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Friday 2 October 2020
Pennsylvania Man Sentenced in Drug Distribution CaseRead the Press Release
BOISE - Richard E. Wajda, of Gettysburg, Pennsylvania, was sentenced on October 1, 2020, to 24 months in prison for distribution of a controlled substance on October 1, 2020, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Wajda to serve one year of supervised release following his release from prison and pay a $4,000 fine and forfeit $6,000. Wajda pleaded guilty to the charge on July 7, 2020.
According to court records, On March 2, 2017, the defendant traveled to Idaho to visit. On or between March 2 and March 7, 2017, the defendant sold approximately 85 fentanyl 100 micrograms per hour patches, and 420 alprazolam 2 milligram tablets to a Boise resident for approximately $6,000. Fentanyl is a Schedule II controlled substance and alprazolam is a Schedule IV controlled substance. The defendant left Idaho on March 7, 2017. On or between March 8 and March 10, 2017, the person to whom the defendant sold the drugs died as a result of alprazolam and fentanyl intoxication.
The case was investigated by the Drug Enforcement Administration and the Ada County Sheriff’s Office.
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Pain Management Companies Agree to Pay $1 Million to Resolve Allegations They Violated the False Claims Act and Anti-Kickback StatuteRead the Press Release
United States Attorney Matthew D. Krueger announced today that Advanced Pain Management (“APM”) has agreed to pay $1 million to settle claims asserting violations of the False Claims Act by paying kickbacks and by performing medically unnecessary laboratory tests. APM is a collection of companies including Advanced Pain Management Holdings, Inc. (“APMH”), its wholly-owned subsidiaries APM Wisconsin MSO and Advanced Pain Management LLC, and Advanced Pain Management S.C. (“APM SC”).
The United States alleged that APMH improperly gifted shares of incentive stock to non-employee APM SC physicians who performed pain management procedures at APMH’s ambulatory surgical centers. The incentive stock was to be redeemed upon a sale of APMH and was dependent on the profitability of APMH, which was determined largely by referrals from the non-employee physicians. The incentive stock was allegedly given as a reward for past and anticipated referrals to APMH’s ambulatory service centers.
The United States further contended that APMH paid non-employee physicians to serve as medical directors in a manner that was tied to the volume of procedures at APMH’s ambulatory surgery centers. There were no written agreements documenting the services the medical directors were to provide, and the medical directors were not required to record or report any medical director functions.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The United States also alleged that APM performed confirmatory urine drug tests that were medically unnecessary. For certain claims, providers allegedly failed to customize orders for confirmatory urine drug tests based on each patient’s individualized risk assessment and circumstances, resulting in a higher level of testing than supported by the medical record. APM disclosed these improper urine drug test claims to the Department of Health and Human Services.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Acting Assistant Attorney General Ethan P. Davis for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decisionmaking.”
“The financial arrangements pursued by APMH wrongly gave physicians an incentive to make medical decisions based on their own financial interests, rather than their patients’ interests,” said U.S. Attorney Krueger. “Medicare and Medicaid only pay for procedures and tests that are medically necessary and untainted by kickbacks. This settlement reflects our office’s continuing efforts to combat violations of the False Claims Act and improper arrangements under the Anti-Kickback Statute.”
“It is imperative that the public has faith and trust that the decisions made by medical providers are based upon the best interests of their patients” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The specter of a payment of a kickback in any form or fashion diminishes that faith and trust and can lead to the improper payment and wasting of limited taxpayer dollars. The OIG will continue to work with our investigative partners to ensure the continued integrity of federally funded health care programs.”
The government’s lawsuit resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. Accordingly, the whistleblower will receive a share of the settlement. The lawsuit is captioned United States, et al. ex rel. Hedstrom v. Advanced Pain Mgmt., et al., Case No. 13-C-556, and is pending in the District Court for the Eastern District of Wisconsin.
APM’s settlement with the United States is based on ability to pay, and is part of a broader settlement that also resolves various state law claims.
Assistant United States Attorney Lisa Yun represented the government in this matter, with assistance from the Justice Department’s Civil Division, the U.S. Department of Health and Human Services Office of Inspector General, and the FBI. The settlement agreement states allegations only; APM does not admit liability for the allegations.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Owner of Medical Laboratory Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Shreveport, Louisiana, business owner was sentenced to 40 months in prison on Sept. 30, 2020, for filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney for the Western District of Louisiana Alexander C. Van Hook.
According to documents and information provided to the court, Robert C. Poimboeuf was a part owner of D&G Holdings LLC, a medical laboratory in the Shreveport area. From 2011 through 2015, Poimboeuf filed false tax returns that underreported gross receipts earned from his business. Poimboeuf concealed from his tax return preparers at least two bank accounts reflecting income earned, and falsely characterized business receipts as non-taxable loans. As a result of these actions, Poimboeuf caused a tax loss of more than $1.9 million to the IRS.
In addition to the term of imprisonment, U.S. District Judge Maurice Hicks Jr., ordered Poimboeuf to serve 1 year of supervised release and to pay restitution to the IRS in the amount of $1,904,477.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Van Hook thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division, who assisted Acting U.S. Attorney Van Hook in the prosecution of the case.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend launched in Albuquerque on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
An Albuquerque man was charged on Sept. 29, 2020, in federal court for possessing fentanyl, heroin, and more than a kilo of methamphetamine, as well as four firearms.
Toby Randall Walker, 36, was charged with possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, possession with intent to distribute 40 grams and more of fentanyl, possession with intent to distribute heroin and possession of a firearm in furtherance of drug trafficking.
According to the charging documents, on Sept. 29, agents from the Drug Enforcement Administration encountered Walker and located 1,490 grams of methamphetamine, 53.7 grams of fentanyl and 67 grams of heroin in his vehicle. Agents also located four firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Ohio woman admits to role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Marisa Page, of Columbus, Ohio has admitted to her role in a drug conspiracy that spanned several states, U.S. Attorney Bill Powell announced.
Page, 28, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Page admitted to working with others to traffic methamphetamine, cocaine and heroin in Wetzel County, Ohio, Georgia, as well as into the southern district of West Virginia.
Page faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge James P. Mazzone presided.
New York Physical Therapy Providers Settle Civil Healthcare Fraud AllegationsRead the Press Release
Williamsburg Physical Therapy, P.C. and Euro Physical Therapy, P.C. have agreed to pay the United States and the State of New York $4 million to resolve civil allegations that they falsely billed Medicare, Medicaid, the Federal Employees’ Compensation Act Program (FECA) and the Federal Employees’ Health Benefits Program (FEHBP) for physical therapy services from 2008 to 2018. The settlement also resolves claims against the owners of the two physical therapy practices, Alex Klurfeld and Diana Klurfeld, and First Plus Services, Inc., a management company associated with the practices.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Matthew Modafferi, Special Agent-in-Charge, United States Postal Service, Office of the Inspector General (USPIS-OIG); Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Regional Office (DOL-OIG); and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management (OPM OIG), announced the settlement. Mr. DuCharme thanked the Office of the Inspector General for Health and Human Services and Office of the New York State Attorney General for their assistance in the investigation.
Williamsburg Physical Therapy and Euro Physical Therapy are New York professional corporations owned and operated by Alex Klurfeld, a physical therapist, and Diana Klurfeld, his wife, that provide physical therapy to the public, including to Medicare, FECA, FEHBP, and Medicaid beneficiaries in the New York City. Williamsburg Physical Therapy and Euro Physical Therapy have operated under those names and others at the following addresses:
* 240 South 3rd Street, Brooklyn
* 182 Havermayer Street, Brooklyn
* 705 Manhattan Avenue, Brooklyn
* 37-49 91st Street, Queens
* 452 Fort Washington Avenue, Manhattan
* 601 West 182nd Street, Manhattan
* 3224 Grand Concourse, Bronx
First Plus Service, Inc. is a New York corporation owned and operated by Diana Klurfeld that conducts administrative services for Williamsburg Physical Therapy and Euro Physical Therapy, including medical billing and payroll.
The settlement resolves allegations that the defendants submitted false claims to federal healthcare programs for physical therapy services provided or supervised by someone other than the licensed physical therapist identified on the claim, including unlicensed aides. The settlement also resolves claims that the defendants wrongfully backdated services after treatment authorizations had expired.
“Physical therapy performed by persons who are neither licensed nor supervised by licensed therapists may jeopardize patient health. The knowing submission of claims for payment for such services to federally-funded health programs also defrauds taxpayers. This settlement reaffirms this Office’s commitment to rooting out health care fraud and practices that may cause harm to patients,” stated Acting U.S. Attorney DuCharme.
“This settlement sends a clear message that the government is dedicated to protecting the rights of patients and ridding corruption from federal benefit programs. The U.S. Postal Service Office of Inspector General would like to thank our law enforcement partners for their commitment and efforts in this investigation. The USPS OIG will continue to vigorously investigate those who engage in activities to defraud federal benefit programs and the U.S. Postal Service,” stated USPIS-OIG Special Agent-in-Charge Modafferi.
“Ensuring the integrity of the Department’s Workers Compensation Programs is an important part of the mission of the Office of Inspector General. We will continue to work with our law enforcement partners to vigorously pursue those that engage in fraud involving programs administered by the U.S. Department of Labor,” stated DOL-OIG Special Agent-in-Charge Mikulka.
“The OPM OIG is committed to holding providers accountable for fraudulent claims,” stated OPM Deputy Inspector General Vint. “This settlement is a result of the hard work of our investigative staff and our partners at the Department of Justice.”
The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. The claims resolved by the settlement are allegations only; there has been no determination of liability.
The United States’ case was handled by Assistant United States Attorney Lisa Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
E.D.N.Y. Docket No.: 16-CV-4819 (WFK)
New Haven Woman Admits Lying to Federal Grand Jury about Knowledge of Kidnapping and Triple HomicideRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LAQUASIA SAMMS, also known as “Quasia,” 26, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to making false statements before a federal grand jury in connection with an investigation into the kidnapping and murder of two individuals, and the related murder of a third individual, in November 2015.
