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Tuesday 6 October 2020
Hammond Woman Ordered to Pay $381,759 in RestitutionRead the Press Release
HAMMOND-Tracy Cox, 52, of Hammond, Indiana, was sentenced by United States District Court Judge Philip P. Simon upon her guilty plea to wire fraud, announced U.S. Attorney Kirsch.
Ms. Cox was sentenced to 24 months in prison, 2 years of supervised release and ordered to pay $381,759 in restitution
According to documents in the case, between May of 2011 and July of 2018, Ms. Cox used her position at a Gary, Indiana trucking company to defraud her employer. She diverted over $381,759 for her own use by creating approximately 400 unauthorized transfers. She devised a scheme in which she entered the payment system and authorized a series of check numbers to make them available for use by truck drivers. She then obtained the authorization codes for the checks, made them payable to herself, and filled in the dollar amount or obtained a cash advance. To cover her scheme, Ms. Cox altered years of bank statements to hide the true balances.
“When an employee takes advantage of an employer’s trust to steal for the employer, the consequences can have a trickle-down effect for the employer and the other employees, costing jobs and causing economic hardship,” said United States Attorney Thomas L. Kirsch II. “My Office is dedicated to prosecuting fraud schemes like this and will continuously work with our law enforcement partners on these investigations.”
“Abusing the trust of your employer to further your own selfish and fraudulent scheme will not be tolerated by the FBI,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI takes our responsibility to identify and investigate those who would perpetrate these illegal activities seriously and will ensure they are held accountable.”
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Philip C. Benson.
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Hamilton pain clinic owner sentenced to 7 years in prisonRead the Press Release
CINCINNATI – The owner and operator of a Hamilton pain clinic was sentenced in U.S. District Court today for illegally distributing controlled substances, committing health care fraud and violating the anti-kickback statute.
Nilesh Jobalia, 55, of Cincinnati, was sentenced to 84 months in prison and ordered to pay nearly $2.2 million in restitution to Medicaid, Medicare and the Bureau of Workers’ Compensation.
According to court documents, Jobalia owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not licensed as such, it operated almost exclusively as a pain clinic.
Patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor.
“Prescribing controlled substances outside the usual course of professional practice and for illegitimate medical purposes is illegal,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “This defendant’s actions put the health and safety of his patients at risk and further exacerbated the ongoing opioid epidemic. The OIG will continue to work with our law enforcement partners to ensure that individuals who that engage in this illegal behavior are held accountable.”
“He was a dope dealer with a white coat and a license, and now he has neither,” Ohio Attorney General Dave Yost said. “He shares responsibility for the misery of addiction and death that we call by the clinical name of the opiate crisis, and I am glad to support the work of the United States Attorney in bringing him to justice.”
Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions and services not rendered.
For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs. In total, Jobalia caused more than $2 million in false claims.
Jobalia also received more than $103,000 from a pharmaceutical company for purported speaking engagements about a fentanyl spray, a medication intended for breakthrough cancer pain.
The speaking engagements were actually sham programs, though, in which many attendees were not medical professionals permitted to prescribe the fentanyl spray. Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area.
Jobalia was indicted by a federal grand jury in June 2018 and pleaded guilty in September 2019.
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; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; and Stephanie B. McCloud, Administrator, Ohio Bureau of Workers Compensation, announced the sentence imposed by U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case.
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Grand Jury Indicts Niagara Falls Man on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Andrew Medina, 29, of Niagara Falls, NY, with conspiring to possess with intent to distribute, and distributing, 500 grams or more of methamphetamine; attempting to possess with intent to distribute 500 grams or more of methamphetamine; possession of marijuana; possession of a firearm in furtherance of drug trafficking crimes; and being a felon in possession of a firearm and ammunition. The charges carry a mandatory minimum penalty of 10 years in prison, and a maximum of life.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the indictment and a previously filed complaint, on September 1, 2020, a United States Postal Inspector executed a federal search warrant on a parcel, which contained approximately 1.14 pounds of suspected methamphetamine. On September 4, 2020, a controlled delivery of the parcel was conducted to a residence on South Avenue in Niagara Falls. Shortly after it was dropped off on the porch of the South Avenue address, an individual, later identified as the defendant, retrieved the package, got into a vehicle, and departed the residence with a small child.
After Medina returned to the residence a short time later, a monitoring device, which had been placed in the parcel, sent an alert that the parcel was opened inside of the residence. Subsequently, a search warrant was executed at the residence. Investigators recovered a pistol with a loaded magazine and approximately $15,000 of U.S. currency, and Medina was arrested.
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was detained.
The indictment is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Four Union County Men Arrested in Scheme to Steal Mail, Commit Credit Card Fraud and Defraud the United StatesRead the Press Release
NEWARK, N.J. – Four Union County, New Jersey, men were arrested today for their roles in a conspiracy to steal mail and possess stolen mail, including credit cards and pandemic relief credit cards, fraudulently use the stolen credit cards without authorization, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Craig Carpenito announced.
Jarid Brooks, 27, Justin Brooks, 21, Kyjuan Hutchins, 21, and Kyle Williams, 35, all of Vauxhall, New Jersey, are charged by complaint with conspiracy. They are scheduled to appear by this afternoon by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
From July 2019 to August 2020, Williams allegedly stole credit cards from the U.S. mail in the course of his employment for the U.S. Postal Service, provided those credit cards to Jarid Brooks, Justin Brooks, and Hutchins, and the defendants thereafter fraudulently activated those credit cards and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization, including buying gift cards and electronics. The investigation to date has revealed that the victims have incurred over approximately $80,000 in intended and actual loss from fraudulent purchases made using their stolen credit cards. The defendants also schemed to fraudulently use over $11,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act that were stolen from the mail.
The conspiracy charge is punishable by a maximum penalty of five years in prison and a maximum fine of $250,000.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrests. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Teacher Pleads Guilty to Sexually Exploiting StudentRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man who worked as a teacher in China has pleaded guilty in federal court to sexually exploiting one of his former students by attempting to blackmail her into sending him pornographic images.
Curtis J. Baldwin, 47, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush on Monday, Oct. 5, to one count of the sexual exploitation of a minor and one count of receiving and distributing child pornography.
Baldwin worked as an English language teacher in China for EF Education First. Baldwin left his employment at the company on Nov. 20, 2019. After he returned to Springfield, he contacted a 12-year-old former student, identified in court documents Jane Doe, via the WeChat application. Baldwin told Jane Doe he had video footage that showed her engaged in sexually explicit conduct, and threatened to post the video on the internet unless she sent him images and a video of herself engaged in sexually explicit conduct. Jane Doe’s father saw the WeChat messages and contacted authorities at the language school, who relayed the information to the FBI for investigation.
On March 10, 2020, federal agents executed a search warrant at Baldwin’s residence. Multiple items were seized, including Baldwin’s Apple MacBook Pro, which contained files of child pornography, including multiple videos of minor Chinese females engaged in sexually explicit conduct.
Under federal statutes, Baldwin is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Stony Brook University Professor Sentenced to Prison for Stealing Cancer Research FundsRead the Press Release
Geoffrey Girnun, a former Associate Professor and cancer researcher at Stony Brook University’s Department of Pathology of Medicine, was sentenced today by United States District Judge Denis R. Hurley via videoconference to one year and a day in prison for theft of government funds related to a grant he received to research the effect of certain molecules on cancer. Girnun pleaded guilty in January 2020 and pursuant to his plea agreement agreed to forfeit $225,000 and resign from his position at Stony Brook University. The Court also ordered restitution to be paid to the National Institutes of Health (NIH) and Stony Brook University in the amount of $225,000.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentence.
“The defendant’s theft of cancer research funds undermined the important mission of the National Institute of Health, Stony Brook University and his fellow researchers, who are dedicated to curing this deadly illness,” stated Acting United States Attorney DuCharme. “In connection with today’s sentence, which provides punishment for his offense, the defendant also will be required to pay back every penny he diverted from the fight against cancer.”
“Stealing cancer research funds solely to line your own pockets is an outrageous crime. Today’s sentence demonstrates that society will not tolerate fraudsters like Dr. Girnun, who will pay for his greed-fueled scheme,” stated HHS-OIG Special Agent-in-Charge Lampert. “We will continue to work with our law enforcement partners to investigate such fraud and bring perpetrators to justice.”
In approximately 2013 and 2017, respectively, Girnun formed two sham companies, Atlas Metabolomics, LLC (Atlas) and Empyrean Biosciences, LLC (Empyrean) that purportedly provided research items and equipment for the defendant’s cancer-related research projects. From approximately December 2013 to approximately September 2019, Girnun submitted fraudulent electronic invoices to Stony Brook University for payment to the sham companies for equipment, goods and services that were never received or provided. Stony Brook University then used NIH and the university’s grant and foundation funds to pay the sham companies over $200,000. Girnun withdrew the fraudulently obtained grant funds from Atlas and Empyrean’s bank accounts and used the money for personal expenses, including payments toward the mortgage on his residence and tuition for his children.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Erin E. Argo is in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
GEOFFREY GIRNUN
Age: 49
Woodmere, New YorkE.D.N.Y. Docket No. 19-CR-416 (DRH)
Former Office Manager Charged with Stealing from Auto DealershipRead the Press Release
WICHITA, KAN. – Corrine N. Bowman, 41, Medicine Lodge, Kan., is charged with one count of bank fraud. The crime is alleged to have occurred from 2017 to 2019 in Medicine Lodge.
The indictment alleges Bowman, who was working for Bowe Chevrolet, used company funds to pay expenses for her and her family.
If convicted, she could faces up to 30 years in federal prison and a fine up to $1 million. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
OTHER INDICTMENTS
Dennis Tapscott, 23, Emporia, Kan., former contract driver for the U.S.Postal Service, is charged with one count of delaying mail. The crime is alleged to have occurred in 2019 and 2020 in Lyon County, Kan, and other counties.
The indictment alleges Tapscott opened and destroyed mail containing cash.
If convicted, he faces up to a year in federal prison and a fine up to $100,000. The U.S. Postal Service Inspection Service investigated. Assistant U.S. Attorney Ola Odeyemi is prosecuting.
Codaniel Jones, 39, Independence, Kan., is charged with one count of unlawful possession of a firearm by a felon, one count of possession of methamphetamine and one count of possession of marijuana. The crimes are alleged to have occurred March 21, 2020, in Montgomery County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000 on the firearm charge and up to a year and a fine up to $1,000 on drug count. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Molly Gordon is prosecuting.
