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29 October 2020
Houston man charged with defrauding investors in oil and gas dealsRead the Press Release
HOUSTON – Authorities have arrested a 55-year-old Houston man on charges of operating a scheme to defraud investors in oil and gas transactions, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the 12-count indictment against Arael Doolittle Oct. 22. He is expected to make his initial appearance today before U.S. Magistrate Judge Dena H. Palermo at 2 p.m.
The indictment alleges Doolittle operated Sariel Petroleum LLC and Sariel Enterprises LLC. He is alleged to have taken in excess of $1.2 million from 21 investors under false pretenses through his companies. Doolittle falsely represented he had the necessary pre-existing relationships with major refiners and petroleum product suppliers to purchase fuels for resale to his customers, according to the charges.
The indictment further alleges Doolittle provided falsified documents to the investors to further assure them of the legitimacy of his representations.
Doolittle is charged with eight counts of wire fraud and four counts of engaging in monetary transactions in criminally derived funds. Wire fraud carries a potential 20-year-maximum sentence and a possible $250,000 maximum fine. If convicted of any of the other four counts, he faces the same fines and up to 10 years imprisonment.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Holyoke Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke man pleaded guilty in federal court in Springfield today to distributing heroin.
Jose Rodriguez, 34, pleaded guilty to distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 5, 2021.
Rodriguez sold heroin on Sept. 19 and 27, 2018 in Holyoke. Rodriguez also possessed and intended to distribute 100 or more grams of heroin on July 6, 2019 in Holyoke. The charges were the result of an investigation into heroin trafficking in Holyoke.
The charge of distributing and possessing with intent to distribute heroin provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Harrison County man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Horner, III, of Clarksburg, West Virginia, was sentenced today to 70 months of incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Horner, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2020. Horner admitted to having methamphetamine in October 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Guilford Building Restoration Business Owner Pleads Guilty to Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Parker, of Guilford, Vermont, waived indictment and pleaded guilty today to a one-count information charging him with tax evasion. U.S. District Judge Christina Reiss ordered Parker released on conditions pending sentencing on February 15, 2021.
According to court records, Parker is the sole proprietor of Christopher M. Parker LLC, a building restoration business based in Guilford, Vermont. His business generated approximately $3.35 million in gross revenues between 2014 and 2018. However, Parker reported only approximately $2.5 million in gross revenues to the Internal Revenue Service on his income tax returns. As a result, Parker avoided paying roughly $281,000 in federal income taxes due and owing for that period.
Tax evasion is punishable by up to five years of imprisonment and a fine of up to $100,000. Parker’s sentence will be determined by the Court with reference to federal sentencing guidelines.
United States Attorney Christina E. Nolan commended the investigative efforts of the Internal Revenue Service’s Criminal Investigation Division.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Jerome F. O’Neill of Gravel & Shea PC represents Parker.
Government Contractor Agrees to Plead Guilty to Fraudulently Billing Federal and State Construction ContractsRead the Press Release
BOSTON – VJ Associates, a group of companies based in Hicksville, N.Y., has agreed to pay $3.13 million to resolve criminal and civil charges relating to a long-running overbilling scheme involving numerous government-funded construction projects in Massachusetts and New York.
VJ Associates provided sub-contracted estimating and scheduling services for construction projects funded with state and federal money. Services included forecasting costs and resources to complete a project, and estimating the time necessary to complete milestones in a project. VJ Associates employees frequently billed government contracts hourly for their time. The U.S. Department of Transportation (DOT), the State of New York and the Commonwealth of Massachusetts funded many projects on which VJ Associates worked.
“VJ Associates defrauded government-funded infrastructure projects by billing for bogus hours, adding hundreds of thousands in unnecessary costs to projects on which it worked,” said United States Attorney Andrew E. Lelling. “Our office is committed to protecting taxpayer dollars and the integrity of federally funded infrastructure programs, and today’s resolution is another example of how we will continue to use our criminal and civil authority to ensure that government contractors are honest, upstanding corporations that do not waste federal monies.”
“This investigation illustrates our commitment to rooting-out illicit business practices aimed at defrauding the Government on public infrastructure projects for commercial gain,” said Douglas Shoemaker, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG). “We will continue to work with our Federal, State, and local law enforcement and prosecutorial partners to investigate and hold accountable those who perpetrate fraud against the American taxpayer.”
“VJ Associates was hired by the Port Authority to assist with critical public infrastructure projects — and badly over-billed the agency. The Port Authority Office of Inspector General investigated, and today VJ Associates has agreed to plead guilty in federal court; to pay millions in fines and restitution; and to be debarred from doing business with a wide range of government agencies. Padding the bill is stealing from the public we serve, and today’s federal guilty plea makes it crystal clear — contractors that over-bill the Port Authority will face severe consequences,” said Port Authority of New York and New Jersey Acting Inspector General Michael Farbiarz.
In a criminal information filed today, the United States charges that, from at least January 2007 through August 2018, VJ Associates, Inc. of Suffolk—the largest and original VJ Associates entity—conspired with other VJ Associates entities and employees to pad bogus time charges on government construction contracts funded by the DOT, the State of New York and the Commonwealth of Massachusetts. As a result, the VJ Associates entities improperly received more than $1.2 million in state and federal taxpayer money. The improper billing included, for example, hours employees spent working on unrelated projects, time spent on administrative tasks and time doing no work. Under pressure from management, employees openly discussed improper billing as “juicing” and “tagging” hours in order to “maximize” bills on government projects and not “leave money on the table.” One employee summed up his billing practices to his colleague as a “shell game” and explained that, when management “gave him a bit of trouble” about how he billed his time, he fraudulently maximized his hours billed because “what the hell,” management “pay[s] me every two weeks,” and he was “not the boss.”
VJ Associates, Inc. of Suffolk has agreed to plead guilty, to make restitution to the DOT, New York and Massachusetts, and to pay a criminal fine of $530,000.
In addition, all of the VJ Associates entities—VJ Associates Inc. of Suffolk; VJ Associates of New England, Inc.; VJ Associates of New Jersey; and VJ Associates of Washington DC, Inc.—have entered into a civil settlement with the United States resolving allegations that they overbilled government contracts. Under the terms of that settlement, the VJ Associates entities have agreed to pay $2.6 million collectively to the United States and certain states and to permanent debarment from receiving federal funds.
The civil settlement with the United States arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement with the United States, the whistleblower will receive 22.5% of the recovery.
The government’s resolution of this matter illustrates the government’s emphasis on combating fraud related to government-funded transportation projects. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Transportation, at 1-800-424-9071.
U.S. Attorney Lelling, Regional DOT-OIG SAC Shoemaker and Port Authority of New York and New Jersey Acting Inspector General Farbiarz made the announcement today. Assistant United States Attorneys Brian M. LaMacchia and Evan Gotlob of Lelling’s Office are handling the matter.
Gorham Man Sentenced to 5 Years Probation for Wire Fraud ConspiracyRead the Press Release
A Gorham man was sentenced yesterday in federal court in Portland for participating in a wire fraud conspiracy, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Michael Barden, 67, to probation for five years. In addition, Judge Torresen held Barden liable for restitution in an amount to be determined at a future proceeding. Barden pleaded guilty to a one-count information charging him with a wire fraud conspiracy on January 31, 2020.
According to information revealed in court, Barden met an individual online and began a virtual romance. Barden never met this individual in person. Beginning in August, this person used credit card accounts illegally obtained to make online purchases from retailers in Maine and elsewhere. Barden would pick up or accept delivery of the merchandise and then sell it through online marketplace websites. He would keep a small share of the proceeds and wire the rest of the proceeds overseas. In addition, he assisted this person in fraudulently purchasing a motor vehicle online by posing as the buyer and using the buyer’s identification to complete the purchase. It is estimated the conspiracy stole between $40,000 and $95,000.
“The defendant in this case was drawn into criminal activity through what he thought was an online relationship,” U.S. Attorney Frank said. “Maine residents need to be wary of any online solicitations for friendships or romances from people they do not know. Scammers overseas are using Mainers to assist in criminal activity that can lead to federal felony convictions for all involved.”
This prosecution was the result of a collaborative investigation conducted by the U.S. Secret Service and the Maine State Police.
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Georgia man sentenced to four life sentences plus 10 years for drug distribution resulting in deathRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrick Robinson, of Cartersville, Georgia, was sentenced today to life incarceration plus 10 years for drug distribution resulting in death and a myriad of other charges, U.S. Attorney Bill Powell announced.
“This was a horrible series of events. The facts placed a powerful spotlight on the depravity of the drug trade and the extent that those involved will go to conduct their activities. Nothing can bring back Ms. Dubois to her family, but the prosecution and the sentencing sent the only message we can send: these types of crimes will be severely punished. The prosecution is the result of excellent work by law enforcement in multiple jurisdictions and a dedicated prosecution team intent on rendering justice. I once again offer my condolences to the family of Ms. Dubois,” said Powell.
After a nine-day trial in January 2020, a federal jury found Robinson, age 35, guilty of one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” one count of “Distribution of Methamphetamine,” one count of “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” one count of “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime,” and one count of “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”
During the trial, the jury heard testimony that Robinson trafficked and distributed more than 4.5 kilograms of methamphetamine, as well as cocaine hydrochloride and fentanyl, in Marion County and elsewhere from May 2018 to September 2018. He would travel from Georgia to West Virginia, trafficking the drugs from different motel and hotel rooms and other locations. Robinson and his conspirators carried at least three firearms during the drug trafficking crimes.
At one of the motels in Lewis County on August 9, 2018, Robinson distributed fentanyl to Courtney Dubois of Fairmont, West Virginia. That drug, according to a forensic pathologist, was an independent sufficient cause of Courtney Dubois’ death. The jury heard testimony and saw evidence that Robinson took the body of the victim to Georgia, where he dismembered the body and disposed of it at the Bartow County Landfill.
“All too often, drug dealers use guns to further their violent criminal activities and threaten the safety of our communities” stated ATF Special Agent in Charge R. Shawn Morrow, of the Louisville Field Division which includes most of West Virginia. “ATF provides investigative resources that assist in the arrest and successful prosecution of violent criminals like Terrick Robinson. We remain committed to working with our task force partners in arresting these offenders and pursing sentences that are commensurate with their criminal activity.”
“Today, our hearts are with Ms. Dubois’ family,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “As a father, I can’t even begin to fathom what they must feel, after losing their daughter in such a violent and horrific manner. Those responsible for this heinous crime should expect the full weight of the justice system.”
Robinson was sentenced to life incarceration for each of the following counts: “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” “Distribution of Methamphetamine,” “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” and “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”
He also was sentenced to 480 months for “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” 240 months for “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” and 60 months each for “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” and “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime.” The life sentences will run concurrently, along with the sentences for 480 months and 240 months. Each of the 60-month sentences will run consecutive to one another to total another 10 years of incarceration.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Fresno Man Sentenced to 15 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Edgar Barrera, 31, of Fresno, was sentenced to 15 years in prison today for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, on Nov. 10, 2019, Barrera was stopped for a traffic violation in the residential neighborhood near the intersection of Carmen and Winery Avenues in Fresno. During the stop, a New England 12-gauge shotgun was found hidden in the backseat of Barrera’s vehicle. Barrera is a convicted felon with three prior felony convictions for domestic violence.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Antiviolence Operation Results in 4 Parolees Charged with Firearms and Drug Trafficking OffensesRead the Press Release
FRESNO, Calif. — As part of an ongoing concerted effort by local, state and federal law enforcement to address the significant uptick in violent crime in the City of Fresno, a federal grand jury returned indictments today against four Fresno County residents with various firearms and drug offenses, U.S. Attorney McGregor W. Scott announced.
“These defendants were all on active parole for prior gun or drug charges— three had ties to criminal gangs, and when arrested, three were in possession of guns and the fourth was in possession of drugs,” said U.S. Attorney Scott. “The U.S. Attorney’s office has focused enforcement efforts against the most violent criminals in our district and will continue to work with federal, state, local, and tribal law enforcement and community partners to reduce crime, save lives, and restore safety to our communities. The bloodshed must stop.”