According to court documents and statements made in court, on November 16, 2015, Samms was present when an illegal firearm transaction was occurring in her apartment on Shelton Avenue in New Haven. Damian Connor and Tamar Lawrence were also present in the apartment. When an individual left the apartment with firearms that he had not paid for, the individual whose firearms were taken held Connor and Lawrence against their will. Connor and Lawrence were robbed of money and valuables, and then forced to travel in Connor’s car to Hamden where Connor said he could get more money. They were followed in another vehicle by Devante Williams and another individual. After the vehicles arrived at 676 Mix Avenue in Hamden, Connor and Lawrence were shot and killed. Williams was shot and killed a short time later in the area of Sherman Court in New Haven.
During the kidnapping, and after the three victims were murdered, Samms sent several text messages to another individual about what was happening and her reaction to the events.
On March 19, 2019, Samms appeared before a grand jury in New Haven. During her testimony, Samms repeatedly claimed that she did not remember sending any text messages related to the gun transaction, the kidnapping, or the murder of the three individuals.
In pleading guilty, Samms admitted that she sent the text messages, and that she withheld other information that was sought by the federal grand jury.
Judge Dooley scheduled sentencing for December 28, 2020, at which time Samms faces a maximum term of imprisonment of five years.
On December 9, 2019, the grand jury returned an indictment charging Edward Michael Parks, also known as “Lee” and “Trouble,” 34, of Raleigh, North Carolina, with kidnapping and murdering the two individuals in Hamden, and killing the third victim in New Haven to stop him from advising law enforcement what had occurred. Parks is awaiting trial, and U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the Hamden Police Department and New Haven Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Jocelyn C. Kaoutzanis, and Assistant State’s Attorney Seth Garbarsky, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
NDTX Round-Up: September 25 – October 1Read the Press Release
SENTENCING – JERARDO ALVAREZ
On September 29, Jerardo Alvarez, 35, was sentenced was sentenced to 5 years in federal prison for aiding and abetting foreign travel in aid of racketeering. Customs and Border Protection officers in Laredo identified a shipment of 200 kilograms of methamphetamine headed to a Dallas, Texas address from Mexico. DEA undercover agents coordinated delivery of the methamphetamine with a Mexico-based drug dealer. The Mexican drug dealer directed the undercover agents to contact Alvarez. Upon transfer, Alvarez signed the delivery manifest acknowledging receipt of the 48 buckets of the methamphetamine and was taken into custody by law enforcement. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – LEONARD TANNIEHILL
On September 29, Leonard Tanniehill, 20, plead guilty to interference with commerce by robbery. Tanniehill and coconspirators robbed two gas stations located in Irving and Dallas. While robbing the station in Irving, Tanniehill was a passenger in the “getaway” vehicle. He also disguised his identity before entering and robbing a gas station in Dallas. Tanniehill split the proceeds from the two robberies along with other coconspirtions. Tanniehill faces up to 20 years in federal prison for his crimes. This case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – MIGUEL ANGEL SAUSTEGUI-PEREZ
On September 29, Miguel Angel Saustegui-Perez, 30, plead guilty to possession with intent to distribute a controlled substance. Saustegui-Perez visited a Dallas apartment to collect methamphetamine for further distribution. He was arrested while exiting the apartment. Law enforcement executed a search warrant on the apartment and recovered recovered 19 clear gallon sized zip-lock bags containing methamphetamine, $72,122, and a drug ledger. Saustegui-Perez faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Kull is prosecuting this case.
SENTENCING – DEANNA JEFFERSON SMITH
On September 30, Deanna Jefferson Smith, 52, was sentenced to two years’ probation with the condition that she cannot practice law while on probation for theft in connection to health care. Deanna Jefferson Smith, a former municipal judge with the City of Dallas, met and became with Alicia Belfrey-Farley, a federal employee with the Bureau of Prisons. Belfrey-Farley listed Jefferson Smith’s children as Belfrey-Farley’s dependents on her health insurance policy through the Federal Employee Health Benefits Program. Belfrey-Farley also listed also listed Jefferson Smith as a dependent on the SF 2809 Health Benefits Election Form. The total billed cost of the services received by Jefferson Smith's children was approximately $28,000 and Blue Cross Blue Shield paid the providers at least $12,316.00 for the services. This case was investigated by the Department of Justice’s Inspector General. Assistant U.S. Attorney John De La Garza prosecuted this case.
SENTENCING – IAN MOHN
On October 1, Ian Mohn, 27, was sentenced to 15 months in federal prison for making false statements to a federal agent. Mohn reported knowledge of human trafficking in Wisconsin during an interview conducted with the FBI. Agents in Lubbock and Milwaukee spent hours vetting Mohn’s story and requesting additional information which he could not provide. In a second interview with FBI agents, Mohn spent over four hours providing details of the false human trafficking story to law enforcement. At the end of the interview, Mohn admitted that the entire story was fraudulent. This case was investigated by the FBI. Assistant U.S. Attorney Callie Woolam prosecuted this case.
GUILTY PLEA – BRODERICK WALKER
On October 1, Broderick Walker, 40, plead guilty to conspiracy to commit money laundering. Walker engaged in schemes to defraud the IRS by obtaining stolen tax refunds that had been produced through electronic filings of false and fraudulent U.S Individual Income Tax Returns. Walker used stolen PII belonging to deceased individuals. He admitted that the unlawful financial transactions totaled $27,457.07 Walker faces up to 5 years in federal prison for his crimes. This case was investigated by the IRS – Criminal Investigation. Assistant U.S. Attorney Gregory Martin is prosecuting this case.
Mifflin County Man Charged with Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Gerald McFadden, age 36, of Lewistown, Pennsylvania, was indicted by a federal grand jury on drug trafficking offenses.
According to United States Attorney David J. Freed, the indictment charges McFadden with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin between August 17, 2019 and October 17, 2019, in Mifflin County. The indictment also charges McFadden with 15 separate instances of possession with intent to distribute crack cocaine and heroin, and one count of possession with the intent to distribute more than 28 grams of crack cocaine.
This case was investigated by the FBI, the Pennsylvania State Police, and the Mifflin County Drug Task Force. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Based upon the weight of the drugs involved in the alleged conspiracy, the maximum penalties that may be imposed upon conviction are 40 years’ imprisonment and a $5 million fine. A sentence for these drug trafficking offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Meridian Man Sentenced to 10 Years in Prison Under Project EJECT for Illegally Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – Roderick Dunshaw Tingle, 38, of Meridian, Mississippi, was sentenced yesterday by U.S. District Judge Carlton W. Reeves to 10 years in federal prison, followed by 5 years of supervised release, for possessing firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Tingle was also ordered to pay a $1,000.00 fine.
On March 22, 2019, Meridian Police Department officers responded to a residential burglary alarm at a house on 23rd Avenue in Meridian, Mississippi. Officers found that a window in the back door had been broken and the back door was open. When the officers entered the house to see if anyone was inside, they found marijuana on the kitchen counter along with baggies and scales. A search warrant was obtained for the home and three pounds of marijuana was found along with six firearms. The firearms consisted of four pistols and two assault-style rifles.
Various pieces of identifying evidence, such as family pictures and birth certificates, lead officers to believe that the house was occupied by Roderick Dunshaw Tingle. Various neighbors gave statements indicating they believed that drug sales might be occurring at the house, due to the large number of cars stopping by very frequently. A neighbor also identified Tingle as the resident of the house. When interviewed by law enforcement officers, Tingle denied that the guns or the marijuana belonged to him. Tingle gave a name and telephone number for a person he said owned the guns. A records check showed that account for that phone number was in the name of Roderick D. Tingle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Meridian Police Department. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Massachusetts Man Sentenced to 41 Months for Drug Trafficking ConvictionRead the Press Release
ALBANY, NEW YORK – Alexander Yaksic, age 28, of Everett, Massachusetts, was sentenced today to serve 41 months in federal prison for participating in a conspiracy to distribute MDMA, also known by its street name ecstasy.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also sentenced Yaksic to serve a 3-year term of supervised release following his release from prison.
Yaksic pled guilty on October 22, 2019. At that time, he admitted that he used the Internet’s “dark web” to import at least 30 kilograms of MDMA from overseas suppliers and then distributed that MDMA to customers throughout the United States. “Dark web” generally refers to web sites not accessible through ordinary web browsers and search engines, and which individuals can access through an anonymizing browser, without having to provide their computer identifying information.
This case was investigated by HSI, and prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Shira Hoffman.
Marlborough Man Charged with Child Exploitation OffensesRead the Press Release
BOSTON – A Marlborough man was arrested on charges of child exploitation.
Philip Raymond, 63, was indicted on 13 counts of sexual exploitation of minors, and attempt. Raymond was arrested last night and will make an initial appearance in federal court in Boston today.
The indictment alleges that between 2004 and 2012, Raymond produced or attempted to produce child pornography involving 13 different minors.
The charging statute provides for a minimum mandatory sentence of 15 years and up to 30 years in prison per count, at least five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigation, Boston Field Office; Middlesex District Attorney Marian Ryan; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Marlborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Market owners who redeemed more than $10M in food stamp, WIC benefits plead guilty to fraud conspiracyRead the Press Release
COLUMBUS, Ohio – Hassan and Abdurahim Nuriso, owners of the Somali specialty market Towfiq Market on Sullivant Avenue, pleaded guilty in U.S. District Court today to conspiring to commit food stamp and WIC fraud. The brothers redeemed more than $10 million in SNAP and WIC benefits at their store between 2010 and 2019.
A federal grand jury charged the pair in February 2020.
As part of the conspiracy, brothers Hassan, 40, and Abdurahim Nuriso, 47, converted illegally obtained food stamp benefits, WIC coupons and WIC electronic benefits into money, in order to use the money for other purposes.
The defendants allowed SNAP and WIC beneficiaries to purchase items that were not redeemable through the food stamp or WIC programs.
In total, Hassan and Abdurahim Nuriso redeemed in excess of $8 million of SNAP benefits and nearly $2.1 million in WIC benefits at Towfiq Market between 2010 and November 2019.
As part of their pleas, the Nurisos will forfeit nearly $245,000. Approximately $18,650 in cash was seized during a federal search and seizure warrant at one of the Nuriso brother’s homes in Grove City in November 2018. More than $10,000 was seized during during the execution of a federal search and seizure warrant at Towfiq Market.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI),Cincinnati Division; and Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General, announced the pleas entered into today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Brenda S. Shoemaker is representing the United States in this case.
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Man from Iyanbito, New Mexico, pleads guilty to assaulting a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Jarvis Myiah Delgarito, 21, of Iyanbito, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on Sept. 29 to an information charging him with assault upon a federal officer.