Lemuel Geovani Espinosa, 30, is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred Sept. 25, 2020, in Riley County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Fort Drum Soldier to Serve 24 Months in Federal Prison for Burglarizing North Country Firearms DealersRead the Press Release
SYRACUSE, NEW YORK – Devin Diggs, 21, a former U.S. Army solider previously stationed at Fort Drum, New York, was sentenced today to serve 24 months in federal prison for the burglaries of two federally licensed firearms dealers in Northern New York, announced Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previous guilty plea, Diggs admitted to stealing five (5) long guns during the burglary of a licensed federal firearms dealer in Gouverneur, New York, on September 14, 2019, and to the burglary of a second licensed federal firearms dealer in De Kalb Junction, New York, on September 29, 2019 during which five (5) handguns were stolen. All stolen firearms were recovered during the investigation of these crimes. Diggs also admitted to knowingly possessing stolen firearms taken during those burglaries in his barracks at Fort Drum. Diggs’s co-defendant, Rian Patterson, was sentenced to serve 30 months in prison on September 29, 2020.
In addition to his term of imprisonment, the court also sentenced Diggs to serve three (3) years of post-imprisonment supervised release and ordered him to pay a restitution to the victims.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the U.S Army Criminal Investigation Division (ARMY CID), the St. Lawrence County Sheriff’s Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
This case was brought pursuant to Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Federal Government Contract Officer Sentenced to Prison for Accepting BribesRead the Press Release
WASHINGTON – Ronnie Simpkins, 68, of Lusby, Maryland, a former government contract officer with the General Services Administration (GSA), was sentenced to a 21-month prison term on a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017. Simpkins pled guilty to the charge on December 19, 2019.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Eric D. Radwick, Acting Special Agent in Charge, General Services Administration, National Capital Region, Office of Investigations.
According to the government’s evidence, from 1989 until May 2019, Simpkins was employed by the General Services Administration (“GSA”) as a Contract Specialist, informally known as a Contracting Officer, in procurement related positions, and between August 2013 and May 2019, he worked as a Contract Specialist assigned to GSA’s headquarters in Washington, D.C. From February 2010 to August 2017, Simpkins was assigned to a sub-division of the Federal Acquisition Service, which oversees the administration of GSA Schedule 70 contracts. “Schedules” are long-term government-wide contracts with commercial companies that provide access to commercial products and services at fair and reasonable prices to the government. “Schedule 70 contracts” provide IT solutions, services, and software to federal, state, and local customer agencies. GSA pre-negotiates the vendors’ pricing, terms, and conditions, to streamline the acquisition process while at the same time providing the best value to the end user agency.
According to court papers, Company A, a Northern Virginia corporation, held a GSA Schedule contract, which it actively advertised to prospective federal agency customers. To maintain its GSA Schedule contract, Company A was required to have annual sales in excess of $25,000—a requirement that could be waived by GSA’s administrative contracting officer. Company A was also required to pay an Industrial Funding Fee (“IFF”) of 0.75% of all its Schedule sales. Dating back to 2006, Company A maintained its GSA Schedule contract despite reporting no sales and not paying any IFFs since 2006. Simpkins oversaw the contract dating back to 2009.
Simpkins admitted that, for approximately six years between 2011 and 2017, he accepted cash, meals, and furniture from two Company A officials to use his position to help Company maintain its GSA Schedule contract. Simpkins admitted to meeting the Company A officials over a dozen times at various restaurants in Northern Virginia, the Company A officials’ residences, and other places, often outside of normal GSA business hours and on weekends. At these meetings, the Company A officials treated Simpkins to meals and gave him cash totaling “thousands of dollars into the teens.” In July 2016, Simpkins accepted more than $2,000 worth of furniture paid for by the officials. Simpkins admitted to taking more than $12,000 in cash and furniture from the Company A officials.
Simpkins admitted to using his GSA position to help Company A in exchange for these payments. Specifically, Simpkins recommended and signed Company A’s contracts with GSA, even though Company A failed to meet program requirements; deliberately neglected to notify GSA, as he was obligated to do, when Company A’s contract under his supervision no longer met program requirements; and advised Company A about ways to avoid contract cancellation despite failing to meet GSA’s program requirements.
United States District Judge Trevor N. McFadden, who presided over the case, sentenced Simpkins to 21 months in prison, followed by one year of supervised release. The Court also imposed a $10,000 fine and ordered Simpkins to forfeit $12,108.91.
The case was investigated by the FBI’s Washington Field Office Criminal Division and GSA Office of Inspector General and prosecuted by the U.S. Attorney’s Office’s Public Corruption and Civil Rights Section.
Former Company Accounting Clerk Pleads Guilty for Defrauding the CompanyRead the Press Release
ST. LOUIS, MO –Stephanie Baker, 48, of O’Fallon, Missouri, pleaded guilty to three counts of mail fraud related to her former position in the accounting department of Prairie Farms Dairy Supply Company. Baker appeared, today, before United States District Henry Autrey who accepted her pleas and set sentencing for January 12, 2021.
According to the indictment and plea agreement, Baker was an employee of Prairie Farms, working in that company’s accounting department. Baker’s duties and responsibilities included applying and allocating Prairie Farms customer payments to their customer accounts. As part of her duties, Baker would routinely receive checks from Prairie Farms customers, and make accounting entries to apply those checks to each customer’s account and therefore reduce the balance owed to Prairie Farms of that particular customer account by the amount of the check received.
C.S. owned and operated a Dairy Queen restaurant franchise in southern Illinois. DQ Columbia maintained an account at Prairie Farms and purchased and received products from Prairie Farms on a regular basis. DQ Columbia was required under its franchise agreement to order and receive substantially all of its food, dairy products, and supplies from Prairie Farms.
Beginning in or about March, 2018 and continuing through in or about December, 2018, Baker devised, intended to devise, and knowingly participated in a scheme to defraud and obtain money from Prairie Farms and C.S., in an approximate amount of $192,336.74, by means of materially false and fraudulent pretenses, representations, and promises.
Baker received and applied payments from Prairie Farms customers other than DQ Columbia to DQ Columbia’s account. DQ Columbia, therefore, received credit and a reduction it its account balance for payments that were not made by DQ Columbia, but instead were made by other Prairie Farms customers. Further, the other Prairie Farms customers who made the actual payments did not receive credit and a reduction in their own account balances. As part of her scheme, Baker misapplied approximately $143,933.74 in other customer payments to the DQ Columbia account. Baker withheld and did not mail out statements to the other Prairie Farms customers so that those other customers would not realize that their prior payments to Prairie Farms had not been credited to their accounts.
Baker falsely represented to C.S. that, in order for DQ Columbia to continue receiving food, dairy products and supplies from Prairie Farms, C.S. needed to make cash payments personally to Baker. At Baker’s direction, C.S. met with Baker on numerous occasions and delivered cash to Baker based upon Baker’s false representations that she would deliver the cash to Prairie Farms and credit DQ Columbia’s account accordingly. In fact, Baker kept the cash she received from C.S., did not credit DQ Columbia’s account for the cash payments, and used the cash for her own personal use, including for the boarding and related expenses for a show horse and other general living expenses, unrelated to the legitimate business of Prairie Farms. C.S. met with Baker on numerous occasions and made cash payments to Baker totaling approximately $48,403.00. Prairie Farms and its owners had no knowledge of the cash payments which C.S. made to Baker, and received no portion of these cash payments.
Baker received numerous checks from Prairie Farms customers through the U.S. mail and as part of her scheme misapplied those payments as credits to the account of DQ Columbia.
Baker faces a potential statutory maximum sentence as to each count of mail fraud of twenty years’ imprisonment, and a fine of $250,000. The Court is required to consider the United States Sentencing Commission guidelines in sentencing defendant.
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Florida Recording Artist and Pennsylvania Man Charged for Role in $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Florida recording artist and a Pennsylvania towing company owner have been charged for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Special Agent in Charge Tyler R. Hatcher of the IRS-Criminal Investigation (CI) Miami Field Office, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Kevin A. Kupperbusch of the U.S. SBA-Office of Inspector General (OIG), Investigations Division, Eastern Regional Office, made the announcement.
Diamond Blue Smith, 36, of Miramar, Florida, and Tonye C. Johnson, 28, of Flourtown, Pennsylvania, were charged in federal criminal complaints filed in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. Smith was arrested and appeared yesterday before U.S. Magistrate Judge Regina D. Cannon of the Northern District of Georgia. Johnson was arrested on Oct. 1, 2020, and appeared on Oct. 2, 2020, before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania.
The complaints, which were unsealed today, allege that Smith and Johnson conspired with others to obtain millions of dollars in fraudulent PPP loans.
Smith, a recording artist, is alleged to have obtained a PPP loan of $426,717 for his company, Throwbackjersey.com LLC, using falsified documents. Upon completion of that loan, Smith then sought and obtained another PPP loan of $708,065 for his other company, Blue Star Records LLC, using falsified documents. Smith allegedly purchased a Ferrari for $96,000 and made other luxury purchases using PPP loan proceeds. Authorities seized the Ferrari at the time of Smith’s arrest. He is also alleged to have withdrawn $271,805 in loan proceeds. The complaint further alleges that Smith sought PPP loans on behalf of others in order to receive kickbacks for those confederates.
Johnson is alleged to have obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC, using falsified documents. The complaint alleges that Johnson then paid a portion of the loan proceeds to co-conspirators in the scheme.
The complaints allege that Smith and Johnson conspired with others to obtain millions of dollars in fraudulent PPP loans. Early in their scheme, Smith and Johnson’s co-conspirator, Phillip J. Augustin, allegedly obtained a fraudulent PPP loan for his talent management company using falsified documents. After submitting that application, Augustin then began to work with other co-conspirators on a scheme to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining the forgivable loans for them. The complaints allege that the scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted. Augustin, Smith, Johnson, and other conspirators in the scheme are alleged to have applied for PPP loans that are together worth more than $24 million. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million.
