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Monday 5 October 2020
Sex Offender Arrested at LAX Attempting to Leave U.S., Allegedly Failed to Provide Authorities Notice of His International Travel PlansRead the Press Release
LOS ANGELES – A registered sex offender has been charged in a criminal complaint alleging he attempted to travel from Los Angeles to Egypt without giving law enforcement advance notice of his foreign travel plans as required by federal law, the Justice Department announced today.
Jehovany Sanchez, 36, of South Gate, was charged on Friday with one count of committing an international travel reporting violation. Sanchez made his initial court appearance on late Friday afternoon in United States District Court. His bond was set at $50,000 and his arraignment has been scheduled for October 22.
According to an affidavit filed with the complaint, on September 30, without providing to law enforcement any notice of foreign travel, Sanchez allegedly attempted to fly from Los Angeles International Airport to Cairo with a layover in Paris. Sanchez allegedly boarded the Paris-bound flight, which left its gate and prepared for takeoff, but was directed by law enforcement to return to the gate. Law enforcement had been notified that Sanchez was a ticketed passenger and sex offender on the flight who had not notified them of his foreign travel plans, the affidavit states. Sanchez was ordered to exit the airplane and he was arrested at the gate, according to the affidavit.
In 2012, Sanchez was convicted in Ventura County Superior Court of committing a lewd act upon a child. According to his arrest report in that case, Sanchez – then 27 years old – engaged in illicit sexual contact with a 15-year-old girl. He was sentenced to two years in state prison and is required to register as a sex offender for life under the federal Sex Offender Registration and Notification Act (SORNA).
On Sanchez’s signed sex offender registry document dated March 30, he initialed next to a statement that reads, “Federal law requires me to notify my registering agency no less than 21 days before I intend to travel internationally,” according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Sanchez would face a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the United States Marshals Service, United States Customs and Border Protection, the South Gate Police Department, and the Los Angeles Airport Police. The Drug Enforcement Administration provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorney Jeremiah M. Levine of the General Crimes Section.
Seventeen Charged in Poly-Drug Trafficking Conspiracy Spanning Multiple StatesRead the Press Release
Jackson, TN – Seventeen individuals have been charged in federal court with operating a multiple–state drug trafficking organization. D. Michael Dunavant, U.S. Attorney announced the unsealing of the federal criminal complaint today.
U.S. Attorney D. Michael Dunavant said, "Criminal enterprises that distribute harmful drugs into West Tennessee can no longer hide. We are taking the fight to the gangs in order to dismantle their drug trafficking organizations and remove them from our streets. I commend the outstanding investigative efforts by DEA and our state and local law enforcement partners in this important and impactful case."
The following individuals have been arrested and charged with conspiracy to distribute methamphetamine, heroin, fentanyl, cocaine and marijuana into and throughout West Tennessee. In March 2019, a DEA investigation was initiated in the Jackson, Tennessee area. Investigators used wiretaps along with other surveillance, confidential sources, traffic stops, search warrants, and gang intelligence to investigate this drug trafficking organization. Agents seized 106.5 lbs. of methamphetamine (ice), 500 fentanyl pills, and an additional 1.25 lbs. of fentanyl, and 3.5 grams of heroin. Each defendant’s role in the drug trafficking conspiracy is outlined in the criminal complaint:
Methamphetamine Conspiracy:
• Terry Smith, a/k/a "Ali," a/k/a "Cockeye", 33 of Lauderdale County (TDOC Custody)
• Rodney Ayers, a/k/a "P-Rod," 47 of Shelby County
• Horace McNeary, a/k/a "HB," 35 of Henry County
• Brianna Norsworthy, 23 of Calloway County, Kentucky
• -SEALED-
• Dustin Chambers, a/k/a "SNOW," 35 of Madison County
• Anthony Hines, a/k/a "BYRD," 41 of Shelby County
• Kayla Henderson, 28 of Shelby County
• Teddy Reed, a/k/a "PT," 40 of Shelby County
• Jermichael Buggs, 33 of Shelby County
• -SEALED-
• Danielle Cunningham, 35 of Shelby County
• Aerielle Coleman, 31 of Shelby County, and
• James Dumas, a/k/a "DOO DOO," 45 of Shelby County
Fentanyl Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE"
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Kayla Henderson
• Teddy Reed, a/k/a "PT," and
• James Dumas, a/k/a "DOO DOO"
Cocaine Conspiracy:
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Teddy Reed, a/k/a "PT"
• Jermichael Buggs
• -SEALED-
• Michael Broady, 49 of Shelby County
• -SEALED-
• Tracy Coleman, 49 of Shelby County, and
• James Dumas, a/k/a "DOO DOO"
Heroin Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE
• Rodney Ayers, a/k/a "P-ROD,"
• Horace McNeary, a/k/a "HB,"
• Kayla Henderson,
• Teddy Reed, a/k/a "PT,"
• -SEALED-, and
• James Dumas, a/k/a "DOO DOO"
Marijuana Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Kayla Henderson
• Teddy Reed, a/k/a "PT"
• Jermichael Buggs
• Michael Broady and
• James Dumas, a/k/a "DOO DOO"
Further investigation revealed that Terry Smith a/k/a "Ali," a/k/a "Cockeye", Chief of Security for the Vice Lords street gang, arranged large quantities of methamphetamine, marijuana, cocaine, heroin and fentanyl to be shipped into the Western District of Tennessee from Texas and Arizona. He utilized a large distribution network that ranged from Western Kentucky to Northwest Mississippi. Smith was arrested by the U.S. Marshals Service while in TDOC custody at the West Tennessee State Penitentiary, and transferred to federal pre-trial custody.
This case was investigated by the Drug Enforcement Administration (DEA); West Tennessee Drug Task Force; Jackson Police Department; Jackson-Madison County Metro Narcotics Unit; Madison County Sheriff’s Department; Paris, Tennessee Police Department; Henry County Sheriff’s Department; Murray, Kentucky Police Department; Kentucky State Police; Arkansas State Police; Tennessee Department of Correction Office of Investigations & Compliance (TDOC-OIC); and the U.S. Marshals Service (USMS).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. Each charged defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law. The case will be presented to a federal grand jury at a later date to consider an indictment against the defendants.
Assistant U.S. Attorney Hillary Lawler Parham is prosecuting this case on behalf of the government.
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Rutherford County Escapee Sentenced to 19.3 Years in Federal Prison for Violent Crime SpreeRead the Press Release
NASHVILLE, Tenn. – October 5, 2020 – Two Nashville, Tennessee men responsible for a violent crime spree in the mid-state during December 2017 and January 2018, have been sentenced to lengthy federal prison terms, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Dewayne Halfacre, 45, was sentenced Thursday to 232 months in prison for his role in four mid-state robberies. Timothy Howell, 54, was previously sentenced in June to 157 months in prison. Both pleaded guilty in February to conspiracy to commit Hobbs Act robbery and to four counts of robbery affecting commerce, after being indicted by a federal grand jury in 2019.
During a one-month period beginning on December 16, 2017, the pair robbed four convenience stores including the Mapco on Highway 70; the Delta Express on Old Hickory Boulevard on December 21; the Shell gas station on White Bridge Road on January 13, 2018, all in Nashville; and the Almaville Market in Arrington, Tennessee, on January 19, 2018. During each of these robberies, the defendants took cash from the register and other items and threatened the store employees with a box cutter during two robberies and a handgun during the others.
Court documents also indicate that in addition to the robberies above, Halfacre and Howell engaged in other criminal acts during this time period, including robbing an 81 year-old woman in Clarksville, Tennessee on December 16, 2017; attempted to break into the Family Market in Rockvale, Tennessee on January 16, 2018; burglarized Oldham’s Market in Hartsville, Tennessee on January 18, 2018; robbed a Mapco store in Ringgold, Georgia on January 22, 2018; and less than an hour later they attempted to burglarize Andy’s Market in South Pittsburg, Tennessee.
Later on January 22, 2018, deputies with the Marion County Sheriff’s Office located Halfacre and Howell in a vehicle parked at a funeral home. The pair then led law enforcement on a high speed chase before crashing the vehicle and fleeing into the woods. Howell was captured a short time later but Halfacre eluded authorities until the following day when he attempted to break into a house. When a Marion County Sheriff’s deputy responded to the break-in, he encountered Halfacre, who drew a handgun, pointed it at the deputy and threatened to kill him. Halfacre then took the deputy’s patrol car and fled as another deputy shot one of the vehicle’s tires. Another pursuit ensued and the patrol car was found crashed and abandoned a short time later.
Several days later, on January 26, 2018, after a large scale manhunt, Halfacre was tracked to an uninhabited house in Marion County and surrounded by law enforcement. Halfacre then contacted the Tennessee Bureau of Investigation (TBI), agreed to surrender, and was taken into custody.
On October 10, 2018, while being held at the Rutherford County Jail, Halfacre and another inmate assaulted a correctional officer and escaped custody. They stole a nearby vehicle and hid in abandoned houses for approximately 36 hours before being captured.
U.S. Attorney Cochran commended the work of the many law enforcement agencies involved in this case, including the FBI; the TBI; the Rutherford County Sheriff’s Office; the Metropolitan Nashville Police Department; and the Marion County Sheriff’s Office; and Assistant U.S. Attorney Brooke K. Schiferle, who prosecuted the case.
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Rochester Man Pleads Guilty to RobberiesRead the Press Release
CONCORD - Thomas Hegarty, 26, of Rochester, pleaded guilty in federal court to attempted bank robbery and robbery charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 9, 2020, at around 4:00 a.m., Hegarty entered a Circle K gas station in Rochester, New Hampshire, showed the teller a hammer, and stole cash from the register. Later that morning, Hegarty entered a bank in Dover, New Hampshire, and passed the teller a note demanding money and indicating that he had a weapon. Tellers locked themselves in an office and called the police. Hegarty jumped over the teller counter and unsuccessfully attempted to open the teller drawers. He then fled the bank without taking any money. Investigators released surveillance photographs from the robberies to the public and identified and apprehended Hegarty later that day. At the time of the robberies, Hegarty was on federal supervised release.
