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3 December 2020
Lehigh Acres Man Sentenced to Seven Years in Federal Prison for Selling A Variety of DrugsRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti has sentenced Nestly Jean a/k/a “Baby Zoe” (28, Lehigh Acres) to seven years in federal prison for distributing controlled substances. He had pleaded guilty on January 14, 2020. Jean is a documented member of the “Zoe Pound” street gang by the Lee County Sheriff’s Office.
According to court documents, in the spring of 2019, law enforcement purchased crack cocaine, powder cocaine, methamphetamine, and fentanyl from Jean over the course of four undercover deals, each occurring at a residence in the Palmona Park neighborhood of North Fort Myers. During one of the transactions, Jean cooked powder cocaine into crack cocaine in front of law enforcement before selling it to them. Although Jean sold his drugs in Palmona Park, law enforcement determined that he lived in Lehigh Acres. On May 9, 2019, during a search of Jean’s home, Jean was found to be in possession of more than $18,000 in cash, an AK-47 firearm, and a large stash of drugs.
This case was investigated by the Lee County Sheriff’s Office, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Lawrence Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Joel Espinosa, 21, of Lawrence, pleaded guilty in federal court on Wednesday to distributing fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a cooperating individual and an undercover agent purchased nearly 80 grams of fentanyl from Espinosa and another man during two separate occasions in 2019. One transaction occurred in Manchester and the other took place in Methuen, Massachusetts.
Espinosa is scheduled to be sentenced on March 15, 2021.
“Drug traffickers who are involved in the sale of fentanyl to Granite Staters are causing grave damage to public health and safety,” said U.S. Attorney Murray. “We will continue to coordinate our efforts with federal, state and local law enforcement agencies in order to stop the flow of this deadly drug. Drug dealers should be aware that state lines will not prevent them from being brought to justice in federal court.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Massachusetts State Police, New Hampshire State Police, and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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La Crosse Man Sentenced to 11 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Seth Strand, 31, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 11 years in federal prison for possessing methamphetamine with intent to distribute.
On January 22, 2020, Strand was a passenger in a Ford Explorer that was pulled over by the Wisconsin State Patrol in La Crosse County. Troopers arrested Strand after being notified of a felony arrest warrant for him. Troopers searched the Explorer and found a safe behind the passenger seat. Troopers found a key to the safe on the key chain for the Explorer. A search of the safe revealed approximately 407 grams of methamphetamine. During a post-arrest interview, Strand admitted he intended to sell the methamphetamine to several individuals in La Crosse County.
In imposing the sentence, Judge Conley noted that the Strand has an extensive criminal history including four felony drug trafficking convictions since 2013. Judge Conley also noted that the sentence was appropriate because Strand was in possession of nearly one pound of methamphetamine while on state supervision for two separate methamphetamine trafficking convictions in La Crosse County.
The charge against Strand was a result of an investigation conducted by the Wisconsin State Patrol and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Kentucky Horse Park Improves Access for Individuals with DisabilitiesRead the Press Release
LEXINGTON, Ky. –The U.S Attorney’s Office for the Eastern District of Kentucky has resolved its Americans with Disabilities Act (ADA) compliance review of the Kentucky Horse Park’s Covered Arena. The United States Attorney’s Office initiated the compliance review after receiving a complaint from a private citizen about barriers to access at the Covered Arena for individuals with disabilities.
The Commonwealth of Kentucky operates the Kentucky Horse Park, which is a public entity subject to Title II of the ADA. Title II requires public entities to operate services, programs, and activities so that they are readily accessible to and usable by individuals with disabilities. After receiving notice of the compliance investigation, the Kentucky Horse Park conducted its own investigation and worked with the U.S. Attorney’s Office to remove identified barriers to access in the Covered Arena’s restrooms.
“Everyone should be able to access basic necessities without barriers, regardless of any disabilities,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “Our Office will continue to make sure that everyone has equal access to facilities. We appreciate Kentucky Horse Park’s cooperation in being proactive to address the issues in their Covered Arena.”
As outlined in the Letter of Resolution informally resolving the compliance investigation, the Kentucky Horse Park installed grab bars, repositioned toilet compartment doors and toilet paper dispensers, and relocated existing flush controls or installed automatic flush controls in the accessible stalls in the Covered Arena’s restrooms to ensure accessibility for individuals with disabilities.
This matter was handled by Assistant United States Attorney Carrie Pond, as part of the Department of Justice’s civil rights enforcement efforts.
The year 2020 marks the 30th anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
Individuals wishing to file an online complaint of potential violations of the ADA can do so on the ADA’s website at www.ada.gov.
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Justice Department Files Lawsuit Against Facebook for Discriminating Against U.S. WorkersRead the Press Release
The Department of Justice announced today that it filed a lawsuit against Facebook Inc. for discriminating against U.S. workers.
The lawsuit alleges that Facebook refused to recruit, consider, or hire qualified and available U.S. workers for over 2,600 positions that Facebook, instead, reserved for temporary visa holders it sponsored for permanent work authorization (or “green cards”) in connection with the permanent labor certification process (PERM). The positions that were the subject of Facebook’s alleged discrimination against U.S. workers offered an average salary of approximately $156,000. According to the lawsuit, and based on the department’s nearly two-year investigation, Facebook intentionally created a hiring system in which it denied qualified U.S. workers a fair opportunity to learn about and apply for jobs that Facebook instead sought to channel to temporary visa holders Facebook wanted to sponsor for green cards.
“The Department of Justice’s lawsuit alleges that Facebook engaged in intentional and widespread violations of the law, by setting aside positions for temporary visa holders instead of considering interested and qualified U.S. workers,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “This lawsuit follows a nearly two-year investigation into Facebook’s practices and a ‘reasonable cause’ determination by the Justice Department’s Civil Rights Division. Our message to workers is clear: if companies deny employment opportunities by illegally preferring temporary visa holders, the Department of Justice will hold them accountable. Our message to all employers — including those in the technology sector — is clear: you cannot illegally prefer to recruit, consider, or hire temporary visa holders over U.S. workers.”
The department’s lawsuit alleges that beginning no later than Jan. 1, 2018 and lasting until at least Sept. 18, 2019, Facebook employed tactics that discriminated against U.S. workers and routinely preferred temporary visa holders (including H-1B visa holders) for jobs in connection with the PERM process. Rather than conducting a genuine search for qualified and available U.S. workers for permanent positions sought by these temporary visa holders, Facebook reserved the positions for temporary visa holders because of their immigration status, according to the complaint. The complaint also alleges that Facebook sought to channel jobs to temporary visa holders at the expense of U.S. workers by failing to advertise those vacancies on its careers website, requiring applicants to apply by physical mail only, and refusing to consider any U.S. workers who applied for those positions. In contrast, Facebook’s usual hiring process relies on recruitment methods designed to encourage applications by advertising positions on its careers website, accepting electronic applications, and not pre-selecting candidates to be hired based on a candidate’s immigration status, according to the lawsuit.
In its investigation, the department determined that Facebook’s ineffective recruitment methods dissuaded U.S. workers from applying to its PERM positions. The department concluded that, during the relevant period, Facebook received zero or one U.S. worker applicants for 99.7 percent of its PERM positions, while comparable positions at Facebook that were advertised on its careers website during a similar time period typically attracted 100 or more applicants each. These U.S. workers were denied an opportunity to be considered for the jobs Facebook sought to channel to temporary visa holders, according to the lawsuit.
Not only do Facebook’s alleged practices discriminate against U.S. workers, they have adverse consequences on temporary visa holders by creating an employment relationship that is not on equal terms. An employer that engages in the practices alleged in the lawsuit against Facebook can expect more temporary visa holders to apply for positions and increased retention post-hire. Such temporary visa holders often have limited job mobility and thus are likely to remain with their company until they can adjust status, which for some can be decades.
The United States’ complaint seeks civil penalties, back pay on behalf of U.S. workers denied employment at Facebook due to the alleged discrimination in favor of temporary visa holders, and other relief to ensure Facebook stops the alleged violations in the future. According to the lawsuit, and based on the department’s nearly two-year investigation, Facebook’s discrimination against U.S. workers was intentional, widespread, and in violation of a provision of the Immigration and Nationality Act (INA), 8 U.S.C. § 1324b(a)(1), that the Department of Justice’s Civil Rights Division enforces.
The PERM process is administered by the U.S. Department of Labor and allows employers to offer permanent positions to temporary visa holders by converting them to lawful permanent residents who may live and work in the United States on a permanent basis. However, the PERM process requires an employer to first demonstrate that there are no qualified and available U.S. workers for the position that the employer plans to offer to the temporary visa holder. The INA protects U.S. citizens, U.S. nationals, refugees, asylees, and recent lawful permanent residents from citizenship status discrimination in hiring, firing, and recruitment or referral for a fee. Workers who fall outside of these categories are not protected from citizenship status discrimination under the INA.
This lawsuit is filed as part of the Department of Justice Civil Rights Division’s Protecting U.S. Workers Initiative, which was started in 2017 and is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa holders. The Civil Rights Division’s Immigrant and Employee Rights Section (IER) has reached numerous settlements under the Initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of H-1B, H-2A, H-2B, and F-1 visas.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Members of the public can also report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Announces Civil Investigation into Louisiana's Prisoner Release PracticesRead the Press Release
The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.
The investigation will examine the Louisiana Department of Public Safety and Corrections’ policies and practices for ensuring the timely release of state prisoners in the custody of the Louisiana Department of Corrections who are incarcerated in state and local correctional facilities, including practices related to prisoners who are eligible for immediate release.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana. Individuals with relevant information are encouraged to contact the department via phone at 1-833-492-0097 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
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Justice Department Announces Civil Investigation into Louisiana's Prisoner Release PracticesRead the Press Release
The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.
The investigation will examine the Louisiana Department of Public Safety and Corrections’ policies and practices for ensuring the timely release of state prisoners in the custody of the Louisiana Department of Corrections who are incarcerated in state and local correctional facilities, including practices related to prisoners who are eligible for immediate release.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana. Individuals with relevant information are encouraged to contact the department via phone at 1-833-492-0097 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Announces Civil Investigation into Louisiana's Prison Release PracticesRead the Press Release
The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.
The investigation will examine the Louisiana Department of Public Safety and Corrections’ policies and practices for ensuring the timely release of state prisoners in the custody of the Louisiana Department of Corrections who are incarcerated in state and local correctional facilities, including practices related to prisoners who are eligible for immediate release.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana. Individuals with relevant information are encouraged to contact the department via phone at 1-833-492-0097 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jamaican Native Who Was Convicted of Fraud but Failed to Appear for Sentencing Is Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Daciann Brown, 30, a Jamaican native residing in Rochester, NY, who was convicted of failing to appear for sentencing, was sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. to serve 46 months in prison and to pay restitution totaling $182,139.62.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that in May 2018, the defendant pleaded guilty to wire fraud, false claims, and fraud related to identification documents. Brown purported to be a tax preparer and filed 66 false tax returns on behalf of 44 taxpayers with the IRS. Thirteen of those taxpayers did not know the defendant was filing returns using their personal information. Brown was scheduled to be sentenced on August 28, 2018. However, the defendant failed to appear on that date, and an arrest warrant was issued. On June 3, 2020, Brown was arrested by the U.S. Marshal Service.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, and the U.S. Marshal Service, under the direction of Marshal Charles Salina.
