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28 October 2020
Local man who wanted to marry child victim sent to prison for 50 yearsRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi man who initiated a sexual relationship with a child after Hurricane Harvey displaced her family has been sentenced for producing child pornography, announced U.S. Attorney Ryan K. Patrick.
Stephen Scott Meals pleaded guilty Feb. 20.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Meals to serve a 600-month sentence. At the hearing, the court heard how Meals groomed his victim over many years, gaining her trust and the trust of her family. He then initiated a sexual relationship with her while her family was displaced during Hurricane Harvey in 2017.
In November 2018, law enforcement learned of the sexual relationship he had with the 15-year-old female. He admitted he had hoped to marry her - 22 years his junior at the time. When authorities identified her, she was wearing a promise ring Meals had given her.
Today, she stood before the court and bravely read her impact statement. She explained she would not live as a victim, but as a survivor.
During the investigation, authorities ultimately seized Meals’ electronic devices. Forensic evaluation revealed several pornographic images of the child victim in a secure folder on his cellular phone. Some of the images included the minor female in various stages of nudity that Meals has taken in order to memorialize the sexual assaults he had committed against her.
The investigation had also led to the discovery of an additional child victim Meals had been sexually abusing. At the hearing today, the court heard testimony from a medical expert regarding the evidence of that abuse as well as the victim’s guardian about the impact Meals’ actions have had on her family.
Meals was further ordered to serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Local man admits to attempting to smuggle ammunitionRead the Press Release
LAREDO, Texas – A 40-year old Laredo man has entered a guilty plea to attempting to smuggle ammunition out of the United States, announced U.S. Attorney Ryan K. Patrick.
Obed Rafael Cuevas-Serratos admitted that on Aug. 24, he purchased 13,000 rounds of 7.62x39 millimeter ammunition in San Antonio. The following day, his car attempted to cross into Mexico.
As part of his plea, Cuevas-Serratos admitted he hired a juvenile to cross the ammunition into Mexico for him.
U.S. District Judge Marina Garcia Marmolejo accepted the plea today and set sentencing for Feb. 22, 2021. At that time, Cuevas-Serratos faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
Local Man Pleads Guilty to Multiple Armed CarjackingsRead the Press Release
Memphis, TN – Angelo Bunting, 22, has pled guilty to multiple carjackings and brandishing a firearm during those crimes of violence. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to information presented in court, on June 28, 2018, victim R.D. was driving southbound on Shelby Drive when flagged down by two males with children asking for a ride. The victim pulled over, and one of the males pointed a handgun and told him to get out of the vehicle, a 2014 Toyota Corolla. When the victim did not immediately comply, the men assaulted him with a firearm. The males fled in his vehicle, leaving him with injuries to his knee, lip, and face. On July 1, 2018, the vehicle was located on Sanford Road. Angelo Bunting’s fingerprints were discovered on the vehicle. The victim observed Bunting in a photo lineup and stated he resembled the man with a firearm at the driver’s window.
On July 6, 2018, victim E.S. was at the Shell station onMillbranch Road when he observed two males exit a red vehicle and approach him as he returned to his car after paying inside. The first suspect pointed a firearm at the victim and demanded his keys, while the second suspect put a firearm to the victim’s back and demanded money. The victim gave the suspects his keys, wallet, and cell phone. Both fled in the victim’s vehicle, a 2011 Chevrolet Impala; an unidentified individual drove the red vehicle away separately. The victim’s vehicle was later located on Elvis Presley Boulevard. The victim identified Bunting in a photo lineup and stated that he looked similar to one of the suspects.
On July 13, 2018, victim J.M. was washing his car, a 2013 Volkswagen Passat, at a carwash on Holmes Road when approached by two suspects, both of whom pointed firearms at him and demanded his vehicle. The victim complied, and the suspects left the scene. The vehicle was tracked by GPS in Southaven, Mississippi. Bunting’s fingerprints were found in the interior of the vehicle. Victim J.M. positively identified Angelo Bunting as one of the suspects who carjacked him. Co-defendant Carlos Jones previously entered a guilty plea in federal court to this carjacking and firearms offense on September 23, 2020, and is scheduled for sentencing on January 7, 2021. /usao-wdtn/pr/man-pleads-guilty-armed-carjacking-local-car-wash
On July 31, 2018, Bunting was arrested by officers with the Memphis Police Department’s Victim Crime Unit and the Multi Agency Gang Unit in connection with these crimes, as well as other robbery charges, which are still pending in state court. Bunting was originally indicted for these violent crimes on October 23, 2018. https://www.justice.gov/usao-wdtn/pr/five-men-indicted-carjacking-and-armed-robbery-memphis On October 26, 2020, Bunting pleaded guilty to the offenses as charged.
Sentencing is scheduled for January 28, 2021 before U.S. District Court Judge Mark Norris, where Bunting faces up to 15 years for each of the 3 carjacking offenses, as well as a mandatory minimum consecutive sentence of 7 years on each of the 3 brandishing a firearm during a crime of violence offenses. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Armed carjacking is a cowardly act involving short sighted gain with long term consequences for both victims and offenders. In the short period of just over two weeks, this young offender not only injured and terrorized multiple victims, but he also senselessly wasted his own life by committing successive violent gun crimes. When violent criminals act impulsively, we will respond deliberately with the full weight and force of federal sanctions to suppress, punish, and incapacitate them, and Bunting will now pay the price with decades in federal prison."
The Memphis Police Department – Violent Crimes Unit (VCU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Special Assistant U.S. Attorney Samuel D. Winnig and Assistant U.S. Attorney Elizabeth Rogers are prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office to prosecute violent crimes and firearms offenses in federal court.
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Leader of Worcester Latin Kings Chapter Sentenced on Drug Distribution ChargesRead the Press Release
BOSTON – A leader of the Worcester Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on drug distribution charges.
Alvin Mojica, a/k/a “King Humble,” 32, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately seven months) and three years of supervised release. The government recommended a sentence of 18 months incarceration. In July 2020, Mojica pleaded guilty to one count of distribution of cocaine.
Mojica admitted that in May 2019 he distributed just under 14 grams of cocaine to a cooperating witness in an audio/video recorded transaction. At the time, he was the leader of the Worcester based Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury in Boston returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Mojica is the second defendant to be sentenced in this case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Lame Deer man sentenced to prison for shooting woman in the headRead the Press Release
BILLINGS — A Lame Deer man who admitted shooting a woman in the head while drinking with friends at his residence on the Northern Cheyenne Indian Reservation was sentenced today to 37 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Jolson Hubert Bearcomesout, 39, pleaded guilty on March 17 to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the prosecution said that on June 1, 2019, Bearcomesout, the victim, identified as Jane Doe, and others were at Bearcomesout’s house and drinking. By evening, the group was in Bearcomesout’s bedroom, where they drank and danced. Bearcomesout took a pistol that was on the bed, pointed it at the victim’s head and pulled the trigger.
Bearcomesout took the pistol and another firearm and fled. He was arrested in Forsyth. In an interview with law enforcement, Bearcomesout said he didn’t know there was a bullet in the chamber and that he was “just fooling around.”
The victim was treated for multiple injuries.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Bureau of Indian Affairs and FBI.
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Judge sentences St. Louis County doctor for fraudulently obtaining opioid narcotic prescription drugsRead the Press Release
ST. LOUIS, MO – United States District Court Judge Rodney W. Sippel sentenced today Angela K. Williams, M.D to three years’ probation, $745 in restitution to Medicare and Medicaid and 100 hours community service today. The 34-year-old Brentwood, Missouri resident pleaded guilty, in January, to fraudulently obtaining oxycodone.
According to the plea agreement, Dr. Williams wanted to obtain prescription drugs containing controlled substances for her own personal use outside the bounds of professional medical practice and not for legitimate medical purposes. Accordingly, Dr. Williams used her own prescription pad to write and sign numerous prescriptions for controlled substances using other persons’ names, including prescriptions for the narcotic opioid pain relief drugs hydrocodone and oxycodone. Dr. Williams then went to pharmacies and posing as a patient presented the prescriptions for the drugs. Dr. Williams also fraudulently used another doctor’s prescription pad, name, and Drug Enforcement Administration number to write herself additional controlled substance prescriptions.
The Drug Enforcement Administration, Florissant Police Department, Town and Country Police Department, St. John Police Department, Bureau of Narcotic and Dangerous Drugs of the Missouri Department of Health & Senior Services, Medicaid Fraud Control Unit of the Missouri Attorney General’s Office and the St. Louis County Prosecuting Attorney’s Office investigated the case.
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Indonesian Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that RUDY GUNAWAN, age 40, a native of Indonesia, was charged on October 23, 2020 in a one-count indictment with possession of fraudulent immigration documents prescribed by statute or regulation for entry into or as evidence of authorized stay or employment in the United States, in violation of Title 18, United States Code, Section 1546(a).
GUNAWAN faces a maximum term of imprisonment of not more than ten (10) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
“This case is a great example of the team work done by our Border Patrol Agents and CBP Officers,” said Michael J. Harrison, Acting Chief Patrol Agent, U.S. Border Patrol, New Orleans Sector. “Fraudulent documents are commonly used by criminals and illegal aliens to rob the American people of their identities and finances. Every arrest we make is another citizen protected.”
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Imposter Nurse Sentenced to Prison for Fraud and Tax EvasionRead the Press Release
A woman formerly employed by an Ann Arbor, Michigan, health care consultancy was sentenced to 65 months in prison for defrauding employers of over $2.2 million and evading more than $697,000 in taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew J. Schneider for the Eastern District of Michigan.
According to documents and information provided to the court, Sonja Emery, using several aliases including “Sonja Lee Robinson,” “Sonjalee Emery-Robinson,” and “Sonjalee Emery,” resided in Georgia, New Jersey, New York, and California. From 2011 through 2018, Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. She falsely claimed to be a Registered Nurse licensed in New York, Georgia, Connecticut, and California, and provided employers with licensure numbers that belonged to other people. In fact, she never was a Registered Nurse. Emery also falsely told employers she had a Bachelor of Science in Nursing, a Master’s degree in Health Administration, a Master’s degree in Business Administration, and a Doctor of Philosophy degree from Emory and New York Universities, but Emery never attended those schools or received such degrees.
Using these false representations, from 2011 through 2018, Emery secured high-level health-care positions. She worked as a senior vice president for an Ann Arbor, Michigan, healthcare consulting firm earning an annual salary of approximately $285,000; as a consultant for a community health system in Wisconsin earning approximately $267,000; and as a health care consultant for a Massachusetts company that paid her approximately $226,000. From 2015 until her arrest in May of 2018, Emery worked as a senior executive for a county government health services agency in California that paid her a total of approximately $960,000.
During these years, Emery either did not file or late-filed tax returns, despite owing more than $400,000 in taxes. She sought to avoid being detected by providing employers with different names and false social security numbers, by falsely instructing employers that she was “exempt” from taxes, and by supplying an employer with an identification number that did not belong to her.
On Feb. 18, 2020, Emery pleaded guilty to mail fraud and tax evasion.
In addition to the term of imprisonment, U.S. District Linda V. Parker ordered Emery to serve three years of supervised release and to pay approximately $2.2 million in restitution to the employer victims and $697,000 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Schneider, Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge William A. Kalb, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Sarah Kull thanked special agents of TIGTA and IRS-CI, who investigated the case, and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Homeland Security Officer Honored with U.S. Attorney’s Award for Leadership During Louisville Civil DisturbanceRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is pleased to announce the latest recipient of the U.S. Attorney’s Award for Excellence in Law Enforcement is District Commander Aaron Godbey of the Federal Protective Service (FPS).
“I had a big ask for Commander Godbey and his team at a time of great uncertainty here in Louisville; however they responded in a way that should make all of us and his agency proud,” said U.S. Attorney Russell Coleman. “Commander Godbey led the effort to ensure the safety of Louisville’s federal buildings and protected the public servants that worked inside, all the while respecting the First Amendment-protected activities of peaceful protestors outside.”
