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Tuesday 27 October 2020
Report Detailing Government Efforts to Combat Robocalls Released to CongressRead the Press Release
The Department of Justice has announced that an interagency working group convened by Attorney General William P. Barr released a report to Congress on efforts to stop the scourge of illegal robocalls affecting the American public. The report − composed pursuant to the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (the TRACED Act) that President Trump signed into law in January 2020 − details the working group’s extensive work to end the harm caused by illegal robocalls, especially fraudulent robocalls that disproportionately affect elderly Americans, including through legal action, regulatory efforts, and private industry collaboration.
“The Department of Justice and its partners are committed to halting unlawful robocalls,” said Attorney General William P. Barr. “As this report illustrates, we are working hand-in-hand with our federal and state partners to successfully halt the flow of robocalls domestically and abroad. Americans should not have to put up with annoying and abusive robocalls, and the Department will continue to work to protect the American public, and particularly American seniors, from these illegal and harassing schemes.”
The report describes enforcement actions taken by the Department of Justice, including two civil actions filed in January 2020 against U.S.-based Voice over Internet Protocol (VoIP) companies. The cases alleged that two sets of defendants engaged in wire fraud schemes by knowingly serving as “gateway carriers” for fraudulent robocalls from foreign customers targeting Americans, many of whom are elderly or otherwise vulnerable. In both cases, the federal courts issued injunctions against the defendants, prohibiting them from carrying robocalls to U.S. consumers and selling U.S. phone numbers. In the months following the department’s action in these cases, the number of robocalls that reached U.S. consumers sharply declined.
The report also describes how the Federal Trade Commission (FTC) is using all of the tools at its disposal to fight illegal calls, including filing an action jointly with the Ohio Attorney General in December 2019 against VoIP service provider Globex for providing the means to make allegedly illegal robocalls. The action resulted in a settlement that requires Globex and its U.S.-based subsidiaries to pay $1.95 million and to abide by client screening and monitoring provisions. According to the report, since the National Do Not Call Registry began accepting registrations in 2003, the FTC has brought almost 150 enforcement actions against more than 500 companies and more than 400 individuals, and the FTC has collected over $160 million in equitable monetary relief and civil penalties.
The report further describes the actions of the Federal Communications Commission (FCC) to combat illegal robocalls. The actions include enforcement of laws that prohibit spoofing activities, which occur when a caller deliberately falsifies the information transmitted to caller ID displays to disguise the caller’s identity. FCC actions also include a June 2020 Notice of Apparent Liability proposing a forfeiture of $225,000,000 against persons allegedly responsible for making, in the first quarter of 2019 alone, approximately one billion spoofed robocalls that transmitted prerecorded messages falsely claiming affiliation with a major health insurance company.
The report highlights how the onset of the COVID-19 pandemic greatly increased the importance of the working group’s collaboration as illegal calls bombarded consumers with bogus coronavirus-related claims. As a result, in March 2020, the Department of Justice, the FCC, the FTC, and other members increased joint efforts to identify and halt fraudulent robocall campaigns that exploited the health crisis.
The report notes the important role played by state attorneys general, who serve the public by tracking down illegal robocallers and violators of telemarketing laws, often based on alerts from the private telecommunications industry. The report also highlights the important role that private industry groups can play in ending unlawful practices that negatively impact the American telecommunications infrastructure.
The Department of Justice’s work to combat robocalls falls within its broader efforts to combat elder fraud schemes, including those perpetrated by transnational criminal organizations. As part of this work, the department conducts outreach around the country to educate seniors about the various types of elder fraud schemes. With this information, seniors and other members of the public are better empowered to protect themselves and their loved ones.
If you or someone you know is 60-years-old or older and has been a victim of financial fraud, whether through robocalls or other schemes, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This hotline, managed by the Department of Justice’s Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step and can help authorities identify those who commit fraud and can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
Registered Nurse Who Stole Fentanyl and Tampered with Patients’ Medicine Sentenced to Two Years in Federal PrisonRead the Press Release
TEXARKANA, Texas – A 38-year-old Bowie County man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Clifford Russell Harris pleaded guilty on June 16, 2020, to tampering with a consumer product and was sentenced to 24 months in federal prison by U.S. District Judge Robert W. Schroeder III on Oct. 22, 2020.
According to information presented in court, Harris, who was a registered nurse at the time, broke into the secure drug storage area at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. Specifically, Harris extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Because the vials were labeled as fentanyl but did not contain fentanyl, Harris placed patients in danger of death or bodily injury. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk. In the five months leading to his fentanyl theft, Harris stole 600 vials of morphine and Demerol from Healthcare Express where he was entrusted with the receipt and storage of those controlled substances.
This case was investigated by the Texarkana, Texas, Police Department’s Special Investigations Unit with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
R.I. Man Admits to Fraudulently Seeking $4.7 Million in COVID-19 Stimulus LoansRead the Press Release
PROVIDENCE – A Middletown, R.I., man currently serving a term of federal supervised release having been convicted and incarcerated for robbing four banks, admitted in federal court in Providence today to fraudulently seeking more than $4.7 million in Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act was passed by Congress to assist businesses impacted by the pandemic.
Michael C. Moller, 41, admitted that he applied for and received nearly $600,000 in PPP loans he claimed were to be used to pay employees for a Fall River, MA, businesses he operated, “Top Notch Tile.” FBI and IRS Criminal Investigation agents determined that “Top Notch Tile” was not incorporated with the Massachusetts Secretary of State, nor could investigators locate any tax or bank records for the company.
Moller admitted that he filed a PPP loan application in his name, and that he caused other applications to be filed in the name of his father and his girlfriend’s brother. As a result of those fraudulent bank loan applications, financial institutions provided Moller a total of $599,251 dollars in stimulus PPP loans he was not entitled to receive.
Additionally, Moller admitted that acting alone, or with family members and associates, he caused eleven fraudulent PPP loan applications to be filed in the name of his girlfriend’s son. The money was to pay employees of “Alves Top Notch,” a Fall River-based business for which investigators could find no records. Among the eight applications were three nearly identical ones filed with different financial institutions, each seeking $734,300 in SBA guaranteed PPP loans. None of the eleven fraudulent applications filed in the name of Moller’s girlfriend’s son resulted in the disbursement of PPP loans.
Appearing today before U.S. District Court Judge Mary S. McElroy, Moller pleaded guilty to bank fraud, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.
Moller, who remains detained in federal custody, is scheduled to be sentenced on January 19, 2021.
According to court records, Moller was convicted in the District of Massachusetts in 2010 for fraud and received a sentence of twenty-four months of supervised release. During his term of supervised release, Moller was convicted of four counts of bank robbery and sentenced to 108 months imprisonment and three years of supervised release. His term of supervised release is scheduled to terminate in July 2022.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI and IRS-Criminal Investigation, with the assistance of the SBA Office of Inspector General and the FDIC Office of Inspector General.
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Pryor man arrested on allegations of first degree murderRead the Press Release
BILLINGS – A Pryor man was arrested Tuesday in Billings by the Billings Police Department on a federal arrest warrant alleging that he murdered a person with premeditation on the Crow Indian Reservation, U.S. Attorney Kurt Alme said today.
A criminal complaint unsealed Tuesday alleges Taylor Leigh Plainbull, 27, committed first degree murder.
Plainbull is scheduled to have an initial appearance on Wednesday in U.S. District Court.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
According to the criminal complaint and affidavit filed in support of the criminal complaint, Victim 1, an adult female, was driving from Pryor to Billings in a vehicle with Victim 2, and adult male, and Victim 3, a minor child. Plainbull had previously been in a relationship with Victim 1. Victim 1 was driving westbound on Highway 416, also known as Blue Creek Road, when she was passed by Plainbull, who was driving eastbound towards Pryor. Plainbull was driving what is believed to be a stolen truck. The owner of the stolen truck reported that it contained firearms, including a semiautomatic pistol.
According to the criminal complaint and affidavit, Plainbull turned around and chased after Victim 1, then passed her vehicle and stepped on the brakes, forcing Victim 1's vehicle off the road into a ditch. The weather was cold and snowy, and Victim 1 was unable to drive the car out of the ditch. Victim 1 locked the doors, while Victim 2 called 911, and at the same time Plainbull approached the car brandishing a pistol.
According to the criminal complaint and affidavit, Victim 2 reported hearing gunshots. Victim 2 sustained an injury to his forehead. Based on a preliminary examination of the scene, it appeared that Victim 1 was struck by at least one bullet. She was pronounced dead at the scene. Victim 3 exited the vehicle. Plainbull grabbed Victim 3 and drove away in the truck. Victim 3 was located later.
The FBI is investigating the case.
PACER case reference. 20-95.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Previously Convicted Felon Pleads Guilty to Possessing FirearmRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, Bilal Abdus-Salaam, 38, of Capitol Heights, a multi-time convicted felon, including for previous firearms offenses, was released from prison in June 2020. Less than a month later, on July 16, he entered two Federal Firearms Licensees in the Eastern District of Virginia. Abdus-Salaam was accompanied by his wife at both locations, and video surveillance showed Abdus-Salaam handling multiple firearms, to include a rifle and a pistol, that his wife went on to purchase.
On August 21, a search warrant was executed on his wife’s residence in Maryland, where Abdus-Salaam received mail and was observed on multiple occasions in late July and early August 2020. During the search, law enforcement recovered the two firearms purchased in Virginia in July 2020, along with an additional rifle, a rifle upper receiver, firearm magazines, ammunition, and various other items associated with firearms.
Abdus-Salaam faces a maximum penalty of 10 years in prison when sentenced on Feb. 23, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Special Assistant U.S. Attorney Rachel Roberts 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. 1:20-cr-244.
Pittsburgh Resident Indicted for Concealing Marriage in Order to Continue to Receive Social Security BenefitsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to her theft of Social Security benefits, United States Attorney Scott W. Brady announced today.
The three-count Indictment charges Jacqueline Waters, 55, with one count of theft of government property, one count of make a false statement to retain Social Security Income benefits, and one count of fraudulent concealment to retain Social Security Income benefits. According to the Indictment, between July 2004 and July 2018, Waters concealed from the Social Security Administration a common law marriage that would have affected her continued eligibility for Social Security Income benefits by repeatedly failing to disclose that she lived with her spouse, including during a Social Security redetermination on or about May 14, 2018.
The law provides for a maximum total sentence of not more than ten years in prison for theft of government property and five years in prison for the false statement and fraudulent concealment charges. The maximum fine per count is $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Social Security Administration – Office of Inspector General conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist sentenced for presenting forged prescriptions opioid and anti-malaria prescription drugsRead the Press Release
St. Louis, MO – Tamara Jo Nyachira, of Pittsburg, Kansas, was sentenced today to three years’ probation, a $5,000 fine and 100 hours of community service after pleading guilty to obtaining narcotic opioid prescription drugs with forged prescriptions before Chief United States District Judge Rodney W. Sippel.
According to her plea agreement, Nyachira was a pharmacist for a large pharmacy chain, and worked at various pharmacies throughout Missouri, including one in Farmington, Missouri. Nyachira admitted that she used a forged prescription to fraudulently obtain Codeine/butalbital/acetaminophen/caffeine (sometimes marketed as Fioricet® with Codeine), which is an opioid drug and Schedule III controlled substance.
Further, Nyachira admitted in her plea agreement that during March of 2020, Nyachira used several forged prescriptions to obtain two drugs, amoxicillin clavulanate potassium (sometimes marketed as Augmentin®) and hydroxychloroquine sulfate (sometime marketed as Plaquenil®). In her plea agreement, defendant admitted that she wanted to stockpile these drugs for herself and her family, and use them later if she or her family were directly exposed to or infected by the COVID-19 virus. Defendant admitted that her conduct was wrongful in that it helped create shortages of these drugs, which are often used by elderly or low-income patients with chronic conditions such as lupus or arthritis.