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Incarcerated Universal Aryan Brotherhood Member Sentenced to 25 Additional Years in Federal Prison for Meth Distribution Conspiracy Orchestrated from State PrisonRead the Press Release
OKLAHOMA CITY – Earlier this week, COLBY SCOTT SHEPHERD, 37, of Elk City, and a member of the Universal Aryan Brotherhood (UAB) currently incarcerated in an Oklahoma prison on a state conviction, was sentenced to serve 300 months in federal prison for his involvement in a methamphetamine distribution conspiracy, announced U.S. Attorney Timothy J. Downing.
On February 19, 2019, a federal grand jury returned a three-count Indictment charging Shepherd with a drug conspiracy and possession with intent to distribute methamphetamine. On September 13, 2019, Shepherd pled guilty to Count 2 of the Indictment alleging a conspiracy to distribute methamphetamine.
According to court documents and public records, Shepherd was a member of the UAB incarcerated in an Oklahoma prison serving time for multiple state convictions arising out of Beckham, Custer, and Oklahoma Counties. Despite being incarcerated, Shepherd and other members of the UAB orchestrated a drug-trafficking operation, primarily focused on the distribution of methamphetamine, using contraband cell phones. Shepherd and his associates used other non-incarcerated members and contacts of the UAB to facilitate the distribution of methamphetamine and collection of drug proceeds throughout Western Oklahoma.
Ultimately in November 2018, Shepherd coordinated a series of narcotics transactions with an undercover officer. During the final transaction, Shepherd coordinated a delivery in Oklahoma City for pounds of methamphetamine but law enforcement intercepted his associate Michael Lee Chism with the narcotics and a firearm at the delivery location.
On November 30, 2020, U.S. District Judge Stephen P. Friot sentenced Shepherd to serve 300 months (25 years) in federal prison beginning only after he completes all the remaining time of incarceration for his state cases. He was also ordered to serve five years of supervised release after he completes his federal prison term. At the sentencing hearing, Judge Friot commented on Shepherd’s continued propensity to engage in criminal activity and lack of deterrence despite being incarcerated as reasoning for the necessity of the lengthy sentence.
Shepherd’s codefendant in this case, Michael Lee Chism, previously pled guilty to possession of methamphetamine with the intent to distribute, along with possession of a firearm in furtherance of a drug-trafficking crime. On May 29, 2020 he was sentenced to serve 60 months (5 years) in federal prison.
"I hope Universal Aryan Brotherhood members take note of this federal sentence as they continue their dangerous gang activities from state prison and conspire to distribute drugs in our state," said U.S. Attorney Downing. "This case is another reminder that contraband cell phones in our prisons remain a major public safety issue and our office will continue to vigorously pursue criminals who continue to distribute drugs in our state even after they are incarcerated."
"This lengthy prison sentence of a drug dealing gang member should send a clear message to both criminals and law abiding citizens that Homeland Security Investigations (HSI) will never relent in our efforts to hold criminals accountable while protecting the general public," said Ryan L. Spradlin, special agent in charge HSI Dallas. "This felon’s attempt to sustain his illegal drug dealing business while incarcerated highlights the distance he went for personal gain. This result serves as a stark reminder that HSI’s reach has no limits."
This case was the result of an investigation by the U.S. Homeland Security Investigations, the Oklahoma Department of Corrections—Security Threats Intelligence, and the Oklahoma District Attorney’s Drug Task Force for District 2. Assistant U.S. Attorneys Jason Harley and Nicholas J. Patterson prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Illinois Man Charged with Production of Child PornographyRead the Press Release
BOSTON – An Illinois man was arrested today and charged in federal court in Boston with producing child pornography.
Domenique Dequon Hines, 23, of Crystal Lake, Ill., was charged by criminal complaint with one count of production/attempted production of child pornography. Hines will make an initial appearance tomorrow in federal court in Rockford, Ill.
According to the criminal complaint, Hines and a 14-year-old Massachusetts victim initially met and conversed on Instagram. Thereafter, the two exchanged phone numbers and began communicating via iMessage. A review of the iMessages revealed that Hines informed the victim that he is 23 years old and the victim confirmed her age. It is alleged that thereafter, at Hines request, the victim took sexually explicit photos of herself and sent them to Hines.
According to the criminal complaint, Hines was previously convicted of a child pornography offense in Illinois.
Due to Hines’s prior conviction, the charging statute provides for a mandatory minimum sentence of 25 years and up to 50 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Norfolk County District Attorney Michael Morrissey made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Houma Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – HARRIS HENDERSON, age 44, a resident of Houma, Louisiana, pled guilty today before United States District Judge Carl J. Barbier to a one-count indictment charging him with distributing five grams or more of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to court records, in January 2018, a confidential source (CS) informed agents of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Task Force that HENDERSON sold methamphetamine in the Terrebonne Parish area. On February 7, 2018, agents used the confidential source to make a controlled purchase of approximately two ounces of methamphetamine from HENDERSON in Schriever, Louisiana.
HENDERSON faces a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00, at least four years of supervised release following any term of imprisonment and a $100.00 special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Grand jury indicts two St. Louis men on various charges of carjacking, firearms and felon in possession of firearms and ammunitionRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted Jeremiah Couch with two counts of carjacking with the intent to cause death or serious physical injury, two counts of brandishing a firearm in furtherance of a crime of violence, one count of being a felon in possession of a firearm, and one count of possessing a stolen firearm.
The grand jury also indicted Joshua Thomas with one count of carjacking with the intent to cause death or serious physical injury, one count of brandishing a firearm in furtherance of a crime of violence, one count of being a felon in possession of a firearm, one count of possession a stolen firearm, and one count of being a felon in possession of ammunition.
According to the indictment and other the court documents, on October 21, 2019, Couch carjacked an individual at gunpoint and fled the scene in the victim’s vehicle. St. Louis Metropolitan Police Department officers located Couch in the victim’s vehicle and when they arrested him, Couch was in possession of one or more firearms. Also on October 21, 2019, Thomas led St. Louis Metropolitan Police Department officers on a high-speed chase. When the officers caught Thomas, he possessed of one or more firearms and methamphetamine.
Court records further reflect that on October 19, 2019, Couch and Thomas aided and abetted each other in committing an armed carjacking. On October 17, 2019, Couch and another individual matching the Thomas’s description shot an individual and stole the victim’s bag, which contained the victim’s firearm. Thomas was found in possession of that firearm on October 21, 2019.
Additionally, court records reflect that on September 30, 2019, Thomas shot at a group of individuals multiple times, striking one of them. St. Louis Metropolitan Police Department officers located ballistic evidence at the scene.
Carjacking with intent to cause death or serious physical injury carries a maximum penalty of 15 years imprisonment; brandishing a firearm in furtherance of a crime of violence carries a penalty of 7 years up to life imprisonment; felon in possession of a firearm, possessing a stolen firearm, and felon in possession of ammunition carry a maximum penalty of 10 years imprisonment.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
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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Grand jury indicts trucking company employee on embezzlement chargesRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted Michelle Serth-Stein on five counts of wire fraud. The 50 year old is a resident of Smithton, Illinois.
According to the indictment, between approximately October 2017 and August 2019, Serth-Stein embezzled monies from her employers to pay for retail expenditures and personal loans. Serth-Stein first worked at St. Louis-based Midwest Systems where she was the company’s driver recruiter. Serth-Stein’s role required submitting invoices for reimbursement of driver recruitment expenses. Serth-Stein, from October 2017 to January 2019, submitted false and fraudulent invoices to Midwest Systems for payments directed to Serth-Stein’s personal bank account. The company fired her on January 24, 2019.
On March 3, 2019, AA Express, Inc. hired Serth-Stein to conduct driver recruitment and oversee driver safety. AA Express, Inc. is also a St. Louis-based trucking company. From approximately March 2019 until August 2019, Serth-Stein made unauthorized Automated Clearing House (ACH) transactions from the AA Express, Inc. business bank account and intercepted at least one check made payable to AA Express, Inc. by using her check signing privileges on the AA Express, Inc. bank account. Serth-Stein then directed the funds into her personal checking account. On August 10, 2019, Serth-Stein’s employment with AA Express, Inc. ended.
Serth-Stein embezzled approximately $120,804.57 from Midwest Systems and AA Express, Inc. without the knowledge or authorization of her employers.
For each count of wire fraud, Serth-Stein faces a maximum punishment of 20 years in prison and a fine of up to $250,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Federal Bureau of Investigation is investigating this case. Assistant United States Attorney Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s Office.
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Grand jury indicts pair for stealing money from three St. Louis-area credit unionsRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted Wendell Bryant, 43, and Ciera Moreland, 34, on one count of bank fraud conspiracy and Bryant on one count of bank fraud.
According to the indictment, beginning in or around September 2019 and ending in or around November 2019, Bryant and Moreland conspired with each other to defraud three financial institutions by submitting fraudulent vehicle loan applications. Bryant and Moreland obtained loans from the financial institutions to purchase vehicles that were not in the custody or control of auto dealer STL Power Motors, operated by Bryant.
Moreland submitted loan applications to Neighbors Credit Union, Together Credit Union, and Vantage Credit Union, including false and fraudulent income verification. Bryant would then fax automobile purchase orders to the financial institutions for vehicles that were not in the possession of STL Power Motors.
Once Moreland obtained the loan proceeds from the credit unions, the funds were dispersed between Bryant and Moreland.
Bank fraud carries a maximum punishment of 30 years in prison and a fine of up to $1,000.000. The same penalties apply to conspiracy to commit bank fraud.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Postal Inspection Service is investigating this case. Assistant United States Attorney Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s Office.
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Gonzales Man Sentenced to 198 Months in Federal Prison for Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Taylor Haynes, age 29, of Gonzales, Louisiana, to serve 198 months in federal prison following his conviction for distribution and possession of child pornography. The Court also ordered that, after imprisonment, Haynes serve five years of supervised release, during which Haynes would be restricted from contact with minors. As part of the judgment issued in this case, Haynes was also ordered to pay restitution to his victims in the amount of $21,000, and he will be required to register as a convicted sex offender for life.
According to court records in this case, law enforcement officials received a tip from the National Center for Missing and Exploited Children reporting an incident where Haynes utilized the Facebook Messenger application to distribute child pornography to another Facebook user. Acting on this tip, law enforcement officials obtained and executed a search warrant on Haynes’s residence. During the search of the residence, law enforcement officials learned that Haynes possessed over 20 images and 40 videos of prepubescent minors and minors under 12 years old, engaged in sexually explicit conduct. The search also revealed a number of videos and images of Haynes sexually abusing a dog.
U.S. Attorney Fremin stated, “This conviction and sentence contributes to the safety and security of children not only in our community, but around the world. Our office will continue to work with our law enforcement partners to aggressively pursue individuals whose actions exploit our youth. I applaud the work of our prosecutor and local, state and federal agents involved in this matter.”
“Investigating individuals like Taylor Haynes is one of the highest priorities of the FBI. Mr. Haynes violated innocent lives and we will continue to take an aggressive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child sexual abuse material,” stated Special Agent in Charge Bryan Vorndran. “This sentence is the culmination of an investigation conducted by Special Agents and Intelligence Analysts who work tirelessly to remove sexual predators from children’s lives through the justice system.”
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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 matter was investigated by the Federal Bureau of Investigation with substantial assistance provided by the Louisiana Bureau of Investigation and the Ascension Parish Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr., who also serves as Deputy Criminal Chief.
Fort Wayne Man Sentenced to 151 Months in PrisonRead the Press Release
FORT WAYNE – Tyrion McNair, age 28, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly Brady following his plea of guilty to distributing 50 grams or more of methamphetamine, announced U.S. Attorney Kirsch.
McNair was sentenced to 151 months in prison followed by 5 years of supervised release. The Court ordered McNair’s federal sentence to run consecutive to his Indiana state convictions for murder and using a firearm during the commission of an offense in 02D05-1807-MR-12.
