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Wednesday 28 October 2020
Former President of Nuclear Transportation Company Sentenced to Prison for Foreign Bribery and Other OffensesRead the Press Release
The former president of Transport Logistics International Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was sentenced today to 48 months in prison and three years of supervised release for his role in a scheme to bribe a Russian official in exchange for obtaining contracts for the company.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland, Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office, and Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
On Nov. 22, 2019, after a three-week trial, Mark T. Lambert, 57, was convicted of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud. Lambert was sentenced by U.S. District Judge Theodore D. Chuang of the District of Maryland. In addition to his prison sentence, Judge Chuang ordered Lambert to pay a $20,000 fine. Lambert must report to the U.S. Marshals Service by Feb. 15, 2021, to begin serving his prison sentence.
According to the evidence presented at trial, Lambert participated in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation (ROSATOM) and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide. Mikerin was later president of TENEX’s wholly-owned U.S. subsidiary, TENAM Corporation. Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers,” and “cake” to describe the bribes, and they communicated with Mikerin about the scheme at his alias e-mail account where Mikerin used the name “Marvin Jodel.”
The trial evidence demonstrated that, for approximately seven years, in order to secure contracts with TENEX, Lambert conspired with others at TLI to make over $1.5 million in corrupt and fraudulent bribe payments to Mikerin through offshore shell companies Mikerin directed them to pay. To conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. Lambert and others then used the fake invoices to justify and conceal the bribes they caused to be transmitted by wire to shell company bank accounts in Latvia, Cyprus, and Switzerland.
Two other defendants have pleaded guilty in this matter. On June 17, 2015, Daren Condrey, Lambert’s former co-president, pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. He is awaiting sentencing. On Aug. 31, 2015, Russian national Vadim Mikerin pleaded guilty to conspiracy to commit money laundering. He was sentenced to 48 months in prison. On March 12, 2018, TLI entered into a deferred prosecution agreement with the Department of Justice in connection with the bribery scheme.
This case was investigated by the FBI’s Washington Field Office and DOE-OIG. Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former President of Maryland-Based Nuclear Transportation Company Sentenced to Four Years in Federal Prison on Charges, Including Paying Bribes to Russian OfficialRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Mark Lambert, age 57, of Mount Airy, Maryland, to four years in federal prison, followed by THREE years of supervised release, after his conviction at trial on four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud, for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy agency. In addition to his prison sentence, Judge Chuang ordered Lambert to pay a $20,000 fine. Lambert must report to the U.S. Marshals Service by February 15, 2021, to begin serving his prison sentence. Lambert is the former president of Transport Logistics International, Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, including to the Russian Federation.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG); and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington, D.C. Field Office.
According to the evidence presented at his three-week trial, Lambert engaged in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX. Mikerin was later president of TENEX’s wholly-owned U.S. subsidiary, TENAM Corporation. Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers” and “cake” to describe the bribes, and they communicated with Mikerin about the scheme at his alias e-mail account where Mikerin used the name “Marvin Jodel.”
The trial evidence demonstrated that, for approximately seven years, in order to secure contracts with TENEX, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. To conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. Lambert and others then caused TLI to wire the corrupt payments for those purported services to shell company bank accounts in Latvia, Cyprus, and Switzerland.
Two other defendants have pleaded guilty in this matter. Daren Condrey, age 55, of Glenwood, Maryland, Lambert’s former co-president, pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. He is awaiting sentencing. Vadim Mikerin, age 61, a Russian official formerly residing in Chevy Chase, Maryland, pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA and was sentenced to four years in federal prison. On March 12, 2018, TLI entered into a deferred prosecution agreement with the Department of Justice in connection with the bribery scheme.
United States Attorney Robert K. Hur and Acting Assistant Attorney General Brian Rabbitt commended the DOE-OIG and the FBI for their work in the investigation, and thanked the Criminal Division’s Office of International Affairs and law enforcement in Switzerland, Latvia, and Cyprus for providing valuable assistance with the investigation and prosecution of the case. Mr. Hur and Mr. Rabbitt thanked Assistant U.S. Attorney David I. Salem and Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, who are prosecuting the case.
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Former Pharmacy Owner Pleads Guilty to Health Care FraudRead the Press Release
SYRACUSE, NEW YORK – Jennifer Caloia, age 56, a licensed pharmacist who owned and operated Dougherty Pharmacy in Morrisville, New York, from 1998 to 2015, pled guilty today in federal court in Utica to one felony count of health care fraud, announced Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General; Ralph D. Tortora III, Regional Director, New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office; Carol S. Hamilton, Regional Director, U.S. Department of Labor Employee Benefits Security Administration (DOL EBSA); and Superintendent Linda A. Lacewell, New York State Department of Financial Services.
In pleading guilty, Jennifer Caloia admitted that between 2011 and 2015, she defrauded public and private health insurance programs by submitting false and fraudulent claims for prescription drugs that the pharmacy did not dispense. Caloia also admitted that customers submitting prescriptions for medications had their health insurance providers billed for more expensive drugs than those prescribed. To facilitate this scheme, the defendant changed the names of some of the prescription drugs in the software she used to communicate with insurance companies and to print drug labels, which allowed her to submit her fraudulent claims while providing the customer with the appropriate labels and instructions. Caloia further admitted that she personally obtained $110,431.02 in unrecovered proceeds in connection with her health care fraud scheme. She no longer owns or operates Dougherty Pharmacy.
Sentencing is scheduled for February 24, 2021 in federal court in Utica, at which time Caloia faces up to ten years in prison; a fine of up to $250,000; and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. In her plea agreement, Caloia has agreed to pay restitution in the amount of $110,431.02 to the public and private insurers affected by her fraud scheme.
In separately negotiated civil settlements with the Civil Division of the United States Attorney’s Office for the Northern District of New York and the New York State Attorney General’s Office, Caloia and her company agreed to pay $92,308.76 related to her submission of false claims to public insurers such as Medicare and Medicaid. The civil settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, knowns as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $19,332.76 of the settlement proceeds. The federal civil case is docketed with the United States District Court for the Northern District of New York under number 6:17-cv-92 (BKS/ATB).
This case was investigated by the Federal Bureau of Investigation (FBI); the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Labor-Employee Benefits Security Administration (DOL EBSA), New York Attorney General’s Medicaid Fraud Control Unit; and the New York State Department of Financial Services, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry. The civil investigation is being handled by Assistant United States Attorney John Hoggan and Special Assistant Attorney General Paul Berry.
Former Harrison County Constable and Paris Firefighter Sentenced to 420 Months for Using a Minor to Produce Sexually Explicit Images and VideosRead the Press Release
LEXINGTON, KY- A Cynthiana, Kentucky, man, William Michael Fields, Jr., 37, was sentenced to 420 months on Wednesday by Chief U.S. District Judge Danny Reeves, for the production of child pornography.
According to court documents and trial testimony, Fields, then 36, exercised his positions as a Harrison County Constable and Paris Fire Department firefighter to form a relationship with a 17-year-old victim, who was interested in pursuing a career in law enforcement or emergency medicine. The victim became acquainted with Fields in early 2019 while visiting a fire station in Harrison County, and began communicating with the victim through the social media platform Snapchat.
On March 17, 2019, Fields sent the victim a text message asking her to meet him. Fields met with the victim that night and provided her with alcohol. Fields then had sexual intercourse with the victim in the back of an ambulance in Paris. Fields used the victim’s cellphone to video record the encounter, and then sent the video to himself. A thumbnail image from the video was later found on Fields’ cellphone.
The evidence at trial also revealed that Fields again had sexual intercourse with the underage victim at the Emergency Medical Training Facility in Bourbon County on March 23, 2019. Fields again used the victim’s cellphone to record the encounter.
Law enforcement performed a forensic examination of Fields’ cellphone and discovered screen shots from the videos of Fields’ sexual encounters with the victim.
Fields was convicted in June 2020 by a jury in Lexington after a two-day trial.
Under federal law, Fields must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 20 years.
“This conduct is simply inexcusable – the defendant abused his positions of trust and authority, as a firefighter and constable, and used them to sexually exploit a minor victim,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “He further victimized her by knowingly using her to create images of child pornography. This despicable conduct warrants significant punishment, both to hold him accountable and to deter others from engaging in similar conduct.”
United States Attorney Duncan; Jerry C. Templet Jr., Special Agent in Charge, Department of Homeland Security Homeland Security Investigations; Daniel Cameron, Attorney General of Kentucky, and Chief E. Douglas Robinson, Cynthiana Police Department, jointly announce the sentence..
The investigation was conducted by HIS, the Kentucky Office of the Attorney General, and the Cynthiana Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Erin Roth and Mary Melton.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Felon Sentenced to 45 Months in Federal Prison for Illegally Possessing Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NATHANIEL RODRIGUEZ, 24, formerly of Enfield, Connecticut and Holyoke, Massachusetts, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 45 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, at approximately 2:00 a.m. on January 27, 2019, Hartford Police received reports of a fight outside of the Vanish Bar and Grille Club on Meadow Street in Hartford. After responding to the scene, a detective saw Rodriguez arguing with several individuals in an SUV, and then produce a handgun. Hartford Police officers secured Rodriguez and recovered a loaded M&P Bodyguard .380 caliber handgun that he dropped on the ground.
The gun had been reported stolen in Massachusetts in 2017.
Rodriguez’s criminal history includes felony convictions in Massachusetts for firearms, assault, drug, and witness intimidation offenses.
Rodriguez has been detained since March 29, 2019, when he was arrested in Enfield in an unrelated case. On January 28, 2020, he pleaded guilty in federal court to possession of a firearm and ammunition by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Felon Sentenced to 37 Months in Prison for Possessing Loaded RifleRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL A. GOMEZ, 31, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 17, 2019, Gomez was involved in a one-car motor vehicle accident in East Hartford. As East Hartford Police responded to the accident, Gomez ran from the scene. He was apprehended after a short foot chase. A subsequent search of Gomez’s vehicle revealed a loaded AM-15 .223 caliber rifle.
In 2008, Gomez was convicted in state court of two counts of assault in the first degree, on which he was sentenced to 15 years of imprisonment, execution suspended after seven years.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gomez has been detained since his arrest. On June 16, 2020, he pleaded guilty today to possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Federal Law Enforcement Arrest Three Citizens of Mexico for Methamphetamine/Heroin Distribution Operation in San Antonio and South TexasRead the Press Release
Federal and state authorities arrested three citizens of Mexico today for their roles in a methamphetamine and heroin distribution operation, announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division.
Those arrested today include: 27-year-old Daisy Menera and 22-year-old Jose Adam Alejandre-Navarro in Houston, TX; 46-year-old Manuel Montoya, in San Angelo, TX.
A federal grand jury indictment unsealed today charges those arrested, along with three other citizens of Mexico who were already in custody prior to today, with conspiracy to distribute methamphetamine and heroin. The other indicted defendants include: 47-year-old Marco Antonio Morales-Perez, 23-year-old Christopher Valenzuela Ramirez, and 44-year-old Israel Villegas Alcantar.
The indictment alleges that under the leadership of Morales-Perez, this organization was responsible for the coordination and distribution of over 80 kilograms of methamphetamine from Mexico to San Antonio and other areas in South Texas from June 2018 to February 2020. According to the indictment, Morales-Perez coordinated narcotics deliveries from within the Great Plains Correctional Institution in Hinton, OK, using contraband cell phones smuggled into the facility by way of drones.
“The idea that Mexican nationals can sell poison to Texans using drones and smuggled cell phones while serving time in a U.S. prison should worry us all. As transnational criminal organizations become more sophisticated, law enforcement must be given the support, tools, and resources to stop them. Thanks to the combined efforts of our partners in the DEA, FBI, Federal Bureau of Prisons, Bexar County Sheriff’s Office, and the San Antonio Police Department, these defendants will now be held accountable,” stated U.S. Attorney Sofer.
“Methamphetamine and heroin are vicious drugs that continue to cause horrific damage in too many of our communities,” stated DEA Special Agent in Charge Whipple. “These indictments and arrests, as part of Operation Shawshank, conclude a 28-month investigation and demonstrate the level of sophistication utilized by the criminal organizations and the challenges faced by law enforcement. The coordination and management of drug trafficking from within a correctional facility by these subjects underscores this and it is only through the professionalism of law enforcement on both sides of the border that these successes can be achieved.”
