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Newest first across public DOJ and U.S. Attorney press releases.
27 October 2020
Washington Man Charged with COVID-Relief FraudRead the Press Release
A Washington 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.
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.
United States Files Civil Action to Repatriate Thai Religious Relics Housed at the San Francisco Asian Art MuseumRead the Press Release
SAN FRANCISCO – The United States filed a civil complaint to forfeit and repatriate two religious relics identified as having been illegally exported from Thailand, announced United States Attorney David L. Anderson of the Northern District of California and Homeland Security Investigations (NorCal) Special Agent in Charge Tatum King. The civil complaint can be viewed here: https://go.usa.gov/x7TKF
According to the complaint, the two 1,500-pound hand-carved decorative lintels originally were located in ancient religious temples in Thailand, were removed illegally, and thereafter were exported from Thailand without a license. The complaint alleges the Thai lintels became part of a large collection held by a noted collector of South and Southeast Asian art. The collection was bequeathed to the City and County of San Francisco, which used the collection, including the lintels, for display in the Asian Art Museum. In 2017, the federal government learned that these lintels had been illegally exported from Thailand, rendering them forfeitable as property present in the United States “contrary to law,” and reached out to the Asian Art Museum to negotiate their return.
“U.S. law requires U.S. museums to respect the rights of other countries to their own historical artifacts,” U.S. Attorney Anderson said. “For years we have tried to get the Asian Art Museum to return this stolen artwork to Thailand. With this federal filing, we call on the Museum’s Board of Directors to do the right thing.”
“Returning a nation’s cultural antiquities promotes goodwill with foreign governments and citizens, while significantly protecting the world’s cultural history and knowledge of past civilizations,” said Special Agent in Charge King. “The theft and trafficking of cultural artifacts is a tradition as old as the cultures they represent. Federal importation laws provide HSI the authority to take a leading role in investigating crimes involving the illicit importation and distribution of cultural property and art. Customs laws allow HSI to seize cultural property and art that are brought into the United States illegally, especially when objects have been reported lost or stolen. Through our work in this investigation, we hope to ensure the relationship between the United States and Thailand remains one of mutual respect and admiration. This will help Thailand’s cultural heritage to be fully restored for the appreciation of this and future generations.”
The civil complaint merely alleges that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the items are subject to forfeiture. If the United States prevails, the court will order all interests of any potential claimant forfeit, including the City and County of San Francisco, and the United States will provide Thai officials with information as to the Department of Justice’s remission and restoration process via the Money Laundering and Asset Recovery Section.
Assistant U.S. Attorneys Chris Kaltsas of the Northern District of California and Amanda M. Bettinelli of the Central District of California are prosecuting the forfeiture with the assistance of Irene Zhu. The forfeiture action is the result of an investigation by Homeland Security Investigations.
United States Attorney's Office Establishes Election Day HotlineRead the Press Release
CONCORD, N.H. –United States Attorney Scott W. Murray announced the establishment of an Election Day hotline in coordination with the U.S. Justice Department’s nationwide Election Day program for the general election on November 3, 2020. The hotline number is (603) 230-2503.
United States Attorney Murray has appointed Assistant United States Attorney Seth R. Aframe to serve as the District Election Officer for the District of New Hampshire. In that capacity, AUSA Aframe is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. He is also responsible for monitoring the Election Day hotline while the polls are open. He can be reached by calling (603) 230-2503.
"Every citizen must be able to vote without interference or discrimination and to have that vote counted fairly,” U.S. Attorney Murray said. “The Department of Justice will always protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals. It also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“The voting franchise is the cornerstone of American democracy,” U.S. Attorney Murray said. “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In addition to the hotline, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI in New Hampshire can be reached by the public at (603) 472-2224.
Complaints about possible violations of the federal voting rights laws also can be made directly to the Civil Rights Division’s in Washington, DC by phone at 1-800-253-3931 or by using the complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, citizens should call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
A Federal Election Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.justice.gov/usao-nh.
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U.S. Attorney’s Office Election Day ProgramRead the Press Release
ST. LOUIS, MO— United States Attorney Jeff Jensen announced today that Assistant United States Attorneys (AUSAs) Jennifer Roy and Hal Goldsmith will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSAs Roy and Goldsmith have been appointed to serve as the District Election Officers (DEOs) for the Eastern District of Missouri, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Jensen said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Jensen stated that AUSAs/DEOs Roy and Goldsmith will be on duty in this District while the polls are open. They can be reached by the public at the following telephone number: (314) 539-7733.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (314) 589-2500 or, on election day, at (314) 612-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Jensen said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
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U.S. Attorneys in Mississippi Stand Ready to Protect Voting Rights on Election DayRead the Press Release
Jackson, Miss. - United States Attorneys Mike Hurst of the Southern District of Mississippi and William C. Lamar of the Northern District of Mississippi announced today that they have appointed District Election Officers (“DEO”) in their respective Districts to lead the efforts of their offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.
Assistant U.S. Attorney Ted Cooperstein in the Southern District of Mississippi and Assistant U.S. Attorney Robert Coleman in the Northern District of Mississippi will be responsible for overseeing their respective District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Voting is the cornerstone of our democracy, and ensuring free and fair elections is one of the most important responsibilities we have as U.S. Attorneys. Every citizen must be able to vote without interference or discrimination and to have their vote counted without it being stolen by fraud. We stand ready to act promptly and aggressively to protect the rights of voters and safeguard the integrity of the election process,” said U.S. Attorney Hurst.
U.S. Attorney Lamar said, “The fairness of the election process hinges on our citizens’ ability to fully and fairly exercise their constitutional right to vote without fear, resistance or undue outside influence. We will work diligently to insure that the right of our citizens to vote and to participate in the electoral process will not be impeded.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEOs Cooperstein and Coleman will be on duty in their respective Districts while the polls are open. Cooperstein can be reached at 601-973-2155 and Coleman can be contacted at 662-816-4304.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 601-948-5000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorneys Across California Join District Attorneys to Help Victims of Domestic Violence During the COVID-19 PandemicRead the Press Release
SACRAMENTO, Calif. — The United States Attorneys for the Eastern District of California, Central District of California, and Southern District of California and the District Attorneys of Sacramento, Alameda, Ventura, and San Diego counties launched an online outreach campaign to help victims of domestic violence during the COVID-19 pandemic, announced U.S. Attorney McGregor W. Scott. The United States Attorneys and District Attorneys are joined by Childhelp, a national nonprofit organization aiding victims of child abuse.
The outreach campaign was created to combat unintended consequence of COVID-19 public health measures— an alarming rise in domestic violence with victims trapped at home with their abusers under increasing stress. The National Domestic Violence Hotline has reported an increase in contacts to the hotline during COVID-19. Reports show that physicians are treating more domestic violence injuries and that these injuries are more severe. According to the CDC, roughly 1 in 6 homicide victims are killed by an intimate partner. Research further shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have access to a firearm.
Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. Earlier this month, the Department of Justice announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020, and 13 were brought by the Eastern District of California.
“The U.S. Attorney’s Office regularly works with local law enforcement and this joint outreach is another example of this partnership,” said U.S. Attorney Scott. “With Childhelp, our offices have come together across California to try to reach as many victims of domestic violence as we can, and to help prevent domestic violence by providing resources and raising awareness.”
According to Childhelp Founder & CEO, Sara O’Meara, “The partnership of California’s safety leaders with Childhelp to secure children during COVID-19 is a model for child welfare across the country. All these huge hearts coming together to find children trapped in the shadows of abuse will not only save lives, but create a culture of compassion that will exist long after this virus is behind us.”
The campaign includes a video public service announcement and public awareness messages posted on Facebook, Twitter, and other social media platforms with a new post made each day for one week. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign follows a July campaign addressing domestic violence and child abuse and exploitation by U.S. Attorney Scott, Childhelp, and the District Attorneys of Alameda, Sacramento, and San Diego counties.
U.S. Attorney W. Stephen Muldrow Appoints Election Officer for the District of Puerto RicoRead the Press Release
United States Attorney W. Stephen Muldrow announced today that the Chief of the Financial Fraud & Corruption Section, Assistant United States Attorney (AUSA) Seth Erbe, will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Erbe has been appointed to serve as the District Election Officer (DEO) for the District of Puerto Rico, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Muldrow said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Muldrow stated that AUSA/DEO Erbe will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 787-340-1795 or 787-340-1890.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 787-754-6000 or 787-987-6500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at (800) 253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Muldrow said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
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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U.S. Attorney Names District Election Officer to Oversee the Handling of Complaints of Election Fraud and Voting Rights Abuses in November 2020 General ElectionRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Assistant U.S. Attorney Kevin Khasigian will serve as the District Election Officer (DEO) for the Eastern District of California in connection with the Justice Department’s nationwide Election Day Program for the Nov. 3 general election. The DEO is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
In addition, Assistant U.S. Attorney Paul Hemesath will serve as the National Security Cyber Specialist (NSCS) and is tasked with preparing for and responding to digital election threats.
