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Tuesday 20 October 2020
Postal Service Employee Admits Stealing MailRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted to stealing gift cards and cash from mail that passed through post offices where he was employed, U.S. Attorney Craig Carpenito announced.
Daniel Talorico, 40, of Sewell, New Jersey, pleaded guilty by videoconference today before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of mail by a postal employee.
According to documents filed in this case and statements made in court:
Talorico was employed by the U.S. Postal Service as a laborer custodian in post offices in Burlington County and Camden County, New Jersey. Between May 2019 and October 2019, Talorico stole gift cards and cash from greeting cards and other mail that passed through the post offices where he worked.
The theft of mail by a postal employee charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 1, 2021.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Service Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Kenneth Cleevely, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Portland Man Accused of Illegal Possession of Body ArmorRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Portland Oregon man with a previous felony conviction has been charged with possessing body armor during protest activity in Portland.
Maurice Lonnie Monson, 30, is charged by indictment with one count of Felon in Possession of Body Armor in violation of Title 18 U.S.C. Section 931.
According to court documents, on the evening of September 4, 2020, a group of protestors were blocking traffic along North Lombard Street in Portland, Oregon, near the vicinity of the Portland Police Association (PPA) office. The PPA office has been targeted by violent protest activity numerous times throughout the summer.
At approximately 11:35 p.m., Portland Police declared an unlawful assembly after some within the protest hurled rocks, water bottles and cans at officers. As part of the unlawful assembly declaration, protestors were ordered to clear the roadway. Monson was arrested when he failed to comply with the order to disperse. When arrested, it was discovered that Monson was wearing a ballistic “bullet proof” vest. Additional investigation revealed that Monson has a previous felony conviction in Multnomah County, Oregon in 2009. As such, it is illegal for Monson to possess ballistic body armor.
Monson made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was arraigned, pleaded not guilty, and ordered released pending a two-day jury trial scheduled to begin on December 22, 2020.
The Federal Bureau of Investigation investigated this case. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Sentenced to Six Years for Receiving Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to six years’ (72 months’) imprisonment and seven years’ supervised release on his conviction of Receipt of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Michael Riley, age 35, of Pittsburgh, Pennsylvania.
According to information presented to the court, from January 2, 2020 through March 3, 2020, Riley used a computer issued to him by his employer to knowingly receive and attempt to receive visual depictions of minors engaging in sexually explicit conduct, namely videos.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Riley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pennsylvania Biofuel Company and Owners Sentenced on Environmental and Tax Crime Convictions Arising out of Renewable Fuels FraudRead the Press Release
Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim.
U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019. The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Miner was the founder and chief executive officer of Keystone. Wootton was president of Keystone, and a former member of the National Biodiesel Board. The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection. Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment. Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.
“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”
“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania. “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone. Unfortunately, the defendants used this program to benefit only themselves. Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”
“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”
“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.”
“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets. Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI). “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”
“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office. “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”
Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced. The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system.
Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit. The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel. Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel. In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.
The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards.
The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division. EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.
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.
Press Release by Mark a. Klaassen, United States Attorney for the District of Wyoming, Relating to the November 2020 General ElectionRead the Press Release
United States Attorney Mark A. Klaassen announced today that Assistant United States Attorney (AUSA) Timothy W. Gist will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Gist has been appointed to serve as the District Election Officer (DEO) for the District of Wyoming, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.” stated United States Attorney Klaassen.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Klaassen stated that AUSA/DEO Gist will be on duty in this District while the polls are open. AUSA/DEO Gist can be reached by the public at the following telephone number: (307) 332-8195.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (307) 335-7559.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Klaassen said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
Owner of Queens Acupuncture Business Pleads Guilty to Aiding and Assisting the Preparation of a False Tax ReturnRead the Press Release
The co-owner of a New York acupuncture business pleaded guilty yesterday to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Nikki B. Yu of Queens, New York, co-owned and operated Wellife Physical Therapy and Acupuncture PLLC (Wellife), and was also involved in the operation of Welling Physical Therapy and Acupuncture PLLC (Welling), both of which had locations throughout New York City. Yu used a series of management companies in order to receive untaxed income from the businesses. She and others transferred funds from Welling and Wellife to the management companies, but did not report those funds to the IRS. Rather, Yu and others cashed approximately $3 million in checks payable to the management companies at a check cashing business, and then provided false and incomplete information to her tax return preparers by failing to disclose this check cashing activity. As part of her plea agreement, Yu admitted that she caused six false income tax returns to be filed on behalf of the management companies, understating their gross receipts.
U.S. District Judge Ann M. Donnelly set sentencing for April 21, 2021. Yu faces up to three years in prison and a $250,000 fine.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Anahi Cortada and Thomas Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Newark City Council Member Charged with Scheming to Obtain Bribes and Kickbacks; Co-Schemer Admits Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A member of the Newark Municipal Council and Board of Directors of the Newark Community Economic Development Corporation (NCEDC) was charged today with scheming to obtain bribes and kickbacks, U.S. Attorney Craig Carpenito announced.
Joseph A. McCallum Jr., 65, of Newark, is charged by complaint with one count of wire fraud for allegedly devising a scheme, using interstate wire communications, to defraud Newark and the NCEDC of the right to McCallum’s honest services. McCallum is scheduled to appear on a date that will be determined by the court.
Malik Frederick, 60, of Newark, a participant in the scheme, pleaded guilty today by videoconference before U.S. District Judge William J. Martini to Count 1 of a four-count information, charging conspiracy to commit honest services wire fraud, and Count 3, charging him with subscribing to a false personal federal tax return for 2017 for intentionally not reporting over $100,000 in income.
According to documents filed in these cases and statements made in court:
As a member of the Newark city council, representing the West Ward, and of the NCEDC (now known as Invest Newark!), from 2017 through February 2020, McCallum schemed to receive concealed bribes and kickbacks from Frederick, funded by developers, contracting companies, and other businesses seeking contracts and approvals principally related to development, construction, and real estate projects and deals in Newark. These developers and others were solicited by Frederick to hire his consulting company for “access,” and were introduced to McCallum as the councilman behind the particular project or deal of interest to them. McCallum then received and planned to receive concealed bribes and kickbacks derived from the fees that Frederick obtained from those who retained his company.
In exchange, McCallum used his official positions to provide assistance to those who retained Frederick’s company. For those who refused or hesitated to pay, McCallum and Frederick intended to prevent them from obtaining contracts and work from the NCEDC and the City of Newark. McCallum and Frederick used interstate emails and phone calls to further this scheme and took significant steps to conceal these bribes and kickbacks.
The bribes and kickbacks received and sought by McCallum through Frederick included the following:
- A $16,000 bribe funded by a payment from a contracting company;
- a $25,000 bribe and kickback funded by a payment from a developer’s company;
- $500 in cash to cover travel expenses for an out-of-country trip and an attempt to receive part of a $50,000 payment from a second developer;
- and an attempt to obtain payments from a seller of property in the West Ward and a developer who was seeking to buy and develop the property.
Frederick also sought to have a modular home company that was in negotiations with the NCEDC on a development project in Newark retain Frederick’s company and obtain a $40,000 payment from the company. Frederick intended to share the $40,000 payment with an NCEDC official (Co-Conspirator 2) who referred Frederick to the modular home company and expected a portion of whatever Frederick would be paid. After the modular home company refused to retain Frederick’s company, it did not receive a contract from the NCEDC.
The honest services wire fraud charge alleged in the criminal complaint against McCallum and the wire fraud conspiracy charged in Count 1 of the information to which Frederick pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims, whichever is greater. The false tax return charge to which Frederick pleaded guilty carries a maximum potential penalty of three years in prison and a maximum $250,000 fine, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. Sentencing for Frederick is scheduled for March 2, 2021.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge in Newark George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s charges against McCallum and guilty plea by Frederick.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh, Jeffrey Manis, and Elaine K. Lou of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint against McCallum are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Pleads Guilty to Conspiring to File False ReturnsRead the Press Release
A resident of Newburgh, New York, pleaded guilty today to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Jose Andreu filed false tax returns with the assistance of a return preparer. From 2011 through 2019, Andreu and others prepared and filed false returns through two tax preparation firms that reported significant tax withholdings based on fictitious Forms 1099-OID, in an effort to fraudulently obtain refunds from the IRS. The Forms 1099-OID falsely reported that financial institutions, creditors, and other entities had withheld federal income tax, when in reality no such taxes had been withheld. Andreu also filed false returns for himself and others, claiming more than $2,125,872 in refunds from the IRS.
U.S. District Judge Eric R. Komitee scheduled sentencing for Feb. 24, 2021. Andreu faces up to five years in prison, as well as monetary penalties. As part of his plea agreement, Andreu has agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Ann Marie Cherry and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
New Jersey Man Sentenced to 87 Months on Drug ConvictionRead the Press Release
ALBANY, NEW YORK – Thomas Critten, age 30, of Jersey City, New Jersey, was sentenced today to 87 months in prison for possessing and intending to distribute crack cocaine in St. Lawrence County.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and St. Lawrence County Sheriff Brooks J. Bigwarfe.
As part of his guilty plea, Critten admitted that on December 20, 2018, he brought 104 grams of grams of crack cocaine to Massena, New York, with the intent of distributing it. Critten admitted he had hidden two bags of crack cocaine in his underwear, and that police discovered it during a search for an unrelated arrest. Critten admitted that he was to deliver the crack to a house in Masenna, and was to be paid $1,000 for the delivery.
Chief United States District Judge Glenn T. Suddaby also imposed a 4-year term of supervised release, to begin after Critten’s release from prison.
This case was investigated by the St. Lawrence County Drug Task Force and was prosecuted by Assistant U.S. Attorney Troy Anderson.
Navajo man charged in stabbing in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Jamieson C. Mason, 28, of Upper Fruitland, New Mexico, and an enrolled member of the Navajo Nation, waived his preliminary hearing in federal court today on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. Mason will remain in custody pending trial.
According to a criminal complaint, on Oct. 8, Mason allegedly was present at a residence for a birthday party, remaining mostly outside while others were inside preparing food. Mason allegedly entered the residence, approached the victim, who was sitting on a couch, pushed her torso forward and stabbed her in the back multiple times. Mason then reportedly fled the home.
The assault took place on the Navajo Nation. The victim, who is also an enrolled member of the Navajo Nation, required treatment for her wounds at San Juan Regional Medical Center.
If convicted, he faces up to 10 years in prison for each charge. A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty
The Farmington Office of the FBI and the Navajo Police Department investigated this case. Assistant U.S. Attorney Alexander F. Flores is prosecuting the case.