The other 11 defendants allegedly involved in this scheme whose complaints were previously unsealed are the following:
- Joshua J. Bellamy, 31, of St. Petersburg, Florida, was charged in a federal criminal complaint filed on Sept. 9, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Tiara Walker, 37, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Sept. 3, 2020, in the Southern District of Florida, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Damion O. Mckenzie, 38, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Andre M. Clark, 46, of Miramar, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Keyaira Bostic, 31, of Pembroke Pines, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Phillip J. Augustin, 51, of Coral Springs, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction;
- Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- James R. Stote, 54, of Hollywood, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Ross Charno, 46, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Deon D. Levy, 50, of Bedford, Ohio, was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud; and
- Abdul-Azeem Levy, 22, of Cleveland, Ohio was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Smith and Johnson cases were investigated by the IRS-CI Miami and Cincinnati Field Offices, the FBI’s Miami and Cleveland Field Offices, and the SBA-OIG. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aimee Jimenez and David Snider for the Southern District of Florida are prosecuting the cases. The Justice Department also acknowledges and thanks the U.S. Attorney’s Office for the Northern District of Ohio, the IRS-CI Philadelphia and Atlanta Field Offices, the FBI’s Philadelphia Field Office, and the Federal Deposit Insurance Corporation Office of Inspector General for their assistance investigating this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Joshua J. Bellamy, 31, of St. Petersburg, Florida, was charged in a federal criminal complaint filed on Sept. 9, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
Finance manager for Great Falls construction company charged with embezzling more than $565,000Read the Press Release
GREAT FALLS – The finance manager for William Tempel Construction today was arraigned on wire fraud charges alleging she stole more than $565,000 through a scheme of false and inflated subcontractor invoices billed to a client, U.S. Attorney Kurt Alme said.
Lynn Bapp Tempel, 59, pleaded not guilty to 10 counts of wire fraud as charged in an indictment. If convicted of the most serious crime, Tempel faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Tempel was released pending further proceedings.
The charging documents are merely accusations and the defendant is presumed innocent until proven guilty.
The indictment alleges that Tempel managed the finances for William Tempel Construction, which entered into a contract to build a $4.41 million residence in Great Falls for a client. Beginning in May 2013, the indictment continues, Tempel inflated invoices from subcontractors on the project and provided those inflated invoices to the client for payment.
The indictment further alleges that Tempel falsified, altered and inflated approximately 153 subcontractor invoices. The alleged inflated invoices resulted in William Tempel Construction receiving about $565,456 from the client to which it was not entitled. During this same timeframe, Tempel withdrew about $566,848 from the company's business account.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI and the Great Falls Police Department.
PACER case reference. 20-75.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Federal Judge in Del Rio Sentences Kickapoo Man to Twelve Years Imprisonment in Connection with the Death of a Fellow Tribe MemberRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced 44–year-old Adan Suke, Jr., a member of the Kickapoo Traditional Tribe of Texas (KTTT), to 12 years in federal prison in connection with the death of a fellow tribe member in November 2006, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Judge Moses ordered that Suke pay a $3,000 fine and be placed on supervised release for a period of three years after completing his prison term.
On June 19, 2019, a federal jury convicted Suke of voluntary manslaughter, assault with a dangerous weapon and assault resulting in serious bodily injury. Evidence presented at trial revealed that, on November 3, 2006, Suke struck fellow tribe member Carlos Trevino multiple times with a blunt object during an argument on KTTT land near Eagle Pass, Texas. Mr. Trevino suffered grievous injuries, including a skull fracture, and passed away at a San Antonio area hospital approximately two weeks later.
Although he was indicted for this offense in 2008, Suke fled the country immediately afterwards and had been living on tribal land in Nacimiento, Mexico, for over ten years. FBI agents were able to extradite him back to the U.S. in August of 2018, where he was detained until his trial the following June.
The FBI, Maverick County Sheriff’s Office, KTTT Security Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated this case. Assistant U.S. Attorneys Paul Harle and Justin Chung prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
FDA Investigator Honored with U.S. Attorney’s Award for Excellence in Law EnforcementRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is pleased to announce the latest recipient of the U.S. Attorney’s Law Enforcement Award is Special Agent Steve Lamp, an investigator with the Food and Drug Administration (FDA).
“Special Agent Lamp’s dogged determination to keep the pharmaceutical supply chain secure equates to safer families across our Commonwealth,” said U.S. Attorney Russell Coleman. “I am honored to present this award for the first time to an FDA Special Agent.”
The Award commendation presented by U.S. Attorney Coleman to Special Agent Steve Lamp is for his service on behalf of the citizens of the Western District of Kentucky for his work on a case that started as a simple theft from a pharmacy that led to three federal indictments, two in Kentucky and one in Idaho.
Lamp doggedly followed Kyle Humphrey across the mid-West learning of his thefts from multiple pharmacies and also learning of a history of domestic abuse and gun ownership. Special Agent Lamp flew to Idaho to make a final arrest in this case, catching Humphrey red-handed, with stolen pharmaceuticals and a handgun, while he was under a domestic violence order.
Because of Lamp’s work and the evidence he amassed in his investigation, Humphrey waved a detention hearing and quickly entered a plea of guilty to all three indictments.
The United States Attorney’s Office for the Western District of Kentucky is honoring the extraordinary efforts of its federal, state, and local law enforcement partners across the District. Additional awards will be presented throughout the District in the coming months.
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Erie Woman Admits Defrauding the Non-Profit She Founded to Cover Her Gambling and Personal ExpensesRead the Press Release
ERIE, Pa. - The founder of an Erie non-profit organization and a resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of wire fraud and false writing or document to the government, United States Attorney Scott W. Brady announced today.
Sonya Arrington, 53, pleaded guilty to two counts before United States District Judge David S. Cercone. Arrington also accepted responsibility for all of the other counts of the Indictment and agreed that the conduct alleged at those counts may be considered by the Court at sentencing and utilized to calculate her Sentencing Guideline range.
"Every individual who made a donation to Sonya Arrington’s non-profit organization to help prevent teen violence was cheated," said U.S. Attorney Brady. "The Mothers Against Teen Violence has unofficially ceased to exist, and its initial intent to prevent violence among teens is left unfulfilled. We will continue to prioritize cases that compromise the public’s trust in prominent public servants."
"Ms. Arrington’s charity was supposed to help youth in the Erie community. Instead, she embezzled tens of thousands of dollars to line her own pocket," said FBI Pittsburgh Special Agent in Charge Michael Christman. "She deprived her community and its youth of that money and all the work it could’ve done. It is extremely disappointing when greed and selfishness take over, and today’s guilty plea sends a message that the FBI and our partners will continue our efforts to root out people who believe they are above the law."
"My office will work to hold accountable those who defraud or attempt to defraud the Social Security Administration," said Gail S. Ennis, Inspector General of Social Security. "I want to thank the FBI for its partnership throughout this investigation, and the U.S. Attorney’s Office for bringing the charges that resulted in today’s guilty plea."
In connection with the guilty plea, the court was advised that Arrington diverted funds donated to Mothers Against Teen Violence (MATV), a non-profit organization she created to help prevent violence among teenagers, to pay for her gambling and personal expenses. Specifically, from December 2011 to March 2018, Arrington engaged in a scheme to defraud MATV of at least $70,000. She solicited donations from individuals and entities in person and by email; received donations to MATV in cash and checks payable to MATV and deposited a portion of the donations into MATV bank accounts and kept a portion in cash for herself; and did not deposit cash but kept cash donations for herself. She also used the debit card for the MATV bank accounts to make purchases unrelated to the organization’s purposes, for things like personal items of clothing, groceries, car washes and food at restaurants; used the debit card for MATV to pay personal bills for
T-Mobile, State Farm, First Energy and others; and deposited checks to MATV into personal bank accounts and kept a portion for personal use.
Further, on at least 113 occasions from April 2012 to January 2018, Arrington used the MATV debit card to withdraw MATV funds at Presque Isle Downs & Casino. She would also on occasion leave the casino to travel to a nearby Sheetz for the purpose of using the MATV debit card to withdraw MATV funds and then immediately return to the casino to gamble with those funds. Arrington also fraudulently received approximately $29,558 in Social Security disability benefits and submitted a document to the Social Security Administration that contained a false statement which falsely claimed that she had submitted wage documentation to the Social Security Administration
Judge Cercone scheduled sentencing for February 23, 2021, at 11 a.m. The law provides for a total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Arrington on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Special Agent Kenneth Grubb of the Social Security Office of the Inspector General, Philadelphia Field Division, under the supervision of Special Agent-in-Charge Michael McGill, conducted the investigation that led to the prosecution of Arrington.
Erie Man Sentenced to 20 Years for Fentanyl Death, Firearms OffensesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty and was sentenced in federal court to 20 years (240 months) in prison on his conviction of violating federal drugs and firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Dona Arell Cowans, 38.
According to information presented to the court, Cowans sold a quantity of fentanyl that caused the death of R.R.W. on July 8, 2019. Investigators were able to conduct additional controlled buys from Cowans and during a search of Cowans’ residence the following day, located an additional 34 grams of fentanyl, cash, a loaded firearm, scales and packaging materials.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Cowans. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
El Departamento de Justicia Resuelve Acusaciones de Discriminación por Motivos de Estatus de Ciudadanía contra una Empresa de Guardas de Segurdiad en Carolina del Sur en Relación con un Exintérprete para el Ejército de los EE. UU. en IrakRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Security Management of South Carolina, LLC (Security Management), una empresa privada de seguridad que presta servicios de seguridad armados y no armados en Carolina del Sur y Georgia. El acuerdo resuelve acusaciones de que Security Management discriminó a un trabajador en Carolina del Sur al retirar su oferta de trabajo condicional porque el trabajador era ciudadano estadounidense naturalizado. Más aún, el acuerdo resuelve acusaciones de que Security Management discriminó a trabajadores no ciudadanos de los EE. UU. que contaban con autorización para trabajar en el estado de Georgia al limitar, de forma rutinaria, a los puestos para agentes de seguridad a ciudadanos estadounidenses, sin tener fundamento jurídico para lo mismo, y al publicar anuncios de trabajo que disuadían a personas no ciudadanas de solicitar un puesto.
«A la hora de tomar decisiones en cuanto a la contratación, las compañías no pueden basarse en el medio por el cual un trabajador llegó a ser ciudadano de los EE. UU., ni tampoco pueden publicar anuncios de trabajo con restricciones ilícitas de ciudadanía que disuadan a postulantes con autorización para trabajar», afirmó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «La División de Derechos Civiles se ha comprometido a garantizar que las personas con autorización para trabajar amparadas bajo la ley de Inmigración y Nacionalidad tengan una oportunidad de solicitar un puesto y ser consideradas para oportunidades laborales con base en sus méritos».