“The importance of today’s announcement cannot be overstated,” said Fresno County District Attorney Lisa A. Smittcamp. “These indictments not only send a message to criminals that seek to wreak havoc on our communities, but they offer some assurance that our proactive collaboration with our state, local and federal partners is delivering tangible results. As the state continues to reduce accountability for those that would do us harm, our ongoing partnership with the U.S. Attorney’s Office, and their willingness to bring federal prosecutions, will be critical to achieving truth-in-sentencing and, most importantly, justice for victims.”
Reyes Diaz, 26, of Fresno, was charged with possession with intent to distribute methamphetamine and heroin. According to court documents, a parole search of Diaz’s apartment yielded over 2 kilograms of methamphetamine, over 300 grams of heroin, digital scales, and over $11,000 in cash. Diaz is on parole for permitting another to shoot a firearm from a vehicle with a gang enhancement.
Alejandro Chavarria, 33, of Mendota, was charged with being a felon in possession of ammunition. According to court documents, Chavarria was a wanted parolee. Police found Chavarria in Oakhurst coming out of a motel carrying a backpack and duffle bag. When officers approached him, he dropped the backpack, which was found to contain a Glock-style pistol bearing no serial number with an extended magazine loaded with 30 rounds of ammunition. Chavarria ran back into the unit from which he had emerged, and after a stand-off with police, was arrested. The duffle bag contained two disassembled AR‑style rifles, and three 30-round magazines. Chavarria has been convicted of attempted carjacking, drug possession and robbery. He is on parole for robbery.
Shawn Darnyel Matthews, 23, of Clovis, was charged with being a felon in possession of a firearm. According to court documents, Matthews, who was wanted on several felony warrants as well as a parole warrant, was arrested in Fresno, and found to be in possession of a loaded firearm. Matthews admitted to being a West Roy gang member. He is a convicted felon prohibited from possessing firearms or ammunition. According to Fresno County Superior Court records, Matthews has been arrested and released on three occasions in 2020 for domestic violence, pimping, robbery, and assault. He is currently in custody on a federal detainer. Matthews is on parole for assault with a firearm.
Oshay Laray Pullen, 24, of Fresno, was charged with being a felon in possession of ammunition. According to the criminal complaint, on Oct. 21, during a parole-compliance check, a law enforcement officer searched Pullen and found a loaded handgun magazine in his pocket. The magazine contained 10 rounds of .40-caliber ammunition. Inside a car Pullen had been seen exiting, detectives found a .40‑caliber Glock-style unserialized firearm hidden underneath a child’s safety seat. The handgun was loaded with a high‑capacity magazine attached to it. Pullen is prohibited from possessing firearms or ammunition because of his prior criminal record. Pullen is on parole for assault with a firearm.
These cases are the product of investigations by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Fresno Police Department, the Madera Police Department, the Multi-Agency Gang Enforcement Consortium, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jessica A. Massey, Kate Schuh, Justin Gilio, and Antonio Pataca are prosecuting the cases.
If convicted, Diaz faces a mandatory minimum statutory penalty of 10 years in prison and a $10 million fine. If convicted, Chavarria, Matthews, and Pullen face a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
These cases are also part of Project Guardian, the Department of Justice’s signature initiative to
Four Individuals Plead Guilty in Tequila Cargo Theft RingRead the Press Release
Tampa, Florida – Lemuel Escobar (37, Clermont), Humberto Ramirez (39, Mascotte), Alberto Obaya (48, Plant City), and Vidal Estrada (68, Fort Lauderdale) have each pleaded guilty to charges involving cargo theft of an interstate shipment of goods, and receipt and possession of stolen goods. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, on December 30, 2018, Escobar, Ramirez, Obaya, and Estrada stole a tractor trailer that was parked near U.S. Route 301 in Tampa. The trailer contained cases of Patron tequila, with a value of more than $500,000. The tequila was an interstate shipment from Texas that was en route to a business in Lakeland, Florida. The shipment had not yet reached its final destination when the trailer was stolen.
The trailer was relocated to Thonotosassa where the defendants proceeded to move cases of the tequila from the trailer to a nearby box truck. The box truck was registered to Escobar. Deputies from the Hillsborough County Sheriff’s Office were alerted to the movement of the trailer and, when they arrived on scene, the deputies observed the defendants moving the cases of tequila from the trailer to the box truck. When the deputies commanded the individuals to stop, they fled but were later arrested near the scene. The cases of tequila were recovered.
This case was investigated by the Federal Bureau of Investigation (Cargo Theft Task Force) and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Maria Guzman.
Fort Wayne Man Sentenced to 72 Months in PrisonRead the Press Release
FORT WAYNE—Sean Dunham, age 25, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Dunham was sentenced to 72 months in prison followed by 3 years of supervised release.
According to documents in this case, in or about June 2019, Dunham possessed a firearm after being previously convicted in 2018 of Possession of a Syringe, a felony, in Allen County Indiana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Indiana State Police and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
Former inmate at FCI Hazelton sentenced for manslaughterRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Dean Odeneal, former inmate at FCI Hazelton in Bruceton Mills, West Virginia, was sentenced today to 80 months of incarceration for manslaughter in the death of another inmate, U.S. Attorney Bill Powell announced.
Odeneal, age 30, pled guilty to one count of “Voluntary Manslaughter” in June 2020. Odeneal admitted to stabbing another inmate, killing him, in August 2014.
Odeneal is currently serving time in another federal prison for kidnapping from a 2012 incident in North Dakota. He was sentenced to 144 months in 2013 for that crime. The sentence imposed today, 80 months, will run consecutively to any previous sentence.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Prisons and the FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former University of Michigan Professor Indicted on Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – An indictment was unsealed today charging a former University of Michigan professor with two counts of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender, Homeland Security Investigations (HSI).
Charged was Stephen Shipps, 67, of Ann Arbor, Michigan. Shipps was arrested this morning and will be appearing in federal court for his arraignment via Zoom at 1pm today.
From 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
The indictment alleges that in February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a young girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“We are committed to the safety and well-being of the most vulnerable members of our society – our children,” stated United States Attorney Matthew Schneider. “For over 20 years, Stephen Shipps had close interactions with many young girls who were gifted musicians. Shipps met with these young girls both inside and outside of the State of Michigan. Our determination and commitment to seeking justice for victims has no time limit.”
“Thanks to the bravery of Shipps’ alleged victims and painstaking investigative work by HSI, this disgraced professor is being held accountable for coercing vulnerable young women into sex, in some cases in the distant past,” said Vance Callender, HSI Special Agent in Charge of Michigan and Ohio. “This case underscores HSI’s commitment to pursue sexual predators and bring some measure of justice to the victims.”
If convicted of both counts, Shipps faces a statutory maximum penalty of 15 years in federal prison.
An indictment is merely a charge and is not evidence of guilt. The defendant in this case is presumed innocent. The burden is on the government to prove guilt beyond a reasonable doubt.
This case is being investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward is prosecuting this case.
The investigation into this case is ongoing. We are asking for the public’s help to fully investigate this case. Anyone with any additional information about alleged crimes committed by Stephen Shipps is asked to call the Tip Line that has been set up by the Department of Homeland Security. That number is 866-DHS-TIPS.(866-347-2423). Tips can also be emailed to [email protected]
To hear prepared remarks from United States Attorney Matthew Schneider and Special Agent in Charge Vance Callender visit: https://www.youtube.com/watch?v=9XMksx75J9M&feature=youtu.be
Former Scott County Sheriff’s Deputy Sentenced to Prison on Embezzlement and Wire Fraud ChargesRead the Press Release
ABINGDON, Va.- Jeffery Scott Spicer, a former Scott County Sheriff’s Deputy, who embezzled more than $20,000 of unworked overtime payments from federal grant money allocated to the Sheriff’s Office over the course of three years, and solicited sex and nude photographs from women placed on home electronic monitoring by state court, was sentenced today to 24 months in federal prison. Acting United States Attorney Daniel P. Bubar made the announcement.
Spicer, 52, of Gate City, Va., pleaded guilty in November 2019 to one count of embezzlement and one count of wire fraud.
“Citizens have to be able to trust public officials, but when officers violate that trust, it threatens the rule of law,” Acting United States Attorney Bubar said today. “Today’s sentence shows that corruption simply will not be tolerated. I am grateful for the hard work put into this case by the FBI and the Virginia State Police, as we seek to root out corruption at every level.”
According to court records, between 2014 and 2017, while working as a deputy with the Scott County Sheriff’s Office, Spicer submitted approximately 47 fraudulent requests to be paid for 765 hours of overtime and was, in fact, paid a total of $21,346 in overtime payments to which he was not entitled. These payments were made to Spicer by the Scott County Sheriff’s Office out of funds allotted to certain grants including an asset forfeiture grant and Selective Enforcement DMV grant.
In addition, Spicer owned and operated a company known as Spicewater Home Electronic Monitoring, or Spicewater. Through this company, the defendant was tasked with providing home electronic monitoring services to individuals as ordered by the Scott County, Virginia, Circuit Court. As the owner and operator of Spicewater, Spicer was responsible for ensuring that the individuals ordered to be on home electronic monitoring were in fact being electronically monitored and complying with the terms of electronic monitoring ordered by the Scott County Circuit Court.
Mr. Spicer’s company contracted with another business that actually provided the electronic monitoring services, but the individuals being monitored paid Spicer for the monitoring services. From approximately March 20, 2017, through July 2017, the other business contracted by Spicewater stopped providing home electronic monitoring services. Spicer, however, continued to receive $13,797 in payments from the individuals for the monitoring services even though no such monitoring services were actually being performed. Additionally, Spicer solicited nude photographs via text message and sex from some of the females placed on home electronic monitoring, in exchange for not notifying the court of their non-compliance with the conditions of home electronic monitoring imposed by the court.
Further, Spicer devised a scheme to defraud the Department of Criminal Justice Services. As part of his scheme, Spicer logged onto the Department of Criminal Justice Services’ website with individual law enforcement officer’s usernames and passwords, completed online courses, took online tests on the law enforcement officers’ behalves, and then certified that those individual law enforcement officers had completed the courses when, in fact, they had not. Spicer received monetary payments in exchange for completing the online training courses for some of the law enforcement officers.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. Assistant United States Attorney Lena Busscher prosecuted the case for the United States.
Former San Angelo Meat Packing Plant Manger Pleads Guilty to Misleading Federal RegulatorsRead the Press Release
A former manager of a San Angelo meat packing plant plead guilty today to misleading federal regulators, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rean Brooks, 51, plead guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, before U.S. Magistrate Judge John Parker.
In plea papers, Mr. Brooks, former manager at Texas Packing Company, admitted that he concealed knowledge from federal regulators about the toxic chemical levels at the meat processing facility.
"Federal laws require employers to undertake steps that limit exposure to toxic substances to employees and the public,” said U.S. Attorney Erin Nealy Cox. "Criminals that deceive regulators and skirt the law, potentially putting lives at risk, will be held accountable for their actions.”
According to court documents, Texas Packing Company was operating its refrigeration unit, which contained anhydrous ammonia, in violation of OSHA regulations posing danger to the safety of the plant’s employees.
Anhydrous ammonia is a chemical is used to recirculate fluid in refrigeration systems at facilities such as meat processing plants. Exposure to the chemical in high concentrations is toxic and may result in temporary or permanent blindness; severe burns; corrosive damage to the mouth, throat, and stomach; asphyxiation; and death.
By law, OSHA requires that processing plants that operate with levels of anhydrous ammonia exceeding 10,000 pounds must implement and operate under a Process Safety Management (PSM) program to prevent the catastrophic release of dangerous chemicals and minimize damage in the event accidental release or spills occur.
In 2018, Texas Packing was operating its facility with 16,500 pounds of anhydrous ammonia or approximately 6,000 pounds over the level at which a PSM program is required. An individual reported the hazardous chemical issues to OSHA. The following day, an OSHA inspector traveled to the plant and met with Mr. Brooks and others and provided notice of the complaint.
