March and April of 2019, completely destroyed each of the church buildings. Matthews was also ordered to pay restitution in the amount of $590,246 to St. Mary Missionary Baptist Church, $970,213.30 to Greater Union Baptist Church, and $1,100,000 to Mt. Pleasant Missionary Baptist Church.
Matthews pled guilty to these charges on February 10, 2020. At his guilty plea hearing, Matthews admitted that between March 26 and April 4, 2019, he intentionally set fire to three Baptist churches with predominantly African-American congregations in the Opelousas, Louisiana area. First, on March 26, 2019, Matthews set fire to St. Mary Missionary Baptist Church in Port Barre, Louisiana. Next, on April 2, 2019, Matthews set fire to the Greater Union Baptist Church, in Opelousas, Louisiana. Then, on April 4, 2019, Matthews set fire to the Mt. Pleasant Missionary Baptist Church in Opelousas, Louisiana. Matthews admitted to setting the fires because of the religious character of these buildings, in an effort to raise his profile as a “Black Metal” musician by copying similar crimes committed in Norway in the 1990s. Matthews further admitted that, after setting the third fire, he posted photographs and videos on Facebook that showed the first two churches burning. Matthews admitted that he had taken these photographs and videos in real time on his cell phone, as he watched those churches burn, and that he had posted them to Facebook in an effort to promote himself in the Black Metal community.
“The members of St. Mary Missionary Baptist Church, Greater Union Baptist Church, and Mt. Pleasant Missionary Baptist Church are the ones who have suffered the most from these heinous crimes and have lost not only physical buildings, but sentimental items that cannot be replaced,” said Acting United States Attorney Alexander C. Van Hook of the Western District of Louisiana. “The sentence handed down today will not bring their churches back but should send a clear message that there is a high price to pay for this type of destruction and violence and these type of crimes will not be tolerated by this office.”
“These churches trace their origins to the post-Civil War Reconstruction period and, for generations, were a place for predominantly African American Christians to gather, pray, worship, and celebrate their faith,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The churches survived for nearly 150 years but did not survive this defendant’s warped act of hatred. I extend my sympathy to the victims of this defendant’s arson spree, the congregants of St. Mary Baptist Church, Greater Union Baptist Church, and Mt. Pleasant Baptist Church. The Justice Department will continue vigorously to protect their right to worship and live in peace. The Justice Department stands against these acts of hate and the sentence handed down today reflects that. We will continue to protect the civil right of Americans to freedom of worship without fear of persecution.”
“ATF, working alongside our law enforcement partners, was able to bring our expertise and resources to investigate the arsons that threatened the well-being of St. Landry Parish,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “That collaborative effort led to a successful investigation and today’s sentencing of Holden Matthews, and allows the residents of St. Landry Parish to continue to worship without fear of an arsonist in their midst.”
“A cornerstone of our Constitution is the Freedom of Religion and the right to practice your faith freely and without intimidation. Mr. Matthews’ acts of threatening and intimidating an entire community by setting fire to three historically African American churches was unspeakable. We hope that today’s sentencing brings a level of comfort and satisfaction that justice has prevailed for the parishioners of St. Mary Baptist Church, Greater Union Baptist Church, and Mount Pleasant Baptist Church as well as for all of the citizens of St. Landry Parish affected by these heinous acts,” stated FBI New Orleans Special Agent in Charge Bryan Vorndran.
This case was investigated by the ATF’s National Response Team, Lafayette Satellite Office of the ATF’s New Orleans Field Division, Lafayette Resident Agency of the FBI’s New Orleans Field Office, Louisiana Office of State Fire Marshal, Louisiana State Police, Louisiana Bureau of Investigation’s Cyber Crimes Unit, St. Landry Parish Fire Department, and the St. Landry Parish Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney J. Luke Walker, of the U.S. Attorney’s Office for the Western District of Louisiana, and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
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Ohio man admits to selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Quaison Maurice Harris, of Willoughby Hills, Ohio, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Harris, also known as “Action,” age 35, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Harris admitted to selling cocaine near Belle Isle Playground on Wheeling Island in February 2020.
Harris faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
North Huntingdon Man Sentenced in SCO Drug CaseRead the Press Release
PITTSBURGH, PA - A Western Pennsylvania resident has been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of twelve months plus one day of imprisonment, and three years of supervised release, on Gregory Luptak, 52, of North Huntingdon, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Law enforcement identified several individuals who were illegally distributing controlled substances in the Greater Pittsburgh Region, as members of a neighborhood-based street gang, self-titled "SCO" and whose leader was identified as Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. As a result of this investigation, Luptak, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that intercepted communications confirmed that Luptak obtained large quantities of heroin, which he distributed to others in and around the North Huntingdon area. Luptak informed the Court that he would sell the heroin to his drug customers at a mark-up so that he could buy more heroin for himself. On at least one occasion, law enforcement observed Luptak meet McFadden at a stash house location on Seddon Avenue in Braddock to conduct a drug transaction.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Moore. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania
Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Nebraska Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Alliance, Nebraska, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on October 30, 2020, by U.S. District Judge Jeffrey L. Viken.
Brian Hinman, age 38, was sentenced to 5 years in federal prison, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately November 2018 to December 2018, Hinman obtained methamphetamine, which he then distributed in South Dakota. A traffic stop of Hinman by Nebraska State Patrol, in December 2018, recovered 42 grams of methamphetamine.
This case was investigated by the Bureau of Indian Affairs, Division of Drug Enforcement, SD Division of Criminal Investigation, Badlands Safe Trails Drug Task Force, and the Nebraska State Highway Patrol.
Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Hinman was immediately returned to the custody of the U.S. Marshals Service.