La investigación del Departamento comenzó después de que un ciudadano estadounidense naturalizado (es decir, un individuo que nació en otro país y luego se convirtió en ciudadano de los EE. UU.) presentó una denuncia de discriminación contra Security Management. Antes de inmigrar a los EE. UU., el trabajador había servido como intérprete para las fuerzas militares estadounidenses en Irak. Con base en su investigación, el Departamento concluyó que después de solicitar un puesto exitosamente con Security Management en Carolina del Sur, la compañía retiró, de manera ilegal, la oferta de trabajo del trabajador porque no es ciudadano nativo de los EE. UU. sino ciudadano naturalizado. Por otra parte, el Departamento concluyó que, desde al menos abril del 2018 hasta diciembre del 2019, Security Management publicó anuncios de trabajo que restringían puestos para agentes de seguridad en Georgia a ciudadanos de los EE. UU., lo que excluyó a trabajadores no ciudadanos de los EE. UU. que cuentan con autorización para trabajar, como residentes permanentes legales, asilados y refugiados. El Departamento determinó que Security Management carecía de fundamento legal para restringir su contratación en Georgia a ciudadanos de los EE. UU.
La ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) protege a ciudadanos de los EE. UU., nacionales de los EE. UU., refugiados, asilados y residentes permanentes legales recientes de discriminación por motivos de su estatus de ciudadanía en los procesos de contratación, despido y reclutamiento o recomendación por comisión. Aquellos trabajadores que quedan fuera de estas categorías no gozan, en virtud de la INA, de protección contra discriminación por motivos de su estatus de ciudadanía. Un ejemplo de discriminación por motivos de estatus de ciudadanía sería cuando un empleador restringe puestos de trabajo a ciudadanos y nacionales de los EE. UU., dejando fuera a otros individuos protegidos, entre ellos asilados, refugiados y residentes permanentes legales recientes, sin disponer de la base jurídica necesaria para tal restricción.
Conforme los términos del acuerdo conciliatorio, Security Management pagará una sanción civil de 60.000 $, establecerá un fondo de pagos retroactivos de 75.000 $ para trabajadores afectados y pagará 7.907.81 $ por concepto de pagos retroactivos al trabajador cuya denuncia de discriminación dio lugar a la investigación. Asimismo, Security Management quitará las restricciones ilícitas de estatus de ciudadanía de sus anuncios de trabajo, revisará sus políticas y procedimientos, capacitará a los empleados relevantes acerca de los requisitos de la disposición de la INA sobre el estatus de ciudadanía y se someterá a la supervisión por parte del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles 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.
Hay información adicional disponible aquí sobre cómo evitar la discriminación en el reclutamiento y la contratación de trabajadores. Para más información sobre protecciones contra la discriminación en el empleo, en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); envíe un correo electrónico a [email protected]; inscríbase a un seminario en línea gratuito; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen, en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sometidos a represalias pueden presentar una denuncia.
Miembros del público también pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Eagle Butte Man Sentenced for Illegally Possessing Loaded FirearmRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on October 5, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Shilo Philip Hill, age 25, was sentenced to 84 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hill was indicted by a federal grand jury on July 16, 2019. He pled guilty on July 20, 2020.
The conviction stemmed from a traffic stop involving Hill on April 18, 2019, west of Dupree, South Dakota. Hill was a passenger in the stopped car and at that time, he knowingly possessed a stolen and loaded .357 Mangum caliber revolver. In addition to the revolver, Hill possessed a scale, baggies, and a small amount of methamphetamine. Hill was prohibited from possessing firearms due to a felony conviction and the fact that he was a user of methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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. The Department of Justice reinvigorated PSN in 2017 as part of its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Dakota Division of Criminal Investigation, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Hill was immediately remanded to the custody of the U.S. Marshals Service.
Dutchess County Man Pleads Guilty to Mailing Hoax Letters and White Powder to Federal Offices in New YorkRead the Press Release
ALBANY, NEW YORK – Jason Pantone, age 34, of Hyde Park, New York, pled guilty today to conveying false information and hoax letters in connection with envelopes containing white powder he mailed to federal offices throughout Upstate and Central New York, and the Southern Tier.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Pantone admitted that beginning on February 21, 2019 and until his arrest on February 27, 2019, he mailed envelopes containing white power to Social Security Administration offices in Binghamton, Plattsburgh and Utica, New York. He also mailed white powder letters addressed to the United States District Court in Syracuse, Binghamton, Albany, Plattsburgh, and Utica. Each of the envelopes contained a typed note, which read “ANTHRAX.” Some of the letters included a smiley face with X’s in place of the eyes. All samples of the white powder were tested and yielded negative results for anthrax or other hazardous material.
United States District Judge Mae D’Agostino scheduled sentencing for February 10, 2021. Pantone, who has been in custody since the date of his arrest, faces up to 5 years in prison, a fine up to $250,000, and 1 year of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI Albany Field Office’s Joint Terrorism Task Force, the Social Security Administration Office of Inspector General, the United States Postal Inspection Service, Homeland Security Investigations, the Federal Protective Service, the New York State Police, the New York State Department of Health, and the Dutchess County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Troy Anderson.
Duplin County Man Arrested on Naturalization Fraud ChargesRead the Press Release
RALEIGH, N.C. – A Duplin County man was arrested on naturalization fraud charges and had an initial appearance yesterday before United States Magistrate Judge Robert T. Numbers II in Raleigh, North Carolina.
A federal grand jury had returned an indictment charging Fidel Santibanez-Jaimes, age 54, a naturalized citizen of the U.S., born in Mexico, residing in Duplin County, with naturalization fraud.
According to the indictment, Santibanez-Jaimes knowingly failed to disclose during his naturalization proceedings that he had committed the crime of felony possession of marijuana and failure to appear in court. Santibanez-Jaimes was thereafter naturalized as a United States citizen.
Santibanez-Jaimes is charged in an 8-count indictment with naturalization fraud. If convicted, he faces up to a maximum imprisonment term of 25 years per count, a $250,000 fine per count, a term of supervised release following any term of imprisonment, and the revocation of his citizenship.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, are investigating the case as part of Operation False Haven. Operation False Haven is an ongoing initiative to identify and prosecute felons who fraudulently obtained U.S. citizenship.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Diamondhead Man Sentenced to Almost Five Years in Prison for Bank FraudRead the Press Release
Gulfport, Miss – Louis Joseph Normand, Jr., 60, of Diamondhead, was sentenced today by Senior U.S. District Judge Louis Guirola Jr. to 57 months in prison, followed by 5 years of supervised release, for bank fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Norman was also ordered to pay over $1.6 million in restitution.
Normand owned businesses involved in the sale of trucks called National Truck Funding and American Truck Group. From 2013 until 2017, he purchased well over 100 18-wheeler trucks for resale. During that time, he received financing from a local bank, as well as private lenders, for 80% of the sales price. In order to increase the amount of the loan and decrease the amount of his down payment, he created false invoices inflating the sales price and, therefore, the amount of the loans he received. Over this period, he was loaned almost $5,000,000, which was approximately 130% of the actual purchase price of the vehicles.
Normand pled guilty on July 7, 2020 to a Criminal Information charging him with bank fraud.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Diamond “Dime-Bag” Floyd Sentenced to More Than 11 Years for Multiple Counts of Armed Drug TraffickingRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Diamond Floyd, also known as “Dime-Bag”, 24, of Charleston, was sentenced to more than 11 years in federal prison after pleading guilty to three counts of drug trafficking and possessing firearms in furtherance of drug trafficking.
Evidence presented to the court showed that Floyd was involved in trafficking marijuana in the Lowcountry since at least 2018. On June 27, 2019, agents and officers with a Drug Enforcement Administration (DEA) Task Force and the Charleston Police Department searched Floyd’s home pursuant to a warrant. In her home, they located 800 grams of marijuana, over $34,000 in cash, a 9mm handgun, a .357 handgun, and a Micro Draco AK. Furthermore, on August 22, 2019, the Charleston Police Department responded to a complaint of a housing resident stating drug dealers had taken over the home. When officers arrived, Floyd jumped out of a second-story window. Officers located marijuana and two additional handguns at the residence and more marijuana on Floyd.
Senior United States District Judge Margaret B. Seymour sentenced Floyd to 138 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the DEA Task Force, Homeland Security Investigations (HSI), and the Charleston City Police Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant U.S. Attorney Jamie Lea Schoen of the Charleston office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Awards over $1.8 Billion in Grants to Assist Victims NationwideRead the Press Release
The Office for Victims of Crime (OVC), a component of the department’s Office of Justice Programs (OJP), has released awards totaling more than $1.8 billion to state victim assistance and compensation programs to fund thousands of local victim assistance programs across the country and to provide millions in compensation to victims of crime.
OVC’s flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under the Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY 2019 alone, VOCA grants served over 7 million victims and paid more than $399 million in compensation claims.
“Advocates, service providers, and law enforcement agencies from around the country stand ready to help crime victims exercise their legal rights and reclaim their lives,” said Attorney General William P. Barr. “These new funding resources continue this administration’s unprecedented commitment to providing the support necessary for victims of crimes to be able to heal and recover.”
The vast majority of the over $1.6 billion in victim assistance funding goes to local direct service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
State victim compensation programs will receive over $133 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses, and other costs.
“Building on the historic amount of victim assistance and victim compensation funding awarded last year, these new awards have the potential to alter the landscape of the victims’ field, putting services and support within reach of every crime victim in America,” said Katharine T. Sullivan, OJP's Principal Deputy Assistant Attorney General. “Backed by an Attorney General whose commitment to crime victims is second to none, we are proud to make these resources available to help meet the emotional, psychological and financial needs that victims face in the aftermath of crime.”
“For crime victims, the first step toward healing and recovery is finding a place where trained, committed professionals can be counted on to provide compassionate services that meet fundamental physical and emotional needs,” said OVC Director Jessica E. Hart. “This funding, taken out of the hands of offenders and put to good use through local assistance organizations and state compensation programs, will enable advocates across the nation to support those in crisis and help victims find the justice they deserve.”
The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars. Additional information about FY 2020 grant awards made by OVC can be found online at the OVC Awards Listing webpage.