To date, authorities have seized approximately 70 kilograms of methamphetamine and seven kilograms of heroin attributable to this drug trafficking organization.
Upon conviction, defendants face between ten years and life in federal prison. All of those arrested today remain in federal custody. Detention hearings are expected to occur next week in U.S. Magistrate Court in San Antonio.
The DEA, FBI, Federal Bureau of Prisons, Bexar County Sheriff’s Office and the San Antonio Police Department are conducting this Organized Crime Drug Enforcement Task Force (OCDETF) investigation with assistance from the Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Leon Valley Police Department, Hollywood Park Police Department, Castle Hills Police Department and Live Oak Police Department. Assistant U.S. Attorney Eric Fuchs is prosecuting this case on behalf of the Government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
Father, daughter tax preparers indicted on multiple charges of income tax filing fraudRead the Press Release
AUGUSTA, GA: An Augusta man and his daughter have been charged in a 49-count federal indictment with filing fraudulently inflated tax returns on behalf of clients.
Ezra Hatcher Sr., 66, and Sherry Hatcher, 40, both of Augusta, were indicted in U.S. District Court for Conspiracy to Defraud the United States, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Ezra Hatcher also is charged with 31 counts of Aiding and Assisting in the Filing of False Tax Returns, and Sherry Hatcher is charged with 17 counts of Aiding and Assisting in the Filing of False Tax Returns.
The two were arraigned Wednesday, Oct. 28, in U.S. District Court and each granted $25,000 unsecured bonds, and as a special condition of their release Magistrate Judge Brian K. Epps prohibited them from engaging in any business or fiduciary capacity without disclosing the indictment and nature of the allegations.
“The security of our national budget process depends on honest compliance with tax laws, which is a core responsibility of those who provide assistance in filing tax returns,” said U.S. Attorney Christine. “With the assistance of the IRS and our law enforcement partners, we will aggressively pursue those who attempt to defraud the system for their personal benefit.”
As described in court documents and testimony, the IRS conducted audits of tax preparation services operated by Ezra Hatcher and Sherry Hatcher. The audit determined that from 2014 to 2018, the two companies filed 57 tax returns on behalf of 15 individuals, “knowing the returns contained false and fraudulent information relating to Schedule C expenses, income, and earned income credits.” Altogether, the returns caused the IRS to issue excess refunds amounting to $167,086.
“The public trusts tax return preparers to properly prepare, review, and file their tax returns,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “These charges allege the tax return preparers broke this trust. Always ask to review your return line by line and ask questions if you don’t understand something. Trust but verify.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the IRS, and prosecuted for the United States by Assistant U.S. Attorneys Alejandro V. Pascual IV and Jennifer Stanley.
Farmington Hills Man Indicted in Unemployment Insurance, Credit Card ScamsRead the Press Release
A Farmington Hills man has been indicted and charged with defrauding the Michigan Unemployment Insurance Agency, defrauding credit card companies, and stealing the identities of local residents, United States Attorney Matthew Schneider announced today.
Joining in the announcement were Acting Inspector in Charge Bryan Musgrove, United States Postal Inspection Service, Special-Agent in Charge Andre Martin, United Postal Service – Office of Inspector General and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“The allegations here include some of the most egregious, brazen abuses of the unemployment fraud system we’ve seen this year,” stated United States Attorney Matthew Schneider. “While thousands of people in Michigan have lost their jobs and are struggling to put food on the table, con artists are stealing unemployment money away from them. We plan to follow the money trail and seek justice in all of these cases.”
Special Agent-in-Charge Andre Martin, Great Lakes Area Field Office, U.S. Postal Service Office of Inspector General said, “Today’s charges represent our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail. The USPS OIG, along with the U.S. Attorney's Office, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
Acting Inspector in Charge Bryan Musgrove stated, “U.S. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, including any fraud in which the postal system is used, in an effort to ensure America’s confidence in the U.S. Mail. Investigating violations of more than 200 federal laws, the Postal Inspection Service seeks to enforce these statutes to the maximum extent possible against those aiming, as in this case, to utilize the U.S. Mail in furtherance of illicit activities and criminal schemes.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Charged is Andre Taylor Jr., 27. The indictment charges Taylor Jr. with four counts of mail fraud, three counts of wire fraud, and three counts of aggravated identity theft.
According to the indictment, Taylor Jr. concocted a scheme to defraud the unemployment insurance agencies of Michigan, Pennsylvania, and other states beginning in approximately April, 2020. Taylor Jr. began his scheme shortly after the passage of the Federal Pandemic Unemployment Compensation program, which allowed eligible unemployment insurance claimants to receive an additional $600 in federal benefits per week. Taylor Jr. is alleged to have filed unemployment insurance claims to Michigan and other states in the names of various individuals without those individual’s approval or authorization. To capture the fraudulently obtained unemployment insurance benefits, Taylor Jr. generally arranged for the State Unemployment Insurance Agencies to send prepaid debit cards containing the unemployment benefits to addresses Taylor controlled.
In some instances, the prepaid debit cards were mailed to addresses associated with Taylor Jr. or his family members. In other instances, the prepaid debit cards were sent to addresses along postal routes known to Taylor Jr. Taylor Jr. would allegedly direct letter carriers along these routes to secure the mailings containing the prepaid debit cards associated with UI claims. The letter carriers would then provide Defendant with these mailings in exchange for cash bribes.
Taylor’s alleged bribes to letter carriers extended beyond securing fraudulently obtained debit cards containing unemployment insurance benefits. The indictment alleges that Taylor also paid the letter carriers to obtain credit and debit cards in the names of individuals who lived along the route. Taylor is alleged to have used these credit and debit cards at local retailers such as Meijer and Kroger to obtain gift cards and other goods.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, and the United States Department of Labor, Office of Inspector General. The United States Attorney’s Office would also like to thank the Michigan State Police-Investigative Support Section and the Lathrup Village Police Department for their assistance in this investigation.
Española man sentenced to 16 years in federal prison for robbery, assault, and firearms crimesRead the Press Release
ALBUQUERQUE, N.M. – Michael Duran, 33, of Española, New Mexico, and a member of the Ohkay Owingeh tribe, was sentenced in federal court in Albuquerque on Oct. 21 to 16 years and six months in prison after pleading guilty to charges of robbery, two counts of assault with a dangerous weapon, and discharging a firearm during a crime of violence.
According to court records, on two separate occasions Duran entered a business with the intent to rob it with a firearm. On Oct. 1, 2017, Duran entered the San Pedro Shell gas station and store located near Española on the Santa Clara Pueblo, pointed a firearm at the store clerk and demanded money from the cash register. Duran got away with $50 in cash and several boxes of cigarettes. On Oct. 16, 2017, Duran approached the walk-up order window at the El Parasol Restaurant in Española, also on the Santa Clara Pueblo, and demanded money while pointing a firearm at a restaurant employee. Duran fired his weapon into the business and fled the scene. No one was injured.
Upon his release from prison, Duran will serve three years of supervised release.
The Bureau of Indian Affairs – Northern Pueblo Agency investigated this case with assistance from the Española Police Department. Assistant U.S. Attorneys David P. Cowen and Jennifer M. Rozzoni prosecuted the case.
Eight Individuals Charged with Conspiring to Act as Illegal Agents of the People’s Republic of ChinaRead the Press Release
A complaint and arrest warrants were unsealed today in federal court in Brooklyn charging eight defendants with conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC). Six defendants also face related charges of conspiring to commit interstate and international stalking. The defendants, allegedly acting at the direction and under the control of PRC government officials, conducted surveillance of and engaged in a campaign to harass, stalk and coerce certain residents of the United States to return to the PRC as part of a global, concerted and extralegal repatriation effort known as “Operation Fox Hunt.”
Zhu Yong, Hongru Jin and Michael McMahon were arrested today, and their initial appearances are scheduled this afternoon via teleconference before United States Magistrate Judge Peggy Kuo. Rong Jing and Zheng Congying were arrested in the Central District of California, and their initial appearances will take place in that district later today. Zhu Feng, Hu Ji and Li Minjun remain at large.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; Christopher Wray, Director, Federal Bureau of Investigation (FBI); George M. Crouch, Jr., Special Agent-in-Charge, FBI, Newark Field Office (FBI); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Keith Byrne, Special Agent-in-Charge, U.S. Department of State’s Diplomatic Security Service, New York Field Office, announced the arrests and charges.
“As alleged, the defendants assisted PRC officials in a scheme to coerce targeted individuals to return to the PRC against their will,” stated Acting United States Attorney DuCharme. “The United States will not tolerate the conduct of PRC carrying out state-authorized actions on U.S. soil without notice to, and coordination with, the appropriate U.S. authorities. Nor will we tolerate the unlawful harassment and stalking of U.S. residents to further PRC objectives.” Mr. DuCharme also extended his thanks and appreciation to the FBI’s Los Angeles Field Office for their work on the case.
“With these criminal charges, we have turned the PRC’s Operation Fox Hunt on its head and the hunters became the hunted, the pursuers the pursued,” stated Assistant Attorney General Demers. “Five defendants illegally doing the bidding of the Chinese government here in the United States now face the prospect of prison and our message is clear: stay out. This behavior is not welcome here.”
“The Chinese government’s brazen attempts to surveil, threaten, and harass our own citizens and lawful permanent residents, while on American soil, are part of China’s diverse campaign of theft and malign influence in our country and around the world,” stated FBI Director Wray. “The FBI will use all of its tools to investigate and defeat these outrageous actions by the Chinese government, which are an affront to America's ideals of freedom, human rights, and the rule of law.”
“Today’s announcement of these charges further highlights the FBI’s ongoing and aggressive commitment to investigate China’s efforts to illegally impose its will in the United States,” stated FBI Special Agent-in-Charge Crouch. “This case should serve as a reminder to the People’s Republic of China that when it directs criminal activity within our borders, the FBI and its law enforcement partners will make sure the perpetrators are held accountable.”
“It is alleged that the six defendants charged today were operating on American soil as illegal agents of the People’s Republic of China (PRC.) The defendants engaged in a scheme orchestrated by PRC government officials, to stalk, intimidate, coerce and threaten certain residents of the United States to return to the PRC. Despite the claims that the PRC agents were pursuing Chinese dissidents who were wanted for certain crimes in the PRC, HSI, along with its partners from the FBI, DSS and DOJ, work tirelessly every day to ensure that our rule of law and sovereignty is respected by other countries. In lieu of utilizing well established, international law enforcement channels to locate and apprehend those individuals with charges in the PRC, these illegal agents operated within our border autonomously and against U.S. law, and now they must face their own charges,” stated Special Agent-in-Charge Fitzhugh.
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” stated Diplomatic Security Service Special Agent-in- Charge Byrne.
According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate John Doe-1, a resident of New Jersey, and his family in order to force them to return to the PRC as part of an international effort by the PRC government known within the PRC as “Operation Fox Hunt” and “Operation Skynet.” In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges. Rather than rely upon proper forms of international law enforcement cooperation, such as Interpol “red notices” and requests for information through appropriate governmental channels, the defendants allegedly engaged in clandestine, unsanctioned and illegal conduct within the United States and facilitated the travel of PRC government officials (“PRC Officials”) to U.S. soil in order to further carry out these illegal acts. Between 2016 and 2019, multiple PRC Officials directed the defendants, and several others, to engage in efforts to coerce the victims to return to the PRC, which included the following:
Surveillance and Coercion
In April 2017, defendants Zhu Feng, Hu Ji, Li Minjun, Hongru Jin, Zhu Yong and McMahon, together with others, including the PRC Officials, allegedly participated in a scheme to bring John Doe-1’s elderly father from the PRC to the United States against the father’s will and to use the surprise arrival of his elderly father to threaten and attempt to coerce John Doe-1’s return to the PRC. Zhu Feng, Hu Ji and Zhu Yong worked with McMahon, a private investigator, to gather intelligence about and locate John Doe-1 and his wife in the United States. PRC Officials coerced the father of John Doe-1 to travel from the PRC to the New York area in the company of Li Minjun, a doctor. Hongru Jin assisted with logistics of the operation when Zhu Feng, Li Minjun, John Doe-1’s elderly father and other PRC officials arrived in the U.S.