Nashua Man Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
CONCORD - Shawn Goodine, 44, of Nashua, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on October 25, 2019, members of the Nashua Police Department were called to a residence for a report of domestic violence. When Goodine saw the police arrive at the residence, he went inside the first floor apartment and refused to leave. For the next 11 hours, he made several calls to friends and family, claiming that he had a firearm and that he would “not come out alive.” Several people reported these calls to the police. Officers also heard the defendant yelling, “This isn’t going to end well,” and “If they come in my house, I’m gonna light it up.” Eventually, the police threw chemical munitions in the basement window which resulted in Goodine coming out. Goodine later admitted that he possessed a firearm during the stand-off and the Nashua police recovered the firearm and ammunition in the basement of the residence. Goodine is a convicted felon and prohibited from possessing a firearm and ammunition.
Goodine is scheduled to be sentenced on January 27, 2021.
“In order to keep our communities safe from violence, it is imperative to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “Each day, we work closely with our law enforcement partners to identify and prosecute criminals who endanger our citizens by unlawfully possessing firearms. I am grateful to the Nashua Police Department and ATF for their work in protecting our citizens from potential violence.”
This matter was investigated by the Nashua Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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NDTX Round-Up: October 9-15Read the Press Release
GUILTY PLEA – JOHN ADRIAN GARCIA
On October 13, John Adrian Garcia, 19, plead guilty to carjacking. In June 2019, Garcia took a black Lexus RX from another individual by intimidation and force. Garcia faces up to 15 years in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department as part of the Dallas Project Safe Neighborhoods initiative. Assistant U.S. Attorney Nicole Dana.
SENTENCING – DESMOND WELLS
On October 15, Desmond Wells, 26, was sentenced to 210 months and ordered to pay $110,860.05 in restitution for attempted bank robbery. Upon entering Veritex Community Bank in Fort Worth, Wells and a coconspirator demanded “hundreds, fifties, and twenties” from bank employees. Seconds later, the coconspirator fired gunshots at bank employees striking two tellers behind the counter and one employee seated at the center island. Both Wells and the coconspirator fled the bank only to be arrested by law enforcement later the same day. This case was investigated by the FBI’s Dallas Field Office and the Fort Worth Police Department. Assistant U.S. Attorney Daniel Cole prosecuted this case.
GUILTY PLEA – GERSON GAMALIEL ROJO GUZMAN
On October 15, Gerson Gamaliel Rojo Guzman, 30, plead guilty to possession with the intent to distribute 500 grams or more of methamphetamine and cocaine. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash. Rojo Guzman faces up to 20 years in federal prison for his crimes. This case was investigated by the Texas Department of Public Safety and the Desoto Police Department. Assistant U.S. Attorney P.J. Meitl is prosecuting this case.
GUILTY PLEA – CARLOS DANIEL MARTINEZ-MARIN
On October 15, Carlos Daniel Martinez-Marin, 22, plead guilty to possession with the intent to distribute a controlled substance. DEA agents located a house used as a meth conversion lab in the Northern District that was used by Martinez-Marin and other co-conspirators. As Martinez-Marin exited the house he was arrested, and agents executed a search warrant on the house. Law enforcement recovered a meth conversion lab; large quantities of liquid methamphetamine in 18 containers; 21,332 grams of crystal methamphetamine; 3,013 grams of heroin; $3,252 in drug proceeds. Martinez-Marin faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
Muskogee Man Pleads Guilty to Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Solomon Lamont Horsechief, a/k/a Soloman Lamont Horsechief, age 35, of Muskogee, Oklahoma entered a guilty plea to Sexual Abuse In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2242(2) and 2246(2)(A), punishable by imprisonment of any term of years up to life, a fine up to $250,000.00, or both.
The Information alleged on or about March 27, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engaged and attempted to engage in a sexual act as defined in Title 18, United States Code, Section 2246, with A.R., who was, as the defendant well knew, at that time physically incapable of declining participation in the aforementioned sexual act and who was physically incapable of communicating unwillingness to engage in the aforementioned sexual act.
The charges arose from an investigation by the Muskogee Police Department and 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.
Special Assistant United States Attorney Courtney Jordan represented the United States.
Morris Man Pleads Guilty to Assault Resulting in Substantial Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cameron Austin Burgess, age 22, of Morris, Oklahoma entered a guilty plea to Assault Resulting In Substantial Bodily Injury To A Spouse, Intimate Partner, Or Dating Partner In Indian Country, in violation of Title 18 United States Code, Sections 113(a)(7), 1151, and 1153, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about March 4, 2020, within the Eastern District of Oklahoma, in Indian Country, Cameron Austin Burgess, an Indian, did assault a spouse, intimate partner, or dating partner, resulting in substantial bodily injury.
The charges arose from an investigation by the Henryetta Police Department, Okmulgee Police Department, District 25 Violent Crime Task Force and the Federal Bureau of Investigation.
The Honorable John F. Heil III, U.S. District 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.
Special Assistant United States Attorney Robert Reeves represented the United States at the plea hearing.
Mississippi Man and Destrehan, La. Man Charged with Bank Fraud and Money LaunderingRead the Press Release
NEW ORLEANS – RYAN P. MULLEN, age 39, and a resident of Jayess, Mississippi, and DUANE A. DUFRENE, age 53, and a resident of Destrehan, Louisiana, were indicted on October 16, 2020 by a federal grand jury for conspiracy to commit bank fraud and money laundering, in addition to multiple counts of substantive bank fraud and money laundering, announced U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the now unsealed indictment, MULLEN and DUFRENE utilized fictitious entities, falsified tax returns and provided fraudulent financial statements and appraisals to orchestrate their scheme to defraud the lenders for the purchases of a residence in Jayess, MS (State Bank and Trust), The Briars bed and breakfast in Natchez, MS (Keesler Federal Credit Union) and two other Natchez hotels (Red Oak Capital Group, LLC). The sale of the Jayess residence was premised on false financial information provided by DUFRENE to MULLEN, who then gave it to State Bank. The sales of The Briars and the two hotels were not only premised upon false information prepared by DUFRENE and given to the financial institutions by MULLEN but also upon inflated appraisals based on side sales agreements between MULLEN and DUFRENE. After the sales of the bed and breakfast and hotel properties, MULLEN paid DUFRENE $90,000. MULLEN pocketed over $3 million from the overvalued loans and used the proceeds to buy at least 20 high-end luxury cars.
U.S. Attorney Strasser stated that an indictment merely alleges that crimes have been committed and that defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, MULLEN and DUFRENE face a maximum sentence of (30) thirty years as to the bank fraud conspiracy and bank fraud counts, and a maximum sentence of up to (10) ten years on the money laundering conspiracy and money laundering counts. After imprisonment, the defendants face up to (5) five years of supervised release, and a $1,000,000 fine on the bank fraud counts, and up to (3) three years of supervised release, and a $250,000 fine on the money laundering counts. Each count also has mandatory special assessment of $100.
U.S. Attorney Strasser commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera and Andre Lagarde.
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Middle District of Georgia Election Officers Named, Election Fraud Complaint Phone Numbers OpenRead the Press Release
MACON, Ga. – Two Assistant U.S. Attorneys for the Middle District of Georgia have been named as election officers for the district, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Assistant U.S. Attorneys (AUSAs) Will Keyes and Todd Swanson will lead efforts in connection with the Justice Department’s nationwide Election Day Program for the November 3, 2020, general election. AUSAs Keyes and Swanson have been appointed to serve as the District Election Officers (DEOs) for the Middle District of Georgia, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process,” said U.S. Attorney Peeler.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEOs Keyes and Swanson will be on duty in this District while the polls are open. They can be reached by the public by calling 478-621-2685.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by calling 770-216-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI or the Civil Rights Division,” said U.S. Attorney Peeler.
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.Mexican national headed to prison for importing $375,000 in cocaineRead the Press Release
LAREDO, Texas – A 47-year-old man from Durango, Mexico, has been sentenced to federal prison following his conviction of conspiracy to import cocaine into the United States, announced U.S. Attorney Ryan K. Patrick.
Jaime Barraza-Pena pleaded guilty July 8.
Today, U.S. District Judge Marina Garcia Marmolejo handed Barraza-Pena a 46-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
Barazza-Pena attempted to enter the United States Jan. 26, at the Colombia Solidarity International port-of-entry in Laredo. At that time, a service K-9 alerted to the possible presence of narcotics. Authorities conducted a search and found 14 bundles inside a hidden compartment underneath the center console. They were found to contain approximately 15 kilograms of cocaine with an estimated street value of $375,000.
“Cocaine is a vicious drug that destroys lives, devastates our communities and compromises the public’s safety,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), San Antonio. “The sentence in this case is fitting of the serious crime committed by this defendant. HSI will continue to combat this serious threat.”
HSI conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Aaron Petters is prosecuting the case.
Medical Assistant Admits Role in Genetic Testing Kickback and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Pennsylvania medical assistant today admitted participating in a conspiracy to receive bribes and kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced.
Shanelyn Kennedy, 25, of Scranton, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with one count of conspiring to violate the anti-kickback statute. Kennedy is the second defendant to plead guilty in bribery and kickback schemes involving doctors and medical employees in the Scranton, Pennsylvania, area.
According to documents filed in this case and statements made in court:
Kennedy worked as a medical assistant for Yitzachok “Barry” Kurtzer, a primary care physician with separate offices in the Scranton area. From at least 2018, Kurtzer and his wife, Robin Kurtzer accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Kurtzer’s offices, at times behind locked doors.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued with their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a mobile phone money-transfer application.
Kennedy participated in the conspiracy with another employee, Amber Harris, who has previously pleaded guilty for her role in the scheme. They both helped collect the DNA swabs in exchange for also receiving kickbacks and bribes, both in cash and later using the money-transfer application.
As a result of the scheme, Medicare paid $755,241 for genetic tests generated from Kurtzer’s practice.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for Feb. 23, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges against and allegations in the information pertaining to the Kurtzers are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Maryland U.S. Attorney’s Office and the FBI Warn Marylanders about Election MisinformationRead the Press Release
Baltimore, Maryland - The U.S. Attorney’s Office for the District of Maryland and the FBI are committed to protecting the rights of all Marylanders to vote. U.S. Attorney Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office are issuing this warning to educate voters about the dangers of misinformation about the time, place and manner of voting in Maryland. The Maryland U.S. Attorney’s Office, in partnership with the Justice Department’s Public Integrity Section and the FBI, is launching a National Voter Disinformation Initiative to identify potential voter suppression schemes nationwide—including those using social media to disseminate disinformation regarding the time, place, or manner of voting—that may be federally prosecuted.
“The right to vote is one of the most important rights exercised by Americans,” said U.S. Attorney Robert K. Hur. “Plan now to determine when, where, and how you will vote. Don’t let misinformation keep you from exercising your right to vote!”
What you can do to avoid being misinformed:
Seek out election information from trustworthy sources, verify who produced the content, and consider their intent.
If appropriate, make use of in-platform tools offered by social media companies for reporting suspicious posts that appear to be spreading false or inconsistent information about voting and elections.
Report disinformation about the manner, time, or place of voting in Maryland to the Baltimore Field Office of the FBI at (410) 265-8080 or submit a tip on the FBI’s website at https://www.fbi.gov/tips.
Know when, where, and how you will vote.