Nashua Man Pleads Guilty to Manufacturing Child PornographyRead the Press Release
CONCORD - Chad Francisco, 31, of Nashua, pleaded guilty in federal court to manufacturing child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a child endangerment investigation by the Nashua Police Department resulted in a criminal investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”). During the investigation, HSI obtained a federal search warrant for Francisco’s cellular phone, which revealed visual depictions of sexually explicit conduct involving two children under the age of 10 years old. Francisco created the visual depictions using his cellular phone and admitted to transmitting the photos to others through text messages.
Francisco is scheduled to be sentenced on February 16, 2021.
“Protecting children from abuse is among the highest priorities of law enforcement,” said U.S. Attorney Murray. “Those who exploit a child in order to create child pornography subject their victim to trauma that may have enduring consequences throughout the child’s lifetime. We work closely with our law enforcement partners to identify and prosecute those who harm children by manufacturing child pornography.”
”We’re gratified that a guilty plea has been achieved in this case, which involved not just the distribution but the creation of multiple disturbing images of child victims by this defendant,” said David Magdycz, acting Special Agent In Charge, Homeland Security Investigations, (HSI), Boston. “This case is testimony to the effectiveness of the close partnership that HSI and our law enforcement partners in the Nashua Police Department and the U.S. Attorney for New Hampshire have built and continue to strengthen in order to combat crimes against children in New Hampshire.”
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Milwaukee Man Sentenced to Ten Years in prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Milwaukee Man Sentenced to Ten Years in prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of Drug Trafficking
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on November 2, 2020, Maximino Vargas (age: 46) of Milwaukee, Wisconsin, was sentenced to a term of ten years in federal prison, followed by four years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1); and possession of firearms in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c).
According to court documents, between March and June 2019, Vargas sold a DEA confidential source high-purity amounts of methamphetamine on four occasions. The methamphetamine quantities ranged between approximately 28 grams and 168 grams. Laboratory testing later confirmed the methamphetamine ranged between 99% and 100% pure. On two other occasions during the same period, Vargas sold the confidential source approximately two ounces of cocaine. Vargas conducted these drug transaction near his Milwaukee residence, which was located in close proximity to the Alexander Mitchell Integrated Arts School – a public elementary and middle school and designated drug-free zone. On June 17, 2019, law-enforcement authorities executed a search warrant at Mr. Vargas’s Milwaukee residence.
The officers found several items consistent with drug-trafficking activity, including approximately 1.45 kilograms (3.2 pounds) of methamphetamine, 205 grams of cocaine, 43 grams of cocaine, a Smith & Wesson 9mm semi-automatic pistol, a Schryver model S-15 5.56 caliber rifle, a Glock 42 .380 caliber semi-automatic pistol, digital scales, multiple cellular phones, and $21,186 in U.S. currency (a search of the same residence in January 2019 yielded controlled substances, firearms, and $48,000 in U.S. currency as well).
In pronouncing sentence, U.S. District Judge Lynn Adelman noted the serious nature of the offense and the history and characteristics of the defendant.
The case was investigated by the North Central HIDTA Office and was prosecuted by Assistant United States Attorney Robert J. Brady, Jr.
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Meridian Man Sentenced to over 27 Years in Prison for Conspiracy and Cocaine TraffickingRead the Press Release
Jackson, Miss. – Daniel Robert, age 43, of Meridian, Mississippi, was sentenced today by Chief U.S. District Judge Daniel P. Jordan, III to serve 330 months in federal prison, followed by 5 years of supervised release, for conspiracy and narcotics trafficking, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. Robert was also ordered to pay a $1500 fine.
On January 23, 2020, after a three-day jury trial in U.S. District Court, Robert was found guilty of two counts of conspiracy to possess cocaine with intent to distribute, one count of possession of cocaine with intent to distribute and one count of attempted possession of cocaine with intent to distribute. Robert was originally indicted by a federal grand jury on September 3, 2009.
From 2007 through 2009, Robert was being investigated by the FBI along with several other individuals. The FBI’s investigation showed that Robert directed the sale of multiple kilograms of cocaine and took in tens of thousands of dollars. Robert organized the transport of cocaine from Houston, Texas, and sold the narcotics in Lauderdale County, Mississippi. Robert’s criminal organization involved numerous people and utilized vehicles with custom built hidden compartments for transportation of drugs and money.
An undercover operation specifically showed that Robert received $16,000 in exchange for over a kilogram of cocaine. Robert used two different individuals, who were both charged as co-conspirators, to receive money and distribute cocaine.
On June 26, 2009, Robert, along with another co-conspirator, were stopped in Vidor, Texas, driving a truck with a hidden compartment containing almost 8 kilograms of cocaine. Robert was released from custody in Vidor, Texas, and traveled back to Mississippi. With the help of his girlfriend, Robert attempted to reclaim his cocaine, which he believed had not been discovered in the hidden compartment.
Robert believed his girlfriend was arranging to purchase the truck from insurance adjusters who had taken possession of the truck on the basis that it was reported stolen. The insurance adjusters were actually undercover FBI agents with the consent of the insurance company that actually owned the truck. Video recordings and pictures were taken of Robert and his girlfriend when they came to the insurance “sale.” After “purchasing” the truck, Robert returned to Meridian, and proceeded to attempt to recover the cocaine he thought was still inside the hidden compartment.
FBI and SWAT officers descended on the location and arrested most of the organization, but Robert was able to elude capture by fleeing into a nearby field. Robert remained at large for a decade before he was taken into custody by the FBI.
Robert has an additional pending charge for witness tampering in the Federal District Court for the Southern District of Mississippi. Robert also faces charges in Illinois for narcotics distribution and witness tampering.
The OCDETF operation is a result of a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, with assistance from the United States Marshal’s Service.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was prosecuted by Assistant United States Attorneys Erin O. Chalk and Chet Kirkham.
Member of North Shore Chapter of Latin Kings Sentenced for Drug Conspiracy ChargesRead the Press Release
BOSTON – A member of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for drug conspiracy charges.