According to court records, Delgarito admitted that late in the evening of Feb. 12, he was arrested on the charge of driving while intoxicated and taken to the Isleta Police Department booking room for processing. While there, he became upset and head-butted a Special Law Enforcement Commissioned officer. He also kicked the officer’s calf several times. As a result of the altercation, the officer suffered bruising on her face, scratches on her hands and a contusion on her head. The attack took place within the exterior boundaries of the Pueblo of Isleta in Bernalillo County.
Delgarito is in custody pending sentencing, which has yet to be scheduled. He faces a maximum of eight years in prison.
The Isleta Pueblo Police Department investigated this case. Assistant U.S. Attorney Jennifer Rozzoni is prosecuting the case.
Mail and Identity Thief Sent Back to Federal Prison After Escaping from Waterloo Halfway HouseRead the Press Release
A Cedar Rapids man who was previously convicted of mail and identity theft and who signed out of a Waterloo halfway house for work and never returned was sentenced October 1, 2020, to nearly two years in federal prison.
Darrell Clark Turner, age 53, from Cedar Rapids, Iowa, received the prison term after his guilty plea to one count of escape from custody.
In a plea agreement, Turner admitted that, in October 2017, he was sentenced to 38 months’ imprisonment and three years of supervised release after pleading guilty in federal court to possessing stolen mail matter and aggravated identity theft. Turner was released from prison in June 2019. After Turner violated his supervised release conditions, a federal judge ordered Turner to reside in a Waterloo halfway house. On February 25, 2019, while a resident of the halfway house, Turner signed out for work but was a “no call, no show” for work. He never returned to the halfway house. The United States Marshal’s Service arrested Turner on March 10, 2020.
Turner was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Turner was sentenced to 23 months of imprisonment. Turner must also serve a new three-year term of supervised release after the prison term. There is no parole in the federal system.
Turner has an extensive criminal history, including more than 35 convictions. Turner committed more than ten of those crimes while under court-ordered supervision for other crimes. This is Turner’s third escape conviction.
Turner 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 Tim Vavricek 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 numbers are 20-CR-2019 and 17-CR-17.
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Milwaukee Man Sentenced to 14½ Years in Federal Prison for Arson and Armed RobberyRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on October 1, 2020, United States District Judge J.P. Stadtmueller sentenced Edward B. Burgess (28) of Milwaukee, Wisconsin, to 174 months in prison for Arson and Hobbs Act Armed Robbery. Burgess pled guilty to one count of Arson, in violation of Title 18, United States Code, Section 844(i), on August 28, 2019. Burgess pled guilty to one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a), and one count of brandishing a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c), on October 18, 2019.
According to court records, on December 7, 2018, after a domestic violence incident, Burgess set fire to a rental unit he lived in with his girlfriend and the mother of his children. Luckily, nobody was home at the time of the fire, but the residence was completely destroyed. Four months later, in April 2019, Burgess brandished a firearm during a robbery of a Metro PCS store in the city of Milwaukee.
At sentencing, Judge Stadtmueller noted that the violence exhibited by Burgess was “unacceptable.” He stated that the crimes carried a significant risk of death and that they were among the “most serious” crimes that are brought before the Court. Judge Stadtmueller further noted that the extremely violent nature of Burgess’s crimes warranted a significant period of incarceration.
“Burgess’s violent disregard for others means he will spend over a decade in federal prison. This case underscores the Justice Department’s commitment to combat the extreme levels of violent crime that plague Milwaukee,” said U.S. Attorney Krueger.
“Arson is a violent and serious crime and we appreciate the investigative partnership with the Milwaukee Police Department in investigating this case as well as the United States Attorney’s office for their diligence in prosecuting this individual,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division.”
The arson case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The armed robbery case was investigated by the FBI's Milwaukee Area Violent Crimes Task Force, the Milwaukee County District Attorney’s Investigators, and the Milwaukee Police Department. It was prosecuted by Assistant United States Attorney Julie F. Stewart, Farris Martini, and Benjamin Taibleson.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lubbock Man Allegedly Plotting Mass Shooting Pleads Guilty to Making False Statements to Firearms DealerRead the Press Release
A Lubbock man who allegedly plotted a mass shooting pleaded guilty today to making false statements to a federally-licensed firearms dealer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
William Patrick Williams, 20, was charged via criminal complaint in August 2019 with making a false statements during the purchase of a firearm. He pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., in Lubbock.
According to the criminal complaint, Mr. Williams told his grandmother he had recently purchased an AK-47 rifle and planned to “shoot up” a local hotel and then commit suicide by cop. Sensing he was both homicidal and suicidal, she convinced him to allow her to bring him to a local hospital instead.
Mr. Williams gave officers consent to search the room he had rented at the hotel, where officers found an AK-47 rifle, seventeen magazines loaded with ammunition, multiple knives, a black trench coat, black tactical pants, a black t-shirt that read “Let ‘Em Come,” and black tactical gloves with the fingers cut off. Mr. Williams told officers he had laid out his weapons on the bed so that law enforcement could take custody of them.
ATF received the firearms transaction form (Form 4473) that Williams had completed when purchasing the AK-47. On the form, Mr. Williams listed an address where he no longer resided.
According to court documents, agents discovered that Mr. Williams was actually living with a roommate at a different residence and had been residing there for a month or longer at the time he completed the Form 4473. Mr. Williams admitted to misrepresenting his current address on the firearms transaction form.
“This defendant subverted important firearms laws to obtain a weapon with the intention of producing mass fatalities,” said U.S. Attorney Erin Nealy Cox. “Thanks to the efforts of the defendant’s family members and law enforcement, this tragedy has been averted. If you suspect a friend or loved one is planning violence against themselves or others, do not hesitate to seek help immediately by calling law enforcement.”
“Federal firearms laws are designed to keep weapons from those that shouldn’t have them. This case shows that public cooperation with law enforcement is essential in preventing horrific acts of violence. ATF will continue to work tirelessly with its’ partners to keep firearms out of the hands of those that aim to cause harm”, said ATF Special Agent in Charge Jeffrey C. Boshek II.
“The FBI and our partners at the ATF and Lubbock Police Department were able to respond quickly and stop Mr. Williams from harming anyone or himself,” said Matthew DeSarno, Special Agent in Charge of the Dallas Field Office. “We will continue working with our law enforcement partners to protect the communities we serve.”
Mr. Williams faces up to five years in federal prison for his crime. A sentencing date has not been set.
The Lubbock Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jeffrey Haag, NDTX’s West Texas Branch Chief, and Stephen Rancourt are prosecuting the case.
Louisiana United States Attorneys Announce $26,541,823 in Awards to Address Local Criminal Justice Needs and Victim Rights Issues in LouisianaRead the Press Release
NEW ORLEANS, LA – United States Attorney Peter G. Strasser, United States Attorney Brandon J. Fremin, Middle District of Louisiana, and Acting United States Attorney Alexander C. Van Hook, Western District of Louisiana, jointly announce that the State of Louisiana received a total of $26,541,823 in six United States Department of Justice grants to respond to critical issues in local law enforcement and victims’ rights and services.
Three grants were awarded to the Louisiana Commission on Law Enforcement (LCLE). The first award in the amount of $23,490,366 provides funds from the federal Crime Victims Fund to enhance crime victim services in the state. The second award of $1,414,000 provides funds from the Crime Victims Fund to enhance State Victim Compensation payments to eligible crime victims. And third, $190,769 was awarded to the Louisiana Statistical Analysis Center (SAC), which is the research division of the LCLE. LSAC has been tasked with assessing how law enforcement in the State of Louisiana is meeting the challenge of the present opioid crisis.
In addition, the Louisiana Commission on Law Enforcement and Administration of Criminal Justice has been awarded $770,806. The purpose of this program is to support state and local delinquency prevention and intervention efforts and juvenile justice system improvements. Supported activities and efforts may include planning and administration and development of more effective education, training, research, prevention, diversion, treatment, and rehabilitation programs in the area of juvenile delinquency and programs to enhance the effectiveness of the juvenile justice system.
As a final matter, the East Baton Rouge Sheriff’s Office was awarded $177,123 to fund a broad range of activities to prevent and control crime based on the parish’s specific needs and conditions, and the Louisiana Department of Public Safety and Corrections was awarded $498,759 to continue implementing the Adult Reentry and Employment Strategic Planning Program.
U.S. Attorney Fremin stated, “The federal grant money distributed to our state and local partners exemplifies the Department of Justice’s commitment to provide resources to address critical issues in local law enforcement and to vigorously support victims’ rights and services. Awards, such as these, promote the continuing success of our joint federal, state and local law enforcement efforts to ensure the safety of our community and to support those citizens who have been victimized.”
U.S. Attorney Strasser stated, “The announcement of Louisiana’s awards highlights the commitment from the Department of Justice to afford law enforcement the opportunity to implement innovative programs needed to respond to critical issues in local law enforcement, victims’ rights and services and juvenile justice system services and improvements.”
Acting U.S. Attorney Van Hook stated, “Every defendant that is convicted of a federal crime is ordered to pay an assessment which goes to the Crime Victims’ Fund. Federal grants such as these that have been awarded to the Louisiana Commission on Law Enforcement are an example of how those funds are passed on to local agencies and of how justice is serving victims of crime in the State of Louisiana. We will continue to pursue justice for the people in the Western District of Louisiana and throughout the state.”
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Los Angeles Woman Sentenced to 168 Months for Drug Trafficking and Money LaunderingRead the Press Release
LEXINGTON, Ky. - A Los Angeles woman, Katherine E. Matthews, 41, was sentenced in federal court on Friday, to 168 months in prison, by U.S. District Judge Karen Caldwell, for conspiring to distribute cocaine and marijuana, along with conspiring to commit money laundering offenses.
According to testimony at trial, Matthews partnered with Robert W. Carlson to move cocaine, belonging to the Sinaloa Cartel, from California to Eastern cities including Lexington, Louisville, New York, Charlotte, Atlanta, and Miami, using private planes. Over the course of the conspiracy, Matthews moved thousands of kilograms of cocaine to these cities. She also brought millions of dollars from the Eastern cities back to California, to be handed over to the cartel.