Voting Information:
Election Day is November 3, 2020. In Maryland you can vote by mail, use a ballot drop box or vote in in person during early voting or on Election Day.
- Voting By Mail
If you chose to receive your mail-in ballot by U.S. Mail, simply follow the instructions with your ballot and return it in the postage-paid return envelope that accompanies your ballot. Your mail-in ballot must be mailed AND postmarked on or before November 3, 2020, to be counted. Please be advised that putting your ballot in a mailbox on November 3 does not mean it is postmarked that day, so plan ahead.
- Ballot Drop Boxes
You can also put your ballot in a drop off box location up until 8 p.m. on Election Day, November 3. A list of drop box locations can be found on the website of the Maryland State Board of Elections at https://elections.maryland.gov/.
- In-Person Early Voting
In-person voting will begin during the early voting period from Monday, October 26 to Monday, November 2, 2020. On early voting days, approximately 80 vote centers will be open statewide from 7 a.m. to 8 p.m. Voters can cast their vote at any vote center in their county of residence. Visit the Maryland State Board of Election’s website at https://elections.maryland.gov/ to see the list of early voting centers.
- Voting In-Person on Election Day
On Election Day, approximately 315 vote centers will be open statewide, including the early voting centers. Voters can cast their vote at any vote center in their county of residence, and residents in the City of Baltimore may cast their vote at any vote center in the city. Your neighborhood polling place probably will not be open on Election Day, but there should be a vote center near you.
Vote centers will be open from 7 a.m. to 8 p.m. on Election Day. Visit the Maryland State Board of Elections website at https://elections.maryland.gov/ to see the list of Election Day vote centers.
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Marshall County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Justin Michael Fuller, of Moundsville, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Fuller, age 33, pled guilty to one count of “Unlawful Possession of a Firearm.” Fuller, who is not permitted to have a firearm because of a prior conviction, admitted to having a 12-gauge shotgun and a 10mm pistol in Marshall County in May 2019.
Fuller faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Marshall County Sheriff’s Office, and the Ohio County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man sentenced to 21 months in prison for impersonating a Border Patrol agentRead the Press Release
ALBUQUERQUE, N.M. – James Christopher Benvie, 45, was sentenced to 21 months in prison in Las Cruces on Oct. 15 on two counts of false personification of a Border Patrol agent.
A federal jury previously returned a guilty verdict towards Benvie on March 3. According to public court records and evidence at trial, Benvie was a leader and spokesperson for a group of vigilantes who established a “camp” at the Southwest border in Doña Ana County, New Mexico. Many members of the group wore badges, camouflage and other military-style clothing, often covered their faces with masks, and carried pistols and assault rifles. Benvie misrepresented himself as a Border Patrol Agent when stopping immigrants he suspected of crossing into the United States illegally.
The evidence at trial showed Benvie and other group members stopped six women and children from El Salvador on April 15, 2019, without any legitimate law enforcement authority. Benvie misrepresented himself as a Border Patrol agent and interrogated the immigrants before turning them over to actual Border Patrol agents. On April 17, 2019, Benvie stopped four adults and three children shortly after they crossed the border. Benvie ordered these immigrants to “stop” while misrepresenting himself as “Border Patrol.” Benvie later directed these immigrants to move toward the truck of another member of the group for further interrogation before eventually turning them over to Border Patrol.
Upon his release from Prison, Benvie will be subject to one year of supervised release.
The FBI and U.S. Border Patrol investigated this case. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case.
Louisiana Man Sentenced for Health Care FraudRead the Press Release
Defendant fraudulently obtained health care benefits by illegally enrolling extended family members
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Edward Stephen, 61, of Baton Rouge, Louisiana, was sentenced to 24 months of probation with the condition that the first six months be served on home confinement, and a fine of $10,000, for a federal health care fraud violation. He was also ordered to pay restitution of $108,411.59, a sum of money that Stephen has already paid over to the United States District Court Clerk to be immediately applied to the fraud loss.
“When federal workforce programs are defrauded, it comes at great cost to taxpayers,” said United States Attorney Mike Stuart. “I appreciate the work of the U.S. Department of Transportation OIG and Office of Personnel Management OIG investigators in this case. We will continue to work with our law enforcement partners to suss out fraud schemes, hold perpetrators accountable and seek restitution for victims.”
Stephen was a federal employee with the U.S. Department of Transportation Federal Highway Administration. As a federal employee, he was eligible for health insurance provided by the federal government. Stephen fraudulently enrolled extended family members into his federal health care plan, knowing they were not eligible for federal health care benefits. Specifically, Stephen enrolled his sister as though she was his wife and his niece as though she was his step-child so that they would obtain federal health care coverage they were not entitled to receive. This scheme lasted from 2005 to 2017 and included several years where Stephen resided in and worked in Charleston as a federal employee. When investigators learned of the fraud, Stephen gave a statement to investigators with the Department of Transportation Office of Inspector General. In his statement, Stephen admitting that he fraudulently placed his extended family members on his federal insurance knowing they were not entitled to receive benefits. In total, the Court found that the government was defrauded out of $108,411.59 in fraudulent premium payments and reimbursements.
“Federal employees who engage in fraud related to aspects of their employment erode public confidence in the high standard of integrity to which they are held,” said Jamie Mazzone, regional Special Agent-In-Charge, Department of Transportation Office of Inspector General. “Today’s sentencing illustrates our commitment to working with our law enforcement and prosecutorial partners to root out schemes that illegally take advantage of Federal workforce programs and benefits.”
“Healthcare fraud takes many forms, including knowingly enrolling ineligible individuals in the FEHBP,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “Through his fraudulent conduct, the defendant stole from the Federal Government and the American taxpayer. Today’s sentencing is an important step towards accountability and I applaud the hard work of the OPM OIG investigative staff and our Department of Justice partners on this case.”
Stuart praised the work of the U.S. Department of Transportation Office of Inspector General (DOT OIG) and the Office of Personnel Management Office of Inspector General (OPM OIG). The investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00077.
Follow us on Twitter: SDWVNews and USAttyStuart
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Lincoln Man Convicted for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Joshua D. Walsh, 29, of Lincoln, Nebraska, was sentenced today in Lincoln by Senior United States District Judge Richard G. Kopf for receipt and distribution of child pornography. Walsh was sentenced to 5 years in prison and 5 years of supervised release. There is no parole in the federal system. Walsh was additionally ordered to pay $3,000 in restitution which will contribute to funds established for victims of these types of crimes.
In June of 2017, the National Center for Missing and Exploited Children (NCMEC) generated five cybertips that originated from Chatstep, a social networking website that allows users to interact in online chatrooms. The cybertips related to images of child pornography being shared by an individual later identified to Walsh. Based upon the cybertips and subsequent investigation, the Nebraska State Patrol (NSP) served a federal search warrant at Walsh’s residence on July 26, 2018. Walsh admitted to possessing and viewing child pornography during an interview. Walsh also admitted that he used Chatstep around June of 2017 to engage in chats with other individuals and to share child pornography that he had uploaded. A subsequent analysis of Walsh’s cellphone and Dropbox accounts revealed approximately 264 image files and 4 video files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Leesburg Man Arrested for $2.5M CARES Act Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Leesburg man was arrested today on charges of fraudulently obtaining over $2.5 million in loans through the CARES Act Paycheck Protection Program (PPP), and then spending the fraudulently obtained money on luxury items.
According to court documents, Didier Kindambu, 48, fraudulently obtained two loans issued under the PPP, a program instituted by Congress in an effort to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. Kindambu carried out the scheme in connection with two businesses that he owns by creating fraudulent payroll documentation for each business, and then submitting that documentation in support of the PPP loan applications. In total, Kindambu fraudulently obtained approximately $2,501,753 in loan proceeds, and then spent those funds, in part, on items unrelated to any legitimate PPP-related expense, such as a Lexus automobile and a Cessna aircraft.
Kindambu is scheduled to make his initial appearance in federal court in Alexandria today at 2 p.m.
Kindambu is charged with one count of bank fraud. If convicted, he faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement.
Assistant U.S. Attorney Matthew Burke 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-mj-286.
Lee County Probationer Sentenced to 180 Months in Prison for Distributing MethRead the Press Release
ALBANY, Ga. – A Lee County, Georgia woman caught by agents with nearly 200 grams of pure methamphetamine while on probation was sentenced to serve 15 years in federal prison for her crime, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Amanda Smith, 38, of Leesburg, Georgia was sentenced to serve 180 months in prison by U.S. District Judge Louis Sands on Monday, October 19, after previously pleading guilty to one count possession with intent to distribute methamphetamine. Co-defendant Daniel Calhoun, 39, of Leesburg, pleaded guilty to one count possession of a firearm by an unlawful user of a controlled substance and was sentenced to three years of probation by U.S. District Judge Leslie Gardner March 11, 2020. There is no parole in the federal system.
“The consequence for repeat offenders pushing methamphetamine into our communities is federal prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank the combined efforts of federal and local law enforcement agents for shutting down a known meth dealer pushing poison into Lee County and surrounding communities.”
“As with all drug traffickers, this ‘repeat offender’ methamphetamine distributor was driven by greed and power,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “As a result of this sentence, she will spend well-deserved time in prison.”
“We work closely with state and federal law enforcement agencies to investigate and arrest dangerous people and put them behind bars so they can no longer be a menace to our community. I appreciate that we work well with these agencies. Together, we can accomplish more to protect the hardworking citizens of Lee County,” said Lee County Sheriff Reggie Rachals.
According to her signed plea agreement, Smith was under surveillance by agents based on information from a confidential informant regarding her activities. Smith was previously convicted of a felony offense in the Superior Court of Lee County and was on probation. Agents conducted a traffic stop in Lee County near New York Road in October 2017 to execute a probation search. The vehicle was driven by Calhoun. Inside, agents found approximately 60 grams of methamphetamine. Agents later discovered 137 grams of methamphetamine with a purity of 100% at Smith’s home. Agents also found three shotguns, a rifle, $3,000 in cash, plastic bags and a digital scale inside Smith’s residence.
The case was investigated by the Lee County Sheriff’s Office and the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant U.S. Attorney Leah McEwen. 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.
Justice Department Sues Monopolist Google for Violating Antitrust LawsRead the Press Release
Note: Click for Attorney General Barr's statement and Deputy Attorney General Rosen's remarks.
Today, the Department of Justice — along with eleven state Attorneys General — filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to stop Google from unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets and to remedy the competitive harms. The participating state Attorneys General offices represent Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, South Carolina, and Texas.
“Today, millions of Americans rely on the Internet and online platforms for their daily lives. Competition in this industry is vitally important, which is why today’s challenge against Google — the gatekeeper of the Internet — for violating antitrust laws is a monumental case both for the Department of Justice and for the American people,” said Attorney General William Barr. “Since my confirmation, I have prioritized the Department’s review of online market-leading platforms to ensure that our technology industries remain competitive. This lawsuit strikes at the heart of Google’s grip over the internet for millions of American consumers, advertisers, small businesses and entrepreneurs beholden to an unlawful monopolist.”