Hegarty is scheduled to be sentenced on January 20, 2021.
“Robberies of banks and other commercial establishments jeopardize the safety of our citizens and will not be tolerated,” said U.S. Attorney Murray. “Federal law provides substantial penalties for those who engage in these crimes and they are a high priority for federal prosecution. We will continue to work closely with the FBI and all of our law enforcement partners to identify and prosecute violent criminals in order to ensure that residents of New Hampshire can have confidence that their communities are safe.”
“Concerned citizens are among the FBI’s most valuable assets when it comes to apprehending potentially dangerous lawbreakers like Thomas Hegarty, whose criminal conduct escalated in the course of a single day from robbing a gas station with a hammer to attempting to rob a bank while threatening to be armed,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We thank those who bravely stepped forward to identify him, and in doing so helped make today’s guilty pleas possible. This collaborative effort to address violent crimes within our communities is just one example of how we can really make a difference when we all work together.”
This matter was investigated by the Federal Bureau of Investigations with assistance from the Rochester Police Department and the Dover Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Ringleader of Gloucester City Drug Ring Admits Trafficking Oxycodone, Adderall, and Xanax and Engaging in SNAP FraudRead the Press Release
CAMDEN, N.J. – A Gloucester City, New Jersey, man today admitted conspiring to distribute and selling oxycodone, Adderall, and Xanax and defrauding the federal Supplemental Nutrition Assistance Program (SNAP) in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.
Rocco DePoder, 67, of Gloucester City, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone, distributing a quantity of oxycodone, and unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits.
According to documents filed in this case and statements made in court:
DePoder admitted that on multiple occasions from June 2019 to March 2020, he worked with Erick Bell and others to sell oxycodone in New Jersey. DePoder obtained 60 80 mg. oxycodone pills for $25 per pill from Bell on February 3, 2020, with the intention of distributing the pills to other people. DePoder also admitted to purchasing resale quantities of oxycodone, Adderall, and Xanax from conspirators and reselling the pills to others, serving as a leader of criminal activity in that conspiracy. DePoder admitted to selling oxycodone, Adderall, and Xanax pills to another person in exchange for a total of $8,374 in SNAP benefits, which were on Electronic Benefit Transfer (EBT) cards, and then personally using some of those SNAP benefits and selling and giving EBT cards to others so they could unlawfully use the SNAP benefits. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture. EBT cards are similar to debit cards and are used to make food purchases with SNAP benefits – when an EBT card is swiped at a food store authorized for participation in the SNAP program, the amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
The drug conspiracy count carries a maximum potential punishment of 20 years in prison; the count of drug distribution carries a maximum potential penalty of five years in prison; both counts are also punishable by a fine of $1 million, or twice the gross loss or gain caused by the offenses. The count of SNAP benefits fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of his guilty plea, DePoder will forfeit multiple items, including $6,598 in currency, and pay $8,374.42 in restitution. Sentencing is scheduled for Feb. 8, 2021.
Five other defendants – Marcus Rushworth, 47, of Gloucester City, New Jersey; Kenneth Rushworth, 59, of Gloucester City, New Jersey; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; and Steven Walker, 47, of Camden, New Jersey, previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the U.S. Attorney’s Office’s Camden Office and Sara F. Merin of the Special Prosecution Division in Newark.
Rapid City Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Jacob Gavin Robert McCloskey, age 22, was sentenced to 15 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.
McCloskey was indicted by a federal grand jury on March 3, 2020. He pled guilty on June 25, 2020.
The conviction stemmed from an incident on or about October 22, 2019, when McCloskey knowingly possessed a SCCY Industries, model CPX-2, 9x19mm Luger caliber, semi-automatic pistol bearing serial number 657216.
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 the local community 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 Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
McCloskey was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jesse Warbonnett, age 23, was charged on September 17, 2020. Warbonnett 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 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Warbonnett, previously convicted of a felony and prohibited from possessing firearms, possessing a CZ, 7.62x25 caliber, semi-automatic pistol in September 2020 in Rapid City. The charge is merely an accusation and Warbonnett is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Warbonnett was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jerel Gay, age 26, was charged on September 17, 2020. Gay 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 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Gay, previously convicted of a felony and prohibited from possessing firearms, possessing a Smith & Wesson 9mm semi-automatic pistol in August 2020 in Rapid City. The charge is merely an accusation and Gay is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Gay was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Isaiah Cross White, age 36, was charged on September 17, 2020. Cross White 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 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Cross White, previously convicted of a felony and prohibited from possessing firearms, possessing a Smith & Wesson double-action revolver in June 2020 in Rapid City. The charge is merely an accusation and Cross White is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Cross White was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Marvin Brings Plenty, age 30, was charged on September 17, 2020. Brings Plenty appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Brings Plenty, previously convicted of a felony and prohibited from possessing firearms, possessing a Hi-Point 9mm semi-automatic pistol in May 2020 in Rapid City. The charge is merely an accusation and Brings Plenty is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Brings Plenty was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for two counts of Sexual Abuse.
Brandon Lindemann, a/k/a Brandon Lindeman, age 35, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is any term of imprisonment up to life in a federal prison, and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Lindemann sexually abusing a juvenile female at a time when she was incapable of consent, near Porcupine, in February 2020.
The charges are merely accusations and Lindemann is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Lindemann was released on bond pending trail. A trial date has been set for December 8, 2020.
Portland Resident Accused of Throwing Rocks at Federal Officers Protecting Federal PropertyRead the Press Release
PORTLAND, Ore. – Christian Burke, 23, of Portland, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.
The court arraigned Burke on a 1-count information alleging misdemeanor assault on a federal officer. On the afternoon of August 22, 2020 Department of Homeland Security, Federal Protective Services (FPS) Officers were assigned to protect federal property located at the Edith Green – Wendell Wyatt (EGWW) Federal Office Building during protests and demonstrations taking place downtown.
On that date, a protest group was marching south down 3rd avenue in front of the EGWW entrance. There also was a counter-protest group engaging the protest group. During this engagement, multiple objects were being thrown by individuals in the counter-protest group in the direction of the other protest group and federal law enforcement officers. One of the FPS agents was observing the protest and counter protest activity from federal property when the agent saw a large rock thrown directly towards him coming from the crowd. The rock struck a tree near the agent. Another officer described a person later identified as Burke as the one who threw the rock. That observation was confirmed with video evidence.
Burke was released pending trial scheduled for December 8, 2020 before U.S. District Court Judge Michael W. Mosman.
This case was investigated by Federal Protective Services and is being prosecuted by Assistant United States Attorney Parakram Singh. An information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Sentenced for Embezzlement from Oglala Lakota CollegeRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Embezzlement from an Indian Tribal Organization was sentenced by Judge Jeffrey L. Viken, U.S. District Court.
John Jay Hussman III, age 33, was sentenced on September 24, 2020, to time served, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $3,086.52 in restitution to Pizza Hut.
Hussman was indicted by a federal grand jury in March 2019. The charge related to Hussman coming into possession of a check written on the account of Oglala Lakota College to OST Financial Services in the amount of $2,004.25. Hussman endorsed the check in his own name and deposited it in his personal checking account in Gordon, Nebraska, on December 17, 2018. Hussman then engaged in a spending spree, depleting his checking account by making purchases at various local and online retailers, making ATM withdrawals, and making a payment to a credit card.
Hussman paid this money back to the Oglala Lakota College before sentencing. As part of the plea agreement, Hussman was also ordered to pay $3,086.52 in restitution to Pizza Hut and a second Larceny charge was dismissed.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Pennsylvania Man Sentenced to Serve 292 Months in Federal Prison for Child Sexual EnticementRead the Press Release
OKLAHOMA CITY – AREJAE GANGOB MEDINA, 26, of Pennsylvania, was sentenced today to serve 292 months in federal prison for child sexual enticement, announced U.S. Attorney Timothy J. Downing.
According to court documents, Medina met online a 13-year-old girl from the OKC metro area, the pair exchanged pornographic images of themselves, and Medina ultimately traveled cross-country to the OKC metro area, where he engaged in video-recorded sexual intercourse with the girl. The case came to light when the child’s father called the police on October 20, 2019, reporting that his daughter had snuck out of the home and met up with an unknown man.
Officers began a nighttime search and discovered an SUV with Pennsylvania plates parked on the side of a new-construction road. Inside, officers discovered Medina and the missing girl. A search of Medina’s cell phone revealed two videos of him and the girl engaging in sexual acts. Also on Medina’s phone were numerous pornographic images of the girl, which he had acquired before his trip to Oklahoma—as well as child pornography depicting other girls.
On November 19, 2019, a federal grand jury indicted Medina with child sexual enticement, child exploitation, and transportation of child pornography.
On February 4, 2020, Medina pleaded guilty to child sexual enticement before Judge Patrick R. Wyrick. Today, Judge Wyrick sentenced Medina to serve 292 months’ imprisonment, followed by a lifetime of Supervised Release.
This case is the result of an investigation by the Warr Acres Police Department, with cell phone forensic analysis assistance from the Oklahoma State Bureau of Investigation. Assistant U.S. Attorney Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Owner of Montana Construction Company Pleads Guilty to Employment Tax FraudRead the Press Release
A Great Falls, Montana, businessman pleaded guilty today to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Trennis Baer owned and operated Baer Construction based in Great Falls, Montana. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not meet these legal requirements, despite the fact the company’s outside accountant from at least 2013 on prepared the appropriate employment tax returns and calculated the employment taxes due. In addition to not complying with his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
Chief U.S. District Judge Brian Morris scheduled sentencing for Jan. 28, 2021. At sentencing, Baer faces a maximum sentence of five years in prison. Baer also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew Hoffman and Eric Taffet of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Ohio Man Charged with Posing as Teen, Receiving Sexually Explicit Videos from Minor, Posting on TikTokRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Canaan Police Chief Leon Krolikowski announced that a federal grand jury in New Haven returned an indictment today charging BRIAN GRINNELL, 35, of Lakewood, Ohio, with distribution of child pornography.