According to documents presented in this case, on or about March 12, 2018, McNair sold approximately three ounces of crystal methamphetamine, or “ice,” to an individual working with law enforcement. McNair sold additional amounts of crystal methamphetamine to this individual from January through March of 2018.
"Putting individuals such as Mr McNair - who not only poisoned our communities with the drugs he peddled, but who also committed a heinous murder - behind bars has always been and will continue to be a priority for the FBI,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Through our federal, state, and local law enforcement partnerships we will continue to work to disrupt criminal enterprises that negatively impact life for so many."
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the FBI, the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department. Also assisting with this investigation were the Fort Wayne Police Department’s Gang and Violent Crime Unit and Vice and Narcotics Division. The case was handled by Assistant United States Attorneys Anthony Geller and Stacey Speith.
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Former Office of Tax and Revenue Head of Collections Sentenced for Paying Bribes to OTR Official to Help Consulting ClientRead the Press Release
WASHINGTON - Bobby Tucker, 63, former Chief of Collections for the District of Columbia Office of Tax and Revenue (“OTR”) was sentenced today to 14 months of incarceration for his conviction for a bribery charge stemming from a scheme in which he paid bribes to an OTR official in order to reduce the tax liabilities of a business he consulted and to take other actions to benefit Tucker’s business interests as opportunities arose.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge James A. Dawson of the FBI Washington Field Office, Criminal Division and Inspector General Daniel W. Lucas, District of Columbia’s Office of Inspector General.
Tucker, of Suffolk, Virginia, pled guilty to bribery on June 12, 2020. On December 3, 2020, Tucker was sentenced by Chief Judge Beryl Howell to 14 months of incarceration and two years of supervised release, along with a $10,000 fine and a special assessment of $100.
According to the government’s evidence, Tucker agreed to pay an OTR official, who was working as a confidential source, to obtain referrals of city taxpayers with outstanding tax liabilities. With respect to one such referral, Tucker paid $5,000 in bribes to the OTR official in exchange for that official wiping out nearly $150,000 in tax liability for a business organization operating in the District of Columbia.
In announcing the sentence, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the Office of the Inspector General for the District of Columbia. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Peter Lallas and Paralegal Specialists Amanda Rohde and Stephanie Frijas.
Former Meridian Police Officer Pleads Guilty to Federal ExtortionRead the Press Release
Jackson, Miss. – Former Meridian Police Officer Royric “Roy” Benamon, 27, pled guilty yesterday before Chief U.S. District Judge Daniel P. Jordan III to one count of federal extortion under color of right, announced United States Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
“There is almost no greater threat to our society than when public servants, especially law enforcement, betray the trust of the people and abuse their authority for their own personal gain. Bringing corrupt officials to justice is one of the highest priorities of this office, and we will continue to ensure that the public is protected and that criminals answer for their crimes,” said U.S. Attorney Mike Hurst.
In April 2020, Officer Benamon pulled over a driver at night in Lauderdale County, and solicited and received from the driver a cash payment in exchange for not issuing the driver a ticket.
Benamon was indicted by a federal grand jury on July 28, 2020, charging him with two counts of extortion under color of right, in violation of 18 U.S.C. § 1951(a).
Sentencing has been set for March 3, 2021 before Judge Jordan in Jackson. Benamon faces a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division and the Mississippi Attorney General’s Office who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Former Investment Manager Charged in Scheme to Defraud Life Insurance CompanyRead the Press Release
WASHINGTON – A former investment manager was charged in an indictment unsealed today for his alleged participation in a scheme to defraud a North Carolina-based life insurance company out of over $34 million.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
Bradley Reifler, 61, of Milbrook, New York, was charged with four counts of wire fraud and one count of perjury in the U.S. District Court for the Middle District of North Carolina. The defendant was arrested this morning and will appear today before U.S. Magistrate Judge Katherine H. Parker in the Southern District of New York.
The indictment alleges that the defendant, CEO and founder of Forefront Capital Holdings, engaged in a scheme to enrich himself and his business entities by defrauding a life insurance company out of assets held in trust for the potential payment of life insurance claims.
As alleged in the indictment, the defendant served as an investment advisor for over $34 million in assets belonging to the life insurance company. Rather than investing the $34 million in permissible investments, the defendant invested funds in high-risk, “junk”, or self-dealing investments and otherwise diverted funds for his personal and business use. The indictment further alleges that after a 2016 audit of the trust assets raised concerns about investments made by the defendant, the defendant concealed the fraud by falsifying and causing others to falsify supporting documentation, including valuations, promissory notes, and agreements, purporting to underly investments made with the trust assets.
The indictment also alleges that the defendant submitted a false declaration in connection with a civil suit brought by the life insurance company, falsely swearing, under penalty of perjury, that all investments had been approved and that all of the funds had been invested in debt instruments. As a result of the defendant’s scheme, the life insurance company was only able to recoup a portion of the approximately $34 million that it entrusted to the defendant, was unable to pay out on claims by its beneficiaries, and was placed in rehabilitation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by USPIS. Trial Attorneys Michelle Pascucci, Drew Bradylyons, and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles of the Middle District of North Carolina are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
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Former Investment Manager Charged in Scheme to Defraud Life Insurance CompanyRead the Press Release
A former investment manager was charged in an indictment unsealed today for his alleged participation in a scheme to defraud a North Carolina-based life insurance company out of over $34 million.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
Bradley Reifler, 61, of Milbrook, New York, was charged with four counts of wire fraud and one count of perjury in the U.S. District Court for the Middle District of North Carolina. The defendant was arrested this morning and will appear today before U.S. Magistrate Judge Katherine H. Parker in the Southern District of New York.
The indictment alleges that the defendant, CEO and founder of Forefront Capital Holdings, engaged in a scheme to enrich himself and his business entities by defrauding a life insurance company out of assets held in trust for the potential payment of life insurance claims.
As alleged in the indictment, the defendant served as an investment advisor for over $34 million in assets belonging to the life insurance company. Rather than investing the $34 million in permissible investments, the defendant invested funds in high-risk, “junk”, or self-dealing investments and otherwise diverted funds for his personal and business use. The indictment further alleges that after a 2016 audit of the trust assets raised concerns about investments made by the defendant, the defendant concealed the fraud by falsifying and causing others to falsify supporting documentation, including valuations, promissory notes, and agreements, purporting to underly investments made with the trust assets.
The indictment also alleges that the defendant submitted a false declaration in connection with a civil suit brought by the life insurance company, falsely swearing, under penalty of perjury, that all investments had been approved and that all of the funds had been invested in debt instruments. As a result of the defendant’s scheme, the life insurance company was only able to recoup a portion of the approximately $34 million that it entrusted to the defendant, was unable to pay out on claims by its beneficiaries, and was placed in rehabilitation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by USPIS. Trial Attorneys Michelle Pascucci, Drew Bradylyons, and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles of the Middle District of North Carolina are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
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.
Former Hilo Correctional Officer Pleads Guilty for Assaulting an Inmate and Conspiring with Other Officers to Cover it UpRead the Press Release
A former correctional officer at the Hawaii Community Correctional Center pleaded guilty to three felony offenses yesterday for assaulting an inmate; for failing to protect the inmate from being assaulted by three other correctional officers; and for conspiring with those officers to cover it up.
Jordan DeMattos, 29, admitted during his plea hearing that he and fellow correctional officers pinned an inmate face-down on the ground, and then punched, kneed, and kicked the inmate in the face, head, and body dozens of times. DeMattos acknowledged that during much of the assault, the inmate was not resisting and the officers had no legitimate reason to use force against him. As a direct result of the assault, the inmate suffered a broken jaw, nose, and eye socket. DeMattos explained that he and the other officers conspired afterward to cover up the assault by engaging in a variety of obstructive acts, including devising a false cover story to explain and justify their use of excessive force, documenting that false cover story in official reports, and repeating that false cover story during the ensuing investigation and disciplinary proceedings arising out of the incident.
“This correctional officer’s actions go against every duty he swore to carry out when he took his badge,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Civil rights violations are particularly egregious when they are carried out by someone whose duty is to protect. The Justice Department works hard to ensure that these perpetrators see justice for their crimes.”
“Together, a uniform, title, and authority to secure a state facility are not a license to victimize,” said U.S. Attorney Kenji Price for the District of Hawaii. “My office is committed to vindicating the rights of all citizens by enforcing the law — which includes holding those charged with safeguarding correctional facilities accountable for assaulting the inmates housed within them.”
“Correctional officers are given great power to enforce rules, keep order, and protect the inmates within their facilities. When Jordan DeMattos exploited these powers and violated the civil rights of an inmate he was charged to protect, he undermined the respect and reputation of all the officers who perform their duties lawfully and with dignity,” said Special Agent in Charge Eli S. Miranda. “The FBI takes allegation of civil rights violations seriously and will always bring to justice those who abuse their power and violate the constitution.”
DeMattos faces a maximum statutory penalty of up to 10 years of imprisonment for the assault offense, 20 years of imprisonment for the false report offense, and five years of imprisonment for the conspiracy offense.
The other three officers allegedly involved — Jason Tagaloa, Jonathan Taum, and Craig Pinkney — have pleaded not guilty and are scheduled to begin trial on March 15, 2021.
The FBI conducted the investigation. Assistant U.S. Attorney Craig Nolan of the District of Hawaii is prosecuting the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Civil Rights Division.
Former Fresno IRS Employee Sentenced to 6 Years in Prison for Wire Fraud, Aggravated Identity Theft, and Tax FraudRead the Press Release
FRESNO, Calif. — A former employee of the IRS working in Fresno was sentenced today to six years in prison for a scheme to receive tax refunds by filing false tax returns using the stolen identities of at-risk youths, U.S. Attorney McGregor W. Scott announced.
On Dec. 12, 2019, a federal jury found Marcela Heredia, 47, of Riverside, guilty of seven counts of wire fraud, four counts of aggravated identity theft, and one count of making a false tax return.
According to court documents and evidence introduced at trial, until 2014, Heredia worked at the Fresno Economic Opportunities Commission’s Transitional Living Center. Heredia also worked at the IRS as a Tax Examiner between 2008 and 2014. While working at the Transitional Living Center, Heredia stole residents’ personally identifiable information (PII) and filed numerous tax returns that included false wage and withholding information, false educational expenses, false dependent claims, and others false claims. Heredia directed the refunds for those returns to her personal bank account, spending the money on various personal expenses. Heredia failed to report any of the refund money she directed into her account on her 2011 tax return.
Many of the residents at the Transitional Living Center whose personal identifying information Heredia stole in order to file false tax returns were young, at-risk adults. Many were former foster children who had aged out of foster care, many were homeless and had nowhere else to go.
“Heredia spent three years taking advantage of vulnerable kids, stealing their personal information to get their tax refunds to spend on entertainment tickets, groceries, rental cars, restaurants, retail shopping, liquor stores, and other day-to-day expenses,” said U.S. Attorney Scott. “Today’s sentence reflects the serious nature of her conduct and serves as a warning to others. The U.S. Attorney’s Office will continue to work with the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation to investigate and bring to justice those who would carry out a tax fraud scheme.”
“The Treasury Inspector General for Tax Administration will aggressively pursue Internal Revenue Service employees who endeavor to corrupt our Nation’s tax system,” said J. Russell George, Treasury Inspector General for Tax Administration. “Identity theft is a nationwide problem that disrupts the lives of its victims. When an IRS employee uses their internal knowledge of the IRS to commit tax fraud, it jeopardizes taxpayer trust in our Nation’s tax system.”