“As with its historic antitrust actions against AT&T in 1974 and Microsoft in 1998, the Department is again enforcing the Sherman Act to restore the role of competition and open the door to the next wave of innovation—this time in vital digital markets,” said Deputy Attorney General Jeffrey A. Rosen.
As one of the wealthiest companies on the planet with a market value of $1 trillion, Google is the monopoly gatekeeper to the internet for billions of users and countless advertisers worldwide. For years, Google has accounted for almost 90 percent of all search queries in the United States and has used anticompetitive tactics to maintain and extend its monopolies in search and search advertising.
As alleged in the Complaint, Google has entered into a series of exclusionary agreements that collectively lock up the primary avenues through which users access search engines, and thus the internet, by requiring that Google be set as the preset default general search engine on billions of mobile devices and computers worldwide and, in many cases, prohibiting preinstallation of a competitor. In particular, the Complaint alleges that Google has unlawfully maintained monopolies in search and search advertising by:
- Entering into exclusivity agreements that forbid preinstallation of any competing search service.
- Entering into tying and other arrangements that force preinstallation of its search applications in prime locations on mobile devices and make them undeletable, regardless of consumer preference.
- Entering into long-term agreements with Apple that require Google to be the default – and de facto exclusive – general search engine on Apple’s popular Safari browser and other Apple search tools.
- Generally using monopoly profits to buy preferential treatment for its search engine on devices, web browsers, and other search access points, creating a continuous and self-reinforcing cycle of monopolization.
These and other anticompetitive practices harm competition and consumers, reducing the ability of innovative new companies to develop, compete, and discipline Google’s behavior.
The antitrust laws protect our free market economy and forbid monopolists from engaging in anticompetitive practices. They also empower the Department of Justice to bring cases like this one to remedy violations and restore competition, as it has done for over a century in notable cases involving monopolists over other critical industries undergirding the American economy like Standard Oil and the AT&T telephone monopoly. Decades ago the Department’s case against Microsoft recognized that the antitrust laws forbid anticompetitive agreements by high-technology monopolists to require preinstalled default status, to shut off distribution channels to rivals, and to make software undeletable. The Complaint alleges that Google is using similar agreements itself to maintain and extend its own dominance.
The Complaint alleges that Google’s anticompetitive practices have had harmful effects on competition and consumers. Google has foreclosed any meaningful search competitor from gaining vital distribution and scale, eliminating competition for a majority of search queries in the United States. By restricting competition in search, Google’s conduct has harmed consumers by reducing the quality of search (including on dimensions such as privacy, data protection, and use of consumer data), lessening choice in search, and impeding innovation. By suppressing competition in advertising, Google has the power to charge advertisers more than it could in a competitive market and to reduce the quality of the services it provides them. Through filing the lawsuit, the Department seeks to stop Google’s anticompetitive conduct and restore competition for American consumers, advertisers, and all companies now reliant on the internet economy.
Google is a limited liability company organized and existing under the laws of the State of Delaware, and is headquartered in Mountain View, California. Google is owned by Alphabet Inc., a publicly traded company incorporated and existing under the laws of the State of Delaware and headquartered in Mountain View, California.
Justice Department Announces National Response Center and Offer to Bring Assistance to Minneapolis Police Department to Support Law Enforcement and Safe Communities Through Fair PolicingRead the Press Release
The Justice Department, in an announcement by Assistant Attorney General for the Civil Rights Division Eric S. Dreiband, Principal Deputy Assistant Attorney General of the Office of Justice Programs (OJP) Katharine T. Sullivan, and U.S. Attorney for the District of Minnesota Erica H. MacDonald, unveiled a new National Response Center Initiative and offered the assistance to the Minneapolis Police Department (MPD) to support law enforcement, and review, enhance and reform policies and practices to prevent the use of excessive force. The Bureau of Justice Assistance's (BJA) Law Enforcement Training and Technical Assistance Response Center will be a national resource for all state, local, and tribal law enforcement agencies.
“I have heard, loud and clear, from Minneapolis faith, community, and business leaders the call for safety and protection in our community,” said U.S. Attorney for the District of Minnesota Erica H. MacDonald. “Today we announce a new initiative between the Department of Justice and MPD, offering federal resources to assist MPD in their reform efforts to better serve the City of Minneapolis.”
“As Chief of Police I’m grateful for the opportunity to partner with our U.S. Attorney Erica MacDonald to launch the Department of Justice Reponse Center Program to improve law enforcement and community protection here in Minneapolis,” said Chief Medaria Arradondo, MPD. “In creating a new MPD, I want to utilize all available tools and resources to support the hardworking and professional men and women of the MPD. We have an obligation and duty to be guardians of our communities and enhance our level of service and this program seeks to do just that. I want to thank our U.S. Attorney for her leadership and assistance in this endeavor.”
“Our goal with this new policing initiative and offer of assistance to MPD to keep everyone safe and secure through Constitutional and otherwise lawful police practices,” said Assistant Attorney General Eric S. Dreiband for the Civil Rights Division. “We are excited about the opportunity to partner with Chief Medaria Arradondo and MPD to protect the people of Minneapolis and support law enforcement. We seek to ensure public safety and eliminate excessive force by the police. We also seek to enforce the rule of law to protect the people of Minneapolis and because doing so is necessary to all civilized societies.”
“The Department of Justice maintains a long-standing commitment to public safety, and inherent in that commitment is the desire for highly skilled, highly trained professionals capable of protecting their communities while promoting the principles of equity and fairness that form the foundation of law and order,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “This initiative will help law enforcement officers adapt to the wide range of challenges they face every day, from violent gangs, illegal guns, and lethal drugs to civil unrest, decisions about use of force, and the complex social problems like addiction and mental illness that they are so often called on to resolve.”
Following the announcement of the program, various representatives of the Civil Rights Division, OJP, and U.S. Attorney’s Office for the District of Minnesota will meet with a diverse group of faith, business and community leaders in roundtable events to hear from these stakeholders about important issues related to safe policing and safe communities.
Additional information about the Civil Rights Division of the Justice Department is available at www.justice.gov/crt. More information about the Office of Justice Programs and its components, please visit at www.ojp.gov.
Judge sentences St. Louis man for robbing people at St. Charles Fireworks stand at gunpointRead the Press Release
ST. LOUIS, MO – United States District Judge Ronnie L. White sentenced Duianete Moore to 264 months in prison. The 39-year-old St. Louis, Missouri resident pleaded guilty to federal felony charges of robbery affecting interstate commerce, possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
Moore engaged in on-going criminal activity throughout the spring and summer of 2018, including the theft of firearms from vehicles on four separate occasions. On June 26, 2018, Moore and a woman rushed into the Crazy Cheap Fireworks tent in St. Charles County. Moore pointed a firearm at the employees and demanded all get on the ground and not look at him. Moore and the woman took the victims’ wallets and cell phones as well as fireworks sales proceeds from the cash register. At the time of Moore’s arrest, he possessed a backpack containing a loaded .45 caliber semi-automatic pistol with a drum magazine.
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated this case. Assistant U.S. Attorney Tom Mehan is handling the case.
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Judge sentences St. Louis man for being a felon in possession of a firearm and ammunitionRead the Press Release
ST. LOUIS, MO – United States District Judge Rodney W. Sippel sentenced Daniel McSkimming, today, to 110 months in prison. McSkimming, a 23-year-old resident of St. Louis, Missouri, pleaded guilty in July to being a felon in possession of a firearm and ammunition, as well as possession of a firearm in furtherance of drug distribution.
On August 13, 2019, officers from the St. Louis County Police Department responded to a call for shots fired inside an apartment complex in the 2600 block of Park Hill Circle. A sport utility vehicle (SUV) seen fleeing from the area was registered to McSkimming’s parents.
Officers spotted ballistic damage on an apartment and seized three 9mm casings and one bullet from the scene. Officers learned one of the people who lived in the apartment owed McSkimming money for heroin and McSkimming previously threatened the individual over Facebook regarding the money owed.
Later that evening, the St. Louis Metropolitan Police Department received calls for shots fired in the 3900 block of Weber Road. McSkimming was a passenger in the same SUV and fired multiple shots at a residence. Officer found ballistic damage and seized four 9mm casings and one bullet from the scene.
The National Integrated Ballistic Information Network (“NIBIN”), a national database that automates ballistic imaging evaluations and provides actionable investigative leads to law enforcement agencies provided a lead linking the cartridge casings from the two shootings. Additionally, defendant’s telephone was identified as being in the area of each shooting at the time of the incident.
On September 3, 2019, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested McSkimming at a hotel and seized a .38 caliber Smith & Wesson revolver and four capsules containing a mixture of fentanyl and heroin.
The St. Louis Metropolitan Police Department, St. Louis County Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Special Assistant United States Attorney (SAUSA) Jen Szczucinski handled the case as part of the Safer Streets Initiative. The initiative was launched by Attorney General Schmitt and U.S. Attorney Jeff Jensen in January of 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis.
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Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Henry E. Autrey sentenced Charles Kates, Jr., to 75 months in prison following Kates Jr.’s plea of guilty to being a felon in possession of a firearm.
On April 28, 2019, Kates, Jr. and two others went into a St. Louis residence intending to rob a man of drugs and money. The intended victim, who is also a co-defendant, was in his bedroom counting money from drug sales when he heard Kates, Jr. and the others outside. The intended victim left his residence and got into an altercation with Kates, Jr. and his associates.
Both sides fired shots. The intended robbery victim received 14 gunshot wounds and dragged himself through his yard to a car. Kates, Jr. was also shot in the ankle during the gunfight. Kates, Jr. dropped his firearm on the sidewalk as he and his associates left the scene. The firearm was found unloaded, Kates, Jr. having shot all the ammunition it contained.
Police searched the intended robbery victim’s house and found marijuana, crack, cocaine, methamphetamine, heroin, a fentanyl precursor and $5,682 in cash. Kates, Jr. was identified as being a part of robbery plot by his blood being found on the firearm he dropped on the sidewalk.On July 23, 2019, police recovered a carjacked vehicle parked outside Kates, Jr.’s residence, which contained a loaded semiautomatic AR-style pistol. In the overnight hours of July 21-22, 2019, security cameras captured Kates, Jr. firing that weapon in the air in his residential neighborhood. On August 13, 2019, police executed a search warrant and seized another AR-style pistol under a couch where Kates, Jr. was sleeping.
The St. Louis Metropolitan Police Department investigated the case. Assistant United States Attorney Jason Dunkel is handling the case.
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Judge sentences California woman for committing aggravated identify theftRead the Press Release
ST. LOUIS, MO – Today, United States District Judge Rodney W. Sippel sentenced Nykeythia Hudson, a 28-year-old resident of Concord, California, to 24 months in prison after she pleaded guilty to one count of aggravated identity theft.