As alleged in court documents, in March 2020, Grinnell posed as a 15-year-old girl and met a female, who at the time was under the age of 12, on Omegle, an online chat website and mobile application that allows users to interact with strangers. Shortly thereafter, he began communicating with the minor victim using the account name “alexisswimmer99” on Snapchat. Grinnell told the minor victim to take sexually explicit photos and videos of herself and send them to Grinnell over Snapchat. After the minor victim began to feel threatened by alexisswimmer99, she unfriended and blocked the alexisswimmer99 account.
It is further alleged that Grinnell, under the username “alexisswimmer9,” subsequently contacted a friend of the minor victim on TikTok and stated that unless the minor victim got in touch with him, he would post a video of the minor victim naked on TikTok. Grinnell then posted sexually explicit videos of the minor victim on TikTok. When a friend of the minor victim, who is also a minor, begged Grinnell not to post additional videos of the minor victim, Grinnell stated “I want a video of you begging me to not put them up. And you have to be topless in the video. If you don’t want any more of your friend stuff going out.” After the friend told Grinnell that they would call the police, Grinnell responded “How are they gonna find me?”
It is alleged that Grinnell then proceeded to post another video of the minor victim on TikTok.
Grinnell has been detained since his arrest on a criminal complaint on September 23, 2020.
If convicted of the charge of distribution of child pornography, Grinnell faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the New Canaan Police Department, with assistance from the Cuyahoga County (Ohio) Prosecutor’s Office and Cuyahoga County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Sarala V. Nagala.
Owner of Montana Construction Company Pleads Guilty to Employment Tax FraudRead the Press Release
WASHINGTON – A Great Falls, Montana, businessman pleaded guilty today to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Trennis Baer owned and operated Baer Construction based in Great Falls, Montana. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not meet these legal requirements, despite the fact the company’s outside accountant from at least 2013 on prepared the appropriate employment tax returns and calculated the employment taxes due. In addition to not complying with his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
Chief U.S. District Judge Brian Morris scheduled sentencing for Jan. 28, 2021. At sentencing, Baer faces a maximum sentence of five years in prison. Baer also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew Hoffman and Eric Taffet of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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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.
New York Man Admits to Traveling to Rhode Island to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – A New York man admitted to a federal court judge in Providence today that after befriending and engaging in sexually explicit communications online with a 15-year-old Rhode Island boy he relocated to Rhode Island and repeatedly engaged in illicit sexual activity with the minor.
Caleb Brown, 24, and the 15-year-old were discovered by Warwick Police in a baseball field dugout in August 2019, after a concerned citizen reported to police that a male was observed living in the dugout with what appeared to be a minor child.
According to information presented to the court, as Warwick officers arrived at the park Brown and the boy began to run away, but were quickly halted. Brown initially identified himself to police as “Clay Connors.”
After placing Brown in a police cruiser, the 15-year-old told police he met Brown online approximately six months prior and that he had been dating Brown for that period of time. The youngster told police that he had been spending nights outside with Brown, while telling his parent’s he was staying at a friend’s house.
Prior to traveling to Rhode Island from Bronx, New York, by bus to meet up with the 15-year-old in July 2019, Brown and the victim engaged in sexually explicit online communications and exchanged sexually explicit images. Officers viewed a steady stream of intimate and sexually explicit
text messages between Brown and the boy. The text messages also revealed discussions of where the two should meet and sleep, and Brown advising the youngster with ways to conceal the true nature of their relationship. For example, a text sent by Brown to the 15-year-old on August 8, 2019 read: “Just chill somewhere close. We need to come up with a code or protocol for this (expletive) cause I don’t want the whole town trying to figure us out.”
Investigators also discovered 12 videos taken by Brown of him engaged in sexual contact with the victim.
Appearing today before Mary S. McElroy, Brown pleaded guilty to travelling with intent to engage in illicit sexual conduct, announced United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun.
At sentencing on December 17, 2020, according to a plea agreement filed in this matter, the defendant faces a sentence of 60 months of incarceration.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun thank the FBI and the Rhode Island State Police Internet Crimes Against Children Task Force for their assistance in the investigation of this matter.
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New Orleans Man Sentenced for Conspiracy to Distribute HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on October 1 2020, RODNEY ROBINSON, age 61, of New Orleans, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to conspiracy to distribute heroin.
According to court records, ROBINSON and others conspired to distribute one kilogram or more of heroin in the New Orleans metropolitan area and elsewhere. ROBINSON personally sold heroin to customers in the New Orleans area.
Judge Ashe sentenced ROBINSON to 40 months of imprisonment followed by 3 years of supervised release and a $100 mandatory special assessment.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
Mountain Village Man Sentenced to over 7 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Jason Van Hoesen, age 46, of Mountain Village, Colorado, near Telluride, was sentenced today to serve 90 months (7.5 years) in federal prison, followed by 10 years on supervised release, for possession of child pornography. He was also ordered to pay $60,000 in restitution. During the course of the investigation, agents and officers recovered more than 10,500 child pornography files, including 281 videos depicting child pornography.
According to the stipulated facts contained in the plea agreement, the investigation into Van Hoesen was initiated by Colorado’s Internet Crimes Against Children (ICAC) Task Force. On December 14, 2018, a specific web search engine reported to the National Center for Missing and Exploited Children (NCMEC) that on November 15, 2018, an individual using a specific IP address uploaded a file of suspected child pornography.
NCMEC analysts reviewed and attempted to determine the jurisdiction for the incident reported. Once the analysis was complete, a cybertip was securely transmitted to Colorado’s ICAC Task Force. The Colorado Springs Police Department (CSPD) is the lead agency for this task force.
Cybertips are received and then securely transmitted to the agency affiliated with the image for further investigation. Upon receipt of this cybertip, CSPD reviewed the uploaded image, which depicted a nude prepubescent minor boy approximately 6 to 10 years old. A check through the American Registry for Internet Numbers reflected the IP address in question was registered to Mountain Village Metro Cable under the parent company of Centurylink.
An administrative summons was served on Mountain Village Metro Cable for subscriber information. Mountain Village Metro Cable provided an address on Mountain Village Boulevard. The Mountain Village Police Department (MVPD) was notified of this information. They in turn requested assistance with the investigation. As such, a joint CSPD and MVPD ICAC investigation was initiated.
On February 8, 2019, MVPD executed a state search warrant at the Mountain View residence where Van Hoesen and his roommate were contacted. Law enforcement conducted a search of the roommate’s cell phone and computer, which revealed no child pornography.
Van Hoesen confirmed to law enforcement his name and email address. He also confirmed that he used the identified web search engine to upload a photo of a naked boy in November 2018.
Numerous digital storage devices were located and seized within the Mountain Village premises. They were later transported to the CSPD for further review. A computer forensic review of the devices revealed that Van Hoesen had downloaded child pornography on several occasions and possessed more than 10,500 files depicting child pornography. Van Hoesen had extensively organized his collection into folders, including folders containing images of infants and toddlers.
“This sentence is wholly appropriate for someone who was a willing participant in the victimization of thousands and thousands of young children,” said U.S. Attorney Jason Dunn. “Through the dogged work of the Colorado Springs and Mountain Village police departments, and the expertise of the NCMEC, a child predator has been taken out of our community for many years to come, and will be closely monitored upon his release.”
Copies of all of the files depicting child pornography were provided to NCMEC, which reported that more than 4,400 files possessed by the defendant depict minor victims previously identified by law enforcement.
This case was investigated by the Colorado Internet Crimes Against Children (ICAC) Task Force, in conjunction with the Mountain Village Police Department. The case was prosecuted by Assistant United States Attorneys Alecia L. Riewerts and Jeffrey K. Graves.
Jason Van Hoesen was charged by Indictment on May 3, 2019, and pleaded guilty to the charge on July 6, 2020. The sentence was pronounced by U.S. District Court Judge Robert E. Blackburn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-208.
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.
Montgomery County Man Sentenced to Three Years for Nearly $3 Million Embezzlement Scheme Against Lancaster CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven J. Russo, 43, of Pennsburg, PA, was sentenced by U.S. District Court Judge Jeffery L. Schmehl to three years in prison, three years of supervised release, and ordered to pay $2,798,000 in restitution to the victim and $980,000 in restitution to the IRS, for embezzling nearly $3 million from his former employer and making false statements on his federal income tax returns.
The defendant pleaded guilty in June 2020 to wire fraud related to the embezzlement scheme, and to filing false tax returns. Russo had served as the Director of Information Technology for a design and manufacturing company headquartered in Lancaster, PA, and over a period of almost six years embezzled money from the company in a variety of ways. His schemes included the use of sham corporations with virtual addresses, fake invoices, and access to the company’s credit cards and on-line accounts. Russo would use those company owned accounts to make unearned payments to the sham companies owned and controlled by him, and to purchase items that he kept for his personal use or sold for personal gain. Russo also filed false tax returns, failing to report his income accurately and claiming false expenses and deductions, resulting in a tax debt to the IRS of nearly $1 million.
“Embezzlement and tax fraud are forms of stealing, pure and simple,” said U.S. Attorney McSwain. “Russo held a senior position of trust with his former employer, and shamefully used that access to steal millions of dollars, while also ripping off the government (and honest tax payers) in the process. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
“Mr. Russo’s decision to use deceit and fraud to line his pockets with his employer’s money and shirk his tax obligations has cost him his freedom,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “This sentence should serve as a deterrent to those who might contemplate similar actions.”
The case was investigated by the Internal Revenue Service – Criminal Investigations, and is being prosecuted by Assistant United States Attorney Bea L. Witzleben.
Mobridge Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Stanley Gene Schily, Sr., age 65, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on September 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than January 1, 2020, and continuing through March 5, 2020, Schily knowingly and intentionally conspired with other people to knowingly and intentionally distribute and possess with the intent to distribute 50 grams or more of methamphetamine in and around Mobridge, South Dakota.
The charge is merely an accusation and Schily is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mobridge Police Department, the Walworth County Sheriff’s Office, the Corson County Sheriff’s Office, and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Schily was remanded to the custody of the U.S. Marshals Service pending trial. A trial date was set for December 7, 2020.