Texas Packing was informed by a plant safety manager that the implementation of a PSM program would cost approximately $20,000. To avoid the potential costs, an individual at Texas Packing falsified a document with the intent to make OSHA believe the plant was in compliance with regulations. Mr. Brooks then gave that document to an OSHA inspector, also with intent to deceive the inspector.
OSHA subsequently assessed a $615,640 fine against Texas Packing for the plant’s non-compliance related to the anhydrous ammonia levels, lack of PSM program, and for other violations. The fine was one of the top ten largest assessed by OSHA in 2018.
Mr. Brooks faces up to three years in federal prison for his crimes and a fine up to $250,000. A sentencing date has not been set.
This investigation was conducted by United States Department of Labor, Office of Inspector General. Assistant U.S. Attorney Ann Howey is prosecuting this case.
Former Owner and Operator of Jannah Healthcare Sentenced to Prison, Ordered to Pay $1.1M Restitution for Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that United States District Judge Joseph P. Stadtmueller has sentenced Latoya N. Joseph, 42, of Milwaukee, Wisconsin, to eight months’ imprisonment and six months’ home confinement for the crime of tax evasion.
Ms. Joseph was the owner and operator of Jannah Home Health Care, LLC (“Jannah”), a home health business providing personal care services primarily to Medicaid recipients in the Milwaukee area. Last year, a federal grand jury returned an indictment charging Ms. Joseph with three counts of tax evasion, in violation of 26 U.S.C. § 7201.
According to the indictment, Ms. Joseph received more than $1.8M from Jannah in 2013, 2014, and 2015, but failed to file federal income tax returns for herself or the business for these years. The indictment alleged that Ms. Joseph willfully attempted to evade and defeat the proper assessment and payment of income taxes totaling approximately $640,000.
Ms. Joseph pleaded guilty to Count Two of the indictment, corresponding with tax year 2014. At sentencing, Judge Stadtmueller described the offense as a serious one and acknowledged the important role of criminal tax prosecutions in protecting the integrity of the voluntary tax compliance system in the United States. Ms. Joseph will be required, as part of her sentence, to serve a term of imprisonment of 8 months, to be followed by three years of supervised release. As part of that supervised release term, Ms. Joseph must serve six months of home confinement. Additionally, as she agreed to do in her plea agreement, she must pay restitution in the amount of $1,124,554.24, representing taxes she evaded for 2013, 2014, and 2015, along with substantial penalties.
“Honest taxpayers deserve to know that Ms. Joseph and others who shirk their tax obligations face time in federal prison,” said U.S. Attorney Krueger. “Her failure to pay income taxes is especially offensive because her business depended on taxpayer-funded programs. I commend the multi-agency effort that brought Ms. Joseph to justice. “
“The sentencing of Latoya Joseph sends an important message today to the American taxpayers. Failing to file tax returns when you operate a business will result in prison time and a bill for taxes, interest, and penalties,” said Acting Special Agent in Charge Todd Martin, Chicago Field Office, IRS Criminal Investigation. “Committing tax fraud deserves to be punished, especially when one is defrauding a government-funded program focused on helping Americans. The IRS and U.S. Attorney’s office will continue to investigate those who are failing to comply with their tax obligations.”
The criminal tax case against Joseph was investigated by the U.S. Internal Revenue Service – Criminal Investigation, the Social Security Administration – Office of Inspector General, and the U.S. Department of Health and Human Services - Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jonathan H. Koenig.
# # #For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Former Bank Manager Sentenced for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karen E. Ramm, age 54, of Wormleysburg, Pennsylvania, was sentenced on October 28, 2020, to one year plus one day imprisonment followed by two years of supervised release by Chief United States District Court Judge John E. Jones III, for her role in a bank fraud scheme. Chief Judge Jones also ordered Ramm to pay $102,500 in restitution ($21,668.31 to Commerce Bank and $80,831.69 paid to an insurance company).
According to U.S. Attorney David J. Freed, Ramm was a Branch Manager and Loan Officer of Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank) between 2003 and 2010. Ramm pled guilty to defrauding Commerce Bank by falsely causing a business loan to be extended based on the representation that the borrower, with whom Ramm was in a personal relationship, needed an extension for a business project, when Ramm knew that was not the case. The total net loss was $102,500.
The case was investigated by the Federal Bureau of Investigation with the assistance of the financial institution’s security and investigations staff. Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Florida Man Pleads Guilty to Federal Mail Fraud Conspiracy Charge in Maryland for Scamming Elderly Victims of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – McArnold Charlemagne, age 33, of Miramar, Florida, pleaded guilty today to a federal mail fraud conspiracy charge, in connection with a scheme in which he defrauded more than 65 elderly victims of more than $1.5 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“This defendant was part of a heartless scheme to prey on elderly victims by falsely claiming that a family member needed money to pay legal or other expenses—sometimes pretending to be the victim’s relative to convince them to send cash to the conspirators,” said U.S. Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to bring to justice those who perpetrate these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“McArnold Charlemagne was a member of a criminal conspiracy that took advantage of the emotions and bank accounts of dozens of senior citizens,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Criminals who prey on, and steal from, seniors should know that their actions carry real consequences, both for their victims and for themselves. The FBI and our law enforcement partners will do everything in our power to find fraudsters and hold them accountable for their crimes.”
According to Charlemagne’s plea agreement, from about January 2018 through at least December 2019, he was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred or that the money would be sent to particular individuals at their addresses, rather than to members of the conspiracy falsely claiming to reside at those addresses. Charlemagne’s co-conspirators telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As detailed in the plea agreement, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators allegedly even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
Charlemagne admitted that, in order to conceal the crime, he and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and his co-conspirators identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
For example, Charlemagne flew from Miami, Florida to Washington, D.C. on May 28, 2018, for the purpose of retrieving packages containing fraud proceeds, renting a place to stay in the Baltimore area.
On May 30, 2018, Victim #1, 75 years old from Temperance, Michigan, received a phone call from someone pretending to be her grandson’s lawyer. Victim #1 sent two packages totaling $38,000 to addresses in Baltimore. On June 1, 2018, Charlemagne picked up the second package sent by Victim #1, then traveled to an address on North Payson Street in Baltimore, to pick up an additional package, sent from Victim #2, 78 years old from Salem, Oregon.
Victim #2 was contacted by phone by an individual purporting to be an attorney who told Victim #2 that Victim #2’s granddaughter was a passenger in a car driven by a man that was involved in a car crash and was jailed. The caller told Victim #2 that bail money was needed immediately to secure the release of Victim #2’s granddaughter. The caller warned Victim #2 not to contact anyone due to a “72 hour gag order.” Victim #2 was instructed to overnight mail $10,000 in cash to “John Miller,” who was described as an officer of the court, to an address on North Payson Street in Baltimore. Victim #2 did as instructed. The next day, the caller contacted Victim #2 again and stated that, because marijuana and a gun had been found in the car, an additional $10,000 was required. Victim #2 complied. Victim #2 was contacted again and told to send $20,000 for the victim’s medical bills, and Victim #2 complied. While authorities were not able to recover the first two packages sent by Victim #2, the third mailing containing $20,000 was intercepted by Baltimore Police and returned to Victim #2. Nonetheless, Charlemagne waited at North Payson Street for approximately 30 minutes on the morning of June 1, 2018, before catching a ride to a different address.
On June 6, 2018, Victim #3, an 83-year-old individual from Framingham, Massachusetts, received a phone call from a man who stated Victim #3’s son had caused a car crash by texting and driving and was being arrested. Victim #3 was told to send $8,000 to an address on Whittier Avenue in Baltimore in order to bail Victim #3’s son out. On June 7, 2018, Victim #3 did as instructed and sent the money via FedEx. Later that evening, Victim #3 realized the scam and called the police. The authorities were able to contact FedEx and located the package, which had already arrived in Maryland. The package was returned to Victim #3.
Charlemagne, who was still in the Baltimore area picking up packages containing fraud proceeds, learned that the package had been returned to the sender. Charlemagne contacted another co-conspirator and requested the co-conspirator travel from Miami to Massachusetts in order to wait in front of Victim #3’s house, pretend to be Victim #3, and take the package. Charlemagne texted the co-conspirator the address, a screenshot from Google Maps of where the co-conspirator should park, and a copy of the FedEx tracking number. Charlemagne told the co-conspirator that the co-conspirator needed to fly out that night to arrive in the morning, or that it would be too late. On June 8, 2018, the co-conspirator was caught outside the residence of Victim #3 in Framingham, Massachusetts, and arrested.
As a result of the execution of the scheme to defraud, Charlemagne and others caused at least 65 different victims to send a total of at least $1.5 million.
Charlemagne faces a maximum sentence of 20 years in federal prison for mail fraud conspiracy. 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 George L. Russell, III has scheduled sentencing for March 26, 2021, at 1:00 p.m.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the case.
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Firefighter Pleads Guilty to Attempted Coercion and Enticement of MinorRead the Press Release
RICHMOND, Va. – A Pittsburgh man pleaded guilty today to attempted coercion and enticement of a minor to engage in illegal sexual activity.
According to court documents, in November 2019, Brian Kosanovich, 58, a firefighter living in Pittsburgh, responded to a profile posted by an FBI undercover employee on Alt.com, which is a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes, kinks, BDSM, etc. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter. After establishing contact on Alt.com, Kosanovich and the undercover officer began communicating via the Kik messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich having sex with the 10-year-old as well as the mother. At several points, Kosanovich engaged in sexually explicit chats with the undercover officer who at the time was posing as the 10-year-old girl herself. Over the period of the investigation, Kosanovich sent the undercover officer nude “selfies” pictures, and a prepaid Visa card so that the mother could buy sex toys to use with the daughter. Ultimately, on February 18, Kosanovich traveled from Pittsburgh to Richmond for the stated purpose of having sex with the mother and daughter, and was arrested by FBI officials upon his arrival.
Kosanovich faces a mandatory minimum term of 10 years in prison, and a maximum possible sentence of life in prison when sentenced on March 3, 2021. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorney Brian R. Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-103.
Final Waco Drug Ring Conspiracy Defendant Sentenced to Federal PrisonRead the Press Release
In Waco today, a federal judge sentenced 33-year-old Jeremiah Hector Marquez to 327 months in federal prison for his leadership role in a Waco-based methamphetamine distribution operation. Marquez’s sentencing was the final sentence handed down in this indictment. All 20 indicted defendants were convicted in this case for their roles in the distribution scheme. Eighteen of the defendants received federal prison terms ranging from two years to life imprisonment. One defendant was sentenced to time served and one defendant received probation.
U.S. Attorney Gregg N. Sofer; Drug Enforcement Administration Special Agent in Charge Steven S. Whipple, Houston Division; FBI Special Agent in Charge Christopher Combs; Waco Police Chief Ryan Holt; Killeen Police Chief Charles Kimble; McLennan County Sheriff Parnell McNamara; and, Texas Department of Public Safety Director Steven McCraw made today’s announcement.
A federal grand jury indictment in August 2018 charged the defendants, including Waco resident and fellow ringleader Daniel Louis Lopez who is currently serving a life sentence, with conspiracy to possess with intent to distribute methamphetamine. From May 2017 to the time of indictment, these defendants were responsible for the distribution of more than twelve kilograms of methamphetamine throughout the Waco and Central Texas areas.
On April 2, 2019, Marquez pleaded guilty to the conspiracy charge. In addition to the prison term, U.S. District Judge Alan Albright ordered that Marquez pay a $5,000 fine and be placed on supervised release for a period of five years after completing his prison term.
“Methamphetamine or “meth” destroys lives. It’s a highly addictive poison and those that sell it are victimizing our communities. If you deal meth in Central Texas, you can expect to spend a long time in prison,” stated U.S. Attorney Sofer.