Hudson and her associate, both residents of California, traveled to Missouri to use counterfeit credit cards to fraudulently purchase gift cards and merchandise. Police stopped their rental car in St. Charles County on January 28, 2017. When Hudson opened the glove compartment to provide the vehicle’s registration information, a plastic bag containing with 81 cards fell out.
To appear authentic, fourteen of the cards were embossed with an altered card verification value, “CVV,” numbers. The account numbers on the front of the cards had been issued by financial institutions other than those appearing on the cards, and to individuals other than the defendants.
January 28, 2017 surveillance footage from a St. Charles County Wal-Mart captured Hudson using a counterfeit Walmart Visa Debit card to purchase a Wal-Mart gift card. The debit card was embossed with the USAA account number issued to A.V. and the name of a different person. Neither A.V. nor USAA authorized the possession or use of her account number.
Of the remaining cards that fell from the glove compartment, 20 were fraudulently purchased Walmart Visa gift cards and 47 were fraudulently purchased TJ Maxx-Home Goods gift cards. In the vehicle, police also found receipts showing the purchase of additional gift cards from Wal-Mart and TJ Maxx using other the stolen USAA account numbers.
The Secret Service investigated the case. Assistant United States Attorney Tracy Berry is handling the case.
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Insurance Agent Is Sentenced to More Than Five Years in Prison for $400,000 Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Glenda Taylor-Sanders, 52, of Matthews, N.C. was sentenced to 66 months in prison in federal court today by U.S. District Judge Robert J. Conrad Jr., for orchestrating a $400,000 fraudulent loan scheme involving insurance premiums, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to plea documents and today’s court hearing, Taylor-Sanders was a licensed Insurance Producer and Insurance Broker, and the owner of G. Taylor, Inc., an insurance agency in Charlotte that procured insurance policies for customers, including transportation companies. Court records show that in February 2018, Taylor-Sanders voluntarily surrendered all of her licenses issued to her by the North Carolina Department of Insurance (NCDOI) and acknowledged that she could no longer perform any activities for which a license from NCDOI is required.
According to court records, from February 2017 through May 2019, Taylor-Sanders defrauded an Illinois-based financial services company that provides companies with loans to pay for insurance premiums. Taylor-Sanders executed the scheme by submitting fraudulent applications and related forged documents to the financial services company, purporting to be on behalf of her transportation company clients, for the purpose of obtaining loans to cover their insurance premiums. According to court records, once the financial services company received the forged documents and approved the loans, the financial services company wired the loan proceeds to a bank account controlled by Taylor-Sanders. Court documents show that, over the course of the scheme, the financial services company wired to Taylor-Sanders more than $400,000 in fraudulently obtained loan proceeds, which the defendant used to pay for personal expenses and to further the fraud scheme.
According to court records, after some of the transportation companies began to receive communications from the financial services company about missed payment deadlines, Taylor-Sanders went to great lengths to conceal the fraud, and continued to make false representations, including instructing the financial services company to only contact her, and assuring the impacted transportation companies that the issue had been resolved.
According to court records, Taylor-Sanders used the fraudulently obtained funds to make mortgage payments on her personal residence, loan payments for a Maserati and a Mercedes Benz, to purchase Carolina Panthers tickets, and to pay for groceries and meals at restaurants.
In making today’s announcement, U.S. Attorney Murray commended the FBI and USPIS for handling the investigation and thanked NCDOI for their invaluable assistance.
Assistant U.S. Attorneys Caryn Finley and William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Hudson Woman Pleads Guilty to Tampering with Consumer Products and Unlawfully Obtaining Controlled SubstancesRead the Press Release
CONCORD - Kristina Coleman, 40, of Hudson, pleaded guilty in federal court to tampering with consumer products and unlawfully obtaining controlled substances, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Coleman worked as a pharmacy technician for a retail pharmacy chain in Nashua. In January 2019, she agreed to deliver two prescriptions to an elderly patient, which was not part of her ordinary job responsibilities. After the delivery, the patient checked her bottles and discovered several pills were missing from her oxycodone prescription. Further, some of the pills in the bottle were larger and had a different imprint than the others, and were later determined to be baclofen, a non-scheduled drug indicated as a muscle relaxant and anti-spasmodic agent. Coleman admitted to law enforcement officers that she replaced some of the oxycodone in the prescription bottle with the baclofen and gave the stolen oxycodone to a friend to sell, for which she received $80.
Additional investigation revealed that Coleman had been stealing Suboxone from the pharmacy for her personal use. Coleman admitted that she had stolen a strip a day for approximately one year.
Coleman is scheduled to be sentenced on January 28, 2021.
“Drug diversion and tampering with consumer products are serious crimes that can endanger the lives of patients,” said U.S. Attorney Murray. “When criminals steal controlled substances and replace them with other drugs, patients are not only deprived of needed medicine but also may take a drug that they should not be taking. In some circumstances, this can create serious medical risks. In order to protect the health and safety of our citizens, we will not hesitate to pursue federal charges against health care workers who steal drugs from innocent victims.”
This matter was investigated by the Food and Drug Administration Office of Criminal Investigations, the Drug Enforcement Administration Diversion Control Division, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Honduran Man Pleads Guilty After Third Illegal Entry into USRead the Press Release
ALEXANDRIA, Va. – A Honduran with multiple previous convictions and removals pleaded guilty today to illegally reentering the United States.
According to court documents, Erasmo Alberto-Echeverria, 43, illegally reentered the United States after having been removed on two different occasions. In 2009, Alberto-Echeverria was convicted of misdemeanor hit and run and driving while under the influence of alcohol in Fairfax County. He was removed from the United States by federal immigration authorities in 2010. Thereafter, he illegally reentered the country and was arrested in 2015 on an outstanding warrant for his misdemeanor possession of a controlled substance before he was removed. After being convicted of that narcotics offense in Fairfax County, the defendant was removed from the United States for the second time. He illegally reentered the country for a third time and was most recently discovered by immigration authorities after his arrest in Fairfax County in 2020 for the misdemeanors unlawful entry and destruction of property.
Alberto-Echeverria faces a maximum penalty of two years in prison. He is scheduled to be sentenced on November 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew Munroe, Acting Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton.
Special Assistant U.S. Attorney William I. Friedman and Assistant U.S. Attorney Raizza K. Ty are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-221.
Henderson & Sons Funeral Home agrees to resolve alleged violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Henderson & Sons Funeral Home (Henderson), a funeral service operator in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“Funeral homes have an obligation under the ADA to ensure that people who are deaf and hard of hearing receive the same benefits of their service as those without disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “Anyone who has lost a loved one understands the value of the services provided by funeral homes, and a failure to provide effective communication to family members who are deaf or hard of hearing robs them of that experience.”
The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Henderson failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as her primary means of communication, alleged she requested a sign language interpreter for her family member's funeral, but no interpreter or other auxiliary aid or service was provided. As a result, the complainant attended her loved one’s funeral without the ability to understand what was being said during the service. And while several friends and family members spoke affectionately about their memories of the deceased, the complainant was forced to grieve without the benefit of sharing in those memories.
Under the settlement agreement, Henderson agreed to ensure effective communication to its customers who are deaf or hard of hearing, including providing qualified interpreters at no cost. Among other things, Henderson has agreed to develop an effective communication policy, provide training to all of its personnel on effective communication and relay calls, and provide a report to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. A copy of the settlement agreement can be found
here.
The ADA prohibits discrimination against individuals with disabilities by funeral homes. Under the ADA, funeral homes are required to provide effective communication to individuals who are deaf or hard of hearing. Depending on the needs of the customer and the sensitivity of the information needed to be conveyed, a qualified sign language interpreter may be required to ensure effective communication with the person who is deaf or hard of hearing.
Assistant U.S. Attorney Tiffany Johnson represented the United States in this matter.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Guild Mortgage Company to Pay Almost $25 Million to Resolve Allegations It Knowingly Caused False Claims to Federal Housing AdministrationRead the Press Release
WASHINGTON – Guild Mortgage Company has agreed to pay the United States $24.9 million to resolve allegations that it violated the False Claims Act and the common law by knowingly breaching material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), the Department of Justice announced today. Guild Mortgage Company is headquartered in San Diego, California, with branches across the United States.
“Ensuring the integrity of federal lending programs is important to keeping those programs financially sound,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Together, with our partners at HUD, we have worked hard to hold accountable FHA lenders that knowingly and materially violate program requirements that help Americans achieve the dream of home ownership.”
“The United States is committed to providing Americans opportunities to own their own homes,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “This settlement reflects the diligent work of officials from the Department of Justice and HUD to ensure that the programs that provide those opportunities are operated with integrity and in accordance with requirements established by law.”
“As this settlement demonstrates, we are committed to holding mortgage lenders accountable when they choose to abuse the integrity of vital government programs that are designed to assist homeownership,” said U.S. Attorney Robert Brewer for the Southern District of California. “We also commend the whistleblower for coming forward, exposing these wrongs, and working with the government investigative team.”
“The Federal Housing Administration insurance program is a critical tool that helps hardworking Americans achieve their dream of homeownership. Any abuse of that program is unacceptable and the bad actors will be held accountable,” said Rae Oliver Davis, U.S. Department of Housing and Urban Development, Inspector General. “This case highlights the effectiveness and the importance of whistleblower programs.”
Participants in the FHA mortgage insurance program, like Guild Mortgage Company, can originate and underwrite mortgages without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA-insured loan defaults, the holder of the loan can then recover from the United States for certain losses. Lenders must follow FHA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured by the government.
The settlement announced today resolves allegations that Guild Mortgage Company knowingly approved ineligible loans that later defaulted and resulted in claims to FHA for mortgage insurance, failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, and failed to self-report materially deficient loans that it identified.
The agreement resolves allegations brought by the former head of quality control at Guild Mortgage Company, Kevin Dougherty, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such a lawsuit, as it did in part here. Dougherty will receive $4,980,000 as his share of the government’s recovery.
The investigation, litigation, and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Offices for the District of Columbia and the Southern District of California, HUD, and HUD-OIG.
The qui tam case is captioned United States ex rel. Dougherty v. Guild Mortgage Company, Civ. A. No. 16-2909 (S.D. Cal.).
The claims asserted against the defendant are allegations only, and there has been no determination of liability.
Fostoria man with prior drug trafficking conviction indicted for intent to distribute fentanyl, heroin and illegal firearm possessionRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Toledo has returned a five-count indictment charging Jesus Alejandro Degollado, 29, of Fostoria with possession with intent to distribute fentanyl, heroin, possession of a firearm in furtherance of a drug trafficking crime and as a felon in possession of a firearm.
According to court documents, On August 13, 2020, Toledo police observed the defendant driving a vehicle with multiple felony arrest warrants issued in Lucas County. Police stopped the vehicle and identified the driver as Degollado. The defendant was then arrested due to the outstanding warrants. The indictment alleges that during a search of the vehicle, officers located approximately 96 grams of fentanyl, 128 grams of heroin, a loaded semi-automatic handgun with 14 rounds of ammunition and drug trafficking supplies.