“Nyachira allegedly forged prescriptions and fraudulently obtained opioids and other drugs, thereby limiting availability of medications to patients legitimately reliant on these drugs,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We are dedicated to working with local, state, and federal officials to hold accountable individuals who engage in such illegal activities.”
This case was investigated by Pittsburg, Kansas Police Department, the Branson, Missouri Police Department, and the Farmington Police Department, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Missouri Pharmacy Board, the Eastern District of Missouri OPIOID Task Force, and the Eastern District of Missouri COVID-19 Task Force, a multi-agency working group committed to fighting COVID-19 frauds and scams that is operated under the leadership of the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
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Owner of Local Technical Training School Sentenced for Defrauding the VA out of almost $30 Million in G.I. Bill Education BenefitsRead the Press Release
Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – October 27, 2020
SAN DIEGO – Nimesh Shah, owner of Blue Star Learning, a technical training school in San Diego, was sentenced in federal court today to 45 months in custody as a result of a multi-year scheme that defrauded the Department of Veterans Affairs out of almost $30 million in Post-9/11 G.I. Bill benefits.
As laid out in Shah’s plea agreement and court documents, Shah took extraordinary efforts to deceive regulators from the Department of Veterans Affairs (VA) to ensure the school continued to receive VA funds. Shah provided the VA with false documents, invented fake students and created fake student files. He provided spreadsheets with false employment information and fraudulent contact information for purported graduates of the school and their made up employers. He purchased cellular telephones so that he and his employees could field VA regulator calls to purported employers of school graduates, and hired individuals overseas to pretend to be satisfied Blue Star Learning students in response to VA regulator emails. As laid out in court records, Shah’s scheme appears to be one of the largest Post-9/11 G.I. Bill fraud cases that has been prosecuted around the country.
Shah was also ordered to forfeit $3,076,361.77 and to pay the VA $29,350,999 in restitution. Shah’s wife Nidhi Shah, who was the vice president and director of education at the school, was sentenced to two years of probation as a result of lying to investigators in the course of the investigation into the school.
The Post-9/11 G.I. Bill provides veterans and other eligible individuals educational assistance, including tuition, housing costs, and other educational costs and fees. The VA pays tuition and fees directly to the school where the veteran is enrolled, and if the veteran is enrolled on more than a half time basis, the VA additionally provides a monthly housing allowance directly to the veteran, as well as money for books, supplies, equipment and other educational expenses. In October 2011, the VA began paying Post-9/11 G.I. Bill benefits for individuals pursuing non-institute of higher learning, non-degree programs, including non-accredited, non-college degree schools like Blue Star Learning.
In order to receive funds from the VA under the Post-9/11 G.I. Bill, Blue Star Learning was required to have at least 15 percent non-veterans for each course for which the VA was paying educational benefits - a rule called the “85/15 Rule.” As laid out in court records, the “85/15 Rule” is designed to minimize the risk that veterans’ benefits are wasted on educational programs of little value and to ensure that the cost of a course is acceptable and paid on the open market by non-veterans. As part of its yearly accreditation process, Blue Star Learning was also required to provide vocational attainment data for graduates of the school to VA regulators that corroborated employment statistics posted on the Blue Star website. This data was requested to ensure that individuals attending the school were getting jobs in the fields in which they were receiving training, as a measure of quality.
As part of his multi-year fraud scheme, between March 2016 and June 2019, Shah lied to the VA about the percentage of non-veteran students at the school, and made up fake non-veteran students – when in fact nearly all of their business came from veteran students. He also created spreadsheets of fraudulent employment data, including false emails, phone numbers, jobs and employers to support made-up graduate employment data. And he falsely claimed that all of the students at the school were enrolled full-time. Shah’s lies ensured that Blue Star Learning received millions of dollars in VA education benefits that the school was not entitled to.
Blue Star Learning, which charged up to $20,560 per course, had close to 100% veteran students. Shah nonetheless repeatedly misrepresented to the California State Approving Agency for Veterans Education (“CSAAVE”) and the VA that Blue Star Learning was in compliance with the “85/15 Rule.” Shah took extraordinary efforts to deceive VA regulators regarding non-veteran students at the school, including creating fake enrollment agreements and student files for the purported non-veterans in each program. Shah emailed the VA 48 fraudulent enrollment agreements for fictitious people he represented were non-veteran students at Blue Star Learning, complete with fraudulent dates of birth, social security numbers, addresses, phone numbers and emails for each fraudulent non-veteran student.
Shah knew that the vast majority of Blue Star Learning graduates did not obtain jobs in the fields in which they were purportedly receiving training, and that the employment statistics on Blue Star Learning’s website were false. Shah nonetheless submitted fraudulent spreadsheets to CSAAVE claiming that all of the Blue Star Learning students listed were employed in the informational technology field. On these spreadsheets, Shah provided fraudulent phone numbers, email addresses, employers, and employer contact information for each student. Shah then took his fraud a step further: Because he knew CSAAVE could contact the students/employers to verify the data submitted, Shah hired individuals to create the fraudulent email addresses for the Blue Star Learning students, and directed these individuals, who resided overseas, to answer emails received at the fraudulent email addresses pretending to be satisfied Blue Star Learning graduates working in the information technology field. Shah additionally created 30 fictitious companies that he listed as the employers on the fraudulent spreadsheets, and hired individuals to create fraudulent email addresses and domain names for each fictitious company. Shah directed a Blue Star Learning employee to purchase 30 cellular telephones, one for each fictitious employer, and had employees of Blue Star Learning create voicemail greetings on each cellular telephone so that it would appear that the fraudulent businesses were legitimate if CSAAVE called to check.
“This was an extraordinary fraud in terms of the elaborate deception, the years-long duration and the amount of money involved,” said U.S. Attorney Robert Brewer. “This defendant knowingly violated the rules to enrich himself, and for that he will go to prison.” Brewer commended prosecutor Michelle Wasserman and agents from the Department of Veterans Affairs Office of Inspector General and Federal Bureau of Investigation for excellent work on this case.
“The FBI worked with our partners at the VA-OIG to investigate this elaborate fraud scheme resulting in a loss of over $29 million dollars,” said FBI Special Agent in Charge Suzanne Turner. “Fraud affecting educational benefits meant for our military veterans will not be tolerated. Today, justice was served against the Shahs, the owners of Blue Star Learning, who put greed and deceit above the men and women of our U.S. military.”
Rebeccalynn Staples, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Western Field Office, stated, “This case demonstrates VA OIG’s commitment to aggressively pursuing individuals and schools who seek to exploit the education benefits earned by veterans. VA OIG will continue to protect the integrity of the VA education benefits program by identifying unscrupulous schools who take advantage of veteran students. VA OIG urges anyone with knowledge of possible fraud against VA to contact the VA OIG Hotline Division at 1-800-488-8244.”
As a result of Shah’s fraud, the VA issued over $11 million in tuition payments to Blue Star Learning, and over $18 million in housing allowances and stipends. In total, as a result of Shah’s fraud, the VA lost $29,350,999.
DEFENDANT Case Number 19CR4551-JAH; 19CR4550-JAH
Nimesh Shah Age: 37 San Diego, CA
Nidhi Shah Age: 35 San Diego, CA
SUMMARY OF CHARGES
Nimesh Shah: Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
Nidhi Shah: False Statement – Title 18 U.S.C., Section 1001
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Department of Veterans Affairs Office of Inspector General
Federal Bureau of Investigation
One More Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MARVEL FRANCOIS (“FRANCOIS”), age 51, of Houma, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty plea, on May 17, 2020, FRANCOIS, along with participants Damian Labeaud (“Labeaud”), Bernell Gale (“Gale”), Troy Smith (“Smith”), and another passenger, participated in a staged accident in the vicinity of Louisa Street and Chickasaw Street. Labeaud fled the scene. FRANCOIS falsely reported to the NOPD that she had been driving and that the tractor-trailer had struck her vehicle. Labeaud, Gale, and Smith were also charged and already pled guilty.
According to documents filed in federal court, the passengers were referred to attorneys who paid Labeaud to stage the accidents. In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits.
FRANCOIS faces a maximum sentence of five (5) years. Upon release from prison, FRANCOIS also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for February 24, 2021, before U.S. District Judge Lance M. Africk. Gale and Smith are also set to be sentenced before Judge Africk on February 10, 2021. Damian Labeaud’s sentencing is set for February 18, 2021, before U.S. District Judge Eldon E. Fallon.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.
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Okemah Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Mike Avery Thompson, Jr., age 30, of Okemah, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 27, 2020, within the Eastern District of Oklahoma, in Indian Country, Mike Avery Thompson, Jr., an Indian, did assault L.H. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States at the plea hearing.
North Dakota Man Is Sentenced to Prison for Investment SchemeRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Mark Nicholas Pyatt, 44, of North Dakota, was sentenced to 37 months in prison for an investment scheme that defrauded victims out of more than $200,000. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr., also ordered Pyatt to serve three years under court supervision after his release from imprisonment, and explained that a forthcoming order will obligate Pyatt to pay approximately $274,506 to his victims as restitution. Pyatt previously pleaded guilty to wire fraud.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Sheriff Greg Christopher of the Haywood County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and court proceedings, beginning as early as October 2017 and continuing through at least February 2019, Pyatt, often using the alias Daniel G. Randolph, solicited friends and acquaintances to invest their money in a “communal account,” or “fund,” held by his company, Winston Reed Investments, LLC (WRI). Court documents show that Pyatt represented to his victim-investors that he had made significant amounts of money through his own investing and day trading activities, and that he wanted to invest the victims’ money using a similar strategy so that they could experience the same wealth that he enjoyed.
According to court records, in order to induce the victims to part with their money, Pyatt made a number of false and fraudulent representations. For example, Pyatt told the investors that he would make trades with the investors’ money on a daily basis, that he would be trading futures and “forex,” and that he would specialize in energy-related stocks. Pyatt also falsely promised large returns on investments, assuring victims that the “low average expected return on investments” would be 15% per month, with a goal of a return of 100% in three to four months. Pyatt represented to his victims that he would receive a fee for WRI’s services of just 10% of all gains, and that he would not charge his investors any fees if he did not make a profit.
According to court records, in furtherance of the fraud, Pyatt made false misrepresentations to victim-investors about the fund’s performance. For example, for months, Pyatt regularly provided his investors with false updates that purported to describe his trading activity and the considerable positive returns he was earning on their investments. Then, in February 2019, after reporting substantial monthly gains to his investors for more than a year, Pyatt notified his investors by email that a “complete and catastrophic” loss had occurred, and that their money was gone. Pyatt falsely claimed that he was investigating the loss with the assistance of a forensics firm, and told his investors that the loss was due to a technical oversight or failure by the brokerage firm holding the investment account. Court records show that all of these representations were false, and, in reality, the money was gone because Pyatt spent it.
Contrary to the promises he made to victim-investors, Pyatt simply stole the vast majority of the investors’ money. Specifically, Pyatt misappropriated over $100,000 to pay for personal expenses, including to buy jewelry, groceries, cigars, and a Chevrolet Corvette. Pyatt also withdrew tens of thousands of dollars in cash, and made several Ponzi-style payments to his investors, falsely implying that the returned funds were trading profits.
During a substantial portion of the scheme, Pyatt resided in Haywood County and targeted local victims. In total, Pyatt stole well over $200,000 from his victim investors, many of whom were at, or near, retirement age.
In making today’s announcement, U.S. Attorney Murray commended the Haywood County Sheriff’s Office, the SBI, and HSI for their investigation of the criminal case, and thanked the Commodity Futures Trading Commission (CFTC) and the U.S. Securities & Exchange Commission (SEC) for their invaluable assistance.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
North Carolina Highway Patrolman Named International Association of Chiefs of Police and Motorola Solutions 2019 Trooper of the YearRead the Press Release
RALEIGH, N.C. – Yesterday, the International Association of Chiefs of Police (IACP) and Motorola Solutions named Trooper Daniel Harrell from the North Carolina State Highway Patrol as the IACP/Motorola Solutions 2019 Trooper of the Year. He was chosen from among four very worthy finalists serving state and provisional agencies in the United States and Canada.