Mission Woman Indicted for Maiming and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Maiming and Assault Resulting in Serious Bodily Injury.
Teyaune Clairmont, a/k/a Teyaune Clairmont Escobedo, age 29, was indicted on September 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 30, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 27, 2020, in Todd County, South Dakota, Clairmont assaulted a woman by biting her nose with the intent to maim and disfigure, and that the assault resulted in serious bodily injury.
The charges are merely accusations and Clairmont is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Clairmont was released on bond pending trial. A trial date has not been set.
Mineral County man sentenced for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Levi Doman, of Keyser, West Virginia, was sentenced today to 92 months of incarceration for his involvement in a drug distribution conspiracy, U.S. Attorney Bill Powell announced.
Doman, age 30, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in January 2020. Doman admitted to distributing methamphetamine in August 2017 in Mineral County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Massachusetts Man Pleads Guilty to Assaulting a Border Patrol AgentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that, on October 2, 2020, Michael Scaduto, 33, of Littleton, Massachusetts, pleaded guilty in United States District Court in Burlington, to an information that charged him with assaulting a U.S. Border Patrol Agent. Chief Judge Geoffrey W. Crawford allowed Scaduto to continue on release conditions pending sentencing, which is scheduled for February 5, 2021.
United States Attorney Christina E. Nolan stated: “As this conviction reflects, the U.S. Attorney’s Office will not tolerate assaults on those who protect, serve, and put themselves in harm’s way to make Vermont communities safer. Those who commit such offenses against federal agents will continue to find themselves facing consequences in federal court. We thank our brave men and women in uniform at all levels of law enforcement for their daily sacrifices in the name of public safety.”
At the guilty plea hearing, Scaduto admitted that, after a U.S. Border Patrol Agent had pulled Scaduto over on Route 105 in the vicinity of Richford, Vermont, Scaduto got out of his vehicle and approached the U.S. Border Patrol Agent. Scaduto gesticulated and shouted at the Border Patrol Agent, and grabbed the Border Patrol Agent in the area of his shoulders and forcibly interfered with the Border Patrol Agent while the Border Patrol Agent was engaged in the performance of his official duties.
At sentencing, Scaduto faces a maximum possible term of imprisonment of one year and a fine of up to $100,000.00. In the plea agreement, the United States and Scaduto have agreed to recommend that the Court impose a $3,000 fine and that Scaduto perform 50 hours of community service. The United States indicated that it would seek a sentence of incarceration for Scaduto, which Scaduto indicated he would oppose.
The matter was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Andrew Gilman. Scaduto is represented by Mark Kaplan, Esq.
Maryland man sentenced to a decade for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Tyree Ryles, of Baltimore, Maryland, was sentenced today to 120 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Ryles, age 30, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2020. Ryles, having previously been convicted of crimes in the Circuit Court of Baltimore City, Maryland, admitted to illegally possessing a 9mm pistol and a .40 caliber pistol in August 2015 in Jefferson County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Married Greenville Business Owners Sentenced to More than Seventeen Total Years, Ordered to Pay More than $2.5 Million in Restitution for Defrauding Home Buyers and SellersRead the Press Release
Greenville, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Dana Q. Roush, 40, and her husband Michael “Bubba” Roush, 56, both of Greenville, were sentenced to a total of seventeen years in federal prison and ordered to pay back more than $2.5 million after a jury found them guilty of conspiracy to commit mail fraud and equity skimming. Mrs. Roush was sentenced to more than eleven years, while her husband was sentenced to six and a half years.
“These defendants here stole more than money. They robbed their victims of the American dream,” said U.S. Attorney McCoy. “For so many South Carolinians, times are tough right now. That these two defendants exploited that difficulty to line their own pockets is reprehensible, and this office will not tolerate it. I appreciate the jury’s verdict and the sentence handed down by the judge. I am especially thankful for the hard work form our federal partners in this case.”
“The fraud perpetrated by the defendants allowed them to steal millions of dollars from people who could not afford to lose any money,” said FBI Special Agent in Charge Jody Norris. “The victims were robbed of their life savings, their homes, and the futures they had planned. The Special Agents from the FBI and the investigators from the Department of Housing and Urban Development (HUD) who brought these defendants to justice, should be commended for their dedication and demonstration of our resolve to fully investigate these fraudulent schemes in South Carolina.”
“The core of our mission is to protect the Department of Housing and Urban Development from those that would seek to defraud its programs for the sole purpose of enriching themselves at the government’s expense," said Wyatt Achord, Special Agent in Charge, HUD Office of Inspector General (OIG). "We remain committed toward working with the U.S. Department of Justice to pursue any individual who attempts to defraud the government."
Evidence presented at trial showed that Dana and Bubba Roush owned and operated Kingdom Connected Investments, LLC (“KCI”). They marketed their company as a Christian organization and promised to create “win-win” situations for home sellers and buyers. They sought homeowners who often owed more on their home than the property was worth, and buyers who lacked good credit and thus could not obtain a conventional mortgage.
KCI promised to relieve the homeowner from the burdens of mortgage payments by “buying” the home and placing a new buyer in the home who would rent-to-own. KCI promised to make all the sellers’ mortgage payments. KCI misled sellers to believe that they would be immediately removed from the property’s title and that they were no longer responsible for the original loan.
KCI promised the buyers an easy road to homeownership. In exchange for the down payment (typically ten percent of the purchase price), the buyers were told that they were renting-to-own and building up equity. KCI further concealed from the buyers that a third party - the seller - had an existing mortgage on the property that KCI was responsible for paying.
Rather than using the down payments and rents received from the buyers to pay the sellers’ mortgage payments, Bubba and Dana Roush used the money for personal expenses and to expand their real estate business.
The sellers, many of whom believed they were off the title and note, received foreclosure notices. They learned that KCI, despite having a renter in the home, had stopped paying on the mortgage. Buyers often learned they had no real ownership interest when the home was purchased by a third-party at a foreclosure sale and the new owner started eviction proceedings.
Victims of the scheme suffered myriad injuries including loss of money, shattered dreams, and ruined credit. Special Agent Matt Jacobson of the Federal Bureau of Investigation (FBI) testified that KCI received $2.6 million from buyers and only paid $1.4 million in mortgage payments. Approximately 130 properties were involved in the scam and Agent Jacobson testified that in only two instances did a buyer actually become a homeowner and a seller not face foreclosure and ruined credit.
United States District Judge Timothy M. Cain sentenced Mrs. Roush to 136 months in federal prison, to be followed by a three-year term of court-ordered supervision. Judge Cain sentenced Mr. Roush to 78 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Judge Cain also ordered the defendants to pay $2,664,796.69 in restitution.
The case was investigated by the FBI and HUD OIG. Assistant U.S. Attorney Bill Watkins and Special Assistant U.S. Attorney Ian Conits, both of the Greenville 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.
Man Charged with Attempted Arson During Civil Unrest in Madison in JuneRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced today that a Madison, Wisconsin resident has been charged with attempting to damage and destroy by means of fire the City-County Building on Martin Luther King Jr. Boulevard during the civil unrest that occurred in Madison on June 24, 2020. Marquon Clark, 26, was charged in a one-count complaint filed in U.S. District Court today.
The complaint alleges that Clark threw projectiles through windows of the City-County Building, and then threw a lit roll of paper towels through the broken windows. The complaint alleges that at the time, the building was occupied by over 250 people, including 182 adults and juveniles being held in the jail. Clark’s actions led to a fire in the City-County Building that resulted in approximately $105,000 in damages and clean-up costs.
Clark is in custody at the Dane County Jail. His initial appearance in U.S. District Court in Madison has not been scheduled.
“Throwing burning objects into an occupied government building is not protest, it is a crime that places lives at risk,” said U.S. Attorney Blader. “Those who engage in such conduct without regard for the potentially deadly consequences will be prosecuted to the fullest extent of the law.”
If convicted, Clark faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and the Madison Fire Investigation Team.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Pleads Guilty to CARES Act Fraud & Access Device FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that on Friday, October 2, Ahmad Kanan, 49, Madison, Wisconsin, pleaded guilty to two separate federal crimes charged in two separate indictments: Coronavirus Aid, Relief, and Economic Security (CARES) Act fraud and access device fraud.
While acting on behalf of Altin Labs, Inc. as its Chief Executive Officer and majority owner, Kanan applied for two Paycheck Protection Program (PPP) loans funded by the CARES Act. Specifically, in April 2020, Kanan applied for a $72,500 PPP loan through the Bank of Kaukauna in Kaukauna, Wisconsin. The Bank of Kaukauna noted a discrepancy in the spelling of Kanan’s name in the application, and Altin Labs did not receive these funds. In May 2020, Kanan again applied for a PPP loan, requesting $47,060 through Cross River Bank located in New Jersey. This time, Altin Labs received the funds. Kanan admitted that in his PPP applications, he used a false spelling of his name and indicated that he was not under indictment on criminal charges, when in fact he was the subject of an indictment returned by a federal grand jury in the Western District of Wisconsin in October 2019, charging him with access device fraud.
The separate access device charges related to two family-owned gas stations that Kanan operated in Janesville, Wisconsin. Kanan admitted to using the routing and account numbers from the bank account of the Embassy of Libya-Military Attaché to pay to the Wisconsin Department of Revenue sales and use tax, penalties, and interest owed by his gas stations in the amount of $83,783.41 in July 2017, and $108,053.02 in December 2017. The Libyan Embassy did not give Kanan permission to use their bank account to make these payments.
U.S. District Judge William M. Conley scheduled sentencing for January 6, 2021. Kanan faces a maximum penalty of 20 years in federal prison on the CARES Act fraud and 10 years on the access device fraud.
The charges against Kanan are the result of investigations by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Wisconsin Department of Revenue, the U.S. State Department, and the Small Business Administration. The U.S. Attorney’s Office would like to thank the Libyan Embassy for its cooperation.
Assistant U.S. Attorneys Zachary Corey and Meredith Duchemin are handling the prosecution.