Degollado is prohibited from possessing a firearm after having been previously convicted of trafficking heroin on January 15, 2015, in the Seneca County Common Pleas Court. Due to the defendant’s prior felony drug trafficking conviction, an enhanced penalty has been charged in the indictment.
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 the indictment was conducted by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Deyana Unis and Alissa M. Sterling.
Fort Wayne Man Sentenced to 188 Months in PrisonRead the Press Release
FORT WAYNE-Maurice Sewell, age 39, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to being a felon in possession of a firearm and possessing with intent to distribute a controlled substance, announced U.S. Attorney Kirsch.
Sewell was sentenced to 188 months in prison followed by 6 years of supervised release.
According to documents in this case, in November 2016, Sewell possessed cocaine with the intent to distribute it. Sewell also possessed three firearms after having prior felony convictions in the Allen County Superior Court. Sewell had been previously convicted of dealing cocaine or a narcotic drug in both 2001 and 2012. He also had a prior felony conviction for a 2007 residential entry and strangulation.
“As the Court indicated today, Sewell’s long criminal history and recent conduct of illegally possessing firearms and illegal drugs led to the lengthy jail sentence the Court imposed today,” said United States Attorney Thomas L. Kirsch II. “My Office has always aggressively prosecuted felons who possess firearms and will continue to work with federal, state and local law enforcement partners in these type of cases.”
“I commend the United States Attorney’s Office and Fort Wayne Police Department for their partnership in investigating and prosecuting this individual,” commented ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Holding those who illegally possess firearms accountable is important to the safety of the whole community.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Stacey R. Speith.
Former employee of medical packaging company sentenced to federal prison for disrupting PPE shipmentsRead the Press Release
ATLANTA - Christopher Dobbins has been sentenced to federal prison for hacking his former employer and sabotaging their electronic shipping records, causing more than $200,000 in damage and delaying the shipment of personal protective equipment (“PPE”) during the COVID-19 pandemic.
“As businesses worked to get PPE into the hands of those most in need of it, Dobbins chose to hack his former employer and maliciously interrupt that process,” said U.S. Attorney Byung J. “BJay” Pak. “His actions caused delays in the delivery of desperately needed equipment in the midst of a worldwide pandemic.”
“During the height of a world-wide pandemic this defendant disrupted the distribution of critical medical supplies to health care workers on the front lines of the battle,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This swift and efficient result sends a message that anyone who puts the lives of American citizens at risk will be pursued and punished for their egregious behavior.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early March 2020, Dobbins was terminated from his employment at a medical device packaging company. While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. When his employment was terminated, he also lost his access to the company’s computer systems.
On March 26, Dobbins received his final paycheck from the company. Three days later, on March 29, 2020, he used a fake user account that he had previously created while still employed at the company to log into the company’s computer systems. He then conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of PPEs.
While logged in through the fake user account, Dobbins created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Christopher Dobbins, 41, of Duluth, Georgia, has been sentenced to one year and one day in prison and ordered to pay restitution in the amount of $221,200. Dobbins was convicted on these charges on July 10, 2020, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal prosecuted the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia (PAC). Georgia’s three U.S. Attorneys, the Attorney General of Georgia, the Executive Counsel for the Governor’s Office and the PAC Executive Director serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Hardeman County Correctional Officer Sentenced to 5 Years for Distributing Narcotics in the Whiteville Correctional FacilityRead the Press Release
Jackson, TN – Shontavis Rivers, 21, a resident of Bolivar, Tennessee has been sentenced to 60 months in federal prison for his role in a conspiracy to distribute in excess of 50 grams of actual methamphetamine within the Whiteville Correctional Facility. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on September 25, 2019, a criminal complaint was filed against Rivers for attempting to smuggle narcotics into the Whiteville Correctional Facility. Rivers, a correctional officer, began removing his personal items to pass through the security checkpoint when a K-9 dog barked. Rivers quickly turned and left the building. Correctional employees followed Rivers as he attempted to leave. When approached by employees he stated that he had forgotten his identification. Rivers was informed that he would have to pass through security screening before he could retrieve his identification.
Whiteville Police Department officers were called to the scene and questioned Rivers who admitted that he had several packages concealed on his person. Each package contained approximately 77 grams of actual methamphetamine at 98% purity and 6.82 grams of cocaine. Rivers admitted to bringing packages of narcotics into the facility on two prior occasions.
On October 16, 2020, Chief United States District Court Judge S. Thomas Anderson sentenced Rivers to 60 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Official misconduct by public officers in positions of trust and authority undermines the foundational integrity of our government institutions and the security of correctional facilities. We will root out, expose, and hold accountable those officials who violate their oath for personal gain by introducing illegal narcotics into jails and prisons."
The Tennessee Department of Correction (TDOC), Whiteville Police Department, and the Hardeman County Sheriff’s Department investigated this case.
Assistant United States Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Former Department Head at Walter Reed National Military Medical Center Pleads Guilty to Federal Charges in Maryland for Accepting GratuitiesRead the Press Release
Greenbelt, Maryland – David Laufer, age 63, of Pittsburgh, Pennsylvania, formerly of Bethesda, Maryland, pleaded guilty today to acceptance of gratuities by a public official.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from 2009 until May 2019, Laufer worked as the Chief of the Prosthetics and Orthotics Department at Walter Reed National Military Medical Center, the largest joint military medical center in the United States. Walter Reed is located in Bethesda and provides medical services, including orthotic and prosthetic services to U.S. service members and their dependents, including wounded soldiers. Person B lived in Montgomery County and owned, operated, and controlled Company B, located in Germantown, Maryland. Company B provided prosthetics and orthotics materials to Walter Reed in return for payments from the government. According to the plea agreement, Person B regularly interacted with Laufer about Company B’s business with Walter Reed.
As detailed in the plea agreement, from 2010 until May 2019, the Walter Reed Prosthetics and Orthotics department used Blanket Purchase Agreements (BPAs) to order and purchase prosthetics and orthotics materials. This allowed the department to obligate funds to purchase materials so that employees could order materials without charging a credit card each time or engaging in a formal contract for each purchase of materials. Company B was awarded multiple BPAs by Walter Reed, which the Prosthetics and Orthotics department used to order and purchase prosthetics and orthotics materials from Company B. Company B purchased prosthetics and orthotics materials from other manufacturers and distributors, then resold the materials to the Prosthetics and Orthotics department at Walter Reed at a higher price.
Laufer admitted that he restricted the availability of BPAs to some of the manufacturers and distributors from whom Company B purchased products, thereby inhibiting those companies from doing business directly with Walter Reed, and actively encouraged and directed those companies to sell to Walter Reed through Company B, knowing that it would result in a higher price to the government. At the same time that he was funneling business through Company B, Laufer was personally involved in ordering materials and causing materials to be ordered from Company B, as well as taking official acts that impacted Company B. From 2011 to May 2019, Laufer and the Prosthetics and Orthotics department at Walter Reed caused Company B to be paid more than $25 million for prosthetics and orthotics materials. Laufer further admitted that in exchange for his official acts benefitting Company B, he received financial benefits from Company B, including money, travel, and sporting event tickets.
According to the plea agreement, Laufer’s job required him to complete annual Confidential Financial Disclosure forms which required him to report: all sources of outside income greater than $200; any business outside the U.S. Government in which Laufer or his spouse was an employee or consultant, whether or not compensated; any agreements or arrangements concerning past, current, and future employment; and travel-related reimbursement or other gifts totaling more than $350 from any one source during the reporting period. Laufer’s financial disclosure filings from 2014 to 2019 failed to disclose the financial benefits received from Company B.
Furthermore, when interviewed by federal agents as part of a corruption investigation at Walter Reed, Laufer denied receiving any financial benefits from Company B. Laufer also was interviewed by federal agents several times between 2017 and 2019 concerning unexplained cash deposits. On each occasion, Laufer lied to the agents, initially stating that he earned extra money from the purchase and sale of bicycles and small collectibles at swap meets, then falsely stating that he earned cash by working for Person C and Company C, and finally stating that the unexplained cash came from moonshine and liquor sales.
Laufer faces a maximum sentence of two years in federal prison for accepting a bribe. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 2, 2021, at 10:00 a.m.
United States Attorney Robert K. Hur commended the DCIS, HHS OIG, and the FBI for their work in the investigation and thanked the Veterans Administration Office of Inspector General, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, the Office of Personnel Management Office of Inspector General, DOD Cyber Crimes Center Defense Cyber Forensics Laboratory, and the Defense Contract Audit Agency for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Dana Brusca, who are prosecuting the case.
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Five Alleged MS-13 Members Charged Federally for Their Participation in a Violent Racketeering Conspiracy, Including Eight Murders and Four Attempted MurdersRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an eleventh superseding indictment yesterday, charging five men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13. The eleventh superseding indictment adds a new defendant charged with a racketeering conspiracy related to his membership in MS-13, including a double homicide and drug trafficking.
Charged in the 10-count superseding indictment are Junior Noe Alvarado-Requeno, a/k/a “Insolente” and “Trankilo,” age 23, of Landover, Maryland; Luis Arnoldo Flores-Reyes, a/k/a “Maloso” and “Lobo,” age 39, of Arlington, Virginia; Miguel Angel Corea Diaz, a/k/a “Reaper,” age 38, of Long Branch, New Jersey; Jairo Arnaldo Jacome, a/k/a “Abuelo,” age 38, of Langley Park, Maryland; and Brayan Alexander Contreras-Avalos, a/k/a “Anonimo,” “Malia,” and “Humilde,” age 20, of Silver Spring, Maryland.
The 11th superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Special Agent in Charge James A. Dawson of the FBI Washington Field Office Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Chief Marcus Jones of the Montgomery County Police Department; Interim Chief Hector Velez of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations, and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
The 11th superseding indictment alleges that from prior to 2015 through at least January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, murder, conspiracy to commit murder, and robbery. Jacome was a member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants were members and associates of the Sailors Clique of MS-13.
All the defendants except Contreras-Avalos were charged in previous indictments with conspiracy to participate in a racketeering enterprise for their involvement in a variety of violent acts committed by the Sailors Clique of MS-13, including multiple murders.
The 11th superseding indictment adds Contreras-Avalos as a new defendant and references his alleged involvement in the 2016 murders of two victims who were believed to be members of the rival 18th Street gang.
Specifically, the 11th superseding indictment charges that in June 2016, Alvarado-Requeno and other high-ranking MS-13 members planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno directed Contreras-Avalos and lower-ranking members of MS-13 to murder two individuals who were believed to be members of the rival 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno, Contreras-Avalos, and other MS-13 members and associates stabbed the two victims to death.
Alvarado-Requeno and Jacome also are charged in the 2016 murder of a victim in Germantown, Maryland. On Dec. 4, 2016, Alvarado-Requeno, Jacome, and other members and associates of MS-13 traveled to Germantown with a machete and other weapons with the purpose of murdering an individual as punishment for his infractions against the gang. They allegedly stabbed the victim to death, then fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 returned to Germantown to bury the victim’s body.