Matthews was convicted in April 2020. Her charges stemmed from a larger investigation into drug trafficking and money laundering activities that was precipitated by a drug seizure from a private plane that arrived, from Van Nuys Airport in Southern California, at Bluegrass Airport in Lexington, in April 2017.
Before Matthews’s trial, several other defendants involved in the conspiracy pleaded guilty. Carlson pleaded guilty to conspiring to distribute five kilograms or more of cocaine in February 2018. In his plea agreement, Carlson admitted to conspiring with Isaac Basilio Rosas, Cedric Allen Oronce Fajardo, and others to transport and distribute drugs found on the plane that landed in Lexington in April 2017. Carlson also admitted to planning and organizing that trip. Carlson was sentenced to 200 months in prison and five years of supervised release in October 2019. Basilio Rosas pleaded guilty to conspiring to distribute five kilograms or more of cocaine in January 2018. He was sentenced to 108 months in prison in May 2018. Oronce Fajardo pleaded guilty to conspiring to distribute five kilograms or more of cocaine in July 2017. He was sentenced to 48 months’ imprisonment in June 2020.
Two other defendants, Robert Earl Wallace and Kendra Michelle Caprice Tally also pleaded guilty for their roles in the drug conspiracy. In February 2020, Wallace pleaded guilty to conspiring to distribute cocaine. Wallace, a private pilot, admitted in his plea agreement that he flew as many as ten trips for Carlson and his associates, where drugs and/or drug proceeds were moved to locations across the country. Wallace admitted that he did at least one of those trips after he learned the trips’ purpose and that that trip involved moving at least 80 kilograms of cocaine. Wallace was sentenced to 60 months of imprisonment on October 2, 2020, and he also received five years of supervised release.
Tally, who was a passenger on a flight that landed in Lexington in April 2017, with cocaine and methamphetamine on the plane, pleaded guilty in February 2020 to the felony offense of lying to federal agents. She admitted in her plea agreement that she knew that there were controlled substances on the flight, but falsely told Homeland Security agents that she did not know the plane was carrying controlled substances. Tally was sentenced to a three-year term of probation.
Under federal law, Matthews must serve 85 percent of her prison sentence. Upon her release, she will be under the supervision of the U.S. Probation Office for eight years.
Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky ; Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Rodney L. Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The Department of Homeland Security and the Kentucky State Police conducted the investigation, with assistance from the Federal Aviation Administration. The United States was represented in this case by Assistant U.S. Attorneys Dmitry Slavin, Roger West, and Will Moynahan.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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KC Man Sentenced to 17 Years for Illegal Firearm After Firing Shots Toward I-70Read the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing a firearm after firing a stolen pistol into the air toward traffic on Interstate 70 near the sports complex.
Adrian Milligan, 44, was sentenced by U.S. District Judge Brian C. Wimes to 17 years in federal prison without parole.
On Sept. 18, 2019, Milligan pleaded guilty to being a felon in possession of a firearm. He admitted that he was in possession of a Kahr 9mm semi-automatic pistol on April 13, 2018.
Kansas City police officers were dispatched to Arrowhead Inn, 6006 E. 31st Street, at 3:18 a.m. on April 13, 2018. A 911 call reported two men and a woman shooting a pistol in the air in the parking lot. Milligan was shooting in the direction of the nearby Interstate 70, which placed motorists in danger as well as motel guests, employees, and other individuals in the area. When officers arrived, they contacted three individuals, including Milligan. Milligan had the pistol, which had been reported stolen, in his left pant pocket. He also had three 9mm rounds of ammunition in his pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Milligan has prior felony convictions for being a felon in possession of a firearm, assault on a law enforcement officer, possession of a controlled substance, possession with intent to distribute, unlawful use of a weapon, distributing a controlled substance near a school, and two prior felony convictions for trafficking.
This case was prosecuted by Assistant U.S. Attorney Mathew Moeder. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Awards over $295.8 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
SAN FRANCISCO – The Department of Justice announced today that it has awarded over $295.8 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“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.”
Ten tribes in the Northern District of California were awarded eighteen grants totaling $10,592,453 in funding, representing more than twice the funding awarded in ten grants to six tribes in 2019. The grants are as follows:
Tribe
Grant and Source
Amount
Big Valley Rancheria Band of Pomo Indians
Violence Against Women Tribal Governments Program (OVW)
$748,399
Cahto Tribe of Laytonville Rancheria
Violence Against Women Tribal Governments Program (OVW)
$488,136
Coyote Valley Band of Pomo Indians
Justice Systems and Alcohol and Substance Abuse (BJA)
$900,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Hoopa Valley Tribe
Public Safety and Community Policing (COPS)
$477,995
Tribal Youth Program (OJJDP)
$416,030
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Yurok Tribe
Public Safety and Community Policing (COPS)
$653,751
Violence Against Women Tribal Governments Program (OVW)
$900,000
Juvenile Healing to Wellness Courts (OJJDP)
$400,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Tolowa Dee-ni’ Nation
Justice Systems and Alcohol and Substance Abuse (BJA)
$362,554
Violence Against Women Tribal Governments Program (OVW)
$900,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$503,691
Wiyot Tribe
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$505,795
Scotts Valley Band of Pomo Indians
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Karuk Tribe
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Bear River Band of the Rohnerville Rancheria
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Total:
$10,592,453
Nationwide, these grants were awarded to American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS). The CTAS is a streamlined application for tribal-specific grant programs. Of the $103 million awarded via CTAS, $41.5 million comes from the Office of Justice Programs, $39.1 million from the Office on Violence Against Women, and $22.5 million from the Office of Community Oriented Policing Services. More than $3.4 million in additional funds from OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees, and almost $1.9 million was awarded to 17 tribal communities to address the public safety challenges posed by the outbreak of COVID-19.
The Department also announced awards and other programming totaling $113 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand, and improve services to victims by supporting programming and technical assistance.
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.
The Department also provided more than $31 million to support a wide range of efforts to address crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking, $7 million to help tribes to comply with federal law on sex offender registration and notification, $16.1 million in separate funding to assist tribal youth, and more than $2.2 million to develop a workforce of direct victim service providers in hard-to-staff positions and locations.
Today’s 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.
Jury finds Mission Man Guilty of Illegally Possessing Firearm and AmmunitionRead the Press Release
United States Attorney Ron Parsons announced that David D. Larvie, Jr., age 38, of Mission, South Dakota, was found guilty of Felon in Possession of a Firearm and Ammunition as a result of a federal jury trial in Pierre, South Dakota.
The charge carries a maximum penalty of 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Larvie was indicted by a federal grand jury on November 13, 2019. The charge stems from an incident that occurred on October 25, 2019, in Mission. On that evening, law enforcement responded to a report that a shot had been fired from a vehicle driven by Larvie in the South Antelope Community, near Mission. Law enforcement subsequently located the suspect vehicle in Mission, and arrested Larvie. Larvie had a plastic bag containing .22 caliber ammunition in his pants pocket and a search of the vehicle revealed a .22 caliber revolver.
Larvie has three prior felony convictions. He was convicted of Third Degree Burglary and Failure to Appear in U.S. District Court in 2003. He was convicted of Use of a Firearm During and in Relation to a Crime of Violence in U.S. District Court in 2008. As a result of these convictions, it is illegal for Larvie to possess firearms or ammunition. Larvie will forfeit ownership of the firearm and ammunition to the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for December 14, 2020. Larvie was remanded to the custody of the U.S. Marshals Service pending sentencing.
Judge sentences Lincoln County man for possession with intent to distribute methamphetamine and being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Henry E. Autrey sentenced Jason Shook to 84 months in prison. The 42-year-old Hawk Point, Missouri resident previously pleaded guilty to two counts of possession of methamphetamine with intent to distribute, and one count of being a felon in possession of a firearm.
According to the Plea Agreement, on February 25, 2019, St. Peters, Missouri Police Officers arrested Shook and recovered four handguns and an amount of methamphetamine from Shook’s car. Shook admitted that he had obtained the firearms and illegal drugs from an individual who went by the name “Bear” several days earlier. Shook further admitted that he intended to sell the methamphetamine, and that he had been selling methamphetamine for “Bear” for approximately six months.
Further, on April 11, 2019, St. Peters, Missouri Police Officers again arrested Shook, and recovered a distribution amount of methamphetamine from his car.
Shook had previously been convicted of a felony crime punishable by a term of imprisonment exceeding one year.
The St. Peters, Missouri Police Department investigated the case. Assistant United States Attorney Geoffrey Ogden is handling the case for the United States Attorney’s Office.
Judge convicts Manhattan man of false statement in firearms purchaseRead the Press Release
MISSOULA – A federal judge convicted a Manhattan man of providing false information on a form when trying to buy a firearm, U.S. Attorney Kurt Alme said today.
U.S. District Judge Dana L. Christensen, on Oct. 1, found Joshua Rodney Meech, 29, guilty of false statement during a firearms transactions. The one-day bench trial was held on Sept. 28. Sentencing was set for Jan. 21, 2021. Meech was detained.
Meech faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
"Keeping firearms out of the hands of persons with protective orders is essential to keeping intimate partners and children safe, particularly during this pandemic when domestic violence is up. Persons who provide false information on firearms purchase forms will be prosecuted to the full extent of the law. I want to thank Assistant U.S. Attorney Cyndee Peterson and the Bureau of Alcohol, Tobacco, Firearms and Explosives for investigating and prosecuting this case," U.S. Attorney Alme said.
The prosecution presented evidence at trial that Meech attempted to buy a 9mm semi-automatic pistol from Bob Ward & Sons, Inc., in Bozeman on April 4. In court records filed in the case, the prosecution said Meech, while shopping for firearms at the store, completed a Firearms Transaction Report, known at ATF Form 4473, signed and dated the form and provided it to an employee for a background check. A few days later, Bob Ward's was notified that Meech's request had been denied.
Meech had checked a box on the form that he was not subject to a court order restraining him from harassing, stalking, or threatening his child, and intimate partner or the child of such a partner. On Jan. 10, the District Court in Gallatin County issued a temporary restraining order against Meech directing him not to commit any acts of violence or harass, threaten, abuse or stalk the petitioner, now his ex-wife, and three minor children. The parties agreed to a Stipulated Order of Protection, which was signed by Meech and his attorney, on Feb. 26. The Stipulated Order was to remain in effect until the parties mutually agreed to dissolve it or upon further order of the court. The Stipulated Order included the statement, "Federal law provides penalties for possessing, transporting, shipping or receiving any firearm or ammunition."