Media AdvisoryRead the Press Release
Event: News conference to announce Operation Rubber Stamp and significant milestones in prosecution of telemedicine fraud in Georgia and South Carolina
Date/Time:Wednesday, Oct. 7, 2020, at 10:30 a.m.
Location: U.S. Attorney’s Office – Sixth Floor Conference Room
22 Barnard St., Cay Building
Savannah, GA 31401
Participants:
Bobby L. Christine, U.S. Attorney, Southern District of Georgia
Peter M. McCoy, U.S. Attorney, District of South Carolina
Will Clarke, Supervisory Special Agent, Savannah Office, Federal Bureau of Investigation
Glen M. Kessler, Resident Agent in Charge, Savannah Resident Office, U.S. Secret Service
J. Thomas Clarkson and Jonathan Porter, Assistant U.S. Attorneys, Southern District of Georgia
Derek Shoemake and Jim May, Assistant U.S. Attorneys, District of South Carolina
Please note: All visitors must enter through the Third Floor security station for temperature check. Face masks are required for all visitors. Media should arrive at least 20 minutes early for escort and setup. Reply to [email protected] if you plan to attend, or call Public Affairs Officer Barry Paschal at 706-829-4253.
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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.
Luxury car purveyor extradited on fraud and money laundering chargesRead the Press Release
ATLANTA - Mani Chulpayev, having been arrested in Ukraine and extradited to Atlanta, has been arraigned on federal charges of bank fraud, mail fraud, and money laundering.
“Chulpayev allegedly profited from years of fraud and by catering to drug traffickers looking for flashy cars and a way to launder their ill-gotten cash,” said U.S. Attorney Byung J. “BJay” Pak. “His arrest and extradition show that we will pursue fraudsters and money launderers no matter where they hide.”
“DEA and its law enforcement partners will continue to target drug traffickers and those who support them with criminal acts such as money laundering and wide-scale fraud, as was the case in this investigation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The spirited level of law enforcement cooperation made this investigation a success.”
“The arrest of this defendant should serve as an example to individuals that distance does not insulate them from the reach of our investigations and our resolve in the pursuit of justice,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to work alongside our law enforcement partners to dissect and financially disrupt complex money laundering schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Chulpayev, along with Lyle Livesay, Kimberly Reiss, and others, allegedly operated an enterprise from at least May 2012 to July 2016 in which they obtained luxury cars through fraudulent means, and then leased them out to drug traffickers who paid for the leases using cash from their drug sales.
To build up an inventory of cars, Chulpayev and his associates allegedly recruited straw purchasers – people who would buy luxury cars in their names, but had no intention of actually driving the cars themselves. The straw purchasers would give the cars to Chulpayev to be leased to others, including to drug traffickers who used drug proceeds to pay Chulpayev for the pricey leases. The straw purchasers bought the cars using bank loans, and would finance several luxury vehicles in a short period of time before the new loans showed up on their credit reports. Chulpayev and his associates gave the straw purchasers falsified documents, including fake paychecks, to use for loan applications. Some of the straw purchasers also obtained loans for cars that were not actually for sale so that Chulpayev and his co-conspirators would receive a cash boon from the financing bank to further their scheme.
Chulpayev and his associates would initially make some of the loan payments for the straw purchasers, but then stop, leaving the straw purchasers responsible for making payments. When the straw purchasers inevitably defaulted on the loans, Chulpayev left the banks to try to repossess the cars from the drug traffickers or locate cars that had been moved to other states, stolen, or exported to foreign countries.
A federal grand jury indicted Mani Chulpayev, 43, together with Lyle Stephen Livesay, 33, and Kimberly Ann Reiss, 35, on November 15, 2018, on one count of conspiracy to commit bank fraud and mail fraud, and one count of conspiracy to commit money laundering. Livesay pleaded guilty to the charges on September 14, 2020, before U.S. District Judge Eleanor L. Ross. Reiss is scheduled for a change of plea hearing on October 22, 2020. Chulpayev was arraigned before U.S. Magistrate Judge Regina D. Cannon.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and United States Postal Inspection Service, with valuable assistance provided by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service.
Assistant U.S. Attorneys Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section, and Irina K. Dutcher are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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.
Los Angeles Woman Sentenced for Transporting 60 Pounds of Meth to KansasRead the Press Release
WICHITA, KAN. – A woman from Los Angeles was sentenced today to 18 months in federal prison for transporting 60 pounds of methamphetamine to Kansas, U.S. Attorney Stephen McAllister said.
Maria Alvarez-Buenrostro, 47, Los Angeles, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. In her plea, she admitted that the Kansas Highway Patrol stopped her car Feb. 12, 2019, in Ellis County, Kan. A trooper found the methamphetamine in heat-sealed bags hidden in a real quarter panel and in both rear doors.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Mona Furst for their work on the case.
Long Island Man Sentenced to 20 Years’ Imprisonment for RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Terrill Latney, an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise based in Riverhead, New York, was sentenced by United States District Judge Joanna Seybert to 20 years’ imprisonment for racketeering, including the predicate acts of conspiring to distribute narcotics and participating in the murder of Thomas Lacolla while attempting to kill a rival of the gang. Latney pled guilty in February 2020.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, justice has been served for years of drug dealing, violence and murder, which wreaked havoc in Riverhead and the surrounding area,” stated Acting United States Attorney DuCharme. “This outcome brings a measure of closure to the victims and stands for the principle that we remain ever-committed to dismantling violent street gangs on Long Island and restoring safety and the rule of law to every community.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, and the Suffolk County East End Drug Task Force.
As detailed in the government’s court filings and admitted at the guilty plea proceeding, Latney participated in the distribution of large quantities of crack cocaine, cocaine and heroin in and around Riverhead over the course of nearly a decade. In addition, on November 17, 2015, Latney assisted members of the Bloods in their attempt to kill a rival gang member which resulted in the shooting death of that rival’s friend, Thomas Lacolla. Latney drove three Bloods members to a location in Riverhead where they fired more than 39 shots into a vehicle they believed was occupied by their intended target, but instead shot Lacolla, instantly killing him.
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. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
Defendant:
TERRILL LATNEY (also known as “Motis” and “Mo”)
Age: 40
Mastic Beach, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Kenner Woman Sentenced for Acquiring Oxycodone IllegallyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that BENNIE RUTH HARRIS, age 65, of Kenner, Louisiana, was sentenced by the Honorable Judge Lance M. Africk on September 30, 2020 to two years of probation following her plea to acquiring oxycodone by fraud.
HARRIS was one of ten defendants involved in a conspiracy to use forged prescriptions to illegally acquire oxycodone. According to court documents, HARRIS presented a forged prescription for a large amount of oxycodone to a local pharmacy. The other nine defendants involved in this offense also pleaded guilty and were sentenced.
U.S. Attorney Strasser praised the work of agents with the Department of Health and Human Services Office of Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier and attorneys with the Department of Justice Health Care Fraud Strike Force, with previous co-counsel including Assistant United States Attorney Jared L. Hasten of the Northern District of Illinois.
Justice Department Settles with Minnesota-Based Company to Resolve Discrimination Claims Under the Immigration and Nationality ActRead the Press Release
The Department of Justice announced today that it reached a settlement with WinCraft, Incorporated (WinCraft), a Minnesota-based sports manufacturing company with locations in Iowa, Florida, and Washington. The settlement resolves claims that WinCraft violated the Immigration and Nationality Act (INA) by requiring lawful permanent residents to provide specific work authorization documentation without any legal justification because of their immigration status.
“Companies large and small must abide by the Immigration and Nationality Act’s (INA) requirements not to discriminate,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that WinCraft will work with the Department of Justice to ensure that its policies and practices comply with the INA’s requirements applicable to workers with the legal right to work in the United States.”
Based on its investigation, the department concluded that WinCraft required unnecessary and specific documents from lawful permanent residents, such as requiring these workers to show their Permanent Resident Cards (sometimes known as “green cards”), to prove their work authorization. Additionally, according to the department, WinCraft required that lawful permanent residents show updated proof of their work authorization when their Permanent Resident Cards expired, even though federal rules prohibit such practice and these workers continued to be authorized to work based on their status as lawful permanent residents.
Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status, or national origin.
Under the terms of the settlement, WinCraft will pay to the United States a civil penalty of $5,400, train its employees on the requirements of the INA’s anti-discriminatory provision (including through a training assessment and Civil Rights Division’s Immigrant and Employee Rights Section (IER) webinar), and be subject to departmental monitoring to review compliance with the settlement.
The Civil Rights Division’s IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Awards over $77 Million to Improve Public Safety and Serve Crime Victims in Alaska Native CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that within the last 4 months, the Department of Justice has awarded over $77 million in grants in Alaska. Many of those grants were awarded to Alaska Native communities and tribal organizations to improve public safety, serve victims of crime, combat violence against women, and support youth programs.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
“The Department of Justice’s grant announcements shows the Department’s understanding of the challenging public safety issues facing Alaska, particularly the rural parts of the state. The grant funds distributed to rural Alaska also demonstrate Attorney General Barr’s continued commitment to Alaska native communities,” said U. S. Attorney Schroder.