As charged in the complaint, during this phase of the scheme McMahon, whose task was to surveil John Doe-1’s father in order to locate John Doe-1 and his wife, suggested to Zhu Feng that they could “harass [John Doe-1]. Park outside his home and let him know we are there.” Later, Zhu Feng told McMahon, “[t]hey definitely grant u a nice trip if they can get [John Doe-1] back to China haha.”
The conspirators also discussed the false statements John Doe-1’s father should make to U.S. immigration authorities about the purpose of his travel to the United States. The conspirators also made efforts to destroy evidence and delete their electronic communications to avoid detection by U.S. law enforcement.
Targeting and Harassment of Victims’ Daughter
Between May 2017 and July 2018, Rong Jing and several co-conspirators allegedly targeted John Doe-1’s adult daughter for surveillance and online harassment. Specifically, Rong Jing attempted to hire a private investigator to locate John Doe-1’s adult daughter in order to photograph and video record the daughter as part of a campaign to exert pressure on John Doe-1. Around the same time, an unidentified co-conspirator sent harassing messages over social media to John Doe-1’s daughter and her friends related to the PRC’s interest in repatriating John Doe-1.
Continued Harassment of Victims
In September 2018, Zheng Congying and another unidentified co-conspirator allegedly affixed a threatening note to the door of the John Doe-1’s residence stating, “If you are willing to go back to mainland and spend 10 years in prison, your wife and children will be all right. That’s the end of this matter!” Between February 2019 and April 2019, other co-conspirators caused unsolicited packages to be sent to John Doe-1’s residence. These packages contained letters and a video with messages intended to coerce John Doe-1’s return to the PRC by threatening harm to family members still residing in the PRC.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charged conspiracy to act as an agent of the PRC, each of the eight defendants charged today faces a maximum sentence of five years in prison. Defendants Zhu Feng, Hu Ji, Li Minjun, Michael McMahon, Rong Jing and Zheng Congying also face an additional charge of conspiracy to commit interstate and international stalking, which carries a maximum sentence of five years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and J. Matthew Haggans are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendants:
HONGRU JIN
Age: 30
Queens, New YorkHU JI
Age: 45
People’s Republic of ChinaLI MINJUN
Age: 64
People’s Republic of ChinaMICHAEL MCMAHON
Age: 53
Mahwah, New JerseyRONG JING
Age: 38
Rancho Cucamonga, CaliforniaZHENG CONGYING
Age: 24
Brooklyn, New YorkZHU FENG
Age: 33
Queens, New York; People’s Republic of ChinaZHU YONG, (also known as “Jason Zhu”)
Age: 64
Norwich, Connecticut and Flushing, New YorkE.D.N.Y. Docket No. 20-MJ-1025
Eight Individuals Charged with Conspiring to Act as Illegal Agents of the People’s Republic of ChinaRead the Press Release
A complaint and arrest warrants were unsealed today in federal court in Brooklyn charging eight defendants with conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC). Six defendants also face related charges of conspiring to commit interstate and international stalking. The defendants, allegedly acting at the direction and under the control of PRC government officials, conducted surveillance of and engaged in a campaign to harass, stalk, and coerce certain residents of the United States to return to the PRC as part of a global, concerted, and extralegal repatriation effort known as “Operation Fox Hunt.”
Zhu Yong, Hongru Jin, and Michael McMahon were arrested today and will be arraigned this afternoon via teleconference before U.S. Magistrate Judge Peggy Kuo. Rong Jing and Zheng Congying were arrested in the Central District of California, and their initial appearances will take place in that district later today. Zhu Feng, Hu Ji, and Li Minjun remain at large.
“With today’s charges, we have turned the PRC’s Operation Fox Hunt on its head — the hunters became the hunted, the pursuers the pursued,” said Assistant Attorney General for National Security John C. Demers. “The five defendants the FBI arrested this morning on these charges of illegally doing the bidding of the Chinese government here in the United States now face the prospect of prison. For those charged in China and others engaged in this type of conduct, our message is clear: stay out. This behavior is not welcome here.”
“The Chinese government’s brazen attempts to surveil, threaten, and harass our own citizens and lawful permanent residents, while on American soil, are part of China’s diverse campaign of theft and malign influence in our country and around the world,” said FBI Director Christopher Wray. “The FBI will use all of its tools to investigate and defeat these outrageous actions by the Chinese government, which are an affront to America's ideals of freedom, human rights, and the rule of law.”
“As alleged, the defendants assisted PRC officials in a scheme to coerce targeted individuals to return to the PRC against their will,” said Acting U.S. Attorney Seth D. DuCharme. “The United States will not tolerate the conduct of PRC carrying out state-authorized actions on U.S. soil without notice to, and coordination with, the appropriate U.S. authorities. Nor will we tolerate the unlawful harassment and stalking of U.S. residents to further PRC objectives.” Acting U.S. Attorney DuCharme also extended his thanks and appreciation to the FBI’s Los Angeles Field Office for their work on the case.
“Today’s announcement of these charges further highlights the FBI’s ongoing and aggressive commitment to investigate China’s efforts to illegally impose its will in the United States”, said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office. “This case should serve as a reminder to the People’s Republic of China that when it directs criminal activity within our borders, the FBI and its law enforcement partners will make sure the perpetrators are held accountable.”
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Keith Byrne, Special Agent in Charge of the New York Field Office of the Diplomatic Security Service.
According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate John Doe-1, a resident of New Jersey, and his family in order to force them to return to the PRC as part of an international effort by the PRC government known within the PRC as “Operation Fox Hunt” and “Operation Skynet.” In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges. Rather than rely upon proper forms of international law enforcement cooperation, such as Interpol “red notices” and requests for information through appropriate governmental channels, the defendants allegedly engaged in clandestine, unsanctioned, and illegal conduct within the United States and facilitated the travel of PRC government officials (PRC Officials) to U.S. soil in order to further carry out these illegal acts. Between 2016 and 2019, multiple PRC Officials directed the defendants, and several others, to engage in efforts to coerce the victims to return to the PRC, which included the following:
Surveillance and Coercion
In April 2017, defendants Zhu Feng, Hu Ji, Li Minjun, Hongru Jin, Zhu Yong, and Michael McMahon, together with others, including the PRC Officials, allegedly participated in a scheme to bring John Doe-1’s elderly father from the PRC to the United States against the father’s will and to use the surprise arrival of his elderly father to threaten and attempt to coerce John Doe-1’s return to the PRC. Zhu Feng, Hu Ji, and Zhu Yong worked with Michael McMahon, a private investigator, to gather intelligence about and locate John Doe-1 and his wife in the United States. PRC Officials coerced the father of John Doe-1 to travel from the PRC to the New York area in the company of Li Minjun, a doctor, who traveled with the elderly father from the PRC to the New York area. Hongru Jin assisted with logistics of the operation when Zhu Feng, Li Minjun, John Doe-1’s elderly father, and other PRC officials arrived in the U.S.
As charged in the complaint, during this phase of the scheme, McMahon, whose task was to surveil John Doe-1’s father in order to locate John Doe-1 and his wife, suggested to Zhu Feng that they could “harass [John Doe-1]. Park outside his home and let him know we are there.” Later, Zhu Feng told McMahon, “[t]hey definitely grant u a nice trip if they can get [John Doe-1] back to China haha.”
The conspirators also discussed the false statements John Doe-1’s father should make to U.S. immigration authorities about the purpose of his travel to the United States. The conspirators also made efforts to destroy evidence and delete their electronic communications to avoid detection by U.S. law enforcement.
Targeting and Harassment of Victims’ Daughter
Between May 2017 and July 2018, Rong Jing and several co-conspirators allegedly targeted John Doe-1’s adult daughter for surveillance and online harassment. Specifically, Rong Jing attempted to hire a private investigator to locate John Doe-1’s adult daughter in order to photograph and video record the daughter as part of a campaign to exert pressure on John Doe-1. Around the same time, an unidentified co-conspirator sent harassing messages over social media to John Doe-1’s daughter and her friends related to the PRC’s interest in repatriating John Doe-1.
Continued Harassment of Victims
In September 2018, Zheng Congying and another unidentified co-conspirator allegedly affixed a threatening note to the door of the John Doe-1’s residence stating, “If you are willing to go back to mainland and spend 10 years in prison, your wife and children will be all right. That’s the end of this matter!” Between February 2019 and April 2019, other co-conspirators caused unsolicited packages to be sent to John Doe-1’s residence. These packages contained letters and a video with messages intended to coerce John Doe-1’s return to the PRC by threatening harm to family members still residing in the PRC.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charged conspiracy to act as an agent of the PRC, each of the eight defendants charged today faces a maximum sentence of five years in prison. Defendants Zhu Feng, Hu Ji, Li Minjun, Michael McMahon, Rong Jing, and Zheng Congying also face an additional charge of conspiracy to commit interstate and international stalking, which carries a maximum sentence of five years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren and J. Matthew Haggans are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Doña Ana County inmate sentenced to six years in federal prison for attempt to possess contrabandRead the Press Release
ALBUQUERQUE, N.M. – Aaron Reed, 30, of Grants, New Mexico, was sentenced Oct. 22 to six years and four months in federal prison after pleading guilty to attempting to possess contraband in prison.
Reed was one of seven defendants charged in a conspiracy to distribute illegal drugs, including methamphetamine and buprenorphine, inside of the Doña Ana County Detention Center in January 2019. Reed pleaded guilty on April 2. In the plea agreement, Reed admitted to attempting to obtain methamphetamine and buprenorphine from another inmate in January 2019. According to an indictment, Reed told an associate he knew a corrections officer willing to bring contraband into the detention center and directed her to pay the corrections officer between $200 and $250.
Upon his release from prison, Reed will serve three years of supervised release.
Co-defendant Jose Ignacio Caro pleaded guilty on May 21 to conspiracy to provide contraband in prison and on Sept. 29 was sentenced to seven years in prison. Co-defendant Joe Anthony Garcia pleaded guilty on March 11 to attempt to provide contraband in prison and is awaiting sentencing. Co-defendants Ashley Silva, Angel Destiny Ortega and Marie Cadney pleaded guilty in March and Dominic Garcia on April 1 to Conspiracy to provide contraband in prison and are awaiting sentencing.
The FBI investigated this case in conjunction with the Southern New Mexico Public Corruption Task Force, the Office of Security Threat Intelligence, the Doña Ana County Detention Center, Las Cruces-Doña Ana County Metro Narcotics Agency and the Las Cruces Police Department. Assistant U.S. Attorneys Marisa A. Ong and Matthew R. Ramirez prosecuted the case.
Domestic Violence Awareness Month featured grant and organizationRead the Press Release
New Albany – United States Attorney Josh J. Minkler announced today’s Department of Justice, Office on Violence Against Women featured grant and grant recipient.
The Enhanced Training and Services to End Abuse in Later Life Program
The Enhanced Training and Services to End Abuse in Later Life Program is authorized by 34 U.S.C. § 12421. The program's purpose is to increase and strengthen training for police, prosecutors, and the judiciary in recognizing, investigating, and prosecuting instances of abuse, neglect, exploitation, domestic violence, and sexual assault against older individuals; provide or enhance services for older victims; create or support multidisciplinary collaborative community responses to older victims; and conduct cross-training for victim service organizations, governmental agencies, courts, law enforcement, and nonprofit, nongovernmental organizations serving older victims.
The Judiciary Courts of the State of Indiana (JCSI) through a collaboration among the Bedford Police and Mitchell Police Departments, the Office of the Prosecuting Attorney of Lawrence County, Hoosier Hills PACT, Hoosier Uplands, and the Solutions Center will develop a multidisciplinary approach to addressing elder abuse in their community.
Project partners will provide training opportunities to assist law enforcement, prosecutors, governmental agencies, victim assistants, and relevant officers of federal, state, tribal, territorial, and local courts in recognizing, addressing, investigating, and prosecuting instances of elder abuse; provide or enhance services for victims of elder abuse; create or support multidisciplinary collaborative community responses to victims of elder abuse; and conduct cross-training for victim service organizations, governmental agencies, courts, law enforcement, and nonprofit, nongovernmental organizations serving victims of elder abuse, neglect, and exploitation, including domestic violence, dating violence, sexual assault, and stalking, who are 50 years of age or older.