The Award commendation presented by U.S. Attorney Coleman to FPS Commander Godbey and his team is for their service on behalf of the citizens of the Western District of Kentucky in protecting downtown Louisville federal buildings, the U.S. District Courthouse, federal public servants, and protestors during the city’s recent period of social unrest. Additionally, Godbey and his team responded to a fiery motor vehicle accident on Louisville’s Watterson Expressway, extricating the driver from the vehicle and attempted CPR to revive the victim. An agency within the United States Department of Homeland Security, the Federal Protective Service mission includes the physical security of 9,500 facilities nationwide and the employees who occupy the structures. FPS Director L. Eric Patterson attended Wednesday’s award presentation in Louisville.
The United States Attorney’s Office for the Western District of Kentucky is honoring the extraordinary efforts of its federal, state, and local law enforcement partners in Western Kentucky. Additional awards will be presented throughout the District in the coming months.
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Henderson Man Who Injured Deputies While Fleeing Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 189 months in prison for possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. Included in this sentence is 24 months in prison for violating the terms of his federal supervised release.
According to court documents, on September 13, 2019, Jasmele Robinson, 37, fled from deputies of the Vance County Sheriff’s Office when they attempted to serve a search warrant at his residence. Deputies obtained a search warrant after they utilized a confidential informant to purchase heroin from Robinson at his Henderson residence. When deputies arrived to serve the warrant, Robinson fled the residence in a car. Deputies attempted to block his car with their patrol vehicles and Robinson rammed their cars and drove away before striking a tree. Robinson continued to struggle with deputies after he wrecked his vehicle and threw a bag underneath the wrecked car. When deputies recovered the bag, they found a quantity of heroin. Upon Robinson’s arrest, he was found with a loaded firearm, which had been stolen from Granville County. Four deputies’ sustained injuries in the incident, two of them suffering serious injuries, which required hospitalization and surgery. At the time of the incident, Robinson was on federal supervised release following a prior conviction in federal court for felon in possession of a firearm.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the State Bureau of Investigation (SBI), the Henderson Police Department, and the Vance County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-500-BO.
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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.
Hartford Man Sentenced to 27 Months in Federal Prison for Illegally Possessing Loaded FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DURE DANCY, 25, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 27 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded gun in Hartford.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, on April 16, 2019, Hartford Police arrested Dancy after they found him in possession of a loaded Sig Sauer .45 caliber pistol that contained seven live .45 caliber rounds of ammunition. The gun had been reported stolen in North Carolina.
In 2017, Dancy was convicted in state court of carrying a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Dancy has been detained since his arrest. On June 17, 2020, he pleaded guilty to possession of a firearm by a convicted felon.
This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harlem man admits involuntary manslaughter charge in ATV crashRead the Press Release
GREAT FALLS – A Harlem man today admitted a charge accusing him of drinking and driving a four-wheeler when it rolled and crashed on the Fort Belknap Indian Reservation, killing his passenger, U.S. Attorney Kurt Alme said.
Taylor Gardipee Walker, 22, pleaded guilty to involuntary manslaughter. Walker faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Feb. 25, 2021. Walker was released.
The prosecution said in court documents that on Dec. 31, 2019 and into the early morning hours on Jan. 1, 2020, Walker was drinking to the point of intoxication. At about 3 a.m., Walker and the victim, identified as Jane Doe, went for a ride on a four-wheeler on Rodeo Drive, with Walker driving. Walker lost control of the ATV, causing it to roll over and sending him and the victim onto the pavement. Walker was seen fleeing the scene on foot.
Law enforcement officers and emergency responders arrived and found the victim unresponsive and barely breathing. The victim ultimately was transported to a Great Falls hospital, where she died from her injuries later that day.
Officers found Walker’s wallet at the scene and began knocking on doors of local residences associated with Walker. Officers located Walker hiding in a bedroom closet of a residence. Walker, who had blood on his clothing and abrasions on his hands, was arrested for failing to report an accident. After initially saying he was not the driver, Walker admitted had been driving the ATV and had lost control and crashed. The investigation determined that Walker had a blood alcohol concentration of .0145 percent approximately three and a half hours after the crash.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI, Fort Belknap Law Enforcement Services, Blaine County Sheriff’s Office and Montana Highway Patrol.
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Guild Mortgage Company to Pay $24.9 Million to Resolve Allegations it Knowingly Caused False Claims for Federal Mortgage insuranceRead the Press Release
Guild Mortgage Company has agreed to pay the United States $24.9 million to resolve allegations that it violated the False Claims Act by knowingly breaching material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), the Department of Justice announced today. Guild Mortgage Company is headquartered in San Diego, California, with branches across the United States.
“Ensuring the integrity of federal lending programs is important to keeping those programs financially sound,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Together with our partners at HUD, we have worked hard to hold accountable FHA lenders that knowingly and materially violate program requirements that help Americans achieve the dream of home ownership.”
“The United States is committed to providing Americans opportunities to own their own homes,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “This settlement reflects the diligent work of officials from the Department of Justice and HUD to ensure that the programs that provide those opportunities are operated with integrity and in accordance with requirements established by law.”
“As this settlement demonstrates, we are committed to holding mortgage lenders accountable when they choose to abuse the integrity of vital government programs that are designed to assist homeownership,” said U.S. Attorney Robert Brewer for the Southern District of California. “We also commend the whistleblower for coming forward, exposing these wrongs, and working with the government investigative team.”
“The Federal Housing Administration insurance program is a critical tool that helps hardworking Americans achieve their dream of homeownership. Any abuse of that program is unacceptable and the bad actors will be held accountable,” said Rae Oliver Davis, U.S. HUD Inspector General. “This case highlights the effectiveness and the importance of whistleblower programs.”
Participants in the FHA mortgage insurance program are authorized to originate and underwrite mortgages without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA-insured loan defaults, the holder of the loan can then recover from the United States for certain losses. Lenders must follow FHA rules to ensure that only mortgages that meet critical credit and underwriting criteria are insured by the government.
The settlement announced today resolves allegations that Guild Mortgage Company knowingly approved materially ineligible loans that later defaulted and resulted in claims to FHA for mortgage insurance, failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, and failed to self-report materially deficient loans that it identified.
The agreement resolves allegations brought by the former head of quality control at Guild Mortgage Company, Kevin Dougherty, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such a lawsuit, as it did in part here. Dougherty will receive $4,980,000 as his share of the government’s recovery.
The investigation, litigation, and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorneys’ Offices for the District of Columbia and the Southern District of California, HUD, and HUD-OIG.
The qui tam case is captioned United States ex rel. Dougherty v. Guild Mortgage Company, Civ. A. No. 16-2909 (S.D. Cal.).
The claims asserted against the defendant are allegations only, and there has been no determination of liability.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Man Charged with Armed Robberies in Rock & Dane Counties
Devonti Wilson, 36, Janesville, Wisconsin, is charged with robbing seven businesses in Janesville, Fitchburg, and Madison, Wisconsin and attempting to rob a business in Madison, in September 2020. The indictment also charges Wilson with brandishing a firearm during each robbery, and with being a felon in possession of a firearm and ammunition. The indictment alleges that he robbed the following businesses:
- Lions Quick Mart on Milton Avenue in Janesville on September 8;
- Kelley Williamson Mobil on Fish Hatchery Road in Fitchburg on September 8;
- 7-Eleven on South Park Street in Madison on September 8;
- Attempted to rob the BP gas station on East Washington Avenue in Madison on September 8;
- Kwik Trip on East Memorial Drive in Janesville on September 10;
- Lions Quick Mart on East Memorial Drive in Janesville on September 10;
- Exxon Tigermart on Milton Avenue in Janesville on September 10; and
- Walgreens on Milton Avenue in Janesville on September 10.
If convicted, Wilson faces a maximum penalty of 20 years in federal prison on each robbery charge, and a mandatory penalty of seven years on each charge of brandishing a firearm during a crime of violence. Any penalty imposed on the brandishing a firearm charges would be served consecutive to any other penalty imposed. The felon in possession of a firearm and ammunition charge carries a maximum penalty of 10 years in federal prison.
The charges against Wilson are the result of an investigation by the Janesville, Fitchburg and Madison Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor L. Kraus is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Lucas J. Anderson, 25, Madison, Wisconsin, is charged with distributing crack cocaine and with being a felon in possession of a firearm. The indictment alleges that he distributed crack cocaine on May 1, 2020, and that he possessed a loaded .40 caliber pistol on August 17, 2020.
If convicted, Anderson faces a maximum penalty of 20 years in federal prison on the drug charge and 10 years on the felon in possession of a firearm charge. The charges against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Madison Man Charged with Illegally Possessing Firearm
Jaime Williams, 33, Madison, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that he possessed a loaded 9mm pistol on September 26, 2020.
If convicted, Williams faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
The indictments charging Wilson, Anderson, and Williams have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Rusk County Man Charged with Possessing Methamphetamine for Distribution
Eric G. Cooke, 50, Ladysmith, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on July 2, 2020.
If convicted, Cooke faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the West Central Drug Task Force; the Chippewa, Clark, and Rusk County Sheriffs’ Offices; the Ladysmith Police Department; and the Drug Enforcement Administration. Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.
Gainesville Entrepreneur Sentenced to Six Months in Federal Prison for Making False Statements and Conspiracy to Commit Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA – Anthony Hernandez, 43, of Gainesville, Florida, was sentenced yesterday to six months in federal prison after having pled guilty to making false statements relating to health care matters and conspiracy to commit money laundering. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The financial losses to healthcare insurance companies resulting from these schemes are staggering,” said U.S. Attorney Keefe. “What’s more, mutual trust between patients and healthcare providers is a critical component of quality care. The actions of Hernandez, and criminals like him, erode that trust. We will continue working in lockstep with our law enforcement partners to see that the perpetrators of these crimes are held accountable.”
Between June 2013 and October 2015, Hernandez defrauded multiple healthcare insurers by submitting false reimbursement claims for allergen immunotherapy treatments, or allergy shots, which were never provided. Hernandez, who holds no medical or chiropractic license, operated Gainesville Medical Centers, LLC, (GMC) in Gainesville, Florida. He recruited individuals, including students from various University of Florida (UF) organizations, to become patients of GMC in order to receive allergy testing. In some cases, Hernandez offered financial compensation to charities, UF sports teams, and UF fraternities and sororities in exchange for its members to receive free allergy testing at GMC. In conjunction with the allergy testing that was actually provided, Hernandez directed his staff to submit false insurance claims for allergy shots which were never administered to GMC’s patients. Through these false claims, Hernandez personally received $810,292.47 from Cigna, Blue Cross Blue Shield, Aetna, and United Health Care healthcare insurance companies. Hernandez also conspired to launder the proceeds received from these false claims by transferring the money from the business bank accounts to personal bank accounts.
“The FBI views health care fraud as a major crime problem,” said FBI Special Agent in Charge Rachel L. Rojas. “Abuse within the health care system reduces the availability of critical resources, and contributes to the rising cost of healthcare for all. The FBI and our law enforcement partners will continue to allocate expert resources to investigate these crimes and prosecute all those who defraud the American public for their own personal gain."
“We take great pride in our role to protect our nation’s economy by rooting out fraud,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Mr. Hernandez’s actions did not simply affect the insurance companies he ripped off, but also the University of Florida students and other victims he took advantage of. Moreover, his actions tipped the playing field against all consumers. Working alongside FBI, we are keenly dedicated to maintaining a level field for all Americans.”
As part of his sentence, Hernandez was ordered to pay $810,292.47 in restitution to the victims in this case and a $75,000 fine. In addition, after serving his term of imprisonment, Hernandez will begin a two-year term of federal supervised release.