Alvarado-Requeno, Flores-Reyes, and Corea-Diaz also are charged in the 2017 murder of a victim in Lynchburg, Virginia. On March 27, 2017, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had traveled to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
If convicted, the defendants all face a maximum sentence of life in federal prison for the racketeering conspiracy. Alvarado-Requeno, Jacome, Corea Diaz, Flores-Reyes also face a maximum of life in federal prison for each count of murder in aid of racketeering and a maximum of 10 years in prison for each count of conspiracy to commit murder in aid of racketeering. Alvarado-Requeno, Corea Diaz, Flores-Reyes, and Contreras-Avalos face a maximum of 20 years in prison for conspiracy to distribute and possess with intent to distribute controlled substances, and Corea Diaz also faces 40 years in prison for possession with intent to distribute controlled substances. Finally, Flores-Reyes and Jacome face a maximum of 20 years in prison for an extortion conspiracy. All defendants are in custody.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Robert K. Hur and Assistant Attorney General Brian C. Rabbitt thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Mr. Hur and Mr. Rabbitt commended Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick and Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Five Alleged MS-13 Members Charged Federally for Their Participation in a Violent Racketeering Conspiracy Including Eight Murders and Four Attempted MurdersRead the Press Release
A federal grand jury returned an eleventh superseding indictment Monday, charging five men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13. The eleventh superseding indictment adds a new defendant charged with a racketeering conspiracy related to his membership in MS-13, including a double homicide and drug trafficking.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge James A. Dawson of the FBI Washington Field Office Criminal Division; Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office; Special Agent in Charge John Eisert of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Chief Marcus Jones of the Montgomery County Police Department; Interim Chief Hector Velez of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy made the announcement.
Charged in the 10-count superseding indictment are Junior Noe Alvarado-Requeno, aka “Insolente,” aka “Trankilo,” 23, of Landover, Maryland; Luis Arnoldo Flores-Reyes, aka “Maloso,” aka “Lobo,” 39, of Arlington, Virginia; Miguel Angel Corea Diaz, aka “Reaper,” 40, of Long Branch, New Jersey; Jairo Arnaldo Jacome, aka “Abuelo,” 38, of Langley Park, Maryland; and Brayan Alexander Contreras-Avalos, aka “Anonimo,” aka “Malia,” and aka “Humilde,” 20, of Silver Spring, Maryland.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Maryland, including in Montgomery County and Prince George’s County, Maryland.
At all times during the conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations, and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
The eleventh superseding indictment alleges that from prior to 2015 through at least January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, murder, conspiracy to commit murder, and robbery. Jacome is an alleged member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants are alleged members and associates of the Sailors Clique of MS-13.
All the defendants except Contreras-Avalos were charged in previous indictments with conspiracy to participate in a racketeering enterprise related to their involvement in a variety of violent acts committed by the Sailors Clique of MS-13, including multiple murders.
The eleventh superseding indictment adds Contreras-Avalos as an additional defendant and references his alleged involvement in the 2016 murders of two victims who were believed to be members of the rival 18th Street gang.
Specifically, the eleventh superseding indictment charges that in June 2016, Alvarado-Requeno and other high-ranking MS-13 members planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno allegedly directed Contreras-Avalos and lower-ranking members of MS-13 to murder two individuals who were believed to be members of the rival 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno, Contreras-Avalos and other MS-13 members and associates allegedly stabbed the two victims to death.
Alvarado-Requeno and Jacome also are charged in the 2016 murder of a victim in Germantown, Maryland. On Dec. 4, 2016, Alvarado-Requeno, Jacome, and other members and associates of MS-13 allegedly traveled to Germantown with a machete and other weapons for the purpose of murdering an individual as punishment for his infractions against the gang. They allegedly stabbed the victim to death, then fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 allegedly returned to Germantown to bury the victim’s body.
Alvarado-Requeno, Flores-Reyes, and Corea-Diaz also are charged in the 2017 murder of a victim in Lynchburg, Virginia. On March 27, 2017, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz allegedly arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes allegedly provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had traveled to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
All defendants are in custody.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Justice Department thanked the FBI’s Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick are prosecuting this case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Final defendant sentenced in coastal Georgia investigation that shut down gang-related methamphetamine traffickersRead the Press Release
SAVANNAH, GA: An admitted gang member who was a major supplier for a methamphetamine-trafficking operation in the coastal Georgia area has been sentenced to federal prison.
Daniel Jeffers, a/k/a “Dirty,” 31, of Savannah, was sentenced by U.S. District Court Judge R. Stan Baker to 110 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute More Than 50 Grams of Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Jeffers must serve three years of supervised release. There is no parole in the federal system.
“With the final sentence in an operation that saw every single defendant plead guilty, our courageous law enforcement partners conducted a solid investigation that shut down an organization of violent, gang-related and cartel-supplied meth traffickers,” said U.S. Attorney Christine. “We’re proud to punctuate these prosecutions with prison sentences that remove every one of these poison-pushers from our community.”
The investigation, dubbed Operation Who’s Laughing Now, is an offshoot of Operation Vanilla Gorilla, an Organized Crime Drug Trafficking Task Forces investigation that targeted major trafficking of methamphetamine and other drugs into the coastal Georgia area by criminals associated with the Ghost Face Gangsters, a violent, prison-based white supremacist gang.
As described in court documents and testimony, Jeffers, an admitted member of the Ghost Face Gangsters, was a major supplier of methamphetamine to the other 17 co-defendants in Operation Who’s Laughing Now, frequently delivering kilogram amounts of meth supplied by Mexican cartels by way of Atlanta.
A 20-count indictment in May 2019 charged the defendants with a wide-ranging conspiracy to possess and distribute methamphetamine and marijuana and with gun possession violations. The defendants were arrested during the operation conducted by the Liberty County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA), along with other local law enforcement agencies in a 20-county area of eastern Georgia. In addition to quantities of methamphetamine and marijuana, investigators also seized 14 firearms – including two unregistered sawed-off shotguns – and a large amount of ammunition and magazines.
All 18 defendants pled guilty to subsequent federal charges and have been sentenced to federal prison terms ranging up to 135 months.
“South Georgia residents can sleep better tonight knowing that the final defendant of this white supremacist street gang has been sentenced,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division. “This case demonstrates how DEA and its law enforcement partners work together to destroy drug distribution networks.”
“This case is the product of a concerted collaborative effort on the part of ATF and its local and federal partners to target, investigate, and eliminate the perpetrators of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “This sentence, along with the previous sentences, will ensure the incarceration of dangerous criminals and contribute to the restoration of order and peace in the Southern District of Georgia.”
Operation Who’s Laughing Now was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and prosecuted for the United States by Assistant U.S. Attorney and OCDETF Coordinator Marcela Mateo, and Assistant U.S. Attorney Frank Pennington.
Fifteen Individuals Charged with Fentanyl and Cocaine PossessionRead the Press Release
BOSTON – Fifteen people have been charged in federal court in Boston in connection with fentanyl and cocaine possession and distribution charges. The investigation, which began in March 2017 and intercepted communications on at least 11 cellphones, revealed that the defendants actively distributed fentanyl and cocaine and that their drug trafficking activities extended throughout southeastern Massachusetts, Rhode Island and Connecticut.
The following individuals were charged by criminal complaint with conspiracy to distribute and/or possess with intent to distribute 400 grams of more of fentanyl and 500 grams or more of cocaine:
- Donald V. Alfonso a/k/a Moolie, 39, of Fall River, Mass.;
- Mark W. Alfonso a/k/a Chamaquito, 31, of Fall River, Mass.;
- Bryant N. Baez a/k/a Mandarria, 42, of Fall River, Mass.;
- Josdani M. Calderon, 32, of Providence, R.I.;
- Gabriela O. Dasilva a/k/a Karrie, 45, of New Bedford, Mass.;
- Kyle M. Dupras a/k/a Zee, 29, of Fall River, Mass.;
- Alvin Javier a/k/a Sopha, 26, a Dominican national illegally residing in Lawrence, Mass.;
- Angel L. Landrau-Marrero a/k/a Chi-Chi, 31, of New Bedford, Mass.;
- Jeison M. Marinez-Matos, 28, a Dominican national illegally residing in Bridgeport, Conn.;
- Hanlet D. Mejia-Alvarez a/k/a Nephew, 32, a Dominican national illegally residing in Cranston, R.I.;
- Luis Adolfo Mejia-Diaz, a/k/a El Bello, 52, a Dominican national illegally residing in Providence, R.I.;
- Jose A. Ortega a/k/a “Amorol,” 43, of Cranston, R.I.;
- Jesus Rivera, age unknown, a Dominican national illegally residing in Providence, R.I.;
- Wilkie O. Sanz, 30, of Dorchester, Mass.; and
- Ramon Encarnacion Frias, 34, a Dominican national illegally residing in Providence, R.I.
According to the criminal complaint, the first phase of the investigation revealed that Rivera and Javier were involved in the distribution of fentanyl and cocaine. El Bello, Baez and others were cocaine sources of supply for Rivera and, at times, Rivera was a cocaine source of supply for Baez. Javier worked for Rivera by regularly delivering fentanyl and cocaine to narcotics customers.
The second phase of the investigation allegedly revealed that Baez, Rivera, Landrau-Marrero, Donald Alfonso, Mark Alfonso, Dasilva and Dupras participated in the distribution of cocaine and fentanyl. Specifically, Baez was an active fentanyl and cocaine distributor; Dupras, Dasilva, Landrau-Marrer and Rivera were narcotics customers of Baez, who each further distributed narcotics; Donald Alfonso was a fentanyl and cocaine source of supply for Baez; Donald Alfonso also worked with his nephew Mark Alfonso to distribute narcotics; and Rivera and Baez distributed narcotics to one another.
Finally, the third phase of the investigation revealed that El Bello, Calderon, Ortega, Marinez-Matos, Mejia-Alvarez and Sanz allegedly distributed fentanyl and cocaine. El Bello was allegedly a large-scale fentanyl and cocaine distributor; Ortega, Mejia-Alvarez and Calderon assisted El Bello in the distribution of narcotics; Sanz was a fentanyl customer and redistributor; and Marinez-Matos was a source of supply for the organization. Cellphone interceptions revealed that El Bello distributed multi-kilogram quantities of fentanyl and cocaine, and in March 21, 2020, investigators seized nearly one kilogram of fentanyl from Marinez-Matos.
Today, agents seized three handguns; loaded magazines and ammunition, including a high capacity magazine; two vehicles; approximately four kilos of fentanyl, heroin and/or cocaine; approximately five pounds of marijuana; 38 bottles of liquid THC; approximately $140,000 in cash; and kilo presses, scales and other drug packaging materials.