Counties in the Eastern District are: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.
U.S. Attorney Scott said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on Nov. 3, and to ensure that such complaints are directed to the appropriate authorities, DEO Khasigian will be on duty in this District while the polls are open. He can be reached by the public at: (916) 554-2700 and (916) 554-2723.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public in the Eastern District of California at (916) 746-7000 or at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC, by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov.
U.S. Attorney Mike Hurst's Statement on Jackson Police Department’s “Operation Unity”Read the Press Release
“Today, Jackson Police Department Chief James E. Davis announced JPD’s ‘Operation Unity’ to saturate the City of Jackson with state and local law enforcement over the next two weeks. I was told about this operation on Friday by one of my federal prosecutors, and I called Chief Davis to advise him against telling criminals in advance about an upcoming law enforcement operation. Chief Davis did not answer nor return my phone call, so I sent him a letter yesterday, imploring him not to hold a press conference before such an operation, as it could put officers’ lives in danger and criminals would simply hide to avoid detection.”
“The U.S. Attorney’s Office will continue to work closely with JPD and our other partners in order to prosecute violent criminals in Jackson, as we have been doing for the last three years, under Project EJECT. But I pray for our law enforcement and their safety over the next two weeks in Jackson, and I hope that future law enforcement operations will be conducted to have more meaningful, long-term effects.”
U.S. Attorney Hurst’s letter to Chief Davis is attached hereto.
U.S. Attorney Announces Establishment of Civil Rights Enforcement UnitRead the Press Release
ALEXANDRIA, Va. – Today, U.S. Attorney G. Zachary Terwilliger announced the establishment of a new Civil Rights Enforcement Unit in the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA).
“I am proud to announce that EDVA is the first U.S. Attorney’s Office nationwide to have multiple Assistant U.S. Attorneys 100 percent dedicated to enforcing the rights of persons with disabilities under the Americans with Disabilities Act (ADA), and another Assistant U.S. Attorney dedicated full-time to enforcing the rights of servicemembers and veterans under statutes like the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act,” said Terwilliger.
“After taking office as U.S. Attorney in May 2018, I spent time traveling the District to meet organizations with which we have partnered to enforce disability rights,” said Terwilliger. “I discovered two things: One, under AUSA Steve Gordon’s leadership, this office has a nationally recognized ADA enforcement practice; and two, the needs of citizens within the Eastern District’s disability community far outpaced our office’s available resources. As a lifelong dyslexic, this work is near and dear to me and I know that were it not for the ADA, I would not be standing here, in this position, today. I could not be prouder to have the Civil Rights Enforcement Unit now become part of the revered U.S. Attorney’s Office for the Eastern District of Virginia.”
The new unit institutionalizes and expands EDVA’s existing Civil Rights Enforcement Program, which has already had great success in enforcing the rights of persons with disabilities. The unit will combine case-based advocacy with community outreach and training, and will seek to expand our work into assisting veterans with disabilities to ensure that those who fought for our country are not discriminated against based upon a disability.
The Centers for Disease Control and Prevention estimates that nearly 1 in 4 (23.6 percent) adults in Virginia have disabilities. These men and women continue to face innumerable barriers to their full inclusion into all aspects of society. Examples of these barriers include:
- Attitudinal barriers, including the mindset that accommodations, such as those provided for students with learning disabilities, are some kind of special treatment, an unfair crutch, rather than simply providing equal access to people with disabilities;
- Communication barriers, such as failure to provide a sign language interpreter for high stakes interactions with medical personnel at a hospital; and
- Architectural barriers, such as missing ramps at polling places that prevent individuals, including those brave women and men who fought in our military to secure the right to vote for all, from engaging in the fundamental right to vote.
The establishment of EDVA’s Civil Rights Unit honors the 30th anniversary of the landmark Americans with Disabilities Act, which was signed into law by President George H.W. Bush in 1990.
Highlights of EDVA’s ADA Enforcement Program
Ensuring Equal Access to Healthcare. EDVA has developed a leading practice under the Justice Department’s Barrier Free Healthcare Initiative, entering into multiple comprehensive settlement agreements with Lincare, Inc., Spotsylvania Regional Medical Center, Fairfax Nursing Center, and Commonwealth Health and Rehabilitation Center, healthcare providers who failed to provide sign language interpreter services to patients and companions who are deaf, including for high-stakes communications regarding critical medical care.
Ensuring Equal Access to Polling Places. In connection with the Justice Department’s ADA Voting Initiative, EDVA entered into comprehensive settlement agreements with Fauquier County and the City of Chesapeake to ensure that people with mobility disabilities can physically access polling locations so as to not be denied their fundamental right to vote.
Ensuring Physical Access to Places of Public Accommodation. EDVA has successfully resolved multiple matters to ensure physical access to public places to those with mobility disabilities. One significant example is a settlement with the operator of the Crystal City Shops and Underground relating to a pedestrian concourse that is 11 blocks long and three blocks wide to ensure physical accessibility for people with disabilities.
Highlights of EDVA’s Servicemembers and Veterans Initiative
Protecting Our Servicemembers from Unlawful Evictions and Damages Actions. EDVA obtained the largest ever settlement against a property management company for violating the SCRA.
Protecting Our Veterans’ Employment and Reemployment Rights: EDVA has investigated and resolved a matter in favor of an Army Reserve soldier whose civilian employment with Lawn Doctor of Stafford-Culpeper was terminated after the soldier’s absence due to active duty military service. On behalf of the soldier, our office recovered the soldier’s lost income, as well as liquidated damages.
Outreach and Partnerships
In addition to enforcement actions, EDVA will continue to prioritize community outreach and training, which has amplified the impact of our enforcement work by cultivating strong working relationships with leaders from the community and covered entities, educating people and communities about their rights, deterring violations, and informing our enforcement efforts.
To date, EDVA has held more than 60 community outreach and engagement events in support of our ADA efforts, including an annual round table with stakeholders in the Disability Rights Community; a community meeting regarding ADA issues arising as a result of the COVID-19 pandemic; presentations to premiere national and regional ADA conferences; and trainings for significant covered entities, such as the Virginia Association of Community Service Boards, the State Council on Higher Education for Virginia, and the Virginia Department of Corrections.
Finally, we are grateful for the partnership and support of disability rights-focused organizations like the National Association for the Deaf, Arc of Loudon, disAbility Resource Center of the Rappahannock, Arc of Northern Virginia, Northern Virginia Resource Center for the Deaf and Hard-of-Hearing, and the Mid-Atlantic ADA Center.
2020 marks the ADA’s 30th anniversary. The Justice Department continues to advance the nation's goal of equal opportunity, integration, full participation, inclusion, independent living, and economic self-sufficiency for people with disabilities. Through its enforcement and technical assistance tools, the Justice Department strives to eliminate unlawful discrimination against individuals with disabilities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Charged with Conspiring with State Contractor in Multi-million Dollar Unemployment Fraud SchemeRead the Press Release
A couple from Detroit was charged today with participating in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
Charged are Johnny Richardson, 25, and Micahia Taylor, 27.
According to the complaints, Richardson and Taylor conspired with Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency charged in a criminal complaint this past July—to fraudulently release over $2.5 million in government money that was intended to support individuals who lost their jobs during the COVID-19 pandemic.
It is alleged that Richardson and Taylor, either themselves or through others, filed fraudulent unemployment claims over the Internet. Richardson and Taylor then provided Hawkins information on these claims, and Hawkins subsequently used her insider access to fraudulently release payment. Hawkins actions resulted in the fraudulent disbursement of over $2,000,000 of federal and state funds intended for unemployment assistance during the pandemic.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Three men indicted for scheme to use a drone to smuggle contraband into a Georgia state prisonRead the Press Release
DUBLIN, GA: Three men, one of them a prison inmate, have been indicted for attempting to use a drone to smuggle contraband into a Georgia state prison.
George Lo, 27, an inmate currently at Smith State Prison in Glennville, Ga.; his brother, Nicholas Lo, 24, of Dallas, Ga.; and Cheikh Hassane Toure, 24, of Austell, Ga., are charged with Conspiracy, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. George Lo and Nicholas Lo also are charged with Owning an Unregistered Aircraft that was Operated, Attempted to be Operated, or Allowed to be Operated by Another Person; and Nicholas Lo and Toure are charged with Serving or Attempting to Serve as an Airman without an Airman’s Certificate.
“Drone delivered contraband, including cell phones, into correctional facilities, is an emerging threat endangering the safety of those inside and outside the prison walls,” said U.S. Attorney Christine. “Our office works aggressively with law enforcement partners such as the Georgia Department of Corrections to crash-land these dangerous schemes.”