The DEA, FBI, U.S. Marshals Service, Texas Department of Public Safety, Waco Police Department, Killeen Police Department and the McLennan County Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation. Assistant U.S. Attorneys Mark Frazier and Christopher Blanton prosecuted this case on behalf of the government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Federal Grand Jury Returns Superseding Indictment Charging Fort Myers Business Owner with COVID Relief Fraud and Mortgage FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of a superseding indictment charging Casey David Crowther (35, North Fort Myers) with two counts of bank fraud, two counts of making a false statement to a lending institution, and three counts of illegal monetary transactions. If convicted, Crowther faces a maximum penalty of 30 years in federal prison on each bank fraud and false statement count, and up to 10 years’ imprisonment for each illegal monetary transaction count. The indictment also notifies Crowther that the United States intends to forfeit a 2020 40-foot catamaran, real property in St. James City, Florida, and $2,098,700, which are alleged to be proceeds of the offenses; the real property is also subject to forfeiture because it was involved in the illegal monetary transaction.
A federal grand jury had previously indicted Crowther for COVID relief fraud on September 23, 2020. The superseding indictment contains additional counts charging Crowther with mortgage fraud.
According to the
superseding indictment , as part of his scheme, beginning in June of 2020, Crowther submitted false and fraudulent Uniform Residential Loan Applications (URLA) to a mortgage broker and mortgage lender, causing the lender to disburse approximately $640,381 in loan funds. Specifically, Crowther intentionally misrepresented his liquid assets in the URLAs and created false and fraudulent bank statements which purported to show he had more assets than he actually had.A superseding 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 the United States Secret Service. It will be prosecuted by Assistant United States Attorney Trent Reichling.
Federal Grand Jury B Indictments Announced- OctoberRead the Press Release
United States Attorney Trent Shores announced today the results of the October Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Sharilyn Rose Browning. Assault with a Dangerous Weapon in Indian Country. Browning, 30, of Tulsa, is charged with assaulting a male victim with a knife. The FBI and Tulsa Police Department are the investigative agencies.
Pedro Santiago Cabrera; Rolando Reyna Reyes. Conspiracy and Manufacture and Possession of over 50 grams of Methamphetamine With Intent to Distribute and Maintaining a Drug Involved Premises; Manufacture and Possession of Over 50 Grams of Methamphetamine With Intent to Distribute; Maintaining a Drug Involved Premises. Cabrera, 36, and Reyes, 34, both of Tulsa, are charged with knowingly manufacturing, possessing, and distributing methamphetamine and maintaining a drug involved premises to carry out the conspiracy. The two allegedly manufactured and possessed with intent to distribute 50 grams or more of methamphetamine. The Drug Enforcement Administration and the Tulsa Police Department are the investigative agencies.
Alexander Choate. Failure to Register as a Sex Offender. Choate, 49, of Tulsa, is charged with failing to register as a sex offender and to update his registration. The U.S. Marshals Service is the investigative agency.
Jesus Herrera Diaz. Possession of Methamphetamine With Intent to Distribute. Herrera, 29, of Tulsa, is charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine in the Northern District of Oklahoma. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Craig Lamar Gonzales. Kidnapping in Indian Country; Sexual Abuse in Indian Country; Assault in Indian Country (misdemeanor). Gonzales, is charged with kidnapping and sexually abusing a female victim. He is also charged with assaulting the victim by pulling her from a car by her hair, yanking her head back, and spitting on the victim. The FBI and Tulsa Police Department are the investigative agencies.
Coalton Payne Guinn. Sexual Abuse of a Minor in Indian Country. Guinn, 25, of Kellyville, is charged with knowingly engaging in sexual acts with a child between 12 and 16 years of age. The FBI and Sapulpa Police Department are the investigative agencies.
Rebecca Raye Jackson; Sabrina Rena Lee. Conspiracy to Commit Armed Robbery in Indian Country; Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Jackson and Lee are charged with conspiring to communicate with the victim via Facebook and lure him to a Super 8 hotel room in Tulsa to engage in sex acts. As part of the conspiracy, the two allegedly surprised the victim with a 12-gauge shotgun and took his personal property, including money, keys, wallet, and a cell phone. The two allegedly split the money from the robbery. Jackson is also charged with robbery in Indian Country, and both women are charged with brandishing the shotgun during the robbery. The FBI and Tulsa Police Department are the investigative agencies.
Tyler Jonathan Martin. Robbery in Indian Country. Martin, 28, of Tulsa, is charged with robbing a victim by force and intimidation. The FBI and the Tulsa Police Department are the investigative agencies.
Richi Keith McHenry. Felon in Possession of Firearm and Ammunition. McHenry, 42, of Broken Arrow, is charged with being a felon in possession of a Smith and Wesson, .22 caliber semi-automatic pistol and seven rounds of ammunition. McHenry was previously convicted of multiple felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Casey Brandon Peterson. Aggravated Sexual Abuse of a Child in Indian Country. Peterson, 35, of Sapulpa, is charged with sexually abusing a child under 12 years of age. The FBI and Sapulpa Police Department are the investigative agencies.
Anthony Raul Proctor. Felon in Possession of a Firearm and Ammunition. Proctor, 32, of Bristow, is charged with being a felon in possession of a Smith and Wesson .40 caliber pistol and 14 rounds of ammunition. Proctor is a 5-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and Muskogee Creek Nation Lighthorse Police Department are the investigative agencies.
John Earl Shugart. Failure to Register as a Sex Offender in Indian Country. Shugart, 42, of Tulsa, is charged with failing to register as a sex offender and update his registration. The U.S. Marshals Service is the investigative agency.
Herchell Lee Timmons. Theft Over $1,000 in Indian Country; Burglary in First Degree in Indian Country. Timmons, 21, of Jenks, is charged with stealing an F-150 pick-up truck valued at over $1,000 as well as with breaking the outer door of a home with others in order to commit burglary. The homeowner was present when the crime took place. The FBI and Tulsa Police Department are the investigative agencies.
Ex-Keesler Airman Sentenced to over Ten Years in Federal Prison for Child PornographyRead the Press Release
Gulfport, Miss. – Gianluca Quagliaroli, 21, of North Carolina, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 121 months in prison, followed by 20 years of supervised release, for receipt of child pornography, announced U.S. Attorney Mike Hurst, Acting Special Agent in Charge Gilbert Trill of Homeland Security Investigations (HSI) in New Orleans, and Special Agent Shannon Robinson, Commander of Air Force Office of Special Investigations (AFOSI) Detachment 407 at Keesler Air Force Base. Quagliaroli was ordered to pay $9,000 in restitution to identified victims and $5,100 in special assessment fees. He was also ordered to register as a sex offender.
“I want to commend the work of our law enforcement and military for discovering and bringing this criminal to justice. Those who deal and trade in child pornography perpetuate harm against children and combatting and ending this elicit market of child pornography is a high priority for the Department of Justice,” said U.S. Attorney Hurst.
“Those who serve in trusted public positions are not immune to investigation and prosecution, especially those who participate in the exploitation of children,” said HSI New Orleans acting Special Agent in Charge Gilbert Trill. “HSI is committed to protecting our nation’s children. This sentencing demonstrates the effectiveness our collaborative efforts with civilian and military law enforcement partners.”
Special Agent Robinson stated, “This was a total win coupled with great teamwork. The Office of Special Investigations, Detachment 407, is proud to have uncovered such criminal activity, shedding light on it through persistent and diligent investigative work. We’re thankful to have a great working relationship with the United States Attorney’s Office, who successfully prosecuted this case.”
On March 11, 2019, Quagliaroli received both photographs and videos of child pornography that he solicited through the social media site Instagram. Quagliaroli then stored some of the child pornography on his Google Drive account. Shortly thereafter, the child pornography was identified through the National Center for Missing and Exploited Children (NCMEC). The NCMEC tip was ultimately referred to the AFOSI Detachment at Keesler Air Force Base, where subsequent investigation disclosed that then-Airman Quagliaroli had received the child pornography referenced in the tip.
Quagliaroli was originally indicted for this offense on February 12, 2020. With the cooperation of law enforcement partners at Keesler AFB, Quagliaroli was arrested by civilian federal authorities for receipt of child pornography immediately following his discharge from the Air Force. Quagliaroli pled guilty before Judge Ozerden on June 3, 2020.
Homeland Security Investigations and the Air Force Office of Special Investigations investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner and Special Assistant United States Attorney Alexxa Pritchett.
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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Enfield Man Charged with Defrauding the Department of Veterans Affairs to Receive BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office; and James M. Noble, Special Agent in Charge, Coast Guard Investigative Service, Northeast Region, announced that DERRICK BREWER, 35, of Enfield, was arrested today on a criminal complaint charging him with offenses related to his submission of altered documents to the Department of Veterans Affairs (“VA”).
As alleged in the criminal complaint, in March 2018, Brewer submitted paperwork to the VA offices in Hartford as part of an application for service-connected disability benefits. Specifically, Brewer submitted a form known as a “DD-214,” which indicated that his discharge from his former service in the U.S. Coast Guard was characterized as “Honorable.” The DD-214 had been altered prior to its submission, as official Coast Guard records show that Brewer’s discharge was characterized as “Other Than Honorable Conditions” following Brewer’s convictions under the Uniform Code of Military Justice. There is no record of the discharge characterization ever having been upgraded. As a result of this submission, Brewer collected approximately $69,584.16 in VA benefits up until September 30, 2020.
The complaint charges Brewer with theft of government funds, which carries a maximum term of imprisonment of 10 years, and making false statements, which carries a maximum term of imprisonment of five years.
Brewer appeared today via videoconference before U.S. Magistrate Judge Robert A. Richardson and was released on a $10,000 bond.
U.S. Attorney Durham stressed that a complaint 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 matter is being investigated by the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, and the Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Margaret Maigret Donovan.
Elmira Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Brian Thomas, 60 of Elmira, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possessing child pornography. The charge carries a maximum penalty of 20 years in prison, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on March 29, 2020, the defendant distributed, to an undercover FBI Task Force Officer, child pornography depicting the sexual abuse of several prepubescent children. Using IP information, the FBI was able to locate Thomas and execute a search warrant at his residence. Digital storage devices, including a computer and thumb drive, were seized. A forensic examination determined that Thomas received and possessed child pornography on both devices.
The defendant is a registered sex offender following previous New York State convictions for child sexual abuse and child exploitation crimes. When interviewed by the FBI, Thomas admitted that during the 1980’s and 1990’s, he sexually abused approximately nine children between the ages of 4 and 10.
The plea is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, with assistance from the Elmira Police Department, under the direction of Chief Joseph Kane.
Sentencing is scheduled for January 11, 2021, before Judge Geraci.
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East Bay Residents Charged with Mail Fraud Conspiracy in Connection with Alleged Identity Theft SchemeRead the Press Release
OAKLAND – Dayna Lynn Alexander, also known as Dayna Lyn Huntsman, and Alicia Amanda Roberts, also known as Alicia Roberts Canal, have been charged in a criminal complaint with an alleged conspiracy to commit mail fraud, announced United States Attorney David L. Anderson and United States Postal Inspection Service San Francisco Division Inspector in Charge Rafael Nunez. Alexander made her initial federal court appearance today before U.S. Magistrate Judge Nathanael M. Cousins.
According to the affidavit filed with the criminal complaint, Alexander, 47, of Vallejo and San Pablo, reviewed obituaries in order to identify individuals who had recently suffered “sudden deaths.” Alexander would then find their personal identifying information from online sources and use that information to place holds on their U.S. Postal Service mail and to change their mailing addresses. Alexander would cause checks and debit cards to be mailed from the victims’ accounts, and she would obtain them from the victims’ new mailing address. Alexander also opened bank accounts using the victims’ information. She and her co-conspirators would deposit funds into these accounts and write checks to themselves from the accounts. Alexander would then assume yet another victim’s identity in order to obtain and spend those funds.
Alexander and her co-conspirators, including Roberts, 41, of San Pablo, would also use the victims’ legitimate credit cards and other online payment accounts, including PayPal, to make purchases at Amazon and other vendors. Roberts assumed one victim’s identity in order to rent storage units in which Alexander and Roberts stored stolen access devices and counterfeit identification cards as well as stolen mail and financial documents in the names of the victims.
While incarcerated in county facilities, Alexander continued to identify potential victims and relayed that information to Roberts. Alexander discussed using the deceased victims as potential sureties for bail bonds in order to secure her release from custody. Alexander also drafted a handwritten guide to educate others on how to commit the fraud scheme, which she mailed to a co-conspirator.