JCSI and its partners will also engage in a review of their policies and protocols and agree to put in place a body of policies and protocols, based on multi-disciplinary collaboration, designed to aid in improving in the identification, investigation, prosecution and adjudication of cases of elder abuse, exploitation and neglect, including domestic violence and sexual assault.
For more information about this grant, contact the Office on Violence Against Women at 202/307-6026 and ask for the Outreach and Communications Division.
Denver Woman Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Alicia Morelli, age 35, of Denver, pleaded guilty yesterday afternoon to distribution of heroin resulting in death. Morelli appeared at the change of plea hearing in person and in custody. She was remanded to the custody of the U.S. Marshal at the conclusion of the hearing. The Denver Division of the DEA joins in this announcement.
According to the stipulated facts contained in the plea agreement, on June 19, 2019, Denver Police officers responded to a Denver apartment on the report of an unresponsive female. Upon arrival, first responders located a deceased female lying on the bedroom floor. A syringe, a spoon with liquid, and an amount of suspected heroin were located on the table next to where the woman was lying. The Office of the Medical Examiner for the City and County of Denver later determined the woman died as a result of the “toxic effects of heroin.”
Shortly after learning of the woman’s death, Denver Police Detectives assigned to the DEA’s Front Range Task Force used information from the victim’s phone to contact the defendant, who had sold the victim the fatal dose of heroin on June 18. Between June 25, 2019, and October 30, 2019, an undercover Denver Police Detective made five separate purchases of heroin from the defendant. At the conclusion of the controlled purchase on October 30, 2019, federal task force officers and uniformed officers arrested the defendant.
Morelli is being prosecuted by Assistant U.S. Attorney Peter McNeilly. The guilty plea was tendered before U.S. District Court Judge William J. Martinez. Sentencing is scheduled for April 14, 2021. The case is being investigated by the Denver Division of the DEA and the Denver Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 20-cr-50.
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.
Denham Springs Woman Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
A federal grand jury recently returned a three-count indictment charging Brittany Monroe Knapp, age 34, of Denham Springs, Louisiana, with wire fraud and identity theft. Knapp appeared for her arraignment today and pled not guilty to the pending charges.
According to the indictment, from 2014 to 2019, Knapp worked for Oceans Behavioral, LLC, which is a wholly-owned subsidiary of Oceans Healthcare. Between October 2017 and December 2019, Knapp engaged in a scheme to defraud Oceans Healthcare, wherein she created and controlled multiple PayPal online merchant accounts, and used the Oceans Healthcare corporate credit cards of two employees to send funds electronically to the PayPal online merchant accounts she controlled. Once funds were credited to PayPal accounts, she transferred these funds into her personal bank accounts.
Further, Knapp allegedly forged an employee’s signature on “capital expense request” approval forms, falsely representing that she was authorized to incur the aforementioned fraudulent expenses, then created false and fraudulent invoices in the names of real businesses, falsely representing that said companies had provided the goods and services to Oceans Behavioral. Using these false and fraudulent invoices, Knapp submitted “expense reports” to Oceans Healthcare electronically that falsely represented that real businesses had provided the purchased goods and services to Oceans Behavioral. These expense reports caused Oceans Healthcare to pay for the fraudulent credit card charges.
Throughout the course of the fraudulent scheme, Knapp, without authority, embezzled over $750,000 of Oceans Healthcare funds to which she was not entitled.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Peter J. Smyczek.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Convicted Felon Sentenced to More Than 20 Years in Prison for Drug Trafficking and Firearm Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – Daniel LeBron, 47, of Cross City, Florida, was sentenced on October 26, 2020, to a total of 21 and a half years in federal prison after pleading guilty to possession with intent to distribute more than 50 grams methamphetamine, possession of firearms in furtherance of drug trafficking, and possession of firearms and ammunition by a convicted felon. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The sale and use of methamphetamines in our communities has devastating and wide-reaching effects and must be stopped,” said U.S. Attorney Keefe. “With the help of our federal, state, and local law enforcement partners, we will continue to pursue, prosecute, and punish those who bring these drugs into hometowns across Northern Florida.”
Agents from the Drug Enforcement Administration (DEA) have been working with deputies from the Dixie County Sheriff’s Office (DCSO) to investigate and prosecute individuals who are distributing large amounts of methamphetamine in the Dixie County area. On April 24, 2019, deputies from DCSO conducted a traffic stop on LeBron and arrested him after a search led to the discovery of two ounces of methamphetamine, pills, and more than $10,000 cash. The deputies also recovered the key to a safe from around LeBron’s neck. When DEA agents executed a federal search warrant at his residence, they used the key to open a safe found in his bedroom. Inside the safe, agents located an additional 7 ounces of methamphetamine, more pills, and drug paraphernalia. Agents also discovered two firearms in LeBron’s bedroom; an AR-15 and a loaded .22 caliber rifle. LeBron admitted that he had been dealing methamphetamine.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said ATF Special Agent in Charge Daryl McCrary. “This sentencing is another example that working jointly with our partners is making our communities safer.”
Further investigation by the DEA revealed that LeBron was involved with several others in an ongoing conspiracy to distribute methamphetamine in the Dixie County area. Agents determined that over the course of the conspiracy, LeBron had trafficked over 7 kilograms of methamphetamine to individuals in Dixie County.
“LeBron is a dangerous methamphetamine trafficker who is now off the streets of Dixie County,” said DEA’s Miami Field Division Special Agent in Charge Keith Weis.
LeBron will serve 16 and a half years on the methamphetamine charge followed by 5 years on the firearm in furtherance charge. The Court also ordered 10 years of supervised release following LeBron’s prison term. LeBron is now a five-time convicted felon with prior convictions for 2nd Degree Murder and Escape.
This sentencing resulted from the collaborative work of the Drug Enforcement Administration, the Dixie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - LeBronConvicted Felon Detained on Firearm ChargesRead the Press Release
PROVIDENCE – A Pawtucket man previously convicted in Rhode Island state court on felony drug trafficking and misdemeanor domestic assault charges has been ordered detained in federal custody, having been found to allegedly be in possession of a loaded firearm.
On October 14, 2020, Pawtucket Police Officers observing traffic allegedly observed the driver of a vehicle with Virginia license plates, later identified as Jonathan Reyes, 34, of Pawtucket, to be not wearing a seatbelt. Additionally, officers determined that the license plates displayed on the vehicle were registered to a different make and model. As a result, they initiated a traffic stop.
According to court documents, as officers pulled the vehicle over, they allegedly observed Reyes reach across his body, remove a dark object from his chest, and place it in an area out of the officers’ sight. After being advised of the reason for the traffic stop, Reyes allegedly told the officers that he had just purchased the vehicle. He provided officers with a Bill of Sale that allegedly did not contain a VIN number, date of sale/purchase, or signatures of the seller/buyer. A further check of the registration plates determined the vehicle was improperly registered.
While speaking with Reyes regarding his improperly registered vehicle, the officer noticed a dark satchel/fanny pack in the middle of the back seat. When asked what he removed from his chest area as officers were stopping his vehicle, Reyes allegedly told officers that he had removed his seat belt. Reyes and a passenger were asked to leave the vehicle. During a search of the vehicle officers allegedly discovered a loaded Sig Sauer semi-automatic handgun with an obliterated serial number. Officers also allegedly discovered a pill bottle with a ripped label containing suspected Adderall pills.
Reyes, who allegedly attempted to flee police and allegedly resisted officers as he was being placed under arrest, was charged in Rhode Island state court on firearm, drug and resisting arrest charges.
Today, Reyes appeared in federal court before U.S. District Court Magistrate Judge Patricia A. Sullivan charged with felon in possession of a firearm and ammunition and with felon in possession of a firearm with an obliterated serial number. He was ordered detained in federal custody, announced United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged in the criminal complaint, Reyes faces a statutory sentence of up to 10 years in federal prison to be followed by 3 years of supervised release.
The case in federal court is being prosecuted by Assistant United States Attorneys William J. Ferland and Ly T. Chin.
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Contracting Company Owner Sentenced to 84 Months in Prison and Another Business Partner Charged for Roles in Bribery SchemeRead the Press Release
United States Attorney Ron Parsons announced today that a former contracting company owner was sentenced for his role in a bribery scheme. John Thomas German, Jr., age 37 of Peever, South Dakota, was sentenced to 84 months of imprisonment for a loss exceeding $465,000. He was ordered to pay $100 to the Federal Crime Victims Fund. Following his release from custody, German will serve 3 years of supervised release. U.S. District Judge Charles B. Kornmann presided over the sentencing hearing.
According to court documents, the Dakota Nations Development Corporation (“DNDC”) was an agency of the Sisseton-Wahpeton Oyate Sioux Tribe, a tribal government that received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018. At that time, Daniel Thomas White served as the Director of the DNDC. White’s duties included, among other things, overseeing housing and construction projects of the DNDC.
DNDC established an entity called the SWO Elderly Village Limited Partnership. The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land. On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex. The tribe also committed nearly $3,000,000 to the project.
German, along with two other partners, formed a business on December 15, 2016, called Tatanka Contracting. On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679.
To secure the dirt work contract, German bribed White and White accepted the bribe. Specifically, in November 2017, German corruptly gave, offered, and agreed to give money to Daniel Thomas White, intending to influence and reward White, whom was an agent of the Dakota Nations Development Corporation, in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
White pleaded guilty to his role in the bribery scheme on August 24, 2020. He will be sentenced by Judge Kornmann on May 24, 2021.
Kevin Trio, age 58, a partner of Tatanka Contracting, was recently charged for Making Material False Statements to federal agents who were investigating the business dealings surrounding the Elderly Project. Trio was also charged with Misprision of a Felony. He made his appearance on October 21, 2020, before U.S. Magistrate Judge William D. Gerdes and entered a plea of not guilty. The charges are merely accusations, and Trio is presumed innocent until and unless proven guilty. He was released pending trial.
German was ordered to self-report to the U.S. Marshal’s Service or Bureau of Prisons to begin serving his term of imprisonment at a date to be determined.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Colorado Man Sentenced to Prison for Biodiesel Tax Credit FraudRead the Press Release
A Colorado resident was sentenced to 15 months in prison yesterday for his role in a biodiesel tax credit fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, from 2010 to 2013, Calvin Glover and his coconspirators defrauded the United States of $7.2 million by filing false claims with the IRS for renewable fuel tax credits. Glover and his coconspirators formed a company, Shintan Inc. (Shintan), that purported to be in the business of producing renewable fuels. Glover and his coconspirators then submitted at least 22 claims to the IRS which falsely stated that Shintan had produced over seven million gallons of renewable fuel that qualified Shintan to receive refundable tax credits. Glover signed a number of false documents in support of these claims, even though he had no knowledge of Shintan ever producing any biodiesel or biodiesel mixtures.
For his role in the scheme, Glover received nearly $600,000 of the fraud proceeds, which he did not report on his individual tax returns.
On Aug. 8, 2020, Glover pleaded guilty to one count of conspiracy to defraud the United States.
In addition to the term of imprisonment imposed, U.S. District Judge Raymond P. Moore ordered Glover to serve three years of supervised release and to pay approximately $591,454 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Environmental Protection Agency-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah A. Kiewlicz and Stephen K. Moulton of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cibecue Man Sentenced to Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – On October 8, Corey Chrispin Henry, 25, of Cibecue, Arizona, was sentenced by United States District Judge Dominic W. Lanza to 24 months in prison, followed by 36 months of supervised release.
Last November, Henry pleaded guilty to the felony offense of Assault by Strangling or Suffocating for the September 30, 2018 assault on his significant other. The assault took place on the Fort Apache Indian Reservation. Henry is a registered member of the White Mountain Apache Tribe.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Anthony Church, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-08089-PCT-DWL
RELEASE NUMBER: 2020-092_Henry# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Chinese energy company, U.S. oil & gas affiliate and Chinese national indicted for theft of trade secretsRead the Press Release
HOUSTON – A federal grand jury has returned an indictment alleging corporate entities conspired to steal technology from a Houston-area oil & gas manufacturer, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division.
Jason Energy Technologies Co. (JET) in Yantai, People’s Republic of China; Jason Oil and Gas Equipment LLC (JOG) USA and Chinese national Lei Gao aka Jason Gao, 45, are charged with conspiracy, theft of trade secrets and attempted theft of trade secrets.