This case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigations. Assistant United States Attorney Justin Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. HernandezFranklin, PA Felon Charged with Possessing Numerous FirearmsRead the Press Release
ERIE, Pa. - A resident of Franklin, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Phillip John Dechant, 37, 739 Buffalo Street, Franklin, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about April 22, 2020, Dechant possessed numerous firearms while being a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Trillium Health Employee Charged with Cyberhacking Multiple Co-WorkersRead 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 Ameer Elashmawy, 28, of Rochester, NY, was charged by criminal complaint with unauthorized access of a protected computer and identity theft. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, the defendant was an Information Systems Security Support Coordinator at Trillium Health in Rochester, and was responsible for the company's information system security design and oversight. Elashmawy also assisted employees with their various IT needs as they arose. The defendant had administrative rights and could log onto other employee work accounts, however, he was not allowed to access personal accounts of employees or former employees.
On January 6, 2020, after an employee noticed unusual activity on the Trillium Health network and traced the activity to a device located at Elashmawy’s work area, Trillium Health contacted law enforcement and an investigation began into the defendant’s cyber intrusion into co-worker's accounts. The investigation included a review of three USB thumb drives, an HP laptop computer, two work Dell PCs a hard drive, and two Apple I-phones, and the suspect device. A preliminarily review of the items identified that at least 14 identified victims, all employees from Trillium Health, had their personal accounts (social media, I-cloud, etc.) compromised by Elashmawy. The data reviewed included personal explicit photos and videos of the victims as well as numerous photos of the victim’s driver’s licenses, credit cards, social security cards, and other personal data. During the course of the investigation and continued analysis of computer devices, it was learned that additional employees or former employees of Trillium Health had been victimized by the defendant.
As a result of Elashmawy’s alleged actions, Trillium Health has spent more than $100,000 to safeguard and protect its impacted employees.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former Soldier Pleads Guilty in Child Sexual Exploitation CaseRead the Press Release
COLUMBUS, Ga. – A former U.S. Army Specialist has pleaded guilty in a child exploitation case, after sneaking a Florida teen on base and taking more than 100 photos and films of her in the nude, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Samuel Ray Robinson, 23, of Tulsa, Oklahoma, pleaded guilty on Tuesday, October 27, to one count of transportation of a minor with intent to engage in criminal sexual activity before U.S. District Judge Clay D. Land. Robinson faces a mandatory minimum sentence of ten years in prison and up to a maximum sentence of life imprisonment, a maximum fine of $250,000, and a maximum term of supervised release of life. Defendant will also be required to register as a sex offender. There is no parole in the federal system. His sentencing hearing is set for December 17, 2020.
According to the stipulation of fact entered in court, the U.S. Army Criminal Investigation Command’s Fort Benning CID Office was contacted on June 14, by the Walton County, Florida Sheriff's Office (WCSO) regarding a 13 year old female runaway (Victim 1), who left her Santa Rosa Beach, Florida residence on or about May 27. On June 2, Victim 1 contacted her mother via cellphone and provided her with a “pin” of her location at a Columbus motel. Local Columbus authorities were dispatched to the hotel, and Victim 1 was transported back to Florida.
A forensic examination of the phone revealed Victim 1’s phone “pinged” on Fort Benning between May 27 and June 2, and she had been communicating with Robinson. During an interview with agents, Robinson admitted he met Victim 1 online and picked her up at a gas station in Destin, Florida. Robinson also admitted he knew the victim was a minor when he picked her up, thinking her to be 15 years old. Robinson snuck Victim 1 onto Fort Benning, where she stayed for six nights, engaging in sexual intercourse. Victim 1 was also filmed and photographed in the nude by Robinson more than 100 times.
“Robinson targeted a vulnerable minor online, took her hours away from home, and kept her hidden, abusing her repeatedly. He will pay a steep penalty for his egregious crime—federal prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank Fort Benning CID, the Columbus authorities and the Walton County Sheriff’s Office for investigating this case and bringing the victim safely home.”
“Robinson’s behavior is not tolerated in the U.S. Army and hopefully this will be of some solace to his victim and prevent him from targeting other such vulnerable people,” said Special Agent-in-Charge Micah Rush. “I want to thank all of the investigative and legal efforts made by the Special Agents of the Fort Benning CID Office, our law enforcement partners and the U.S. Attorney’s office.”
The case was investigated by the U.S. Army Criminal Investigation Command’s Fort Benning CID Office (CID) and Walton County, Florida Sheriff’s Office (WCSO) with assistance from the Columbus Police Department (CPD). Assistant U.S. Attorney Shanelle Booker is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former President of Nuclear Transportation Company Sentenced to Prison for Foreign Bribery and Other OffensesRead the Press Release
The former president of Transport Logistics International Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was sentenced today to 48 months in prison and three years of supervised release for his role in a scheme to bribe a Russian official in exchange for obtaining contracts for the company.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland, Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office, and Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
On Nov. 22, 2019, after a three-week trial, Mark T. Lambert, 57, was convicted of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud. Lambert was sentenced by U.S. District Judge Theodore D. Chuang of the District of Maryland. In addition to his prison sentence, Judge Chuang ordered Lambert to pay a $20,000 fine. Lambert must report to the U.S. Marshals Service by Feb. 15, 2021, to begin serving his prison sentence.
According to the evidence presented at trial, Lambert participated in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation (ROSATOM) and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide. Mikerin was later president of TENEX’s wholly-owned U.S. subsidiary, TENAM Corporation. Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers,” and “cake” to describe the bribes, and they communicated with Mikerin about the scheme at his alias e-mail account where Mikerin used the name “Marvin Jodel.”
The trial evidence demonstrated that, for approximately seven years, in order to secure contracts with TENEX, Lambert conspired with others at TLI to make over $1.5 million in corrupt and fraudulent bribe payments to Mikerin through offshore shell companies Mikerin directed them to pay. To conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. Lambert and others then used the fake invoices to justify and conceal the bribes they caused to be transmitted by wire to shell company bank accounts in Latvia, Cyprus, and Switzerland.
Two other defendants have pleaded guilty in this matter. On June 17, 2015, Daren Condrey, Lambert’s former co-president, pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. He is awaiting sentencing. On Aug. 31, 2015, Russian national Vadim Mikerin pleaded guilty to conspiracy to commit money laundering. He was sentenced to 48 months in prison. On March 12, 2018, TLI entered into a deferred prosecution agreement with the Department of Justice in connection with the bribery scheme.
This case was investigated by the FBI’s Washington Field Office and DOE-OIG. Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former President of Maryland-Based Nuclear Transportation Company Sentenced to Four Years in Federal Prison on Charges, Including Paying Bribes to Russian OfficialRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Mark Lambert, age 57, of Mount Airy, Maryland, to four years in federal prison, followed by THREE years of supervised release, after his conviction at trial on four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud, for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy agency. In addition to his prison sentence, Judge Chuang ordered Lambert to pay a $20,000 fine. Lambert must report to the U.S. Marshals Service by February 15, 2021, to begin serving his prison sentence. Lambert is the former president of Transport Logistics International, Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, including to the Russian Federation.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG); and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington, D.C. Field Office.
According to the evidence presented at his three-week trial, Lambert engaged in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX. Mikerin was later president of TENEX’s wholly-owned U.S. subsidiary, TENAM Corporation. Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers” and “cake” to describe the bribes, and they communicated with Mikerin about the scheme at his alias e-mail account where Mikerin used the name “Marvin Jodel.”
The trial evidence demonstrated that, for approximately seven years, in order to secure contracts with TENEX, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. To conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided. Lambert and others then caused TLI to wire the corrupt payments for those purported services to shell company bank accounts in Latvia, Cyprus, and Switzerland.
Two other defendants have pleaded guilty in this matter. Daren Condrey, age 55, of Glenwood, Maryland, Lambert’s former co-president, pleaded guilty to conspiracy to violate the FCPA and commit wire fraud. He is awaiting sentencing. Vadim Mikerin, age 61, a Russian official formerly residing in Chevy Chase, Maryland, pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA and was sentenced to four years in federal prison. On March 12, 2018, TLI entered into a deferred prosecution agreement with the Department of Justice in connection with the bribery scheme.
United States Attorney Robert K. Hur and Acting Assistant Attorney General Brian Rabbitt commended the DOE-OIG and the FBI for their work in the investigation, and thanked the Criminal Division’s Office of International Affairs and law enforcement in Switzerland, Latvia, and Cyprus for providing valuable assistance with the investigation and prosecution of the case. Mr. Hur and Mr. Rabbitt thanked Assistant U.S. Attorney David I. Salem and Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, who are prosecuting the case.
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Former Pharmacy Owner Pleads Guilty to Health Care FraudRead the Press Release
SYRACUSE, NEW YORK – Jennifer Caloia, age 56, a licensed pharmacist who owned and operated Dougherty Pharmacy in Morrisville, New York, from 1998 to 2015, pled guilty today in federal court in Utica to one felony count of health care fraud, announced Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General; Ralph D. Tortora III, Regional Director, New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office; Carol S. Hamilton, Regional Director, U.S. Department of Labor Employee Benefits Security Administration (DOL EBSA); and Superintendent Linda A. Lacewell, New York State Department of Financial Services.
In pleading guilty, Jennifer Caloia admitted that between 2011 and 2015, she defrauded public and private health insurance programs by submitting false and fraudulent claims for prescription drugs that the pharmacy did not dispense. Caloia also admitted that customers submitting prescriptions for medications had their health insurance providers billed for more expensive drugs than those prescribed. To facilitate this scheme, the defendant changed the names of some of the prescription drugs in the software she used to communicate with insurance companies and to print drug labels, which allowed her to submit her fraudulent claims while providing the customer with the appropriate labels and instructions. Caloia further admitted that she personally obtained $110,431.02 in unrecovered proceeds in connection with her health care fraud scheme. She no longer owns or operates Dougherty Pharmacy.
Sentencing is scheduled for February 24, 2021 in federal court in Utica, at which time Caloia faces up to ten years in prison; a fine of up to $250,000; and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. In her plea agreement, Caloia has agreed to pay restitution in the amount of $110,431.02 to the public and private insurers affected by her fraud scheme.
In separately negotiated civil settlements with the Civil Division of the United States Attorney’s Office for the Northern District of New York and the New York State Attorney General’s Office, Caloia and her company agreed to pay $92,308.76 related to her submission of false claims to public insurers such as Medicare and Medicaid. The civil settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, knowns as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $19,332.76 of the settlement proceeds. The federal civil case is docketed with the United States District Court for the Northern District of New York under number 6:17-cv-92 (BKS/ATB).
This case was investigated by the Federal Bureau of Investigation (FBI); the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Labor-Employee Benefits Security Administration (DOL EBSA), New York Attorney General’s Medicaid Fraud Control Unit; and the New York State Department of Financial Services, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry. The civil investigation is being handled by Assistant United States Attorney John Hoggan and Special Assistant Attorney General Paul Berry.
Former Harrison County Constable and Paris Firefighter Sentenced to 420 Months for Using a Minor to Produce Sexually Explicit Images and VideosRead the Press Release
LEXINGTON, KY- A Cynthiana, Kentucky, man, William Michael Fields, Jr., 37, was sentenced to 420 months on Wednesday by Chief U.S. District Judge Danny Reeves, for the production of child pornography.
According to court documents and trial testimony, Fields, then 36, exercised his positions as a Harrison County Constable and Paris Fire Department firefighter to form a relationship with a 17-year-old victim, who was interested in pursuing a career in law enforcement or emergency medicine. The victim became acquainted with Fields in early 2019 while visiting a fire station in Harrison County, and began communicating with the victim through the social media platform Snapchat.
On March 17, 2019, Fields sent the victim a text message asking her to meet him. Fields met with the victim that night and provided her with alcohol. Fields then had sexual intercourse with the victim in the back of an ambulance in Paris. Fields used the victim’s cellphone to video record the encounter, and then sent the video to himself. A thumbnail image from the video was later found on Fields’ cellphone.