The charge of conspiracy to possess with intent to distribute and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to possess with intent to distribute and possession with intent to distribute 500 grams or more of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Fall River Police Chief Jeffrey Cardoza; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Westport Police Chief Keith Pelletier; and Providence Police Chief Hugh Clements Jr. made the announcement. Assistant U.S. Attorneys Ann Taylor and Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Buffalo Man of Selling Dangerous Fentanyl Analogue Which Resulted in the Death of an IndividualRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that following a two week trial, a federal jury has convicted Jawayne Watkins, 32, aka Weezy, of Buffalo, NY, of conspiracy to possess with intent to distribute heroin and 4-fluoroisobutyryl fentanyl, possessing with intent to distribute, and distributing heroin and 4-fluoroisobutyryl fentanyl, possessing with intent to distribute, and distributing heroin and 4-fluoroisobutyryl fentanyl, causing serious bodily injury to, and the death an individual. Watkins faces a mandatory penalty of life in prison.
“While this Office has charged numerous individuals with distributing deadly opiates that resulted in the death of another individual, Watkins is only the second defendant so-charged to choose to exercise his constitutional right to a jury trial,” stated U.S. Attorney Kennedy. “Both Watkins and his predecessor, Dontrell Wise, were convicted at trial, and both, having previously been convicted of drug offenses, face mandatory life sentences as a result. The message should be clear. If you peddle this poison and someone dies from the drugs you provide, then your cost of doing business will be to have to spend at least 20 years—if not the rest of your life—in jail. That you may not have intended to kill or even hurt anyone won’t entitle you to any discounts.”
Assistant U.S. Attorneys Michael J. Adler and Meghan E. Leydecker, who handled the prosecution of the case, stated that Watkins sold heroin and 4 fluoroisobutyryl fentanyl. 4 fluoroisobutyryl fentanyl is a rare and extremely dangerous fentanyl analogue.
On at least two occasions, in July 2017, and on November 9, 2017, Homeland Security Investigations made controlled purchases from the defendant. The substances purchased from Watkins later tested positive for heroin and 4 fluoroisobutyryl fentanyl. On November 10, 2017, an individual identified as A.C. died after taking a substance received from Watkins. Toxicology reports following the victim’s death indicated she had heroin and 4 fluoroisobutyryl fentanyl in her system. During the investigation, law enforcement officers also made other seizures of the deadly substance from the defendant.
Watkins was on New York State parole and living in a halfway house at the time of his arrest in November 2017.
The verdict is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for January 29, 2021, at 1:30 p.m. before U.S. District Judge Richard J. Arcara who presided over the trial of the case.
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Federal Jury Convicts Armed Career Criminal for Illegal Possession of a FirearmRead the Press Release
Birmingham, Ala. – A federal jury today convicted a Birmingham man of being a felon in possession of a firearm, announced United States Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Toby Taylor.
The jury returned its guilty verdict against Terran Marteze Gilbert, 28, after two days of testimony before U.S. District Judge Liles C. Burke.
“Felons who possess a firearm pose a threat to the safety and security of our community,” U.S. Attorney Escalona said. “We are committed to working with our federal, state and local law enforcement partners to find these criminals and prosecute them to the fullest extent of the law. We especially want to thank the jurors for their time and service.”
Acting ATF Special Agent in Charge, Toby Taylor stated, “ATF is committed to enhancing a positive community environment combined with directed enforcement of the federal firearms laws as part of the Project Guardian initiative to reduce gun related crimes.”
Evidence at trial proved that on April 3, 2019, members of the United States Marshals Service-Gulf Coast Regional Task Force (GCRTF) went to Gilbert’s residence to execute an active felony warrant. Upon contact with Gilbert, GCRTF conducted a protective sweep of the residence and located a Colt .38 caliber revolver in plain view inside an open closet in the hallway area of the living room. Gilbert has prior felony convictions for Unlawful Possession of Marijuana, First Degree, Robbery, Third Degree, and Assault, First Degree.
Gilbert qualifies as an armed career criminal and faces a mandatory minimum sentence of 15 years in prison.
ATF investigated the case. Assistant U.S. Attorneys Michael Royster and Kristy Peoples prosecuted the case.
Ex-President of Ohio Healthcare Management Company Pleads Guilty in $59 Million Check Kiting Scheme Targeting S&T BankRead the Press Release
PITTSBURGH – The former president of an Ohio healthcare management company waived indictment and pleaded guilty today to bank fraud, United States Attorney Scott W. Brady announced today.
Harold Sosna, age 67, of Cincinnati, Ohio, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
"Sosna perpetrated a $59 million check kiting scheme that exploited banks throughout western Pennsylvania and Ohio," said U.S. Attorney Brady. "His greed and callousness caused significant financial harm to these community banks. Now he will be held accountable for these crimes. Together, with our law enforcement partners, we stand committed to protecting financial institutions from fraud."
"There is no question about it, this was a game for Mr. Sosna," said FBI Pittsburgh Special Agent in Charge Michael Christman. "He tried to game the system by floating money around to make it look like his accounts had millions of dollars in them. Instead, he committed large-scale fraud. One of the goals of the FBI is to safeguard the financial industry, which in turn protects the broader economy. We will investigate those who seek to defraud this system."
According to information provided to the Court, Sosna engaged in what is commonly known as "check kiting" scheme. The term "check kiting" refers to a form of check fraud which involves taking advantage of the float – the time between presentment of a check and the actual receipt of funds – to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks that would otherwise bounce to clear.
The court was advised that during the time of the check kite, Sosna was the president of Premier Healthcare Management (Premier), located in Blue Ash, Ohio. It owned and operated nine nursing care facilities in southern and central Ohio. Premiere provided in-facility, post-acute, and long-term care for individuals recovering from medical procedures, as well as assisted living services through various corporate entities. Each entity had a subsidiary relationship with Premier and operated individual bank accounts at various banks to include S&T Bank, headquartered in Indiana Pennsylvania, and First Financial Bank, headquartered in Cincinnati, Ohio.
According to information provided during the plea hearing, Sosna wrote checks between various S&T Bank and First Financial Bank accounts under his control and associated with Premier, in increasing dollar amounts. This was done to manipulate the numerical balance in the accounts and thereby create the false and fraudulent appearance that the defendant had sufficient legitimate available funds in various accounts, and to trick the banks into honoring checks drawn against accounts with insufficient funds. Between May 15, 2020, and May 18, 2020, by writing and negotiating checks, Sosna, sent more than $118,000,000.00 through S&T Bank and First Financial Bank, which were unfunded amounts and were the equivalent of obtaining money from the banks without actual properly secured loans. A total of 203 checks were negotiated in execution of his scheme. S&T Bank incurred a loss of $59,240,000.00.
Judge Horan scheduled sentencing for February 18, 2021 at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Sosna.
Eufaula Man Pleads Guilty to Firearm Possession, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody James Cooper, age 27, of Eufaula, Oklahoma entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both; and to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment alleged on or about August 18, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about August 18, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Haskell County Sheriff’s Office, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.
The Honorable John F. Heil III, U.S. District 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 Clay Compton represented the United States at the plea hearing.
Elementary School Educator Gets 60 Years for Child ExploitationRead the Press Release
GRAND RAPIDS, MICHIGAN - James Verne Russell, 50, a former Michigan teacher and principal, was sentenced to serve 720 months in the Federal Bureau of Prisons for sexual exploitation of two minors. U.S. District Judge Janet T. Neff also imposed lifetime-supervised release should it be necessary. Russell was also sentenced on October 8, 2020 by Muskegon County Circuit Court Judge Annette R. Smedley to 20 to 95 years in the related sexual assault case.
In sentencing Russell to serve 60 years in prison, Judge Neff stated the offense “is about as serious as it gets” because of the extended length of time and “circumstances in which you took advantage of children.” Judge Neff commented that in her thirty-two years as a judge “you think you’ve seen it all” and then “something like this happens.” “You come face-to-face with a human being whose behavior you just can’t understand.” “How you can take a little boy from an awful situation” and “take what little he has away from him.” “There are very few cases that will stick out to me after all these years, but yours will. I promise you.”
Russell was in education for twenty-two years. He was an elementary school teacher for sixteen years and an elementary school principal for six years in the Ravenna and North Muskegon School Districts. In June 2018, a teacher filed a complaint about Russell’s unusual interest in two students. Russell was suspended by the school district and later resigned. He then moved to Las Vegas and joined the Clark County School District as a fourth grade teacher. Russell came to the attention of law enforcement, in March 2019, when the FBI Las Vegas Child Exploitation Task Force received a CyberTip from the National Center for Missing and Exploited Children regarding a recent upload of dozens of images, some depicting child pornography. When confronted by investigators from the FBI Las Vegas and Henderson Police Department, Russell confessed to possessing the pictures. Norton Shores Police and FBI Grand Rapids located and interviewed the victim in Michigan. The victim, identified as Victim 1 in the charges, confirmed that he was the child depicted and that Russell had sexually molested him for years. A search of Russell’s cell phone and computers disclosed numerous other images of child pornography, many of which Russell had produced himself. Further investigation disclosed another boy, identified as Victim 2, who was victimized in 2017, and a third individual who had been sexually abused by Russell beginning in 1996.
The U.S. Attorney’s Office brought federal charges against Russell for the production, transportation, and possession of child pornography. The Muskegon County Prosecutor’s Office charged Russell for the sexual assaults of Victim 1. As part of a joint resolution, Russell pleaded guilty to a sexual assault charge in Muskegon County, and pleaded guilty to two counts of production of child pornography in federal court.
Russell started his career in education in 1996. That same year, he began grooming and sexually assaulting his first victim. Russell volunteered to work with children in many capacities, including as a long-term guardian, babysitter, elementary and middle school basketball coach, lifeguard, camp counselor, and youth ministries assistant at various churches. In its sentencing memorandum, the U.S. Attorney’s Office said, “Russell’s conduct is not one of opportunity or an isolated aberration. His was a deliberate and dedicated career of manipulation and sexual abuse.”
In announcing the sentence, U.S. Attorney Andrew Birge stated, “Russell’s conduct is an abomination. He worked and volunteered his way into the lives of our children, not as a service to our community, but as a means to identify, target, and sexually exploit vulnerable children. Those who are in a position of trust and sexually abuse children will be held accountable. There is no parole in the federal system. Russell will spend the rest of his life in prison and will never have the chance to molest another child.”
“The FBI is committed to working alongside our law enforcement partners to protect children from being exploited by people like Mr. Russell,” said David G. Nanz, Acting Special Agent in charge of the FBI in Michigan. “He used positions of trust to gain access to vulnerable children, abuse them and record the abuse for his own perverse pleasure. His actions were reprehensible and represent the worst betrayal of innocence and trust imaginable.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorneys Daniel Mekaru and Austin Hakes, in cooperation with the Muskegon County Prosecutor’s Office, and investigated by Henderson (Nevada) Police Department, Las Vegas Metropolitan Police Department, Norton Shores Police Department, FBI in Las Vegas, and WEBCHEX – “West Michigan Based Child Exploitation and Human Trafficking Task Force,” a partnership of FBI, Michigan State Police, and local agencies dedicated to investigating offenses against children.
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