The Stipulated Order was terminated on May 20 by a motion from the petitioner.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Honduran Man Sentenced After Pleading Guilty to Being an Illegal Alien in Possession of a Firearm, Illegal Re-entry and Possession with Intent to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that on October 1, 2020, JOSE HUMBERTO DELSIB-MARTINEZ (hereinafter “DELSIB”), age 40, a native of Honduras, was sentenced to 21 months in federal prison after pleading guilty in December 2019 to a three-count superseding bill of information, which charged him with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), and possession with the intent to distribute a quantity of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1).
According to documents filed in open court and signed by DELSIB at the time of his guilty plea, members of the Kenner Police Department Narcotics Section were conducting surveillance in connection with a drug trafficking complaint within the city of Kenner in the Eastern District of Louisiana. During surveillance, detectives observed DELSIB, the target of the investigation, travelling in his vehicle eastbound in the 600 block of 27th Street. Since the vehicle was observed to have illegally tinted windows, a traffic stop was conducted. DELSIB was advised of the ongoing narcotics investigation. The Kenner Police Detective spoke Spanish and was able to converse with DELSIB in that language. Thereafter DELSIB waived his rights and provided consent to search his vehicle. During the search, detectives located a clear plastic bag containing fourteen individually wrapped baggies of a white powder substance wedged between the driver’s side floor board and center console. A sample of the white powder substance chemically field tested positive for the presence of cocaine, 8.1 grams. The powder- totaling 8.1 grams, was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB agreed to cooperate with the investigation and subsequently provided consent to search his residence, located at 2755 Albany St., Apartment D, Kenner, La. During a search of DELSIB’S bedroom, he directed detectives to a silver 9mm handgun which was later identified as a Lorcin Engineering Model L-9 bearing serial number L-121517, which had been shipped in interstate commerce, a large clear plastic bag containing a white powder substance, and a black digital scale. All items were located within a large wooden floor speaker box. A sample of that white powder substance chemically field tested positive for the presence of cocaine, 18 grams. The substance was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB provided detectives with a voluntary statement advising that all seized items belonged solely to him and he sold cocaine as a way to make extra money. He said that he used the black digital scale to weigh narcotics prior to sale and he used his vehicle as an aid in transport of the illegal narcotics.
DELSIB faced a maximum statutory term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release on all counts. His guideline sentence of twenty one months included a three year term of supervised release. He will be turned over to federal immigration agents for deportation back to Honduras after he serves his prison term. He has been incarcerated since his arrest in February 2019.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement, the Kenner Police Department, and the Jefferson Parish District Attorney’s Office in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Hailey Man Sentenced to 3 Years for Possession of Child PornographyRead the Press Release
BOISE – Noah Fischman, 20, of Hailey, Idaho, was sentenced in U.S. District Court to 36 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also sentenced Fischman to 15 years of supervised release following his prison sentence. Fischman pleaded guilty to the charge on July 7, 2020.
According to court records, the investigation began after Chat Step and Skype reported that child pornography had been uploaded to various online accounts between June 5, 2016 and November 3, 2018. The reports were assigned to the Idaho Internet Crimes Against Children (ICAC) Task Force for investigation. ICAC learned that the IP address used to upload child pornography to the online accounts was tied to Fischman’s residence in Hailey. ICAC obtained a search warrant for Fischmans’s residence and then seized his computer after executing the search warrant. A forensic examination of the computer revealed approximately 4,900 files of child pornography. Fischman admitted to accessing child pornography and to saving child pornography to his computer. Fischman also admitted to receiving child pornography from other users on Chat Step and Skype.
Judge Nye also ordered Fischman to pay restitution of $60,000 to victims in the images he possessed and to pay a special assessment of $5,100. As a result of his conviction, Fischman will be required to register as a sex offender.
This case was investigated by the Idaho ICAC Task Force with assistance from United States Postal Inspection Service and Hailey Police Department, and 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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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.
Fresno Man Charged with Offenses Involving the Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a two-count indictment against Todd Eric Mumma, 57, of Fresno, charging him with actual and attempted sexual exploitation of a minor and receipt of child pornography, U.S. Attorney McGregor W. Scott announced today.
According to court documents, Mumma used hidden digital video recording devices in a residence to create sexually explicit images of a minor. He edited recordings on a computer and then transferred selected images onto a cellphone where the images were stored in a password‑protected application. Forensic review of devices seized with a search warrant revealed images of minors engaged in sexually explicit conduct that had been downloaded onto a computer.
The investigation was conducted by the Central Valley Internet Crimes Against Children (ICAC) Task Force, specifically Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
If convicted, Mumma faces a minimum statutory penalty of 15 years in prison and a maximum of 30 years in prison for the count of sexual exploitation of a minor and a minimum of five years in prison and a maximum of 20 years in prison for the receipt of child pornography and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Freight Company Executive Charged with EmbezzlementRead the Press Release
NEWARK, N.J. – The former program manager of an international freight forwarding company has been arrested on charges that he embezzled over $550,000 from the company, United States Attorney Craig Carpenito announced today.
Morten Nielsen, 36, a Danish national residing in Jersey City, New Jersey, is charged by complaint with two counts of wire fraud. He appeared before U.S. Magistrate Judge Joseph A. Dickson by videoconference yesterday.
According to documents filed in this case and statements made in court:
As program manager for the international freight forwarding company, Nielsen was responsible for the company’s contract relating to the Egyptian Foreign Military Sales program (EFMP), a program between the government of Egypt and the U.S. Department of Defense (DoD) that facilitates the sale and repair of military equipment from the DoD to Egypt. Nielsen was responsible for ensuring all safeguards and logistics for the transportation of certain classified material between the United States and Egypt and for submitting all paperwork and billing invoices on behalf of the company to the Egyptian government. Once approved, those invoices were forwarded to the DoD for payment to the company.
Nielsen allegedly sent fraudulent invoices on behalf of his employer to the Egyptian government that included charges for services performed by a sham company he created. The sham company did not perform any services for his employer. Once the fraudulent invoices were approved by Egypt and paid by the DoD, Nielsen caused his employer to pay the sham company he created over $550,000 over a two-year period.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the DoD – Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Margaret Mahoney, of the Government Frauds Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Sullivan County Sheriff’s Deputy Sentenced to One Year in Federal Prison for EmbezzlementRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mary Handzus, age 64, of Laporte, Pennsylvania, was sentenced on October 1, 2020 to 12 months and a day followed by two years on supervised release by United States District Court Judge Matthew W. Brann, for theft from the Sullivan County Sheriff’s Office.
According to United States Attorney David J. Freed, between 2012 and 2019, Handzus was employed as the Administrative Deputy by the Sullivan County Sheriff’s Office and stole $198,566 from the Sheriff’s Office account.
Judge Brann also ordered Handzus to pay restitution in the amount of $250,755, for the money she stole and the forensic audit conducted following the discovery of the theft.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
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Former Scranton Mayor Sentenced to Seven Years’ Imprisonment on Public Corruption ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former mayor for the City of Scranton, William L. Courtright, age 63, of Scranton, Pennsylvania, was sentenced to seven years’ imprisonment by United States District Court Judge Malachy E. Mannion, on public corruption charges.
According to United States Attorney David J. Freed, Courtright previously pleaded guilty on July 2, 2020, to charges involving criminal conspiracy, bribery and extortion in July 2019. Courtright had been the subject of a multi-year year undercover investigation headed by the FBI. The undercover investigation captured the former mayor accepting cash payments from vendors doing business with the city.
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed. “Not the other way around. Using public office for personal financial gain is a crime, plain and simple. We are pleased with Judge Mannion’s sentence. Elected officials should remain on notice that we will continue to work together with our state and local partners to investigate and prosecute public corruption cases at all levels. There is no such thing as a little bit of corruption. Corruption, not matter the scope is insidious. I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district. We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police. We will not rest in the fight against corruption.”
“Instead of working honestly on behalf of his constituents, William Courtright traded on his office, embracing a corrupt pay-to-play culture,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “With every bribe pocketed and favor accepted, he sold out the city of Scranton a little more. The damage he’s done to the public trust is profound and for that he must be held accountable. Cases like this only fuel the FBI's commitment to tackling public corruption.”
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Michael Consiglio and Michelle Olshefski prosecuted the case.
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Former Milford Teacher Indicted on Possession of Child Pornography ChargeRead the Press Release
BOSTON – A former Milford second grade teacher was indicted yesterday by a federal grand jury for possession of child pornography.
Vincent Kiejzo, 33, was indicted on one count of possession of child pornography. Kiejzo was previously charged by criminal complaint and arrested on Sept. 9, 2020.
According to the charging documents, Kiejzo possessed approximately 6,000 images of apparent child pornography stored within a thumb drive, including images that involved a prepubescent minor or a minor who had not attained 12 years of age.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charging statute provides for a sentence of up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. The Milford Police Department assisted with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Information Technology Employee of Hospital Sentenced to 30 Months in Prison for Computer IntrusionRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RICHARD LIRIANO was sentenced yesterday to 30 months in prison for engaging in a scheme to use malicious software programs, including a program known as a “keylogger,” on dozens of his coworkers’ computers at a New York City-area hospital, secretly obtaining user names and passwords to his victims’ personal email and other accounts, and using that unauthorized access to steal private and confidential files. Using his victims’ stolen credentials, LIRIANO repeatedly compromised their password-protected online accounts, and accessed their sensitive personal photographs, videos, and other private documents. LIRIANO’s sentence was imposed by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Audrey Strauss said: “For approximately five years, Richard Liriano used his computer skills and abused the trust placed in him as an information technology professional at a New York hospital to spy on his coworkers and steal personal information from them. Liriano’s disturbing crimes not only grossly violated the privacy of his coworkers but jeopardized the integrity of computers housing vital healthcare and patient information, costing his former employer hundreds of thousands of dollars to remediate. He will now be held accountable.”
According to the allegations in the Information to which LIRIANO pled guilty, a prior Indictment filed against LIRIANO, as well as statements made during the sentencing and other proceedings in the case:
From at least in or about 2013, up to and including at least in or about 2018, LIRIANO misused administrative access provided to him as an information technology employee at a New York City-area hospital (“Hospital-1”), to log in to employee accounts, and copy other employees’ personal documents, including tax records and personal photographs, onto his own workspace computer for his own personal use.