Alexander and Roberts are charged with conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. If convicted, they will face a maximum statutory sentence of 20 years. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Alexander is scheduled to appear before Magistrate Judge Virginia K. DeMarchi on November 5, 2020, at 10:30 a.m., for a detention hearing.
Alicia Amanda Roberts, who is also known as Alicia Roberts Canal, has not been arrested nor made an initial appearance. Anyone with information regarding her location is encouraged to contact the U.S. Postal Inspection Service.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorney Samantha Bennett is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Danville Police Department.
Donavan Thomas Culps Sentenced to Life Imprisonment in Federal Prison for Second Degree Murder Which Occurred Within the Boundaries of the Yakama NationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Donavan Thomas Culps, age 39, of Harrah, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation, was sentenced today after having pleaded guilty on February 18, 2020, to second degree murder. Chief United States District Judge Stanley A. Bastian sentenced Culps to a life term of imprisonment.
According to information disclosed during court proceedings, in late March 2016, F.M. was murdered in her residence, which was located within the boundaries of the Yakama Nation. Culps learned that George Cloud and N.C. had allegedly murdered F.M. In late June 2017, N.C. traveled to Culps’ residence in Harrah, Washington. When N.C. arrived, Culps pulled N.C. out of a vehicle and began beating him with his fists. During the assault, N. C. yelled “why?” Culps responded, “You know why!” N.C. lost consciousness. Culps and an accomplice then dragged N.C. behind a trailer and attempted to place zip ties on him. N.C. regained consciousness, whereupon Culps took out a hunting knife and stabbed N.C. in the chest, neck, and stomach. Culps ultimately slit N.C.’s throat.
After the murder, Culps wrapped up the victim’s body, transported it to another location, and dumped the body. Culps then fled from the area. In August 2017, a concerned citizen reported that N.C. was missing.
In September 2017, Culps was involved in an unrelated murder in Cheney, Washington. Culps fled and was eventually apprehended by the Pacific Northwest Violent Offender Task Force. Culps admitted to the murder in Cheney, Washington. He pled guilty to the murder and was sentenced to 416 months in state custody.
Culps also admitted to homicide investigators that he murdered N.C. and told them where they would find N.C.’s body. On September 18, 2017, when homicide investigators searched that area, they found N.C.’s remains.
During the sentencing hearing, Chief Judge Bastian observed that Culps has a “history of violence” and described the crime he committed as an “execution.”
United States Attorney Hyslop said, “Murder, the killing of another person as occurred here, justifies the life sentence imposed by the Court. He won’t be returning to the streets of the Yakama Nation. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, the Pacific Northwest Violent Offender Task Force, and the Federal Bureau of Investigation, who all worked together to solve this heinous crime. Their seamless partnership resulted in the successful investigation and prosecution of Culps. Others who may choose to engage in similar violent criminal activity in the future should know from this case that law enforcement will find you, we will prosecute you, and if proven guilty, you will be going to jail for a very long time.”
FBI Special Agent in Charge Raymond Duda said, “Mr. Culps is a lifelong offender responsible for murders of multiple individuals. Together with our partners, the FBI will continue to investigate violent criminals and pursue justice on behalf of the citizens of the Yakama Nation and Washington state.”
Federal charges were also filed against George Cloud arising from the murder of F.M. On January 17, 2019, a federal jury found George Cloud guilty of First Degree Murder and Discharge of a Firearm During a Crime of Violence. On May 1, 2019, Chief Judge Bastian sentenced George Cloud to a term of life imprisonment.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakama Nation Police Department. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Doctor Admits Role in Illegal Kickback SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, doctor today admitted participating in a conspiracy to violate the federal anti-kickback statute, U.S. Attorney Craig Carpenito announced.
Mark A. Filippone, 72, of Wallington, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiring to violate the anti-kickback statute with three individuals: Joseph Vangelas, a/k/a “Joseph Miller,” 34, of Fort Lee, New Jersey; Marlene Vangelas, 59, of River Vale, New Jersey; and Zachary Ohebshalom, 34, of Fort Lee, New Jersey. Criminal charges against Miller and Marlene Vangelas remain pending. Ohebshalom previously pleaded guilty for his role in the conspiracy, and Estela Blaustein, 55 of Mahwah, New Jersey, also previously pleaded guilty for her role in a related conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Beginning in May 2016, Filippone participated in a kickback conspiracy scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, which was owned and operated by Miller and Marlene Vangelas. Miller and Marlene Vangelas, along with Ohebshalom, directed pharmacy employees to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Miller, Marlene Vangelas, and Ohebshalom also directed pharmacy employees to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Marlene Vangelas orchestrated the purchase of Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Marlene Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 3, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Nicole F. Mastropieri of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Miller and Marlene Vangelas are merely accusations, and they are presumed innocent unless and until proven guilty.
Disbarred Attorney Pleads Guilty to Stealing 9/11 Victim Compensation FundsRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that GUSTAVO L. VILA, a disbarred lawyer in Westchester County, pled guilty today in White Plains federal court to stealing government funds. VILA’s plea results from his theft of approximately $1 million that the Department of Justice’s 9/11 Victim Compensation Fund (“VCF”) had awarded to the defendant’s client, a 9/11 first responder.
VILA was arrested on September 3, 2020, and pled guilty today before U.S. District Judge Vincent L. Briccetti.
Acting U.S. Attorney Audrey Strauss said: “As he admitted today, Gustavo Vila stole money awarded by the 9/11 Victim Compensation Fund to his client, an NYPD officer and 9/11 first responder, and falsely told the client for more than three years that the stolen money had yet to be released by the Fund. Now Gustavo Vila awaits sentencing for his crime.”
According to the Complaint, the Information, and other statements made in open court:
In the wake of the September 11 terrorist attacks, Congress created the VCF to provide compensation with federal government funds to any individual who suffered physical harm or was killed as a result of the terrorist attacks, or as a result of the debris removal efforts that took place in the immediate aftermath of those attacks. The original VCF operated from 2001 to 2004. President Obama and President Trump reactivated the VCF, authorizing it to operate through October 2016, and December 2020, respectively. Claimants seeking compensation from the VCF were authorized to work with an attorney and have the attorney, on the claimant’s behalf, submit a claim to, and receive the claimant’s award from, the VCF. An attorney’s fees were limited to 10% of a VCF award.
From at least in or about 2012 through at least in or about 2019, VILA represented a retired New York City Police Department officer (“Victim-1”) in connection with Victim-1’s claim for compensation from VCF. Victim-1 was diagnosed with, and suffered from, serious, life-threatening medical conditions, including cancer, as a result of rescue and recovery work he performed at Ground Zero. Throughout his representation of Victim-1, VILA held himself out as an attorney to Victim-1 and to VCF, despite the fact that in 2015, VILA was disbarred.
In or about May 2013, VILA submitted a claim to VCF on behalf of Victim-1. VILA also submitted forms to the VCF authorizing the VCF to deposit Victim-1’s compensation award directly into a bank account controlled by VILA’s law firm (the “Bank Account”). On or about September 13, 2016, the VCF authorized an award to Victim-1 of $1,030,622.04 for life-threatening illnesses that the client sustained from rescue and recovery work he performed as a police officer at Ground Zero.
On or about October 12, 2016, the VCF deposited the full amount of Victim-1’s award – over $1 million – into the Bank Account. At that point, VILA was required to distribute all of that money, less 10 percent for his purported attorney’s fees, to Victim-1. VILA, however, did not inform Victim-1 about this deposit, and kept 90 percent of the award – $927,559.84 – for himself. VILA used the money he stole for his own personal benefit, including to pay his own taxes. From in or about October 2016 to in or about February 2020, VILA falsely represented to Victim-1 that the VCF had not yet released the majority of Victim-1’s VCF award, when in fact, the entire award had been released for Victim-1’s benefit in October 2016.
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VILA, 62, of Yorktown Heights, New York, pled guilty to one count of theft of government funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
VILA will be sentenced on February 5, 2021.
Ms. Strauss praised the outstanding investigative work of DOJ-OIG’s Fraud Detection Office.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
Department of Justice announces the use of body-worn cameras on federal task forcesRead the Press Release
ST. LOUIS, MO— The Justice Department announced it will permit state, local, territorial, and tribal task force officers to use body-worn cameras on federal task forces around the nation. The department’s policy will permit federally deputized officers to activate a body-worn camera while serving arrest warrants, or during other planned arrest operations, and during the execution of search warrants. The policy is the result of a pilot program launched by the department last October.
“After spending a substantial amount of time examining this issue, assessing the results of the pilot program, and taking into account the interests and priorities of all the law enforcement agencies involved, I am pleased to announce that the department will permit the use of body-worn cameras on our federal task forces in specific circumstances,” said Attorney General William P. Barr. “The Department of Justice has no higher priority than ensuring the safety and security of the American people and this policy will continue to help us fulfill that mission.”
The Department of Justice, through the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the FBI; and the U.S. Marshals Service (USMS), partners with state, local, territorial, and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics, and arrest dangerous fugitives.
On Oct. 28, 2019, after consulting with a number of state and local law enforcement associations, the Attorney General announced a pilot program to consider the use of body-worn cameras on federal task forces. In January 2020, federal task force officers in several pilot cities began using body-worn cameras on task force operations and concluded the pilot program on Sept. 1, 2020.
The department would like to thank the Houston Police Department, Detroit Police Department, Wichita Police Department, Salt Lake City Police Department and Park City Police Department for their participation in the pilot program, as well as all of the state and local law enforcement leaders that have provided input and guidance.
State and local agencies that would like to participate in DOJ’s task force body-worn camera program may contact the Special-Agent-in-Charge of the federal agency sponsoring the task force, or, in the case of USMS-led task forces, the federal district’s U.S. Marshal. Due to the large number of state and local agencies nationwide that may like to participate, federal agencies may establish a graduated process to onboard partner agencies to the body-worn camera program. This will ensure an orderly and coordinated process to deal with the technical, training, and operational considerations involved in establishing a large-scale body-worn camera program.
Click here to learn more about the body-worn camera policy.
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Department of Justice Announces the Use of Body-Worn Cameras on Federal Task ForcesRead the Press Release
Today, the Justice Department announced that it will permit state, local, territorial, and tribal task force officers to use body-worn cameras on federal task forces around the nation. The department’s policy will permit federally deputized officers to activate a body-worn camera while serving arrest warrants, or during other planned arrest operations, and during the execution of search warrants. The policy is the result of a pilot program launched by the department last October.
“After spending a substantial amount of time examining this issue, assessing the results of the pilot program, and taking into account the interests and priorities of all the law enforcement agencies involved, I am pleased to announce that the department will permit the use of body-worn cameras on our federal task forces in specific circumstances,” said Attorney General William P. Barr. “The Department of Justice has no higher priority than ensuring the safety and security of the American people and this policy will continue to help us fulfill that mission.”
The Department of Justice, through the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the FBI; and the U.S. Marshals Service (USMS), partners with state, local, territorial, and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics, and arrest dangerous fugitives.
On Oct. 28, 2019, after consulting with a number of state and local law enforcement associations, the Attorney General announced a pilot program to consider the use of body-worn cameras on federal task forces. In January 2020, federal task force officers in several pilot cities began using body-worn cameras on task force operations and concluded the pilot program on Sept. 1, 2020.
The department would like to thank the Houston Police Department, Detroit Police Department, Wichita Police Department, Salt Lake City Police Department and Park City Police Department for their participation in the pilot program, as well as all of the state and local law enforcement leaders that have provided input and guidance.
State and local agencies that would like to participate in DOJ’s task force body-worn camera program may contact the Special-Agent-in-Charge of the federal agency sponsoring the task force, or, in the case of USMS-led task forces, the federal district’s U.S. Marshal. Due to the large number of state and local agencies nationwide that may like to participate, federal agencies may establish a graduated process to onboard partner agencies to the body-worn camera program. This will ensure an orderly and coordinated process to deal with the technical, training, and operational considerations involved in establishing a large-scale body-worn camera program.