As described in court documents, George Lo, then an inmate serving a state sentence for armed robbery at Telfair State Prison in McRae-Helena, Ga., as early as July 13, 2019, conspired with Nicholas Lo and Toure, and others, to own and operate a Storm Drone 4 kit-built unmanned aircraft without registration or licensing. The Lo brothers discussed using the drone to deliver contraband to Telfair State Prison, and Nicholas Lo and Toure practiced flying the aircraft.
At 1:30 a.m., on Aug. 26, 2019, Telfair County Sheriff’s deputies observed an approaching vehicle turn off its lights and park about 100 yards from Telfair State Prison. During a search of the area, Deputies encountered Nicholas Lo and Toure in a wooded area between the road and prison. The pair possessed a large duffle bag containing the drone, a RadioLink AT9S UAS controller, a Spektrum video monitor and a headset. In addition, the bag contained 14 cell phones, at least 74 grams of tobacco, a digital scale, earbud headphones and firearm ammunition. Nicholas Lo and Toure were taken into custody. Nicholas Lo was remanded to the custody of the Georgia Department of Community Supervision on a probation violation and currently is serving the remainder of a state sentence in Hays State Prison, and Toure was arraigned in U.S. District Court on Tuesday, Oct. 27, where he pled not guilty and remains free on bond from his initial arrest.
Federal law requires registration of unmanned aircraft weighing 0.55 pounds or more, and the Storm Drone 4’s weight was in excess of that requirement. Also, federal law requires the pilot of any unmanned aircraft to hold an airman’s certificate when operating the unmanned aircraft for compensation or hire.
“Simply put, the illicit use of drones for the distribution of contraband is dangerous and illegal,” said Todd Damiani, Regional Special Agent-In-Charge, Department of Transportation Office of Inspector General. “We will continue to partner with law enforcement and prosecutors to pursue those who intentionally violate federal regulations for nefarious activities.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of Transportation Office of the Inspector General, the Georgia Department of Corrections, and the Telfair County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys John P. Harper III and E. Greg Gilluly Jr.
Three Men Charged with Federal Sex Crimes After Attempting Sexual Contact with Children They Met OnlineRead the Press Release
NEWARK, N.J. – Three men have been charged with various sex offenses after attempting to have sexual contact with individuals they believed to be children they met online, U.S. Attorney Craig Carpenito announced today.
Quentin Anthony Blount, 28, of Easton, Pennsylvania, Jesus Modesto Sanchez, 29, of New York City, and Ryan Lee, 35, of Trenton, New Jersey, are charged in separate complaints: Blount is charged with interstate travel with the intent to engage in illicit sexual conduct and attempted sex trafficking of a minor; Modesto Sanchez is charged with interstate travel with the intent to engage in illicit sexual conduct and possession of child pornography; and Lee is charged with attempted online enticement and attempted transfer of obscene materials to minors. Blount and Lee made their initial appearances by videoconference before U.S. Magistrate Judge James B. Clark III on Oct. 23, 2020, and were detained. Modesto Sanchez is expected to make his initial appearance later this week.
“Sexual crimes against children are among the most difficult cases we handle,” U.S. Attorney Carpenito said. “I am proud my office is working hand in hand with our partners at the FBI and the Somerset County Prosecutor’s Office to make sure these predators are identified and prosecuted with all the tools at our disposal.”
“Our children and their online safety is the utmost concern to us at the Somerset County Prosecutor’s Office,” Somerset County Prosecutor Michael Robertson said. “Social media apps allow predators into our homes and as law enforcement, we must do what we can to make it a safer environment. We hope that this operation will continue to be eye-opening for parents. Although, 12 online child predators have been arrested, parents must learn the apps that their children are using and the inherent dangers within.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said. The FBI and our law enforcement partners will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to documents filed in these cases and statements made in court:
Special agents of the FBI and local law enforcement engaged in an operation targeting individuals who use the internet to exploit children. Blount, Modesto Sanchez and Lee were among several individuals identified and arrested.
On Oct. 15, 2020, Blount used an internet-based application to communicate with an individual who he believed was offering her 14-year-old daughter for sex in exchange for money. Unbeknownst to Blount, he was communicating with an undercover law enforcement officer. Blount travelled from Easton to a location in Somerset County, New Jersey, to meet with the mother and the minor. Upon his arrival, he provided a sum of cash to the undercover officer, who Blount believed was the child’s mother, and was arrested by law enforcement.
In mid-October 2020, Modesto Sanchez used an internet-based application to communicate with an undercover officer who Modesto Sanchez believed was a 13-year-old child. During the conversation, Modesto Sanchez offered to perform various sex acts. On Oct. 17, 2020, Modesto Sanchez travelled from New York to a location in Somerset County to meet with the child. Law enforcement identified Modesto Sanchez as he approached the location where he believed the minor to be, at which time he was arrested by law enforcement. A search of Modesto Sanchez’ cellular telephone revealed over 200 videos depicting the graphic sexual exploitation of children.
In mid-October 2020, Lee used an internet-based application to communicate with an undercover officer, who Lee believed was a 13-year-old child. During the conversations, which were sexual in nature, Lee repeatedly asked the individual who he believed was 13 to send him nude photographs, while also sending multiple photographs of his penis to the undercover officer. On Oct. 17, 2020, Lee travelled from Trenton to a location in Somerset County where he believed the minor was located. Law enforcement identified Lee as he approached the location and arrested him.
The charges of attempted sex trafficking of a minor and attempted online enticement each carry a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum penalty of 30 years in prison. The charge of transferring obscene materials to a minor carries a maximum term of 10 years in prison. The charge of possession of child pornography carries a maximum penalty of 10 years in prison. Each count carries a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; detectives with the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael H. Robertson and Chief John W. Fodor, and officers with the Somerville, Bound Brook, and Hillsborough Police Departments with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Blount and Lee: Rahul Sharma Esq., Assistant Federal Public Defender, Newark
Sioux Falls Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 26, 2020, by U.S. District Judge Karen E. Schreier.
Rex Leon Burtis, age 57, was sentenced to 144 months in federal custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burtis was indicted by a federal grand jury on May 8, 2019. He was found guilty as a result of a federal trial in Sioux Falls on July 30, 2020.
The conviction stemmed from incidents beginning at an unknown date and continuing until about January 7, 2020, when Burtis and other co-conspirators intentionally conspired and obtained 500 grams or more of methamphetamine through the U.S. Postal Service and resold it to others in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Division of Criminal Investigation, the U.S. Postal Service, the Drug Enforcement Administration, the Sioux Falls Drug Task Force, and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Burtis was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport Man Sentenced to Federal Prison for Downloading and Receiving Child PornographyRead the Press Release
SHREVEPORT, La. - Charles Heath Thompson, 44, of Shreveport, was sentenced today for receipt of child pornography, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge S. Maurice Hicks, Jr. sentenced Thompson to 120 months (10 years) in prison followed by 5 years of supervised release. Thompson pleaded guilty to the charge on January 24, 2020.
In February 2015, federal agents with the Federal Bureau of Investigation (FBI) were monitoring a members-only, dark net website known as Playpen. The website was not accessible through traditional web browsers and the users had to utilize a specific website link and special browsers to access it. The Playpen website was identified as a website in which users would trade, possess, receive, and view child pornography.
According to information presented to the court, while monitoring the Playpen website, the FBI determined that a certain user had actively logged into the website on various days, including February 21, 2015. During their investigation, it was revealed that this particular user had logged into the Playpen website for approximately 11 hours and 23 minutes on that date and had downloaded and received child pornography images. The images reflected minors under the age of 12 years old being sexually abused. After further investigation, FBI agents learned that the user was Charles Heath Thompson and he had in fact received said images from this website on the internet.
The FBI and Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorneys J. Luke Walker and Tennille Gilreath prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Self-Styled Diamond and Gold Exporter Sentenced to Nine Years in Prison for Wire Fraud and Commodities FraudRead the Press Release
SAN JOSE—Fritz Kramer was sentenced today to 108 months in prison, and ordered to pay $7,956,267 in restitution, following convictions for wire fraud and commodities fraud, announced U.S. Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge Craig Fair. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
After a six-week trial, on March 19, 2019, a federal jury convicted Kramer, 72, with a last known residence in Norway, of eleven counts of wire fraud and one count of commodities fraud. Evidence at trial showed that Kramer fraudulently solicited funds from dozens of investors, several of whom resided in the Bay Area. Kramer told the investors that their money would be invested in an export project in which Kramer would export gold and diamonds from the Democratic Republic of Congo to Europe, Asia, and the United States. The evidence at trial showed that Kramer falsely promised investors returns of up to ten times the amount invested in as short a time as one month, though no investor ever received a return on their investment. Trial evidence demonstrated that numerous investors sent Kramer millions of dollars based upon Kramer’s false representations regarding the export project.