D.C. Man Arrested and Charged with Kidnapping a Local Man at GunpointRead the Press Release
WASHINGTON – Kareem Davis, 19, of Washington, D.C. has been arrested and charged via criminal complaint with kidnapping on Tuesday, October 6, 2020.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On September 17, 2020, at approximately 12:50 a.m., Davis approached the victim’s vehicle, which was parked in the 3800 block of 9th Street S.E. in Washington, D.C. Davis entered the vehicle, produced a silver handgun and asked the victim for all of his money. After taking the victim’s wallet, which contained over $200, Davis threatened to kill the victim if he could not give over more money. The victim, fearing for his life, offered to drive Davis to an ATM. Over the next hour, Davis forced the victim to drive to eight different ATMs in Maryland to procure approximately $1500 for him. Davis then demanded to be driven back to 9th Street S.E. As the victim neared the location on 9th Street S.E. where Davis had entered his car, he put the car in to cruise control and jumped out of the driver’s side door, successfully escaping from Davis. Davis was ultimately identified via surveillance video at several ATMs and two dashboard cameras within the victim’s vehicle. Davis was arrested in Washington, D.C. on Tuesday without incident.
“Violent crimes, particularly those involving the use of firearms, are one of the highest priorities for the U.S. Attorney’s Office and our law enforcement partners,” said Acting U.S. Attorney Sherwin. “Thorough investigation and coordinated work across departments helped make our community safer today with this arrest.”
"Today’s charges are another example of the collaboration between the FBI, MPD, and our law enforcement partners on the DC Violent Crime Task Force to quickly take violent criminals off the streets of our city,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI and our task force partners are committed to bringing justice to those who put our communities’ safety in jeopardy by committing serious crimes like car-jacking and armed robbery.”
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Washington Field Office’s Violent Crime Task Force, which comprises FBI Agents and Task Force Officers from MPD, the U.S. Marshals Service, the U.S. Capitol Police, the Court Services and Offender Supervision Agency for the District of Columbia, and the Department of Homeland Security Federal Protective Service.
In announcing the charges, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Kimberly Paschall of the Federal Major Crimes Section, Paralegal Specialists Rommel Pachoca and Teesha Tobias, Legal Assistant Kate Abrey, and Victim Advocate Yvonne Bryant.
Court of Appeals affirms conviction against entertainment industry business manager who defrauded celebrity clientsRead the Press Release
COLUMBUS, Ohio – The Sixth Circuit Court of Appeals has affirmed the conviction of a New Jersey entertainment industry business manager who was convicted at trial in federal court in Columbus.
A jury convicted Kevin Foster, 44, of Montclair, N.J., in August 2018 of 16 counts for his role in an investment scam involving the product “OXYwater”. The court sentenced Foster to 89 months’ imprisonment and ordered to pay nearly $8 million in restitution.
Foster appealed, contending that the evidence supporting one of his convictions was insufficient and challenging the sentence imposed.
The Sixth Circuit Court of Appeals ruled in favor of the United States and affirmed Foster’s convictions and sentence in an opinion filed Oct. 1.
Foster’s case stemmed from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who collected approximately $9 million from investors under false pretenses to start and market the sports beverage OXYwater through their company, Imperial Integrative Health Research and Development (“Imperial”). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges. Jackson and Harrison were both sentenced to 83 months’ imprisonment. Lovena Harrison, Preston Harrison’s spouse, was convicted of various offenses as well and sentenced to 12 months and a day in prison.
In 2015, Jackson and Preston and Lovena Harrison also appealed their convictions, and, in 2016, the Sixth Circuit Court of Appeals affirmed in favor of the United States.
Foster was the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster also invested additional funds belonging to Smith into the product without his consent and fraudulently took out lines of credit under Smith’s name.
Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
Foster stole millions of dollars from Smith and McKnight’s bank accounts in order to fund the operations of OXYwater as well as his own lavish lifestyle, including multiple luxury vehicles, a personal driver, designer watches, and season tickets to the New York Giants and New York Knicks.
In his appeal, Foster challenged the sufficiency of the evidence to sustain his bankruptcy-fraud conviction. Foster attempted to contend that the government did not sufficiently prove a false statement was material to a bankruptcy proceeding; however, the Court of Appeals ruled to uphold the bankruptcy-fraud conviction.
Foster also unsuccessfully contended that the District Court had erred in allowing certain testimony during his trial and had erroneously calculated the amount of loss to victims and the $7.9 million restitution attributable to him. The Court of Appeals affirmed in favor of the government on these points as well.
Appellate Chief Mary Beth Young and Assistant United States Attorney David J. Twombly represented the United States during the various appeals, and Assistant United States Attorney Jessica H. Kim prosecuted the original cases at trial.
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Couple pleaded guilty to laundering over $500,000 on behalf of India-based phone scammersRead the Press Release
ATLANTA – Husband and wife Mehulkumar Manubhai Patel and Chaitali Dave have pleaded guilty to laundering over $500,000 on behalf of India-based phone scammers.
“Dave and Patel helped criminal India-based call centers prey on and steal from vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “While posing as federal agents or tech support, the call centers instructed victims to mail packages of cash that Patel and Dave retrieved using fake identifications. This case exists as an example of our commitment to investigating and prosecuting those who facilitate foreign-based scams.”
“These guilty pleas demonstrate the value of a coordinated, multi-agency approach to combating overseas telephone scams by targeting their facilitators in the United States,” said Gail S. Ennis, Inspector General for Social Security. “We will continue to work with the Department of Justice and our investigative partners to pursue these unscrupulous individuals, who continue to deceive and harm American consumers.”
“It is important to remind family and friends to never provide money or personal information to unknown callers when they receive a suspicious call,” said Andrew Saul, Commissioner of Social Security. “People should just hang up and then go online to oig.ssa.gov to report these scams to Social Security.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and tech support scams.
As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing their Social Security numbers were involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
As part of the tech support scam, callers allegedly induced victims to send money in exchange for supposed technical support for their computers. The callers then provided nothing in return. At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts. The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts. The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
Based on misrepresentations made during the calls, the victims, including Georgia residents, mailed money to a network of individuals that laundered funds on behalf of the overseas fraud network. From on or about May 2019, to on or about January 2020, Patel and Dave laundered over $500,000 sent by dozens of scam victims.
Mehulkumar Manubhai Patel, 36, and Chaitali Dave, 36, of Lexington, South Carolina, pleaded guilty before U.S. District Judge Amy Totenberg on September 1, 2020 and on October 6, 2020 respectively.
The Social Security Administration - Office of the Inspector General is investigating the case with the assistance of the U.S. Secret Service, El Dorado Task Force (New York), Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), Polk County Sheriff’s Office (Florida) and Henrico County Police Division (Virginia).
Special Assistant U.S. Attorney Diane Schulman is prosecuting the case. Former Northern District of Georgia Elder Justice Coordinator and Assistant U.S. Attorney Jolee Porter previously prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Connecticut Man Pleads Guilty to Ponzi and Tax Fraud SchemeRead the Press Release
BOSTON – A Connecticut man who formerly owned ARO Equity, LLC pleaded guilty today in connection with a multi-year fraud scheme that caused more than $4 million in losses to investors.
Thomas D. Renison, 66, pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing false tax returns. U.S. District Judge George A. O’Toole, Jr. scheduled sentencing for Feb. 11, 2021.
According to the charging document, between 2015 and 2018, Renison and his co-conspirator, Timothy J. Allcott, fraudulently raised and solicited funds from victims to invest in ARO Equity LLC – a privately-held investment company that purportedly pooled money from investors and then invested it in various New England-based businesses. In order to raise these funds, Renison and Allcott misrepresented to victims how their money would be invested, ARO’s investment track record and the safety of the investments. Allcott and Renison also concealed Renison’s ownership interest and affiliation with ARO because Renison had previously been barred by the Securities and Exchange Commission (SEC) and regulators in Maine from working in the securities industry.
Over the course of the scheme, ARO took in over $5 million from investors; however, only about half of the funds were actually invested. Of the investments that were actually made, the substantial majority yielded significant losses. Despite these losses, none of the victims were informed of the poor performance of prior investments. Instead, the victims were told on many occasions that the investments were doing well and remained safe. When victims invested with ARO, they signed promissory notes, agreeing to receive monthly interest payments on their investments. ARO generally made these scheduled monthly payments; however, because ARO’s actual investments earned little to no returns, the monthly payments to existing investors were made using funds raised from more recent investors.
The defendants’ scheme also involved misrepresentations to the victims regarding how their investments would be used. Victims were generally told that their investments were to be used by ARO to fund investments in one of three different businesses. Despite this, the investment funds were often used for purposes other than what was represented to the investors – including using the funds to pay Renison and Allcott exorbitant commission fees, satisfy monthly interest obligations to other investors and to invest in different undisclosed businesses. As part of the scheme, Allcott and Renison disguised commissions paid to Renison as loans to Renison’s wife, which allowed them to continue concealing Renison’s ownership stake in the company. In addition, Renison failed to declare more than half a million dollars of commission income and failed to pay over $150,000 in taxes.
Allcott previously pleaded guilty to one count of conspiracy to commit wire fraud. In January 2020, the SEC charged Allcott and Renison with fraudulently misleading investors in connection with the same conduct.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Columbia Man Sentenced to More Than Three Years in Federal Prison for Firearm and Ammunition Charge Stemming from “ShotSpotter” AlertRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Corey Kimani Sanders, 31, of Columbia, was sentenced to more than three years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented to the court showed that early Sunday morning on September 15, 2019, officers with the Columbia Police Department responded to a “ShotSpotter” alert of numerous shots fired on the Oakland Avenue. The technology known as “ShotSpotter” relies upon acoustic sensors to pinpoint where gunfire occurs. Information from the sensors is sent to officers of the Columbia Police Department and 9-1-1 dispatchers through real-time digital alerts.
Upon canvassing the area, officers recovered numerous shell casings from the roadway and learned that individuals in a car had fired shots into a home and Sanders had fired shots back at the car from inside the home. The individuals in the car were not identified or located. However, the investigation revealed that Sanders, a felon and prohibited from possessing firearms and ammunition, was in possession of two firearms, including a pistol with a 50-round drum magazine, as well as ammunition. Sanders, a former gang member, was out on separate state bonds for murder, attempted murder, and conspiracy to traffic marijuana at the time of the incident. Sanders has prior separate state convictions for unlawful carrying of a weapon, assault and battery of a high and aggravated nature (where he shot a female in the leg), and assault with intent to kill (where he shot into a moving vehicle).