The evidence at trial also revealed that Fields again had sexual intercourse with the underage victim at the Emergency Medical Training Facility in Bourbon County on March 23, 2019. Fields again used the victim’s cellphone to record the encounter.
Law enforcement performed a forensic examination of Fields’ cellphone and discovered screen shots from the videos of Fields’ sexual encounters with the victim.
Fields was convicted in June 2020 by a jury in Lexington after a two-day trial.
Under federal law, Fields must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 20 years.
“This conduct is simply inexcusable – the defendant abused his positions of trust and authority, as a firefighter and constable, and used them to sexually exploit a minor victim,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “He further victimized her by knowingly using her to create images of child pornography. This despicable conduct warrants significant punishment, both to hold him accountable and to deter others from engaging in similar conduct.”
United States Attorney Duncan; Jerry C. Templet Jr., Special Agent in Charge, Department of Homeland Security Homeland Security Investigations; Daniel Cameron, Attorney General of Kentucky, and Chief E. Douglas Robinson, Cynthiana Police Department, jointly announce the sentence..
The investigation was conducted by HIS, the Kentucky Office of the Attorney General, and the Cynthiana Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Erin Roth and Mary Melton.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Felon Sentenced to 45 Months in Federal Prison for Illegally Possessing Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NATHANIEL RODRIGUEZ, 24, formerly of Enfield, Connecticut and Holyoke, Massachusetts, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 45 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, at approximately 2:00 a.m. on January 27, 2019, Hartford Police received reports of a fight outside of the Vanish Bar and Grille Club on Meadow Street in Hartford. After responding to the scene, a detective saw Rodriguez arguing with several individuals in an SUV, and then produce a handgun. Hartford Police officers secured Rodriguez and recovered a loaded M&P Bodyguard .380 caliber handgun that he dropped on the ground.
The gun had been reported stolen in Massachusetts in 2017.
Rodriguez’s criminal history includes felony convictions in Massachusetts for firearms, assault, drug, and witness intimidation offenses.
Rodriguez has been detained since March 29, 2019, when he was arrested in Enfield in an unrelated case. On January 28, 2020, he pleaded guilty in federal court to possession of a firearm and ammunition by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Felon Sentenced to 37 Months in Prison for Possessing Loaded RifleRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL A. GOMEZ, 31, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 17, 2019, Gomez was involved in a one-car motor vehicle accident in East Hartford. As East Hartford Police responded to the accident, Gomez ran from the scene. He was apprehended after a short foot chase. A subsequent search of Gomez’s vehicle revealed a loaded AM-15 .223 caliber rifle.
In 2008, Gomez was convicted in state court of two counts of assault in the first degree, on which he was sentenced to 15 years of imprisonment, execution suspended after seven years.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gomez has been detained since his arrest. On June 16, 2020, he pleaded guilty today to possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Federal Law Enforcement Arrest Three Citizens of Mexico for Methamphetamine/Heroin Distribution Operation in San Antonio and South TexasRead the Press Release
Federal and state authorities arrested three citizens of Mexico today for their roles in a methamphetamine and heroin distribution operation, announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division.
Those arrested today include: 27-year-old Daisy Menera and 22-year-old Jose Adam Alejandre-Navarro in Houston, TX; 46-year-old Manuel Montoya, in San Angelo, TX.
A federal grand jury indictment unsealed today charges those arrested, along with three other citizens of Mexico who were already in custody prior to today, with conspiracy to distribute methamphetamine and heroin. The other indicted defendants include: 47-year-old Marco Antonio Morales-Perez, 23-year-old Christopher Valenzuela Ramirez, and 44-year-old Israel Villegas Alcantar.
The indictment alleges that under the leadership of Morales-Perez, this organization was responsible for the coordination and distribution of over 80 kilograms of methamphetamine from Mexico to San Antonio and other areas in South Texas from June 2018 to February 2020. According to the indictment, Morales-Perez coordinated narcotics deliveries from within the Great Plains Correctional Institution in Hinton, OK, using contraband cell phones smuggled into the facility by way of drones.
“The idea that Mexican nationals can sell poison to Texans using drones and smuggled cell phones while serving time in a U.S. prison should worry us all. As transnational criminal organizations become more sophisticated, law enforcement must be given the support, tools, and resources to stop them. Thanks to the combined efforts of our partners in the DEA, FBI, Federal Bureau of Prisons, Bexar County Sheriff’s Office, and the San Antonio Police Department, these defendants will now be held accountable,” stated U.S. Attorney Sofer.
“Methamphetamine and heroin are vicious drugs that continue to cause horrific damage in too many of our communities,” stated DEA Special Agent in Charge Whipple. “These indictments and arrests, as part of Operation Shawshank, conclude a 28-month investigation and demonstrate the level of sophistication utilized by the criminal organizations and the challenges faced by law enforcement. The coordination and management of drug trafficking from within a correctional facility by these subjects underscores this and it is only through the professionalism of law enforcement on both sides of the border that these successes can be achieved.”
To date, authorities have seized approximately 70 kilograms of methamphetamine and seven kilograms of heroin attributable to this drug trafficking organization.
Upon conviction, defendants face between ten years and life in federal prison. All of those arrested today remain in federal custody. Detention hearings are expected to occur next week in U.S. Magistrate Court in San Antonio.
The DEA, FBI, Federal Bureau of Prisons, Bexar County Sheriff’s Office and the San Antonio Police Department are conducting this Organized Crime Drug Enforcement Task Force (OCDETF) investigation with assistance from the Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Leon Valley Police Department, Hollywood Park Police Department, Castle Hills Police Department and Live Oak Police Department. Assistant U.S. Attorney Eric Fuchs is prosecuting 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.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
Father, daughter tax preparers indicted on multiple charges of income tax filing fraudRead the Press Release
AUGUSTA, GA: An Augusta man and his daughter have been charged in a 49-count federal indictment with filing fraudulently inflated tax returns on behalf of clients.
Ezra Hatcher Sr., 66, and Sherry Hatcher, 40, both of Augusta, were indicted in U.S. District Court for Conspiracy to Defraud the United States, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Ezra Hatcher also is charged with 31 counts of Aiding and Assisting in the Filing of False Tax Returns, and Sherry Hatcher is charged with 17 counts of Aiding and Assisting in the Filing of False Tax Returns.
The two were arraigned Wednesday, Oct. 28, in U.S. District Court and each granted $25,000 unsecured bonds, and as a special condition of their release Magistrate Judge Brian K. Epps prohibited them from engaging in any business or fiduciary capacity without disclosing the indictment and nature of the allegations.
“The security of our national budget process depends on honest compliance with tax laws, which is a core responsibility of those who provide assistance in filing tax returns,” said U.S. Attorney Christine. “With the assistance of the IRS and our law enforcement partners, we will aggressively pursue those who attempt to defraud the system for their personal benefit.”
As described in court documents and testimony, the IRS conducted audits of tax preparation services operated by Ezra Hatcher and Sherry Hatcher. The audit determined that from 2014 to 2018, the two companies filed 57 tax returns on behalf of 15 individuals, “knowing the returns contained false and fraudulent information relating to Schedule C expenses, income, and earned income credits.” Altogether, the returns caused the IRS to issue excess refunds amounting to $167,086.
“The public trusts tax return preparers to properly prepare, review, and file their tax returns,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “These charges allege the tax return preparers broke this trust. Always ask to review your return line by line and ask questions if you don’t understand something. Trust but verify.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the IRS, and prosecuted for the United States by Assistant U.S. Attorneys Alejandro V. Pascual IV and Jennifer Stanley.
Farmington Hills Man Indicted in Unemployment Insurance, Credit Card ScamsRead the Press Release
A Farmington Hills man has been indicted and charged with defrauding the Michigan Unemployment Insurance Agency, defrauding credit card companies, and stealing the identities of local residents, United States Attorney Matthew Schneider announced today.
Joining in the announcement were Acting Inspector in Charge Bryan Musgrove, United States Postal Inspection Service, Special-Agent in Charge Andre Martin, United Postal Service – Office of Inspector General and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“The allegations here include some of the most egregious, brazen abuses of the unemployment fraud system we’ve seen this year,” stated United States Attorney Matthew Schneider. “While thousands of people in Michigan have lost their jobs and are struggling to put food on the table, con artists are stealing unemployment money away from them. We plan to follow the money trail and seek justice in all of these cases.”
Special Agent-in-Charge Andre Martin, Great Lakes Area Field Office, U.S. Postal Service Office of Inspector General said, “Today’s charges represent our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail. The USPS OIG, along with the U.S. Attorney's Office, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
Acting Inspector in Charge Bryan Musgrove stated, “U.S. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, including any fraud in which the postal system is used, in an effort to ensure America’s confidence in the U.S. Mail. Investigating violations of more than 200 federal laws, the Postal Inspection Service seeks to enforce these statutes to the maximum extent possible against those aiming, as in this case, to utilize the U.S. Mail in furtherance of illicit activities and criminal schemes.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Charged is Andre Taylor Jr., 27. The indictment charges Taylor Jr. with four counts of mail fraud, three counts of wire fraud, and three counts of aggravated identity theft.
According to the indictment, Taylor Jr. concocted a scheme to defraud the unemployment insurance agencies of Michigan, Pennsylvania, and other states beginning in approximately April, 2020. Taylor Jr. began his scheme shortly after the passage of the Federal Pandemic Unemployment Compensation program, which allowed eligible unemployment insurance claimants to receive an additional $600 in federal benefits per week. Taylor Jr. is alleged to have filed unemployment insurance claims to Michigan and other states in the names of various individuals without those individual’s approval or authorization. To capture the fraudulently obtained unemployment insurance benefits, Taylor Jr. generally arranged for the State Unemployment Insurance Agencies to send prepaid debit cards containing the unemployment benefits to addresses Taylor controlled.
In some instances, the prepaid debit cards were mailed to addresses associated with Taylor Jr. or his family members. In other instances, the prepaid debit cards were sent to addresses along postal routes known to Taylor Jr. Taylor Jr. would allegedly direct letter carriers along these routes to secure the mailings containing the prepaid debit cards associated with UI claims. The letter carriers would then provide Defendant with these mailings in exchange for cash bribes.
Taylor’s alleged bribes to letter carriers extended beyond securing fraudulently obtained debit cards containing unemployment insurance benefits. The indictment alleges that Taylor also paid the letter carriers to obtain credit and debit cards in the names of individuals who lived along the route. Taylor is alleged to have used these credit and debit cards at local retailers such as Meijer and Kroger to obtain gift cards and other goods.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, and the United States Department of Labor, Office of Inspector General. The United States Attorney’s Office would also like to thank the Michigan State Police-Investigative Support Section and the Lathrup Village Police Department for their assistance in this investigation.
Española man sentenced to 16 years in federal prison for robbery, assault, and firearms crimesRead the Press Release
ALBUQUERQUE, N.M. – Michael Duran, 33, of Española, New Mexico, and a member of the Ohkay Owingeh tribe, was sentenced in federal court in Albuquerque on Oct. 21 to 16 years and six months in prison after pleading guilty to charges of robbery, two counts of assault with a dangerous weapon, and discharging a firearm during a crime of violence.
According to court records, on two separate occasions Duran entered a business with the intent to rob it with a firearm. On Oct. 1, 2017, Duran entered the San Pedro Shell gas station and store located near Española on the Santa Clara Pueblo, pointed a firearm at the store clerk and demanded money from the cash register. Duran got away with $50 in cash and several boxes of cigarettes. On Oct. 16, 2017, Duran approached the walk-up order window at the El Parasol Restaurant in Española, also on the Santa Clara Pueblo, and demanded money while pointing a firearm at a restaurant employee. Duran fired his weapon into the business and fled the scene. No one was injured.
Upon his release from prison, Duran will serve three years of supervised release.