To further his efforts to steal personal information from Hospital-1’s employees, LIRIANO, used various malicious programs that he installed on Hospital-1’s computer systems without authorization, to steal the user names and passwords of his primarily female co-workers. One of these programs is known as a keylogger, which surreptitiously recorded and sent victim employees’ keystrokes to LIRIANO, such as the usernames and passwords those employees entered to access their personal web-based email accounts. Through the course of this conduct, LIRANO stole usernames and passwords for at least approximately 70 email accounts belonging to Hospital-1 employees or persons associated with those employees (the “Compromised Accounts”).
LIRIANO then used those stolen usernames and passwords to log into the Compromised Accounts and obtain unauthorized access to other password-protected email, social media, photographs, and online accounts to which the Compromised Accounts were registered. Among other things, LIRIANO conducted searches for sexually explicit photographs and videos in the Compromised Accounts.
LIRIANO’s computer intrusions into Hospital-1’s computer networks caused over $350,000 in losses to Hospital-1, which include the expenses that Hospital-1 incurred to remediate the damage that LIRIANO caused to its computer networks.
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In addition to the prison term, LIRIANO, 34, of the Bronx, New York, was sentenced to three years of supervised release. LIRIANO was also ordered to pay restitution of $351,850.25.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
Former Client Relationship Manager at Bank of America Pleads Guilty to Embezzling from Client CompanyRead the Press Release
BOSTON – A former client relationship manager at Bank of America pleaded guilty today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.
Waqas Ali, 31, of Abington, pleaded guilty to wire fraud and unlawful monetary transactions before U.S. District Court Chief Judge F. Dennis Saylor IV, who scheduled sentencing for Feb.1 2021. Ali was charged in August 2020.
Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account.
Ali used over $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former Claims Specialist at Social Security Administration Sentenced to 4 Years in Prison for Misappropriating $732,000 in Fraudulent BenefitsRead the Press Release
CHICAGO — A former claims specialist for the U.S. Social Security Administration was sentenced today to four years in federal prison for pocketing $732,382 in fraudulent benefits.
ANNE AROSTE worked as a claims specialist at the SSA’s field office in Aurora. Aroste was responsible for processing applications for Social Security benefits via the agency’s electronic records system. From 2013 to 2018, Aroste used the Social Security earnings records of deceased workers to create fraudulent applications for benefits. She then used her employee credentials to approve the applications and route the payments to bank accounts she controlled.
Aroste used the fraud proceeds to make credit card payments, mortgage payments, and car loan payments, including payments for a 2015 Mercedes-Benz sport-utility vehicle. She also used fraud proceeds to purchase clothing, groceries, jewelry, and cosmetics.
Aroste, 42, of Montgomery, Ill., pleaded guilty last year to charges of wire fraud and aggravated identity theft. U.S. District Judge Manish S. Shah imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gail S. Ennis, Inspector General of Social Security; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
“In committing this crime, Aroste betrayed the public trust and stole from a program designed to assist the most vulnerable members of our community,” Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum. “Viewing her access to sensitive personal information as an opportunity to enrich herself, Aroste abused her employment position in order to steal people’s identities and defraud her employer.”
“SSA possesses the most sensitive and personal information for almost every person in this country, and SSA employees have a fundamental duty to protect that information,” said Inspector General Ennis. “We take any violation of the public trust very seriously, and we will continue to work with SSA to identify and root out suspected employee fraud. I want to thank the U.S. Attorney’s Office for its support of these investigations and its efforts to bring them to a successful resolution.”
“We are pleased at the outcome of this case,” said Special Agent-in-Charge Mills. “The Diplomatic Security Service is committed to making sure those who commit identity theft and abuse their positions face the consequences of their actions.”
Former Billings coal mining official sentenced to prison for $20 million wire fraud scheme, false kidnappingRead the Press Release
MISSOULA — A former Billings coal mining official who admitted defrauding companies of more than $20 million and lying to investigators about being kidnapped was sentenced today to five years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Larry Wayne Price, Jr., 40, pleaded guilty in December 2018 to three counts of wire fraud, conspiracy to commit money laundering and false official statement.
U.S. District Judge Dana L. Christensen presided. Price was released and allowed to report to prison.
Restitution will be determined at a later date.
"The defendant's crimes resulted in staggering financial losses and harm to many people, including some who lost their entire life's savings, all so he could live in luxury. Today's sentence is a warning to anyone considering looking for 'easy money' from others: You will be caught and you will go to prison. This case also serves as a reminder to all investors to be sure to do thorough due diligence before investing," U.S. Attorney Alme said.
The prosecution said in court documents that from October 2016 until April 2018, Price embezzled about $20,321,134 from three coal-related companies. Price was vice president of surface activities at Signal Peak Energy and also operated a private business called 3 Solutions, LLC, whose primary purpose was to supply chemicals to Signal Peak Energy.
Price defrauded three coal-mining related firms: Ninety M, LLC, a Wyoming company of investors looking to invest in coal mining projects; Three Blind Mice, LLC, another Wyoming company with investors seeking to invest in mining; and Signal Peak Energy.
Based on his reputation as a coal mining expert, Price convinced Three Blind Mice to lend him $7.5 million, saying that 3 Solutions had a contract with a Pennsylvania coal company to install coal mining equipment. Price proposed that Three Blind Mice lend him the $7.5 million for expenses, and he would repay $11 million on Jan. 31, 2018. Three Blind Mice signed an unsecured promissory note and wired 3 Solutions the funds. Price defaulted on the loan. There was no contract between 3 Solutions and a Pennsylvania coal mine. Instead, Price spent the $7.5 million on unrelated expenses.
In another scheme, Price convinced Ninety M’s investors to appoint him as a company representative to help it buy and develop a coal mining property in Tazewell, VA, and to help develop other coal-related ventures. Price engaged in a series deals with other companies on behalf of Ninety M in which he solicited about $13.5 million from the firm, of which $10,475,000 was fraudulently obtained.
Meanwhile, as an employee of Signal Peak Energy, Price fraudulently induced the company to buy coal-related equipment from a firm knowing that the firm would not actually provide the equipment. The firm funneled the money to Price through a bank account registered to 3 Solutions. The scheme defrauded Signal Peak Energy of about $2,396,134.
In April 2018, the Ninety M investors began to question some of the transactions involving Price and had confronted him on the telephone. By then, Price had moved back to Virginia, his former residence.
On April 18, 2018, Price learned Ninety M was sending representatives to confront him about the fraudulent transactions. Price contacted a woman he knew and agreed to hide at a house the woman had rented.
The same day, Price’s wife reported him missing to Virginia authorities and local law enforcement responded. Late that night, Price was located on the side of the road in Gratton, VA., and was taken to a hospital for treatment and released.
In statements to law enforcement agencies, including the FBI and IRS, Price falsely claimed he had been kidnapped by men who may have been associated with an outlaw motorcycle gang. Price claimed the men took him in a van, threatened him and threw him from the moving vehicle onto the side of the road.
Price knew his statements about his alleged kidnapping were false and that he was not abducted by anyone. The false statements cost the government significant investigative resources and hampered the investigation into Price’s own wrongdoing.
Assistant U.S. Attorneys Colin Rubich, Zeno Baucus and Tim Tatarka, along with Assistant U.S. Attorney Randy Ramseyer, of the Western District of Virginia, prosecuted the case. The FBI, IRS and the Montana State Auditor investigated the case.
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Federal Officials Close Investigation into Alleged Hate Crime in MadisonRead the Press Release
MADISON, WIS. – The United States Attorney’s Office, in conjunction with the Civil Rights Division of the United States Department of Justice and the Federal Bureau of Investigation, announced today that a federal investigation found insufficient evidence to pursue federal criminal civil rights charges for an alleged hate crime reported to have occurred on June 24, 2020, in Madison, Wisconsin. A woman reported that on June 24, 2020, she was attacked while stopped at a stoplight by four men who sprayed her with a flammable liquid, threw a lit object to ignite the fluid, and thereby inflicted burns to her face and neck. Federal and local agents met with the complainant and her representatives to inform them of the findings of the investigation and the decision to close the federal inquiry.
A team of experienced federal prosecutors from the United States Attorney’s Office for the Western District of Wisconsin and the Justice Department’s Civil Rights Division worked with FBI and state and local law enforcement agents to conduct a comprehensive investigation of the events of June 24, 2020. The federal investigation sought to determine whether the evidence was sufficient to prove beyond a reasonable doubt a violation of the federal civil rights statutes, including Title 18, United States Code, Section 249. Section 249 criminalizes willfully causing bodily injury to a person because of that person’s actual or perceived race.
After a thorough investigation into the events of June 24, 2020, including extensive interviews, exhaustive review of traffic and surveillance video, and expert review of digital and forensic evidence, federal investigators determined that there is insufficient evidence to prove that a violation of any federal criminal statute occurred. Further, after reviewing all available evidence, authorities could not establish that the attack, as alleged by the complainant, had occurred. Accordingly, the federal investigation into this incident has been closed based on the lack of evidence.
The Justice Department is committed to investigations of allegations of bias-motivated violence and will continue to devote the resources required to ensure that allegations of civil rights violations are fully and completely investigated. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Hands Down Guilty Verdict Against Charlotte Woman for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – A federal jury handed down a guilty verdict against a Charlotte woman late yesterday, for her involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Donna Graves, 58, was convicted of conspiracy to commit wire fraud and money laundering conspiracy. U.S. District Judge, Max O. Cogburn, Jr. presided over the trial.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Michael E. Stansbury, Acting Special Agent in Charge for the FBI in North Carolina, and Chief Tim W. Ledford of the Mint Hill Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, from January 2015 through September 2019, Graves and her two co-conspirators, Gerald Maxwell Harrison and Elizabeth Robin Williams, engaged in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges.
Trial evidence established that, beginning in February 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Court records show that, over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. According to trial evidence and witness testimony, once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living.
Trial evidence also established that Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and they fraudulently “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison, they pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of more than $300,000.