United States District Judge J. Michelle Childs sentenced Sanders to 46 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the City of Columbia Police Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant U.S. Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Cin-Air ordered to pay $90k fine for jet fuel spillRead the Press Release
CINCINNATI – Cin-Air LP pleaded guilty and was sentenced in U.S. District Court today for violating the Clean Water Act by causing and mishandling a jet fuel leak in March 2019 at Lunken Airport.
The company was sentenced to one year of probation and ordered to pay a $90,000 fine. As part of its probation, the company will provide training to all employees on spill prevention and cleanup. It will also publish a full-page acknowledgment of its conduct in Business Air’s FBO Today.
According to the plea document, on March 21, 2019, Cin-Air’s fuel pump at the Lunken Airport airplane hangar was inadvertently left running overnight after a mechanic refueled an airplane.
A safety switch called the “dead man switch” had been previously altered with a zip tie, causing the switch to permanently stay in the open position.
When Cin-Air employees reported to work the morning of March 22, they discovered the fuel pump had been running all night and leaking. It was estimated that more than 3,000 gallons of fuel had spilled from the pump during the night.
Cin-Air never notified to the National Response Center and waited approximately six hours before notifying the Cincinnati Fire Department. Before calling the fire department, company employees washed down the spill area with water into a nearby storm sewer.
Emergency crews traced the fuel spill to a cove of the Little Miami River. No jet fuel was observed in the main river channel.
Efforts were made to contain and clean up the spill, and it is estimated 1,700 gallons of fuel were recovered. Cin-Air contributed approximately $220,000 toward nearly $440,000 in cleanup costs.
“The defendant’s negligence resulted in a fuel spill that contaminated the Little Miami River, a tributary of the Ohio River,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Ohio. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to enforcing laws designed to protect the health of our communities and our natural resources.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jennifer Lynn, Special Agent in Charge, United States EPA criminal enforcement program; Laurie A. Stevenson, Director, Ohio EPA; Ohio Attorney General Dave Yost and Cincinnati Fire Chief Roy E. Winston announced the sentence imposed by U.S. Magistrate Judge Stephanie K. Bowman. Assistant United States Attorney Kyle J. Healey and Department of Justice Environmental and Natural Resources Division Trial Attorney Adam Cullman are representing the United States in this case.
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Chicago Woman Sentenced for Fraudulently Using Social Security Numbers to Rent ApartmentsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Farkhanda Muhammad, 34, Chicago, Illinois, was sentenced today by U.S. District Judge James D. Peterson to six months in federal prison for fraudulently representing that a Social Security number was hers to apply for a Madison apartment. Muhammad pled guilty to this charge on July 14, 2020.
During the sentencing hearing, the parties and Court discussed Muhammad’s broader scheme to rent apartments—in Madison and elsewhere—for people using false Social Security numbers and identities. In particular, the government and Court noted that, out of the six Madison apartments that Muhammad rented using false names and Social Security numbers, four were for Martell Norris. Norris was a kilogram-level cocaine dealer that Judge Peterson sentenced to 15 years in federal prison on January 23, 2020. Judge Peterson found that, although Muhammad was not directly implicated in Norris’s drug sales, she “turned a blind eye” to how Norris used the apartments to sustain his cocaine distribution network. In addition to the six-month prison term, the Court directed Muhammad to pay $17,945 to the apartment building owners.
The charge against Muhammad was the result of an investigation conducted by the Drug Enforcement Administration, the Wisconsin Department of Justice Division of Criminal Investigation, the Social Security Administration, and the Chicago Police Department. First Assistant United States Attorney Timothy M. O’Shea prosecuted the case.
Cheswick Man Charged with Defrauding U.S. Postal ServiceRead the Press Release
PITTSBURGH, PA - A resident of Cheswick, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and theft of government property, United States Attorney Scott W. Brady announced today.
The 12-count Indictment named Xiaodong Zhang, age 40, as the sole defendant.
According to the Indictment, from June 2015 to November 2016, the defendant falsified postage labels on the small parcels generated by his home business and defrauded the postal service in excess of $50,000.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Man Pleads Guilty to Stealing Car Parts, Bourbon, and Electronics from Railroad CarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nicholas Birdwell, 38, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to breaking into and larceny from an interstate carrier facility. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on multiple occasions in May and June of 2018, the defendant and co-defendants Paul Krieger and Ray Chrostowski went to the railyards in the vicinity of Broadway and Bailey Avenue in Buffalo, broke into railcars using a crowbar, bolt-cutters and other tools, entered the cars, and removed property from the railcars. On each occasion, co-defendant Krieger directed Birdwell and Chrostowski regarding which railcar to enter, what property to remove, where to hide the stolen items, and the manner by which each should conduct themselves in order to conceal their conduct from the attention of law enforcement and railyard personnel. On at least one occasion, Birdwell was responsible for bringing a vehicle to transport the stolen items from railroad property to locations in Buffalo where it was resold for profit.
• On June 8, 2018, the three defendants broke into a railcar carrying automobiles and removed the tires and rims from a 2018 Jeep and a 2018 Dodge. The total loss relating to the 2018 Jeep was $1,882.10, and the total loss relating to the 2018 Dodge was $2,836.06.
• On June 22, 2018, the defendants stole approximately 20 cases (120 bottles) of Jefferson bourbon, and sold them for profit. The value of the bourbon was approximately $3,118,80.
• On June 26, 2018, the defendants stole a 50-inch Samsung television valued at approximately $400.Co-defendant Ray Chrostowski was previously convicted and is awaiting sentencing. Charges remain pending against co-defendant Paul Krieger. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the CSX Police, under the direction of Chief Sean Douris.
Sentencing is scheduled for February 11, 2021, before Judge Sinatra.
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Brunswick County Man Sentenced to 10 Years for Gun and Drug OffensesRead the Press Release
GREENVILLE, N.C. – A Shallotte man was sentenced today to 120 months in prison for dealing crack and using firearms to facilitate his drug dealing.
According to court documents, Antwan Damitri King, 41, was charged with six counts including conspiracy to distribute more than 28 grams of cocaine base (crack), three counts of distribution of cocaine base (crack), one count of possession with intent to distribute cocaine base (crack), and one count of possession of firearms in furtherance of a drug trafficking crime. King pled guilty to the conspiracy, possession with intent to distribute, and firearms count on March 16, 2020.
On November 16, 2018, following several prior controlled purchases from King, the Brunswick County Sheriff’s Office executed a search warrant for King’s residence and recovered crack, marijuana, digital scales, ammunition, and 17 firearms, including an AR-style handgun and rifle, both loaded with high-capacity magazines.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge Malcolm J. Howard. The North Carolina 13th Judicial District Attorney’s Office, Brunswick County Sheriff’s Office and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
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. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-109-H.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Billings methamphetamine trafficker sentenced to 10 years in prisonRead the Press Release
BILLINGS — A Billings man who admitted trafficking methamphetamine after law enforcement officers found the drug and more than $12,000 during a search at his home was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
John Jay Dudik, IV, 67, pleaded guilty in January to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided. Dudik was allowed to report to prison.
The prosecution said in court records filed in the case that Drug Enforcement Administration agents in March 2019 met with an individual who provided information that a male named Jay was providing large quantities of meth to another person and had pounds of the drug at his residence. The investigation led to a search warrant being executed on March 7, 2019 on Dudik's residence. Dudik was at home and detained during the search. Agents seized meth, which totaled about 144 grams of pure meth, $12,389 in currency from Dudik's safe, $950 from Dudik's person and other drugs and drug paraphernalia.
Dudik told agents he used a lot of meth and usually had an ounce at his house. He said thought he had about one and a half ounces of meth at the time of the search warrant execution. He claimed all of the meth he had was for personal and social use.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the DEA.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Acting U.S. Attorney Announces Appointment of Assistant U.S. Attorney Andrew E. Krause to Serve as Magistrate Judge in White PlainsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, today announced that Assistant U.S. Attorney Andrew E. Krause has been appointed to serve as a United States Magistrate Judge. He will sit in White Plains.
AUSA Krause has served in the Office’s Civil Division for eight years, and serves as the Division’s Senior Litigation Counsel and Professional Responsibility Officer. In those capacities, he has led the Division’s training efforts and supervision of civil trials, served as a resource for Civil Division AUSAs, and has litigated an extensive docket of complex affirmative and defensive matters. Before joining the Office, AUSA Krause had six years of private-sector legal experience, and served as law clerk to former Southern District Judge Stephen C. Robinson in White Plains. He is a graduate of Harvard Law School and Yale University.
AUSA Krause has represented the United States and its agencies and employees in varied cases, often among the Office’s most sensitive and difficult matters. Among these, he has defended lawsuits challenging the actions of regulatory agencies; brought affirmative environmental enforcement lawsuits on behalf of the United States; pursued False Claims Act recoveries arising from fraud against the government; and handled numerous sensitive matters, including constitutional and tort claims against the federal government and its employees.
Acting U.S. Attorney Audrey Strauss said: “I am extremely pleased and excited that Andrew Krause has been selected to serve as a Magistrate Judge in this District. Andrew has been an outstanding AUSA throughout his time in the Office, both in handling his own cases with integrity and skill, and in providing invaluable assistance and counsel to colleagues. I am confident that with his intellect, integrity, and profound sense of fairness, Andrew will be a terrific Magistrate Judge.”
Monday 5 October 2020
Worcester Man Sentenced for Wildlife SmugglingRead the Press Release
BOSTON – A Worcester man was sentenced today in connection with unlawfully importing and exporting salamander and turtle species.
Nathan Boss, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served and two years of supervised release with the first five months to be served in home confinement. Judge Hillman also imposed the special conditions that Boss not possess any wildlife and that he successfully participate in and complete a community service project. In June 2020, Boss pleaded guilty to two counts of smuggling wildlife into the United States, two counts of smuggling wildlife out of the United States and one count of making a false statement to a federal agent.
The investigation began in 2017 when Boss lied to federal investigators about the identity of a recipient of wildlife illegally imported into the United States. Subsequently, federal investigators intercepted an inbound U.S. Postal Service package from Hong Kong that was addressed to “Shelton Boss” at an address on Mildred Avenue in Worcester. The package was found to contain four black-breasted leaf turtles (Geoemyda spengleri), a species included in the Convention for Trade in Endangered Species and Wild Fauna, an international agreement joined by the U.S. that governs the importation of designated wildlife. Specifically, any black-breasted leaf turtle imported into the United States must be declared and approved by Fish and Wildlife Service before any shipment can be received.