A federal grand jury indicted Kramer on July 21, 2016, charging him with eleven counts of wire fraud and one count of commodities fraud. The jury convicted Kramer of all counts.
In addition to the prison term and restitution order, Judge Davila ordered Kramer to serve a five-year term of supervised release for the commodities fraud count, and a three-year term of supervised release for the wire fraud counts. The terms of supervised release will run concurrently. The defendant is in custody and will immediately begin serving his sentence.
Assistant U.S. Attorneys Maia Perez and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney-Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Sanford Man Sentenced for Transferring Obscene Material to a MinorRead the Press Release
PORTLAND, Maine: A Sanford man was sentenced in federal court in Portland for transferring obscene material to a minor, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Jon D. Levy sentenced Dylan Neill, 39, to 41 months in prison and three years of supervised release. Neill pleaded guilty in November 2019.
According to court records, in October 2018, Neill used a social media application to send a series of videos and images to a minor under 16 years old. Several of the videos depicted Neill repeatedly penetrating the anus of an adult female with his fingers.
The Sanford Police Department and the FBI investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rhode Island Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for five bank robberies, including one that resulted in a high-speed chase.
Charles Lamont Wheeler, 47, was sentenced by U.S. District Court Judge Richard G. Stearns to 84 months in prison and three years of supervised release. In March 2020, Wheeler pleaded guilty to five counts of bank robbery. Co-defendant Dong Lee, 50, of Rhode Island, pleaded guilty on Oct. 13, 2020, and is scheduled to be sentenced on Feb. 16, 2021.
Between Sept. 8, 2018 and Sept. 14, 2018, five banks in the Greater Boston area were robbed. Based on the similarity of the robberies, and the descriptions of the robbers provided by bank tellers, it was determined that the same two individuals were responsible for these robberies. On Sept. 14, 2018, Wheeler and Lee robbed a branch of the Abington Bank in Avon. Later in the day, Wheeler and Lee robbed a branch of the Crescent Credit Union in Brockton and were both arrested following a high-speed car chase in Attleboro.
Following an interview and review of banks’ surveillance tapes, it was determined that Wheeler and Lee, were responsible for the robberies of the Santander Bank in Andover on Sept. 8, 2018; Berkshire Bank in Boston on Sept. 8, 2018; Rockland Trust in Braintree on Sept. 12, 2018; Abington Savings Bank in Avon on Sept. 14, 2018; and Crescent Credit Union in Brockton on Sept.14, 2018.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Brockton Police Chief Emanuel Gomes; Avon Police Chief Jeffrey J. Bukunt; Braintree Police Chief Mark W. Dubois; and Andover Police Chief Patrick Keefe made the announcement today. Assistant United States Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Report Detailing Government Efforts to Combat Robocalls Released to CongressRead the Press Release
The Department of Justice has announced that an interagency working group convened by Attorney General William P. Barr released a report to Congress on efforts to stop the scourge of illegal robocalls affecting the American public. The report − composed pursuant to the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (the TRACED Act) that President Trump signed into law in January 2020 − details the working group’s extensive work to end the harm caused by illegal robocalls, especially fraudulent robocalls that disproportionately affect elderly Americans, including through legal action, regulatory efforts, and private industry collaboration.
“The Department of Justice and its partners are committed to halting unlawful robocalls,” said Attorney General William P. Barr. “As this report illustrates, we are working hand-in-hand with our federal and state partners to successfully halt the flow of robocalls domestically and abroad. Americans should not have to put up with annoying and abusive robocalls, and the Department will continue to work to protect the American public, and particularly American seniors, from these illegal and harassing schemes.”
The report describes enforcement actions taken by the Department of Justice, including two civil actions filed in January 2020 against U.S.-based Voice over Internet Protocol (VoIP) companies. The cases alleged that two sets of defendants engaged in wire fraud schemes by knowingly serving as “gateway carriers” for fraudulent robocalls from foreign customers targeting Americans, many of whom are elderly or otherwise vulnerable. In both cases, the federal courts issued injunctions against the defendants, prohibiting them from carrying robocalls to U.S. consumers and selling U.S. phone numbers. In the months following the department’s action in these cases, the number of robocalls that reached U.S. consumers sharply declined.
The report also describes how the Federal Trade Commission (FTC) is using all of the tools at its disposal to fight illegal calls, including filing an action jointly with the Ohio Attorney General in December 2019 against VoIP service provider Globex for providing the means to make allegedly illegal robocalls. The action resulted in a settlement that requires Globex and its U.S.-based subsidiaries to pay $1.95 million and to abide by client screening and monitoring provisions. According to the report, since the National Do Not Call Registry began accepting registrations in 2003, the FTC has brought almost 150 enforcement actions against more than 500 companies and more than 400 individuals, and the FTC has collected over $160 million in equitable monetary relief and civil penalties.
The report further describes the actions of the Federal Communications Commission (FCC) to combat illegal robocalls. The actions include enforcement of laws that prohibit spoofing activities, which occur when a caller deliberately falsifies the information transmitted to caller ID displays to disguise the caller’s identity. FCC actions also include a June 2020 Notice of Apparent Liability proposing a forfeiture of $225,000,000 against persons allegedly responsible for making, in the first quarter of 2019 alone, approximately one billion spoofed robocalls that transmitted prerecorded messages falsely claiming affiliation with a major health insurance company.
The report highlights how the onset of the COVID-19 pandemic greatly increased the importance of the working group’s collaboration as illegal calls bombarded consumers with bogus coronavirus-related claims. As a result, in March 2020, the Department of Justice, the FCC, the FTC, and other members increased joint efforts to identify and halt fraudulent robocall campaigns that exploited the health crisis.
The report notes the important role played by state attorneys general, who serve the public by tracking down illegal robocallers and violators of telemarketing laws, often based on alerts from the private telecommunications industry. The report also highlights the important role that private industry groups can play in ending unlawful practices that negatively impact the American telecommunications infrastructure.
The Department of Justice’s work to combat robocalls falls within its broader efforts to combat elder fraud schemes, including those perpetrated by transnational criminal organizations. As part of this work, the department conducts outreach around the country to educate seniors about the various types of elder fraud schemes. With this information, seniors and other members of the public are better empowered to protect themselves and their loved ones.
If you or someone you know is 60-years-old or older and has been a victim of financial fraud, whether through robocalls or other schemes, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This hotline, managed by the Department of Justice’s Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step and can help authorities identify those who commit fraud and can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
Registered Nurse Who Stole Fentanyl and Tampered with Patients’ Medicine Sentenced to Two Years in Federal PrisonRead the Press Release
TEXARKANA, Texas – A 38-year-old Bowie County man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Clifford Russell Harris pleaded guilty on June 16, 2020, to tampering with a consumer product and was sentenced to 24 months in federal prison by U.S. District Judge Robert W. Schroeder III on Oct. 22, 2020.
According to information presented in court, Harris, who was a registered nurse at the time, broke into the secure drug storage area at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. Specifically, Harris extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Because the vials were labeled as fentanyl but did not contain fentanyl, Harris placed patients in danger of death or bodily injury. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk. In the five months leading to his fentanyl theft, Harris stole 600 vials of morphine and Demerol from Healthcare Express where he was entrusted with the receipt and storage of those controlled substances.
This case was investigated by the Texarkana, Texas, Police Department’s Special Investigations Unit with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
R.I. Man Admits to Fraudulently Seeking $4.7 Million in COVID-19 Stimulus LoansRead the Press Release
PROVIDENCE – A Middletown, R.I., man currently serving a term of federal supervised release having been convicted and incarcerated for robbing four banks, admitted in federal court in Providence today to fraudulently seeking more than $4.7 million in Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act was passed by Congress to assist businesses impacted by the pandemic.
Michael C. Moller, 41, admitted that he applied for and received nearly $600,000 in PPP loans he claimed were to be used to pay employees for a Fall River, MA, businesses he operated, “Top Notch Tile.” FBI and IRS Criminal Investigation agents determined that “Top Notch Tile” was not incorporated with the Massachusetts Secretary of State, nor could investigators locate any tax or bank records for the company.
Moller admitted that he filed a PPP loan application in his name, and that he caused other applications to be filed in the name of his father and his girlfriend’s brother. As a result of those fraudulent bank loan applications, financial institutions provided Moller a total of $599,251 dollars in stimulus PPP loans he was not entitled to receive.
Additionally, Moller admitted that acting alone, or with family members and associates, he caused eleven fraudulent PPP loan applications to be filed in the name of his girlfriend’s son. The money was to pay employees of “Alves Top Notch,” a Fall River-based business for which investigators could find no records. Among the eight applications were three nearly identical ones filed with different financial institutions, each seeking $734,300 in SBA guaranteed PPP loans. None of the eleven fraudulent applications filed in the name of Moller’s girlfriend’s son resulted in the disbursement of PPP loans.
Appearing today before U.S. District Court Judge Mary S. McElroy, Moller pleaded guilty to bank fraud, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.