In May 2020, Williams and Harrison pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine. The interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
In March 2019, U.S. Attorney Murray announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative
Fayetteville Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of A MinorRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Scott Royal, age 38, of Fayetteville, Arkansas, was sentenced today to 120 months in federal prison without the possibility of parole followed by 15 years of supervised release on one count of Attempted Enticement of a Minor to Engage in Illegal Sexual Activity. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in September of 2019, Homeland Security Investigations (HSI), the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force, the Arkansas State Police, and several local law enforcement agencies conducted a joint operation to target online sexual predators in Northwest Arkansas. As part of the operation, undercover law enforcement investigators placed multiple advertisements on various online websites and mobile applications representing themselves to be minors.
On September 18, 2019, an individual who called himself Jim Bass (later identified as Royal) responded to a Craigslist advertisement and began emailing with an undercover law enforcement officer who was posing as a 14-year-old female. Over the course of six days, Royal exchanged over 100 emails with the 14-year-old persona, in which he discussed performing various sexual activities with the purported minor. Royal also arranged a meeting with the purported 14 year old for a sexual encounter. The following day, Royal was arrested upon arriving at the predetermined meeting location.
Royal was indicted by a federal grand jury in October of 2019, and entered a guilty plea in February of 2020.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force, and the Arkansas State Police. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Father and Son Charged in Relation to Scheme to Transport Minor Between Croatia and Florida for the Purpose of Engaging in Sexual ConductRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Jordan Jysae Pulido (26, Trinity) with enticement and coercion of a minor traveling out of the country to engage in illicit sexual conduct, and transporting a minor into the country to engage in sexual activity. Pulido and his father, Roberto Santana Jimenez (61, Trinity) have also been charged with conspiracy to transport a minor into the country to engage in sexual activity. If convicted on all counts, Pulido and Jimenez face a minimum mandatory penalty of 10 years, and up to life, in federal prison. The indictment also notifies Pulido and Jimenez that the United States intends to forfeit electronic devices, which are alleged to have been used in the commission of the offense.
According to the indictment, for nearly a year, Pulido used the internet to entice and coerce a minor victim, under the age of 16, to engage in sexual activity with him. In June 2018, Pulido traveled from Florida to Croatia for the purpose of engaging in illicit sexual conduct with the victim. In the month that followed, Pulido and his father, Jimenez, conspired to transport the victim from Croatia to Florida, again so that Pulido could engage in sexual activity with the victim. In July 2018, Pulido transported the victim from Croatia to Florida for the purpose of engaging in sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Florida Department of Law Enforcement, the Pasco Sheriff’s Office, the Koprivnica-Križevac County Police Administration of the Republic of Croatia Ministry of the Interior Criminal Police, and the International Police Organization. The Justice Department’s Office of International Affairs provided investigative assistance. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.gov.
Erlanger Man Sentenced to 150 Months for Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky.- An Erlanger, Ky., man, Justin Frank, 30, was sentenced in federal court on Friday to 150 months in prison, by U.S. District Judge David Bunning, for possession with intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, Frank admitted that on October 25, 2019, law enforcement executed a search warrant at his residence, finding 176.5 grams of methamphetamine and other items consistent with drug trafficking in a safe in his room. On February 7, 2020, law enforcement served an arrest warrant for Frank and found him with an additional 51 grams of methamphetamine, a digital scale, marijuana, and cash.
Frank pleaded guilty in June 2020.
Under federal law, Frank must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA, Detroit Field Division; Christopher Conners, Director of the Northern Kentucky Drug Strike Force; Chief Col. Kyle Rader, Erlanger Police Department; and Chief Spike Jones, Kenton County Police Department, jointly made the announcement.
The investigation was directed by the DEA, Northern Kentucky Drug Strike Force, Erlanger Police Department, and the Kenton County Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Elyria man receives max sentence of 10 years after guilty plea to firearms violationsRead the Press Release
U.S. Attorney Justin Herdman announced today that Joshua T. Grant, age 28, of Elyria, Ohio was sentenced by Judge John R. Adams to a maximum term of 10 years in prison after Grant pleaded guilty to being a felon in possession of a firearm and possession of a firearm by a person with a prior misdemeanor domestic violence conviction.
“We have no tolerance for domestic violence offenders who possess and use firearms illegally,” said U.S. Attorney Justin Herdman. “This sentence, the maximum allowable under federal law, sends an appropriate message to those who stand convicted of domestic violence offenses, even misdemeanors: if you illegally possess or use a gun, you will be held accountable and your next stop is not weeks or months in county jail, but a decade in federal prison.”
“This is another example of how a great working relationship between local and federal agencies can benefit all involved,” said Elyria Police Chief Duane Whitley. “The real winners in this are the citizens of Elyria. I want thank the FBI and the U.S. Attorney’s Office for their help with difficult situations.”
According to court documents, On September 7, 2019, at approximately 1:00 a.m., Elyria Police responded to 120 Portia Court in Elyria for reports of “shots fired.” Upon arrival at the apartment, they found a large amount of blood on the kitchen floor and a victim with a gunshot wound to the chest. The victim was then transported to a hospital and later life-flighted to University Hospital in Cleveland.
Grant, the victim’s boyfriend, was arrested approximately half-mile away, running down the street away from the residence. Officers located a loaded silver and black semiautomatic .380 caliber pistol in his pocket. The officers administered a gunshot residue test, which later revealed the presence of gun powder residue on Grant's hands.
Interviews with those present at the apartment stated that Grant had shot his girlfriend in the chest.
Grant is prohibited from possessing a firearm after having been previously convicted of felonious assault on July 29, 2016 and domestic violence on March 11, 2013 both in the Lorain County Common Pleas Court.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Scott C. Zarzycki.
El Salvadoran Native Pleads Guilty to Federal Charge of Illegally Reentering the United States After Being Convicted of an Aggravated FelonyRead the Press Release
Baltimore, Maryland – Erik Martinez-Melendez, age 24, a native of El Salvador residing in Anne Arundel County, Maryland, pleaded guilty yesterday to illegal reentry of a deported alien after being convicted of an aggravated felony, in this case, second-degree rape.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Field Office Director Francisco Madrigal of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).
According to his guilty plea, Martinez-Melendez is not a citizen of the United States and has no legal status within the United States. In February 2015, Martinez-Melendez pleaded guilty to second-degree rape in the Circuit Court for Anne Arundel County, for having sex with an 11-year-old girl when he was 18 years of age. Martinez-Melendez was sentenced to five years in prison, with all but 18 months suspended and was deported in June 2016, after serving his sentence.
Martinez-Melendez admitted that, after his deportation, he returned to the United States without authority and was apprehended in Maryland by immigration officials in February 2020, after an investigation revealed he was in the United States illegally.
Martinez-Melendez faces a maximum sentence of 20 years in federal prison for illegally reentering the United States after being convicted of an aggravated felony. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Stephanie A. Gallagher has not yet scheduled sentencing.
United States Attorney Robert K. Hur commended ICE-ERO for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Daniel A. Loveland, Jr., who is prosecuting the case.
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East Bay Man Charged with Alleged Multi-Million Dollar Payroll Protection Program FraudRead the Press Release
SAN FRANCISCO – Attila Colar a/k/a Dahood Sharieff Bey, a/k/a Sharieff Dahood Bey, a/k/a Dawud Sharieff Bey Ahed, a/k/a Dawud Azadene, a/k/a Attilla Collan, has been charged in a federal criminal complaint with bank fraud in connection with an alleged scheme to obtain illegally more than $22 million dollars in loans through the U.S. government’s Payroll Protection Program (PPP), announced U.S. Attorney David L. Anderson; FBI Special Agent in Charge John L. Bennett; Federal Reserve System Office of Inspector General for the Board of Governors and the Bureau of Consumer Financial Protection (FRB/CFPB-OIG) Western Region Special Agent in Charge Scott Redington; and Small Business Administration Office of the Inspector General (SBA-OIG) Western Region Special Agent in Charge Weston King. Colar made his initial federal court appearance earlier today before U.S. Magistrate Judge Kandis A. Westmore.
According to the criminal complaint, Colar, 48, of Richmond, submitted three applications between April and June of 2020, on behalf of Hercules-based non-profit All Hands on Deck, Inc. All Hand on Deck is a non-profit that purports to provide housing “to men getting out of prison, food bank services, life and work skills, trainings, resiliency treatment services, prenatal life skills, and a variety of necessary know hows to survive in today’s society.” Colar received over $1.1 million from one of those loans. The complaint separately alleges that six more applications were submitted in that same time period on behalf of two other entities linked to Colar—The Family Investment Group, Inc. and Oversight Security, Inc. The criminal complaint describes how the loan applications are rife with false information, misleading statements, and glaring omissions.
“The Payroll Protection Program is supposed to support everyday Americans suffering economic distress,” said U.S. Attorney Anderson. “The complaint describes the methodical preparation of fraudulent loan applications to deprive the program of $22 million that is sorely needed by the public to endure this national crisis.”
“The COVID-19 pandemic has caused economic suffering for so many families and small businesses. It’s particularly abhorrent when criminals take advantage of this situation for their own greed," said FBI Special Agent in Charge John F. Bennett. "Based on the FBI’s investigation, Mr. Colar appears to have illegally used the Paycheck Protection Program to attempt to fraudulently line his own pockets. The FBI is quickly and carefully investigating all claims of PPP fraud to ensure that American businesses aren’t further victimized during this challenging time.”
“We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic,” said Special Agent in Charge Redington.
“Fraudsters are tireless and brazen in their fraudulent efforts to steal from taxpayers for their selfish ends,” said Special Agent in Charge King. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March of 2020 to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
The complaint alleges Colar prepared numerous loans for submission through the PPP. One such application, submitted in June 2020, requested $2 million from a bank in Salt Lake City, Utah. That loan was ultimately funded in the amount of $1,113,112. The complaint alleges the application contained false information including bogus employee names, false payroll records, and fraudulent tax documents. For example, the application was supported by IRS Forms 941 that purported to establish All Hands on Deck employed 45 people in the third quarter of 2019 and 81 people in both the fourth quarter of 2019 and the first quarter of 2020. Nevertheless, the names of the purported employees not only included one of Colar’s aliases, it also included two contractors and several current and former residents of All Hands on Deck, none of whom could support the information in the IRS forms. In addition, the application contained direct questions pertaining to the background of the principal sponsor; in response Colar allegedly failed to admit he had a criminal record.