In the announcement, the IACP and Motorola described Trooper Harrell’s bravery and dedication to serving the people of North Carolina:
“On Monday January 14, 2019, at approximately 5:21 p.m., Trooper Daniel Harrell, a five-year veteran of the North Carolina State Highway Patrol, was patrolling his assigned area of Wilson County. As Trooper Harrell was finishing a traffic stop, he observed a vehicle traveling north bound on US301 improperly towing another vehicle. Trooper Harrell conducted a traffic stop, made contact with the driver and passenger, and informed the driver of the infraction. Both the driver and passenger were unable to produce their licenses or identification and drove off in an attempt to escape Trooper Harrell. A short chase ensued, then the driver pulled over. As Trooper Harrell was preparing to exit his patrol car, the driver leaned out of his vehicle and opened fire. The suspect fired approximately four shots, striking Trooper Harrell twice in the face. Trooper Harrell was able to immediately return fire and continued to stay engaged while providing vital information to the communications center. The suspect then drove away and Trooper Harrell continued to pursue the suspect. After a short chase, the suspect stopped to disconnect the towed vehicle. Trooper Harrell engaged the suspect with gunfire, however the suspect drove off again. The suspect then realized that they could not outrun Trooper Harrell. At this time, the suspect made a U-turn with the vehicle and collided head on with Trooper Harrell’s vehicle. The collision disabled Trooper Harrell’s patrol car. Despite this, Trooper Harrell continued to engage the suspect with gunfire again before the suspect was able to flee on foot. Thanks to the description Trooper Harrell provided, the involved suspects were located and arrested the night of the incident and no further persons were injured.”
United States Attorney Higdon commented: “Trooper Daniel Harrell is truly a hero; a dedicated public servant who laid his life on the line to enforce the Rule of Law and to protect the citizens of North Carolina. He represents the selfless men and women of the North Carolina Highway Patrol and law enforcement agencies all across North Carolina who give their all to keep our communities safe every day. The United States Department of Justice and the United States Attorney’s Office congratulate Trooper Harrell as he receives this great honor and we thank him for his service every day.”
The individual who attempted to kill Trooper Harrell was prosecuted for firearms violations here in the United States District Court for the Eastern District of North Carolina. He received a sentence of ten years. See here for more details. Charges related to the attempted murder of Trooper Harrell are pending the North Carolina state court system.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00304-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
North Carolina Couple Indicted for Failing to Pay Employment Taxes and Failure to File Tax ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Greensboro, North Carolina, returned an indictment today, charging a North Carolina couple with federal employment tax and individual income tax violations, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
As alleged in the indictment, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated an orthopedic practice that the indictment refers to as “Sandhills Orthopaedic.” The indictment further alleges that his wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations, including payroll and employment tax obligations. Susan Rice also purportedly owned and operated a truffle business.
The Rices have been charged with a variety of tax offenses, including conspiring to not pay any taxes on their business and personal income and to defraud the United States by failing to pay employment taxes owed by Sandhills Orthopaedic. Between 2007 and 2014, the Rices allegedly withheld employment taxes from Sandhills Orthopaedic’s employees, but failed to pay over approximately $580,000 in social security and other tax withholdings to the IRS. The indictment also alleges that the Rices did not file individual income tax returns for the 2014 through 2016 tax years, despite earning gross income in excess of the filing threshold, and that James Rice did not file corporate tax returns for an entity over which he was president for the 2014 through 2017 tax years.
If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count. They also face one year in prison for each of the charges relating to failing to file individual and corporate tax returns. They are also subject to additional monetary penalties, supervised release, and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Michael Jones of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Couple Indicted for Failing to Pay Employment Taxes and Failure to File Tax ReturnsRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment today, charging a North Carolina couple with federal employment tax and individual income tax violations, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
As alleged in the indictment, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated an orthopedic practice that the indictment refers to as “Sandhills Orthopaedic.” The indictment further alleges that his wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations, including payroll and employment tax obligations. Susan Rice also purportedly owned and operated a truffle business.
The Rices have been charged with a variety of tax offenses, including conspiring to not pay any taxes on their business and personal income and to defraud the United States by failing to pay employment taxes owed by Sandhills Orthopaedic. Between 2007 and 2014, the Rices allegedly withheld employment taxes from Sandhills Orthopaedic’s employees, but failed to pay over approximately $580,000 in social security and other tax withholdings to the IRS. The indictment also alleges that the Rices did not file individual income tax returns for the 2014 through 2016 tax years, despite earning gross income in excess of the filing threshold, and that James Rice did not file corporate tax returns for an entity over which he was president for the 2014 through 2017 tax years.
If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count. They also face one year in prison for each of the charges relating to failing to file individual and corporate tax returns. They are also subject to additional monetary penalties, supervised release, and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Michael Jones of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Newport Resident Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE – A 39 year-old Newport man has been ordered detained following his arrest this morning on federal child pornography charges.
Craig M. Mulvey was arrested as Homeland Security Investigations (HSI), members of the Rhode Island State Police Internet Crimes Against Children Task Force, and Newport Police executed a court-authorized search of the Newport residence where Mulvey lives. During the search, it is alleged that numerous images and videos containing child pornography were located on a laptop belonging to Mulvey.
Additionally, in a segregated compartment in a nightstand located in Mulvey’s bedroom, investigators located two pairs of soiled little girl’s underwear and a thumb drive.
According to court documents, in February 2020, HSI agents in Providence received information from HSI agents in Ottawa that an image of child pornography had been uploaded to a social media platform from an Internet address later determined to belong to the Newport residence where Mulvey resides. In October, HSI determined that a login used to access and upload the image of child pornography to the social media platform allegedly belonged to Mulvey.
Mulvey appeared this afternoon before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained on a criminal complaint charging him with distribution of child pornography and possessing and accessing child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge David Magdycz, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Newport Police Chief Gary T. Silva.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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New York City Man Going to Prison for Cyberstalking and Posting Naked Pictures of Victim OnlineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Regalbuto, 27, of New York City, was sentenced to serve 37 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that beginning in October 2014, the defendant sent multiple text messages to the Victim, threatening to publish naked photographs of the Victim on various social media websites. In one text message, Regalbuto stated: "I'll ruin your life the way you ruined mine." The defendant also sent a threatening text stating that he would kill the Victim and himself.
In 2017, without permission to do so, Regalbuto posted the naked photographs of the Victim on social media sites, resulting in multiple internet users seeing the photos along with the Victim’s name associated with the photos. Several individuals contacted the Victim after seeing the photos and asked if the Victim was the person in the photos, causing the Victim emotional distress.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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New Kensington Man Indicted for Misappropriating VA Beneficiary FundsRead the Press Release
PITTSBURGH, PA - A resident of New Kensington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of U.S. Department of Veterans Affairs ("VA") beneficiary funds, United States Attorney Scott W. Brady announced today.
The one-count Indictment charges Andrew Ziacik, 57, as the sole defendant. According to the Indictment, Ziacik was appointed as a Federal Fiduciary for a VA beneficiary and, as such, was responsible for receiving the beneficiary’s VA income and ensuring the beneficiary’s debts were paid. The Indictment further charges that Ziacik engaged in a pattern of conduct between July 2013 and late 2017 that violated his Fiduciary Agreement, including by making approximately $25,000 in unauthorized ATM cash withdrawals from the beneficiary’s VA bank account and transferring approximately $135,000 of the beneficiary’s VA benefits to Ziacik’s personal bank accounts. In addition, the Indictment alleges that the defendant misused the beneficiary’s VA benefits for his personal benefit including through financing payments made to Harley Davidson, the purchase of a diamond ring, and the purchase of a GMC truck, all in violation of Ziacik’s Fiduciary Agreement. Moreover, the Indictment also alleges that Ziacik failed to maintain accurate records and receipts related to the disposition of the beneficiary’s VA benefits, as required. and failed to provide complete and accurate records in response to a formal accounting initiated by the VA.
The law provides for a maximum total sentence of not more than five (5) years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The U.S. Department of Veterans Affairs Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Natchez Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
Jackson, Miss – Damien Hayes, 25, of Natchez, pled guilty today before Senior U.S. District Judge David Bramlette III to possessing a stolen firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
On March 22, 2019, ATF agents and state and local law enforcement officers were conducting a detail in Natchez and the surrounding area in response to complaints of criminal activity. Officers smelled burning marijuana and approached Damien Hayes who tossed a marijuana blunt onto the ground. When officers frisked Hayes, they discovered a .45 caliber pistol tucked into his pants. Further investigation revealed the firearm had been stolen from a local firearms dealer. On January 29, 2020, Hayes was indicted for possession of a stolen firearm.
Hayes will be sentenced by Judge Bramlette on January 26, 2021 at 10:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Natchez Police Department. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
NXIVM Leader Keith Raniere Sentenced to 120 Years in Prison for Racketeering and Sex Trafficking OffensesRead the Press Release
Keith Raniere, the founder and leader of Nxivm, was sentenced today to 120 years in prison by United States District Judge Nicholas G. Garaufis in federal court in Brooklyn. Raniere was convicted by a federal jury in June 2019 of racketeering, racketeering conspiracy, sex trafficking, attempted sex trafficking, sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy. The Court also imposed a fine of $1,750,000. At the sentencing hearing, the Court heard victim impact statements from 15 individuals, including “Camila,” the victim who was sexually exploited by Raniere when she was 15 years old. A hearing on victim restitution will be held at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI), announced the sentence.
“The 120-year sentence imposed on Keith Raniere today is a measure of his appalling crimes committed over a decade,” stated Acting United States Attorney DuCharme. “Raniere exploited and abused his victims emotionally, physically and sexually for his personal gratification. It is my hope that today’s sentence brings closure to the victims and their families.” Mr. DuCharme extended his grateful appreciation to the Department of Homeland Security, Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their valuable assistance during the investigation and prosecution.
“Raniere’s reign of control over the women he scarred, both physically and emotionally, is the making of a horror story. It is inconceivable to think of the sexual exploitation, abuse, seclusion, and mind control his victims suffered—at his direction. Today the judge has given him 120 years to think about whether or not the torture he inflicted on others for more than a decade, and the distress he brought to their families, was worth it in the end,” stated FBI Assistant Director-in-Charge Sweeney.
“Sexual exploitation of children and women is among the most reprehensible and vile forms of crime,” stated IRS-CI Special Agent-in-Charge Larsen. “While Keith Raniere’s sentence cannot erase the pain his victims have endured, I hope it provides an opportunity for healing and a path forward. Today’s sentencing should be a warning for criminals around the world. Regardless of the illegal enterprise and whether the profits are tangible or not, IRS-CI will decode illicit schemes and hold criminals accountable for the pain, suffering and financial abuse of their victims.”
Raniere led a criminal racketeering enterprise and relied on an “inner circle” of co-conspirators to carry out his orders. The purpose of the enterprise was to promote Raniere and to recruit individuals into purported self-help organizations that Raniere founded, including Nxivm and DOS (“Dominus Obsequious Sororium”). Raniere and his co-conspirators committed a wide range of criminal activity, including sex trafficking, forced labor, alien smuggling, wire fraud and obstruction of justice. Specifically, Raniere sexually exploited “Camila,” then a 15-year-old child, and took photographs of his abuse. At the time, Raniere was 45 years old. Raniere and his co-conspirators also trafficked “Daniela” for labor and services and confined her to a room for nearly two years in an attempt to force Daniela to do work for him. Daniela was told that if she left the room, she would be sent to Mexico without any identification documents. Daniela went months without human contact and was denied prompt medical care. During this time, Daniela wrote hundreds of letters to Raniere pleading to be released from her confinement. Daniela testified at trial that while confined to the room, she contemplated suicide.