“The IRS along with TIGTA uses all its investigative tools to uncover fraud when committed by the public or in this case an IRS employee,” said Kareem Carter, Special Agent in Charge of the Oakland Field Office, IRS-CI. “Heredia’s fraud scheme harmed the United States Government and members of the local community. Today’s sentencing should send a positive message to the American taxpayers that IRS employees are held to a high standard when working in a public position in order to safeguard and instill trust in the U.S. tax system.”
This case was the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli prosecuted the case.
Former DeSales University Priest Indicted on Child Pornography OffensesRead the Press Release
A former DeSales University priest was charged by indictment with three counts of child pornography offenses.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania, and Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia made the announcement.
William McCandless, 56, of Wilmington, Delaware, was charged with possessing child pornography for importation into the Unites States, transporting child pornography in interstate and foreign commerce, and attempting to access with intent to view child pornography.
During his initial appearance before U.S. Magistrate Judge Henry S. Perkin, the defendant was arraigned on the pending charges and ordered to be placed on home confinement, to submit to electronic monitoring and to surrender his passport because he frequently traveled overseas and has numerous contacts abroad.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by HSI and is being prosecuted by CEOS Trial Attorney Ralph Paradiso and Assistant U.S. Attorney Sherri A. Stephan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Former DeSales University Catholic Priest Indicted on Child Pornography OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that William McCandless, 56, of Wilmington, Delaware, a former DeSales University priest, was charged by Indictment with three counts of child pornography offenses.
Specifically, McCandless was charged with possessing child pornography for importation into the United States, transporting child pornography in interstate and foreign commerce, and attempting to access with intent to view child pornography.
During his initial appearance today in front of United States Magistrate Court Judge Henry S. Perkin, the defendant was arraigned on the pending charges. He was also ordered to be placed on home incarceration with electronic monitoring and to surrender his passport because he has frequently traveled overseas and has numerous contacts abroad. In fact, from 2010 until January 2017, as a member of the Catholic order of Oblates of St. Francis DeSales, McCandless was assigned to St. Charles Parish in the European Principality of Monaco.
While he was working overseas in Monaco, McCandless allegedly amassed a collection of thousands of images of child pornography, including what can be described as the torture of very young children, which he brought back with him to the United States when he returned in January 2017. Further, once back in the United States, the defendant allegedly attempted to access similar images, and also conducted Internet searches for things like how to get “off the grid,” how to “disappear” and how to erase items from “the cloud.”
“McCandless’ alleged conduct here is extremely disturbing. It occurred not just overseas but continued while he crossed international borders, purporting to do the work of the Church,” said U.S. Attorney McSwain. “The innocent children in these images will have to deal with the impact of this alleged abuse for the rest of their lives. We can never make them fully whole again, but we can bring them some measure of justice by investigating and prosecuting the people who drive the demand for this abuse, no matter their affiliations.”
“For a priest and university faculty member to violate his position of trust by allegedly engaging in the depraved activity for which he has been indicted is reprehensible,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners around the world will continue to coordinate closely to ensure our communities are protected from child predators who seek to exploit vulnerable victims.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If convicted, the defendant faces a maximum possible sentence of 60 years in prison.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Sherri A. Stephan and Trial Attorney Ralph Paradiso of the Child Exploitation and Obscenity Section of the Department of Justice.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former CEO and Founder of Technology Company Pleads Guilty to Investment Fraud SchemeRead the Press Release
The former chief executive officer (CEO) and co-founder of Trustify, Inc. (Trustify), a privately-held technology company founded in 2015 and based in Arlington, Virginia, pleaded guilty today to his involvement in a fraud scheme resulting in millions of dollars of losses to investors.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Daniel Boice, 41, of Alexandria, Virginia, pleaded guilty to one count of securities fraud and one count of wire fraud before Senior United States District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is scheduled for March 19, 2021.
According to admissions made in connection with the plea agreement, beginning in 2015, Boice fraudulently solicited investments in Trustify, a privately held technology start-up company that connected customers with private investigators. Boice raised approximately $18.5 million from over 90 investors by, among other things, falsely overstating Trustify’s financial performance. Despite representing to investors that their funds would go towards operating and growing Trustify’s business, Boice diverted at least $3.7 million for his own benefit and to fund his lifestyle. This included the purchase of a home in Alexandria, Virginia, travel by private jet, and furnishing a seaside vacation home.
The FBI’s Washington Field Office is investigating the case. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Carlberg of the Eastern District of Virginia are prosecuting the case.
Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the Eastern District of Virginia at 703-299-3700 for more information.
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.
Former Boy Scout Troop Leader Sentenced to 6 1/2 Years in Federal Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. – Senior U.S. District Judge Michael M. Mihm today sentenced former Boy Scout troop leader Milton Forsberg, 80, to serve 78 months (6 years, 6 months) in federal prison for receipt and possession of child pornography. In addition, Forsberg, of the 800 block of West Charles Street, Champaign, Ill., was ordered to pay special assessments in the amount of $10,200 for court costs as well as his contributions to a fund supporting victims of child exploitation. Forsberg has remained in the custody of the U.S. Marshals Service since his arrest in October 2019.
On Aug. 14, 2020, Forsberg pleaded guilty to using a computer to receive sexually explicit images of minors and to possess child pornography. According to court records, Forsberg was a Boy Scout troop leader for 40 years. At sentencing, Forsberg did not object that the court consider allegations by three victims that Forsberg sexually molested them while they were Boy Scouts in his care.
At today’s hearing, Judge Mihm expressed his concern that Forsberg had used the Boy Scouts to access and groom young men to cause permanent harm and that he finds it hard to believe that there were only several victims. Judge Mihm further noted that because of Forsberg’s advanced age, the sentence is sufficient but not greater than necessary.
One of the victims addressed the court today and encouraged the community to “lift the taboo or veil of secrecy and shame” that prevents victims from coming forward sooner. The victim explained that he felt scared to disclose the abuse “for decades,” and encouraged schools to offer more comprehensive education programs for children.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case which was investigated by the Champaign Police Department and the Illinois Attorney General’s Office Internet Crimes Against Children Task Force.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
El Departamento de Justicia entabla pleito contra Facebook por discriminar a trabajadores en este paísRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha entablado pleito contra Facebook, Inc. por discriminar a trabajadores en este país.
El pleito alega que Facebook se negó a reclutar, considerar o contratar a trabajadores cualificados y disponibles en este país para más de 2.600 puestos que en cambio, Facebook reservó para personas con visas temporales que había patrocinado para una autorización permanente para trabajar (o «tarjetas verdes»), en conexión con el proceso de certificación de trabajo permanente («PERM», por sus siglas en inglés). Los puestos que eran el sujeto de la alegada discriminación por parte de Facebook a trabajadores en este país ofrecían un salario medio de aproximadamente 156.000 $. Según el pleito y con base en la investigación del Departamento que duró casi dos años, Facebook creó intencionalmente un sistema de contratación que denegaba la oportunidad justa de trabajadores en este país de informarse sobre y solicitar puestos que Facebook, en cambio, intentaba reservar para personas con visas temporales que cuyas tarjetas verdes quería patrocinar.
«El pleito del Departamento de Justicia alega que Facebook vulneró la ley de manera intencionada y extendida al reservar puestos para trabajadores con visas temporales en vez de considerar a trabajadores cualificados e interesados en este país», declaró Eric S. Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «El pleito es el resultado de una investigación de casi dos años de las prácticas de Facebook y una determinación de “motivos fundados” por parte de la División de Derechos Civiles del Departamento de Justicia. Que quede claro nuestro mensaje para los trabajdores: si una compañía le niega una oportunidad de empleo al dar preferencia, de modo ilegal, a trabajadores con visas temporales, el Departamento de Justicia la hará rendir cuentas de sus acciones. Y que quede claro también nuestro mensaje para todos los empleadores, incluyendo a aquellos del sector tecnológico: no pueden dar una preferencia ilegal a trabajadores con visas temporales en vez de a trabajadores en este país a la hora de reclutar, considerar o contratarlos».
El pleito del Departamento alega que comenzando, a más tardar, el 1 de enero del 2018, y hasta al menos el 18 de septiembre del 2019, Facebook empleó tácticas que discriminaron a trabajadores en este país y dio preferencia, de manera rutinaria, a personas con visas temporales (incluyendo a personas con visas H-1B) para empleos asociados con el proceso PERM. En vez de realizar una búsqueda verdadera de trabajadores cualificados y disponibles en este país para puestos permanentes solicitados por estas personas con visas temporales, Facebook reservó los puestos para los trabajadores con visas temporales por motivos de su estatus migratorio, según indica la demanda. Más aún, la demanda alega que Facebook quería reservar puestos para personas con visas temporales, a costa de los trabajadores en este país, al abstenerse de publicar aquellas vacantes en su sitio web de profesiones, al requerir que los postulantes entregaran su solicitud por correo ordinario exclusivamente y al negarse a considerar a cualquier trabajador en este país que solicitó uno de esos puestos. En cambio, el proceso de contratación habitual de Facebook utiliza métodos de reclutamiento que alientan la entrega de solicitudes mediante la publicación de puestos en su sitio web de profesiones, aceptan solicitudes virtuales y no preseleccionan a candidatos para la contratación con base en el estatus migratorio del candidato, según afirma el pleito.
Durante el transcurso de su investigación, el Departmento determinó que los métodos de reclutamiento ineficaces de Facebook disuadieron a trabajadores en este país de solicitar alguno de sus puestos PERM. El Departamento concluyó que, a lo largo del período en cuestión, Facebook recibió cero o un solicitante que era trabajador en este país para el 99,7 % de sus puestos PERM, mientras que puestos comparables en Facebook que fueron publicados en su sitio web de profesiones durante un período de tiempo similar típicamente atraían a 100 solicitantes o más. Estos trabajadores en este país fueron denegados la oportunidad de ser considerados para los puestos que Facebook quería reservar para personas con visas temporales, según consta en el pleito.
No solo que las prácticas alegadas de Facebook discriminan a trabajadores en este país, sino que han tenido consencuencias adversas para personas con visas temporales al crear una relación de empleo que no queda sujeta a las mismas condiciones. Un empleador que incurre en las prácticas alegadas en el pleito contra Facebook puede esperar que más personas con visas temporales soliciten puestos y una mayor tasa de retención pos-contratación. Tales personas con visas temporales suelen tener una movilidad laboral limitada y es, por lo tanto, más probable que se queden con su compañía hasta poder ajustar su estatus, y para muchos eso puede tardar décadas.
La demanda de los Estados Unidos pide sanciones civiles, pagos retroactivos por parte de trabajadores en este país a los que fueron denegado un empleo en Facebook debido a la alegada discriminacion a favor de trabajadores con visas temporales y otros tipos de compensación con el fin de agarantizar que Facebook ponga fin en el futuro a las alegadas vulneraciones. Según el pleito, y con base en la investigación de casi dos años del Departamento, Facebook discriminó a trabajadores en este país de manera intencionada, extensa y en contra de una disposición de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), Sección 1324b(a)(1) del Título 8 del Código de los EE. UU., la cual la División de Derechos Civiles del Departamento de Justicia hace cumplir.
El proceso PERM es administrado por el Departamento de Trabajo de los EE. UU. y permite a los empleadores ofrecer puestos permanentes a personas con visas temporales al convertirlos en residentes permanentes legales que pueden vivir y trabajar en los Estados Unidos de manera permanente. No obstante, el proceso PERM requiere primero que un empleador demuestre que no hay trabajadores cualificados y disponibles en este país para el puesto que el empleador tiene previsto ofrecer a trabajadores con visa temporal. Los ciudadanos estadounidenses, nacionales de los EE. UU., refugiados, asilados y residentes permanentes legales están protegidos bajo la INA de disriminación por motivos de su ciudadañía en los procesos de contratación, despido y reclutamiento o recomendación por comisión. Aquellos trabajadores que queden fuera de estas categorías no se benefician de la protección de la INA de la discriminación por motivos de estatus de ciudadanía.