The Bureau of Indian Affairs – Northern Pueblo Agency investigated this case with assistance from the Española Police Department. Assistant U.S. Attorneys David P. Cowen and Jennifer M. Rozzoni prosecuted the case.
Eight Individuals Charged with Conspiring to Act as Illegal Agents of the People’s Republic of ChinaRead the Press Release
A complaint and arrest warrants were unsealed today in federal court in Brooklyn charging eight defendants with conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC). Six defendants also face related charges of conspiring to commit interstate and international stalking. The defendants, allegedly acting at the direction and under the control of PRC government officials, conducted surveillance of and engaged in a campaign to harass, stalk and coerce certain residents of the United States to return to the PRC as part of a global, concerted and extralegal repatriation effort known as “Operation Fox Hunt.”
Zhu Yong, Hongru Jin and Michael McMahon were arrested today, and their initial appearances are scheduled this afternoon via teleconference before United States Magistrate Judge Peggy Kuo. Rong Jing and Zheng Congying were arrested in the Central District of California, and their initial appearances will take place in that district later today. Zhu Feng, Hu Ji and Li Minjun remain at large.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; Christopher Wray, Director, Federal Bureau of Investigation (FBI); George M. Crouch, Jr., Special Agent-in-Charge, FBI, Newark Field Office (FBI); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Keith Byrne, Special Agent-in-Charge, U.S. Department of State’s Diplomatic Security Service, New York Field Office, announced the arrests and charges.
“As alleged, the defendants assisted PRC officials in a scheme to coerce targeted individuals to return to the PRC against their will,” stated Acting United States Attorney DuCharme. “The United States will not tolerate the conduct of PRC carrying out state-authorized actions on U.S. soil without notice to, and coordination with, the appropriate U.S. authorities. Nor will we tolerate the unlawful harassment and stalking of U.S. residents to further PRC objectives.” Mr. DuCharme also extended his thanks and appreciation to the FBI’s Los Angeles Field Office for their work on the case.
“With these criminal charges, we have turned the PRC’s Operation Fox Hunt on its head and the hunters became the hunted, the pursuers the pursued,” stated Assistant Attorney General Demers. “Five defendants illegally doing the bidding of the Chinese government here in the United States now face the prospect of prison and our message is clear: stay out. This behavior is not welcome here.”
“The Chinese government’s brazen attempts to surveil, threaten, and harass our own citizens and lawful permanent residents, while on American soil, are part of China’s diverse campaign of theft and malign influence in our country and around the world,” stated FBI Director Wray. “The FBI will use all of its tools to investigate and defeat these outrageous actions by the Chinese government, which are an affront to America's ideals of freedom, human rights, and the rule of law.”
“Today’s announcement of these charges further highlights the FBI’s ongoing and aggressive commitment to investigate China’s efforts to illegally impose its will in the United States,” stated FBI Special Agent-in-Charge Crouch. “This case should serve as a reminder to the People’s Republic of China that when it directs criminal activity within our borders, the FBI and its law enforcement partners will make sure the perpetrators are held accountable.”
“It is alleged that the six defendants charged today were operating on American soil as illegal agents of the People’s Republic of China (PRC.) The defendants engaged in a scheme orchestrated by PRC government officials, to stalk, intimidate, coerce and threaten certain residents of the United States to return to the PRC. Despite the claims that the PRC agents were pursuing Chinese dissidents who were wanted for certain crimes in the PRC, HSI, along with its partners from the FBI, DSS and DOJ, work tirelessly every day to ensure that our rule of law and sovereignty is respected by other countries. In lieu of utilizing well established, international law enforcement channels to locate and apprehend those individuals with charges in the PRC, these illegal agents operated within our border autonomously and against U.S. law, and now they must face their own charges,” stated Special Agent-in-Charge Fitzhugh.
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” stated Diplomatic Security Service Special Agent-in- Charge Byrne.
According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate John Doe-1, a resident of New Jersey, and his family in order to force them to return to the PRC as part of an international effort by the PRC government known within the PRC as “Operation Fox Hunt” and “Operation Skynet.” In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges. Rather than rely upon proper forms of international law enforcement cooperation, such as Interpol “red notices” and requests for information through appropriate governmental channels, the defendants allegedly engaged in clandestine, unsanctioned and illegal conduct within the United States and facilitated the travel of PRC government officials (“PRC Officials”) to U.S. soil in order to further carry out these illegal acts. Between 2016 and 2019, multiple PRC Officials directed the defendants, and several others, to engage in efforts to coerce the victims to return to the PRC, which included the following:
Surveillance and Coercion
In April 2017, defendants Zhu Feng, Hu Ji, Li Minjun, Hongru Jin, Zhu Yong and McMahon, together with others, including the PRC Officials, allegedly participated in a scheme to bring John Doe-1’s elderly father from the PRC to the United States against the father’s will and to use the surprise arrival of his elderly father to threaten and attempt to coerce John Doe-1’s return to the PRC. Zhu Feng, Hu Ji and Zhu Yong worked with McMahon, a private investigator, to gather intelligence about and locate John Doe-1 and his wife in the United States. PRC Officials coerced the father of John Doe-1 to travel from the PRC to the New York area in the company of Li Minjun, a doctor. Hongru Jin assisted with logistics of the operation when Zhu Feng, Li Minjun, John Doe-1’s elderly father and other PRC officials arrived in the U.S.
As charged in the complaint, during this phase of the scheme McMahon, whose task was to surveil John Doe-1’s father in order to locate John Doe-1 and his wife, suggested to Zhu Feng that they could “harass [John Doe-1]. Park outside his home and let him know we are there.” Later, Zhu Feng told McMahon, “[t]hey definitely grant u a nice trip if they can get [John Doe-1] back to China haha.”
The conspirators also discussed the false statements John Doe-1’s father should make to U.S. immigration authorities about the purpose of his travel to the United States. The conspirators also made efforts to destroy evidence and delete their electronic communications to avoid detection by U.S. law enforcement.
Targeting and Harassment of Victims’ Daughter
Between May 2017 and July 2018, Rong Jing and several co-conspirators allegedly targeted John Doe-1’s adult daughter for surveillance and online harassment. Specifically, Rong Jing attempted to hire a private investigator to locate John Doe-1’s adult daughter in order to photograph and video record the daughter as part of a campaign to exert pressure on John Doe-1. Around the same time, an unidentified co-conspirator sent harassing messages over social media to John Doe-1’s daughter and her friends related to the PRC’s interest in repatriating John Doe-1.
Continued Harassment of Victims
In September 2018, Zheng Congying and another unidentified co-conspirator allegedly affixed a threatening note to the door of the John Doe-1’s residence stating, “If you are willing to go back to mainland and spend 10 years in prison, your wife and children will be all right. That’s the end of this matter!” Between February 2019 and April 2019, other co-conspirators caused unsolicited packages to be sent to John Doe-1’s residence. These packages contained letters and a video with messages intended to coerce John Doe-1’s return to the PRC by threatening harm to family members still residing in the PRC.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charged conspiracy to act as an agent of the PRC, each of the eight defendants charged today faces a maximum sentence of five years in prison. Defendants Zhu Feng, Hu Ji, Li Minjun, Michael McMahon, Rong Jing and Zheng Congying also face an additional charge of conspiracy to commit interstate and international stalking, which carries a maximum sentence of five years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and J. Matthew Haggans are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendants:
HONGRU JIN
Age: 30
Queens, New YorkHU JI
Age: 45
People’s Republic of ChinaLI MINJUN
Age: 64
People’s Republic of ChinaMICHAEL MCMAHON
Age: 53
Mahwah, New JerseyRONG JING
Age: 38
Rancho Cucamonga, CaliforniaZHENG CONGYING
Age: 24
Brooklyn, New YorkZHU FENG
Age: 33
Queens, New York; People’s Republic of ChinaZHU YONG, (also known as “Jason Zhu”)
Age: 64
Norwich, Connecticut and Flushing, New YorkE.D.N.Y. Docket No. 20-MJ-1025
Eight Individuals Charged with Conspiring to Act as Illegal Agents of the People’s Republic of ChinaRead the Press Release
A complaint and arrest warrants were unsealed today in federal court in Brooklyn charging eight defendants with conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC). Six defendants also face related charges of conspiring to commit interstate and international stalking. The defendants, allegedly acting at the direction and under the control of PRC government officials, conducted surveillance of and engaged in a campaign to harass, stalk, and coerce certain residents of the United States to return to the PRC as part of a global, concerted, and extralegal repatriation effort known as “Operation Fox Hunt.”
Zhu Yong, Hongru Jin, and Michael McMahon were arrested today and will be arraigned this afternoon via teleconference before U.S. Magistrate Judge Peggy Kuo. Rong Jing and Zheng Congying were arrested in the Central District of California, and their initial appearances will take place in that district later today. Zhu Feng, Hu Ji, and Li Minjun remain at large.
“With today’s charges, we have turned the PRC’s Operation Fox Hunt on its head — the hunters became the hunted, the pursuers the pursued,” said Assistant Attorney General for National Security John C. Demers. “The five defendants the FBI arrested this morning on these charges of illegally doing the bidding of the Chinese government here in the United States now face the prospect of prison. For those charged in China and others engaged in this type of conduct, our message is clear: stay out. This behavior is not welcome here.”
“The Chinese government’s brazen attempts to surveil, threaten, and harass our own citizens and lawful permanent residents, while on American soil, are part of China’s diverse campaign of theft and malign influence in our country and around the world,” said FBI Director Christopher Wray. “The FBI will use all of its tools to investigate and defeat these outrageous actions by the Chinese government, which are an affront to America's ideals of freedom, human rights, and the rule of law.”
“As alleged, the defendants assisted PRC officials in a scheme to coerce targeted individuals to return to the PRC against their will,” said Acting U.S. Attorney Seth D. DuCharme. “The United States will not tolerate the conduct of PRC carrying out state-authorized actions on U.S. soil without notice to, and coordination with, the appropriate U.S. authorities. Nor will we tolerate the unlawful harassment and stalking of U.S. residents to further PRC objectives.” Acting U.S. Attorney DuCharme also extended his thanks and appreciation to the FBI’s Los Angeles Field Office for their work on the case.
“Today’s announcement of these charges further highlights the FBI’s ongoing and aggressive commitment to investigate China’s efforts to illegally impose its will in the United States”, said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office. “This case should serve as a reminder to the People’s Republic of China that when it directs criminal activity within our borders, the FBI and its law enforcement partners will make sure the perpetrators are held accountable.”
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Keith Byrne, Special Agent in Charge of the New York Field Office of the Diplomatic Security Service.
According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate John Doe-1, a resident of New Jersey, and his family in order to force them to return to the PRC as part of an international effort by the PRC government known within the PRC as “Operation Fox Hunt” and “Operation Skynet.” In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges. Rather than rely upon proper forms of international law enforcement cooperation, such as Interpol “red notices” and requests for information through appropriate governmental channels, the defendants allegedly engaged in clandestine, unsanctioned, and illegal conduct within the United States and facilitated the travel of PRC government officials (PRC Officials) to U.S. soil in order to further carry out these illegal acts. Between 2016 and 2019, multiple PRC Officials directed the defendants, and several others, to engage in efforts to coerce the victims to return to the PRC, which included the following:
Surveillance and Coercion
In April 2017, defendants Zhu Feng, Hu Ji, Li Minjun, Hongru Jin, Zhu Yong, and Michael McMahon, together with others, including the PRC Officials, allegedly participated in a scheme to bring John Doe-1’s elderly father from the PRC to the United States against the father’s will and to use the surprise arrival of his elderly father to threaten and attempt to coerce John Doe-1’s return to the PRC. Zhu Feng, Hu Ji, and Zhu Yong worked with Michael McMahon, a private investigator, to gather intelligence about and locate John Doe-1 and his wife in the United States. PRC Officials coerced the father of John Doe-1 to travel from the PRC to the New York area in the company of Li Minjun, a doctor, who traveled with the elderly father from the PRC to the New York area. Hongru Jin assisted with logistics of the operation when Zhu Feng, Li Minjun, John Doe-1’s elderly father, and other PRC officials arrived in the U.S.