In late 2015, Raniere created and led DOS, a secret organization in which women were recruited under the false pretense of joining a women-only mentorship group, later discovering that they had taken “vows of obedience” to women who were “slaves” to Raniere. Prospective DOS victims were required to provide “collateral”—including damaging confessions about themselves and loved ones (truthful or not), rights to financial assets, and sexually explicit photographs and videos—to prevent them from leaving the group or disclosing its existence to others. Raniere required DOS “slaves” to take nude photographs, perform labor, and in some cases, to engage in sex acts with him. As proved at trial, the victims “Nicole” and “Jay” were among the DOS victims directed to have sex with Raniere.
Each of Raniere’s co-defendants previously pleaded guilty. On September 2020, Clare Bronfman was sentenced to 81 months’ imprisonment after having been convicted of conspiracy to conceal and harbor aliens for financial gain and fraudulent use of personal identification information. The remaining co-defendants are awaiting sentencing. On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy. On March 25, 2019, Lauren Salzman, a first-line “master” in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 8, 2019, Allison Mack, another first-line “master” in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Mark J. Lesko and Kevin Trowel are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 60
Waterford, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Mescalero Apache man sentenced to 22 years in prison for abusive sexual contactRead the Press Release
ALBUQUERQUE, N.M. – David Joe Melendrez, 56, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced in federal court in Albuquerque today to 22 years in prison for abusive sexual contact.
In the plea agreement, Melendrez acknowledged sexually abusing multiple children, ranging in age from seven to 14, over the course of several years. The abuse took place on the Mescalero Apache Indian Reservation and all of the victims were members of the Mescalero Apache Tribe.
Upon his release from prison, Melendrez will be subject to 10 years of supervised release.
The FBI and the Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Marisa A. Ong prosecuted the case.
Meridian Man Sentenced to Five Years in Prison Under Project EJECT for Possession of a Firearm in a School ZoneRead the Press Release
Jackson, Miss. – Tirale Orlando Reed, 38, of Meridian, Mississippi, was sentenced today by Senior U.S. District Court Judge David C. Bramlette III to 60 months in prison, followed by five years of supervised release, for possession of a firearm in a school zone, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 15, 2016, at an apartment complex in Meridian, a confrontation between Reed and another individual turned violent, and Reed shot and killed the individual. Reed fled the scene and, while passing through the grounds of a school, threw his .45 caliber handgun into a creek bed near 44th Avenue. Reed was subsequently charged with murder in the Circuit Court of Lauderdale County, Mississippi, which is still pending.
Reed was charged in a federal Criminal Information with possession of a firearm in a school zone. He pled guilty before Judge Bramlette on August 4, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Memphis Man Pleads Guilty to Interstate Sex TraffickingRead the Press Release
Jackson, Miss. – Terrance Braden, 41, of Memphis, Tennessee, pled guilty on October 27, 2020 before Senior U.S. District Judge Davie Bramlette III to transporting women from Memphis to Jackson to engage in sex with men for money, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On June 25, 2020, Braden drove women from Memphis, Tennessee, to Jackson, Mississippi, and immediately posted advertisements via the Internet of such women. An undercover law enforcement officer posing as a “customer” arranged a date with one of the women on June 26, 2020, at a local motel in Jackson. The officer, along with other law enforcement officers, arrived at the hotel and arrested Terrence Braden and two other women for prostitution. Further investigation revealed that Braden was, in fact, the pimp transporting the women for his prostitution business.
Braden will be sentenced by Judge Bramlette on February 2, 2021 and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson Division of the Federal Bureau Investigation and the Hinds County Sheriff Department investigated this case. Assistant United States Attorney Glenda R. Haynes is prosecuting the case.
Man Charged with Federal Firearm Violations in Connection with Multiple Gun Purchases in GreensboroRead the Press Release
GREENSBORO, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that DANNY LEE MOCK, JR. was charged in a 10-count indictment with violations of federal firearms laws at Title 18, United States Code, Sections 922(a)(6) and 924(a)(1)(A).
The Indictment alleges that on five occasions between September 24, 2019, and December 14, 2019, MOCK, JR., age 30, of High Point, NC, made false representations in connection with the purchase of firearms from federally licensed firearm dealers in Greensboro. For each purchase, MOCK, JR. knowingly identified himself as the actual transferee/purchaser of the firearm and executed ATF Form 4473, Firearms Transaction Record, in which he affirmatively stated that he was the actual transferee/buyer, when in fact he was purchasing the firearms for other people.
“Federal gun laws preserve our right to bear arms by keeping firearms out of the wrong hands,” said U.S. Attorney Martin. “We will aggressively prosecute these so-called ‘lie and buy’ cases, in which someone claims to be the buyer in order to conceal the identity of the real purchaser, who is generally someone prohibited by law from having a firearm.”
If convicted under any of the five counts alleging violations of Title 18, United States Code, Sections 922(a)(6), MOCK, JR. may be sentenced to imprisonment for not more than 10 years, a fine not to exceed $250,000.00, or both, and 3 years of supervised release. If convicted under any of the five counts alleging violations of Title 18, United States Code, Sections 924(a)(1)(A), MOCK, JR. may be sentenced to imprisonment for not more than 5 years, a fine not to exceed $250,000.00, or both, and not more than 1 year of supervised release.
An indictment is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The case has been investigated by the Guilford County Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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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Man Charged with Burglary and Domestic Violence in Indian CountryRead the Press Release
A Tulsa man made an initial appearance this week in federal court after being charged with Burglary in the First Degree in Indian Country and Strangulation of a Dating Partner in Indian Country, announced U.S. Attorney Trent Shores.
Tyler Austin McGhee, 26, was arrested on Oct. 23 by Broken Arrow Police officers after he entered the home of his former girlfriend and allegedly assaulted her.
According to the complaint, the victim stated that McGhee physically assaulted her by putting her in a headlock and attempting to cover her mouth with duct tape. She also stated that he later sexually assaulted her. The victim tried to calm McGhee down and eventually found an opportunity to text a friend to call 911 as she thought McGhee might kill her if she attempted to do so herself. When officers arrived, they found McGhee in the apartment and his backpack under the bed, which allegedly contained black duct tape, black latex gloves, handcuffs, a knife, condoms, and sexual lubricant. When officers questioned McGhee, he denied any assault to the victim and claimed he just wanted to talk to her.
“Survivors of domestic violence are a resilient group. Tragically, we’ve seen domestic violence cases on the rise during this global pandemic. These are often challenging cases to present, but this United States Attorney’s Office will not shy away from tough cases nor miss an opportunity to give a voice to victims of domestic violence,” said U.S. Attorney Trent Shores. “These allegations in the Complaint will receive the full attention and resources of my office as we seek to hold Tyler McGhee accountable for his alleged criminal acts.”
A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The FBI and Broken Arrow Police Department are conducting the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Maine Man Sentenced for Federal Hate Crime ConvictionsRead the Press Release
The Justice Department today announced the sentencing of Maurice Diggins, 36, of Biddeford, Maine, in federal court for his role in a series of racially motivated assaults against black men in Maine.
Diggins was sentenced by U.S. District Judge Nancy Torresen to 10 years in federal prison, followed by three years of supervised release. On March 10, 2020, following a three-day trial, a jury convicted Diggins of conspiring to commit hate crimes and of actually committing hate crimes.
“The defendant committed a series of unprovoked violent attacks on innocent men because of those men’s race,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Today’s sentence, and the jury’s previous verdict in this case, demonstrate that the legal system will not tolerate such acts of racist violence. The Department of Justice will continue to prosecute race-based violations of our federal civil rights laws.”
“In addition to doing grievous harm to individuals, hate crimes engender fear in communities,” said U.S. Attorney Halsey B. Frank of the District of Maine. “Violence has no place in Maine, and that is especially true of violence that is motivated by hate. Maine citizens, regardless of skin color, ethnicity, or sexual orientation have a right to live their lives free of harassment, much less physical violence. Today’s sentencing should make clear that we have no tolerance for hate crimes. I would like to thank the victims for their courage to confront their assailant, and our law enforcement officers at both the state and federal level who helped prosecute this important case.”
“Mr. Diggins’ actions were cowardly and racially motivated. It is our hope that today’s sentence will help his victims and their families with the healing process while also making it crystal clear that we will not stand for violence, especially borne from hate,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Rest assured, the FBI and our law enforcement partners will aggressively pursue anyone who commits these violent acts to ensure the civil rights of all Americans are protected.”
According to evidence presented at trial, on April 15, 2018, defendant Diggins and his nephew, Dusty Leo (who previously pled guilty in connection with this case), committed two separate racially motivated assaults, one in Portland and one in Biddeford. In the Portland assault, which occurred just before 1:00 a.m., Diggins attacked a black Sudanese male without provocation, breaking the victim’s jaw. During that same incident, Diggins and Leo assaulted another black man who was standing nearby. Witnesses heard Diggins and Leo using racial epithets during the incidents.
In the second incident, which occurred approximately an hour later and approximately 20 miles away in Biddeford, defendant Diggins and Leo drove in Leo’s truck into the parking lot of a convenience store, where Diggins got out of the truck and approached a black man who was walking toward the store’s entrance. Diggins directed a racial slur at the man and distracted him while Leo got out of the truck and sucker-punched him in the jaw, knocking him to the ground. The unprovoked attack broke the victim’s jaw in several places.
The Biddeford Police Department and the FBI investigated the case. The case was prosecuted by Assistant U.S. Attorney Sheila Sawyer and Civil Rights Division Trial Attorney Tim Visser.
Latin King Gang Member Sentenced to Life in Prison for Racketeering Conspiracy including Two Murders and Drug ConspiracyRead the Press Release
HAMMOND-Jeremiah Farmer, 39, of Hammond, Indiana, and a member of various Indiana factions of the Chicago-based Latin Kings, was sentenced by U.S. District Court Judge Philip P. Simon to life in prison following his conviction at trial in July 2019 of conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and to distribute cocaine, marijuana, and alprazolam, announced U.S. Attorney Kirsch.
At trial, the jury found that, as part of the racketeering conspiracy, on June 25, 1999, Farmer murdered Marion Lowry, 74, and Harvey Siegers, 67, by beating each to death with a hammer at their Hammond business, Calumet Auto Rebuilders. The jury also found that Farmer conspired to distribute or possess with intent to distribute five kilograms or more of cocaine as part of the racketeering conspiracy. The jury also found that Farmer conspired to distribute or possess with intent to distribute 100 kilograms or more of marijuana as part of the drug conspiracy.
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 1999. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
"The defendant terrorized the community through his violent actions and today’s sentence ensures an extremely dangerous individual has been taken off the streets,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This is an example of how the collective efforts of the FBI and our law enforcement partners impact crime in our neighborhoods and remain a top priority.”
“This defendant is responsible for terrorizing the community of Hammond with narcotics trafficking and violence,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Strong law enforcement partnerships among local, state and federal agencies allow us to focus on the most violent offenders.”
The investigation was conducted under the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.
The agencies involved in these investigative efforts are the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King case was prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick and Nicholas J. Padilla.
Justice Department Files Enforcement Action Against Bain & Company as Part of Its Investigation into Visa Inc's Proposed Acquisition of Plaid IncRead the Press Release
Today, the Department of Justice filed a petition in the U.S. District Court for the District of Massachusetts to enforce Bain & Company’s compliance with the department’s Civil Investigative Demand (CID).
The department issued the CID to third-party Bain as part of its investigation of Visa, Inc.’s proposed acquisition of Plaid Inc. As alleged in the petition, Bain, a consulting firm, has withheld important documents demanded under the CID, asserting unsupported claims of privilege over the documents, thereby stymying the Antitrust Division’s investigation.