Moller, who remains detained in federal custody, is scheduled to be sentenced on January 19, 2021.
According to court records, Moller was convicted in the District of Massachusetts in 2010 for fraud and received a sentence of twenty-four months of supervised release. During his term of supervised release, Moller was convicted of four counts of bank robbery and sentenced to 108 months imprisonment and three years of supervised release. His term of supervised release is scheduled to terminate in July 2022.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI and IRS-Criminal Investigation, with the assistance of the SBA Office of Inspector General and the FDIC Office of Inspector General.
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Pryor man arrested on allegations of first degree murderRead the Press Release
BILLINGS – A Pryor man was arrested Tuesday in Billings by the Billings Police Department on a federal arrest warrant alleging that he murdered a person with premeditation on the Crow Indian Reservation, U.S. Attorney Kurt Alme said today.
A criminal complaint unsealed Tuesday alleges Taylor Leigh Plainbull, 27, committed first degree murder.
Plainbull is scheduled to have an initial appearance on Wednesday in U.S. District Court.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
According to the criminal complaint and affidavit filed in support of the criminal complaint, Victim 1, an adult female, was driving from Pryor to Billings in a vehicle with Victim 2, and adult male, and Victim 3, a minor child. Plainbull had previously been in a relationship with Victim 1. Victim 1 was driving westbound on Highway 416, also known as Blue Creek Road, when she was passed by Plainbull, who was driving eastbound towards Pryor. Plainbull was driving what is believed to be a stolen truck. The owner of the stolen truck reported that it contained firearms, including a semiautomatic pistol.
According to the criminal complaint and affidavit, Plainbull turned around and chased after Victim 1, then passed her vehicle and stepped on the brakes, forcing Victim 1's vehicle off the road into a ditch. The weather was cold and snowy, and Victim 1 was unable to drive the car out of the ditch. Victim 1 locked the doors, while Victim 2 called 911, and at the same time Plainbull approached the car brandishing a pistol.
According to the criminal complaint and affidavit, Victim 2 reported hearing gunshots. Victim 2 sustained an injury to his forehead. Based on a preliminary examination of the scene, it appeared that Victim 1 was struck by at least one bullet. She was pronounced dead at the scene. Victim 3 exited the vehicle. Plainbull grabbed Victim 3 and drove away in the truck. Victim 3 was located later.
The FBI is investigating the case.
PACER case reference. 20-95.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Previously Convicted Felon Pleads Guilty to Possessing FirearmRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, Bilal Abdus-Salaam, 38, of Capitol Heights, a multi-time convicted felon, including for previous firearms offenses, was released from prison in June 2020. Less than a month later, on July 16, he entered two Federal Firearms Licensees in the Eastern District of Virginia. Abdus-Salaam was accompanied by his wife at both locations, and video surveillance showed Abdus-Salaam handling multiple firearms, to include a rifle and a pistol, that his wife went on to purchase.
On August 21, a search warrant was executed on his wife’s residence in Maryland, where Abdus-Salaam received mail and was observed on multiple occasions in late July and early August 2020. During the search, law enforcement recovered the two firearms purchased in Virginia in July 2020, along with an additional rifle, a rifle upper receiver, firearm magazines, ammunition, and various other items associated with firearms.
Abdus-Salaam faces a maximum penalty of 10 years in prison when sentenced on Feb. 23, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is 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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Special Assistant U.S. Attorney Rachel Roberts 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. 1:20-cr-244.
Pittsburgh Resident Indicted for Concealing Marriage in Order to Continue to Receive Social Security BenefitsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to her theft of Social Security benefits, United States Attorney Scott W. Brady announced today.
The three-count Indictment charges Jacqueline Waters, 55, with one count of theft of government property, one count of make a false statement to retain Social Security Income benefits, and one count of fraudulent concealment to retain Social Security Income benefits. According to the Indictment, between July 2004 and July 2018, Waters concealed from the Social Security Administration a common law marriage that would have affected her continued eligibility for Social Security Income benefits by repeatedly failing to disclose that she lived with her spouse, including during a Social Security redetermination on or about May 14, 2018.
The law provides for a maximum total sentence of not more than ten years in prison for theft of government property and five years in prison for the false statement and fraudulent concealment charges. The maximum fine per count is $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Social Security Administration – Office of Inspector General conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist sentenced for presenting forged prescriptions opioid and anti-malaria prescription drugsRead the Press Release
St. Louis, MO – Tamara Jo Nyachira, of Pittsburg, Kansas, was sentenced today to three years’ probation, a $5,000 fine and 100 hours of community service after pleading guilty to obtaining narcotic opioid prescription drugs with forged prescriptions before Chief United States District Judge Rodney W. Sippel.
According to her plea agreement, Nyachira was a pharmacist for a large pharmacy chain, and worked at various pharmacies throughout Missouri, including one in Farmington, Missouri. Nyachira admitted that she used a forged prescription to fraudulently obtain Codeine/butalbital/acetaminophen/caffeine (sometimes marketed as Fioricet® with Codeine), which is an opioid drug and Schedule III controlled substance.
Further, Nyachira admitted in her plea agreement that during March of 2020, Nyachira used several forged prescriptions to obtain two drugs, amoxicillin clavulanate potassium (sometimes marketed as Augmentin®) and hydroxychloroquine sulfate (sometime marketed as Plaquenil®). In her plea agreement, defendant admitted that she wanted to stockpile these drugs for herself and her family, and use them later if she or her family were directly exposed to or infected by the COVID-19 virus. Defendant admitted that her conduct was wrongful in that it helped create shortages of these drugs, which are often used by elderly or low-income patients with chronic conditions such as lupus or arthritis.
“Nyachira allegedly forged prescriptions and fraudulently obtained opioids and other drugs, thereby limiting availability of medications to patients legitimately reliant on these drugs,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We are dedicated to working with local, state, and federal officials to hold accountable individuals who engage in such illegal activities.”
This case was investigated by Pittsburg, Kansas Police Department, the Branson, Missouri Police Department, and the Farmington Police Department, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Missouri Pharmacy Board, the Eastern District of Missouri OPIOID Task Force, and the Eastern District of Missouri COVID-19 Task Force, a multi-agency working group committed to fighting COVID-19 frauds and scams that is operated under the leadership of the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
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Owner of Local Technical Training School Sentenced for Defrauding the VA out of almost $30 Million in G.I. Bill Education BenefitsRead the Press Release
Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – October 27, 2020
SAN DIEGO – Nimesh Shah, owner of Blue Star Learning, a technical training school in San Diego, was sentenced in federal court today to 45 months in custody as a result of a multi-year scheme that defrauded the Department of Veterans Affairs out of almost $30 million in Post-9/11 G.I. Bill benefits.
As laid out in Shah’s plea agreement and court documents, Shah took extraordinary efforts to deceive regulators from the Department of Veterans Affairs (VA) to ensure the school continued to receive VA funds. Shah provided the VA with false documents, invented fake students and created fake student files. He provided spreadsheets with false employment information and fraudulent contact information for purported graduates of the school and their made up employers. He purchased cellular telephones so that he and his employees could field VA regulator calls to purported employers of school graduates, and hired individuals overseas to pretend to be satisfied Blue Star Learning students in response to VA regulator emails. As laid out in court records, Shah’s scheme appears to be one of the largest Post-9/11 G.I. Bill fraud cases that has been prosecuted around the country.
Shah was also ordered to forfeit $3,076,361.77 and to pay the VA $29,350,999 in restitution. Shah’s wife Nidhi Shah, who was the vice president and director of education at the school, was sentenced to two years of probation as a result of lying to investigators in the course of the investigation into the school.
The Post-9/11 G.I. Bill provides veterans and other eligible individuals educational assistance, including tuition, housing costs, and other educational costs and fees. The VA pays tuition and fees directly to the school where the veteran is enrolled, and if the veteran is enrolled on more than a half time basis, the VA additionally provides a monthly housing allowance directly to the veteran, as well as money for books, supplies, equipment and other educational expenses. In October 2011, the VA began paying Post-9/11 G.I. Bill benefits for individuals pursuing non-institute of higher learning, non-degree programs, including non-accredited, non-college degree schools like Blue Star Learning.
In order to receive funds from the VA under the Post-9/11 G.I. Bill, Blue Star Learning was required to have at least 15 percent non-veterans for each course for which the VA was paying educational benefits - a rule called the “85/15 Rule.” As laid out in court records, the “85/15 Rule” is designed to minimize the risk that veterans’ benefits are wasted on educational programs of little value and to ensure that the cost of a course is acceptable and paid on the open market by non-veterans. As part of its yearly accreditation process, Blue Star Learning was also required to provide vocational attainment data for graduates of the school to VA regulators that corroborated employment statistics posted on the Blue Star website. This data was requested to ensure that individuals attending the school were getting jobs in the fields in which they were receiving training, as a measure of quality.