As charged in the complaint, during this phase of the scheme, McMahon, whose task was to surveil John Doe-1’s father in order to locate John Doe-1 and his wife, suggested to Zhu Feng that they could “harass [John Doe-1]. Park outside his home and let him know we are there.” Later, Zhu Feng told McMahon, “[t]hey definitely grant u a nice trip if they can get [John Doe-1] back to China haha.”
The conspirators also discussed the false statements John Doe-1’s father should make to U.S. immigration authorities about the purpose of his travel to the United States. The conspirators also made efforts to destroy evidence and delete their electronic communications to avoid detection by U.S. law enforcement.
Targeting and Harassment of Victims’ Daughter
Between May 2017 and July 2018, Rong Jing and several co-conspirators allegedly targeted John Doe-1’s adult daughter for surveillance and online harassment. Specifically, Rong Jing attempted to hire a private investigator to locate John Doe-1’s adult daughter in order to photograph and video record the daughter as part of a campaign to exert pressure on John Doe-1. Around the same time, an unidentified co-conspirator sent harassing messages over social media to John Doe-1’s daughter and her friends related to the PRC’s interest in repatriating John Doe-1.
Continued Harassment of Victims
In September 2018, Zheng Congying and another unidentified co-conspirator allegedly affixed a threatening note to the door of the John Doe-1’s residence stating, “If you are willing to go back to mainland and spend 10 years in prison, your wife and children will be all right. That’s the end of this matter!” Between February 2019 and April 2019, other co-conspirators caused unsolicited packages to be sent to John Doe-1’s residence. These packages contained letters and a video with messages intended to coerce John Doe-1’s return to the PRC by threatening harm to family members still residing in the PRC.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charged conspiracy to act as an agent of the PRC, each of the eight defendants charged today faces a maximum sentence of five years in prison. Defendants Zhu Feng, Hu Ji, Li Minjun, Michael McMahon, Rong Jing, and Zheng Congying also face an additional charge of conspiracy to commit interstate and international stalking, which carries a maximum sentence of five years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren and J. Matthew Haggans are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Doña Ana County inmate sentenced to six years in federal prison for attempt to possess contrabandRead the Press Release
ALBUQUERQUE, N.M. – Aaron Reed, 30, of Grants, New Mexico, was sentenced Oct. 22 to six years and four months in federal prison after pleading guilty to attempting to possess contraband in prison.
Reed was one of seven defendants charged in a conspiracy to distribute illegal drugs, including methamphetamine and buprenorphine, inside of the Doña Ana County Detention Center in January 2019. Reed pleaded guilty on April 2. In the plea agreement, Reed admitted to attempting to obtain methamphetamine and buprenorphine from another inmate in January 2019. According to an indictment, Reed told an associate he knew a corrections officer willing to bring contraband into the detention center and directed her to pay the corrections officer between $200 and $250.
Upon his release from prison, Reed will serve three years of supervised release.
Co-defendant Jose Ignacio Caro pleaded guilty on May 21 to conspiracy to provide contraband in prison and on Sept. 29 was sentenced to seven years in prison. Co-defendant Joe Anthony Garcia pleaded guilty on March 11 to attempt to provide contraband in prison and is awaiting sentencing. Co-defendants Ashley Silva, Angel Destiny Ortega and Marie Cadney pleaded guilty in March and Dominic Garcia on April 1 to Conspiracy to provide contraband in prison and are awaiting sentencing.
The FBI investigated this case in conjunction with the Southern New Mexico Public Corruption Task Force, the Office of Security Threat Intelligence, the Doña Ana County Detention Center, Las Cruces-Doña Ana County Metro Narcotics Agency and the Las Cruces Police Department. Assistant U.S. Attorneys Marisa A. Ong and Matthew R. Ramirez prosecuted the case.
Domestic Violence Awareness Month featured grant and organizationRead the Press Release
New Albany – United States Attorney Josh J. Minkler announced today’s Department of Justice, Office on Violence Against Women featured grant and grant recipient.
The Enhanced Training and Services to End Abuse in Later Life Program
The Enhanced Training and Services to End Abuse in Later Life Program is authorized by 34 U.S.C. § 12421. The program's purpose is to increase and strengthen training for police, prosecutors, and the judiciary in recognizing, investigating, and prosecuting instances of abuse, neglect, exploitation, domestic violence, and sexual assault against older individuals; provide or enhance services for older victims; create or support multidisciplinary collaborative community responses to older victims; and conduct cross-training for victim service organizations, governmental agencies, courts, law enforcement, and nonprofit, nongovernmental organizations serving older victims.
The Judiciary Courts of the State of Indiana (JCSI) through a collaboration among the Bedford Police and Mitchell Police Departments, the Office of the Prosecuting Attorney of Lawrence County, Hoosier Hills PACT, Hoosier Uplands, and the Solutions Center will develop a multidisciplinary approach to addressing elder abuse in their community.
Project partners will provide training opportunities to assist law enforcement, prosecutors, governmental agencies, victim assistants, and relevant officers of federal, state, tribal, territorial, and local courts in recognizing, addressing, investigating, and prosecuting instances of elder abuse; provide or enhance services for victims of elder abuse; create or support multidisciplinary collaborative community responses to victims of elder abuse; and conduct cross-training for victim service organizations, governmental agencies, courts, law enforcement, and nonprofit, nongovernmental organizations serving victims of elder abuse, neglect, and exploitation, including domestic violence, dating violence, sexual assault, and stalking, who are 50 years of age or older.
JCSI and its partners will also engage in a review of their policies and protocols and agree to put in place a body of policies and protocols, based on multi-disciplinary collaboration, designed to aid in improving in the identification, investigation, prosecution and adjudication of cases of elder abuse, exploitation and neglect, including domestic violence and sexual assault.
For more information about this grant, contact the Office on Violence Against Women at 202/307-6026 and ask for the Outreach and Communications Division.
Denver Woman Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Alicia Morelli, age 35, of Denver, pleaded guilty yesterday afternoon to distribution of heroin resulting in death. Morelli appeared at the change of plea hearing in person and in custody. She was remanded to the custody of the U.S. Marshal at the conclusion of the hearing. The Denver Division of the DEA joins in this announcement.
According to the stipulated facts contained in the plea agreement, on June 19, 2019, Denver Police officers responded to a Denver apartment on the report of an unresponsive female. Upon arrival, first responders located a deceased female lying on the bedroom floor. A syringe, a spoon with liquid, and an amount of suspected heroin were located on the table next to where the woman was lying. The Office of the Medical Examiner for the City and County of Denver later determined the woman died as a result of the “toxic effects of heroin.”
Shortly after learning of the woman’s death, Denver Police Detectives assigned to the DEA’s Front Range Task Force used information from the victim’s phone to contact the defendant, who had sold the victim the fatal dose of heroin on June 18. Between June 25, 2019, and October 30, 2019, an undercover Denver Police Detective made five separate purchases of heroin from the defendant. At the conclusion of the controlled purchase on October 30, 2019, federal task force officers and uniformed officers arrested the defendant.
Morelli is being prosecuted by Assistant U.S. Attorney Peter McNeilly. The guilty plea was tendered before U.S. District Court Judge William J. Martinez. Sentencing is scheduled for April 14, 2021. The case is being investigated by the Denver Division of the DEA and the Denver Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 20-cr-50.
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.
Denham Springs Woman Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
A federal grand jury recently returned a three-count indictment charging Brittany Monroe Knapp, age 34, of Denham Springs, Louisiana, with wire fraud and identity theft. Knapp appeared for her arraignment today and pled not guilty to the pending charges.
According to the indictment, from 2014 to 2019, Knapp worked for Oceans Behavioral, LLC, which is a wholly-owned subsidiary of Oceans Healthcare. Between October 2017 and December 2019, Knapp engaged in a scheme to defraud Oceans Healthcare, wherein she created and controlled multiple PayPal online merchant accounts, and used the Oceans Healthcare corporate credit cards of two employees to send funds electronically to the PayPal online merchant accounts she controlled. Once funds were credited to PayPal accounts, she transferred these funds into her personal bank accounts.
Further, Knapp allegedly forged an employee’s signature on “capital expense request” approval forms, falsely representing that she was authorized to incur the aforementioned fraudulent expenses, then created false and fraudulent invoices in the names of real businesses, falsely representing that said companies had provided the goods and services to Oceans Behavioral. Using these false and fraudulent invoices, Knapp submitted “expense reports” to Oceans Healthcare electronically that falsely represented that real businesses had provided the purchased goods and services to Oceans Behavioral. These expense reports caused Oceans Healthcare to pay for the fraudulent credit card charges.
Throughout the course of the fraudulent scheme, Knapp, without authority, embezzled over $750,000 of Oceans Healthcare funds to which she was not entitled.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Peter J. Smyczek.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Convicted Felon Sentenced to More Than 20 Years in Prison for Drug Trafficking and Firearm Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – Daniel LeBron, 47, of Cross City, Florida, was sentenced on October 26, 2020, to a total of 21 and a half years in federal prison after pleading guilty to possession with intent to distribute more than 50 grams methamphetamine, possession of firearms in furtherance of drug trafficking, and possession of firearms and ammunition by a convicted felon. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The sale and use of methamphetamines in our communities has devastating and wide-reaching effects and must be stopped,” said U.S. Attorney Keefe. “With the help of our federal, state, and local law enforcement partners, we will continue to pursue, prosecute, and punish those who bring these drugs into hometowns across Northern Florida.”
Agents from the Drug Enforcement Administration (DEA) have been working with deputies from the Dixie County Sheriff’s Office (DCSO) to investigate and prosecute individuals who are distributing large amounts of methamphetamine in the Dixie County area. On April 24, 2019, deputies from DCSO conducted a traffic stop on LeBron and arrested him after a search led to the discovery of two ounces of methamphetamine, pills, and more than $10,000 cash. The deputies also recovered the key to a safe from around LeBron’s neck. When DEA agents executed a federal search warrant at his residence, they used the key to open a safe found in his bedroom. Inside the safe, agents located an additional 7 ounces of methamphetamine, more pills, and drug paraphernalia. Agents also discovered two firearms in LeBron’s bedroom; an AR-15 and a loaded .22 caliber rifle. LeBron admitted that he had been dealing methamphetamine.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said ATF Special Agent in Charge Daryl McCrary. “This sentencing is another example that working jointly with our partners is making our communities safer.”
Further investigation by the DEA revealed that LeBron was involved with several others in an ongoing conspiracy to distribute methamphetamine in the Dixie County area. Agents determined that over the course of the conspiracy, LeBron had trafficked over 7 kilograms of methamphetamine to individuals in Dixie County.
“LeBron is a dangerous methamphetamine trafficker who is now off the streets of Dixie County,” said DEA’s Miami Field Division Special Agent in Charge Keith Weis.
LeBron will serve 16 and a half years on the methamphetamine charge followed by 5 years on the firearm in furtherance charge. The Court also ordered 10 years of supervised release following LeBron’s prison term. LeBron is now a five-time convicted felon with prior convictions for 2nd Degree Murder and Escape.
This sentencing resulted from the collaborative work of the Drug Enforcement Administration, the Dixie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - LeBronConvicted Felon Detained on Firearm ChargesRead the Press Release
PROVIDENCE – A Pawtucket man previously convicted in Rhode Island state court on felony drug trafficking and misdemeanor domestic assault charges has been ordered detained in federal custody, having been found to allegedly be in possession of a loaded firearm.