“American consumers rely on the Antitrust Division to investigate mergers promptly and thoroughly,” said Assistant Attorney for the Antitrust Division Makan Delrahim. “Collecting relevant third-party documents and data is essential to the division’s ability to analyze these transactions. Too often, third parties seek to flout these requirements, hoping the division will lose interest and focus its enforcement efforts elsewhere. The division’s petition against Bain is aimed at securing relevant documents and making clear that the division will hold third parties to the deadlines and specifications in the CIDs we issue. Third parties, like Bain, must comply fully and expeditiously with our civil investigative demands and provide the documents and data we need to discharge our duties and serve the American people.”
On June 11, 2020, the division issued Bain a CID requiring the company to answer interrogatories and produce documentary material, including documents that discuss Visa’s pricing strategy and competition against other debit card networks that may be important to the division’s analysis of the proposed acquisition’s effects. The petition alleges that Bain has refused to produce these documents, claiming a seemingly blanket privilege over almost all of them.
The division seeks to enforce the CID under Section 1314(a) of the Antitrust Civil Process Act. Through filing the petition, the department seeks to enforce Bain’s CID compliance to support its investigation of Visa’s proposed acquisition of Plaid for the benefit of American consumers and competition.
Bain & Company, Inc. is a global management consultancy headquartered in Boston, Massachusetts. Visa, Inc., a global payments company that operates the largest debit network in the United States, is incorporated in Delaware and headquartered in Foster City, California. Plaid Inc. is a financial services company incorporated in Delaware and headquartered in San Francisco, California.
Jury Convicts Springfield Man of Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was convicted by a federal trial jury today of illegally possessing a firearm.
Roy L. Norey, 38, was found guilty of being a felon in possession of a firearm and ammunition.
Evidence during the trial indicated that Norey was in possession of an AA Arms 9mm semi-automatic pistol and ammunition on Jan. 3, 2019. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Norey has prior felony convictions for manufacture/delivery of a controlled substance, possession of a controlled substance with intent to deliver, possession of a controlled substance, and possession of a firearm with a defaced serial number.
Springfield police officers executed a search warrant at Norey’s apartment on Jan. 3, 2019, as part of a drug-trafficking investigation. Officers found the loaded pistol in the top drawer of a nightstand and a shoebox on his bed that contained both .38 and .40-caliber ammunition. Officers also found a digital scale and baggies, consistent with drug trafficking, and $16,000.
At the time of the search, Norey was driving a Chrysler 300 on West Battlefield and was stopped by a Springfield police officer because he did not have a valid driver’s license.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for 55 minutes before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 26.
Under federal statutes, Norey is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by Springfield, Mo. Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Irvine Man Charged in Investment Scheme that Took in Millions with False Promises of Solar Panels Enhanced with NanotechnologyRead the Press Release
SANTA ANA, California – Federal prosecutors today filed criminal charges against an Irvine man whose company used high-pressure sales tactics to raise more than $9.5 million with bogus claims that the outfit’s solar panels utilized nanotechnology to generate electricity three times more efficiently than traditional solar panels.
Michael James Sweaney, 56, the founder and owner of Nanotech Engineering, Inc., was charged with one count of mail fraud in a criminal information filed in United States District Court. In a plea agreement also filed today, Sweaney, who held the title of chief financial officer at Nanotech, agreed to plead guilty to the mail fraud charge.
Nanotech, which had facilities in Irvine and Loveland, Colorado, used a team of salespeople to cold-call potential investors and pitch them with bogus claims the company had developed a compact “Nanopanel” with patent-pending nanotechnology that was one-third the cost of similar devices and would soon dominate the solar panel market. But, as Sweaney admitted in the plea agreement, the Nanopanel simply did not exist.
As part of the scheme that started just over three years ago and continued until the end of 2019, Nanotech and its salesforce not only lied to investors, it also failed to disclose pertinent facts, which included identifying the CFO as “Michael Hatton” to conceal that Sweaney had previously been convicted of securities fraud, court documents state.
In his plea agreement, Sweaney admitted that, using the “Michael Hatton alias,” he personally solicited a potential investor with lies, including that Nanotech did not pay commissions to sales personnel and that the company’s manufacturing equipment was worth $100 million. That potential investor was actually an undercover FBI agent.
During the scheme, Sweaney instructed his nephew – who was in charge of Nanotech’s Colorado facility – to create a prop to make it appear that there were functioning Nanopanels, to make a video with a hired actor showing the product outperforming a traditional solar panel, and to make it appear the Loveland facility was manufacturing Nanopanels, the court documents state. In a 2018 email to his nephew, Sweaney wrote, “We need to spend ALOT OF CASH, we need IMMEDIATELY equipment in the warehouse, without it JAIL, and that’s no joke, no equipment and using investment funds EQUALS JAIL, however spending money on equipment WILL SET US FREE.”
Once he enters the guilty plea in this case, Sweaney will face a statutory maximum sentence of 20 years in federal prison.
Sweaney admitted in his plea agreement that investor funds – which purportedly would be spent on company overhead and the manufacturing of Nanopanels – were used to fund his lavish lifestyle, which included a 46-foot yacht, two Maserati GranTurismo automobiles, a gold Cartier watch and cosmetic surgery. As part of the plea agreement, Sweaney agreed to forfeit the yacht, the cars, the watch and approximately $1.5 million in cash, bank accounts and checks previous seized by investigators.
Sweaney’s nephew – David Wayne Sweaney, 41, of Fort Collins, Colorado, who was listed on documents as Nanotech’s chief executive officer – pleaded guilty last month to one count of mail fraud. He is scheduled to be sentenced by United States District Judge Josephine L. Staton on April 2, 2021, at which time he will face a statutory maximum sentence of 20 years in prison.
According to court documents, David Sweaney assisted in the scheme orchestrated by his uncle in a number of ways, including depositing victims’ checks into Nanotech bank accounts in Colorado, purchasing and installing $300,000 in used solar panel manufacturing equipment, arranging for at least two potential victim-investors to tour Nanotech’s Colorado facility, and creating a video showing a prop Nanopanel outperforming a standard solar panel – an illusion he created by powering the purported Nanopanel with a hidden battery pack.
These cases are the result an ongoing investigation by the FBI.
This case is being prosecuted by Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office.
The United States Securities and Exchange Commission has filed a civil action against Nanotech and the Sweaneys, and the agency announced three weeks ago it obtained a partial judgment against David Sweaney.
Iowa Man Pleads Guilty to Being in Possession of Molotov Cocktail During Omaha ProtestsRead the Press Release
United States Attorney Joe Kelly announced that Steven M. Fitch, age 25, of Council Bluffs, Iowa, pleaded guilty today before United States Magistrate Judge Michael D. Nelson for being in unlawful possession of a destructive device. Sentencing has been scheduled for January 20, 2021 at 1:30 p.m. before the Honorable Brian C. Buescher. Fitch faces a maximum punishment of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release.
An investigation conducted by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms determined that on May 31, 2020, Fitch was participating in protests in and around downtown Omaha, Nebraska. During the protests, Fitch was encountered by officers with the Omaha Police Department at 15th and Jackson Streets. Officers determined Fitch possessed a destructive device, also known as a Molotov Cocktail, which is a firearm under the National Firearms Act. The Molotov Cocktail was located in Fitch’s front pants pocket and consisted of a glass bottle with clear liquid inside and a red rag protruding out of the opening. Fitch also had several lighters in his front pants pocket.
Douglas County Sheriff’s Forensic Services Bureau tested the red rag that was attached to the Molotov Cocktail, which was positive for containing the chemical “Gasoline.” The Molotov Cocktail was in operating condition and was capable of exploding when ignited.
The Bureau of Alcohol, Tobacco, and Firearms determined that the Molotov Cocktail device was not registered to Fitch as required by the National Firearms Registration and Transfer Record.
After Fitch’s plea, FBI Omaha SAC Eugene Kowel said, “The FBI is committed to protecting all those who are exercising their First Amendment rights, including the right to peacefully protest. This is part of our core mission. When someone violently threatens the safety of peaceful protesters by breaking the law, as Steven Fitch has admitted to, FBI Omaha is fully committed to identifying, investigating, and arresting those individuals responsible.”
This case was investigated by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms.
International Firearms Trafficker Arrested in GeorgiaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest of Ihor Radionov (51, Alpharetta, Georgia) pursuant to an indictment charging him with conspiracy and smuggling goods out of the United States in violation of the International Traffic in Arms Regulations. If convicted on all counts, Radionov faces a maximum penalty of 20 years in federal prison. On October 26, 2020, Radionov made his first appearance in federal court in Atlanta, Georgia.
According to the indictment, between 2014 and 2020, Radionov, co-conspirator Vladimir Volgaev, and a co-conspirator residing in Ukraine, conspired to export defense articles out of the United States, including gun barrels and slides, without a license or prior written approval from the United States Department of State.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section.
Honduran Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JOSE DAVID SANCHEZ, age 24, a native of Honduras, was charged on October 23, 2020 in a one-count indictment with illegal use of a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
SANCHEZ faces a maximum term of imprisonment of not more than five (5) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Group Home Operator for Individuals with Intellectual and Developmental Disabilities Agrees to Settle ADA AllegationsRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced a settlement agreement under the Americans with Disabilities Act (ADA) with Good Neighbor Homes, Inc. (GNHI), which operates more than 50 group homes for individuals with intellectual and development disabilities (I/DD) in Virginia, and is the largest group home operator in Virginia.
The settlement agreement resolves allegations that GNHI failed to furnish sign language interpreting services during multiple complex and high stakes interactions with one of its residents who is deaf, including interactions in which the resident was supposed to be able to have an opportunity to provide meaningful input regarding her care plan, medical appointments, and incident investigations regarding serious injuries to the resident. As a result, the aggrieved individual alleged that she often did not understand what was happening with regard to significant aspects of her life. The U.S. Attorney’s Office further investigated allegations that GNHI sometimes relied on the complainant’s sister to facilitate communication in the absence of a sign language interpreter.
“This resolution demonstrates this office’s unwavering commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that they are able to communicate with service providers who are responsible for providing person-centered care,” said Terwilliger. “GNHI provides essential services to a particularly vulnerable population, individuals who often have multiple disabilities and complex medical needs. We are pleased that GNHI has agreed to take steps to ensure that all of its group homes will furnish appropriate auxiliary aids and services, such as qualified sign language interpreters, to its consumers who need them in order to communicate effectively.”
In addition to making significant changes to its policies and practices, GNHI agreed to resolve these matters by paying $225,000 to the resident for whom it failed to furnish sign language interpreting services, $40,000 to her sister, and a civil penalty of $50,000.
To resolve these matters, GNHI agreed to adopt policies that will make its services accessible to individuals with communication disabilities; designate an ADA Administrator, who will be responsible for ensuring GNHI’s compliance with the ADA; enter into agreements with sign language interpreting service providers to provide services to its consumers who need them; and to provide training for its personnel on the ADA’s effective communication requirements. GNHI also agreed to pay damages to the complainant and her sister, and a civil penalty to the United States. This resolution is particularly significant because group homes are essential to ensuring that individuals with I/DD are able to receive community-based services and be integrated into their communities, and individuals who are deaf are entitled to have access to these services.
Assistant U.S. Attorney Steve Gordon, Civil Rights Enforcement Coordinator, investigated the matter. The civil claims settled by this ADA agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA including a Technical Assistance Publication entitled: ADA Requirements: Effective Communication and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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 may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Grand Jury - October 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 14 unsealed Indictments charging 14 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Victor Avitia Esparza, age 35, is charged with illegal reentry after deportation on or about October 1, 2020, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* John Allen Belot, age 26, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) on February 17, 2020. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment. Count II charges the defendant with use of a firearm during and in relation to and knowingly possessing a firearm in furtherance of a drug trafficking crime on or about February 17, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Cardell Conner, age 20, of Omaha, is charged with a felon in possession of a firearm on or about July 23, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Lucio Cruz-Guerrero, a/k/a Joaquin Guerrero Navarrete, age 38, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 500 grams of methamphetamine (mixture) on October 4, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine on or about March 6, 2020, and continuing to on or about October 4, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment.