Including the successful $2 million loan application submitted on behalf of All Hands on Deck in June, the complaint alleges Colar prepared several other loan applications, the following of which, were actually submitted to banks:
Date Submitted
Applying Entity
Amount requested
April 2020
All Hands on Deck
$2,422,615
May 2020
All Hands on Deck
$1,618,200
June 2020
All Hands on Deck
$2,000,000
June 2020
The Family Investment Group
$3,310,241.05
June 2020
The Family Investment Group
$3,310,000,00
June 2020
Oversight Security, Inc.
$2,893,149.79
June 2020
Oversight Security, Inc.
$2,893,149.79
June 2020
Oversight Security, Inc.
$1,896,063
June 2020
Oversight Security, Inc.
$2,893,147
In sum, Colar is charged with bank fraud, in violation of 18 U.S.C. § 1344. The charge in the complaint is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law. Colar faces a maximum penalty of 30 years in prison and a million dollar fine, if convicted.
Magistrate Judge Westmore ordered Colar released on a $100,000 bond. Colar’s next federal court appearance is scheduled for October 27, 2020, for further proceedings.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI, FRB/CFPB-OIG, and SBA-OIG.
Detroit Man Sentenced to 148 Months for Fentanyl Trafficking ConspiracyRead the Press Release
LEXINGTON, KY- A Detroit, Michigan, man, Dayquan Dejon Johnson, 23, was sentenced in federal court on Friday to 148 months in prison, by Chief U.S. District Judge Danny Reeves, for conspiracy to possess with intent to distribute 40 grams or more of fentanyl and aiding and abetting possession with intent to distribute fentanyl.
According to his plea agreement, Johnson admitted that since at least 2018, he conspired with Dejon Johnson, Melinda Parks, Melissa Shortridge, and others to distribute heroin and fentanyl in the Eastern District of Kentucky.
Johnson pleaded guilty in May 2020.
Johnson’s co-defendants have been sentenced. Dejon Johnson received 46 months and four years of supervised release; Parks received 78 months and five years of supervised release; and Shortridge received 70 months and three years of supervised release.
In addition to the prison sentence, Johnson was ordered to pay a $3,500 fine. Under federal law, Johnson and his co-defendants must serve 85 percent of their prison sentence. Upon his release, Johnson will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Jeffrey T. Scott, Special Agent in Charge, DEA Louisville; made the announcement. The investigation was pursued by DEA, KSP, and the Winchester Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Detroit Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BECKLEY, W.Va. – Cornelius Pope, 24, from Detroit, Michigan, pled guilty today to distribution of fentanyl, announced United States Attorney Mike Stuart.
“Another Detroit drug dealer. Another conviction,” said United States Attorney Mike Stuart. “Pope was selling deadly fentanyl and heroin in the Beckley area. Whether we take drug dealers down one at a time or shutter entire networks, we are removing these poison peddlers from our communities.”
Pope admitted that on November 7, 2018, January 25, 2019, and May 26, 2020, he sold fentanyl and heroin to confidential informants working with the Beckley-Raleigh Drug and Violent Crime Task Force.
Pope faces up to 20 years in prison when he is sentenced on January 22, 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley-Raleigh Drug and Violent Crime Unit. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney L. Alexander Hamner 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. 5:20-cr-00085.
Follow us on Twitter: SDWVNews and USAttyStuart
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Department of Justice Files Statement of Interest Supporting Capitol Hill Baptist Church's Efforts to Practice its Faith During COVID-19Read the Press Release
The Justice Department today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights. The Justice Department is committed to defending both of these fundamental freedoms and in supporting all Americans rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Justice Department is committed to upholding all the civil rights protected under the first amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no constitutional or statutory basis for allowing protests and rallies attended by thousands of people, while at the same time silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Delaware County Man Sentenced to 35 Years for Sexually Abusing and Recording the Abuse of a Young Boy, and for Collection of More than 114,000 Images of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Archie Kissling, 25, of Aston, PA, was sentenced to 35 years in prison, 10 years of supervised release, and $39,000 in restitution by United States District Court Judge Jan E. DuBois for multiple child exploitation offenses, stemming from his sexual abuse of a young child for months, and his extensive collection of horrific child pornography. Kissling’s sentence also requires him to register as a sex offender under Megan’s Law.
In July 2019, the defendant pleaded guilty to six counts of manufacturing child pornography, and one count each of transportation and possession of child pornography. The investigation uncovered videos that Kissling had taken of himself sexually assaulting a 7-year-old boy in his care numerous times over at least a four-month period. Among other abuse, Kissling filmed himself masturbating the child, orally raping him, and attempting to sodomize the victim on multiple occasions. When investigators seized the defendant’s phones and online accounts, they uncovered a massive collection of child pornography that showed not only Kissling’s 7-year-old victim, but also more than 114,000 images and videos of some of the most sadistic pornography imaginable. The bulk of his collection featured infants, toddlers, and prepubescent children, primarily boys, who were being sexually abused by adults through digital penetration, and oral and anal rape.
“As federal prosecutors, we see horrific examples of child exploitation and sexual depravity on a routine basis, but this case is in a special category,” said U.S. Attorney McSwain. “Kissling belongs in only one place – prison – and will now spend the next thirty-five years there, where he will be unable to harm any more innocents.”
“Archie Kissling repeatedly sexually abused a little boy and documented it for his own twisted gratification,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His trove of horrific images of that child and others represents an unimaginable level of pain and trauma inflicted on those young victims. Locking Kissling up doesn’t undo that damage, not by a long shot. But it does keep him from hurting anyone else and for that we’re thankful.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, the Darby Township Police Department and the Pinellas County, Florida Sheriff's Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Covington Man Sentenced to 63 Months for Conspiracy to Distribute Crack CocaineRead the Press Release
COVINGTON, Ky. - A Covington man, Robert Copeland, 43, was sentenced in federal court on Friday, to 63 months in prison, by U.S. District Judge David Bunning, after previously admitting to conspiring with others to distribute crack cocaine.
In his plea agreement, Copeland admitted that he conspired with another individual Dennis Duane Free to distribute crack cocaine between October 1, 2018 and April 2, 2019. During this time, law enforcement conducted control buys of crack cocaine from Free.
Copeland pleaded guilty in June 2020. Free, Copeland’s co-defendant, was sentenced in May 2020 and received 132 months in prison and three years of supervised release.
Under federal law, Copeland must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office, jointly made the announcement.
The investigation was directed by the FBI Safe Street’s Task Force. The United States was represented by Assistant U.S. Attorney Wade Napier.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Convicted Felon Sentenced to Prison for Illegally Possessing A FirearmRead the Press Release
Albany, Ga. – A convicted felon with a violent criminal past was sentenced to 84 months in prison after a federal jury found him guilty of possession of a firearm by a convicted felon, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia.
David Earl Butler, 30, of Valdosta was sentenced by U.S. District Judge Louis Sands in Albany federal court on Wednesday, October 1 to 84 months in prison followed by three years supervised release for possession of a firearm by a convicted felon. Butler stood trial in Valdosta federal court in November 2019. The jury took less than an hour to return the guilty verdict. There is no parole in the federal system.
“A violent convicted felon terrorizing the Valdosta community will spend the next seven years in a federal prison for illegally possessing a firearm. We are working with our federal, state and local law enforcement partners to identify similar cases that belong in a federal court, where convicted felons caught brandishing guns will face prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank the Lowndes County Sheriff’s Office, the Georgia Department of Community Supervision and the FBI for their work in this case.”
Defendant Butler was taken into custody by Lowndes County Sheriff’s Office deputies on April 3, 2018, arrested on an outstanding felony warrant for aggravated assault with a deadly weapon and possession of a firearm during the commission of a felony. During a lawful search of the residence where Defendant Butler was taken into custody, deputies found a loaded .40 caliber Desert Eagle handgun and a box of .40 caliber ammunition. Defendant Butler was previously convicted of aggravated assault and terroristic threats in the Superior Court of Lowndes County, Georgia. The Defendant is currently on felony probation in Lowndes County. It is illegal for convicted felons to possess firearms.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, the Georgia Department of Community Supervision and the Lowndes County Sheriff’s Office. Assistant U.S. Attorneys Julia Bowen and Michael Solis prosecuted the case for Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Charlotte Man Involved in Two Separate Identity Theft Schemes Pleads Guilty to Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Jamel Johnson, 30, of Charlotte, appeared before U.S. Magistrate Judge David Keesler today, and pleaded guilty to federal charges for his role in two separate schemes involving identity theft, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Johnson was initially indicted on June 19, 2020, on bank and wire fraud conspiracy and aggravated identity theft charges, for his involvement in a scheme to obtain fraudulent bank loans using stolen personal information of identity theft victims. On September 25, 2020, new federal wire fraud charges were filed against Johnson, for using stolen identities to file for, and receive, COVID-19 Unemployment Insurance (UI) benefits.
According filed court documents and statements made at Johnson’s plea hearing today, from August 2019 to June 2020, Johnson and his co-conspirators engaged in a bank loan scheme involving the use of stolen personal identifying information of identity theft victims. Court documents show that, after acquiring the victims’ stolen identities on the internet and elsewhere, the co-conspirators used them to attempt to obtain more than $1,000,000 in fraudulent bank loans and goods.
According to court records, over the course of the investigation into the bank loan scheme, law enforcement discovered that Johnson was also executing a separate scheme involving COVID-19 UI benefits. In this scheme, court records show that, from May 21, 2020 through July 22, 2020, Johnson defrauded the U.S. Department of Labor, the State of Wisconsin, and the State of Arizona, by submitting fraudulent claims for unemployment insurance benefits in the names of identity theft victims. During the relevant time-period, Johnson fraudulently obtained more than $189,912 in fraudulent UI benefits using the compromised identities of approximately 70 victims. According to court records, Johnson directed that payments of the fraudulent UI benefits be made to Green Dot cards, or to bank accounts under Johnson’s control.
Johnson is currently on release pending sentencing. The charge of conspiracy to commit bank and wire fraud carries a maximum prison sentence of 30 years and a $1 million fine. The aggravated identity theft charge carries a minimum prison term of two years, consecutive to any other prison term imposed, and a $250,000 fine. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine.
One of Johnson’s co-defendants in the bank loan scheme, Justin Parks, has also pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft. A sentencing date for Johnson and Parks has not been set. The charges against David Clarke and Mikael Roberts for their alleged involvement in the loan scheme are still pending, and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, and the Charlotte Mecklenburg Police Department for their invaluable assistance.
The prosecution for the government is handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.