Alaska received a significant share of this nationwide grant funding. Alaska Native communities and other tribal designees received over $34.5 million through the Tribal Victim Set Aside Program and $13.5 million through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Notably, the Department of Justice awarded:
- Aleutian Pribilof Islands Association, Inc. $3,880,000
- Alaska Native Justice Center $2,878,987
- Central Council Tlingit and Haida Indian Tribes of Alaska $2,984,129
- Fairbanks Native Association $1,314,033
- Kawerak, Inc. $1,229,928
- Ketchikan Indian Community was awarded $1,186,770
- Maniilaq Association $3,683,871
- Sitka Tribe of Alaska $1.453,513
- Tanana Chiefs Conference $3,682,829
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs. On September 30, 2020, DOJ awarded public safety and community policing grants to the following organizations, adding 18 additional officers to rural Alaska:
Grantee
Award Amount
Officers Funded
Asa'carsarmiut Tribal Council
$387,415
1
Koyukuk Native Village
$437,628
1
Manokotak Village Council
$362,390
1
Native Village of Fort Yukon
$390,820
1
Native Village of Kwinhagak
$306,123
1
Native Village of Napakiak
$453,859
2
Native Village of Nunapitchuk
$465,365
2
Native Village of Shageluk
$413,426
1
Native Village of Tununak
$456,216
2
Nunakauyarmiut Tribe
$500,950
2
Tanana Chiefs Conference
$683,372
1
Tetlin Tribal Council
$499,043
1
Village of Chefornak
$486,503
2
FY20 COPS Hiring Program (CHP) Award: $2.1 Million
On June 2, 2020, funding in the amount of $2,100,476 was awarded to multiple law enforcement agencies in Alaska, which allows those agencies to hire a combined total of 19 officers to help keep our communities safe. Out of the 19 officers, 18 will be located in rural Alaska. Specifically, 14 officers will be certified Alaska Police Officers, three will be certified VPSOs, and two will be TPOs. This was part of DOJ’s announcement awarding nearly $400 million in grant funding nationwide through the COPS Hiring Program (CHP).
Grantee
Award Amount
Officers Funded
Akiak Native Community
$214,956
2
Bethel Police Department
$125,000
1
City of Chevak
$491,234
6
City of Marshall
$403,688
3
Fort Yukon Police Department
$240,598
2
Nome Police Department
$125,000
1
Northwest Arctic Borough
$375,000
3
Palmer Police Department
$125,000
1
Funding to Alaska also included:
- $8.1 million in sexual assault, domestic violence, dating violence and stalking program grants
- $5.3 million in awards for Coronavirus emergency supplemental funding
- $4.5 million in VOCA awards
- $2.8 million to the State of Alaska for training and technical assistance, violence against women programming, sex offender registration, juvenile justice and corrections
- $2.3 million in reentry and recidivism reduction grants
- $1.7 million in Human Trafficking victim services grants
- Nearly $1 million for enhancing victim services for elder fraud and abuse
For more information on the Coordinated Tribal Assistance Solicitation (“CTAS”) read the fact sheet here: A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
Additional information about FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data Webpage
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
John McAfee Indicted for Tax EvasionRead the Press Release
An indictment was unsealed today charging John David McAfee with tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. The June 15, 2020 indictment was unsealed following McAfee’s arrest in Spain where he is pending extradition.
According to the indictment, John McAfee earned millions in income from promoting cryptocurrencies, consulting work, speaking engagements, and selling the rights to his life story for a documentary. From 2014 to 2018, McAfee allegedly failed to file tax returns, despite receiving considerable income from these sources. The indictment does not allege that during these years McAfee received any income or had any connection with the anti-virus company bearing his name.
According to the indictment, McAfee allegedly evaded his tax liability by directing his income to be paid into bank accounts and cryptocurrency exchange accounts in the names of nominees. The indictment further alleges McAfee attempted to evade the IRS by concealing assets, including real property, a vehicle, and a yacht, in the names of others.
If convicted, McAfee faces a maximum sentence of five years in prison on each count of tax evasion and a maximum sentence of one year in prison on each count of willful failure to file a tax return. McAfee also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone of the Tax Division and Assistant U.S. Attorneys Matthew Wilson and Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Illinois Man Sentenced to 37 Months in Prison for Conspiracy to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – A Illinois man was sentenced today to 37 months in prison for conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.
In addition to the prison term, Judge Wigenton sentenced Maldonado to two years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s sentencing.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Huntington Man Pleads Guilty to Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man has pled guilty to a drug crime, announced United States Attorney Mike Stuart. Terry Alan Blackmon, Jr., 34, pled guilty to one count of distribution of heroin.
“The cooperative efforts of federal, state and local law enforcement have snared another heroin dealer in Huntington,” said United States Attorney Mike Stuart. “We’re working together to rid our communities of dangerous drug dealers and to keep our families safe.”
Blackmon admitted that on September 24, 2019, he distributed approximately 2 grams of heroin to a confidential informant at a residence located on 6th Street in Huntington.
Blackmon faces up to 20 years in prison when sentenced on January 19, 2021.
The Federal Bureau of Investigation’s (FBI’s) Southern West Virginia Transnational Organized Crime (TOC) West Task Force, the FBI, the Cabell County Sheriff’s Office, and the West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00290.
Follow us on Twitter: SDWVNews and USAttyStuart
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Hudson Man Sentenced for Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that a Hudson, South Dakota, man convicted of Wire Fraud was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Christopher Day, age 31, was sentenced to 5 years of probation, restitution in the amount of $319,041.86 to Pedersen Machine, Inc., and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Day was indicted by a federal grand jury on February 4, 2020. He pled guilty on June 17, 2020.
The conviction stemmed from incidents starting in 2015 until 2019, when Day, who was employed by Pedersen Machine, Inc., engaged in a scheme to steal tractor parts belonging to his employer, and selling them online.
Day would order the parts for himself but would not pay for them. Instead, he would make it appear that the parts were ordered on behalf of Pedersen Machine’s customers. When the parts arrived, he would take the parts home and canceled the orders on Pedersen Machine’s computer system so the legitimate customer did not receive an invoice. He would then sell the parts online from his home and convert the profits to his own use.
This case was investigated by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Gaithersburg Sex Offender Pleads Guilty to the Federal Charge of Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Bruce Ralph Sturtz, age 73, of Gaithersburg, Maryland, pleaded guilty today to the federal charge of possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Sturtz’s plea agreement, on February 26, 2017, a Maryland State Police (“MSP”) investigator conducted an online investigation of Sturtz after three separate law enforcement officers working through the Internet Crimes Against Children Task Force (“ICAC”) downloaded child pornography videos from a device at an IP address assigned to Sturtz’s residence. The investigator found that Sturtz’s computer was running software that allowed other users to download a video that had previously been identified as child pornography. The investigator downloaded and viewed the video, which documented the sexual abuse of a prepubescent female.
Less than a month later, on March 23 and March 24, 2017, investigators conducting online investigations for offenders sharing child pornography directed their focus to the Sturtz device because it was running the same computer software. The investigators downloaded and viewed videos shared by the Sturtz device, which contained images of prepubescent females engaged in sexually explicit conduct, including bondage and bestiality.
On October 25, 2017, a federal search warrant was executed on Sturtz’s residence. At the time the search warrant was executed, Sturtz was downloading child pornography onto his computer. Law enforcement seized a number of electronic devices. A subsequent forensic analysis of the seized electronic devices revealed at least 1,356 videos and 16 pictures depicting child pornography. The videos and images found on the seized electronic devices included child pornography of babies and toddlers, other children under 12 years of age, including incest, bondage, bestiality, and sexual acts between adults and victim children. Forensic analysts were also able to identify on the seized electronic devices the three video files that were downloaded by investigators from Sturtz’s device.
Sturz has previously been convicted of a sex offense involving a minor. On October 6, 2000, Sturtz pled guilty to a third-degree sex offense in the Circuit Court for Montgomery County, Maryland and was later sentenced to 10 years in prison, with all but eighteen months suspended, plus five years of probation.
The Government plans to argue at Sturtz’s sentencing that Sturtz faces a mandatory minimum sentence of 10 years in prison for the possession of child pornography subsequent to sustaining a prior state conviction relating to sexual abuse or abusive sexual conduct involving a minor.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, and the Maryland State Police Internet Crimes Against Children Task Force for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and Joseph R. Baldwin, who are prosecuting the federal case.
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Former Stockton Resident Sentenced to More Than 15 Years in Prison for Human Trafficking Convictions Related to Forced Labor of Foreign NationalsRead the Press Release
SACRAMENTO, Calif. — Sharmistha Barai, 40, formerly of Stockton, was sentenced on Friday, Oct. 2 to 15 years and eight months in prison for forced labor violations. In addition, U.S. District Judge Morrison C. England Jr. ordered more than $15,000 in restitution to the victims.
On March 14, 2019, after an 11-day trial, a federal jury found Barai and her husband Satish Kartan guilty of conspiracy to obtain forced labor and two counts of obtaining forced labor. Kartan is scheduled to be sentenced on Oct. 22.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; U.S. Attorney McGregor W. Scott; Matthew Perlman, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), San Francisco Field Office; Sean Ragan, Special Agent in Charge of the FBI Sacramento Field Office; and Tatum King, Special Agent in Charge, Homeland Security Investigations for San Francisco and Northern California made the announcement.
“The United States abolished slavery and involuntary servitude more than 150 years ago. Yet, inhuman forced labor and deprivations of liberty and dignity persist because human traffickers are modern-day slave masters who endeavor to exploit their fellow human beings for profit and other gruesome purposes. The sentence imposed today sends a strong message that human trafficking and forced labor will not be tolerated in the United States. The defendant’s role in this scheme to compel the victims into servitude for up to 18 hours a day, with minimal pay, through intimidation, threats, and violence, is an unconscionable violation of the victims’ individual rights, freedom, and dignity. The Civil Rights Division remains committed to relentlessly pursuing justice on behalf of victims of human trafficking and holding perpetrators accountable to the fullest extent of the law,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
U.S. Attorney Scott stated: “The defendants’ horrendous conduct, done in the privacy of their home, was publically exposed during the trial. One by one the victims told their stories of the brutality they experienced: long hours of labor, inadequate food, and physical assault. Today’s sentence sends a clear message to others that systematic brutality against vulnerable victims will not be tolerated.”
“This sentencing sends a strong message: DSS is committed to ensuring that those who exploit and traffic individuals for personal gain will face severe consequences for their criminal actions,” said SAC Perlman of the Diplomatic Security Service, San Francisco Field Office.
“No human being should be lured into servitude with promises of employment. This form of human trafficking is heart wrenching: victims are often assaulted and live their lives in fear behind closed doors where escape seems all but impossible,” said SAC Ragan of the FBI Sacramento Field Office. “The FBI will stand with our law enforcement partners to investigate reports of human trafficking and ensure victims receive the services they need.”