Henry Caribe a/k/a “King 40Cal,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to eight months in prison and three years of supervised release. In July 2020, Caribe pleaded guilty to one count of conspiracy to distribute crack cocaine.
Caribe admitted that on seven occasions from January to March 2015, he and a co-conspirator distributed 78 grams of cocaine base to a cooperating witness during audio/video recorded transactions. At the time, Caribe was a member of the North Shore chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury in Boston returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Caribe is the third defendant to be sentenced in this case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Man Sentenced for Role in International Drug Distribution ConspiracyRead the Press Release
RICHMOND, Va. – A Colorado man was sentenced today to 16 months in prison for participating in an international conspiracy to traffic pharmaceutical drugs into the United States and distribute those drugs throughout the country.
According to court documents, between October 2016 and November 2019, Shaun Michael Kohut, 36, received bulk shipments of pills sent into the United States from abroad by foreign-based actors. Following those actors’ instructions, Kohut would then mail smaller shipments of pills to buyers across the United States and receive payments for his services by accepting money remittances from customers via Western Union and other payment-processing systems.
According to court documents, Kohut is estimated to have been involved in the trafficking or attempted trafficking of close to 400,000 pills between October 2016 and November 2019, including substantial quantities of the Schedule IV opioid tramadol. Kohut came to the attention of federal law enforcement when a buyer in the Eastern District of Virginia was instructed to remit payment to Kohut for the unlawful purchase of alprazolam, also known as Xanax.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorneys Kevin Elliker and Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-159.
Man Sentenced for Federal Hate CrimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Stuart Kurt Rollins, 59, of Barre City, Vermont, was sentenced to time served and three years of supervised release for a violation of 42 U.S.C. § 3631, a federal hate crime statute. Rollins has been detained since Nov. 27, 2019, and thus has served nearly a year in prison.
According to court documents filed in connection with Rollins’s guilty plea, on July 29, 2019, Rollins intimidated and harassed his neighbors, members of a Hispanic family, including two children, because of their race and national origin and because they occupied a home on his street. Rollins threatened to burn down the family’s home while they were inside and threatened to set fire to a member of the family. Rollins shouted racial and ethnic slurs at the family, yelled at them to “go back to Mexico,” and yelled that “you Mexicans don’t belong on this street.” Rollins warned the family that he would do “whatever it takes to get you off this street.” Rollins also exposed his genitals and buttocks in front of the family, including one of the children. Finally, Rollins smashed the family’s mailbox and smashed glass on their lawn during the incident.
“Violence in the form of federal hate crimes is antithetical to our core values of freedom, unity and equality”, stated U.S. Attorney for the District of Vermont Christina E. Nolan. “The defendant’s threats here made a Vermont family feel unsafe in their own home, just because of their race and national origin. As this case shows, Vermont is unfortunately not immune to hate-motivated acts. Our office will do all we can to work with our partners to end these vicious acts and, where they violate federal law, will not hesitate to take action.”
“Investigating hate crimes is one of the FBI’s highest priorities,” stated Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “No individual should live in fear because of someone’s intolerance and hatred. We will continue to work with our law enforcement partners to protect the rights of all Americans.”
This case was investigated by the FBI, Albany Division, Burlington Resident Agency, with assistance from the Barre City Police Department. Assistant U.S. Attorney Jules Torti of the District of Vermont and Trial Attorney Olimpia Michel of the Department of Justice’s Civil Rights Division prosecuted this case. Steven Barth from the Office of the Public Defender for the District of Vermont represented Mr. Rollins.
Man Pleads Guilty to Possessing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to possession of child pornography.
According to court documents, Zachary Clouse, 27, was originally identified by law enforcement in November 2016 when Canadian authorities found Clouse posting images of minors engaging in sexually explicit conduct to an Internet bulletin board. Clouse, aka Boylover9, asked for violent videos of children being sexually abused from other members of the forum, and posted the same. Later, in 2018, a Virginia Beach resident answered a Craigslist advertisement Clouse posted looking for a “sick perverted boyfriend.” Clouse texted the resident about trying to kidnap a child, so the resident reported Clouse to the Virginia Beach Police Department. Special Agents with Homeland Security Investigations interviewed Clouse, and he admitted to the Internet and Craigslist conduct. Law enforcement also searched Clouse’s cell phones and found additional images of minors engaging in sexually explicit conduct.
Clouse faces a maximum penalty of 20 years in prison when sentenced on March 16, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case 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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-13.
Man Pleads Guilty to Brandishing a Firearm During RobberiesRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man pleaded guilty today to brandishing a firearm during separate robberies of two banks and a shoe store in Northern Virginia in 2018 and 2019.
According to court documents, Freddie Lee McRae, 34, committed a series of robberies in 2018 and 2019. On Nov. 13, 2018, McRae robbed a Wells Fargo branch located in Alexandria. McRae handed a teller a note that demanded money, indicated he had a firearm, and threatened to “[k]ill [a]ll [b]ankers” if the teller did not comply. McRae pointed a firearm at two tellers before fleeing with approximately $8,750 in cash.
On Dec. 10, 2018, McRae robbed a Burke & Herbert branch located in Alexandria. McRae approached a teller, who asked if he wanted to make a deposit. McRae responded, “gimmie your money,” before lifting up his shirt and pulling a pistol from his waistband, which he pointed at the teller. As the teller gathered money, McRae racked the slide on the pistol and demanded all large bills. McRae fled with approximately $1,366 in cash.
On April 21, 2019, McRae robbed the Legend Kicks & Apparel store located in Arlington. McRae brandished a pistol and demanded that two store employees empty their pockets, which they did. McRae then ordered the employees to lie on the floor before taking approximately $2,160 in cash that belonged to the store. McRae fled the store on foot and the area by vehicle. When a law enforcement officer tried to pull over the vehicle, McRae stopped only briefly before leading law enforcement officers on a vehicle pursuit on the George Washington Memorial Parkway. McRae ultimately jumped out of his moving vehicle prior to it crashing and sinking into the Potomac River. McRae tried to flee law enforcement by jumping into the river, but officers pulled him out and placed him under arrest.