Boss was also found to have illegally imported an injurious species of salamander which can carry a fungal disease and is prohibited from importation into the United States. Further investigation revealed that, on multiple occasions, Boss illegally exported undeclared wildlife destined for locations in Hong Kong and Sweden.
United States Attorney Andrew E. Lelling and Ryan Noel, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement made the announcement. Assistance with the investigation was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection, Massachusetts Environmental Police and the Massachusetts Division of Fisheries and Wildlife. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Criminal Division prosecuted the case.
Waterloo Home Invasion Results in Decade Long Prison SentenceRead the Press Release
A man who led a group invading a Waterloo home was sentenced today to ten years in federal prison.
James Welton, age 41, from Independence, Iowa, received the prison term after a March 19, 2020 guilty plea to one count of being a felon in possession of a firearm. Evidence at the sentencing hearing showed that Welton led a group of individuals into a Waterloo home on the evening of October 21, 2019. The group was armed with two stolen firearms. Once they got into the residence, they attempted to kidnap one of the residents, assaulted one person, and discharged both guns.
Welton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Welton was sentenced to 120 months’ imprisonment and fined $50,000. He was also ordered to prepay the Court $8500 for the cost of his court appointed attorney. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Welton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2006.
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Veterans Affairs respiratory therapist pleads guilty to stealing and selling COVID-19 respiratory suppliesRead the Press Release
Seattle - A respiratory therapist at the Veterans Affairs Medical Center in Seattle pleaded guilty today in U.S. District Court in Seattle to theft of government property, announced U.S. Attorney Brian T. Moran. GENE WAMSLEY, 41, of Bonney Lake, Washington, admits stealing a ventilator and other respiratory medical equipment in the midst of the COVID-19 pandemic and selling it for his own gain. WAMSLEY faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 11, 2021.
According to records filed in the case, the investigation began in January 2020 when VAMC reported two bronchoscopes, used for examining a patient’s airway, went missing from the hospital. A third bronchoscope was reported missing in April 2020. In all, WAMSLEY admits stealing and selling three bronchoscopes worth over $100,000 for just $15,750. WAMSLEY sold the scopes to a Florida resident via eBay. When WAMSLEY’s home was searched in June, law enforcement seized a fourth bronchoscope and a $6,000 sleep apnea device called a WatchPat that had been stolen from the VA Medical Center.
Further investigation revealed that in April 2020, WAMSLEY also stole a $9,950 respirator and sold it via eBay to an Ohio man for just $6,000.
The total loss to the United States from the thefts is $132,291.
The case is being investigated by the Veterans Affairs Office of Inspector General (VA-OIG). The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Vermillion Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Vermillion, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Pat Aske Win Jones, age 32, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted for Conspiracy to Distribute a Controlled Substance (methamphetamine) by a federal grand jury on March 3, 2020. She pled guilty on June 24, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately March 2020.
On May 29, 2019, a vehicle Jones was driving in, for the purposes of transporting methamphetamine, was stopped and searched by law enforcement. Inside the vehicle, law enforcement located over 4,000 grams of methamphetamine.
This case was investigated by the Drug Enforcement Agency, South Dakota Division of Criminal Investigation, Sioux Falls Area Drug Task Force, and the Iowa State Patrol. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
United States Attorney John F. Bash Announces ResignationRead the Press Release
SAN ANTONIO, Tex. – U.S. Attorney John F. Bash announced today that he will resign from the Department of Justice on Friday, October 9, 2020, at 11:59pm. U.S. Attorney Bash issued the following statement:
This Friday—eight years to the day after I first joined the Department of Justice—I will step down as United States Attorney for the Western District of Texas. Last month I accepted an offer for a position in the private sector and informed the Attorney General of my decision. I tendered formal letters of resignation to both the President and the Attorney General this morning.
I am grateful to the President, Senator John Cornyn, Senator Ted Cruz, and the other members of the United States Senate for the opportunity to serve the people of Texas. I am also grateful to former Counsel to the President Donald F. McGahn II, who gave me steadfast support throughout the nomination and confirmation process, and to former Solicitor General Donald B. Verrilli, Jr., for first bringing me into the Department in 2012. And I am honored that during my tenure as U.S. Attorney, the Attorney General has seen fit to entrust me with significant responsibilities and to appoint me to his Advisory Committee.
I am also deeply indebted to the over 300 attorneys and staff members who work in our office, including the 73 Assistant United States Attorneys hired during my tenure. Through their tireless efforts, we have held accountable child abusers, drug-cartel leaders, gang members, bank robbers, embezzlers, fraudsters, scammers, and corrupt public officials. The exceptional public servants of our office have continued to perform at a high level during the national health crisis.
I owe special gratitude to my executive team—First Assistant U.S. Attorney Ashley Hoff, Executive Assistant U.S. Attorney Kristy Callahan, Counselor Mickey Tapken, Criminal Division Chief Christina Playton, Civil Division Chief Mary Kruger, Administrative Division Chief Gretchen Randall, and Legal Support Division Chief Lora Makowski. They are all women of extraordinary integrity, intelligence, and candor. I am proud to have served alongside them.
Most importantly, I would not have succeeded in this demanding role without the love and support of my wife, Zina, my daughter and son, my parents, my wife’s parents and siblings, and of course the Lord.
The Attorney General has elected to appoint Gregg Sofer to succeed me as U.S. Attorney. Gregg is an inspired choice. He is a veteran Department of Justice attorney, serving first in the National Security Division at Main Justice and then for over a decade as a national-security specialist in our Austin office. In the latter role, he built a reputation as a dogged and tremendously effective prosecutor. In 2018, I selected Gregg to serve as our office’s Criminal Division Chief, where he designed and implemented significant improvements to our operations, oversaw thousands of prosecutions, and provided me with invaluable advice on a range of important issues and cases. Since early this year, he has served in Washington, D.C., as Counselor to the Attorney General. He will make an excellent U.S. Attorney.
Like any job, serving as U.S. Attorney has had its high points and its low points. No day was worse than August 3, 2019, when we lost so many of our fellow Americans and our Mexican brothers and sisters to an almost inconceivable act of hatred. But there was nothing more soul-stirring than the way El Pasoans came together in the wake of that nightmare in a spirit of love and perseverance.
I hope that I have discharged my authority wisely and have improved the safety and security of my fellow Texans. I leave the Department with a profound respect for its people, its traditions, and its importance to our constitutional democracy.
Bash, 39, was appointed by President Trump to the position of United States Attorney in December 2017. He previously served in the Department of Justice as an Assistant to the Solicitor General from 2012 to 2017, and he served as Associate Counsel to the President in 2017.
Attorney General William Barr offered the following statement:
I offer my gratitude to John Bash for his service as United States Attorney for the Western District of Texas. Since 2017, John has successfully led one of the largest U.S. Attorney’s Offices in the country. John has made significant contributions to the Department of Justice, including his service on the Attorney General’s Advisory Committee. I appreciate his service to our nation and to the Justice Department, and I wish him the very best.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Michael Bailey Announces Intent to Seek Death Penalty Against Ryan SchlesingerRead the Press Release
TUCSON, Ariz. – Last week, the United States Attorney’s Office for the District of Arizona filed an amended Notice of Intent to seek the death penalty against Ryan Phillip Schlesinger.
On November 29, 2018, deputies with the United States Marshals Wanted Task Force attempted to serve a felony arrest warrant on Schlesinger for allegedly stalking a Tucson police officer. As agents were trying to serve the warrant on Schlesinger at his Tucson residence, he began shooting at the officers, striking and killing a Deputy United States Marshal. After a standoff with law enforcement that lasted about an hour, Schlesinger was taken into custody.
In December 2018, Schlesinger was indicted on 13 counts, including First Degree Murder of a Federal Officer and Using a Firearm During and in Relation to a Crime of Violence Resulting in Death, both of which carry a possible sentence of death. On September 30, 2020, the United States Attorney’s Office filed a superseding indictment against Schlesinger. Schlesinger is set to be arraigned on the superseding indictment on October 22 before Magistrate Judge D. Thomas Ferraro.
The Federal Bureau of Investigation is investigating this matter. Assistant United States Attorneys Erica Seger and Sarah Houston, District of Arizona, Tucson, are handling the prosecution.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
NOI to Seek Death Penalty for Schlesinger
CASE NUMBER: CR-18-02719-TUC-RCC (BGM)
RELEASE NUMBER: 2020-080_Schlesinger NOI# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Jersey City Gang Members Charged with Murdering Pregnant Woman and Two OthersRead the Press Release
NEWARK, N.J. – Two members of the Neighborhood Bloods street gang, which operated in Jersey City, New Jersey, have been indicted for the Jan. 16, 2017, murder of three Jersey City residents, including a pregnant 25-year-old woman, Attorney Craig Carpenito announced today.
Markell Brown, a/k/a “Sayboy,” 32, and Terence Shaw, a/k/a “Sweet Meat,” 32, both of Jersey City, are each charged with conspiracy to commit murder in aid of racketeering, three counts of murder in aid of racketeering, three counts of discharging a firearm in furtherance of a crime of violence, and three counts of causing death through use of a firearm.
According to documents filed in this case and statements made in court:
On Jan. 16, 2017, Brown and Shaw allegedly murdered a rival gang member with whom they had been feuding, as well as the gang member’s pregnant girlfriend and their own associate, who had accompanied them to commit the murders. Brown and Shaw used a stolen U-Haul truck and two-way walkie-talkie radios during the murders. They used their associate to obtain access to the rival gang member’s apartment. After entering that residence on Fulton Avenue in Jersey City shortly after 10:00 p.m., Brown and Shaw executed the rival gang member, shooting him in the back of the head, the left arm, and the right shoulder. They also shot the woman in the back of the head and the chest. As Brown and Shaw left, they shot their associate in the chest in order to eliminate the possibility that he would provide information to law enforcement.
Brown and Shaw each face a potential mandatory life sentences for each of the counts charging murder in aid of racketeering. For each count of discharging a firearm during a crime of violence, they face a potential mandatory consecutive sentences of 10 years in prison. The count of conspiracy to commit murder in aid of racketeering carries a maximum sentence of 10 years in prison. The counts of causing death through use of a firearm each carry a maximum sentence of life in prison.