Read the policy: Use of Body-Worn Cameras by Federally Deputized Task Force Member
Craig Man Sentenced for Firearms ViolationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Justin J. Seley, 36, of Craig, was sentenced by Chief U.S. District Judge Timothy M. Burgess, to serve one year and one day in prison, followed by three years of supervised release for possession of a registered firearm by an unregistered person.
According to court documents, on October 23, 2018, Seley possessed 7 rifles, 2 handguns and a receiver. All firearms were seized. One of the seized firearms was a short barreled DSA ZM4 .300 caliber rifle, which was not registered with the National Firearms Registration and Transfer Record. As someone previously convicted of a felony, Seley was prohibited from possessing firearms. In May of 2020, Seley plead guilty to possession of a registered firearm by an unregistered person.
At the sentencing hearing, Judge Burgess cited the seriousness of the offense, and noted the need for general deterrence. All firearms seized in the case were forfeited.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
This case is 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.
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 visit https://www.justice.gov/ag/about-project-guardian
Convicted felon and Corpitos gang member returns to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 33-year-old Corpus Christi resident has been ordered to federal prison for unlawfully possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick.
Michael Andrew Scott pleaded guilty Nov. 21, 2019. Scott is an identified member of the Tango Blast gang known locally as the “Corpitos.”
Today, U.S. District Judge David S. Morales handed Scott an 87-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence detailing the Scott’s criminal conduct over the past 15 years.
In the very late hours of Sept. 29, 2019, law enforcement stopped Scott for speeding. At that time, they found a fully-loaded 15-round magazine within his reach as well as 12 separate small bags of marijuana, digital scale and U.S. currency that had cocaine residue. Further, authorities also discovered a Glock 19 firearm and second 9mm magazine concealed in the vehicle’s steering column.
Scott has prior felony convictions in Texas for aggravated assault with a deadly weapon, robbery and cocaine possession. As such, he is prohibited from possessing a firearm or ammunition per federal law.
Scott was permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation along with the Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Construction Business Operator Pleads Guilty in Manhattan Federal Court to Tax FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Michael Montanez, the Special Agent-in-Charge of the Newark Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that BILAL SALAJ, an operator of a construction business, pled guilty to conspiracy to defraud the IRS, tax evasion, and failure to pay over payroll taxes. SALAJ pled guilty before U.S. Magistrate Judge Ona T. Wang.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Bilal Salaj defrauded the IRS by evading both payroll taxes for his business and personal income taxes. To carry out the scheme, Salaj lied to his own accountant and caused false tax returns to be filed with the IRS. Now he awaits sentencing for his crimes.”
IRS-CI Special Agent-in-Charge Michael Montanez said: “When Mr. Salaj made the decision to evade paying taxes for himself and his business, he also made the decision to cheat every honest hardworking taxpayer. Today’s guilty plea should send a strong deterrent message that IRS-Criminal Investigation will vigorously pursue those individuals who attempt to cheat our nation’s tax system.”
According to the allegations contained in the Information to which SALAJ pled guilty and statements made in court:
At all relevant times, BILAL SALAJ, a citizen and resident of the United States, operated a construction business in Manhattan. Initially, SALAJ was the record owner of the business, but in approximately July 2014, SALAJ began operating the business under a new entity that, on paper, was wholly owned by a third party (“Individual-1”), who worked for SALAJ in the construction business. Despite this purported change in ownership, SALAJ continued to exercise principal control and decision-making authority over the business and its financial affairs. In particular, SALAJ was a responsible person under federal law for collecting, truthfully accounting for, and paying over payroll taxes to the IRS.
Between at least in or about 2014 and in or about June 2019, SALAJ devised and perpetrated a scheme to evade a substantial portion of both the payroll taxes for the construction business and SALAJ’s personal income taxes for the period 2014 through 2018. During this period, SALAJ cashed, and caused Individual-1 to cash, approximately $3.2 million in business checks payable to the construction company at check cashing facilities in Manhattan, instead of depositing them into the company’s operating bank account. SALAJ and Individual-1 used a portion of the proceeds from the cashed checks to pay cash wages to employees of the construction business, and spent most of the rest on personal expenses. SALAJ did not withhold or pay over to the IRS any payroll taxes on the cash wages paid to the employees, and did not report to the IRS or pay any personal income taxes on the cash income he realized through the cashed checks. As part of the tax evasion scheme, SALAJ fraudulently withheld from his accountant any records relating to the cashed business checks, and thereby caused false tax returns to be filed with the IRS. The tax evasion scheme, including relevant conduct, resulted in a tax loss to the IRS of approximately $952,778.
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SALAJ, 55, of Morganville, New Jersey, pled guilty to one count of conspiracy to defraud the IRS, one count of tax evasion, and one count of failure to pay over payroll taxes, each of which carries a maximum sentence of five years in prison. As part of the plea agreement, SALAJ has agreed to pay restitution to the IRS in the amount of $952,778. Sentencing is scheduled for March 3, 2021, at 2:00 p.m., before U.S. District Judge P. Kevin Castel.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Connecticut Nurse Charged with Tampering with Liquid MorphineRead the Press Release
BOSTON – A Connecticut nurse was charged with tampering with liquid morphine prescribed to a patient.
Danielle Works, 42, of Stafford Springs, Conn., was charged on Oct. 27, 2020 with tampering with a consumer product.
According to the charging document, on Jan. 27, 2018, Works tampered with a bottle of morphine prescribed to a patient at Governor’s Center, a nursing facility in Westfield, by removing the morphine from the bottle and diluting the remaining morphine with another substance.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Acting Commissioner Margaret Cooke of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Chris Looney of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colorado Springs Agrees to Improve Stormwater Management in Settlement with the United StatesRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with the City of Colorado Springs, Colorado, to resolve violations of the Clean Water Act with respect to the City’s storm sewer system.
The settlement also includes the State of Colorado as a co-plaintiff, and the Lower Arkansas Valley Water Conservancy District and the Board of County Commissioners of the County of Pueblo as plaintiff-intervenors. The improvements made by the city under this settlement will result in significant reductions in the discharge of pollutants, such as sediment, oil and grease, heavy metals, pesticides, fertilizers, and bacteria, into Fountain Creek and its tributaries in Colorado Springs. Communities downstream of Colorado Springs will also see significant water quality improvements from the settlement.
The Department of Justice, the EPA and the State of Colorado alleged claims against the City of Colorado Springs in an amended complaint filed in the U.S. District Court for the District of Colorado on Jan. 26, 2017. The Lower Arkansas Valley Water Conservancy District, and the Board of County Commissioners of the County of Pueblo were joined as plaintiffs on Feb. 16, 2017. The amended complaint generally alleged that the City of Colorado Springs violated its National Pollutant Discharge Elimination System (NPDES) permit for its municipal stormwater management program by failing to require the installation and maintenance of stormwater management structures at residential and commercial developments. The complaint also alleged that the city failed to enforce requirements to prevent polluted stormwater from running off active construction sites.
The city has since taken significant steps to improve its stormwater management program. The proposed settlement requires the city to take additional actions, including developing standard operating procedures and increased staff training for critical elements of its stormwater management program. In addition, under the settlement the city will capture the volume of stormwater that was required to be captured under the city’s NPDES permit using an innovative approach that identifies capacity needs and the appropriate locations for adding capacity on a watershed basis. The proposed settlement also requires the city to mitigate the damage to Fountain Creek and its tributaries through stream restoration projects. These projects could include habitat restoration, channel restoration, constructed wetlands and similar projects intended to reduce stormwater pollutants entering Fountain Creek or its tributaries. The city will spend a total of $11 million on this mitigation. Finally, the City of Colorado Springs will pay a $1 million federal civil penalty. In lieu of paying a civil penalty to the state, the city will perform state-approved supplemental environmental projects valued at $1 million that will improve water quality in the Arkansas River, into which Fountain Creek flows south of the city.
“It is important to maintain the integrity of the Clean Water Act’s storm water program requirements,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Through this settlement the City of Colorado Springs will ensure that the citizens of the City of Colorado Springs have a clean and safe storm water program and that downstream communities will be protected.”
“The EPA appreciates the hard work and cooperation from all the parties, including the City of Colorado Springs, to reach this comprehensive agreement that will avoid further litigation and hasten the actions needed to improve water quality in Fountain Creek and its tributaries,” said EPA Assistant Administrator Susan Bodine for the Office of Enforcement and Compliance Assurance. “This innovative settlement, developed through creative problem solving by engineers and scientists with the EPA, the state and the city, will provide the city with the flexibility it needs to attack the problems that have plagued its storm sewer system for two decades in a way that minimizes the burden on its rate payers.”
The City of Colorado Springs’ storm sewer system serves a population of more than 460,000 people and comprises approximately 250 miles of storm water ditches and channels, with more than 690 major outfalls, throughout the City of Colorado Springs. The City of Colorado Springs’ storm sewer system discharges to Monument Creek, Fountain Creek, Camp Creek, Cheyenne Creek, Shooks Run, and other waters within the Arkansas River watershed. The EPA and the Colorado Department of Public Health and the Environment, working in partnership, discovered the violations through inspections and follow up investigations of the City of Colorado Springs’ storm sewer program.
Stormwater pollution from municipal storm sewers can be a major contributor to poor water quality in receiving waters. Sediment from stormwater can degrade the quality of water for drinking, wildlife, and the aquatic and riparian ecosystems. Other pollutants, such as oil and grease, heavy metals, pesticides, fertilizers, and bacteria, also can be entrained in stormwater and discharged by municipal storm sewers into receiving waters, where they degrade water quality.
The proposed settlement, lodged today in the U.S. District Court for the District of Colorado, is subject to a 30-day public comment period and final court approval.
For more information on the settlement and for information on how to submit a comment, visit https://www.justice.gov/enrd/consent-decrees.
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.
Colombian National Pleads Guilty to $109 Million Medicare Fraud SchemeRead the Press Release
BOSTON – A Colombian national residing in Lighthouse Beach, Fla., pleaded guilty today in federal court in Boston in connection with submitting more than $109 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces.
Juan Camilo Perez Buitrago, 31, pleaded guilty to one count of health care fraud and one count of payment of kickbacks in connection with a federal health care program. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for March 4, 2021.
Perez manufactured and submitted false and fraudulent Medicare claims by instructing his employees to establish shell companies in more than a dozen different states, including Massachusetts. Perez directed employees to list his mother, wife and yacht captain as corporate directors and to use fictitious names when registering the shell companies as DME providers. Perez allegedly purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients, and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee, and/or shoulder braces “at little to no cost.” He then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. Perez submitted blatantly fraudulent claims, including claims for deceased patients and repeat claims for the same patient and the same DME. Perez failed to provide any DME for more than $7.5 million in claims. When Perez did provide DME to patients, he typically billed insurance policies more than 12 times the average price of the DME that he provided to the patient.
In total, Perez submitted $109 million in Medicare claims and collected more than $12 million.
Four of Perez’s associates have also agreed to plead guilty to their role in the Medicare scheme. On Oct. 2, 2020 Nathan LaParl, 34, of Boca Raton, Fla., and Talia Alexandre, 30, of Palm Springs, Fla., were charged with receiving kickbacks in connection with a federal health care program. LaParl and Stefanie Hirsch, 51, of Los Angeles, Calif., were also charged with violating the HIPAA statute and have agreed to plead guilty. On Sept. 29, 2020, Jessica Jones, 30, of Louisville Colo., and Elizabeth Putulin, 30, of Coconut Creek, Fla., were charged with conspiracy to commit health care fraud and have agreed to plead guilty.
The charges of health care fraud and payment of kickbacks in connection with a federal health care program each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Elysa Q. Wan of Lelling’s Health Care Fraud Unit and Carol Head of Lelling’s Asset Recovery Unit are prosecuting the case.
Citizen of Honduras with Multiple Drunk Driving Convictions Sentenced for Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORGE ALBERTO RODRIGUEZ RODRIGUEZ, 33, a citizen of Honduras last residing in Stamford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 18 months of imprisonment for illegally reentering the U.S.