Gao previously resided in Houston but is now believed to be in China. A warrant remains outstanding for his arrest.
Also charged in relation to the case is Robert Erford Jr., 41, Dayton, who worked for a Houston-area company. He previously pleaded guilty to conspiracy to commit theft of trade secrets.
On or about Nov. 7, 2019, Gao allegedly met with Erford at the JOG offices located in Houston. According to the indictment, Erford signed a consultancy agreement that Gao provided at that time, indicating Erford would work in China as a consultant to assist JOG in coiled tubing technology. Erford was to be paid $1,000 each day of a 15-day visit, according to the charges.
This agreement allegedly also included a confidentiality provision.
At that meeting, Erford was also provided a letter from the JET general manager inviting him to visit in order to have a technical exchange and discussion, according to the charges. That letter allegedly indicated a goal of helping to promote the company’s manufacturing efficiency, reduce machine failure and increase production capacity.
Without authorization, on or about Nov. 22, 2019, Erford allegedly transferred a victim company document that contained a trade secret from the United States to the China for JET’s benefit. The indictment further alleges that from approximately Nov. 25-29, 2019, Erford held meetings with Gao and JET officials at JET’s offices in China and its coiled tubing facilities. At those meetings, they allegedly discussed coiled tubing technology, including victim company proprietary technology, practices and procedures.
The charges also allege authorities obtained evidence that Erford and Gao used encrypted messaging app WeChat in December 2019 to obtain, collect and copy victim company manufacturing information.
The corporate entities could be fined up to $5 million or three times the value of the stolen trade secret, whichever is greater. Gao faces a possible prison sentence of up to 10 years as well as a $250,000 fine or twice the gross gain or loss.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre of the Southern District of Texas are proseuting the case along with Trial Attorney William Mackie from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Child Sexual Abuser Pleads Guilty to Citizenship FraudRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to unlawfully obtaining United States citizenship.
According to court documents, Miguel Angel Reyes, 39, lied on various immigration forms while applying to become a naturalized United States citizen. Reyes lawfully entered the United States as a minor in 1994 from the Dominican Republic and obtained his legal permanent residence through his parents. By 2016, Reyes had enlisted in the U.S. Navy and was stationed in the Hampton Roads area. In May 2016, Reyes’s then wife reported to authorities that Reyes had sexually assaulted her two minor daughters. While Reyes was under investigation for those charges, he began the process of naturalizing as a United States Citizen and on multiple immigration forms and in multiple immigration interviews falsely denied that he had committed any crimes. Before Reyes pleaded guilty and was sentenced to prison for his offenses, his false statements led to him becoming a naturalized citizen.
Reyes pleaded guilty to one count of unlawful procurement of citizenship. He faces a maximum penalty of 10 years in prison and mandatory loss of his United States citizenship when sentenced on March 9, 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, 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 Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Joseph L. Kosky 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-84.
Broken Bow Man Sentenced to Probation for Lacey Act ViolationRead the Press Release
United States Attorney Joe Kelly announced that Conrad Hueftle, age 28, of Broken Bow, Nebraska, was sentenced today in federal court in Omaha, Nebraska, by United States Magistrate Judge Michael D. Nelson for violating the Lacey Act. The Lacey Act prohibits the trafficking in interstate commerce "tainted" (i.e., taken in violation of a law or regulation) wildlife, fish, or indigenous plants. Hueftle was convicted of one count of the illegal taking of wildlife in interstate commerce and sentenced to two years’ probation. Magistrate Judge Nelson ordered Hueftle to pay $2,500 in restitution and a $5,000 fine. As part of his probation terms, Hueftle shall not hunt, trap, guide, outfit, or otherwise assist or be present in the field with anyone engaging in those activities.
An investigation determined that on November 12, 2016, Hueftle killed a mule deer during the Nebraska firearm deer season upon property located near the Hidden Hills Outfitters (HHO) Lodge in Custer County, Nebraska. Hueftle used a Nebraska Resident Firearm-Restricted Statewide Buck Only permit for taking the mule deer within a Mule Deer Conservation Area (MDCA), a geographic area designated by the State of Nebraska as requiring particularly authorized permits for taking mule deer. Hueftle knew his restricted deer permit did not authorize the taking of mule deer within the MDCA and knew at the time of the taking that he killed the mule deer unlawfully within the MDCA.
Hueftle later transported the deer or parts thereof in interstate commerce by obtaining services of another HHO client to ship the mule deer head, antlers, and cape from Nebraska to a taxidermy business located in Watertown, Wisconsin, for the purpose of converting the trophy parts into a European-style head mount.
Under the terms of his plea agreement, Hueftle abandoned the mule deer taxidermy mount originating from the unlawful 2016 hunt and a trophy-sized 4 X 4 white-tailed deer mount Hueftle killed during the 2014 Nebraska firearm deer season.
The sentencing hearing today is part of the ongoing prosecution of numerous defendants related to violations committed by owners, guides, and clients of Hidden Hills Outfitters. To date, 33 defendants have pleaded guilty and have been sentenced and ordered to pay a total of $580,202 in fines and restitution for underlying violations related to deer taken within baited areas; deer, pronghorn, and wild turkeys taken with weapons or firearms prohibited during their respective hunting seasons; deer taken during closed season hours, from the road, or without a valid permit; and mule deer taken within the Mule Deer Conservation Area.
The operation was a joint investigation conducted by the United States Fish and Wildlife Service, Office of Law Enforcement and the Nebraska Game and Parks Commission, Law Enforcement Division.
Bridgeport Drug Trafficker Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EVAN SHEFFIELD, also known as “Smooth,” 34, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by four years of supervised release, for trafficking heroin, fentanyl and crack cocaine.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation has included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Sheffield, Antonio Small, Louis McDowell, Anthony Small, Michael Munn, Christopher Rodriguez and others were distributing large quantities of heroin, fentanyl and crack cocaine. The investigation further revealed that the co-conspirators were using Sheffield’s residence on Poplar Street in Bridgeport to store, process and package narcotics for street sale, and that Sheffield and his associates kept a firearm at his residence.
Sheffield was arrested on November 6, 2018. On January 14, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin and a quantity of cocaine base (“crack”).
Sheffield, who is released on a $100,000 bond, is required to report to prison on January 5, 2021.
Antonio Small, McDowell, Anthony Small, Munn and Rodriguez have pleaded guilty and await sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty.
Bergen County Man Charged with Money Laundering Conspiracy After Seizure of More Than $5 Million in Narcotics ProceedsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man made his initial court appearance today on charges of conspiring to commit money laundering, U.S. Attorney Craig Carpenito announced.
Ramfis Minaya, 23, of Englewood, New Jersey, is charged by complaint with one count of conspiracy to commit money laundering. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
Since 2019, the U.S. Drug Enforcement Administration (DEA) has been investigating a drug trafficking and money laundering organization (“DTO/MLO”) operating in Mexico, New York, New Jersey, and elsewhere. During the course of this investigation, law enforcement learned that the organization conducts money laundering transactions through the use of couriers with the objective of repatriating narcotics proceeds to narcotics source countries.
In August 2020, law enforcement identified Minaya as a member of the organization, responsible for the transportation and delivery of significant quantities of narcotics proceeds. Since August 2020, law enforcement has seized more than $5 million from money laundering transactions and stashes of narcotics proceeds in which Minaya was directly involved.
For example, on Oct. 27, 2020, law enforcement officers observed Minaya exit his residence and provide another individual (Individual-2) a bag that was eventually determined to contain approximately $100,000 in narcotics proceeds. Officers later saw Minaya exit his home with a bag that was determined to contain another $100,000 in narcotics proceeds.
The charge of conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison, and a $500,000 fine, or twice the amount of money involved in the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents and Task Force Officers with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ashland Couple Sentenced for Methamphetamine TraffickingRead the Press Release
ASHLAND, Ky. – A couple from Ashland, Ky., Franklin Certain, 38, and Rikki Wurts, 24, were sentenced in federal court on Friday, to 120 months and 70 months in prison respectively, before U.S. District Judge David Bunning, for possession with intent to distribute 500 grams or more of methamphetamine.
According to Certain and Wurts’ plea agreements, on April 21, 2019, law enforcement responded to an animal complaint at a residence shared by Certain and Wurts. There, law enforcement found Certain and Wurts in possession of 1,189.3 grams of methamphetamine inside the residence. While in custody, Wurts spoke to a relative about the incident and confirmed that she and Certain were selling the methamphetamine.
Certain and Wurts pleaded guilty in March 2020.
Under federal law, Certain and Wurts must serve 85 percent of his prison sentence. Upon his release, Certain will be under the supervision of the U.S. Probation Office for five years, and Wurts will be under supervision for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; Chief W. Todd Kelley, Ashland Police Department; and Chief Scott Gillum, Flatwoods Police Department, jointly announced the guilty plea.
The investigation was conducted by DEA, Ashland Police Department, and Flatwoods Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Alabama Salesman Sentenced to Prison for Tax EvasionRead the Press Release
A Hoover, Alabama, salesman was sentenced to 24 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Prim F. Escalona for the Northern District of Alabama.
According to court documents and statements made in court, Ivan Scott “Scott” Butler was an automobile industry consultant and sold automobile warranties as an independent salesman. In 1993, Butler stopped filing tax returns and attended tax defier meetings and purchased tax defier materials. Starting in 1998, Butler used several Nevada nominee corporations to receive his income and conceal it from the IRS. In or around 1999, Butler moved hundreds of thousands of dollars to bank accounts in Switzerland and hid his assets in offshore insurance policies held in the name of non-U.S. insurance providers, thus disguising his ownership of the funds. Such accounts, which generally are used as investment vehicles, are commonly known as “insurance wrappers.”
In 2014, Butler converted some of his insurance wrappers into precious metals, which were shipped to Butler and another individual in the United States. Some of those precious metals were given to friends and family for safekeeping. In total, Butler caused a tax loss to the IRS of $1,093,400.
On March 6, 2020, Butler pleaded guilty to tax evasion.
In addition to the term of imprisonment, U.S. District Judge Annemarie Carney Axon ordered Butler to serve three years of supervised release and to pay approximately $1,093,400 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Prim F. Escalona commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Nanette Davis of the Tax Division and Assistant U.S. Attorneys Allison Garnett and Robin Mark, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Afghan National Arrested for 2008 Abduction of American JournalistRead the Press Release
The Department of Justice announced the unsealing of a federal indictment charging Haji Najibullah, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah” with six counts related to the 2008 kidnapping of an American journalist and two Afghan nationals. Najibullah, 44, was arrested and transferred to the United States from Ukraine to face the charges in the indictment. Najibullah will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Katherine Polk Failla.
“Najibullah is charged with taking an American journalist and others hostage in Afghanistan in November 2008. Journalists risk their lives bringing us news from conflict zones, and no matter how much time may pass, our resolve to find and hold accountable those who target and harm them and other Americans will never wane,” said Assistant Attorney General for National Security John C. Demers. “The defendant, like many others before and surely others to come, will now face justice in an American courtroom.”
Acting U.S. Attorney Audrey Strauss said: “Nearly 12 years ago, the defendant arranged to kidnap at gunpoint an American journalist and two other men, and held them hostage for more than seven months,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “The prosecution of Haji Najibullah shows that law enforcement will never stop in our mission to hold accountable those who commit violent crimes against American citizens.”
“Whether someone commits a violent act against an American citizen here at home or overseas, we’ll never stop aggressively pursuing charges against them and, when necessary, seeking their transfer to U.S. custody,” said FBI Assistant Director-in-Charge of the New York Office of the FBI William F. Sweeney Jr. “Najibullah’s reprehensible actions over a decade ago earned him a flight to the U.S. yesterday. Today he arrived in U.S. federal court to face our justice system.”
“The FBI, along with our partners, continue to work tirelessly in the pursuit of justice and to hold accountable those who are responsible for the kidnapping and hostage taking of U.S. citizens abroad,” said Assistant Director Jill Sanborn of the FBI's Counterterrorism Division. “We remain steadfast in our obligation to see justice served, regardless of the how long it may take or where those individuals are located. This investigation and resulting indictment reflects the FBI’s perseverance and commitment to the victims of these heinous acts – We never forget, and we never give up.”