As part of his multi-year fraud scheme, between March 2016 and June 2019, Shah lied to the VA about the percentage of non-veteran students at the school, and made up fake non-veteran students – when in fact nearly all of their business came from veteran students. He also created spreadsheets of fraudulent employment data, including false emails, phone numbers, jobs and employers to support made-up graduate employment data. And he falsely claimed that all of the students at the school were enrolled full-time. Shah’s lies ensured that Blue Star Learning received millions of dollars in VA education benefits that the school was not entitled to.
Blue Star Learning, which charged up to $20,560 per course, had close to 100% veteran students. Shah nonetheless repeatedly misrepresented to the California State Approving Agency for Veterans Education (“CSAAVE”) and the VA that Blue Star Learning was in compliance with the “85/15 Rule.” Shah took extraordinary efforts to deceive VA regulators regarding non-veteran students at the school, including creating fake enrollment agreements and student files for the purported non-veterans in each program. Shah emailed the VA 48 fraudulent enrollment agreements for fictitious people he represented were non-veteran students at Blue Star Learning, complete with fraudulent dates of birth, social security numbers, addresses, phone numbers and emails for each fraudulent non-veteran student.
Shah knew that the vast majority of Blue Star Learning graduates did not obtain jobs in the fields in which they were purportedly receiving training, and that the employment statistics on Blue Star Learning’s website were false. Shah nonetheless submitted fraudulent spreadsheets to CSAAVE claiming that all of the Blue Star Learning students listed were employed in the informational technology field. On these spreadsheets, Shah provided fraudulent phone numbers, email addresses, employers, and employer contact information for each student. Shah then took his fraud a step further: Because he knew CSAAVE could contact the students/employers to verify the data submitted, Shah hired individuals to create the fraudulent email addresses for the Blue Star Learning students, and directed these individuals, who resided overseas, to answer emails received at the fraudulent email addresses pretending to be satisfied Blue Star Learning graduates working in the information technology field. Shah additionally created 30 fictitious companies that he listed as the employers on the fraudulent spreadsheets, and hired individuals to create fraudulent email addresses and domain names for each fictitious company. Shah directed a Blue Star Learning employee to purchase 30 cellular telephones, one for each fictitious employer, and had employees of Blue Star Learning create voicemail greetings on each cellular telephone so that it would appear that the fraudulent businesses were legitimate if CSAAVE called to check.
“This was an extraordinary fraud in terms of the elaborate deception, the years-long duration and the amount of money involved,” said U.S. Attorney Robert Brewer. “This defendant knowingly violated the rules to enrich himself, and for that he will go to prison.” Brewer commended prosecutor Michelle Wasserman and agents from the Department of Veterans Affairs Office of Inspector General and Federal Bureau of Investigation for excellent work on this case.
“The FBI worked with our partners at the VA-OIG to investigate this elaborate fraud scheme resulting in a loss of over $29 million dollars,” said FBI Special Agent in Charge Suzanne Turner. “Fraud affecting educational benefits meant for our military veterans will not be tolerated. Today, justice was served against the Shahs, the owners of Blue Star Learning, who put greed and deceit above the men and women of our U.S. military.”
Rebeccalynn Staples, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Western Field Office, stated, “This case demonstrates VA OIG’s commitment to aggressively pursuing individuals and schools who seek to exploit the education benefits earned by veterans. VA OIG will continue to protect the integrity of the VA education benefits program by identifying unscrupulous schools who take advantage of veteran students. VA OIG urges anyone with knowledge of possible fraud against VA to contact the VA OIG Hotline Division at 1-800-488-8244.”
As a result of Shah’s fraud, the VA issued over $11 million in tuition payments to Blue Star Learning, and over $18 million in housing allowances and stipends. In total, as a result of Shah’s fraud, the VA lost $29,350,999.
DEFENDANT Case Number 19CR4551-JAH; 19CR4550-JAH
Nimesh Shah Age: 37 San Diego, CA
Nidhi Shah Age: 35 San Diego, CA
SUMMARY OF CHARGES
Nimesh Shah: Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
Nidhi Shah: False Statement – Title 18 U.S.C., Section 1001
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Department of Veterans Affairs Office of Inspector General
Federal Bureau of Investigation
One More Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MARVEL FRANCOIS (“FRANCOIS”), age 51, of Houma, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty plea, on May 17, 2020, FRANCOIS, along with participants Damian Labeaud (“Labeaud”), Bernell Gale (“Gale”), Troy Smith (“Smith”), and another passenger, participated in a staged accident in the vicinity of Louisa Street and Chickasaw Street. Labeaud fled the scene. FRANCOIS falsely reported to the NOPD that she had been driving and that the tractor-trailer had struck her vehicle. Labeaud, Gale, and Smith were also charged and already pled guilty.
According to documents filed in federal court, the passengers were referred to attorneys who paid Labeaud to stage the accidents. In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits.
FRANCOIS faces a maximum sentence of five (5) years. Upon release from prison, FRANCOIS also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for February 24, 2021, before U.S. District Judge Lance M. Africk. Gale and Smith are also set to be sentenced before Judge Africk on February 10, 2021. Damian Labeaud’s sentencing is set for February 18, 2021, before U.S. District Judge Eldon E. Fallon.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.
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Okemah Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Mike Avery Thompson, Jr., age 30, of Okemah, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 27, 2020, within the Eastern District of Oklahoma, in Indian Country, Mike Avery Thompson, Jr., an Indian, did assault L.H. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States at the plea hearing.
North Dakota Man Is Sentenced to Prison for Investment SchemeRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Mark Nicholas Pyatt, 44, of North Dakota, was sentenced to 37 months in prison for an investment scheme that defrauded victims out of more than $200,000. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr., also ordered Pyatt to serve three years under court supervision after his release from imprisonment, and explained that a forthcoming order will obligate Pyatt to pay approximately $274,506 to his victims as restitution. Pyatt previously pleaded guilty to wire fraud.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Sheriff Greg Christopher of the Haywood County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and court proceedings, beginning as early as October 2017 and continuing through at least February 2019, Pyatt, often using the alias Daniel G. Randolph, solicited friends and acquaintances to invest their money in a “communal account,” or “fund,” held by his company, Winston Reed Investments, LLC (WRI). Court documents show that Pyatt represented to his victim-investors that he had made significant amounts of money through his own investing and day trading activities, and that he wanted to invest the victims’ money using a similar strategy so that they could experience the same wealth that he enjoyed.
According to court records, in order to induce the victims to part with their money, Pyatt made a number of false and fraudulent representations. For example, Pyatt told the investors that he would make trades with the investors’ money on a daily basis, that he would be trading futures and “forex,” and that he would specialize in energy-related stocks. Pyatt also falsely promised large returns on investments, assuring victims that the “low average expected return on investments” would be 15% per month, with a goal of a return of 100% in three to four months. Pyatt represented to his victims that he would receive a fee for WRI’s services of just 10% of all gains, and that he would not charge his investors any fees if he did not make a profit.
According to court records, in furtherance of the fraud, Pyatt made false misrepresentations to victim-investors about the fund’s performance. For example, for months, Pyatt regularly provided his investors with false updates that purported to describe his trading activity and the considerable positive returns he was earning on their investments. Then, in February 2019, after reporting substantial monthly gains to his investors for more than a year, Pyatt notified his investors by email that a “complete and catastrophic” loss had occurred, and that their money was gone. Pyatt falsely claimed that he was investigating the loss with the assistance of a forensics firm, and told his investors that the loss was due to a technical oversight or failure by the brokerage firm holding the investment account. Court records show that all of these representations were false, and, in reality, the money was gone because Pyatt spent it.
Contrary to the promises he made to victim-investors, Pyatt simply stole the vast majority of the investors’ money. Specifically, Pyatt misappropriated over $100,000 to pay for personal expenses, including to buy jewelry, groceries, cigars, and a Chevrolet Corvette. Pyatt also withdrew tens of thousands of dollars in cash, and made several Ponzi-style payments to his investors, falsely implying that the returned funds were trading profits.
During a substantial portion of the scheme, Pyatt resided in Haywood County and targeted local victims. In total, Pyatt stole well over $200,000 from his victim investors, many of whom were at, or near, retirement age.
In making today’s announcement, U.S. Attorney Murray commended the Haywood County Sheriff’s Office, the SBI, and HSI for their investigation of the criminal case, and thanked the Commodity Futures Trading Commission (CFTC) and the U.S. Securities & Exchange Commission (SEC) for their invaluable assistance.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
North Carolina Highway Patrolman Named International Association of Chiefs of Police and Motorola Solutions 2019 Trooper of the YearRead the Press Release
RALEIGH, N.C. – Yesterday, the International Association of Chiefs of Police (IACP) and Motorola Solutions named Trooper Daniel Harrell from the North Carolina State Highway Patrol as the IACP/Motorola Solutions 2019 Trooper of the Year. He was chosen from among four very worthy finalists serving state and provisional agencies in the United States and Canada.