McRae also admitted to robbing a Bank of America branch in Springfield on Oct. 27, 2018; a BB&T branch located in Alexandria on Dec. 20, 2018; and a Capital One branch located in Bowie, Maryland, on Jan. 2, 2019. McRae further admitted to attempting to rob a Capital One branch located in Arlington on Feb. 11, 2019, and to obstructing justice by instructing an individual to destroy his cell phone and another individual to delete communications within a cell phone.
The bank robberies that McRae admitted to committing were investigated by the FBI as part of the “Beltway Bank Bandit” series.
McRae pleaded guilty to three counts of brandishing a firearm during and in relation to a crime of violence. He faces up to life in prison and a mandatory minimum of 21 years in prison when sentenced on Feb. 23, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
This case was investigated by the FBI, Washington Field Office’s Northern Virginia Violent Crime Task Force which is composed of FBI Agents along with Detectives from Northern Virginia law enforcement agencies. Significant investigative assistance in this case was provided by the Arlington County Police and the Fairfax County Police. The task force is charged with identifying, investigating and disrupting the most egregious and violent criminal actors within Northern Virginia.
Assistant U.S. Attorneys Natasha Smalky and Alexander E. Blanchard are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-268.
Lake Charles Man Sentenced on Child Pornography ChargesRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Damon Lechtenberg, 47, of Lake Charles, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays for production of child pornography. Lechtenberg was sentenced to 180 months (15 years) in prison followed by 20 years of supervised release. Lechtenberg pleaded guilty on April 9, 2020.
According to information presented in court, it was reported to law enforcement in December 2019, that Lechtenberg had been filming a minor female using a hidden camera in the minor’s bedroom. Law enforcement officers obtained a search warrant of the minor’s bedroom and found the hidden camera. Lechtenberg admitted to filming the minor female and further investigation revealed that he had numerous videos containing images of her in sexually explicit poses.
The U.S. Department of Homeland Security-Homeland Security Investigations conducted the investigation and Assistant U.S. Attorney J. Luke Walker prosecuted the case.
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Kenton County Man Sentenced to 150 Months for Armed Drug TraffickingRead the Press Release
COVINGTON, Ky. - A Bromley, Ky., man, Brandon Daunt, 33, was sentenced to 150 months in federal prison on Tuesday, by U.S. District Judge David Bunning, for possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking.
According to Daunt’s plea agreement, on February 13, 2020, law enforcement arrested him on an existing warrant, after he exited his apartment. Upon searching his backpack, they found 25.6 grams of methamphetamine, 7.1 grams of crack cocaine, 5.3 grams of fentanyl, 184.8 grams of marijuana, two cell phones, and $1,157 in cash. Law enforcement then searched his apartment, finding three firearms, which Daunt admitted he possessed to protect himself, his drugs, and his proceeds, and later admitted acquiring in exchange for drugs.
Daunt pleaded guilty in July 2020.
Under federal law, Daunt must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; and Christopher Conners, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the DEA and Northern Kentucky Drug Strike Force. The United States was represented by Assistant U.S. Attorney Wade Napier.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Duncan coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Justice Department Honors Law Enforcement Officers and Deputies in Fourth Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Attorney General William P. Barr and Justice Department leadership today announced the recipients of the Fourth Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 23 law enforcement officers and deputies from 12 jurisdictions across the country.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. This year, the department received 214 nominations recognizing a total of 355 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
“There is no career nobler than that of a police officer, and the 23 officers we honor this year demonstrate that clearly,” said Attorney General William P. Barr. “These individuals are distinguished in their service for field operations and criminal investigations – from investigating homicides to drug trafficking to sexual exploitation and assault – to making positive change in their communities through innovative outreach to local residents. Their actions are a testament to what law enforcement officers contribute to our nation each day, keeping us safe from violent crime and building more trusting communities, and they are deserving of our collective thanks. I am pleased to honor these 23 officers for their distinguished service in policing.”
The Department of Justice works closely with local law enforcement and strives to be a ready resource for them. The Attorney General’s Award for Distinguished Service in Policing is just one more way the department can show its continued commitment to the profession and honor the men and women who so bravely serve it.
Attorney General Awards for Distinguished Service in Policing 2020
CRIMINAL INVESTIGATIONS
Detective Kenneth Williams, Metropolitan Police Department (Washington, DC)
Detective Kenneth Williams, with the Metropolitan Police Department in Washington, DC, was determined to pursue a cold case file to bring a serial rapist and murderer to justice. For over twenty years, Detective Williams followed leads and pursued the case. His efforts ultimately led him to a town in South Carolina, where a suspect was taken into custody and extradited to Washington, DC.
Special Agent Ryan Kedley, Iowa Department of Public Safety (Iowa)
Special Agent Ryan Kedley orchestrated and oversaw one of the largest sexual exploitation investigations in Iowa state history. Kedley’s team discovered that, for almost 20 years, a local youth basketball coach had been secretly amassing thousands of videos and photos of his players and their friends. Investigators determined the coach had sexually assaulted at least 15 young men and victimized another 400, though the actual numbers are suspected to be much higher. The former coach is now serving a 180-year sentence in prison – the longest sentence possible for the charges he faced.
Detective Bryan Bennett, Detective Ty Deichert, Detective Fred Longobricco, and Detective Ian Ranshaw, Thornton Police Department (Colorado)
These four Thornton (CO) detectives diligently pursued a high-level Walmart credit card scheme that eventually led the detectives to partner with the F.B.I., the U.S. Postal Service, the Department of Homeland Security, and the State Department. Senior citizens in particular were targeted by this confidence scheme, who unknowingly became the source of millions of dollars of fraudulently obtained funds – funds that were eventually laundered and sold as gift cards overseas. The detectives conducted numerous surveillance operations, covertly went through the suspects’ trash on multiple occasions, spent days reassembling shredded gift cards, and ultimately followed their leads to East Asia. So far, two defendants have now pleaded guilty, and 25 other defendants are being monitored.