“Haji Najibullah’s alleged kidnapping of a United States journalist and two Afghan nationals was a crime against America, a crime against the freedom of the press, and against the integral work of shining a light on important international affairs,” said Police Commissioner Shea. “While today’s federal indictment reflects events that occurred a dozen years ago, it shows once again that the FBI-NYPD Joint Terrorism Task Force and all of our law enforcement partners will wait as long and go as far as it takes to bring justice.”
According to the Indictment:[1]
On or about Nov. 10, 2008, Najibullah and his co-conspirators, armed with machineguns, kidnapped an American journalist (Victim-1) and two Afghan nationals who were assisting Victim-1 (Victim-2 and Victim-3) at gunpoint in Afghanistan. Approximately five days later, on or about Nov. 15, 2008, Najibullah and his co-conspirators forced the three hostages to hike across the border from Afghanistan to Pakistan, where Najibullah and his co-conspirators detained the hostages. For the next seven months, Najibullah and his co-conspirators held the hostages captive in Pakistan.
During their captivity, Najibullah and his co-conspirators forced the victims to make numerous calls and videos seeking help. For example, on or about Nov. 19, 2008, while in Pakistan, Najibullah and a co-conspirator (CC-1) directed Victim-1 to call his wife in New York. In addition, Najibullah and his co-conspirators made the victims create at least three videos in which they begged for help while surrounded by masked guards armed with machineguns. In one of the videos, Victim-1 — the American journalist — was forced to beg for his life while a guard pointed a machinegun at Victim-1’s face.
Najibullah, 44, of Afghanistan is charged with hostage taking, conspiracy to commit hostage taking, kidnapping, conspiracy to commit kidnapping, and two counts of using and possessing a machinegun in furtherance of crimes of violence. Each of the six counts of the indictment carry a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force. They also thanked the New York and New Jersey Port Authority Police, the Counterterrorism Section of the Department of Justice’s National Security Division, the Legal Attaché Office/U.S. Embassy Kyiv and the FBI's Counterterrorism Division for its assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the extradition.
This prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Sidhardha Kamaraju, and Michael Kim Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Afghan National Arrested for 2008 Abduction of American JournalistRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced the unsealing of a federal indictment charging HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” with six counts related to the 2008 kidnapping of an American journalist and two Afghan nationals. NAJIBULLAH was arrested and transferred to the United States from Ukraine to face the charges in the indictment. NAJIBULLAH will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Katherine Polk Failla.
Acting U.S. Attorney Audrey Strauss said: “As alleged, nearly 12 years ago, the defendant arranged to kidnap at gunpoint an American journalist and two other men, and held them hostage for more than seven months. The prosecution of Haji Najibullah shows that law enforcement will never stop in our mission to hold accountable those who commit violent crimes against American citizens.”
Assistant Attorney General for National Security John C. Demers said: “Najibullah is charged with taking an American journalist and others hostage in Afghanistan in November 2008. Journalists risk their lives bringing us news from conflict zones, and no matter how much time may pass, our resolve to find and hold accountable those who target and harm them and other Americans will never wane. The defendant, like many others before and surely others to come, will now face justice in an American courtroom.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether someone commits a violent act against an American citizen here at home or overseas, we’ll never stop aggressively pursuing charges against them and, when necessary, seeking their transfer to U.S. custody. Najibullah’s alleged reprehensible actions over a decade ago earned him a flight to the U.S. yesterday. Today he arrived in U.S. federal court to face our justice system.”
Police Commissioner Dermot Shea said: “Haji Najibullah’s alleged kidnapping of a United States journalist and two Afghan nationals was a crime against America, a crime against the freedom of the press, and against the integral work of shining a light on important international affairs. While today’s federal indictment reflects events that occurred a dozen years ago, it shows once again that the FBI-NYPD Joint Terrorism Task Force and all of our law enforcement partners will wait as long and go as far as it takes to bring justice.”
According to the Indictment:[1]
On or about November 10, 2008, NAJIBULLAH and his co-conspirators, armed with machineguns, kidnapped an American journalist (“Victim-1”) and two Afghan nationals who were assisting Victim-1 (“Victim-2” and “Victim-3”) at gunpoint in Afghanistan. Approximately five days later, on or about November 15, 2008, NAJIBULLAH and his co-conspirators forced the three hostages to hike across the border from Afghanistan to Pakistan, where NAJIBULLAH and his co-conspirators detained the hostages. For the next seven months, NAJIBULLAH and his co-conspirators held the hostages captive in Pakistan.
During their captivity, NAJIBULLAH and his co-conspirators forced the victims to make numerous calls and videos seeking help. For example, on or about November 19, 2008, while in Pakistan, NAJIBULLAH and a co-conspirator (“CC-1”) directed Victim-1 to call his wife in New York. In addition, NAJIBULLAH and his co-conspirators made the victims create at least three videos in which they begged for help while surrounded by masked guards armed with machineguns. In one of the videos, Victim-1 – the American journalist – was forced to beg for his life while a guard pointed a machinegun at Victim-1’s face.
* * *
NAJIBULLAH, 42, of Afghanistan, is charged with hostage taking, conspiracy to commit hostage taking, kidnapping, conspiracy to commit kidnapping, and two counts of using and possessing a machinegun in furtherance of crimes of violence. Each of the six counts of the Indictment carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force. They also thanked the New York and New Jersey Port Authority Police, the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.
This prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Sidhardha Kamaraju, and Michael Kim Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 27 October 2020
Yuba City Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Stephen Gordon Wood, 41, of Yuba City, was sentenced today by U.S. District Judge John A. Mendez to five years in prison to be followed by 10 years of supervised release for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2012, federal agents discovered that Wood had made available thousands of images of suspected child pornography on a peer-to-peer file-sharing network that operated over the internet. Agents later searched Wood’s home and laptop computer pursuant to a search warrant. A forensic review of Wood’s laptop uncovered at least 792 images and 59 videos of child pornography, including images of prepubescent children being sexually exploited that had been deleted. Wood later admitted to searching for, downloading, and viewing child pornography for at least a year prior to his arrest in 2013.
This case was the product of an investigation by Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew C. Thuesen and Special Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
Wood was ordered to surrender to the Bureau of Prisons or the U.S. Marshals Service on Jan. 11, 2021, to begin serving his sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Washington man charged with COVID-relief fraudRead the Press Release
SEATTLE – A Washington State man was charged in a criminal complaint unsealed today for fraudulently seeking over $1.1 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration, Inspector General Gail S. Ennis of the Social Security Administration, Inspector General Hannibal “Mike” Ware of the SBA, and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, made the announcement.
Austin Hsu, 46, of Issaquah, Washington, was charged by criminal complaint, unsealed today after his initial appearance, in the Western District of Washington with one count of wire fraud. He made his initial appearance before U.S. Magistrate Judge Brian A. Tsuchida.
The complaint alleges that Hsu submitted nine fraudulent disaster loan applications on behalf of five different companies. Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of other companies that he owned and controlled. The complaint also alleges that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
The complaint further alleges that, in support of the fraudulent EIDL loan applications, Hsu made numerous false and misleading statements about the companies’ respective business and operations. For example, Hsu incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. In truth, Blueline had no business or operations.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, Social Security Administration – Office of Inspector General, and Small Business Administration – Office of Inspector General, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
hsu_complaint.pdfWashington Man Charged with COVID-Relief FraudRead the Press Release
A Washington man was charged in a criminal complaint unsealed today for fraudulently seeking over $1.1 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration, Inspector General Gail S. Ennis of the Social Security Administration, Inspector General Hannibal “Mike” Ware of the SBA, and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, made the announcement.
Austin Hsu, 46, of Issaquah, Washington, was charged by criminal complaint, unsealed today after his initial appearance, in the Western District of Washington with one count of wire fraud. He made his initial appearance before U.S. Magistrate Judge Brian A. Tsuchida.
The complaint alleges that Hsu submitted nine fraudulent disaster loan applications on behalf of five different companies. Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of other companies that he owned and controlled. The complaint also alleges that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
The complaint further alleges that, in support of the fraudulent EIDL loan applications, Hsu made numerous false and misleading statements about the companies’ respective business and operations. For example, Hsu incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. In truth, Blueline had no business or operations.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, Social Security Administration – Office of Inspector General, and Small Business Administration – Office of Inspector General, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
United States Files Civil Action to Repatriate Thai Religious Relics Housed at the San Francisco Asian Art MuseumRead the Press Release
SAN FRANCISCO – The United States filed a civil complaint to forfeit and repatriate two religious relics identified as having been illegally exported from Thailand, announced United States Attorney David L. Anderson of the Northern District of California and Homeland Security Investigations (NorCal) Special Agent in Charge Tatum King. The civil complaint can be viewed here: https://go.usa.gov/x7TKF
According to the complaint, the two 1,500-pound hand-carved decorative lintels originally were located in ancient religious temples in Thailand, were removed illegally, and thereafter were exported from Thailand without a license. The complaint alleges the Thai lintels became part of a large collection held by a noted collector of South and Southeast Asian art. The collection was bequeathed to the City and County of San Francisco, which used the collection, including the lintels, for display in the Asian Art Museum. In 2017, the federal government learned that these lintels had been illegally exported from Thailand, rendering them forfeitable as property present in the United States “contrary to law,” and reached out to the Asian Art Museum to negotiate their return.
“U.S. law requires U.S. museums to respect the rights of other countries to their own historical artifacts,” U.S. Attorney Anderson said. “For years we have tried to get the Asian Art Museum to return this stolen artwork to Thailand. With this federal filing, we call on the Museum’s Board of Directors to do the right thing.”
“Returning a nation’s cultural antiquities promotes goodwill with foreign governments and citizens, while significantly protecting the world’s cultural history and knowledge of past civilizations,” said Special Agent in Charge King. “The theft and trafficking of cultural artifacts is a tradition as old as the cultures they represent. Federal importation laws provide HSI the authority to take a leading role in investigating crimes involving the illicit importation and distribution of cultural property and art. Customs laws allow HSI to seize cultural property and art that are brought into the United States illegally, especially when objects have been reported lost or stolen. Through our work in this investigation, we hope to ensure the relationship between the United States and Thailand remains one of mutual respect and admiration. This will help Thailand’s cultural heritage to be fully restored for the appreciation of this and future generations.”
The civil complaint merely alleges that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the items are subject to forfeiture. If the United States prevails, the court will order all interests of any potential claimant forfeit, including the City and County of San Francisco, and the United States will provide Thai officials with information as to the Department of Justice’s remission and restoration process via the Money Laundering and Asset Recovery Section.
Assistant U.S. Attorneys Chris Kaltsas of the Northern District of California and Amanda M. Bettinelli of the Central District of California are prosecuting the forfeiture with the assistance of Irene Zhu. The forfeiture action is the result of an investigation by Homeland Security Investigations.
United States Attorney's Office Establishes Election Day HotlineRead the Press Release
CONCORD, N.H. –United States Attorney Scott W. Murray announced the establishment of an Election Day hotline in coordination with the U.S. Justice Department’s nationwide Election Day program for the general election on November 3, 2020. The hotline number is (603) 230-2503.
United States Attorney Murray has appointed Assistant United States Attorney Seth R. Aframe to serve as the District Election Officer for the District of New Hampshire. In that capacity, AUSA Aframe is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. He is also responsible for monitoring the Election Day hotline while the polls are open. He can be reached by calling (603) 230-2503.
"Every citizen must be able to vote without interference or discrimination and to have that vote counted fairly,” U.S. Attorney Murray said. “The Department of Justice will always protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals. It also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“The voting franchise is the cornerstone of American democracy,” U.S. Attorney Murray said. “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In addition to the hotline, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI in New Hampshire can be reached by the public at (603) 472-2224.
Complaints about possible violations of the federal voting rights laws also can be made directly to the Civil Rights Division’s in Washington, DC by phone at 1-800-253-3931 or by using the complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, citizens should call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
A Federal Election Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.justice.gov/usao-nh.