Este pleito se entabló como parte de la Iniciativa para la Protección de Trabajadores en Este País de la División de Derechos Civiles, que fue lanzada en el 2017. Su meta es enfocarse en, investigar a y tomar medidas de aplicación de la ley contra compañías que discriminen a trabajadores en este país a favor de trabajadores extranjeros con visas temporales. La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles ha llegado a numerosos acuerdos bajo la Iniciativa y empleadores han distribuido o acordado distribuir un total combinado de más de 1,2 millónes de dólares por concepto de pagos retroactivos a trabajadores afectados en este país y sanciones civiles a los Estados Unidos. Estos acuerdos implican empleadores que fueron discriminatorios en su uso de visas de H-1B, H-2A, H-2B y F-1.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Miembros del público también pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Descargar la demanda (en inglés)
Dodge City Man Sentenced for Methamphetamine TraffickingRead the Press Release
WICHITA, KAN. – A Dodge City man was sentenced today to 10 years in federal prison for methamphetamine trafficking, U.S. Attorney Stephen McAllister said.
Danny Del Real, 31, Dodge City, Kan., pleaded guilty to one count of distributing methamphetamine.
In October 2018, a confidential informant working with the Dodge City Police Department paid Del Real $5,000 to purchase approximately a pound of methamphetamine. When tested, the package contained the equivalent of about eight-tenths of a pound of pure methamphetamine.
McAllister commended the Dodge City Police Department, the Drug Enforcement Administration, the Kansas Bureau of Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
Doctor Selling COVID-19 “Cure” Charged with Lying to U.S. Customs, Stealing Employee’s IdentityRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 and Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – December 3, 2020
SAN DIEGO – Dr. Jennings Ryan Staley, previously charged with one count of mail fraud, was indicted by a federal grand jury yesterday for additional crimes arising from his business venture selling COVID-19 “treatment kits,” which he advertised to one potential customer as a “miracle cure.” Staley is a licensed physician and the former operator of Skinny Beach Med Spas in and around San Diego.
According to the new charges, which became publicly available today, Staley agreed with a Chinese supplier to smuggle hydroxychloroquine powder into the U.S., lying to U.S. Customs by mislabeling a shipment as “yam extract.” Staley is also charged with stealing the name and identifying information of one of his employees in order to create and submit a bogus prescription for hydroxychloroquine on the employee’s behalf, in order to sell the drugs at a markup to his customers.
In late March and early April 2020, Staley marketed and sold his treatment kits to Skinny Beach customers. He described his product as a “concierge medicine experience,” which included hydroxychloroquine—an anti-malarial drug that Staley described to one potential customer as a “guaranteed” cure for COVID-19. Staley’s kits were priced as high as $3,995 for a family of four, while Staley himself paid roughly $1 per tablet of hydroxychloroquine. Staley’s marketing materials, per the indictment, stressed that recipients should “NOT BELIEVE THE REPORTS THAT HYDROXYCHLOROQUINE DOESN’T WORK!”
During a phone call with a prospective customer, in reality an undercover FBI agent, Staley repeatedly promised that the drugs he was selling would cure COVID-19. According to the charging document, Staley said hydroxychloroquine “cures the disease,” and that it was “incredible,” a “magic bullet,” and an “amazing weapon.” When the undercover agent asked if hydroxychloroquine and mefloquine—another anti-malarial that Staley described as “the Russian cure”—would effectively cure someone infected with COVID-19, Staley replied, “One hundred percent. One hundred percent.”
One week later, when interviewed by FBI agents, the indictment alleges that Staley falsely denied ever saying that the Skinny Beach treatment packages were a “one hundred percent effective cure.”
“People must be able to trust their doctors to offer honest medical advice instead of a fraudulent sales pitch, especially during a global pandemic,” said U.S. Attorney Robert Brewer. “Medical professionals who lie about their treatments to profit from a desperate, fearful public will face criminal charges and serious consequences like any other lawbreaker.” Brewer praised prosecutors Nicholas Pilchak and Jaclyn Stahl as well as agents from the FBI and U.S. Food and Drug Administration, Office of Criminal Investigations, for their excellent work on this case.
“The FBI has been vigilant in investigating anyone trying to capitalize on the COVID-19 crisis,” said FBI Special Agent in Charge Suzanne Turner. “It's clear that trust in our medical professionals is always important, but particularly so in current times. These additional charges emphasize the FBI's dedication to fully uncovering the extent of Dr. Staley's alleged fraudulent actions and our unwavering commitment to pursuing those who put personal greed before humanity.”
The charging document outlines multiple ways that Staley obtained the hydroxychloroquine pills he resold as part of his treatment kits, including soliciting them from his acquaintances and employees with preexisting hydroxychloroquine prescriptions, and writing prescriptions for immediate family members and acquaintances to get the drugs “by any means necessary.” He even had plans to make his own tablets of hydroxychloroquine, using the mislabeled powder he planned to smuggle in from Chinese suppliers he found online.
Staley wrote one sham prescription, according to the superseding indictment, for a Skinny Beach employee. Staley had also asked the employee for a few tablets from her own hydroxychloroquine prescription, supposedly for another Skinny Beach staff member who was sick. Instead of borrowing a few of the employee’s tablets to help a suffering colleague as he had promised, however, Staley turned around and wrote a bogus prescription using her name, date of birth, and prior home address. Staley then took the sham prescription to multiple pharmacies to try to obtain hydroxychloroquine in the employee’s name, including by pretending to be her during the online ordering process.
Staley also lied to agents about the employee whose identifying information he had stolen, falsely claiming that she had allowed him to use her pre-existing medical condition to get hydroxychloroquine tablets that he would re-sell at a significant profit.
“The FDA continues its steadfast efforts to identify, investigate, and bring to justice those who attempt to profit from the pandemic by offering American consumers so-called ‘miracle cures’ to treat COVID-19,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to work with our law enforcement partners to bring to justice those who place profits above the public health.”
The superseding indictment also charges Staley with an importation crime, based on his agreement with a Chinese supplier to lie to U.S. Customs about a shipment that Staley believed contained 12 kilograms of hydroxychloroquine powder. As alleged, when the supplier volunteered to “change the product name to export” in order to get the product through U.S. Customs by “replac[ing] hydroxychloroquine export with yam extract,” Staley replied “Excellent,” and then suggested the same mislabeling technique himself to another potential supplier.
Staley later bragged to the undercover agent just days later that he “got the last tank of . . . hydroxychloroquine smuggled out of China Sunday night at 1:00 a.m. in the morning” by “saying it was sweet potato extract.” In truth, but unbeknownst to Staley, the shipment contained only baking soda.
As set out in the indictment, Staley also sought to raise money for his lucrative COVID-19 venture by soliciting investments. He told one potential investor that, if she contributed a minimum of $25,000, he would promise to repay “triple [her] money in 90 days.”
Staley’s next court date is December 17, 2020 at 11 a.m. before U.S. District Judge Gonzalo P. Curiel.
If you think you are a victim of COVID-19 fraud, immediately report it to the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800; the public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANT Case Number 20cr1227-GPC
Jennings Ryan Staley, M.D. Age: 44 Residence: San Diego, CA
SUMMARY OF CHARGES
Mail Fraud, in violation of Title 18, United States Code, Section 1341
Maximum Penalty: Twenty years in prison; fine; special assessment
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
False Statement, in violation of Title 18, United States Code, Section 1001
Maximum Penalty: Five years in prison; fine; special assessment
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A
Mandatory minimum two years in prison; fine; special assessment
AGENCIES
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Convicted Fraudster Charged in New Embezzlement SchemeRead the Press Release
BOSTON – A Canton woman who was previously convicted of embezzling more than $1.3 million from her former employer now faces new fraud charges.
Nicole Lescarbeau (a/k/a Nicole Coulibaly), 53, was arrested today and charged by criminal complaint with one count of bank fraud in connection with a new embezzlement scheme from a different employer. Lescarbeau will appear before U.S. Magistrate Judge David H. Hennessy this afternoon.
In December 2019, Lescarbeau pleaded guilty to wire fraud, bank fraud and aggravated identity theft and is scheduled to be sentenced on those charges on Dec. 9, 2020 before U.S. District Judge Richard G. Stearns.
As alleged in today’s charging document, while on pre-trial release for a prior case, Lescarbeau was hired as an administrator at a small, Brookline-based non-profit organization. Lescarbeau did not tell the non-profit about her pending indictment and applied for the position using her married name, Nicole Coulibaly, in an effort to conceal the federal charges. As administrator, Lescarbeau’s duties included assisting with certain financial transactions, including preparing checks as directed by the non-profit’s president.
From August 2019 until February 2020, Lescarbeau allegedly used her position to steal funds from the non-profit for her personal use. Specifically, Lescarbeau diverted checks to herself that the non-profit had issued for legitimate business by fraudulently altering the name of the payee on the checks and then depositing them into her personal bank account. It is also alleged that Lescarbeau opened an unapproved PayPal account in the non-profit’s name and made unauthorized transfers directly from the non-profit’s bank account to pay for her personal rent. In total, as a result of this scheme, Lescarbeau embezzled approximately $56,963 from the non-profit’s bank account.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant United States Attorney Justin D. O’Connell of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Sentenced to More Than Five Years in Federal Prison for Illegally Possessing Loaded Gun on Chicago StreetRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than five years in federal prison for illegally possessing a loaded handgun in the West Garfield Park neighborhood of Chicago.
LARRY CARADINE, 30, of Chicago, illegally possessed the firearm in the 4700 block of West Monroe Street on the afternoon of Oct. 26, 2018. Chicago Police officers observed Caradine drop the gun onto the ground. As an eight-time convicted felon, Caradine was not legally allowed to possess a firearm. Caradine was on parole at the time of the offense after recently serving a two-year sentence for a state narcotics conviction.
Caradine pleaded guilty to the federal charge last year. U.S. District Judge John Robert Blakey imposed a 63-month prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance.
“The possession of illegal weapons by convicted felons is contributing to the cycle of violence that continues on a daily basis in this city,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “Despite repeated criminal convictions and repeated sentences of imprisonment, the defendant continues to escalate his criminal behavior and continues to break the law.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Convicted Felon Sentenced to Additional Eight Months in Prison for Escape from Halfway HouseRead the Press Release
CAMDEN, N.J. – A convicted felon was sentenced today to an additional eight months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.
Gary Mitchell, 60, of Philadelphia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of escape. Judge Hillman imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On May 20, 2008, Mitchell was sentenced to 151 months in prison following his conviction for bank robbery in the District of New Jersey. On Feb. 5, 2018, Mitchell was transferred to the custody of Kintock Residential Re-entry Center, a halfway house in Bridgeton, New Jersey. On May 24, 2018, after failing to return after being issued a medical pass, Mitchell was charged with escape.
Mitchell was sentenced to today to serve an additional term of eight months in prison for the escape conviction, which will run consecutively to his original sentence for the bank robbery. As a result of his escape, he has lost an additional 425 days of good time credit, which he must now serve.
U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney Andrew Carey, Attorney in Charge of the Camden Office.
Columbus man sentenced to 200 months in prison for running Ohio-to-West Virginia drug operationRead the Press Release
COLUMBUS, Ohio – Solomon K. Gebretekle, 22, of Columbus, was sentenced in U.S. District Court today to 200 months in prison for distributing methamphetamine and heroin in and around Charleston, W.Va.