“This sentencing is a success in the fight against the heinous crime of human trafficking in our region and our dedication to bring these criminals to justice,” announced Tatum King, Special Agent in Charge Homeland Security Investigations (HSI) NorCal. “We are grateful to our law enforcement partners for their unwavering efforts not only in this investigation, but in our continued fight to disrupt and dismantle human trafficking networks worldwide. We also are appreciative of the critical work that Community Based Organizations provide in bringing these heinous violations to light as well as the critical resources they provide to victims to assist in their recovery.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims about the wages and conditions of employment. Once the workers arrived at the defendants’ Stockton residence, Kartan and Barai compelled them to work up to 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept the domestic workers from leaving and coerced them to continue working by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim resisted or expressed a desire to leave, the threats and abuse became worse.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon prosecuted the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Resident of Stockton, California Sentenced to More Than 15 Years in Prison for Human Trafficking Convictions Related to Forced Labor of Foreign NationalsRead the Press Release
Sharmistha Barai, 40, formerly of Stockton, California, was sentenced Friday, Oct. 2 to 15 years and eight months in prison for forced labor violations.
On March 14, 2019, after an 11-day trial, a federal jury found Barai and her husband Satish Kartan guilty of conspiracy to obtain forced labor and two counts of obtaining forced labor. Kartan is scheduled to be sentenced on Oct. 22.
“The United States abolished slavery and involuntary servitude more than 150 years ago,” said Assistant Attorney General Eric Dreiband. “Yet, inhuman forced labor and deprivations of liberty and dignity persist because human traffickers are modern-day slave masters who endeavor to exploit their fellow human beings for profit and other gruesome purposes. The sentence imposed today sends a strong message that human trafficking and forced labor will not be tolerated in the United States. The defendant’s role in this scheme to compel the victims into servitude for up to 18 hours a day, with minimal pay, through intimidation, threats, and violence, is an unconscionable violation of the victims’ individual rights, freedom, and dignity. The Civil Rights Division remains committed to relentlessly pursuing justice on behalf of victims of human trafficking and holding perpetrators accountable to the fullest extent of the law.”
“The defendants’ horrendous conduct, done in the privacy of their home, was publicly exposed during the trial,” said U.S. Attorney McGregor W. Scott of the Eastern District of California. “One by one the victims told their stories of the brutality they experienced: long hours of labor, inadequate food, and physical assault. Today’s sentence sends a clear message to others that systematic brutality against vulnerable victims will not be tolerated.”
“This sentencing sends a strong message: DSS is committed to ensuring that those who exploit and traffic individuals for personal gain will face severe consequences for their criminal actions,” said Special Agent in Charge (SAC) Matthew Perlman of the Diplomatic Security Service (DSS), San Francisco Field Office.
“No human being should be lured into servitude with promises of employment. This form of human trafficking is heart wrenching: victims are often assaulted and live their lives in fear behind closed doors where escape seems all but impossible,” said SAC Sean Ragan of the FBI Sacramento Field Office. “The FBI will stand with our law enforcement partners to investigate reports of human trafficking and ensure victims receive the services they need.”
“This investigation is just another unfortunate example of cruel and inhumane crimes, like labor trafficking, being committed by some of the worst violators our society has to offer. Though justice has been served, this sentence still pales in comparison to the lifelong emotional trauma the victims of these crimes are forced to live with,” said SAC Tatum King of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) of San Francisco. “Homeland Security Investigations agents globally remain committed to prioritizing, identifying, rescuing and providing services and benefits to victims of crime regardless of citizenship and continue to demonstrate a laser focus to bringing criminals to justice.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims about the wages and conditions of employment. Once the workers arrived at the defendants’ Stockton residence, Kartan and Barai compelled them to work up to 18 hours a day limited rest and nourishment. Few of them were paid any wage. The defendants kept the domestic workers from leaving and coerced them to continue working by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim resisted or expressed a desire to leave, the threats and abuse became worse.
This case is the product of an investigation by HSI, the FBI, and the State Department’s DSS. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon prosecuted the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Program Manager of Twin Cities Nonprofit Sentenced to Prison for Fraud, False StatementsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CLARISSA LYNN COMBS, 49, to 71 months in prison for conspiring to commit wire fraud and making a false statement. COMBS, who pleaded guilty on December 4, 2019, was sentenced today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. A total of 12 defendants have pleaded guilty and been sentenced for their roles in the conspiracy.
“Ms. Combs orchestrated a years-long fraud scheme that diverted hundreds of thousands of dollars from some of the most vulnerable members of society, including individuals and families in need of housing. I applaud the work of our investigative partners in bringing this conspiracy to justice,” said U.S. Attorney Erica H. MacDonald.
“The FBI will pursue those who plan, scheme and defraud charities for their own personal gain,” said Michael Paul, special agent in charge of the FBI’s Minneapolis Field Office. “The men and women of the FBI work hard every day to identify and apprehend those responsible for such crimes that simply will not be tolerated.”
According to the defendant’s guilty plea and documents filed with the court, between April 2012 and February 2019, COMBS, a former program manager for a Twin Cities non-profit organization that provides housing and related services to the homeless, and multiple co-conspirators, devised and participated in a scheme to fraudulently obtain at least $684,081.90 in charitable funds from the organization. As part of the scheme, COMBS recruited other employees of the non-profit, as well as her family and friends, to pose as landlords and fictitious homeless clients. During the course of the investigation, COMBS tried to conceal the scheme and minimize her involvement by making false statements to Special Agents of the Office of the Inspector General of the Department of Housing and Urban Development and the Federal Bureau of Investigation, and a United States Postal Inspector.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General, the FBI, and the United States Postal Inspection Service.
Assistant United States Attorney Miranda E. Dugi prosecuted the case.
Defendant Information:
CLARISSA LYNN COMBS, 49
Brooklyn Park, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
- False statements, 1 count
Sentenced:
- 71 months in prison
- Three years of supervised release
- $684,081.90 in restitution
SHANEKA LASHAY MZEE, 36
St. Paul, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $ 26,865.00 in restitution
LETEASTE HENRY-DAVIS, 56
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $12,400.00 in restitution
SHARRÉ OPHILIA RUSH, 34
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $35,843.25 in restitution
AISHA LENEE DAVIS, 42
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $87,740.65 in restitution
JALONDA LEEANN COMBS, 38
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $117,633.00 in restitution
RACHAEL ELIZABETH EKHOLM, 41
Richfield, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Six months in prison
- Three years of supervised release
- $109,080.00 in restitution
BRIDGIT YVETTE MICHAUD, 54
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $89,000.00 in restitution
AUDREY SEBILETTA HEATH, 35
Ramsey, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $14,650.00 in restitution
AISHIA RENEE BELL, 43
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
- $166,875.00 in restitution
ANTHONY JEROME OLIVER, 56
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $76,600.00 in restitution
NEAL BURTON, 57
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $15,785 in restitution
TYRONE LAMAR BURTON, 41
St. Paul, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- 18 months in prison
- Three years of supervised release
- $166,785 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Investment Advisor Sentenced to 17 Years in Prison in Multi-Million Dollar Investment Fraud Scheme that Victimized Professional Hockey Players and Long Island InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Phillip A. Kenner was sentenced by United States Circuit Judge Joseph F. Bianco to 17 years’ imprisonment for stealing millions of dollars in funds raised from Long Island residents and professional athletes that were intended for investment in land developments in Hawaii and a start-up business in Arizona, among other purposes. Kenner and co-defendant Tommy Constantine were convicted at trial in July 2015 of one count of conspiracy to commit wire fraud, four substantive counts of wire fraud, and one count of conspiracy to commit money laundering. The amount of restitution will be determined by the Court at a later date. Previously, the Court entered a forfeiture money judgment in the amount of approximately $17 million and ordered Kenner to forfeit all his right, title and interest in an oceanfront resort in Mexico, real property in Hawaii and a Falcon 10 jet airplane, among other assets. Kenner has been in the custody of the Bureau of Prisons since his arrest in 2013. Constantine is awaiting sentencing.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Services—Criminal Investigation (IRS), announced the sentence.
“Today’s substantial sentence provides just punishment for the defendant’s victimization of clients, as well as his attempts to shift blame and scapegoat others as his scheme unraveled,” stated Acting United States Attorney DuCharme. “As Kenner has now learned, fraud may seem like easy money in the short run, but when justice catches up with you, the consequences can be significant.” Mr. DuCharme expressed his grateful appreciation to the FBI and IRS, the agencies responsible for leading the government’s investigation.
“Time and again, Kenner and his co-conspirator stole money from multiple investors and dumped millions in ill-gotten gains into entities that benefitted them rather than their victims. Kenner has received a significant sentence today, and the 17 years behind bars should give him ample time to think about his crimes and the consequences of his actions,” stated FBI Assistant Director-in-Charge Sweeney.
“Greed knows no boundaries, and anyone may fall victim to its promise of major returns on investment,” stated IRS-CI Special Agent in Charge Larsen. “IRS-CI special agents deal with perpetrators of fraud motivated by their desire for personal financial enrichment on a daily basis. “This sentence is just for Mr. Kenner who deserves his time in the ‘penalty box.’”
Kenner began his career as a Boston-based financial advisor and developed a roster of clients, including former New York Islander Michael Peca, former New York Islander and New York Ranger Brian Berard, and Darryl Sydor and Bill Ranford – both two-time Stanley Cup champions – and other NHL players.
At trial, the government presented testimony from nearly 40 witnesses and introduced more than 1,000 exhibits, including audio recordings made by several victim investors and proved that the defendants siphoned millions of investor dollars into a labyrinth of holding companies, diverting those dollars from their approved uses into companies, real estate and other ventures – including Constantine’s car racing endeavor – that solely benefited the defendants.
The Hawaii Real Estate Investment Scheme
Beginning in 2003, Kenner convinced Peca, Berard and several others to invest $100,000 each for the development of land in Hawaii into luxury estates and to open personal lines of credit at a bank, collateralized by their personal stock, bond and savings accounts worth at least $10 million. Kenner assured the investors that the lines of credit would be used only to pay for initial development costs associated with the Hawaii project, and would be fully replenished after Lehman Brothers Holdings, Inc. agreed to loan the project up to $105 million in August 2006. In fact, Kenner borrowed nearly all of investors’ lines of credit to acquire his personal interest in unrelated real estate projects in Hawaii and Mexico and to cover his own and Constantine’s personal expenses.