* Miguel Alcangel Fonseca Maradiaga, age 32, is charged with illegal reentry after deportation on or about October 8, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Aaron Garcia Patlan, age 30, is charged with illegal reentry after deportation on or about October 7, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Miguel Angel Loeza Vinalay, age 39, is charged with illegal reentry after deportation on or about September 21, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Codie D. Maleskar, age 45, of Hastings, is charged in a five-count Indictment. Counts I – III charge the defendant with mail fraud beginning on or about November 2016 and continuing through February 10, 2017. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, 3-year term of supervised release, and a $100 special assessment for each count. Counts IV – V charges the defendant with wire fraud, beginning on or about August 4, 2016, and continuing to on or about April 9, 2016. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment for each count.
* Jose Ivan Marino-Meza, a/k/a Antonio Moreno Ramirez, age 24, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 500 grams of methamphetamine (mixture) on October 4, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) on or about March 6, 2020, and continuing to on or about October 4, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment.
* Jeffrey Thomas Ostdiek, age 54, is charged in a two-count Indictment. Count I charges the defendant with false personation of an officer or employee of the United States beginning on or about September 14, 2020 and continuing through September 25, 2020. The maximum possible penalty if convicted is 3 years’ imprisonment, a $250,000 fine, one-year term of supervised release, and a $100 special assessment. Count II charges the defendant with false personation of an officer or employee of the United States beginning on or about October 4, 2016 and continuing through January 30, 2017. The maximum possible penalty if convicted is 3 years’ imprisonment, a $250,000 fine, one-year term of supervised release, and a $100 special assessment.
* Robert Earl Partee, II, age 27, of Lincoln, Nebraska, is charged with conspiracy to distribute 500 grams of methamphetamine (mixture) on June 1, 2018, and continuing to on or about November 30, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment.
* Amitkumar Patel, age 41, of Council Bluffs, Iowa, is charged in a two-count Indictment. Count I charges the defendant with attempted coercion and enticement of a minor on September 4, 2020 through on or about September 8, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, life term of supervised release, and a $100 special assessment and $5,000 additional SA. Count II charges the defendant with travel with intent to engage in illicit sexual conduct on September 8, 2020. The maximum possible penalty if convicted is 30 years’ imprisonment, a $250,000 fine, life term of supervised release, and a $100 special assessment and $5,000 additional SA.
* Jonathan Daniel Rooney, age 26, of Winnebago Indian Reservation, is charged in a two-count Second Superseding Indictment. Count I charges the defendant with second degree murder on May 16, 2020. Rooney was charged with manslaughter in the previous Indictment. The maximum possible penalty if convicted is life imprisonment, five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with tampering with documents or proceedings on May 16, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, three-year term of supervised release, and a $100 special assessment.
* Jairo Luis Vera-Gutierrez, age 30, is charged with illegal reentry after deportation on or about October 10, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
Garner Man Sentenced to 30 Years in Prison for Attempted Enticement of a Minor and Possession of Child PornographyRead the Press Release
GREENSBORO, N.C. – A Garner, N.C., man who traveled to Alamance County to have sex with what he believed to be a 13-year-old girl was sentenced to 30 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JOSEPH DANIEL ORAN, 34, pleaded guilty on May 7, 2020 for attempted enticement of a minor and possession of child pornography. He was sentenced today by United States District Judge Catherine C. Eagles to 360 months of imprisonment followed by 20 years of supervised release. Judge Eagles sentenced ORAN to 360 months for attempted enticement of a minor, and 240 months for possession of child pornography, with those sentences running concurrently.
At the time he committed the Alamance County offenses, ORAN was already a registered sex offender following his 2011 Wake County, N.C., conviction for solicitation of a child by computer and indecent liberties with a minor.
Beginning in September 2017, Oran began chatting online with an individual purporting to be a 13-year-old girl, but who was actually an undercover detective with the Alamance County Sheriff’s Office. ORAN exchanged more than two thousand text messages with the undercover detective over several weeks. ORAN repeatedly directed the conversation to topics of a sexual nature and expressed his desire to engage in sexual acts with the person he believed to be a 13-year-old girl. He also offered to send child pornography, texting, “Yeah like other people make it like other adults make it with kids and then they send it to people…It's against the law but they make it.” ORAN was arrested on October 31, 2017 after he traveled to a residence in Alamance County for the purpose of engaging in indecent liberties with a minor. Investigators subsequently identified a cloud storage account possessed by ORAN that contained child pornography.
This case was investigated by the Alamance County Sheriff’s Office with support from Homeland Security Investigations (HSI). Both are members of the North Carolina Internet Crimes
Against Children (ICAC) Task Force. The ongoing Alamance County Sheriff’s Office undercover operation has resulted in multiple arrests and convictions, including I. JEFFREY BRANDEIS (https://www.justice.gov/usao-mdnc/pr/durham-man-caught-alamance-county-child-exploitation-operation-sentenced-10-years) and ADRIAN RODRIGUEZ (https://www.justice.gov/usao-mdnc/pr/two-men-sentenced-separate-incidents-attempting-sexually-exploit-minors-online).
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorneys Eric L. Iverson and Whitney N. Shaffer. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Fourth Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, woman today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, U.S. Attorney Craig Carpenito announced.
Gladys Collins, 43, of Wayne, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and September 2019, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Collins and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.
Three of Collins’ conspirators, Edward Espinal, Jennie Frias, and Raymundo Torres, have previously pleaded guilty to charges relating to their role in the Cash Flow bank fraud conspiracy and are awaiting sentencing.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 8, 2021.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys J. Stephen Ferketic of the Opioids Unit and Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Lawrence M. Fisher Esq., New York
Forty-Two People Indicted for Participating in Drug Trafficking Organization Responsible for Overdose DeathsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama joined
Mobile Police Chief Lawrence L. Battiste, Mobile County Sheriff Sam Cochran, DEA Special
Agent in Charge Brad L. Byerley, HSI Special Agent in Charge Katrina W. Berger, ATF Acting
Special Agent in Charge Toby Taylor, and FBI Special Agent in Charge James Jewell in
announcing the unsealing today of a forty-eight count indictment charging forty-two members
and associates of a Mobile County, Alabama-based multi-state drug smuggling and distribution
organization known as the “Crossley Hills Drug Trafficking Organization (DTO).” The grand
jury charged the members and associates with narcotics conspiracy and firearms offenses. The
Grand Jury also charged that overdose deaths of four individuals were attributable to the drugs
trafficked by the Crossley Hills DTO. The indictment was the result of two years of an
Organized Crime Drug Enforcement Task Force investigation by federal, state, and local law
enforcement into the narcotics activities of the Crossley Hills group.
To date, nineteen defendants have been taken into custody today; seven other defendants
were already in custody. Defendants arrested this morning in the Southern District of Alabama
will be presented and arraigned before U.S. Magistrate Judge Katherine P. Nelson today. Three
defendants were to be arrested in the Western District of Louisiana today.
U.S. Attorney Richard W. Moore said: “The COVID pandemic has overshadowed
another public health crisis that still exists in our community: overdose death due to opioid
abuse. The indictment of those associated with the Crossley Hills drug trafficking organization
in West Mobile, Alabama represents the combined work of our local law enforcement agencies
plus our federal agencies to dismantle this criminal enterprise. This group peddled drugs that in
at least four cases resulted in the deaths of sons, daughters and other loved ones from our
community. The Crossley Hills organization sold a drug that was potent enough to kill its users
earning it the name “Grey Death.” There is no corner of our country or our community that has
been spared this national crisis, and we cannot arrest or prosecute our way out of it. This is
going to take a different kind of intervention by all of us in the community to prevent more
deaths from opioid abuse.”Mobile Police Chief Lawrence L. Battiste said, “I would like to emphasize the impact of
the collaboration of all of the agencies involved. There are 42 individuals in our community that
will no longer be allowed to prey on the most vulnerable among us. Our community is going to
be made better from the results of this operation.”
DEA Special Agent in Charge Brad L. Byerley said, “The wreckage caused by drugs and
violence affects everyone. No matter the amounts of drugs they sell, drug dealers breed crime in
our neighborhoods and are a danger to our children. Drug overdoses have increased dramatically
and are destroying countless lives. The arrests in this investigation demonstrate to the citizens of
Mobile and the surrounding area that law enforcement can come together and accomplish great
things. DEA and our federal, state, and local law enforcement partners will continue to
investigate those who distribute poison with no regard for human life. These arrests should also
serve as a warning to drug dealers in communities throughout this region and beyond your illegal
and destructive actions will not be tolerated.”
Mobile County Sheriff Sam Cochran said, “This joint investigation by all levels of law
enforcement shows how prevalent the opioid problem is within our community, and may for the
first time directly tie drug dealers to the deaths and overdoses of those in the chains of
addiction.”
“The days of these criminals selling poison and destroying lives are over,” said Special
Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI)
operations in Georgia and Alabama. “Powerful opioids like fentanyl have the potential to kill just
by contact and are far too dangerous to be sold on the street. HSI and its law enforcement
partners will continue to work tirelessly to bring an end to criminal organizations, like this, that
are flooding the community with dangerous drugs.”
ATF’s priority in the case focuses on the recovery of crime guns which include those that
have been stolen. The use of NIBIN technology will determine if these firearms have been used
in previous crimes. ATF Acting Special Agent in Charge Toby Taylor remarked, “ATF’s Crime
Gun Intelligence partnerships as part of Project Guardian focuses on the devastating impact of
firearms and narcotics trafficking violence and works with the entire community to provide a
safe environment.”
FBI Special Agent in Charge James Jewell stated, “This case is a testament to the
partnerships that exist among the state, local, and federal law enforcement entities in our area.
These arrests should sound the alarm for those who choose to sell this poison on our streets and
in our communities. FBI Mobile is proud to stand with our law enforcement partners in this
important mission.”
According to the indictment, the Crossley Hills DTO operated in Mobile County,
Alabama, and elsewhere, distributing various controlled substances, including heroin, fentanyl,
methamphetamine, Xanax, Oxycodone, Opana, and Roxicodone to customers in Southern
Alabama and elsewhere. Relying on regional and local sources of supply to acquire controlled
substances for its distribution, the indictment alleges that the Crossley Hills DTO, beginning in
2016, has distributed a substantial amount of the heroin in Mobile County, Alabama. These
heroin sales have led to numerous overdoses resulting in hospitalizations and deaths, according
to the indictment.
Charged in the indictment are Martin Carlton Melton, aka MC; Jessie Lee Andrews; Lisa
Overby Brokaw; Reginald Irvin Burgess; Melody Noel Cleburn, aka Angel Noel; Jimmy Earl
Conner; Mortimer Adrian Cottrell, aka Cuz; Khadarrin J. Crayton, aka KD; Chad Joshua
Delevieleuse, aka Chad the Pilot; Donna J. Delevieleuse; Kiairus Jamer Diamond, aka Nephew;
Julisa Natalia Dillard; Sydney Elizabeth Dunn; Marinda Olivia Loetta Heflin; Cornell Lemont
Houston, aka CJ; Avamae Gaynell Jackson, aka Ava; Tomocus Lawrence Jackson, aka J-Bo;
Richard Gaines Krause; Brittany Victoria Lovejoy; Harrison Lavelle Luker; Austin Tyler
Mamuscia; Tyler Weston Martin; Fitzalbert Norman Mcgloshen, aka Fitz; Gabrielle Antoinette
Mims; Jonas Moore, aka Rip; Autumn Jean Moorehead; Annetta Gaynell Owens, aka Gaynell;
Adam Joseph Owens, aka AJ; aka Big Homie; William Grant Owens, aka Whip, aka Surge;
Edwin Jerome Owens, aka EJ; Terry Lamont Owens, aka Solo; Amber Lee Parker, aka Amber
Russell; Ed Ray Patterson, aka Unc, aka Pop; Wendy Gale Roberts; Mark Robert Rupprecht, aka
Ghost; Alex Scott, aka Black; Lemont Stevens, aka Mont; Denton Taylor Stanley; and Jessica
Defloren Tubb aka Allie.