According to court documents, Gebretekle (also known as Diablo), regularly traveled from Ohio to West Virginia to sell narcotics to drug seekers there. After being arrested on a federal criminal complaint in January 2019, Gebretekle continued to direct the drug operation from jail.
In intercepted jail calls, Gebretekle gave specific instructions to a co-conspirator in order to further his drug business. In one jail call, Gebretekle threatens one of his narcotics customers regarding the explicit consequences he faced if the customer did not pay his drug debt to the defendant.
Gebretekle pleaded guilty in March 2020 to conspiring to possess with the intent to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin. He also pleaded guilty to a substantive count of possessing the more than 50 grams of methamphetamine.
Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Roland Herndon, Special Agent in Charge, U.S. Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence imposed today by U.S. District Court Judge Michael H. Watson. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case, and the Charleston, W. Va. DEA field office assisted in the investigation.
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Chinese Researcher Pleads Guilty to Making False Statements to Federal AgentsRead the Press Release
BOSTON – A Chinese national pleaded guilty today in federal court in Boston to making false statements in connection with his theft of 21 vials of biological research.
Zaosong Zheng, 31, pleaded guilty to one count of making false, fictitious or fraudulent statements. U.S. District Court Judge Denise J. Casper scheduled sentencing for January 6, 2021. According to the terms of the plea agreement, Zheng has agreed to a judicial order of removal from the United States after his sentencing hearing. Zheng was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint.
In August 2018, Zheng entered the United States on a J-1 visa and conducted cancer-cell research at Beth Israel Deaconess Medical Center in Boston from Sept. 4, 2018, to Dec. 9, 2019. On Dec. 9, 2019, Zheng stole 21 vials of biological research, hid them in his luggage, and attempted to take them out of the United States aboard a flight destined for China. Federal officers at Logan Airport discovered the vials hidden in a sock inside one of Zheng’s bags, and not properly packaged. When asked by federal officers whether he was traveling with any biological items or research, Zheng lied and answered “no.” Zheng later admitted he had stolen the vials from a lab at Beth Israel. Zheng stated that he intended to bring the vials to China to use them to conduct research in his own laboratory and publish the results under his own name.
The charge of making false, fictitious and fraudulent statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Denning, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office; and William Higgins, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement today. Assistant U.S. Attorneys Benjamin Tolkoff and Jason Casey of Lelling’s National Security Unit are prosecuting the case.
Chicago-Area Rappers Indicted in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – Six Chicago-area men have been indicted by a federal grand jury in Springfield with participating in a nationwide wire fraud and identity theft scheme that victimized businesses across the United States.
Antonio Strong, 28; Herbert Wright, 25; Demario Sorrells, 34; Steven Hayes, 28; Joseph Williams, 28; and Terrance Bender, all from the Chicago area, were charged in an indictment unsealed yesterday on one count of conspiracy to commit wire fraud. Strong is also charged with nine counts of aggravated identity theft; Williams is also charged with three counts of aggravated identity theft; Wright, Hayes, and Bender are also each charged with two counts of aggravated identity theft; and Sorrells is also charged with one count of aggravated identity theft.
On Sept. 14, 2020, Strong was arrested in Chicago and detained by a federal judge; on Nov. 24, 2020, Williams self-surrendered in Chicago and was released on bond; on Nov. 19, 2020, Sorrells and Hayes were arrested in Chicago and released on bond; on Dec. 2, 2020, Bender self-surrendered in Atlanta and was released on bond; and Wright self-surrendered today in the Central District of California. The defendants will make initial appearances in federal court in Springfield on Dec. 7, 2020.
According to the indictment, Strong is a promoter of rap artists, Wright is a rap artist known as “G Herbo,” and Williams is a rap artist known as “Rockstar Rodie.” From approximately March 2016 until the present, the defendants allegedly conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information to obtain valuable goods and services. Specifically, they purchased private jet charters, private yacht charters, exotic car rentals, luxury hotel and vacation rental accommodations, private chef and security guard services, designer puppies, limousine and chauffer services, commercial airline flights, consumer goods, and meals, among other things.
It is alleged that the defendants and their co-conspirators generally provided authentic payment card information, such as the actual cardholders’ names, addresses, payment card account numbers, security codes and account expiration dates, to defraud businesses and individuals who successfully processed the transactions and provided the goods and services. The actual cardholders discovered these transactions on their accounts and disputed the charges, resulting in payment card companies reversing payments and charging back the transactions to the businesses and individuals, who consequently suffered financial losses.
The wire fraud conspiracy and substantive wire fraud charges provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two years in prison consecutive to any other sentence imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Frederick Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case with Trial Attorneys Michelle Pascucci and Andrew Tyler of the Justice Department’s Criminal Division’s Fraud Section.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cambridge Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
BOSTON – A Cambridge man pleaded guilty today in federal court in Boston to child pornography offenses.
Robert Wharton, 31, pleaded guilty to one count of receiving child pornography and one count of possessing child pornography. U.S. District Court Chief Judge Dennis Saylor IV scheduled sentencing for April 2, 2021. Wharton was arrested and charged on July 30, 2020.
Federal investigators developed evidence that a user of the Kik messaging application had electronically transmitted funds to another individual in exchange for access to internet links containing child pornography. The investigation revealed that those funds originated from Wharton and that Wharton resided in an apartment in Cambridge. During a search of Wharton’s apartment, Kik messages that Wharton had exchanged with the person to whom he had sent funds were discovered. In addition, various images and videos depicting naked children were found on Wharton’s phone, including a pornographic video that Wharton had received via the Telegram messaging application; this video depicts a young child performing oral sex on an adult.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division made the announcement today. The Cambridge Police Department provided valuable assistance along with the Arlington, Newton and Revere Police Departments and the Massachusetts Department of Correction. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Butte County Resident Pleads Guilty in $35M Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Kenneth Winton, 67, of Oroville, pleaded guilty today to conspiracy to commit wire fraud in relation to a $35 million Ponzi scheme, U.S. Attorney McGregor W. Scott announced.
The indictment in the related case, United States v. Piercey, 2:20-cr-211 TLN, charges Matthew Piercey, 44, of Palo Cedro, with wire fraud, mail fraud, money laundering, and witness tampering.
According to court documents, between July 2015 and August 2020, Piercey carried out an investment fraud scheme that raised a total of approximately $35 million in investor funds. Piercey used investment companies Family Wealth Legacy and Zolla to solicit funds from investors using a variety of false and misleading statements, including about trading algorithms, the success of the companies’ investment strategies, and the liquidity of investments. For example, Piercey solicited investor money for an “Upvesting Fund” that allegedly was an algorithmic trading fund with a history of success, but he admitted privately to an associate that there was no Upvesting Fund.
Piercey first recruited Winton as an investor, then to assist with raising investor funds, and ultimately to take on management responsibilities at Zolla. From 2018 to 2020, Winton conspired with Piercey and made various false and misleading statements to investors, including about the success of Zolla’s investment strategies, the reasons for delays in payment to investors, and the current location, value, and nature of Zolla investments. The part of the scheme attributable to Winton caused investors to make investments or forego their right to withdraw investments totaling approximately $11.6 million.
Piercey and Winton used some investor money to make payments to other investors in a “Ponzi scheme.” In total, they paid back approximately $8.8 million to investors. They used other investor money for various business and personal expenses, including two residential properties and a houseboat. Few, if any, liquid assets remain to repay investors.
According to court documents, Piercey also tampered with multiple witnesses by discouraging them from responding to grand jury subpoenas related to the investigation.
Winton is out of custody pending his sentencing. Piercey is currently in custody. When law enforcement agents attempted to arrest Piercey, he fled from arrest by leading agents on a vehicle chase through residential neighborhoods and then onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Christopher S. Hales and Miriam R. Hinman are prosecuting the case.
Winton is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 18, 2021. Winton faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. If convicted, Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Piercey are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bridgeport Man Pleads Guilty to Bankruptcy Fraud OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ANTHONY FAUSTINI, 57, of Bridgeport, waived his right to be indicted and pleaded guilty today to making a false statement under oath in a bankruptcy matter.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Janet C. Hall occurred via videoconference.
According to court documents and statements made in court, on March 12, 2018, Faustini filed a personal Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the District of Connecticut. In the petition, Faustini noted that his unpaid debts were approximately $86,862. However, Faustini failed to disclose to the court that he knew that he was the beneficiary of a $100,000 life insurance policy held against the life of his mother. Nine days later, on March 21, 2018, Faustini’s mother passed away.
On April 18, 2018, Faustini testified under oath regarding his bankruptcy petition. In response to questioning from the Chapter 7 bankruptcy trustee, Faustini falsely indicated that he had listed all items of value in his petition, and he failed to mention his vested interest in the $100,000 life insurance policy. In response to a specific question as to whether “anybody died and left you any money,” Faustini responded “No.”
On June 20, 2018, the bankruptcy court entered an order granting Faustini a discharge of his debts. The next day, Faustini contacted the life insurance company to determine the status of the claim payment and to confirm that the company had his correct address. On June 26, 2018, the insurance company issued a check for $100,246 to Faustini.
The Office of the U.S. Trustee for the District of Connecticut subsequently received information about the life insurance payment made to Faustini and conducted a “Rule 2004” deposition examination of Faustini on June 5, 2019. During the examination, Faustini made several false statements, including that he had not known about the life insurance policy when he filed his bankruptcy petition, that did not find out about the policy until he received the check, and that he did not know how the insurance company knew to send the check to his address.
Judge Hall scheduled sentencing for February 25, 2021, at which time Faustini faces a maximum term of imprisonment of five years. Faustini also has agreed to pay restitution of $64,955, which accounts for funds collected from Faustini after the fraud was identified.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Bowling Green man charged with stealing and selling firearmsRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Toledo has returned a two-count indictment charging Steven Leskow, 30, of Bowling Green with one count of possession of a firearm by someone who is an unlawful user of, or addicted to, a controlled substance and one count of possession of stolen firearms.
According to the indictment, from October through December of 2019, while enrolled as a student at Owens Community College in Findlay, the defendant is accused of stealing several firearms from a law enforcement class. It is alleged that the defendant stole these firearms and sold them to support a drug addiction.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
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 and the Bureau of Alcohol Tobacco and Firearms. The case is being prosecuted by Assistant U.S. Attorney Matthew D. Simko.
Boston Man Sentenced for Firearms OffenseRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for conspiring to deal firearms illegally.
Charles A. Slayden Jr., 26, was sentenced by U.S. District Court Judge Denise J. Casper to 15 months in prison and three years of supervised release, during which time he will be subject to associational and geographic restrictions. In August 2020, Slayden pleaded guilty to one count of conspiracy to deal in firearms without a license. In June 2019, Slayden was charged along with co-defendant Levenson Merilus, 29, of Randolph, who previously pleaded guilty and is scheduled to be sentenced on Feb. 11, 2021.
Slayden and Merilus conspired to purchase firearms from a licensed dealer and re-sell them for profit to individuals in Boston. In furtherance of this conspiracy, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Berryville Man Pleads Guilty to Illegal Possession of a Firearm, Distribution of CocaineRead the Press Release
HARRISONBURG, Va. – A Berryville, Virginia man pleaded guilty today to a pair of federal firearm and narcotics charges. He fled police following a traffic stop in January 2020 and was found in possession of a loaded Smith & Wesson 9 mm semi-automatic pistol and a cache of narcotics secreted in a storage unit. Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Jesse Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division made the announcement today.
Cironta Commander, 22, pleaded guilty today to one count of possession of a firearm by a convicted felon and one count of possession with the intent to distribute and distributing 28 grams or more of cocaine base.