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U.S. Attorney’s Office Election Day ProgramRead the Press Release
ST. LOUIS, MO— United States Attorney Jeff Jensen announced today that Assistant United States Attorneys (AUSAs) Jennifer Roy and Hal Goldsmith will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSAs Roy and Goldsmith have been appointed to serve as the District Election Officers (DEOs) for the Eastern District of Missouri, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Jensen said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Jensen stated that AUSAs/DEOs Roy and Goldsmith will be on duty in this District while the polls are open. They can be reached by the public at the following telephone number: (314) 539-7733.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (314) 589-2500 or, on election day, at (314) 612-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Jensen said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
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U.S. Attorneys in Mississippi Stand Ready to Protect Voting Rights on Election DayRead the Press Release
Jackson, Miss. - United States Attorneys Mike Hurst of the Southern District of Mississippi and William C. Lamar of the Northern District of Mississippi announced today that they have appointed District Election Officers (“DEO”) in their respective Districts to lead the efforts of their offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.
Assistant U.S. Attorney Ted Cooperstein in the Southern District of Mississippi and Assistant U.S. Attorney Robert Coleman in the Northern District of Mississippi will be responsible for overseeing their respective District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Voting is the cornerstone of our democracy, and ensuring free and fair elections is one of the most important responsibilities we have as U.S. Attorneys. Every citizen must be able to vote without interference or discrimination and to have their vote counted without it being stolen by fraud. We stand ready to act promptly and aggressively to protect the rights of voters and safeguard the integrity of the election process,” said U.S. Attorney Hurst.
U.S. Attorney Lamar said, “The fairness of the election process hinges on our citizens’ ability to fully and fairly exercise their constitutional right to vote without fear, resistance or undue outside influence. We will work diligently to insure that the right of our citizens to vote and to participate in the electoral process will not be impeded.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEOs Cooperstein and Coleman will be on duty in their respective Districts while the polls are open. Cooperstein can be reached at 601-973-2155 and Coleman can be contacted at 662-816-4304.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 601-948-5000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorneys Across California Join District Attorneys to Help Victims of Domestic Violence During the COVID-19 PandemicRead the Press Release
SACRAMENTO, Calif. — The United States Attorneys for the Eastern District of California, Central District of California, and Southern District of California and the District Attorneys of Sacramento, Alameda, Ventura, and San Diego counties launched an online outreach campaign to help victims of domestic violence during the COVID-19 pandemic, announced U.S. Attorney McGregor W. Scott. The United States Attorneys and District Attorneys are joined by Childhelp, a national nonprofit organization aiding victims of child abuse.
The outreach campaign was created to combat unintended consequence of COVID-19 public health measures— an alarming rise in domestic violence with victims trapped at home with their abusers under increasing stress. The National Domestic Violence Hotline has reported an increase in contacts to the hotline during COVID-19. Reports show that physicians are treating more domestic violence injuries and that these injuries are more severe. According to the CDC, roughly 1 in 6 homicide victims are killed by an intimate partner. Research further shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have access to a firearm.
Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. Earlier this month, the Department of Justice announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020, and 13 were brought by the Eastern District of California.
“The U.S. Attorney’s Office regularly works with local law enforcement and this joint outreach is another example of this partnership,” said U.S. Attorney Scott. “With Childhelp, our offices have come together across California to try to reach as many victims of domestic violence as we can, and to help prevent domestic violence by providing resources and raising awareness.”
According to Childhelp Founder & CEO, Sara O’Meara, “The partnership of California’s safety leaders with Childhelp to secure children during COVID-19 is a model for child welfare across the country. All these huge hearts coming together to find children trapped in the shadows of abuse will not only save lives, but create a culture of compassion that will exist long after this virus is behind us.”
The campaign includes a video public service announcement and public awareness messages posted on Facebook, Twitter, and other social media platforms with a new post made each day for one week. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign follows a July campaign addressing domestic violence and child abuse and exploitation by U.S. Attorney Scott, Childhelp, and the District Attorneys of Alameda, Sacramento, and San Diego counties.
U.S. Attorney W. Stephen Muldrow Appoints Election Officer for the District of Puerto RicoRead the Press Release
United States Attorney W. Stephen Muldrow announced today that the Chief of the Financial Fraud & Corruption Section, Assistant United States Attorney (AUSA) Seth Erbe, will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Erbe has been appointed to serve as the District Election Officer (DEO) for the District of Puerto Rico, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Muldrow said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Muldrow stated that AUSA/DEO Erbe will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 787-340-1795 or 787-340-1890.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 787-754-6000 or 787-987-6500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at (800) 253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Muldrow said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney Names District Election Officer to Oversee the Handling of Complaints of Election Fraud and Voting Rights Abuses in November 2020 General ElectionRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Assistant U.S. Attorney Kevin Khasigian will serve as the District Election Officer (DEO) for the Eastern District of California in connection with the Justice Department’s nationwide Election Day Program for the Nov. 3 general election. The DEO is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
In addition, Assistant U.S. Attorney Paul Hemesath will serve as the National Security Cyber Specialist (NSCS) and is tasked with preparing for and responding to digital election threats.
Counties in the Eastern District are: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.
U.S. Attorney Scott said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on Nov. 3, and to ensure that such complaints are directed to the appropriate authorities, DEO Khasigian will be on duty in this District while the polls are open. He can be reached by the public at: (916) 554-2700 and (916) 554-2723.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public in the Eastern District of California at (916) 746-7000 or at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC, by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov.
U.S. Attorney Mike Hurst's Statement on Jackson Police Department’s “Operation Unity”Read the Press Release
“Today, Jackson Police Department Chief James E. Davis announced JPD’s ‘Operation Unity’ to saturate the City of Jackson with state and local law enforcement over the next two weeks. I was told about this operation on Friday by one of my federal prosecutors, and I called Chief Davis to advise him against telling criminals in advance about an upcoming law enforcement operation. Chief Davis did not answer nor return my phone call, so I sent him a letter yesterday, imploring him not to hold a press conference before such an operation, as it could put officers’ lives in danger and criminals would simply hide to avoid detection.”
“The U.S. Attorney’s Office will continue to work closely with JPD and our other partners in order to prosecute violent criminals in Jackson, as we have been doing for the last three years, under Project EJECT. But I pray for our law enforcement and their safety over the next two weeks in Jackson, and I hope that future law enforcement operations will be conducted to have more meaningful, long-term effects.”
U.S. Attorney Hurst’s letter to Chief Davis is attached hereto.
U.S. Attorney Announces Establishment of Civil Rights Enforcement UnitRead the Press Release
ALEXANDRIA, Va. – Today, U.S. Attorney G. Zachary Terwilliger announced the establishment of a new Civil Rights Enforcement Unit in the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA).
“I am proud to announce that EDVA is the first U.S. Attorney’s Office nationwide to have multiple Assistant U.S. Attorneys 100 percent dedicated to enforcing the rights of persons with disabilities under the Americans with Disabilities Act (ADA), and another Assistant U.S. Attorney dedicated full-time to enforcing the rights of servicemembers and veterans under statutes like the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act,” said Terwilliger.
“After taking office as U.S. Attorney in May 2018, I spent time traveling the District to meet organizations with which we have partnered to enforce disability rights,” said Terwilliger. “I discovered two things: One, under AUSA Steve Gordon’s leadership, this office has a nationally recognized ADA enforcement practice; and two, the needs of citizens within the Eastern District’s disability community far outpaced our office’s available resources. As a lifelong dyslexic, this work is near and dear to me and I know that were it not for the ADA, I would not be standing here, in this position, today. I could not be prouder to have the Civil Rights Enforcement Unit now become part of the revered U.S. Attorney’s Office for the Eastern District of Virginia.”
The new unit institutionalizes and expands EDVA’s existing Civil Rights Enforcement Program, which has already had great success in enforcing the rights of persons with disabilities. The unit will combine case-based advocacy with community outreach and training, and will seek to expand our work into assisting veterans with disabilities to ensure that those who fought for our country are not discriminated against based upon a disability.
The Centers for Disease Control and Prevention estimates that nearly 1 in 4 (23.6 percent) adults in Virginia have disabilities. These men and women continue to face innumerable barriers to their full inclusion into all aspects of society. Examples of these barriers include:
- Attitudinal barriers, including the mindset that accommodations, such as those provided for students with learning disabilities, are some kind of special treatment, an unfair crutch, rather than simply providing equal access to people with disabilities;
- Communication barriers, such as failure to provide a sign language interpreter for high stakes interactions with medical personnel at a hospital; and
- Architectural barriers, such as missing ramps at polling places that prevent individuals, including those brave women and men who fought in our military to secure the right to vote for all, from engaging in the fundamental right to vote.
The establishment of EDVA’s Civil Rights Unit honors the 30th anniversary of the landmark Americans with Disabilities Act, which was signed into law by President George H.W. Bush in 1990.
Highlights of EDVA’s ADA Enforcement Program
Ensuring Equal Access to Healthcare. EDVA has developed a leading practice under the Justice Department’s Barrier Free Healthcare Initiative, entering into multiple comprehensive settlement agreements with Lincare, Inc., Spotsylvania Regional Medical Center, Fairfax Nursing Center, and Commonwealth Health and Rehabilitation Center, healthcare providers who failed to provide sign language interpreter services to patients and companions who are deaf, including for high-stakes communications regarding critical medical care.
Ensuring Equal Access to Polling Places. In connection with the Justice Department’s ADA Voting Initiative, EDVA entered into comprehensive settlement agreements with Fauquier County and the City of Chesapeake to ensure that people with mobility disabilities can physically access polling locations so as to not be denied their fundamental right to vote.
Ensuring Physical Access to Places of Public Accommodation. EDVA has successfully resolved multiple matters to ensure physical access to public places to those with mobility disabilities. One significant example is a settlement with the operator of the Crystal City Shops and Underground relating to a pedestrian concourse that is 11 blocks long and three blocks wide to ensure physical accessibility for people with disabilities.
Highlights of EDVA’s Servicemembers and Veterans Initiative
Protecting Our Servicemembers from Unlawful Evictions and Damages Actions. EDVA obtained the largest ever settlement against a property management company for violating the SCRA.
Protecting Our Veterans’ Employment and Reemployment Rights: EDVA has investigated and resolved a matter in favor of an Army Reserve soldier whose civilian employment with Lawn Doctor of Stafford-Culpeper was terminated after the soldier’s absence due to active duty military service. On behalf of the soldier, our office recovered the soldier’s lost income, as well as liquidated damages.
Outreach and Partnerships
In addition to enforcement actions, EDVA will continue to prioritize community outreach and training, which has amplified the impact of our enforcement work by cultivating strong working relationships with leaders from the community and covered entities, educating people and communities about their rights, deterring violations, and informing our enforcement efforts.
To date, EDVA has held more than 60 community outreach and engagement events in support of our ADA efforts, including an annual round table with stakeholders in the Disability Rights Community; a community meeting regarding ADA issues arising as a result of the COVID-19 pandemic; presentations to premiere national and regional ADA conferences; and trainings for significant covered entities, such as the Virginia Association of Community Service Boards, the State Council on Higher Education for Virginia, and the Virginia Department of Corrections.
Finally, we are grateful for the partnership and support of disability rights-focused organizations like the National Association for the Deaf, Arc of Loudon, disAbility Resource Center of the Rappahannock, Arc of Northern Virginia, Northern Virginia Resource Center for the Deaf and Hard-of-Hearing, and the Mid-Atlantic ADA Center.
2020 marks the ADA’s 30th anniversary. The Justice Department continues to advance the nation's goal of equal opportunity, integration, full participation, inclusion, independent living, and economic self-sufficiency for people with disabilities. Through its enforcement and technical assistance tools, the Justice Department strives to eliminate unlawful discrimination against individuals with disabilities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Charged with Conspiring with State Contractor in Multi-million Dollar Unemployment Fraud SchemeRead the Press Release
A couple from Detroit was charged today with participating in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
Charged are Johnny Richardson, 25, and Micahia Taylor, 27.
According to the complaints, Richardson and Taylor conspired with Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency charged in a criminal complaint this past July—to fraudulently release over $2.5 million in government money that was intended to support individuals who lost their jobs during the COVID-19 pandemic.
It is alleged that Richardson and Taylor, either themselves or through others, filed fraudulent unemployment claims over the Internet. Richardson and Taylor then provided Hawkins information on these claims, and Hawkins subsequently used her insider access to fraudulently release payment. Hawkins actions resulted in the fraudulent disbursement of over $2,000,000 of federal and state funds intended for unemployment assistance during the pandemic.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Three men indicted for scheme to use a drone to smuggle contraband into a Georgia state prisonRead the Press Release
DUBLIN, GA: Three men, one of them a prison inmate, have been indicted for attempting to use a drone to smuggle contraband into a Georgia state prison.