Detective Ryan Flood, Officer Vance Henning, Jr., and Investigator Denny Vokes, Fond du Lac County Sheriff’s Office (Wisconsin), Fond du Lac Police Department (Wisconsin)
These dedicated individuals sought to stem an increase in shootings, drug trafficking, illegal guns, and gang activity; and their work achieved just that, with illegal drugs, guns, and violent criminals removed from city streets and community trust revived. Forming a coalition that included agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office for the Eastern District of Wisconsin, over 50 active, armed participants in the illegal drug trade were identified, many with criminal gang ties. The investigation also led to a major firearms straw purchasing scheme. Hundreds of hours of surveillance, interviews with numerous suspects and dozens of warrant executions have led to the arrest of 35 suspects, with many more arrests and indictments still pending. These cases also involved the disruption of networks distributing cocaine, heroin, and methamphetamine, including the largest single heroin seizure in the history of Fond du Lac.
FIELD OPERATIONS
Officer Sherrelle Mitchell and Officer Felix Rivera, Philadelphia Police Department (Pennsylvania)
Sometimes lost in the narrative of American policing are the lives that officers save. This particular drama unfolded on an August night in Philadelphia, when Officer Felix Rivera was monitoring a large party. When he heard multiple gunshots Officer Rivera first radioed for help, and then rushed toward the shots. Officer Sherrelle Mitchell quickly sped to the scene. The officers found a gunshot victim bleeding profusely. After applying a tourniquet, the officers placed the victim in their vehicle and rushed to the hospital. On the way, the victim lost consciousness several times, and Officer Mitchell continued to perform CPR and chest compressions. The heroic actions of these officers saved a life that night.
Officer Natalie Eucce and Corporal Seay-Peter Floyd, Fayetteville Police Department (Arkansas)
In December 2019, in Fayetteville, Arkansas, an individual determined to assassinate law enforcement officers, and armed with 100 rounds of ammunition, approached a police car and fired 10 times, killing Officer Stephen Carr. Hearing the shots and seeing the suspect, Corporal Seay-Peter Floyd – with no regard for his personal safety – pursued the suspect and fired. Officer Natalie Eucce (Officer Carr’s partner) and Sergeant James Jennings joined Corporal Floyd in pursuing the suspect and fired as well. The suspect was pronounced dead on the scene. It is very likely more officers would have lost their lives that night, if it were not for the bravery of Corporal Floyd and Officer Eucce.
Sergeant Jason Thien, Curry County Sheriff’s Office (Oregon)
In Curry County, Oregon, Sergeant Jason Thien often works alone on his shift, where he services a 1,600-square mile county and more than eighty miles of the Pacific Coast Highway. Even so, he did not hesitate to give it his all when word came down of a widespread manhunt for a murder suspect, who was thought to be in Curry County. Working his contacts, combing property records, and using other investigative tools, he found his man. Thanks to Sergeant Thien’s dedicated efforts, he apprehended the subject, who will soon be facing charges.
INNOVATIONS IN COMMUNITY POLICING
Officer James Bryant, Detective Traves Humpherys, Officer Darling Mapes, Officer Strahinja Pavlovic, Detective David Shive, and Officer Luis Vidal, Las Vegas Metropolitan Police Department (Nevada)
The Bolden community had always been a challenge for police officers and it was very difficult to build trust with residents. Youth in the community also struggled, and the numbers showed poor academic records and low graduation rates. So when an area merchant wanted to create a free, fully accredited baseball league for youth, police officers jumped in to assist as coaches for the Bolden Little League (BLL). Just two years after it started, and as relationships between police officers and the children and their families strengthened, the league expanded to 14 teams and 186 children. The league focused on reducing violent crime by building trust and positively affecting the children and families involved; and the success was in the numbers, with the neighborhoods surrounding the park posting a 76 percent reduction in violent crime from 2018 to 2019.
Officer Philip Smith, Evansville Police Department (Indiana)
Officer Philip Smith is the symbol of community policing in Evansville, Indiana, where he serves as the special projects coordinator for the Evansville Police Department. His community outreach efforts have put a human face on the badge, and his efforts have encouraged the public to work with the police and the police to have an ally in the public. Smith runs the department’s Facebook page, which now has 45,000 subscribers – in a city of 117,000. His social media activity includes weekly videos celebrating different officers and community members, and photos of police and kids on department-sponsored trips to theme parks. He also helped create the department’s breast cancer awareness fundraiser, and established a program where salons and barbershops host officers for informal chats with their patrons. All this community outreach has meant that when the department now has to explain an officer involved shooting, or asks the public for help in recognizing a criminal, there is a community now pre-disposed to understand and work with the department more than ever before.
Officer Sally Landrum, Willingboro Police Department (New Jersey)
When the Willingboro Police Department named Officer Sally Landrum its inaugural Community Engagement Officer, she became the face of the department in her community. Her goal was to build trust and legitimacy by engaging residents of all backgrounds in positive interactions and she found a myriad of ways to do that. Officer Landrum dove into her new role with gusto, quickly earning the respect of local religious leaders and community organizations. Her initiatives include recruitment events; story times where police read to children at the local library; anti-drug programs in the schools; toiletry drives for the homeless; training on how to spot telephone scams and mail fraud for older adults; breast and prostate cancer awareness campaigns; food, coat, and toy drives; a resiliency program for officers in distress; and a community service diversion program for young offenders. Through these efforts, community residents now know they have a friend in the Willingboro Police Department, and both the department and the community are better for it.