According to court documents and statements made in court, on February 20, 2010, Rodriguez Rodriguez was arrested in Stamford on a charge of operating under the influence. He was subsequently arrested in Westport for failure to appear. Rodriguez Rodriguez was convicted in Stamford Superior Court of operating under the influence and sentenced to four months of incarceration.
On August 30, 2010, Rodriguez Rodriguez was released from state custody and was served with a Notice to Appear by Immigration and Customs Enforcement (ICE) based on a charge that he entered the U.S without documentation. While released on bond and awaiting his immigration hearing, Rodriguez Rodriguez was arrested in Stamford on a charge of operating under the influence. He was convicted of the offense and sentenced to one year of incarceration, suspended after 150 days. On June 13, 2011, he was removed from the U.S. following service of his state sentence.
On December 18, 2018, Rodriguez Rodriguez was arrested by Stamford Police on a charge of operating under the influence and evading injury/property damage. A biometric fingerprint match subsequently confirmed Rodriguez Rodriguez’s unlawful reentry into the U.S. He has been detained in state custody since July 28, 2019, when he was arrested by Stamford Police on a charge of failure to appear. He was convicted of these offenses and, on September 26, 2019, was sentenced in state court to three years of incarceration, suspended after one year, and three years of probation.
On February 25, 2020, he pleaded guilty in federal court to unlawful reentry of a removed alien.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chinese Energy Company, U.S. Oil & Gas Affiliate and Chinese National Indicted for Theft of Trade SecretsRead the Press Release
A federal grand jury has returned an indictment alleging corporate entities conspired to steal technology from a Houston-area oil & gas manufacturer, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division.
Jason Energy Technologies Co. (JET) in Yantai, People’s Republic of China; Jason Oil and Gas Equipment LLC (JOG) USA and Chinese national Lei Gao aka Jason Gao, 45, are charged with conspiracy, theft of trade secrets and attempted theft of trade secrets.
Gao previously resided in Houston but is now believed to be in China. A warrant remains outstanding for his arrest.
Also charged in relation to the case is Robert Erford Jr., 41, Dayton, who worked for a Houston-area company. He previously pleaded guilty to conspiracy to commit trade secrets.
On or about Nov. 7, 2019, Gao allegedly met with Erford at the JOG offices located in Houston. According to the indictment, Erford signed a consultancy agreement that Gao provided at that time, indicating Erford would work in China as a consultant to assist JOG in coiled tubing technology. Erford was to be $1,000 each day of a 15-day visit, according to the charges.
This agreement allegedly also included a confidentiality provision.
At that meeting, Erford was also provided a letter from the JET general manager inviting him to visit in order to have a technical exchange and discussion, according to the charges. That letter allegedly indicated a goal of helping to promote the company’s manufacturing efficiency, reduce machine failure and increase production capacity.
Without authorization, on or about Nov. 22, 2019, Erford allegedly transferred a victim company document that contained a trade secret from the United States to the China for JET’s benefit. The indictment further alleges that from approximately Nov. 25-29, 2019, Erford held meetings with Gao and JET officials at JET’s offices in China and its coiled tubing facilities. At those meetings, they allegedly discussed coiled tubing technology, including victim company proprietary technology, practices and procedures.
The charges also allege authorities obtained evidence that Erford and Gao used encrypted messaging app WeChat in December 2019 to obtain, collect and copy victim company manufacturing information.
The corporate entities could be fined up to $5 million or three times the value of the stolen trade secret, whichever is greater. Gao faces the same potential fine as well as a possible prison sentence of up to 10 years.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre of the Southern District of Texas are prosecuting the case along with Trial Attorney William Mackie from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charlotte Man Is Sentenced to Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Brian Elliott Kursonis, 59, of Charlotte, to 360 months in prison and a lifetime of supervised release for production of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Kursonis to register as a sex offender after he is released from prison.
Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), joins U.S. Attorney Murray in making today’s announcement.
According to documents filed in the case and statements made in court, beginning as early as 2008, Kursonis repeatedly sexually abused two minor victims, and produced images and videos depicting the abuse. Kursonis’ conduct came to the attention of law enforcement when a witness discovered the child pornography on Kursonis’ computer. Over the course of the investigation, law enforcement also located numerous images of child pornography on Kursonis’ seized computer and other electronic devices. On July 20, 2020, Kursonis pleaded guilty to production of child pornography.
In making today’s announcement U.S. Attorney Murray thanked CMPD for their investigation which led to Kursonis’ lengthy sentence.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charleston Man Sentenced to Five Years in Federal Prison for Drug CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Levi Kennith Carter, 31, of Charleston, was sentenced to five years in federal prison pursuant to his previous guilty pleas to two counts of distribution of heroin, fentanyl, and methamphetamine, and one count of distribution of methamphetamine. Following his release from prison, Carter will serve three years of supervised release.
“31 years old and this is Carter’s third federal drug conviction,” said United States Attorney Mike Stuart. “Maybe “three’s a charm” but if not, we’ll make it a fourth.”
Carter previously admitted that on February 28, 2020, and March 3, 2020, he met with a confidential informant working with the Charleston Police Department at an apartment complex on Renaissance Circle in Charleston. On each occasion, he sold the informant a mixture of heroin, fentanyl, and methamphetamine. Carter admitted that he again met with a confidential informant working with the Charleston Police Department on March 5, 2020, also at the same apartment complex, and sold the informant a quantity of methamphetamine. Each transaction was monitored by law enforcement officers.
Carter has two prior federal convictions in the Southern District of West Virginia for felony offenses tied to drug dealing activity, making this his third conviction. On October 12, 2010, he was convicted of aiding and abetting the possession with intent to deliver crack cocaine, and on October 2, 2015, he was convicted of distribution of heroin.
The Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00073.
Follow us on Twitter: SDWVNews and USAttyStuart
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Catonsville Man Sentenced to 24 Years in Federal Prison for Sexual Exploitation of Children and CyberstalkingRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Bilal Mohammad Siddiqui, age 23, of Catonsville, Maryland, to 24 years in federal prison, followed by lifetime supervised release, for the federal charges of sexual exploitation of children and cyberstalking.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“The facts of this case are disturbing and demonstrate how a sexual predator uses the Internet to victimize innocent children,” said U.S. Attorney Robert K. Hur. “Our community is safer now that Bilal Siddiqui will serve 24 years in federal prison, where there is no parole—ever. I hope all parents will discuss this case with their children so that they will think twice before communicating with a stranger through the Internet. Law enforcement will continue to work to identify and prosecute those who would harm our children.”
“Bilal Siddiqui exploited and humiliated numerous children, some even as young as eight years old,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “With nothing more than a computer and a few keystrokes, modern predators, like Siddiqui, have a limitless number of victims at their fingertips. We remain vigilant in continuing efforts to identify and hold accountable these offenders, but we also need the community to discuss the reality of online predators with children and report any suspected offenses to law enforcement.”
According to his guilty plea, between April 2017 and August 2018, Siddiqui used the Internet-based communication services LiveMe, Snapchat, Kik, and FaceTime to coerce at least six minor females, ages 8 to 14, into creating and sending him sexually explicit images and videos of themselves. Siddiqui also attempted to sexually extort one of those victims, a sixth-grader. When she refused to produce additional sexually explicit videos of herself, he sent images and videos that she had previously shared with him to her sixth-grade classmates and friends.
Prior to September 2017, Siddiqui created a fake account on LiveMe, a mobile application that allowed users to stream live video over the Internet and simultaneously chat with viewers, using an anonymous username and a photograph of a young boy as his profile picture, so that other users would not realize he was an adult male. One of the users misled by Siddiqui was Jane Doe 1, an 8-year-old girl.
On September 28, 2017, Jane Doe 1 was using LiveMe to broadcast a video of herself exercising in her pajamas. Siddiqui was among several LiveMe users watching the broadcast. When a number of those viewers asked Jane Doe 1 to show them her underwear, she refused, and eventually terminated the broadcast. Not long after, however, Jane Doe 1 began streaming a new LiveMe broadcast, and a number of viewers from her earlier broadcast—including Siddiqui—followed her to the new broadcast. During the new broadcast, Jane Doe 1 told her viewers that she was 13 years old. Again, they enticed her to undress and expose herself. While she initially refused their requests, Jane Doe 1 eventually did give in to the requests of Siddiqui and other viewers, undressing and exposing her genitals to the camera.
Toward the end of Jane Doe 1’s broadcast, Siddiqui persuaded her to end her live stream and to contact him privately. They communicated via FaceTime, and during these video chats, Jane Doe 1 again told Siddiqui that she was 13 years old. He nonetheless instructed her to remove her shirt, pants, and underwear, then instructed Jane Doe 1 to use a marker to write his first name on her skin next to her genitalia. He also instructed her to send him sexually explicit pictures of herself via text message. She complied with his instruction and sent Siddiqui at least one picture of herself.
Viewers of Jane Doe 1’s LiveMe broadcast reported the sexually explicit requests and conduct described above to the National Center for Missing and Exploited Children. Law enforcement identified Siddiqui as the person who persuaded Jane Doe 1 to chat privately and obtained a search warrant for his residence. On September 5, 2018, officers executed the search warrant and located the cellphone that Siddiqui used to communicate with Jane Doe 1.
Siddiqui was present during the search, waived his Miranda rights, and voluntarily agreed to be interviewed by law enforcement. He admitted that the phone was his, that it was passcode-protected, that he had used LiveMe on the phone, and that he created the fake LiveMe profile using a photograph of a former classmate to disguise his identity. He admitted that he used his fake LiveMe account to communicate with Jane Doe 1, and later admitted—after initially denying—that he communicated privately with Jane Doe 1 through FaceTime, including instructing her to send him sexually explicit images of herself via text message, and that he believed Jane Doe 1 was 13 years old.
While Siddiqui was being interviewed, law enforcement conducted an on-scene forensic review of the phone and discovered evidence that he had also sexually exploited Jane Doe 2, a 9-year-old female. Siddiqui told law enforcement that he began communicating with Jane Doe 2 in August 2018 using Snapchat, and continued to do so as recently as September 3, 2018—two days before the execution of the search warrant. Siddiqui also admitted that he created videos of Jane Doe 2, and estimated that there were 10 videos of Jane Doe 2 engaging in sexually explicit conduct saved on his phone. Siddiqui advised that he captured the videos by using his phone’s screen recording function, and that he believed Jane Doe 2 was 11 or 12 years old.
During the interview Siddiqui advised law enforcement that he had engaged in similar conduct with between 10 and 50 girls using mobile applications. Siddiqui stated that he caused minor females to engage in sexually explicit conduct on video and that he derived sexual gratification from it.
Following Siddiqui’s interview, law enforcement obtained records associated with online accounts controlled and used by Siddiqui. Those records showed that Siddiqui had coerced Jane Doe 4, an 11-year-old sixth-grader, into producing and sending him a nude image and nude videos of herself. Siddiqui began communicating with Jane Doe 4 on September 15, 2017, and told her that he was 15 years old and lived in her town. Within days, he had convinced Jane Doe 4 that they were in a relationship, and she revealed the name of the middle school that she was attending.
On October 4, 2017, Siddiqui began demanding that Jane Doe 4 send him sexually explicit images, and threatened to send one of the videos of Jane Doe 4 to her classmates, friends, and family if she did not produce and send further videos of herself engaging in sexually explicit conduct. Siddiqui specifically told Jane Doe 4, “Don’t play games with me .... I’ll expose u [right now] and ruin your life.” Jane Doe 4 begged him not to follow through on his threats and sent him additional explicit videos. After she sent the videos, Siddiqui told Jane Doe 4 that it was “too late” because he had already sent them to her friends.
On October 7, 2017, Jane Doe 4 tried to end her relationship with Siddiqui through a conversation on Snapchat. Siddiqui reacted by demanding that she immediately produce videos of herself engaging in sexually explicit conduct. After she refused, Siddiqui sent one sexually explicit image and two sexually explicit videos of Jane Doe 4 to two unidentified Snapchat users. On October 12, 2017, a classmate of Jane Doe 4 alerted her middle school guidance counselor that images of Jane Doe 4 were being circulated. School administrators conducted a brief investigation to ensure the images had been deleted but did not contact law enforcement.