On October 14, 2020, Pawtucket Police Officers observing traffic allegedly observed the driver of a vehicle with Virginia license plates, later identified as Jonathan Reyes, 34, of Pawtucket, to be not wearing a seatbelt. Additionally, officers determined that the license plates displayed on the vehicle were registered to a different make and model. As a result, they initiated a traffic stop.
According to court documents, as officers pulled the vehicle over, they allegedly observed Reyes reach across his body, remove a dark object from his chest, and place it in an area out of the officers’ sight. After being advised of the reason for the traffic stop, Reyes allegedly told the officers that he had just purchased the vehicle. He provided officers with a Bill of Sale that allegedly did not contain a VIN number, date of sale/purchase, or signatures of the seller/buyer. A further check of the registration plates determined the vehicle was improperly registered.
While speaking with Reyes regarding his improperly registered vehicle, the officer noticed a dark satchel/fanny pack in the middle of the back seat. When asked what he removed from his chest area as officers were stopping his vehicle, Reyes allegedly told officers that he had removed his seat belt. Reyes and a passenger were asked to leave the vehicle. During a search of the vehicle officers allegedly discovered a loaded Sig Sauer semi-automatic handgun with an obliterated serial number. Officers also allegedly discovered a pill bottle with a ripped label containing suspected Adderall pills.
Reyes, who allegedly attempted to flee police and allegedly resisted officers as he was being placed under arrest, was charged in Rhode Island state court on firearm, drug and resisting arrest charges.
Today, Reyes appeared in federal court before U.S. District Court Magistrate Judge Patricia A. Sullivan charged with felon in possession of a firearm and ammunition and with felon in possession of a firearm with an obliterated serial number. He was ordered detained in federal custody, announced United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged in the criminal complaint, Reyes faces a statutory sentence of up to 10 years in federal prison to be followed by 3 years of supervised release.
The case in federal court is being prosecuted by Assistant United States Attorneys William J. Ferland and Ly T. Chin.
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Contracting Company Owner Sentenced to 84 Months in Prison and Another Business Partner Charged for Roles in Bribery SchemeRead the Press Release
United States Attorney Ron Parsons announced today that a former contracting company owner was sentenced for his role in a bribery scheme. John Thomas German, Jr., age 37 of Peever, South Dakota, was sentenced to 84 months of imprisonment for a loss exceeding $465,000. He was ordered to pay $100 to the Federal Crime Victims Fund. Following his release from custody, German will serve 3 years of supervised release. U.S. District Judge Charles B. Kornmann presided over the sentencing hearing.
According to court documents, the Dakota Nations Development Corporation (“DNDC”) was an agency of the Sisseton-Wahpeton Oyate Sioux Tribe, a tribal government that received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018. At that time, Daniel Thomas White served as the Director of the DNDC. White’s duties included, among other things, overseeing housing and construction projects of the DNDC.
DNDC established an entity called the SWO Elderly Village Limited Partnership. The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land. On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex. The tribe also committed nearly $3,000,000 to the project.
German, along with two other partners, formed a business on December 15, 2016, called Tatanka Contracting. On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679.
To secure the dirt work contract, German bribed White and White accepted the bribe. Specifically, in November 2017, German corruptly gave, offered, and agreed to give money to Daniel Thomas White, intending to influence and reward White, whom was an agent of the Dakota Nations Development Corporation, in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
White pleaded guilty to his role in the bribery scheme on August 24, 2020. He will be sentenced by Judge Kornmann on May 24, 2021.
Kevin Trio, age 58, a partner of Tatanka Contracting, was recently charged for Making Material False Statements to federal agents who were investigating the business dealings surrounding the Elderly Project. Trio was also charged with Misprision of a Felony. He made his appearance on October 21, 2020, before U.S. Magistrate Judge William D. Gerdes and entered a plea of not guilty. The charges are merely accusations, and Trio is presumed innocent until and unless proven guilty. He was released pending trial.
German was ordered to self-report to the U.S. Marshal’s Service or Bureau of Prisons to begin serving his term of imprisonment at a date to be determined.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Colorado Man Sentenced to Prison for Biodiesel Tax Credit FraudRead the Press Release
A Colorado resident was sentenced to 15 months in prison yesterday for his role in a biodiesel tax credit fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, from 2010 to 2013, Calvin Glover and his coconspirators defrauded the United States of $7.2 million by filing false claims with the IRS for renewable fuel tax credits. Glover and his coconspirators formed a company, Shintan Inc. (Shintan), that purported to be in the business of producing renewable fuels. Glover and his coconspirators then submitted at least 22 claims to the IRS which falsely stated that Shintan had produced over seven million gallons of renewable fuel that qualified Shintan to receive refundable tax credits. Glover signed a number of false documents in support of these claims, even though he had no knowledge of Shintan ever producing any biodiesel or biodiesel mixtures.
For his role in the scheme, Glover received nearly $600,000 of the fraud proceeds, which he did not report on his individual tax returns.
On Aug. 8, 2020, Glover pleaded guilty to one count of conspiracy to defraud the United States.
In addition to the term of imprisonment imposed, U.S. District Judge Raymond P. Moore ordered Glover to serve three years of supervised release and to pay approximately $591,454 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Environmental Protection Agency-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah A. Kiewlicz and Stephen K. Moulton of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cibecue Man Sentenced to Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – On October 8, Corey Chrispin Henry, 25, of Cibecue, Arizona, was sentenced by United States District Judge Dominic W. Lanza to 24 months in prison, followed by 36 months of supervised release.
Last November, Henry pleaded guilty to the felony offense of Assault by Strangling or Suffocating for the September 30, 2018 assault on his significant other. The assault took place on the Fort Apache Indian Reservation. Henry is a registered member of the White Mountain Apache Tribe.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Anthony Church, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-08089-PCT-DWL
RELEASE NUMBER: 2020-092_Henry# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Chinese energy company, U.S. oil & gas affiliate and Chinese national indicted for theft of trade secretsRead the Press Release
HOUSTON – 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 theft of 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 paid $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 a possible prison sentence of up to 10 years as well as a $250,000 fine or twice the gross gain or loss.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre of the Southern District of Texas are proseuting 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.
Child Sexual Abuser Pleads Guilty to Citizenship FraudRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to unlawfully obtaining United States citizenship.
According to court documents, Miguel Angel Reyes, 39, lied on various immigration forms while applying to become a naturalized United States citizen. Reyes lawfully entered the United States as a minor in 1994 from the Dominican Republic and obtained his legal permanent residence through his parents. By 2016, Reyes had enlisted in the U.S. Navy and was stationed in the Hampton Roads area. In May 2016, Reyes’s then wife reported to authorities that Reyes had sexually assaulted her two minor daughters. While Reyes was under investigation for those charges, he began the process of naturalizing as a United States Citizen and on multiple immigration forms and in multiple immigration interviews falsely denied that he had committed any crimes. Before Reyes pleaded guilty and was sentenced to prison for his offenses, his false statements led to him becoming a naturalized citizen.
Reyes pleaded guilty to one count of unlawful procurement of citizenship. He faces a maximum penalty of 10 years in prison and mandatory loss of his United States citizenship when sentenced on March 9, 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Joseph L. Kosky 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. 2:20-cr-84.
Broken Bow Man Sentenced to Probation for Lacey Act ViolationRead the Press Release
United States Attorney Joe Kelly announced that Conrad Hueftle, age 28, of Broken Bow, Nebraska, was sentenced today in federal court in Omaha, Nebraska, by United States Magistrate Judge Michael D. Nelson for violating the Lacey Act. The Lacey Act prohibits the trafficking in interstate commerce "tainted" (i.e., taken in violation of a law or regulation) wildlife, fish, or indigenous plants. Hueftle was convicted of one count of the illegal taking of wildlife in interstate commerce and sentenced to two years’ probation. Magistrate Judge Nelson ordered Hueftle to pay $2,500 in restitution and a $5,000 fine. As part of his probation terms, Hueftle shall not hunt, trap, guide, outfit, or otherwise assist or be present in the field with anyone engaging in those activities.
An investigation determined that on November 12, 2016, Hueftle killed a mule deer during the Nebraska firearm deer season upon property located near the Hidden Hills Outfitters (HHO) Lodge in Custer County, Nebraska. Hueftle used a Nebraska Resident Firearm-Restricted Statewide Buck Only permit for taking the mule deer within a Mule Deer Conservation Area (MDCA), a geographic area designated by the State of Nebraska as requiring particularly authorized permits for taking mule deer. Hueftle knew his restricted deer permit did not authorize the taking of mule deer within the MDCA and knew at the time of the taking that he killed the mule deer unlawfully within the MDCA.
Hueftle later transported the deer or parts thereof in interstate commerce by obtaining services of another HHO client to ship the mule deer head, antlers, and cape from Nebraska to a taxidermy business located in Watertown, Wisconsin, for the purpose of converting the trophy parts into a European-style head mount.
Under the terms of his plea agreement, Hueftle abandoned the mule deer taxidermy mount originating from the unlawful 2016 hunt and a trophy-sized 4 X 4 white-tailed deer mount Hueftle killed during the 2014 Nebraska firearm deer season.
The sentencing hearing today is part of the ongoing prosecution of numerous defendants related to violations committed by owners, guides, and clients of Hidden Hills Outfitters. To date, 33 defendants have pleaded guilty and have been sentenced and ordered to pay a total of $580,202 in fines and restitution for underlying violations related to deer taken within baited areas; deer, pronghorn, and wild turkeys taken with weapons or firearms prohibited during their respective hunting seasons; deer taken during closed season hours, from the road, or without a valid permit; and mule deer taken within the Mule Deer Conservation Area.
The operation was a joint investigation conducted by the United States Fish and Wildlife Service, Office of Law Enforcement and the Nebraska Game and Parks Commission, Law Enforcement Division.
Bridgeport Drug Trafficker Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EVAN SHEFFIELD, also known as “Smooth,” 34, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by four years of supervised release, for trafficking heroin, fentanyl and crack cocaine.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation has included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Sheffield, Antonio Small, Louis McDowell, Anthony Small, Michael Munn, Christopher Rodriguez and others were distributing large quantities of heroin, fentanyl and crack cocaine. The investigation further revealed that the co-conspirators were using Sheffield’s residence on Poplar Street in Bridgeport to store, process and package narcotics for street sale, and that Sheffield and his associates kept a firearm at his residence.
Sheffield was arrested on November 6, 2018. On January 14, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin and a quantity of cocaine base (“crack”).
Sheffield, who is released on a $100,000 bond, is required to report to prison on January 5, 2021.
Antonio Small, McDowell, Anthony Small, Munn and Rodriguez have pleaded guilty and await sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty.
Bergen County Man Charged with Money Laundering Conspiracy After Seizure of More Than $5 Million in Narcotics ProceedsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man made his initial court appearance today on charges of conspiring to commit money laundering, U.S. Attorney Craig Carpenito announced.
Ramfis Minaya, 23, of Englewood, New Jersey, is charged by complaint with one count of conspiracy to commit money laundering. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
Since 2019, the U.S. Drug Enforcement Administration (DEA) has been investigating a drug trafficking and money laundering organization (“DTO/MLO”) operating in Mexico, New York, New Jersey, and elsewhere. During the course of this investigation, law enforcement learned that the organization conducts money laundering transactions through the use of couriers with the objective of repatriating narcotics proceeds to narcotics source countries.
In August 2020, law enforcement identified Minaya as a member of the organization, responsible for the transportation and delivery of significant quantities of narcotics proceeds. Since August 2020, law enforcement has seized more than $5 million from money laundering transactions and stashes of narcotics proceeds in which Minaya was directly involved.
For example, on Oct. 27, 2020, law enforcement officers observed Minaya exit his residence and provide another individual (Individual-2) a bag that was eventually determined to contain approximately $100,000 in narcotics proceeds. Officers later saw Minaya exit his home with a bag that was determined to contain another $100,000 in narcotics proceeds.