Detective Archie Lidey, Grants Pass Department of Public Safety (Oregon)
When Josephine County, Oregon, suffered a funding crisis, Detective Archie Lidey zoomed into action. The situation was dire, with staffing reduced at the sheriff’s office and the jail, limiting the number of offenders that could be housed. Citations were issued to most criminal offenders instead of placing them under arrest. But Detective Lidey began a grassroots effort to find and maintain funding. As a founding member of Securing Our Safety (SOS), formed specifically to overcome the law enforcement–funding crisis, Detective Lidey organized a 5k race that grew to 700 participants in 2020. Lidey and SOS also raised over $60,000 to complete a study of local justice and law enforcement programs. They also formed a nonprofit called Grace Roots, to establish a residential treatment center for people with addictions; and he was key in establishing the Grants Pass Treatment Center, a methadone and suboxone treatment program for substance abuse addiction. Josephine County went from having no treatment facility to one that now sees more than 300 patients a day. And funding-wise, it has all paid off: since 2013, Detective has coordinated events and contributions that now total $324,000.
Joplin Man Pleads Guilty to Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man pleaded guilty in federal court today to his role in a drug-trafficking conspiracy that distributed at least 12 pounds of methamphetamine in the Joplin area, as well as to illegally possessing numerous firearms.
Mark E. Burdge, 50, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of conspiracy to distribute methamphetamine, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of distributing methamphetamine on premises where children are present or reside.
By pleading guilty today, Burdge admitted that he participated in a conspiracy to distribute methamphetamine from May 9, 2018, to July 18, 2019. Burdge imported at least 12 pounds (approximately 5.4 kilograms) of methamphetamine into southwest Missouri from a source in Oklahoma.
On May 9, 2018, investigators with the Ozarks Drug Enforcement Team executed a search warrant at Burdge’s residence. Officers seized a total of 71.96 grams of methamphetamine and approximately $20,550 from a bedroom in the residence. Officers also searched an outbuilding and seized six rifles, five shotguns, four pistols, a revolver, a .22-caliber Magnum derringer, and 4,000 rounds of assorted ammunition.
On July 18, 2019, investigators executed a search warrant at Burdge’s residence, where they encountered a 10-year-old child among a number of individuals at the residence. Officers seized a total of 159.66 grams of methamphetamine and $24,300.
Under the terms of today’s plea agreement, Burdge must forfeit to the government $44,850 seized by law enforcement as the proceeds of drug trafficking.
Under federal statutes, Burdge is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Ozarks Drug Enforcement Team, the FBI, and the Bureau of Alcohol., Tobacco, Firearms and Explosives.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Inglewood Women Plead Guilty to Running Half Million-Dollar Scheme that Improperly Billed Medi-Cal for Substance Abuse CounselingRead the Press Release
LOS ANGELES – An Inglewood woman and her mother-in-law, who both ran a South Los Angeles drug and alcohol abuse treatment program, each pleaded guilty today to a health care fraud charge for fraudulently submitting more than $500,000 in claims for services that did not qualify for reimbursement or were never provided.
Mesbel Mohamoud, 47, and her mother-in-law, Erlinda Abella, 66, also of Inglewood, pleaded guilty to one count of health care fraud in separate hearings before United States District Judge Philip S. Gutierrez.
Mohamoud was the owner and executive director of The New You Center Inc. (TNYC), located in the Vermont Knolls neighborhood of South Los Angeles. Abella, who co-founded TNYC with Mohamoud in 2005, was the company’s program director. TNYC had contracts to provide medically necessary substance abuse treatment services through the Drug Medi-Cal program to adults and teenagers in Los Angeles County.
According to Mohamoud’s and Abella’s plea agreements, from January 2009 to December 2015, TNYC submitted false and fraudulent bills for counseling sessions that were not conducted at all, were not conducted at authorized locations, or did not comply with Drug Medi-Cal regulations regarding the length of sessions or the number of clients.
Mohamoud and Abella also allegedly caused TNYC to bill for clients who did not have a substance abuse problem, to falsify documents related to services supposedly provided to clients, and to forge client signatures on documents such as sign-in sheets.
For example, in September 2013, TNYC submitted a fraudulent claim for Medi-Cal reimbursement in the amount of $62.15 for a three-hour counseling session for a client on August 17, 2013 – the same day when the client was hospitalized and did not receive any counseling from TNYC.
In court documents, Mohamoud further admitted she knew that among the acts Abella directed TNYC counselors to engage in included enrolling clients in TNYC’s substance abuse treatment program even if the clients had used drugs or alcohol only occasionally or even just once.
Mohamoud and Abella admitted that TNYC submitted approximately $527,313 in false and fraudulent claims for group and individual substance abuse counseling services and was paid $260,101 on those claims.
Judge Gutierrez scheduled a January 25, 2021 sentencing hearing for Abella and a February 8, 2021 sentencing hearing for Mohamoud, at which time each of them will face a statutory maximum sentence of 10 years in federal prison.
The FBI, the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse, and the U.S. Department of Health and Human Services, Office of Inspector General investigated this matter.
Assistant United States Attorney Cathy J. Ostiller of the Major Frauds Section is prosecuting this case.
Illinois-Based Charter School Management Company to Pay $4.5 Million to Settle Claims Relating to E-Rate ContractsRead the Press Release
Concept Schools, NFP, has agreed to pay $4.5 million as part of a civil settlement to resolve allegations that it violated the False Claims Act by engaging in non-competitive bidding practices in connection with the Federal Communications Commission’s (FCC) E-Rate Program, the Department of Justice announced today.
The E-Rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make internet access and internal networking more affordable for needy public schools and libraries.
“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do not engage in anticompetitive conduct,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “Government contractors and schools that seek to profit at the expense of taxpayers will face serious consequences.”