In the announcement, the IACP and Motorola described Trooper Harrell’s bravery and dedication to serving the people of North Carolina:
“On Monday January 14, 2019, at approximately 5:21 p.m., Trooper Daniel Harrell, a five-year veteran of the North Carolina State Highway Patrol, was patrolling his assigned area of Wilson County. As Trooper Harrell was finishing a traffic stop, he observed a vehicle traveling north bound on US301 improperly towing another vehicle. Trooper Harrell conducted a traffic stop, made contact with the driver and passenger, and informed the driver of the infraction. Both the driver and passenger were unable to produce their licenses or identification and drove off in an attempt to escape Trooper Harrell. A short chase ensued, then the driver pulled over. As Trooper Harrell was preparing to exit his patrol car, the driver leaned out of his vehicle and opened fire. The suspect fired approximately four shots, striking Trooper Harrell twice in the face. Trooper Harrell was able to immediately return fire and continued to stay engaged while providing vital information to the communications center. The suspect then drove away and Trooper Harrell continued to pursue the suspect. After a short chase, the suspect stopped to disconnect the towed vehicle. Trooper Harrell engaged the suspect with gunfire, however the suspect drove off again. The suspect then realized that they could not outrun Trooper Harrell. At this time, the suspect made a U-turn with the vehicle and collided head on with Trooper Harrell’s vehicle. The collision disabled Trooper Harrell’s patrol car. Despite this, Trooper Harrell continued to engage the suspect with gunfire again before the suspect was able to flee on foot. Thanks to the description Trooper Harrell provided, the involved suspects were located and arrested the night of the incident and no further persons were injured.”
United States Attorney Higdon commented: “Trooper Daniel Harrell is truly a hero; a dedicated public servant who laid his life on the line to enforce the Rule of Law and to protect the citizens of North Carolina. He represents the selfless men and women of the North Carolina Highway Patrol and law enforcement agencies all across North Carolina who give their all to keep our communities safe every day. The United States Department of Justice and the United States Attorney’s Office congratulate Trooper Harrell as he receives this great honor and we thank him for his service every day.”
The individual who attempted to kill Trooper Harrell was prosecuted for firearms violations here in the United States District Court for the Eastern District of North Carolina. He received a sentence of ten years. See here for more details. Charges related to the attempted murder of Trooper Harrell are pending the North Carolina state court system.
A copy of this press release is located on our website. Related court documents and information are located 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-00304-D.
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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.
North Carolina Couple Indicted for Failing to Pay Employment Taxes and Failure to File Tax ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Greensboro, North Carolina, returned an indictment today, charging a North Carolina couple with federal employment tax and individual income tax violations, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
As alleged in the indictment, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated an orthopedic practice that the indictment refers to as “Sandhills Orthopaedic.” The indictment further alleges that his wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations, including payroll and employment tax obligations. Susan Rice also purportedly owned and operated a truffle business.
The Rices have been charged with a variety of tax offenses, including conspiring to not pay any taxes on their business and personal income and to defraud the United States by failing to pay employment taxes owed by Sandhills Orthopaedic. Between 2007 and 2014, the Rices allegedly withheld employment taxes from Sandhills Orthopaedic’s employees, but failed to pay over approximately $580,000 in social security and other tax withholdings to the IRS. The indictment also alleges that the Rices did not file individual income tax returns for the 2014 through 2016 tax years, despite earning gross income in excess of the filing threshold, and that James Rice did not file corporate tax returns for an entity over which he was president for the 2014 through 2017 tax years.
If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count. They also face one year in prison for each of the charges relating to failing to file individual and corporate tax returns. They are also subject to additional monetary penalties, supervised release, and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Michael Jones of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Couple Indicted for Failing to Pay Employment Taxes and Failure to File Tax ReturnsRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment today, charging a North Carolina couple with federal employment tax and individual income tax violations, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
As alleged in the indictment, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated an orthopedic practice that the indictment refers to as “Sandhills Orthopaedic.” The indictment further alleges that his wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations, including payroll and employment tax obligations. Susan Rice also purportedly owned and operated a truffle business.
The Rices have been charged with a variety of tax offenses, including conspiring to not pay any taxes on their business and personal income and to defraud the United States by failing to pay employment taxes owed by Sandhills Orthopaedic. Between 2007 and 2014, the Rices allegedly withheld employment taxes from Sandhills Orthopaedic’s employees, but failed to pay over approximately $580,000 in social security and other tax withholdings to the IRS. The indictment also alleges that the Rices did not file individual income tax returns for the 2014 through 2016 tax years, despite earning gross income in excess of the filing threshold, and that James Rice did not file corporate tax returns for an entity over which he was president for the 2014 through 2017 tax years.
If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count. They also face one year in prison for each of the charges relating to failing to file individual and corporate tax returns. They are also subject to additional monetary penalties, supervised release, and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Michael Jones of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Newport Resident Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE – A 39 year-old Newport man has been ordered detained following his arrest this morning on federal child pornography charges.
Craig M. Mulvey was arrested as Homeland Security Investigations (HSI), members of the Rhode Island State Police Internet Crimes Against Children Task Force, and Newport Police executed a court-authorized search of the Newport residence where Mulvey lives. During the search, it is alleged that numerous images and videos containing child pornography were located on a laptop belonging to Mulvey.
Additionally, in a segregated compartment in a nightstand located in Mulvey’s bedroom, investigators located two pairs of soiled little girl’s underwear and a thumb drive.
According to court documents, in February 2020, HSI agents in Providence received information from HSI agents in Ottawa that an image of child pornography had been uploaded to a social media platform from an Internet address later determined to belong to the Newport residence where Mulvey resides. In October, HSI determined that a login used to access and upload the image of child pornography to the social media platform allegedly belonged to Mulvey.
Mulvey appeared this afternoon before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained on a criminal complaint charging him with distribution of child pornography and possessing and accessing child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge David Magdycz, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Newport Police Chief Gary T. Silva.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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New York City Man Going to Prison for Cyberstalking and Posting Naked Pictures of Victim OnlineRead 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 Charles Regalbuto, 27, of New York City, was sentenced to serve 37 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that beginning in October 2014, the defendant sent multiple text messages to the Victim, threatening to publish naked photographs of the Victim on various social media websites. In one text message, Regalbuto stated: "I'll ruin your life the way you ruined mine." The defendant also sent a threatening text stating that he would kill the Victim and himself.
In 2017, without permission to do so, Regalbuto posted the naked photographs of the Victim on social media sites, resulting in multiple internet users seeing the photos along with the Victim’s name associated with the photos. Several individuals contacted the Victim after seeing the photos and asked if the Victim was the person in the photos, causing the Victim emotional distress.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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New Kensington Man Indicted for Misappropriating VA Beneficiary FundsRead the Press Release
PITTSBURGH, PA - A resident of New Kensington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of U.S. Department of Veterans Affairs ("VA") beneficiary funds, United States Attorney Scott W. Brady announced today.
The one-count Indictment charges Andrew Ziacik, 57, as the sole defendant. According to the Indictment, Ziacik was appointed as a Federal Fiduciary for a VA beneficiary and, as such, was responsible for receiving the beneficiary’s VA income and ensuring the beneficiary’s debts were paid. The Indictment further charges that Ziacik engaged in a pattern of conduct between July 2013 and late 2017 that violated his Fiduciary Agreement, including by making approximately $25,000 in unauthorized ATM cash withdrawals from the beneficiary’s VA bank account and transferring approximately $135,000 of the beneficiary’s VA benefits to Ziacik’s personal bank accounts. In addition, the Indictment alleges that the defendant misused the beneficiary’s VA benefits for his personal benefit including through financing payments made to Harley Davidson, the purchase of a diamond ring, and the purchase of a GMC truck, all in violation of Ziacik’s Fiduciary Agreement. Moreover, the Indictment also alleges that Ziacik failed to maintain accurate records and receipts related to the disposition of the beneficiary’s VA benefits, as required. and failed to provide complete and accurate records in response to a formal accounting initiated by the VA.
The law provides for a maximum total sentence of not more than five (5) years in prison, a fine of not more than $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 Eric G. Olshan is prosecuting this case on behalf of the government. The U.S. Department of Veterans Affairs Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Natchez Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
Jackson, Miss – Damien Hayes, 25, of Natchez, pled guilty today before Senior U.S. District Judge David Bramlette III to possessing a stolen firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
On March 22, 2019, ATF agents and state and local law enforcement officers were conducting a detail in Natchez and the surrounding area in response to complaints of criminal activity. Officers smelled burning marijuana and approached Damien Hayes who tossed a marijuana blunt onto the ground. When officers frisked Hayes, they discovered a .45 caliber pistol tucked into his pants. Further investigation revealed the firearm had been stolen from a local firearms dealer. On January 29, 2020, Hayes was indicted for possession of a stolen firearm.