Electronic evidence further revealed that, between April 2017 and September 2018, Siddiqui used Snapchat and Kik to entice three additional minors, an 11-year-old, a 12-year-old, and a 14-year-old, to produce and send him sexually explicit images and videos. In each instance, he lied about his real age to persuade these minors to send him such materials.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Paul E. Budlow, who prosecuted the case.
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Carroll County Man Pleads Guilty to Federal Charges in Maryland for Sexually Exploiting a Young Girl to Produce Child Pornography and for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – Shon Brian Beck, age 56, of Eldersburg, Maryland, pleaded guilty today to federal charges of production and receipt of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his guilty plea, in September 2001, Beck and his family traveled to Bethany Beach, Delaware, where they shared a condominium with two other families, including the victim’s family. Jane Doe, the victim, was six years old at the time. Beck admitted that he sneaked into the victim’s room and used a digital camera to produce eleven sexually explicit images of the victim.
As detailed in the plea agreement, in 2018, another victim reported that Beck had sexually abused her. The investigation led to the execution of a search warrant at Beck’s residence on March 22, 2019. Law enforcement seized Beck’s computer equipment and digital cameras. Beck’s digital devices were forensically examined. Investigators found the eleven sexually explicit images of Jane Doe, as well as more than 450 images and videos documenting the sexual abuse of minor victims, including prepubescent minors, many of which Beck had downloaded from the Internet.
Beck and the government have agreed that, if the Court accepts the plea agreement, Beck will be sentenced to 15 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 28, 2021, at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and Maryland State Police for their work in the investigation and thanked the Carroll County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
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Burlington Woman Sentenced for Mailing Anthrax Threat to Sen. Susan CollinsRead the Press Release
BANGOR, Maine: A Burlington, Maine woman was sentenced in federal court in Bangor today for mailing a threatening communication to Sen. Susan Collins, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Suzanne Muscara, 38, to 30 months in federal prison, followed by three years of supervised release. On November 4, 2019, following a one-day trial, a jury convicted Muscara of mailing a threatening communication.
According to evidence presented at trial, Muscara mailed a letter containing a white powder to Collins’ Bangor address in October 2018. The letter also contained a handwritten note indicating that the powder was anthrax. The U.S. Postal Inspection Service intercepted the letter at a mail sorting facility in Hampden, Maine. The FBI tested the white powder and found that it did not contain toxic substances. The FBI also matched a fingerprint found on the envelope with one of Muscara’s prints. When interviewed, Muscara made clear that she sent the note because she was upset with Collins because of one of her votes.
“American politics is premised on free speech and vigorous debate,” U.S. Attorney, District of Maine, Halsey Frank said. “True threats are not protected speech. They are a crime. Anthrax is a deadly substance that has been used to kill and terrorize. There is nothing funny about it, and the jury in this case rejected the defendant’s claim that her letter was intended as a joke. My thanks to the federal, state and local investigators who worked together as a team to identify this defendant and bring her to justice.”
The FBI, the U.S. Postal Inspection Service, the Maine Office of State Fire Marshal, the Maine State Police and the Old Town Police Department investigated the case.
Bronx Man Charged in Connection with Arson of an NYPD Vehicle in ManhattanRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John B. DeVito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of SHAWN JENKINS in connection with his attempted arson of police vehicles in the Bronx, New York. JENKINS was arrested on October 28, 2020, and will be presented in the Manhattan federal court later today before U.S. Magistrate Ona T. Wang.
Acting U.S. Attorney Audrey Strauss stated: “Shawn Jenkins allegedly threw a glass bottle containing a lit wick with gas accelerant at an NYPD vehicle in the Bronx. Jenkins’s alleged actions – causing an adjacent vehicle to be damaged – are as reckless as they are misguided. There is never an acceptable time or situation to attempt to damage the property of law enforcement professionals who serve to protect the public, and this case is emblematic of our resolve to bring anyone who does so to justice.”
ATF Special Agent-in-Charge John B. DeVito said: “As alleged, Jenkins brazenly and deliberately fire-bombed a marked NYPD vehicle without regard for human life or property. The New York Arson and Explosives Task Force will be relentless in bringing to justice those who use fire as a weapon in order to ensure a safer community for all New Yorkers.”
NYPD Commissioner Dermot Shea said: “Peaceful assembly and speech are protected and valued by the NYPD. But the kind of violence alleged in this case endangers lives and threatens everyone’s constitutional right to peacefully protest and we commend our federal partners for bringing justice for acts society can never tolerate.”
NYFD Commissioner Daniel A. Nigro said: “Arson is a dangerous, potentially deadly act that needlessly puts lives in danger and destroys property. Any act of arson will be vigorously investigated by our Fire Marshals and their partners in law enforcement. Thanks to the excellent teamwork by our Bureau of Fire Investigation, the NYPD and the ATF, a suspect has been arrested for this senseless crime.”
According to the allegations in the Complaint[1]:
On June 1, 2020, at approximately 11:30 p.m., JENKINS approached two NYPD vehicles located in front of the NYPD 42nd Precinct in the Bronx, New York. JENKINS threw a glass bottle containing a wick that was lit with a gas accelerant at the NYPD vehicles. The incendiary device hit the ground short of its intended target and spread a fire, damaging an adjoining vehicle, which is privately owned by an NYPD officer.
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JENKINS, 33, of the Bronx, New York, is charged with one count of attempted arson, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the Strategic Explosive and Arson Response Task Force of the ATF, the NYPD, and the FDNY.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi Steiner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Boulder City Man Indicted for Assaulting Significant Other at Lake MeadRead the Press Release
LAS VEGAS, Nev. – A Boulder City resident made his initial appearance in federal court yesterday for allegedly assaulting his significant other at the Lake Mead National Recreation Area, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Michael David Thompson, 66, of Boulder City, is charged with one count of felony assault resulting in substantial bodily injury to a spouse or intimate partner. U.S. Magistrate Judge Nancy Koppe ordered Thompson to be detained in federal custody pending a jury trial scheduled to begin on December 1, 2020.
“There is no place whatsoever in our communities for violence against a spouse or intimate partner,” said U.S. Attorney Trutanich. “Following the launch of Project Veronica, our office has been making a renewed push to hold domestic violence offenders accountable — particularly during the pandemic, when many victims are isolated with abusers.”
According to court documents, in September 2020, at the Boulder Beach Campground within the Lake Mead National Recreation Area, Thompson allegedly struck the victim and placed his hands around her neck, causing her to yell and state “he is going to kill me.” The victim’s nose and orbital bone around an eye were fractured. National Park Service Rangers responded and observed facial bruising, two black eyes, lacerations to both lips, and additional bruising on the victim’s body.
Thompson faces a statutory maximum sentence of five years in prison and a $250,000 fine. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the National Park Service.
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Boston Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced yesterday for the October 2019 robberies of the TD Bank in Worcester and the East Boston Savings Bank in Revere.
Samuel Jose Baptista, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison and two years of supervised release. Judge Hillman also ordered Baptista to forfeit the money found on him after the second robbery and ordered restitution for the remaining amount stolen from the banks.
In February 2020, Baptista pleaded guilty to two counts of bank robbery.
On Oct. 20, 2019, Baptista entered a branch of TD Bank in Worcester and informed the tellers, “this is a robbery” and demanded $10,000 in cash. Baptista told the tellers that he had a bomb in his backpack and that they had five minutes to get the cash before Baptista would detonate the bomb.
On Oct. 26, 2019, Baptista entered a branch of the East Boston Savings Bank in Revere and passed to the teller a withdrawal slip, on which he wrote“10/21/19” and “$10,000.” Baptista then told the teller “this is a robbery,” that he wanted $20,000, and that he had a bomb in his backpack. After receiving money, Baptista fled the bank in a lime green taxicab.
Witnesses from the bank reported to police the license plate and color of the taxicab. Shortly thereafter, local law enforcement found the taxicab parked in the Northgate Shopping Center, and the taxi driver informed police that Baptista had entered a store in the shopping center. Police found and arrested Baptista with the money from the East Boston Savings Bank on him.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester Police Chief Steven M. Sargent; and Revere Police Chief David Callahan made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office prosecuted the case.
Boston Man Charged with Distributing Crack CocaineRead the Press Release
BOSTON – A Boston man who is allegedly a member of the St. James/Marcella gang was arrested today and charged in federal court in Boston with distributing crack cocaine.
Anthony Jackson, a/k/a “Hollywood,” 29, was charged with distribution and possession with intent to distribute cocaine base. Jackson made an initial appearance in federal court via videoconference this afternoon, and was detained pending a detention hearing on Nov. 5, 2020.
According to court documents, between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine to a cooperating witness on five occasions in Cambridge and Boston.
As alleged in the charging documents, Jackson has state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Lelling’s Major Crimes Unit is prosecuting the case.
This case is 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 details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berks County Woman Sentenced for Bank EmbezzlementRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Morgan Herrera, age 29, of Robesonia, Pennsylvania, was sentenced on October 29, 2020 to six months’ imprisonment followed by two years of supervised release (which includes six months of home detention) by U.S. District Court Judge Sylvia H. Rambo, for embezzling over $80,000 from S&T Bank. Judge Rambo also ordered Herrera to pay $80,011 in restitution.
According to United States Attorney David J. Freed, between February 2016 and June 2017, while Herrera was employed as a personal banker at an S&T Bank location in Harrisburg, she stole over $80,000 while opening multiple accounts for certificates of deposit.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Beltsville Condo Owner Sentenced to More Than Two Years in Federal Prison for Managing a Drug-Involved PremisesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Wayne Deo Ramsaran, age 46, of Jessup, Maryland, to time served of 29 months in prison, followed by three years of supervised release, for managing a drug-involved premises. Ramsaran must also forfeit all rights and interests to the condominium.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to Ramsaran’s plea agreement, from October 2016 through at least February 2018, Ramsaran owned a condominium in the 11000 block of Cherry Hill Road in Beltsville, Maryland. Ramsaran did not reside at the residence but rented rooms and charged daily and/or monthly rent to other individuals, including Kenneth Wayne Hart, whom Ramsaran knew manufactured and sold narcotics at the location. The narcotics trafficking funded and fueled Hart’s sex trafficking operations within the drug-involved premises and at other locations in Maryland and elsewhere.
Ramsaran admitted that during this time, he visited the drug-involved premises several times a week, and sometimes daily, to obtain rent from tenants either in cash or quantities of narcotics—usually crack cocaine. Ramsaran also visited the drug-involved premises to use narcotics—at first heroin and then later crack cocaine—with other residents. When he went inside the drug-involved premises, Ramsaran admitted that he knew that the tenants used, sold, and manufactured narcotics, including powder and crack cocaine, heroin, marijuana, and prescription pills, in his condominium. Narcotics customers visited the premises every day, at all hours of the day.
Search warrants executed by law enforcement on April 21, 2017 and February 28, 2018, revealed and confirmed the ongoing manufacturing, storing, distribution, and use of controlled substances at the drug-involved premises, with law enforcement recovering quantities of heroin, crack cocaine, Xanax, amphetamine, and drug paraphernalia, including two water bongs, digital scales, cellular telephones, crack pipes and stems, and hypodermic needles.
It was foreseeable to Ramsaran that the tenants of the drug-involved premises distributed at least 525 grams of cocaine and 700 grams of heroin to their customers.
On October 7, 2020, Kenneth Wayne Hart, a/k/a Redds, Wayne Hawkins, Hawk, Big Daddy, Billy Reds, and Bill Red Hart, age 59, of Beltsville, Maryland, was sentenced to 25 years in federal prison on federal charges of conspiracy to distribute and possess with intent to distribute narcotics; a sex trafficking conspiracy; two counts of sex trafficking by force, fraud, and coercion; and witness tampering. Hart was convicted of those charges on March 12, 2020, after a seven-day jury trial.
United States Attorney Robert K. Hur praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Daniel C. Gardner, who prosecuted the case.
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