The charge of conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison, and a $500,000 fine, or twice the amount of money involved in the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents and Task Force Officers with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ashland Couple Sentenced for Methamphetamine TraffickingRead the Press Release
ASHLAND, Ky. – A couple from Ashland, Ky., Franklin Certain, 38, and Rikki Wurts, 24, were sentenced in federal court on Friday, to 120 months and 70 months in prison respectively, before U.S. District Judge David Bunning, for possession with intent to distribute 500 grams or more of methamphetamine.
According to Certain and Wurts’ plea agreements, on April 21, 2019, law enforcement responded to an animal complaint at a residence shared by Certain and Wurts. There, law enforcement found Certain and Wurts in possession of 1,189.3 grams of methamphetamine inside the residence. While in custody, Wurts spoke to a relative about the incident and confirmed that she and Certain were selling the methamphetamine.
Certain and Wurts pleaded guilty in March 2020.
Under federal law, Certain and Wurts must serve 85 percent of his prison sentence. Upon his release, Certain will be under the supervision of the U.S. Probation Office for five years, and Wurts will be under supervision for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; Chief W. Todd Kelley, Ashland Police Department; and Chief Scott Gillum, Flatwoods Police Department, jointly announced the guilty plea.
The investigation was conducted by DEA, Ashland Police Department, and Flatwoods Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Alabama Salesman Sentenced to Prison for Tax EvasionRead the Press Release
A Hoover, Alabama, salesman was sentenced to 24 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Prim F. Escalona for the Northern District of Alabama.
According to court documents and statements made in court, Ivan Scott “Scott” Butler was an automobile industry consultant and sold automobile warranties as an independent salesman. In 1993, Butler stopped filing tax returns and attended tax defier meetings and purchased tax defier materials. Starting in 1998, Butler used several Nevada nominee corporations to receive his income and conceal it from the IRS. In or around 1999, Butler moved hundreds of thousands of dollars to bank accounts in Switzerland and hid his assets in offshore insurance policies held in the name of non-U.S. insurance providers, thus disguising his ownership of the funds. Such accounts, which generally are used as investment vehicles, are commonly known as “insurance wrappers.”
In 2014, Butler converted some of his insurance wrappers into precious metals, which were shipped to Butler and another individual in the United States. Some of those precious metals were given to friends and family for safekeeping. In total, Butler caused a tax loss to the IRS of $1,093,400.
On March 6, 2020, Butler pleaded guilty to tax evasion.
In addition to the term of imprisonment, U.S. District Judge Annemarie Carney Axon ordered Butler to serve three years of supervised release and to pay approximately $1,093,400 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Prim F. Escalona commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Nanette Davis of the Tax Division and Assistant U.S. Attorneys Allison Garnett and Robin Mark, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Afghan National Arrested for 2008 Abduction of American JournalistRead the Press Release
The Department of Justice announced the unsealing of a federal indictment charging Haji Najibullah, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah” with six counts related to the 2008 kidnapping of an American journalist and two Afghan nationals. Najibullah, 44, was arrested and transferred to the United States from Ukraine to face the charges in the indictment. Najibullah will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Katherine Polk Failla.
“Najibullah is charged with taking an American journalist and others hostage in Afghanistan in November 2008. Journalists risk their lives bringing us news from conflict zones, and no matter how much time may pass, our resolve to find and hold accountable those who target and harm them and other Americans will never wane,” said Assistant Attorney General for National Security John C. Demers. “The defendant, like many others before and surely others to come, will now face justice in an American courtroom.”
Acting U.S. Attorney Audrey Strauss said: “Nearly 12 years ago, the defendant arranged to kidnap at gunpoint an American journalist and two other men, and held them hostage for more than seven months,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “The prosecution of Haji Najibullah shows that law enforcement will never stop in our mission to hold accountable those who commit violent crimes against American citizens.”
“Whether someone commits a violent act against an American citizen here at home or overseas, we’ll never stop aggressively pursuing charges against them and, when necessary, seeking their transfer to U.S. custody,” said FBI Assistant Director-in-Charge of the New York Office of the FBI William F. Sweeney Jr. “Najibullah’s reprehensible actions over a decade ago earned him a flight to the U.S. yesterday. Today he arrived in U.S. federal court to face our justice system.”
“The FBI, along with our partners, continue to work tirelessly in the pursuit of justice and to hold accountable those who are responsible for the kidnapping and hostage taking of U.S. citizens abroad,” said Assistant Director Jill Sanborn of the FBI's Counterterrorism Division. “We remain steadfast in our obligation to see justice served, regardless of the how long it may take or where those individuals are located. This investigation and resulting indictment reflects the FBI’s perseverance and commitment to the victims of these heinous acts – We never forget, and we never give up.”
“Haji Najibullah’s alleged kidnapping of a United States journalist and two Afghan nationals was a crime against America, a crime against the freedom of the press, and against the integral work of shining a light on important international affairs,” said Police Commissioner Shea. “While today’s federal indictment reflects events that occurred a dozen years ago, it shows once again that the FBI-NYPD Joint Terrorism Task Force and all of our law enforcement partners will wait as long and go as far as it takes to bring justice.”
According to the Indictment:[1]
On or about Nov. 10, 2008, Najibullah and his co-conspirators, armed with machineguns, kidnapped an American journalist (Victim-1) and two Afghan nationals who were assisting Victim-1 (Victim-2 and Victim-3) at gunpoint in Afghanistan. Approximately five days later, on or about Nov. 15, 2008, Najibullah and his co-conspirators forced the three hostages to hike across the border from Afghanistan to Pakistan, where Najibullah and his co-conspirators detained the hostages. For the next seven months, Najibullah and his co-conspirators held the hostages captive in Pakistan.
During their captivity, Najibullah and his co-conspirators forced the victims to make numerous calls and videos seeking help. For example, on or about Nov. 19, 2008, while in Pakistan, Najibullah and a co-conspirator (CC-1) directed Victim-1 to call his wife in New York. In addition, Najibullah and his co-conspirators made the victims create at least three videos in which they begged for help while surrounded by masked guards armed with machineguns. In one of the videos, Victim-1 — the American journalist — was forced to beg for his life while a guard pointed a machinegun at Victim-1’s face.
Najibullah, 44, of Afghanistan is charged with hostage taking, conspiracy to commit hostage taking, kidnapping, conspiracy to commit kidnapping, and two counts of using and possessing a machinegun in furtherance of crimes of violence. Each of the six counts of the indictment carry a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force. They also thanked the New York and New Jersey Port Authority Police, the Counterterrorism Section of the Department of Justice’s National Security Division, the Legal Attaché Office/U.S. Embassy Kyiv and the FBI's Counterterrorism Division for its assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the extradition.
This prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Sidhardha Kamaraju, and Michael Kim Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Afghan National Arrested for 2008 Abduction of American JournalistRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced the unsealing of a federal indictment charging HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” with six counts related to the 2008 kidnapping of an American journalist and two Afghan nationals. NAJIBULLAH was arrested and transferred to the United States from Ukraine to face the charges in the indictment. NAJIBULLAH will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Katherine Polk Failla.
Acting U.S. Attorney Audrey Strauss said: “As alleged, nearly 12 years ago, the defendant arranged to kidnap at gunpoint an American journalist and two other men, and held them hostage for more than seven months. The prosecution of Haji Najibullah shows that law enforcement will never stop in our mission to hold accountable those who commit violent crimes against American citizens.”
Assistant Attorney General for National Security John C. Demers said: “Najibullah is charged with taking an American journalist and others hostage in Afghanistan in November 2008. Journalists risk their lives bringing us news from conflict zones, and no matter how much time may pass, our resolve to find and hold accountable those who target and harm them and other Americans will never wane. The defendant, like many others before and surely others to come, will now face justice in an American courtroom.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether someone commits a violent act against an American citizen here at home or overseas, we’ll never stop aggressively pursuing charges against them and, when necessary, seeking their transfer to U.S. custody. Najibullah’s alleged reprehensible actions over a decade ago earned him a flight to the U.S. yesterday. Today he arrived in U.S. federal court to face our justice system.”
Police Commissioner Dermot Shea said: “Haji Najibullah’s alleged kidnapping of a United States journalist and two Afghan nationals was a crime against America, a crime against the freedom of the press, and against the integral work of shining a light on important international affairs. While today’s federal indictment reflects events that occurred a dozen years ago, it shows once again that the FBI-NYPD Joint Terrorism Task Force and all of our law enforcement partners will wait as long and go as far as it takes to bring justice.”
According to the Indictment:[1]
On or about November 10, 2008, NAJIBULLAH and his co-conspirators, armed with machineguns, kidnapped an American journalist (“Victim-1”) and two Afghan nationals who were assisting Victim-1 (“Victim-2” and “Victim-3”) at gunpoint in Afghanistan. Approximately five days later, on or about November 15, 2008, NAJIBULLAH and his co-conspirators forced the three hostages to hike across the border from Afghanistan to Pakistan, where NAJIBULLAH and his co-conspirators detained the hostages. For the next seven months, NAJIBULLAH and his co-conspirators held the hostages captive in Pakistan.
During their captivity, NAJIBULLAH and his co-conspirators forced the victims to make numerous calls and videos seeking help. For example, on or about November 19, 2008, while in Pakistan, NAJIBULLAH and a co-conspirator (“CC-1”) directed Victim-1 to call his wife in New York. In addition, NAJIBULLAH and his co-conspirators made the victims create at least three videos in which they begged for help while surrounded by masked guards armed with machineguns. In one of the videos, Victim-1 – the American journalist – was forced to beg for his life while a guard pointed a machinegun at Victim-1’s face.
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NAJIBULLAH, 42, of Afghanistan, is charged with hostage taking, conspiracy to commit hostage taking, kidnapping, conspiracy to commit kidnapping, and two counts of using and possessing a machinegun in furtherance of crimes of violence. Each of the six counts of the Indictment carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force. They also thanked the New York and New Jersey Port Authority Police, the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.
This prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Sidhardha Kamaraju, and Michael Kim Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
27 October 2020
Yuba City Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Stephen Gordon Wood, 41, of Yuba City, was sentenced today by U.S. District Judge John A. Mendez to five years in prison to be followed by 10 years of supervised release for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2012, federal agents discovered that Wood had made available thousands of images of suspected child pornography on a peer-to-peer file-sharing network that operated over the internet. Agents later searched Wood’s home and laptop computer pursuant to a search warrant. A forensic review of Wood’s laptop uncovered at least 792 images and 59 videos of child pornography, including images of prepubescent children being sexually exploited that had been deleted. Wood later admitted to searching for, downloading, and viewing child pornography for at least a year prior to his arrest in 2013.
This case was the product of an investigation by Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew C. Thuesen and Special Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
Wood was ordered to surrender to the Bureau of Prisons or the U.S. Marshals Service on Jan. 11, 2021, to begin serving his sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Washington man charged with COVID-relief fraudRead the Press Release
SEATTLE – A Washington State man was charged in a criminal complaint unsealed today for fraudulently seeking over $1.1 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration, Inspector General Gail S. Ennis of the Social Security Administration, Inspector General Hannibal “Mike” Ware of the SBA, and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, made the announcement.
Austin Hsu, 46, of Issaquah, Washington, was charged by criminal complaint, unsealed today after his initial appearance, in the Western District of Washington with one count of wire fraud. He made his initial appearance before U.S. Magistrate Judge Brian A. Tsuchida.
The complaint alleges that Hsu submitted nine fraudulent disaster loan applications on behalf of five different companies. Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of other companies that he owned and controlled. The complaint also alleges that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
The complaint further alleges that, in support of the fraudulent EIDL loan applications, Hsu made numerous false and misleading statements about the companies’ respective business and operations. For example, Hsu incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. In truth, Blueline had no business or operations.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, Social Security Administration – Office of Inspector General, and Small Business Administration – Office of Inspector General, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
hsu_complaint.pdf