George Lo, 27, an inmate currently at Smith State Prison in Glennville, Ga.; his brother, Nicholas Lo, 24, of Dallas, Ga.; and Cheikh Hassane Toure, 24, of Austell, Ga., are charged with Conspiracy, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. George Lo and Nicholas Lo also are charged with Owning an Unregistered Aircraft that was Operated, Attempted to be Operated, or Allowed to be Operated by Another Person; and Nicholas Lo and Toure are charged with Serving or Attempting to Serve as an Airman without an Airman’s Certificate.
“Drone delivered contraband, including cell phones, into correctional facilities, is an emerging threat endangering the safety of those inside and outside the prison walls,” said U.S. Attorney Christine. “Our office works aggressively with law enforcement partners such as the Georgia Department of Corrections to crash-land these dangerous schemes.”
As described in court documents, George Lo, then an inmate serving a state sentence for armed robbery at Telfair State Prison in McRae-Helena, Ga., as early as July 13, 2019, conspired with Nicholas Lo and Toure, and others, to own and operate a Storm Drone 4 kit-built unmanned aircraft without registration or licensing. The Lo brothers discussed using the drone to deliver contraband to Telfair State Prison, and Nicholas Lo and Toure practiced flying the aircraft.
At 1:30 a.m., on Aug. 26, 2019, Telfair County Sheriff’s deputies observed an approaching vehicle turn off its lights and park about 100 yards from Telfair State Prison. During a search of the area, Deputies encountered Nicholas Lo and Toure in a wooded area between the road and prison. The pair possessed a large duffle bag containing the drone, a RadioLink AT9S UAS controller, a Spektrum video monitor and a headset. In addition, the bag contained 14 cell phones, at least 74 grams of tobacco, a digital scale, earbud headphones and firearm ammunition. Nicholas Lo and Toure were taken into custody. Nicholas Lo was remanded to the custody of the Georgia Department of Community Supervision on a probation violation and currently is serving the remainder of a state sentence in Hays State Prison, and Toure was arraigned in U.S. District Court on Tuesday, Oct. 27, where he pled not guilty and remains free on bond from his initial arrest.
Federal law requires registration of unmanned aircraft weighing 0.55 pounds or more, and the Storm Drone 4’s weight was in excess of that requirement. Also, federal law requires the pilot of any unmanned aircraft to hold an airman’s certificate when operating the unmanned aircraft for compensation or hire.
“Simply put, the illicit use of drones for the distribution of contraband is dangerous and illegal,” said Todd Damiani, Regional Special Agent-In-Charge, Department of Transportation Office of Inspector General. “We will continue to partner with law enforcement and prosecutors to pursue those who intentionally violate federal regulations for nefarious activities.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of Transportation Office of the Inspector General, the Georgia Department of Corrections, and the Telfair County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys John P. Harper III and E. Greg Gilluly Jr.
Three Men Charged with Federal Sex Crimes After Attempting Sexual Contact with Children They Met OnlineRead the Press Release
NEWARK, N.J. – Three men have been charged with various sex offenses after attempting to have sexual contact with individuals they believed to be children they met online, U.S. Attorney Craig Carpenito announced today.
Quentin Anthony Blount, 28, of Easton, Pennsylvania, Jesus Modesto Sanchez, 29, of New York City, and Ryan Lee, 35, of Trenton, New Jersey, are charged in separate complaints: Blount is charged with interstate travel with the intent to engage in illicit sexual conduct and attempted sex trafficking of a minor; Modesto Sanchez is charged with interstate travel with the intent to engage in illicit sexual conduct and possession of child pornography; and Lee is charged with attempted online enticement and attempted transfer of obscene materials to minors. Blount and Lee made their initial appearances by videoconference before U.S. Magistrate Judge James B. Clark III on Oct. 23, 2020, and were detained. Modesto Sanchez is expected to make his initial appearance later this week.
“Sexual crimes against children are among the most difficult cases we handle,” U.S. Attorney Carpenito said. “I am proud my office is working hand in hand with our partners at the FBI and the Somerset County Prosecutor’s Office to make sure these predators are identified and prosecuted with all the tools at our disposal.”
“Our children and their online safety is the utmost concern to us at the Somerset County Prosecutor’s Office,” Somerset County Prosecutor Michael Robertson said. “Social media apps allow predators into our homes and as law enforcement, we must do what we can to make it a safer environment. We hope that this operation will continue to be eye-opening for parents. Although, 12 online child predators have been arrested, parents must learn the apps that their children are using and the inherent dangers within.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said. The FBI and our law enforcement partners will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to documents filed in these cases and statements made in court:
Special agents of the FBI and local law enforcement engaged in an operation targeting individuals who use the internet to exploit children. Blount, Modesto Sanchez and Lee were among several individuals identified and arrested.
On Oct. 15, 2020, Blount used an internet-based application to communicate with an individual who he believed was offering her 14-year-old daughter for sex in exchange for money. Unbeknownst to Blount, he was communicating with an undercover law enforcement officer. Blount travelled from Easton to a location in Somerset County, New Jersey, to meet with the mother and the minor. Upon his arrival, he provided a sum of cash to the undercover officer, who Blount believed was the child’s mother, and was arrested by law enforcement.
In mid-October 2020, Modesto Sanchez used an internet-based application to communicate with an undercover officer who Modesto Sanchez believed was a 13-year-old child. During the conversation, Modesto Sanchez offered to perform various sex acts. On Oct. 17, 2020, Modesto Sanchez travelled from New York to a location in Somerset County to meet with the child. Law enforcement identified Modesto Sanchez as he approached the location where he believed the minor to be, at which time he was arrested by law enforcement. A search of Modesto Sanchez’ cellular telephone revealed over 200 videos depicting the graphic sexual exploitation of children.
In mid-October 2020, Lee used an internet-based application to communicate with an undercover officer, who Lee believed was a 13-year-old child. During the conversations, which were sexual in nature, Lee repeatedly asked the individual who he believed was 13 to send him nude photographs, while also sending multiple photographs of his penis to the undercover officer. On Oct. 17, 2020, Lee travelled from Trenton to a location in Somerset County where he believed the minor was located. Law enforcement identified Lee as he approached the location and arrested him.
The charges of attempted sex trafficking of a minor and attempted online enticement each carry a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum penalty of 30 years in prison. The charge of transferring obscene materials to a minor carries a maximum term of 10 years in prison. The charge of possession of child pornography carries a maximum penalty of 10 years in prison. Each count carries a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; detectives with the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael H. Robertson and Chief John W. Fodor, and officers with the Somerville, Bound Brook, and Hillsborough Police Departments with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Blount and Lee: Rahul Sharma Esq., Assistant Federal Public Defender, NewarkSioux Falls Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 26, 2020, by U.S. District Judge Karen E. Schreier.
Rex Leon Burtis, age 57, was sentenced to 144 months in federal custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burtis was indicted by a federal grand jury on May 8, 2019. He was found guilty as a result of a federal trial in Sioux Falls on July 30, 2020.
The conviction stemmed from incidents beginning at an unknown date and continuing until about January 7, 2020, when Burtis and other co-conspirators intentionally conspired and obtained 500 grams or more of methamphetamine through the U.S. Postal Service and resold it to others in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Division of Criminal Investigation, the U.S. Postal Service, the Drug Enforcement Administration, the Sioux Falls Drug Task Force, and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Burtis was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport Man Sentenced to Federal Prison for Downloading and Receiving Child PornographyRead the Press Release
SHREVEPORT, La. - Charles Heath Thompson, 44, of Shreveport, was sentenced today for receipt of child pornography, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge S. Maurice Hicks, Jr. sentenced Thompson to 120 months (10 years) in prison followed by 5 years of supervised release. Thompson pleaded guilty to the charge on January 24, 2020.
In February 2015, federal agents with the Federal Bureau of Investigation (FBI) were monitoring a members-only, dark net website known as Playpen. The website was not accessible through traditional web browsers and the users had to utilize a specific website link and special browsers to access it. The Playpen website was identified as a website in which users would trade, possess, receive, and view child pornography.
According to information presented to the court, while monitoring the Playpen website, the FBI determined that a certain user had actively logged into the website on various days, including February 21, 2015. During their investigation, it was revealed that this particular user had logged into the Playpen website for approximately 11 hours and 23 minutes on that date and had downloaded and received child pornography images. The images reflected minors under the age of 12 years old being sexually abused. After further investigation, FBI agents learned that the user was Charles Heath Thompson and he had in fact received said images from this website on the internet.
The FBI and Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorneys J. Luke Walker and Tennille Gilreath 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.
Self-Styled Diamond and Gold Exporter Sentenced to Nine Years in Prison for Wire Fraud and Commodities FraudRead the Press Release
SAN JOSE—Fritz Kramer was sentenced today to 108 months in prison, and ordered to pay $7,956,267 in restitution, following convictions for wire fraud and commodities fraud, announced U.S. Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge Craig Fair. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
After a six-week trial, on March 19, 2019, a federal jury convicted Kramer, 72, with a last known residence in Norway, of eleven counts of wire fraud and one count of commodities fraud. Evidence at trial showed that Kramer fraudulently solicited funds from dozens of investors, several of whom resided in the Bay Area. Kramer told the investors that their money would be invested in an export project in which Kramer would export gold and diamonds from the Democratic Republic of Congo to Europe, Asia, and the United States. The evidence at trial showed that Kramer falsely promised investors returns of up to ten times the amount invested in as short a time as one month, though no investor ever received a return on their investment. Trial evidence demonstrated that numerous investors sent Kramer millions of dollars based upon Kramer’s false representations regarding the export project.
A federal grand jury indicted Kramer on July 21, 2016, charging him with eleven counts of wire fraud and one count of commodities fraud. The jury convicted Kramer of all counts.
In addition to the prison term and restitution order, Judge Davila ordered Kramer to serve a five-year term of supervised release for the commodities fraud count, and a three-year term of supervised release for the wire fraud counts. The terms of supervised release will run concurrently. The defendant is in custody and will immediately begin serving his sentence.
Assistant U.S. Attorneys Maia Perez and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney-Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Sanford Man Sentenced for Transferring Obscene Material to a MinorRead the Press Release
PORTLAND, Maine: A Sanford man was sentenced in federal court in Portland for transferring obscene material to a minor, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Jon D. Levy sentenced Dylan Neill, 39, to 41 months in prison and three years of supervised release. Neill pleaded guilty in November 2019.
According to court records, in October 2018, Neill used a social media application to send a series of videos and images to a minor under 16 years old. Several of the videos depicted Neill repeatedly penetrating the anus of an adult female with his fingers.
The Sanford Police Department and the FBI investigated the case.
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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rhode Island Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for five bank robberies, including one that resulted in a high-speed chase.
Charles Lamont Wheeler, 47, was sentenced by U.S. District Court Judge Richard G. Stearns to 84 months in prison and three years of supervised release. In March 2020, Wheeler pleaded guilty to five counts of bank robbery. Co-defendant Dong Lee, 50, of Rhode Island, pleaded guilty on Oct. 13, 2020, and is scheduled to be sentenced on Feb. 16, 2021.
Between Sept. 8, 2018 and Sept. 14, 2018, five banks in the Greater Boston area were robbed. Based on the similarity of the robberies, and the descriptions of the robbers provided by bank tellers, it was determined that the same two individuals were responsible for these robberies. On Sept. 14, 2018, Wheeler and Lee robbed a branch of the Abington Bank in Avon. Later in the day, Wheeler and Lee robbed a branch of the Crescent Credit Union in Brockton and were both arrested following a high-speed car chase in Attleboro.
Following an interview and review of banks’ surveillance tapes, it was determined that Wheeler and Lee, were responsible for the robberies of the Santander Bank in Andover on Sept. 8, 2018; Berkshire Bank in Boston on Sept. 8, 2018; Rockland Trust in Braintree on Sept. 12, 2018; Abington Savings Bank in Avon on Sept. 14, 2018; and Crescent Credit Union in Brockton on Sept.14, 2018.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Brockton Police Chief Emanuel Gomes; Avon Police Chief Jeffrey J. Bukunt; Braintree Police Chief Mark W. Dubois; and Andover Police Chief Patrick Keefe made the announcement today. Assistant United States Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.