Six defendants were charged with distributing fentanyl that resulted in overdose deaths of
four people. Martin Carlton Melton, aka MC; Terry Lamont Owens, aka Solo; Cornell Lemont
Houston, aka CJ; Marinda Olivia Loetta Heflin; William Grant Owens, aka Whip, aka Surge;
and Jessica Defloren Tubb, aka Allie would be subject to a minimum mandatory sentence of
twenty years and a maximum of life if convicted. Sentences for other defendants would vary
depending on the type and amount of drugs attributable to them in the conspiracy.
In addition to the drug trafficking charges, five defendants were charged with firearms
violations. Adam Joseph Owens, aka AJ, was charged with possession of a firearm in furtherance
of a drug trafficking crime. Ed Ray Patterson, aka Unc, aka Pop; Tomocus Lawrence Jackson,
aka J-Bo, aka CJ; and Alex Scott, aka Black, were charged with possession of firearms after a
felony conviction.
This case was investigated by the Drug Enforcement Administration, the Mobile Police
Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mobile County
Sheriff’s Office, Homeland Security Investigations, and the Federal Bureau of Investigation
under the auspices of the United States Attorney’s Office for the Southern District of Alabama
Organized Crime and Drug Enforcement Task Force. The Alabama Law Enforcement Agency,
the Baldwin County Drug Task Force, and the Saraland Police Department provided key
investigative support to the investigation. Assistant United States Attorney Luis F. Peral, Lead
OCDETF Attorney, and Assistant United States Attorney George F. May are handling
prosecution of the case for the United States.
The charges contained in an indictment are merely accusations, and the defendants are
presumed innocent unless and until proven guilty.Former oil executive sentenced for role in false payroll schemeRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old Houston man has been ordered to federal prison following his conviction of money laundering through wire fraud, announced U.S. Attorney Ryan K. Patrick.
Mohamad Sylla pleaded guilty May 28, admitting he conspired with Jose Luis Briseno, 41, Tynan, and David Contreras, 40, Paso Robles, California, to get a Houston oil production company to issue paychecks for work Contreras never completed and while he was not even employed at the company.
Today, U.S. District Judge David S. Morales handed Sylla a 30-month sentence to be immediately followed by three years of supervised release.
From Jan. 1 to Sept. 11, 2015, Briseno and Sylla were employed at the company as the service coordinator and South Texas region manager, respectively. The two men conspired to approve timesheets for Contreras even though he was no longer employed there. Briseno and Sylla ensured the timesheets were approved and payments issued. Once Contreras received the funds, he would split the paycheck with Briseno and Sylla. Briseno and Sylla additionally approved a series of fraudulent payments to fictitious vendors for services not provided.
The Houston oil production company paid out more than $400,000 as a result of the fraudulent schemes. Contreras, Briseno and Sylla then conspired to engage in monetary transactions using a portion of the funds.
On July 28, Judge Morales ordered Briseno to a 27-month sentence to be immediately followed by two years of supervised release. Contreras also pleaded guilty was sentenced to 12 months.
Sylla was permitted to remain on bond and surrender at a later date to a U.S. Bureau of Prisons facility.
The FBI conducted the investigation. Former Assistant U.S. Attorney (AUSA) Jeremy C. Fugate prosecuted the case. AUSA Robert Thorpe handled the sentencing.
Former eBay Employee Pleads Guilty in Aggressive Cyberstalking CampaignRead the Press Release
BOSTON – A former supervisor of security operations for eBay’s European and Asian offices pleaded guilty today to his role in a cyberstalking campaign targeting a Natick, Mass. couple who published a newsletter that eBay executives viewed as critical of the company.
Philip Cooke, 55, of San Jose, Calif., a former police captain in Santa Clara, Calif., pleaded guilty to conspiracy to commit cyberstalking and conspiracy to tamper with witnesses. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 24, 2021.
Cooke conspired with six other former eBay employees. David Harville, 48, of New York City and James Baugh, 45, of San Jose, Calif., were charged on June 15, 2020, with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses. The charging documents identified Cooke as “Supervisor 1.” Stephanie Popp, 32, and Veronica Zea, 26, both of San Jose, Calif., pleaded guilty on Oct. 8, 2020 and are scheduled to be sentenced on Feb. 25, 2021. Stephanie Stockwell, 26, of Redwood City, Calif., and Brian Gilbert, 51, of San Jose, Calif., are scheduled to plead guilty on Oct. 29, 2020.
According to the charging documents, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay. Members of eBay’s executive leadership team followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories.
It is alleged that in August 2019, the defendants executed a three-part harassment campaign against the Natick couple. Among other things, several of the defendants ordered anonymous and disturbing deliveries to the victims’ home, including a preserved fetal pig, a bloody pig Halloween mask and a book on surviving the loss of a spouse.
As part of the second phase of the campaign, some of the defendants allegedly sent private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick. The charging documents allege that Cooke, Baugh, Gilbert, and Popp planned these messages to become increasingly disturbing, culminating with “doxing” the victims (i.e., publishing their home address). It is alleged that the same group intended then to have Gilbert, a former Santa Clara police captain, approach the victims with an offer to help stop the harassment that the defendants were secretly causing, in an effort to promote good will towards eBay.
The third phase of the campaign allegedly involved surveilling the victims in their home and community. The victims spotted the surveillance, however, and notified the Natick police, who began to investigate.
Aware that the police were investigating, the defendants allegedly sought to interfere with the investigation. For example, it is alleged that Cooke and several of the other defendants discussed the possibility of presenting Natick Police with a false investigative lead to keep the police from discovering video evidence that could link some of the deliveries to eBay employees. As the police and eBay’s lawyers continued to investigate, the defendants allegedly deleted digital evidence that showed their involvement, further obstructing what had by then become a federal investigation.
The charges of conspiracy to commit cyberstalking and conspiracy to tamper with witnesses each carry a sentence of up to five years in prison, three years of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Natick Chief of Police James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the federal investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Office Manager Sentenced to Prison for Defrauding Warner Robins Business of Nearly $1.4 MillionRead the Press Release
MACON, Ga. - The former office manager of a computer services company in Warner Robins, Georgia was sentenced to federal prison today for embezzling nearly $1.4 million from the business, forging 419 checks during the nine year scheme, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Sheila Bowden, 52, of Macon, was sentenced to 51 months in prison by U.S. District Judge C. Tripp Self after previously pleading guilty to one count mail fraud. There is no parole in the federal system.
Bowden was the office manager for Micro Technology Consultants, Inc. (MTC), a computer services business in Warner Robins. Beginning about March 26, 2009, and continuing through about January 18, 2018, Bowden used her position to embezzle $1,393,869.74 from MTC. She prepared unauthorized checks drawn on MTC’s business account, forging the signature of MTC’s owner on the checks, and making the checks payable to “Petty Cash - Office.” She would then cash two checks at a time payable to “Petty Cash - Office” at a bank branch in Warner Robins. She always came to the bank alone when cashing the checks and would usually receive $50 and $100 bills. She would then use the cash for her own purposes. During the scheme, Bowden forged a total of 419 checks amounting to nearly $1.4 million.
“Over a period of nearly nine years, the defendant, pretending to be a trusted employee, covertly stole nearly $1.4 million from the owners of a successful small business in Warner Robins. This kind of theft is crippling for hard-working, law-abiding citizens, and will not be tolerated in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to thank FBI and Warner Robins Police for their work investigating this case.”
“Bowden was elevated to a position of leadership by the company that hired and chose to throw her lucrative career away,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the investigative efforts of our law enforcement partners, she will spend time in prison for choosing her own self-interest and greed over her former company’s trust.”
“Ms. Bowden played on the goodwill of her employer who entrusted her to do the right thing with the company money. Ms. Bowden’s greed and corruption, although seemingly small at the time, resulted in tremendous losses for her employer, employees, bank and those who do business with the company. White-collar crime is not victimless. Warner Robins Police are appreciative of the assistance from FBI and the U.S. Attorney’s Office in the prosecution of Ms. Bowden,” said Warner Robins Police Chief John Wagner.
The case was investigated by FBI, Macon Resident Agency and by the Warner Robins Police Department. Assistant U.S. Attorney Paul McCommon prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Five Peruvians Extradited for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Five residents of Lima, Peru, were extradited to the United States and made their initial appearances in Miami federal court, where they stand accused of operating a large fraud and extortion scheme targeting Spanish-speaking consumers in the United States, the Department of Justice and U.S. Postal Inspection Service announced today.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Acting Assistant Attorney General Jeffrey Bossert Clark. “Criminals who defraud and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”
“The U.S. Postal Inspection Service (USPIS) will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said USPIS Miami Division Inspector in Charge Antonio J. Gomez. “With the continued cooperation of foreign governments, these criminals will be aggressively pursued and brought to justice.”
Henrry Milla Campuzano, 36; Fernan Huerta Haro, 33; Evelyng Milla Campuzano, 35; Jerson Renteria Gonzales, 37; and Omar Cuzcano Marroquin, 32; all of Lima, Peru, face a 55-count indictment charging them with conspiracy, mail fraud, wire fraud, and extortion. The indictment was filed in the U.S. District Court for the Southern District of Florida in June 2018 and unsealed upon the defendants’ extradition to the United States.
According to the indictment, the defendants managed and operated a series of connected Peruvian call centers that used Internet-based telephone calls to contact Spanish-speaking consumers in the United States. The call centers falsely told consumers they had won raffles for free products, including computer tablets with English-language courses. Many consumer victims expressed interest in receiving the free products. In later calls, those victims—many of whom were elderly — were told they were required to make large payments to receive the products. When victims objected, the callers misrepresented that the victims had unlawfully failed to pay for or receive delivery of products.
According to the indictment, the defendants and their employees falsely claimed to be lawyers, court officials, federal agents, and representatives of a supposed “minor crimes court.” The defendants and their employees falsely told victims that they had a contractual obligation to pay for and receive products and had caused legal problems for themselves and others by allegedly failing to do so. The indictment alleges that the callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. According to the indictment, many victims paid because of these baseless threats, and the defendants and their co-conspirators fraudulently collected over $3 million in victim payments.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Civil Division, Consumer Protection Branch. The USPIS investigated the case. The Department of Justice's Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Federal Grand Jury Indicts Two Individuals for KidnappingRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted two persons alleging they collected ransom money as part of a kidnapping conspiracy, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Secret Service Special Agent in Charge Patrick Davis.
A two-count indictment filed in U.S. District Court charges Matthew Amos Burke, 34, and Tabatha Nicole Hodges, 32, each with one count of conspiracy and one count of kidnapping.
According to the indictment, on September 11, 2020, Burke and Hodges traveled to a residence in Jefferson County, Alabama and unlawfully entered an individual’s home. They abducted him and transported him to a residence in Remlap, Alabama, in an effort to obtain ransom money in the amount of $250,000. A wire transfer in the amount of $250,000 was sent to a bank account belonging to Hodges. After receiving the ransom money, Burke and Hodges transported the individual back to his residence and released him. Burke told him that his family would be killed if he called the police about the kidnapping or the ransom.
The maximum penalty for conspiracy is five years in prison. The maximum penalty for kidnapping is up to life in prison.
FBI and United States Secret Service investigated the case, along with Birmingham Police Department, and Mountain Brook Police Department. The case is being prosecuted by Assistant United States Attorney John G. Camp and Assistant United States Attorney William G. Simpson.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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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.