U.S. Attorney Craig Carpenito credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer, Acting Chief of the U.S. Attorney’s Violent Crime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tulsa Man Pleads Guilty to Bank RobberiesRead the Press Release
A man who robbed two Tulsa banks, claiming to have a bomb and firearms, pleaded guilty Monday in federal court, announced U.S. Attorney Trent Shores.
Thomas Lawrence Dean, 51, of Tulsa, pleaded guilty to two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a .38 Special revolver and associated ammunition. According to the plea agreement, the United States and the defendant agreed to a sentence of 12 years in federal prison. Chief U.S. District Judge John E. Dowdell will make the final sentencing determination at a hearing set for Jan. 5, 2021.
“Think about being the bank teller who was handed a note by a robber threatening to have a bomb or to go on a killing spree. What a terrifying experience. Thankfully, the FBI and Tulsa Police teamed up to investigate the bank robbery and arrested Thomas Dean,” said U.S. Attorney Trent Shores. “I am pleased to see Mr. Dean admit his guilt and accept responsibility for his actions, and I am thankful for the work of Assistant U.S. Attorney Robert Raley who pursued justice for the victims in this case.”
In his plea agreement, Dean admitted to robbing an International Bank of Commerce (IBC) on July 1, 2019. Dean stated that he disguised himself and carried a black bag containing an apparatus that looked like an explosive device. According to court documents, Dean approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. He left the bank with a total of $500 then discarded the black bag with the fake explosive device and two BB guns inside.
On July 10, 2019, Dean also robbed an Arvest Bank, handing the teller a note that stated, “This is a robbery….Don’t make this a killing spree.” Dean also indicated in the note that he had a firearm. The defendant left the bank with $1,250 but was later located by Tulsa Police Officers.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Tucson Woman Sentenced to 12 Years for Causing Fatal Fentanyl OverdoseRead the Press Release
TUCSON, Ariz. – Today, Jocelyn Lopez-Sanchez, 23, of Tucson, Arizona, was sentenced by U.S. District Court Judge Frank R. Zapata to two concurrent sentences of 12 years in prison, followed by three years of supervised release. Lopez-Sanchez previously pleaded guilty to distribution of fentanyl resulting in death and importation of fentanyl resulting in death.
On November 1, 2018, Lopez-Sanchez provided several blue “M-30” pills to individuals at a party in Tucson, one of whom died. Evidence showed that Lopez-Sanchez brought the pills into the United States from Mexico the day before the party in Tucson.
The Tucson Police Department and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
Lopez-Sanchez Plea AgreementCASE NUMBER: 19-CR-01166-FRZ-LAB
RELEASE NUMBER: 2020-081_Lopez-Sanchez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Trucking School Owner Sentenced to 4 Years in Federal Prison for Fraudulently Obtaining $4.1 Million in Veterans’ Education BenefitsRead the Press Release
LOS ANGELES – The owner of a San Fernando Valley trucking school was sentenced today to 48 months for leading a sophisticated scheme to defraud the United States Department of Veterans Affairs out of more than $4 million in education benefits involving over 100 veterans who did not attend classes.
Emmit Marshall, 53, of Woodland Hills, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $4.1 million in restitution. Marshall pleaded guilty in July 2019 to five counts of wire fraud.
At the hearing, Judge Wilson stated that this “was a very serious fraud on the government,” which involved “calculated, criminal acts that cannot be condoned.”
Marshall is the owner and president of the Chatsworth-based Alliance School of Trucking (AST). Marshall and a co-defendant, AST Vice President Robert Waggoner, 57, of Canyon Country, recruited eligible veterans to take trucking classes paid under the Post-9/11 GI Bill. AST was certified to offer classes under the Post-9/11 GI Bill, including a 160-hour Tractor Trailer & Safety class and a 600-hour Select Driver Development Program.
Under the Post-9/11 GI Bill, the VA paid tuition and fees directly to the school at which veterans were enrolled. The VA also paid a housing allowance to veterans enrolled full-time in an approved program, and, in some cases, the VA paid for books and supplies for veterans’ benefit.
From July 2011 to April 2015, Marshall and Waggoner convinced more than 100 veterans to participate by telling them they were entitled to VA education benefits, even if they did not attend classes. Despite not taking classes, the veterans who agreed to join the scheme accepted education benefits for housing while AST collected the benefits for tuition, resulting in a total loss to the VA of at least $4.1 million.
In addition, Marshall resorted to occasionally using veterans’ personal information to sign them up for benefits, forging signatures, sometimes without the veterans’ permission. Finally, in an attempt to obfuscate the overall scheme and the forgeries of student enrollment paperwork, Marshall directed the veteran-students to lie to VA investigators and ordered the destruction of AST paperwork by co-schemers.
“[Marshall] profited most from this conduct, pocketing nearly $1 million himself, which he used for jewelry, a cruise, a trip to Hawaii, property taxes on his Woodland Hills residence, purchase of a Ford F-150 and purchase of semi-tractor trailers for a new business,” prosecutors wrote in their sentencing memorandum.
Waggoner pleaded guilty on February 24 to five counts of wire fraud. His sentencing hearing is scheduled for March 15, 2021, at which time he will face a statutory maximum sentence of 100 years in federal prison.
This matter was investigated by the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Justice Office of the Inspector General, and the FBI.
This case was prosecuted by Assistant United States Attorney Kimberly D. Jaimez of the Major Frauds Section.
Sunnyvale Man Pleads Guilty to Tax CrimesRead the Press Release
SACRAMENTO, Calif. — Cory Beck, 39, of Sunnyvale, pleaded guilty today to three counts of filing false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Beck worked in the information technology department of an electric vehicle and clean energy company based in Palo Alto. In his position, Beck had access to the company’s inventory of Apple MacBooks. From October 2015 through March 2018, Beck stole MacBooks from the company and sold them for cash. In total, Beck made over $220,000 from selling the stolen laptops. He failed to report any of the cash he received from the sales on his tax returns for 2015, 2016, and 2017, which were processed in Fresno.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Beck on Jan. 4. Beck faces a maximum statutory penalty of three years in prison and a $100,000 fine on each of the three counts to which he pleaded guilty. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
St. Louis Man Pleads Guilty to Conspiracy to Distribute Fentanyl and Drug-Related MurderRead the Press Release
ST. LOUIS, MO – Armond Calvin, of St. Louis City, pleaded guilty today to one count of conspiracy to distribute fentanyl and one count of using a firearm to commit murder in furtherance of a drug trafficking crime. Calvin, 22, appeared before United States District Judge Catherine D. Perry.
According to the plea agreement, Calvin was a member of a violent drug trafficking organization that distributed fentanyl and other illegal drugs to drug customers in the St. Louis Metropolitan area. Members of the organization maintained various cellular telephones, which drug customers would call to obtain fentanyl. Calvin and other members of the conspiracy shared the phones, taking turns distributing fentanyl to customers who called the phone numbers.
On December 3, 2016, Calvin and other gang members learned a prospective customer had purchased fentanyl from a rival drug dealer, instead of from Calvin’s drug trafficking organization. Calvin and other members of his gang then tracked the rival dealer’s vehicle to the area of the Meramec Market, near the intersection of Oregon Avenue and Meramec Street in the City of St. Louis. At that location, Calvin, armed with a Glock 27, .40 caliber firearm fitted with a laser sight, leaned out of his own vehicle’s window and opened fire on the rival vehicle, striking and killing the backseat occupant, victim David Leslie Bryant, III. As Calvin was shooting, a black knit hat fell off Calvin’s head and onto the street. Later forensic analysis revealed Calvin’s DNA on the hat. The Glock 27, .40 caliber firearm was recovered several months later following the crash of a vehicle in which Calvin was a passenger, and ballistics analysis confirmed it was the murder weapon.
As part of his guilty plea, Calvin agreed to a recommended sentence of twenty years in prison.
This plea is connection with the on-going U.S. Attorney’s Office Project Safe Neighborhoods Initiative and investigation into drug distribution at the Clinton-Peabody public housing complex. The investigation has included the execution of more than 15 federal search warrants resulting in the seizure of numerous firearms and controlled substances and was the subject of an important public forum involving law enforcement, citizens, and residents of the Clinton-Peabody complex held on August 3, 2018, at the Peabody Elementary School.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, and the St. Charles County Sheriff’s Department, with assistance from the St. Louis Circuit Attorney’s Office. Assistant United States Attorneys Lisa Yemm and Angie Danis are handling the case for the United States Attorney’s Office.
Spearfish Man Charged with Sexual Exploitation of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man was charged in federal district court with Attempted Sexual Exploitation of a Minor.
Bernard Andrew Wagner, Jr., age 57, was charged on September 23, 2020. Wagner appeared before U.S. Magistrate Judge Daneta Wollmann on September 25, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Wagner attempting to sexually exploit an undercover law enforcement agent posing as a minor. The charge is merely an accusation and Wagner is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, Department of Homeland Security, Spearfish Police Department, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Wagner was detained pending trial. A trial date has not been set.
Somerset County Man Sentenced for Distributing OxymorphoneRead the Press Release
JOHNSTOWN, Pa. – A Somerset County, Pennsylvania resident has been sentenced in federal court to three years’ probation on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joseph P. Barefoot, 63, of Berlin, Pa.
According to information presented to the court, from Feb. 1, 2017, to Aug. 14, 2017, Barefoot distributed a quantity of oxymorphone.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the United States Postal Service, Office of Inspector General for the investigation that led to the successful prosecution of Barefoot.
Sioux City Man Sent to Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A felon and illegal user of controlled substances who unlawfully possessed a firearm was sentenced to more than three years in prison.
Robert Schonrock, age 50, from Sioux City, received the prison term after a March 23, 2020, guilty plea to one count of Possession of a Firearm by a Felon and one count of Possession of a Stolen Firearm.
Information presented by the United States at the detention, change of plea, and sentencing hearings revealed that on or about April 30, 2019, Rodolfo Velasco absconded from supervised release in United States District Court for the District of Nebraska. On or about May 30, 2019, Velasco was found, in possession of drugs and a handgun, at the home of Schonrock, in Sioux City, Iowa. Schonrock, a thrice convicted felon himself, was found in possession of a loaded handgun that had been reported stolen.
Schonrock was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Schonrock was sentenced to 41 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
On May 29, 2020, Velasco was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Velasco was sentenced to 77 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Schonrock is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Marshal’s Service and the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4058.
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