The United States alleged that Concept Schools, a charter school management company located in Des Plaines, Illinois, rigged the bidding for E-Rate contracts between 2009 and 2012 in favor of chosen technology vendors so that its network of charter schools located in several states, including Illinois, Ohio, and Indiana, selected the chosen vendors without a meaningful, fair and open bidding process. Additionally, the government alleged that Concept Schools’ chosen vendors provided equipment at higher prices than those approved by the FCC for equipment with the same functionality. The government also contended that Concept Schools failed to maintain sufficient control over equipment reimbursed by the FCC, some of which was discovered missing.
Contemporaneous with the civil settlement, Concept Schools has agreed to enter into a corporate compliance plan with the FCC.
“E-Rate contractors and schools receiving E-Rate funds must understand and know that actions that undermine the contracting process, such as conspiring to rig competitive bidding, will not be tolerated and will be investigated aggressively,” said David L. Hunt, Inspector General of the FCC.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the FCC Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Education Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Goldsboro Man Sentenced for Firearm OffenseRead the Press Release
WILMINGTON, N.C. – A Goldsboro man was sentenced today to 60 months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, Daniel Lamar Young, 26, possessed two firearms on March 26, 2019, in Goldsboro, North Carolina. Both firearms were loaded, and both had been stolen. Young had multiple prior felony convictions. At the time of this offense, he was on post-release supervision for a state conviction for being a felon in possession of a firearm.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Goldsboro Police Department investigated the case and Assistant U.S. Attorney Lucy Brown prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-59.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Ghost Face Gangster sentenced to federal prison for meth traffickingRead the Press Release
WAYCROSS, GA: A methamphetamine trafficker who claims membership in a notorious white supremacist street gang has been sentenced to more than seven years in federal prison.
Danny Lamar Chancey, a/k/a “Toby,” 48, of Blackshear, Ga., was sentenced to 86 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Possession with Intent to Distribute Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Chancey will be required to serve three years of supervised release. There is no parole in the federal system.
“Meth and gangs are a toxic combination, and we will relentlessly fight for the eradication of both,” said U.S. Attorney Christine. “Putting a habitual criminal like Chancey behind bars is a good start – and instantly makes the Blackshear community a safer place.”
As described in court documents and testimony, a Pierce County Sheriff’s Office investigator and an officer from the Georgia Department of Community Supervision visited Chancey’s residence in September 2019 to investigate reports that he was selling methamphetamine. Because Chancey was on probation from a state conviction for possession of methamphetamine, his residence was subject to search.
Inside the residence, officers found multiple small and large bags containing methamphetamine, along with materials used for distribution and a notebook of information on the Ghost Face Gangsters, a violent white supremacist street gang. Chancey admitted his membership in the notorious gang, which started in Georgia’s prison system and spread into communities throughout the Southeast.
“We removed another menacing methamphetamine trafficker from the streets,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “This repeat offender can no longer distribute toxic doses of poison to the Blackshear community. This investigation was a success because of the great working relationship that DEA has with its law enforcement partners.”
The case was investigated by the Drug Enforcement Administration (DEA), the Georgia Department of Supervision, the Pierce County Sheriff’s Office and the Blackshear Police Department, and was prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland.
Former federal employee sentenced for cocaine distribution and threatening fellow agentRead the Press Release
HOUSTON – A 39-year-old former Border Patrol (BP) agent has been ordered to prison following his conviction on multiple drug trafficking charges and threatening a federal agent with bodily harm, announced U.S. Attorney Ryan K. Patrick.
A federal jury in Houston returned guilty verdicts July 22, 2019, against Daniel Polanco, Edinburg, on cocaine charges and making a false statement. He was again found guilty March 6 after a second trial for threatening a federal agent.
Today, U.S. District Judge Keith P. Ellison imposed a total 166-month sentence to be followed by five years of supervised release for all convictions. At the hearing, the court found Polanco played an integral role in the drug trafficking conspiracy, abused and exploited his position of trust as a law enforcement officer in order to facilitate the offenses and obstructed justice by providing false statements to federal agents during the course of the investigation.
In handing down the sentence, Judge Ellison also found Polanco made a credible threat of bodily harm against one the agents investigating the drug trafficking conspiracy. The court noted that as a former federal agent himself, Polanco knew the consequences of making such a threat and had the ability to carry it out. For that reason, Judge Ellison imposed a separate six months on that charge to be served consecutively to the 160 months he received for the drug trafficking charges. As a condition of supervised release, Judge Ellison ordered Polanco not to have any contact, directly or through a third party, with the federal agent he threatened.
Polanco was a former BP agent, but is no longer with the federal government.
“Every day, dedicated law enforcement officers across the nation risk their lives to make our communities safe. The criminal actions of Daniel Polanco, for which he was justly sentenced, demean that dedication and sacrifice,” stated Special Agent in Charge Steven S. Whipple of the Drug Enforcement Administration (DEA). “DEA will continue to work with our law enforcement partners to target all narcotics traffickers, especially those who abuse their office and the trust of the American Public.”
The investigation began in 2011 when authorities targeted a drug trafficking organization involved in the transportation and distribution of cocaine and marijuana. Authorities soon found the organization was also stealing loads of cocaine and marijuana from sources of supply. As part of the scheme, the organization had created fake bundles of drugs and used law enforcement officers to seize them in order to cover up the theft.
At trial, the jury heard Polanco helped facilitate the distribution of more than 15 kilograms of cocaine in April 2013. He and others were hired to transport the cocaine but stole it instead and sold the cocaine for profit. To cover up the theft, co-conspirators created fake drug bundles that were placed in an abandoned vehicle. Polanco assisted in the planning and staging of that incident and devised a plan to ensure law enforcement seized the sham bundles. He personally called authorities to report the abandoned vehicle and falsely reported the vehicle as looking suspicious.
Testimony revealed the drug trafficking organization paid Polanco for his participation in the scheme to seize the fake drugs. The jury also heard he made a false statement to an agent who was investigating the 15-kilogram cocaine seizure in an attempt to cover up his involvement in the transaction.