According to court documents, on January 27, 2020 an officer with the Berryville Police Department initiated a traffic stop of Commander. As the officer returned to his cruiser to investigate a potential discrepancy in Commander’s paperwork, Commander sped from the scene at a high rate of speed. When the defendant approached an intersection, he failed to stop at a stop sign and drove into a grassy area between an apartment building and a tree, where there were people present in the common area. As the defendant reentered the roadway, he drove toward a dead end and crashed into a tree.
Commander attempted to flee the scene on foot while carrying a backpack but was detained. In a search of the backpack, officers found a loaded Smith & Wesson, 9mm, semi-automatic pistol containing five rounds of ammunition. In addition, officers found approximately 3.66 oz. of marijuana, $4,738 in cash, a bundle of clear plastic bags commonly used for narcotics distribution, and a small plastic bag of white powder with 2.19 grams of powder cocaine. At the time of his possession of the firearm, Commander was a previously convicted felon prohibited from legally possessing a firearm.
Local police and federal agents executed a search warrant at the defendant’s residence in Berryville, Va., on February 3, 2020. In the basement of the residence, officers found three rifles and $4,392. In the closet in the master bedroom, agents located a shoebox with an additional $11,000 in cash.
Additionally, during the search of a Cadillac Escalade parked in the driveway, agents recovered an access card for a storage unit in Stephens City, Virginia. Agents went to that location and learned the unit had only been leased following Commander’s arrest. After obtaining a search warrant of the location, agents recovered a variety of narcotics, including 191.64 grams of fentanyl, 32.96 grams of heroin, 349.47 grams of powder cocaine and 181.83 grams of cocaine base.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Berryville Police Department and the Office of the Clark County Commonwealth’s Attorney. Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
Bergen County Man Admits Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
Dennys A. Tapia, 54, of Ridgefield Park, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From 2015 to 2018, Tapia conspired with others to fraudulently obtain mortgage loans from financial institutions, including “Mortgage Lender A” and “Mortgage Lender B,” to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.
Tapia admitted to participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Tapia also admitted to conspiring with a straw borrower, “Individual A,” to submit an application to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.
The conspiracy charge to which Tapia pleaded guilty carries a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 20, 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, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.
Bend Resident Sentenced to Seven Years in Federal Prison for Child PornographyRead the Press Release
EUGENE, Ore.—A Bend, Oregon resident was sentenced to federal prison today for possessing and distributing child pornography, chatting online about having sex with minors, and engaging in a campaign of online harassment and threats, announced U.S. Attorney Billy J. Williams.
Pierce Matthew Morrow, 25, was sentenced to 87 months in federal prison and ten years’ supervised release.
“The pursuit of individuals who post sexual images of children online is one of our highest priorities”, said U.S. Attorney Billy J. Williams. “There was significant emotional harm inflicted by this defendant on the people he pursued, harassed and impersonated and the children whose images he posted online.”
"This case is disturbing. Morrow's relentless, aggressive, and threatening behavior toward his victims - locally and in other parts of the country - shows the depths to which he would go to hurt others," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "If you are a victim of a sexual predator or sextortion scheme, please reach out to us. We want to help you and protect other potential victims."
According to court documents, during the period of July 2017 to January 2018, Morrow participated in the “Kid Porn Trade” Kik group, whose members posted images, videos and links containing child pornography. Morrow started Kik and Grindr chats by sharing an image of a 12-16 year old nude boy – who Morrow sometimes pretended to be in order to bait the other person. Using his knowledge of his peers from growing up in Bend, Morrow harassed multiple people online, sometimes managing to acquire nude images of them and making threats to obtain more.
Morrow openly assumed the identity of another person in making online threats, resulting in a victim believing that person, not Morrow, was harassing them. Morrow’s victims made reports and complaints to the police and to social media providers about the continuous threatening messages. Morrow skillfully inflicted harm on others, preying on young men’s fears and vulnerabilities, embarrassing them, threatening them, exposing and hurting them.
In a January 2018 chat between Morrow and a young adult male, Morrow sent unsolicited images of child pornography and encouraged the other man to consider sex with children. Morrow mixed child pornography with online stalking, solicitation and enticement of others with similar interests.
On July 1, 2020 Morrow was charged by criminal information with distributing child pornography, and on September 2, 2020 Morrow pleaded guilty to the charge.
The FBI investigated this case. It was prosecuted by Jeff Sweet, Assistant U.S. Attorney for the District of Oregon.
Bend Resident Sentenced for Conspiracy to Manufacture and Distribute MarijuanaRead the Press Release
EUGENE, Ore.—A Bend, Oregon resident was sentenced to 36 months’ imprisonment today for running an illicit Butane Honey Oil (BHO) extraction lab on rural Bend property, announced U.S. Attorney Billy J. Williams.
Sean Paul Wyrsch, 32 years old, was sentenced to 3 years in federal prison and 3 years’ supervised release. This sentencing follows the sentencing of his brother and co-defendant Jacob Genaro Robe, on October 27, 2020, who also received a sentence of three years imprisonment.
According to court documents, Wyrsch and his brother created a vertical operation growing marijuana, manufacturing BHO and distributing it in other states for significant profit. On March 27, 2018, an Oregon State Police trooper stopped Jacob Robe for a traffic violation near Klamath Falls, Oregon. The officer recognized signs of drug trafficking and eventually located more than $20,000 in cash, BHO, and hallucinogenic mushrooms.
The Central Oregon Drug Enforcement Team had previously received information regarding defendant and his brothers having a BHO lab and selling BHO in other states, and detectives served a search warrant on the brothers’ rural property in Bend, Oregon. Also found were freezers with marijuana, drying racks with sheets of BHO and jars with their logo “THE BHOys.”
In an unattached two-story structure approximately 179 large, mature, marijuana plants were located along with around 280 starter plants. Law enforcement located an indoor marijuana grow with hundreds of plants, a closed-loop BHO lab, 18 pounds of BHO, 200 pounds of marijuana and thirteen firearms..
On November 25, 2019 Wyrsch was charged by information, and on January 29, 2020 pleaded guilty to conspiracy to manufacture and distribute marijuana.
The Drug Enforcement Administration, Central Oregon Drug Enforcement Team and Oregon State Police investigated this case. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, and the Deschutes County District Attorney’s Office.
Augusta Man Pleads Guilty in Columbus Child Sexual Abuse CaseRead the Press Release
COLUMBUS, Ga. – An Augusta man is facing a maximum life imprisonment after pleading guilty to coercion and enticement of two Columbus minors today, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Todd Matthew Jones, 27, of Augusta, Georgia pleaded guilty to two counts of coercion and enticement of a minor before U.S. District Judge Clay Land. Each count carries a mandatory minimum sentence of 10 years in prison up to a maximum of life imprisonment, a $250,000 fine and a term of supervised release of not less than five years up to lifetime supervision. Jones will be sentenced on February 24, 2021 at noon. There is no parole in the federal system.
According to the plea agreement, Jones, pretending to be a teenager, met a 13-year-old middle school male, “John Doe,” on the social media app Snapchat. Jones proceeded to send the victim sexually explicit photos of himself and encouraged John Doe to do the same, which he did. Following a series of additional Snapchat conversations, the defendant traveled to Columbus to meet John Doe. The victim told investigators he was hoping Jones would purchase a vaping kit for him, but instead sexually abused him. John Doe’s mother discovered the relationship and Jones was taken into custody on December 1, 2018. John Doe told investigators that the defendant told him he sold “boy porn” online. During the investigation, agents found a second victim, a 16-year-old female minor, “Jane Doe,” who also said she met the defendant on Snapchat and would sneak out of her home to meet the defendant. The female victim was encouraged to, and did, send sexually explicit photos of herself to the defendant.
“Jones is a manipulative child predator who has gravely harmed vulnerable youth. He will face the consequences for his crimes,” said U.S. Attorney Peeler. “I hope this case reinforces the importance for all parents to remain vigilant about the dangers on social media, and how quickly and easily young people can be tricked and enticed into an abusive, destructive relationship. I encourage all citizens to report suspicious online activity to the authorities. I want to thank the Columbus Police Department and the FBI for their work in this case.”
“The facts of this case are disturbing and demonstrate how a sexual predator can easily use social media apps to victimize innocent children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a top priority to hold child predators accountable for their heinous crimes and educate the community about the dangers of communicating with strangers on the internet.”
The case was investigated by the Columbus Police Department’s Special Victims Unit and the FBI. Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Armed Bank Robber Is Sentenced to 14 Years in Prison on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Alvin James Pierce, 59, of Charlotte, was sentenced today to 168 months in prison on gun charges in connection with two armed bank robberies he committed earlier this year in the Charlotte area, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also sentenced Pierce to five years of supervised release and ordered him to pay $4,500 as restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on February 18, 2020, Pierce entered the Fifth Third Bank located at 1720 Oakdale Road in Charlotte. After he approached the counter, Pierce pulled out a small handgun and demanded $100 bills. The teller complied and Pierce fled the scene with $8,400. CMPD officers located Pierce’s getaway vehicle and he was apprehended shortly thereafter. Court records show that, over the course of the investigation, law enforcement determined that Pierce was also responsible for the January 7, 2020, armed bank robbery of a Fifth Third bank at 5605 77 Center Drive in Charlotte. During that incident, Pierce approached the counter, pointed a gun at the teller and a customer and demanded money, threatening to shoot the customer if the teller did not comply with his demands. The teller gave Pierce $4,500 in $100 bills.
On August 28, 2020, Pierce pleaded guilty to two counts of possession and brandishing of firearm in furtherance of a crime of violence. Pierce is in federal custody and upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons.
The investigation was handled by the FBI and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte.
Alleged Drug Kingpin from Nebraska Arrested After Having Assumed Another’s Identity for More Than 35 YearsRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Howard D. Farley, Jr. (72, Weirsdale) with passport fraud. Farley was arrested on December 2, 2020. If convicted, he faces a maximum penalty of 10 years in federal prison.
According to the complaint, in or around February 2020, Farley submitted a passport application using the name, date of birth, and Social Security number of an individual who had died as an infant in 1955. When applying for this passport, Farley failed to disclose his true identity.
In 1985, Farley, along with 73 others, was indicted by a federal grand jury in the District of Nebraska and charged with a narcotics conspiracy. Farley was alleged to be the “drug kingpin” of the Southern Line, a railroad line that was used by the drug dealers to distribute narcotics throughout the United States. Records show that Farley was the only defendant not apprehended in the case, and that he instead assumed the identity of the deceased individual in 1985, and remained a fugitive for more than 35 years.
On December 2, 2020, Farley was arrested at his home on a federal warrant for this complaint under the name “John Doe.” A fingerprint comparison confirmed that he was Howard D. Farley, Jr., the same person wanted in Nebraska since 1985. At the time of his arrest, Farley was attempting to board his private aircraft in the hangar at his home, which he flew using a fraudulent pilot’s license in the name of deceased individual. During the execution of a search warrant, authorities recovered a firearm from inside Farley’s home. Farley was convicted in 1970 of burglary in Nebraska state court.
A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.
This case is being investigated by the U.S. Department of State’s Diplomatic Security Service, the Department of Transportation - Office of Inspector General, the Social Security - Administration Office of the Inspector General, and with support from the Ocala Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security, the Florida Highway Patrol, and the Marion County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Alerta De Fraude: Estafadores Que Se Hacen Pasar Por Representantes De Compañías De CelularesRead the Press Release
SAN JUAN, P.R. - El Servicio Secreto de los Estados Unidos (Servicio Secreto) ha recibido varias denuncias sobre individuos que se hacen pasar por representantes de servicio al cliente de compañías locales de celulares. Estos individuos están llamando al público como parte de un esquema de fraude para recibir información personal y financiera, anunció el Fiscal Federal W. Stephen Muldrow. La Fiscalía Federal de los EE.UU. para el Distrito de Puerto Rico exhorta al público a permanecer alerta y no proveer información personal o códigos de acceso en estas llamadas.