In an offshoot of the scheme, Constantine brokered a $3.5 million loan from an Arizona businessman ostensibly to close on a Hawaii parcel of land. Constantine put up no money of his own, but walked away from the transaction – funded with assets diverted from Peca, Berard and others – with approximately $2 million.
The Eufora LLC Scheme
In 2002, Constantine founded Eufora LLC, a prepaid debit card business. Between February 2008 and May 2009, Eufora was operating in the red, and as Constantine testified in civil depositions, the company was nearly worthless. Notwithstanding, Kenner persuaded clients to invest in Eufora. While representing that he was investing his clients’ funds in Eufora, Kenner instead wired $725,000 of his clients’ funds to Constantine’s personal account. Kenner also directed the wiring of an additional $700,000 of his clients’ funds to Eufora’s account, and promptly re-wired those funds to a co-conspirator’s personal account. The diverted funds were used to cover the costs of Kenner’s and Constantine’s home mortgages, credit card bills and other debts.
The Global Settlement Fund Scheme
In early 2009, Kenner’s clients who had opened lines of credit for the Hawaii venture received notices that their credit lines were in default. For years, Kenner concealed that he had wiped out most of his clients’ funds by borrowing against one line of credit to pay monthly interest charges for other another account. By late 2008, the concealment scheme collapsed. Notwithstanding, Kenner and Constantine persuaded their clients to invest additional funds to a “Global Settlement Fund.” The clients contributed more than $2.9 million toward the fund, but the vast majority of the money was diverted to the defendants’ personal use, which included Constantine buying his personal home out of foreclosure, Kenner and Constantine paying legal bills related to Kenner’s personal investment in a tequila company in Mexico, defending Constantine in Florida litigation over his race car sponsorship activities, and an exploratory and unsuccessful effort by Constantine to buy Playboy Enterprises.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution. Assistant United States Attorneys Diane Leonardo and Madeline O’Connor are handling the forfeiture of assets.
The Defendant:
PHILLIP A. KENNER
Age: 51
Scottsdale, ArizonaDefendant To Be Sentenced:
TOMMY CONSTANTINE
Age: 54
Scottsdale, ArizonaE.D.N.Y. Docket No. 13-CR-607 (JFB)
Former Executive Director of Collinwood and Nottingham Villages Development Corporation sentenced to 33 months of imprisonmentRead the Press Release
U.S. Attorney Justin Herdman announced today that Tamiko Parker, 47, of Cleveland was sentenced by Judge Dan Aaron Polster to 33 months in prison and ordered to pay $164,120.30 in restitution after Parker pleaded guilty to theft concerning programs receiving federal funds.
“This defendant was put in a position of public trust, charged with helping to lead a neighborhood to further prosperity,” said U.S. Attorney Justin Herdman. “Instead of using her position for the public good, this defendant chose to enrich herself with public dollars and spend lavishly on trips and home furnishings. Public officials, contractors, or anyone else who misuses or improperly handless public funds can expect to find themselves in a similar position, that is to say, facing federal prison time.”
"Ms. Parker will now spend time behind bars for stealing hundreds of thousands of dollars planned for economic development in the community,” said FBI Special Agent in Charge Eric B. Smith. "Ms. Parker has been held accountable for her criminal avarice and greed. The FBI will continue to work with our law enforcement partners to root out public corruption at all levels."
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
“These stolen funds were designated to improve and assist the Collinwood community,” said Cuyahoga County Prosecutor Michael C. O’Malley. “She’s a serial thief who deserves every day of her 33-month sentence.”
According to court documents, from 2014 to 2016, Parker served as executive director of Collinwood and Nottingham Villages Development Corporation (CNVDC), a nonprofit that acquires, develops and leases property on the northeast side of Cleveland. In her role as executive director, Parker had access to CNVDC’s bank accounts, credit cards, debit cards, statements, and checks. Parker misused various accounts through a variety of schemes, including making unauthorized cash withdrawals, having checks issued to her and using debit and credit cards to pay her expenses.
Court documents show that Parker used CNVDC’s debit card to make purchases at Harley Davidson, the Horseshoe Casino, Victoria’s Secret and in Atlantic City and Las Vegas. In addition, Parker used CNVDC’s credit card to purchase appliances at Home Depot for her home. Parker used CNVDC’s checking account to purchase an automobile in Michigan for $19,080. Parker also collected cash rental payments from tenants of the nonprofit and deposited the cash into her personal bank account.
As a result of Parker’s activity, CNVDC suffered a loss of $195,087.61.
This case was investigated by the FBI, the U.S. Department of Housing and Urban Development -- Office of Inspector General and the Cuyahoga County Prosecutor’s Office. This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and former Assistant U.S. Attorney Carmen E. Henderson.
Federal Jury Finds Jackson Man Guilty of Illegally Possessing Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Maurice Dent, 34, of Jackson, was found guilty Thursday, October 1, 2020, of possessing a illegally possessing a firearm after having previously been convicted of a felony crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives for Jackson. The jury returned the verdict following a four-day trial before U.S. District Judge Henry T. Wingate in Jackson.
On January 27, 2016, a Jackson police officer attempted to stop a car driven by Dent. Refusing to pull over, Dent led police on a short pursuit through Jackson before losing control and coming to a stop on Sonny Guy Golf Course. Dent got out of the car, threw a Glock handgun onto the golf course, and ran about twenty feet before he was apprehended. It was then determined that Dent had been convicted previously of multiple auto burglaries.
Dent will be sentenced on January 8, 2021, at 9:30 A.M. by Judge Wingate. He faces up to 10 years in federal prison and a $250,000 fine.
This case was investigated by the Jackson Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorneys Dave Fulcher, Lynn Murray, and Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Federal Judge in San Antonio Sentences State Inmate for Mailing Threatening Communications while IncarceratedRead the Press Release
In San Antonio today, a federal judge sentenced 47-year-old State of Texas inmate Scott Coalwell to 70 months in federal prison for mailing threatening communications including threats to injure his former defense attorney, a probation officer and the U.S. District Clerk for the Western District of Texas, announced U.S. Attorney John F. Bash and U.S. Marshal Susan Pamerleau.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Coalwell be placed on supervised release for a period of three years after completing his prison term.
On February 7, 2020, a federal jury convicted Coalwell on three counts of mailing threatening communications. Evidence presented at trial revealed that while incarcerated in Texas Department of Criminal Justice—Dominguez Unit in San Antonio, Coalwell mailed threatening letters to his defense attorney, probation officer and the sitting judge in his McLennan County case; his defense attorney in his Bexar County case; and the U.S. District Clerk for the Western District of Texas in San Antonio. When questioned by investigators, Coalwell identified these individuals as being “on the top of his enemy list” and that he intended to “lock and load and go through my enemy list.”
The U.S. Marshals Service, the Texas Department of Criminal Justice—Office of Inspector General and Bexar County Sheriff’s Office investigated this case. Assistant U.S. Attorney Bettina Richardson 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.
Federal Court Orders the Forfeiture of Drug House Near Western Carolina UniversityRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the U.S. District Court in Asheville has ordered the forfeiture of a residence located at 129 Reservoir Ridge Drive, in Cullowhee, N.C., used to facilitate extensive drug activities.
“The illicit drug trafficking that took place in the residence jeopardized the health and safety of the entire neighborhood. The drug activity was particularly harmful to the community because the house was adjacent to the campus of Western Carolina University and near a preschool,” said U.S. Attorney Murray. “Drug dealers who use their homes to conduct drug transactions are on notice: together with our enforcement partners, we will use all tools at our disposal to take action and protect law-abiding citizens.”
A federal civil forfeiture complaint filed by the U.S. Attorney’s Office on May 1, 2018, alleged that the residence was used for several years to facilitate the distribution of illegal narcotics, including LSD and marijuana. According to court documents, the residence was the site of multiple illegal drug transactions in 2017 and 2018, and posed a threat to the safety and welfare of the surrounding neighborhood, including the campus of Western Carolina University.
According to the complaint, as early as 2016, the Jackson County Sheriff’s Office began receiving complaints from neighbors concerning drug trafficking activities by the owner of the residence, Mark Loren Miller, who entertained heavy car and foot traffic on a daily basis. Court documents also show that Miller’s neighbors routinely recovered needles and other drug paraphernalia near the residence. In 2018, law enforcement executed a search warrant at the residence, and recovered MDMA, a drug commonly known as “Ecstasy,” a large amount of cash, digital scales, and other drug paraphernalia.
The civil case filed by the United States was stayed pending the resolution of Miller’s state criminal case. Following Miller’s guilty plea to state criminal charges related to his drug activities, litigation in federal court ensued. On Friday, October 2, 2020, the Court ordered the forfeiture of the residence to the United States.
In making today’s announcement U.S. Attorney Murray commended the collaboration between the Jackson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office.
Assistant United States Attorney Jonathan D. Letzring, of the U.S. Attorney’s Office in Asheville, handled the civil proceedings.
Escape from Halfway House Lands Waterloo Man Back in Federal PrisonRead the Press Release
A Waterloo man who escaped from a halfway house where he had been ordered to reside by a federal court was sentenced today to an additional four months in federal prison.
Zavyon Nix, age 23, from Waterloo, Iowa, received the prison term after a guilty plea to one count of escape from federal custody. Nix was originally sentenced to 30 months’ imprisonment for possession of a firearm by an unlawful drug user in United States District Court in Cedar Rapids on June 6, 2017, with a term of supervised release to follow. As a condition of Nix’s supervised release, he was required to reside in the Waterloo Residential Correctional Facility. He walked away from the facility and was missing for approximately a month. The United States Marshal’s Service apprehended Nix at his mother’s residence.
Nix was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Nix was sentenced to four months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Nix 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 Liz Dupuich and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2027-CJW.
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