Polanco testified at trial and denied participating in the scheme. The jury did not believe his claims and convicted him of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and knowingly giving a false statement to a federal agent.
Following that verdict and losing a legal motion, Polanco threatened one of the federal agents involved in the case. He was charged and later convicted of threatening to commit bodily harm with the intent to intimidate, interfere or impede the agent while he was engaged in the performance of his official duties and/or to retaliate against him for performance of his official duties.
The drug trafficking investigation has led to the arrest and prosecution of 20 individuals including six law enforcement officers, one of whom has already received a 10-year prison term.
Polanco has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations
and Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Blue Shame. Assistant U.S. Attorney Casey N. MacDonald and Anibal J. Alaniz prosecuted the drug case, while Assistant U.S. Attorney Leo J. Leo III handled the threat matter.
Former Manning Police Chief Sentenced to One Year in Federal Prison for Stealing Nearly $80,000 in Seized CashRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Gary Blair Shaffer, former Chief of the City of Manning Police Department, was sentenced to a year in federal prison for stealing nearly $80,000 in seized cash in 2015.
“Those who are sworn to uphold the law must lead by example. The Defendant here dishonored his oath, violated the public’s trust, and deserved his federal prison sentence,” said U.S. Attorney McCoy. “As this case shows, no one is above the law. This office will not allow those who are supposed to protect our community to take advantage of the people of South Carolina.”
Evidence presented to the court showed that, as Chief of Police, Shaffer had unfettered access to the Manning Police Department’s facilities and evidence rooms. On September 12, 2015, following a traffic stop in which drugs and nearly $80,000 in cash were seized, the drugs and money were placed in the Manning Police Department Evidence Room. Beginning a week later, Shaffer began making large cash deposits, ranging between $500 and $5,000, in a series of separate transactions. Between September 19, 2015, and November 10, 2015, Shaffer deposited $78,514 in cash into his personal banking account. All of this money was stolen from the evidence room.
After a tip was reported to the Federal Bureau of Investigation (FBI), Shaffer was contacted by law enforcement officers and falsely denied stealing the money. He deceived officials a second time, before ultimately being charged with, and pleading guilty to, theft of government funds and making a false statement to law enforcement.
United States District Judge Bruce Hendricks sentenced Shaffer to one year and a day in federal prison, to be followed by a one-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by Special Agent Aaron Hawkins of the FBI. Assistant United States Attorney Brook Andrews prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Domestic violence offender sentenced to four years in prisonRead the Press Release
HONOLULU, Hawaii – District Judge Leslie E. Kobayashi sentenced David Benjamin Cordeiro, 38, of Mountain View, Hawaii, today for one count of possession of ammunition after having been previously convicted of misdemeanor domestic violence, in violation of 18 U.S.C. § 922(g)(9). Cordeiro will serve four years imprisonment, with three years of supervised release to follow.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on September 1, 2018, Cordeiro fired approximately nine bullets into a stopped car, in which two females, including his girlfriend, were seated. One bullet pierced the windshield of the car, causing his girlfriend to believe she had been struck by a bullet. Cordeiro had multiple prior convictions for domestic violence and abuse of family members under Hawaii law. Accordingly, federal law prohibited Cordeiro from possessing firearms or ammunition.
As presented in court, Cordeiro’s prior convictions under state law included an incident wherein he physically assaulted and threw gasoline on a prior intimate partner; an incident in which he burned a female victim with the hot metal tip of a butane torch; and two separate incidents wherein he violently struck women while they held his infant child. All of these incidents involved different female victims.
In light of his criminal history and characteristics, Judge Kobayashi imposed an upward variance at sentencing, meaning a sentence higher than Cordeiro’s calculated guidelines range under the United States Sentencing Guidelines. “In cases like this one, a firearm or ammunition in the hands of someone convicted of misdemeanor domestic violence is a federal crime and recipe for disaster. We will vigorously investigate and prosecute those who choose to endanger our communities by unlawfully possessing guns or ammunition,” stated U.S. Attorney Price.
The case was investigated by the Hawaii County Police Department and the Federal Bureau of Alcohol, Tobacco, and Firearms. It was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Neighborhood, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Cortland County Man Sentenced to 45 Years for Child Sexual ExploitationRead the Press Release
SYRACUSE, NEW YORK – Christopher M. Perry, 36, of Cortland, New York, was sentenced today to serve 540 months (45 years) in federal prison for conspiring and acting together with co-defendant Sarah R. Gates to sexually exploit a child under five years of age for the purpose of producing images of the abuse.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his prior guilty plea to a three-count Information, Perry admitted that on several occasions in 2017, he and Gates performed sexual acts on the child while taking photographs of the abuse, using two cell phones.[1]
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Perry is released from prison. As a result of his conviction, Perry will also be required to register as a sex offender upon his release from prison.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant United States Attorney Adrian S. LaRochelle.
The case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
[1] Gates is charged by complaint with the same offenses, which are merely accusations, and she is presumed innocent unless and until proven guilty.
Cibecue Man Sentenced for Domestic Violence AssaultRead the Press Release
PHOENIX, Ariz. – On October 26, 2020, Gregg Henry, 54, of Cibecue, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 27 months in prison followed by three years of supervised release. Henry previously pleaded guilty to assault resulting in serious bodily injury.
On April 6, 2018, Henry punched the victim in the face one time, breaking her jaw. The victim and defendant were dating partners. Henry is a member of the White Mountain Apache Tribe, and the crime occurred on the Fort Apache Indian Reservation.
The Federal Bureau of Investigation and the White Mountain Apache Police Department conducted the investigation. Assistant United States Attorneys Tracy Van Buskirk and Anthony Church, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR 19-08005-PCT-SPL
RELEASE NUMBER: 2020-095_G. Henry# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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