Las denuncias recibidas por el Servicio Secreto indican que estos estafadores se hacen pasar por empleados de la compañía de celulares e intentan obtener la información personal del receptor de la llamada ofreciéndoles un descuento a aquellos que se registren para pago automático a través de ATH Móvil. El cliente recibe una llamada en la que le indican que el proveedor de servicios esta actualizando la red de 3G a 5G y también le ofrecen un descuento en su factura si usan ATH Móvil. Luego, les dicen a los clientes que para poder recibir el descuento tienen que confirmar la información de su cuenta.
Estando en la llamada, el estafador envía un código de autentificación desde la página de internet de la compañía al cliente. Luego, el estafador le pide al cliente que confirme verbalmente el código diciendo que necesita confirmar la identidad del cliente antes de proceder a discutir la información de la cuenta. Una vez que el cliente provee el código, el estafador obtiene acceso a la cuenta que tiene el cliente con la compañía. En este punto ya el estafador tiene control de la cuenta del cliente y fraudulentamente pide que el cliente provea su información de ATH Móvil. Luego le dicen a los clientes que deben apagar sus celulares para que se puedan completar los cambios en la cuenta. En este tiempo, los estafadores transfieren fondos a distintas cuentas de banco en Puerto Rico y fuera de la jurisdicción o hacen compras fraudulentas utilizando la información del cliente.
Exhortamos a aquellos que reciban este tipo de llamadas a no proveer información personal o códigos de acceso en estas llamadas. El público puede reportar estas estafas al Servicio Secreto llamado al 787-277-1515.
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5 Current/Former MTA Employees Charged with Extensive Overtime FraudRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Carolyn Pokorny, Inspector General of the Metropolitan Transportation Authority (“MTA OIG”), announced today the unsealing of complaints charging THOMAS CAPUTO, JOSEPH RUZZO, JOHN NUGENT, and JOSEPH BALESTRA, four current and former longtime employees of the Long Island Rail Road (“LIRR”), and MICHAEL GUNDERSEN, a longtime employee of the New York City Transit Authority (“NYC Transit”), with federal program fraud for submitting time reports falsely claiming to have worked hundreds of hours of overtime that they did not in fact work. CAPUTO, RUZZO, NUGENT, and BALESTRA were charged in a criminal complaint unsealed today (the “LIRR Complaint”), and GUNDERSEN was charged in a separate criminal complaint unsealed today (the “NYC Transit Complaint”). CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN are expected to be presented this afternoon before U.S. Magistrate Judge Katharine H. Parker.
Acting U.S. Attorney Audrey Strauss said: “These defendants, senior LIRR and New York City Transit employees, allegedly made themselves some of the highest-paid employees at the entire MTA by claiming extraordinary, almost physically impossible, amounts of overtime. As alleged, those almost impossible claims were fueled by brazen, repeated fraud, including falsely claiming to be working overtime hours while the defendants were at their homes or, in some instances, bowling. All New Yorkers ultimately bear the burden of fraud targeting our mass transit systems, and we will continue to work tirelessly to expose and prosecute those who engage in it. Our investigation remains ongoing.”
FBI Assistant Director William F. Sweeney Jr. said: “Today we’ve arrested five individuals, all senior MTA employees, for their role in an incredibly blatant overtime fraud scheme. In the case of at least one defendant, the excessive compensation he received from the MTA was equivalent to purportedly working 10 additional hours a day, every day, for 365 days. The others weren’t far behind, collectively earning more than $1 million in overtime pay. This type of double-dealing directly contributes to rising MTA fares for the average, hardworking commuter. Today these individuals learned the end of this line is the federal courthouse here in Lower Manhattan. If you or someone you know has additional information regarding this case, we want to hear from you. You may reach us by calling 1-800-CALL-FBI.”
MTA Inspector General Carolyn Pokorny said: “These employees allegedly worked very hard – to steal MTA time and money, ignoring their duty to keep the tracks and rails safe for their fellow workers and riders. For MTA employees who earn hundreds of thousands of dollars a year, it takes some nerve to steal overtime by only working a fraction of your shift – if at all. The situation underscores what our Office has been saying, again and again – the lack of management systems and controls at the MTA creates an environment where fraud could easily occur undetected – and it did, as alleged in these criminal complaints. When employees are on the clock, management needs to know that they are actually working, and not – say, enjoying concerts in Atlantic City, vacationing at resorts, or competing in a bowling league. In grateful cooperation with our law enforcement partners at the Office of the U.S. Attorney for the Southern District of New York and the FBI, MTA OIG continues to probe how these defendants allegedly succeeded in stealing so much overtime.”
According to the allegations in the LIRR Complaint and the NYC Transit Complaint (the “Complaints”):[1]
CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN each schemed to fraudulently receive thousands of dollars in compensation from the MTA by falsely claiming to have worked hundreds of voluntary overtime hours (and in the case of GUNDERSEN some regular time hours as well) that in fact they did not work. The overtime pay the defendants claimed led to significant increases in their salary and led to them being among the highest-paid MTA employees, and in the case of CAPUTO, the highest-paid MTA employee in 2018. The defendants frequently volunteered for overtime and then claimed to have been working lucrative overtime shifts at times when they were in fact at home or at other non-work locations, such as, in the case of CAPUTO, a bowling alley, or in the case of GUNDERSEN, family vacations.
The Defendants’ Employment at the MTA
The MTA runs North America’s largest transportation network, providing bus, subway and rail service to a population of more than 15 million people in New York City and the surrounding areas. The MTA’s operating agencies include the LIRR, a commuter railroad providing service between Manhattan and locations on Long Island, and NYC Transit, which operates New York City subways and buses.
CAPUTO, RUZZO, NUGENT, and BALESTRA are current or former LIRR employees. CAPUTO was an LIRR employee responsible for track inspection until he retired on or about April 1, 2019. RUZZO, who retired on or about October 1, 2019, and NUGENT and BALESTRA, who are still employed by LIRR, were all LIRR foremen during the relevant period.
In addition to their regular duties, CAPUTO, RUZZO, NUGENT, and BALESTRA each volunteered to work and were assigned a number of lucrative overtime shifts during which they were required to, among other things, support third-party contractors working on construction projects on or around LIRR properties. These voluntary overtime shifts were offered to LIRR employees in order of their seniority under the applicable union collective bargaining agreements, enabling CAPUTO, RUZZO, NUGENT, and BALESTRA to be assigned large numbers of voluntary overtime shifts due to their seniority.
GUNDERSEN is a current NYC Transit employee. Since in or about 2015, GUNDERSEN has been a Maintenance Supervisor Level II, which requires him to, among other things, provide managerial-level oversight and support of Third Rail Contract Compliance and Circuit Breakers.
At all relevant times, CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN received hourly rates for their regular schedule, and were then entitled to be paid higher “overtime” rates – typically one and a half or two times the regular hourly rate, depending on the circumstances – for additional hours worked. At all relevant times, CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN were required to self-report their time.
The Defendants’ Excessive Overtime Claims
In 2018, CAPUTO was paid approximately $461,000 by the MTA. Of that amount, approximately $117,000 comprised his base salary and other forms of compensation apart from overtime, while the additional approximately $344,000 was paid for overtime that CAPUTO ostensibly worked. In total, this made CAPUTO the highest paid employee at the MTA during 2018 – higher than, for example, the Chairman of the MTA.
In 2018, CAPUTO claimed to have worked approximately 3,864 overtime hours, on top of 1,682 regular hours. That is, if CAPUTO had worked every single calendar day in 2018 including weekends and holidays (although he did not), that would average out to approximately 10 hours of overtime every day for an entire year in addition to his regular, 40-hour work week.
Similarly, RUZZO, NUGENT, BALESTRA, and GUNDERSEN also claimed to have worked and were paid for an excessive number of overtime hours in 2018. Each of them was paid over $240,000 in overtime alone, putting each of them within the top 12 highest paid employees at the MTA during 2018. These payments were based on reported amounts of overtime hours ranging from 2,918 to 3,914, which if the defendants had worked every calendar day in 2018 would average out to approximately 8 to 10 hours for every single day, in addition to the employee’s regular 40-hour work weeks.
The Defendants’ Frequent Absences from Work
Staffers from the Office of the MTA Inspector General (“MTA OIG”) have worked with criminal investigators to perform a detailed review of the hours claimed to have been worked by the defendants in or around calendar year 2018. This investigation, among other things, compared the time records for CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN with various records that established their true whereabouts, such as location information for their cellular phones, bank records, MTA building access card data, work and personal emails and social media records, and records from third parties such as a bowling alley where CAPUTO participated in bowling league games despite claiming to work an average of 10 hours of overtime every single day of 2018.
In sum, the MTA OIG’s investigation reflects that CAPUTO, RUZZO, NUGENT, BALESTRA, and GUNDERSEN were each absent from work for hundreds of hours, for which they falsely claimed to have been present and worked in time reports submitted to the MTA. As a result, each received at least thousands of dollars in unjustified and fraudulently obtained compensation.
For example, CAPUTO claimed to have worked, and was paid for, a regular shift from 7:30 a.m. to 3:30 p.m. on October 11, 2018, followed by an overtime shift at the West Side Yard in Manhattan (the site of a construction project in the vicinity of West 34th Street near the Hudson River) from 4:00 p.m. until 7:00 a.m. on October 12. However, CAPUTO’s phone records revealed that CAPUTO made several calls while in the vicinity of his residence in Suffolk County during his overtime shift on October 11, and records maintained by a bowling alley in Suffolk County revealed that he participated in a bowling league game beginning at 7:30 p.m. that night – i.e., hours into his shift.
Similarly, GUNDERSEN claimed to have worked, and was paid for, back-to-back overtime shifts from 4:00 a.m. on September 29, 2018 to 12:00 a.m. on September 30, 2018, and was paid for 20 hours of overtime during that period. GUNDERSEN did not use any vacation time for this period, instead claiming in his time reports to be at work. However, several weeks later, GUNDERSEN sent himself an email attaching three photographs with metadata showing the images were taken at 3:05, 3:28, and 3:30 p.m. on September 29, 2018 – i.e., in the middle of the shifts described above. These photographs (one of which was posted to GUNDERSEN’s wife’s Facebook account) show GUNDERSEN and his family at a farm in Manalapan, New Jersey. GUNDERSEN’s telephone records reflect that he engaged in two phone calls from the vicinity of Manalapan at 1:09 p.m. and 4:07 p.m. on September 29, 2018, also in the middle of the overtime shifts he claimed to have worked.
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THOMAS CAPUTO, 56, of Holbrook, New York, JOSEPH RUZZO, 56, of Levittown, New York, JOHN NUGENT, 50, of Rocky Point, New York, JOSEPH BALESTRA, 51, of Blue Point, New York, and MICHAEL GUNDERSEN, 42, of Manalapan, New Jersey, are each charged with one count of federal program fraud, which carries a maximum sentence of 10 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and MTA OIG, and encouraged anyone with any information regarding overtime fraud or abuse at the MTA to contact the MTA OIG at 800-MTA-IG4U (800-682-4448), online at mtaig.state.ny.us/ComplaintForm.aspx, or via email at [email protected].
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Monteleoni, Aline R. Flodr, and Thomas A. McKay are in charge of the prosecution.
The allegations contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.