Federal Grand Jury Indicts New Orleans Man for a Firearms ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that on Friday, October 23, 2020, CHRISTOPHER ARANA, age 26, a resident of New Orleans, Louisiana was charged in a one-count indictment by a federal grand jury. ARANA is charged with Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted, ARANA faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Federal Grand Jury Indicts New Orleans Man for a Firearms ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that on Friday, October 23, 2020, JAYLON JOHNSON, age 23, a resident of New Orleans, Louisiana was charged in a one-count indictment by a federal grand jury. JOHNSON is charged with Possession of Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted, JOHNSON faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Euclid man with previous conviction of involuntary manslaughter charged in string of armed robberiesRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a nine-count indictment charging David C. Johnson, age 33, of Euclid with four counts of robbery, four counts of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm.
The indictment states that between November 27, 2019, and January 25, 2020, the defendant is alleged to have committed a series of armed robberies of individuals and businesses in Cleveland, Euclid, Parkman, and Chardon. The following is a list of the alleged armed robberies charged in the indictment:
- Sunoco gas station in Euclid on November 27, 2019.
- BP gas station in Parkman on January 18, 2020.
- Dollar General in Chardon on January 18, 2020.
- Gas Mart gas station in Euclid on January 25, 2020.
According to the criminal complaint, investigators located a stolen vehicle used in the alleged robberies at the known residence of the defendant. A search of the residence and the defendant produced several items of clothing and a .40 caliber, semi-automatic pistol, all observed in surveillance video. In addition, law enforcement officers performed a review of a Google account connected to a cell phone seized during the search of the defendant. GPS coordinates of the account were consistent with the dates and times of several of the alleged robberies.
The defendant is prohibited from possessing a firearm due to previous convictions for felon in possession of a firearm, involuntary manslaughter and aggravated robbery.
This matter is part of Operation Legend in Cleveland, a systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding this indictment was conducted by the FBI, the ATF, Lake County Sheriff’s Office, Geauga County Sheriff’s Office, Geauga County Prosecutor’s Office, Cuyahoga County Prosecutor’s Office Crime Strategies Unit, Euclid Police Department, Willoughby Police Department and the Cleveland Division of Police. This case is being prosecuted by Assistant United States Attorneys Kelly Galvin and Margaret Kane.
Elmira Methamphetamine Trafficker Going to Prison for More Than 16 1/2 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr., announced today that Kevin E. McKinney a/k/a K-Born, 43, of Elmira, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 50 grams of methamphetamine, was sentenced to serve 200 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Robert A. Marangola, who handled the case, stated that the charges stem from a long-term, multi-agency investigation into the trafficking of large quantities of methamphetamine in the City of Elmira. On September 13, 2019, law enforcement executed a federal search warrant at an apartment at 916 Grand Central Avenue in Elmira. Officers seized over 1.1 kilograms of 95% pure methamphetamine, a quantity of heroin, and narcotics distribution paraphernalia. McKinney was arrested along with Jamal Anderson a/k/a Blaze, and Briana Hall. McKinney had over $3,200 in his pockets, as well as keys to the apartment at 916 Grand Central Avenue. The cash seized from McKinney has been forfeited as drug proceeds by the DEA.
McKinney obtained large quantities of methamphetamine in New Jersey, which he transported to Elmira. He stored and packaged the methamphetamine for distribution at various locations, including the Grand Central Avenue residence and residences on W. First Street and Henry Street. In addition, McKinney facilitated third-party purchases and directed the distribution of methamphetamine to others. During the conspiracy, McKinney and other members of the conspiracy also possessed firearms.
Brianna Hall was previously convicted and is awaiting sentencing.
Charges remain pending against Jamal Anderson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Elmira Police Department, under the direction of Chief Joseph Kane; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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El Fiscal Federal Para El Distrito De Puerto Rico W. Stephen Muldrow Nombra Funcionario ElectoralRead the Press Release
El fiscal federal W. Stephen Muldrow anunció hoy que el Jefe de la Sección de Fraude Financiero y Corrupción, el fiscal federal auxiliar (AUSA, por sus siglas en inglés) Seth Erbe, liderará los esfuerzos de su oficina relacionados con el Programa del Día de las Elecciones del Departamento de Justicia a nivel nacional para las elecciones generales este próximo 3 de noviembre de 2020. Se ha nombrado a AUSA Erbe para que ejerza como el funcionario electoral del distrito (DEO, por sus siglas en inglés) para el Distrito de Puerto Rico. En dicha capacidad, en este Distrito, será responsable por supervisar el manejo de las querellas de fraude electoral y las inquietudes sobre los derechos de los electores en consulta con la sede del Departamento de Justicia en Washington.
El fiscal Muldrow expresó: “Todo ciudadano tiene que poder votar sin interferencias o discriminación y que su voto se cuente sin que se lo roben fraudulentamente. El Departamento de Justicia siempre actuará cuando sea debido para proteger la integridad del proceso electoral”.
El Departamento de Justicia juega un papel importante en impedir el fraude electoral y el discrimen en las urnas y en combatir estas faltas cuando y dondequiera que ocurran. El tradicional Programa del Día de las Elecciones promueve estos objetivos y también busca garantizar la confianza del público en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento para que el público informe sobre posibles fraudes electorales y violaciones de los derechos de los electores mientras los colegios de votación estén abiertos el día de las elecciones.
La ley federal protege contra delitos como intimidar o sobornar a los electores, comprar y vender votos, hacerse pasar por electores, alterar los recuentos de votos, llenar las urnas y marcar las boletas de los electores en contra de su voluntad o sin tomar en cuenta su opinión. También existen protecciones especiales para los derechos de los electores y establece que pueden votar libres de actos que los intimiden o acosen.
Por ejemplo, personas que actúen con la intención interrumpir o intimidar a los electores en los colegios de votación al interrogarlos o desafiarlos, o al tomarles fotos o videos, con el pretexto de que se trata de acciones para descubrir votaciones ilegales pueden violar la ley federal de derecho al voto. Además, la ley federal protege el derecho de los electores a marcar su propia papeleta o a que los asista una persona que ellos elijan (cuando los electores necesitan ayuda debido a una discapacidad o por analfabetismo).
El sufragio es el fundamento de la democracia estadounidense. Todos debemos asegurarnos de que aquellos que tienen derecho al voto, puedan ejercerlo si así lo eligen y que aquellos que busquen corromperlo tengan que enfrentar a la justicia. Para responder a las querellas de fraude electoral o inquietudes sobre los derechos de los electores durante el período de votación que finaliza el 3 de noviembre de 2020, y para garantizar que dichas quejas se dirijan a las autoridades correspondientes, el fiscal federal Muldrow expresó que AUSA/DEO Erbe estará de turno en este Distrito mientras los colegios estén abiertos. El público puede comunicarse con él en los siguientes números de teléfono 787-340-1795 o 787-340-1890.
Además, el FBI tendrá agentes especiales disponibles en cada oficina local y agencia residente en todo el país para recibir querellas de fraude electoral y otros abusos electorales el día de las elecciones. El público puede comunicarse con la oficina local del FBI llamando al 787-754-6000 o 787-987-6500.
Las querellas sobre posibles violaciones de las leyes federales de derecho al voto pueden presentarse directamente a la División de Derechos Civiles en Washington, DC, por teléfono al (800) 253-3931 o mediante el formulario de querellas en https://civilrights.justice.gov/.
En caso de un delito de violencia o intimidación, llame al 911 de inmediato y antes de comunicarse con las autoridades federales. La policía estatal y local tiene jurisdicción primaria sobre los colegios de votación y casi siempre tienen la capacidad de reaccionar más rápidamente ante una emergencia.
El fiscal federal Muldrow afirmó que “asegurar unas elecciones libres y justas depende en gran parte de la cooperación del electorado estadounidense. “Es imperativo que aquellos que tienen información específica sobre discrimen o fraude electoral lo reporten mi oficina, el FBI o la División de Derechos Civiles”.
El año 2020 marca el 150 aniversario del Departamento de Justicia. Conozca más sobre la historia de nuestra agencia en www.Justice.gov/Celebrating150Years.
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Eau Claire Man Arrested by Operation Kick Boxer for Child Pornography Distribution ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 20, 2020, a federal grand jury handed down an indictment alleging that Evan C. Pasicznyk (age: 36) of Eau Claire, Wisconsin, distributed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A).
Pasicznyk is charged with a single-count of distributing child pornography. The count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction.
Pasicznyk’s indictment is a direct result of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office, https://go.usa.gov/x72WN
This case was investigated by the Federal Bureau of Investigation’s Milwaukee and Green Bay Offices, as well as the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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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Drug Trafficker from Ville Platte Sentenced on Federal Drug ChargesRead the Press Release
LAFAYETTE, La. - A Ville Platte man was sentenced today by United States District Judge Robert R. Summerhays for conspiracy to distribute and possess with intent to distribute methamphetamine, announced Acting United States Attorney Alexander C. Van Hook.
Closton John Melvin, a/k/a “Git Money C,” a/k/a “C.J.,” 34, was sentenced to 127 months (10 years, 7 months) in prison followed by 5 years of supervised release. Melvin pled guilty to the charge on November 8, 2019. The charge stems from a multi-agency investigation into the drug trafficking activities of Melvin and 11 other co-defendants.
In November and December 2018, law enforcement agents made undercover purchases of methamphetamine and cocaine from Melvin. According to documents introduced in court, laboratory tests confirmed that the drugs sold by Melvin were 27.9 grams of cocaine and approximately 122 grams of methamphetamine. Law enforcement agents continued their investigation into the drug trafficking activities of Melvin and obtained authorization from the court to conduct a wiretap on Melvin’s cell phone that he used to organize narcotics transactions. During the interceptions, law enforcement agents intercepted calls wherein Melvin used his phone to coordinate methamphetamine distribution and he sold smaller amounts of other drugs including powder and crack cocaine.
This prosecution is part of a larger investigation conducted by the Drug Enforcement Administration through its Southwest Louisiana HIDTA Task Force and Organized Crime and Drug Enforcement Task Forces. The Louisiana State Police Narcotics Division initiated the investigation, and Special Agents with DEA, as well as Task Force Officers assigned to the Southwest Louisiana HIDTA Task Force, completed the investigation. In addition to the above conviction and sentence, the investigation resulted in the dismantling of a drug trafficking organization in Ville Platte, Louisiana. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
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Department of Justice Files Complaint Against California Company to Stop Distribution of Adulterated Animal DrugsRead the Press Release
The United States filed a civil complaint to stop a California company from manufacturing and distributing adulterated animal drugs, the Department of Justice announced today.
The complaint, filed October 27, seeks a permanent injunction against defendants Med-Pharmex, Inc. (MPX), Gerald P. Macedo, and Vinay M. Rangnekar to prevent them from manufacturing and distributing animal drugs under conditions that fall short of the minimum regulatory requirements to ensure safety and quality. The complaint alleges that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that the defendants failed to conform to current good manufacturing practices (cGMPs), including failure to maintain sterility.
“Americans depend on animal drugs being safe and effective,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will continue working with FDA to ensure all drug manufacturers abide by public safety requirements.”
“Ensuring FDA-approved animal medications are safe, effective and manufactured using current good manufacturing practices is an important part of the FDA’s mission to protect human and animal health,” said FDA Chief Counsel Stacy Amin. “The FDA will continue to pursue actions against those who put animal patients in harm’s way by manufacturing and distributing adulterated animal drug products.”
According to the complaint, FDA issued a warning letter to MPX in 2017 regarding numerous deficiencies at the company. The complaint further alleges that the company failed to adequately investigate reports regarding the death or illness of animals receiving Med-Pharmex drugs. The complaint also alleges that FDA inspections revealed the company failed to properly clean and disinfect areas used to manufacture sterile drugs. The Justice Department filed the complaint in U.S. District Court for the Central District of California at the request of FDA.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Rachel E. Baron of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel James C. Fraser of the FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.