Hayes will be sentenced by Judge Bramlette on January 26, 2021 at 10:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Natchez Police Department. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
NXIVM Leader Keith Raniere Sentenced to 120 Years in Prison for Racketeering and Sex Trafficking OffensesRead the Press Release
Keith Raniere, the founder and leader of Nxivm, was sentenced today to 120 years in prison by United States District Judge Nicholas G. Garaufis in federal court in Brooklyn. Raniere was convicted by a federal jury in June 2019 of racketeering, racketeering conspiracy, sex trafficking, attempted sex trafficking, sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy. The Court also imposed a fine of $1,750,000. At the sentencing hearing, the Court heard victim impact statements from 15 individuals, including “Camila,” the victim who was sexually exploited by Raniere when she was 15 years old. A hearing on victim restitution will be held at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI), announced the sentence.
“The 120-year sentence imposed on Keith Raniere today is a measure of his appalling crimes committed over a decade,” stated Acting United States Attorney DuCharme. “Raniere exploited and abused his victims emotionally, physically and sexually for his personal gratification. It is my hope that today’s sentence brings closure to the victims and their families.” Mr. DuCharme extended his grateful appreciation to the Department of Homeland Security, Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their valuable assistance during the investigation and prosecution.
“Raniere’s reign of control over the women he scarred, both physically and emotionally, is the making of a horror story. It is inconceivable to think of the sexual exploitation, abuse, seclusion, and mind control his victims suffered—at his direction. Today the judge has given him 120 years to think about whether or not the torture he inflicted on others for more than a decade, and the distress he brought to their families, was worth it in the end,” stated FBI Assistant Director-in-Charge Sweeney.
“Sexual exploitation of children and women is among the most reprehensible and vile forms of crime,” stated IRS-CI Special Agent-in-Charge Larsen. “While Keith Raniere’s sentence cannot erase the pain his victims have endured, I hope it provides an opportunity for healing and a path forward. Today’s sentencing should be a warning for criminals around the world. Regardless of the illegal enterprise and whether the profits are tangible or not, IRS-CI will decode illicit schemes and hold criminals accountable for the pain, suffering and financial abuse of their victims.”
Raniere led a criminal racketeering enterprise and relied on an “inner circle” of co-conspirators to carry out his orders. The purpose of the enterprise was to promote Raniere and to recruit individuals into purported self-help organizations that Raniere founded, including Nxivm and DOS (“Dominus Obsequious Sororium”). Raniere and his co-conspirators committed a wide range of criminal activity, including sex trafficking, forced labor, alien smuggling, wire fraud and obstruction of justice. Specifically, Raniere sexually exploited “Camila,” then a 15-year-old child, and took photographs of his abuse. At the time, Raniere was 45 years old. Raniere and his co-conspirators also trafficked “Daniela” for labor and services and confined her to a room for nearly two years in an attempt to force Daniela to do work for him. Daniela was told that if she left the room, she would be sent to Mexico without any identification documents. Daniela went months without human contact and was denied prompt medical care. During this time, Daniela wrote hundreds of letters to Raniere pleading to be released from her confinement. Daniela testified at trial that while confined to the room, she contemplated suicide.
In late 2015, Raniere created and led DOS, a secret organization in which women were recruited under the false pretense of joining a women-only mentorship group, later discovering that they had taken “vows of obedience” to women who were “slaves” to Raniere. Prospective DOS victims were required to provide “collateral”—including damaging confessions about themselves and loved ones (truthful or not), rights to financial assets, and sexually explicit photographs and videos—to prevent them from leaving the group or disclosing its existence to others. Raniere required DOS “slaves” to take nude photographs, perform labor, and in some cases, to engage in sex acts with him. As proved at trial, the victims “Nicole” and “Jay” were among the DOS victims directed to have sex with Raniere.
Each of Raniere’s co-defendants previously pleaded guilty. On September 2020, Clare Bronfman was sentenced to 81 months’ imprisonment after having been convicted of conspiracy to conceal and harbor aliens for financial gain and fraudulent use of personal identification information. The remaining co-defendants are awaiting sentencing. On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy. On March 25, 2019, Lauren Salzman, a first-line “master” in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 8, 2019, Allison Mack, another first-line “master” in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Mark J. Lesko and Kevin Trowel are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 60
Waterford, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Mescalero Apache man sentenced to 22 years in prison for abusive sexual contactRead the Press Release
ALBUQUERQUE, N.M. – David Joe Melendrez, 56, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced in federal court in Albuquerque today to 22 years in prison for abusive sexual contact.
In the plea agreement, Melendrez acknowledged sexually abusing multiple children, ranging in age from seven to 14, over the course of several years. The abuse took place on the Mescalero Apache Indian Reservation and all of the victims were members of the Mescalero Apache Tribe.
Upon his release from prison, Melendrez will be subject to 10 years of supervised release.
The FBI and the Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Marisa A. Ong prosecuted the case.
Meridian Man Sentenced to Five Years in Prison Under Project EJECT for Possession of a Firearm in a School ZoneRead the Press Release
Jackson, Miss. – Tirale Orlando Reed, 38, of Meridian, Mississippi, was sentenced today by Senior U.S. District Court Judge David C. Bramlette III to 60 months in prison, followed by five years of supervised release, for possession of a firearm in a school zone, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 15, 2016, at an apartment complex in Meridian, a confrontation between Reed and another individual turned violent, and Reed shot and killed the individual. Reed fled the scene and, while passing through the grounds of a school, threw his .45 caliber handgun into a creek bed near 44th Avenue. Reed was subsequently charged with murder in the Circuit Court of Lauderdale County, Mississippi, which is still pending.
Reed was charged in a federal Criminal Information with possession of a firearm in a school zone. He pled guilty before Judge Bramlette on August 4, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Memphis Man Pleads Guilty to Interstate Sex TraffickingRead the Press Release
Jackson, Miss. – Terrance Braden, 41, of Memphis, Tennessee, pled guilty on October 27, 2020 before Senior U.S. District Judge Davie Bramlette III to transporting women from Memphis to Jackson to engage in sex with men for money, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On June 25, 2020, Braden drove women from Memphis, Tennessee, to Jackson, Mississippi, and immediately posted advertisements via the Internet of such women. An undercover law enforcement officer posing as a “customer” arranged a date with one of the women on June 26, 2020, at a local motel in Jackson. The officer, along with other law enforcement officers, arrived at the hotel and arrested Terrence Braden and two other women for prostitution. Further investigation revealed that Braden was, in fact, the pimp transporting the women for his prostitution business.
Braden will be sentenced by Judge Bramlette on February 2, 2021 and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson Division of the Federal Bureau Investigation and the Hinds County Sheriff Department investigated this case. Assistant United States Attorney Glenda R. Haynes is prosecuting the case.
Man Charged with Federal Firearm Violations in Connection with Multiple Gun Purchases in GreensboroRead the Press Release
GREENSBORO, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that DANNY LEE MOCK, JR. was charged in a 10-count indictment with violations of federal firearms laws at Title 18, United States Code, Sections 922(a)(6) and 924(a)(1)(A).
The Indictment alleges that on five occasions between September 24, 2019, and December 14, 2019, MOCK, JR., age 30, of High Point, NC, made false representations in connection with the purchase of firearms from federally licensed firearm dealers in Greensboro. For each purchase, MOCK, JR. knowingly identified himself as the actual transferee/purchaser of the firearm and executed ATF Form 4473, Firearms Transaction Record, in which he affirmatively stated that he was the actual transferee/buyer, when in fact he was purchasing the firearms for other people.
“Federal gun laws preserve our right to bear arms by keeping firearms out of the wrong hands,” said U.S. Attorney Martin. “We will aggressively prosecute these so-called ‘lie and buy’ cases, in which someone claims to be the buyer in order to conceal the identity of the real purchaser, who is generally someone prohibited by law from having a firearm.”
If convicted under any of the five counts alleging violations of Title 18, United States Code, Sections 922(a)(6), MOCK, JR. may be sentenced to imprisonment for not more than 10 years, a fine not to exceed $250,000.00, or both, and 3 years of supervised release. If convicted under any of the five counts alleging violations of Title 18, United States Code, Sections 924(a)(1)(A), MOCK, JR. may be sentenced to imprisonment for not more than 5 years, a fine not to exceed $250,000.00, or both, and not more than 1 year of supervised release.
An indictment is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The case has been investigated by the Guilford County Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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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Man Charged with Burglary and Domestic Violence in Indian CountryRead the Press Release
A Tulsa man made an initial appearance this week in federal court after being charged with Burglary in the First Degree in Indian Country and Strangulation of a Dating Partner in Indian Country, announced U.S. Attorney Trent Shores.
Tyler Austin McGhee, 26, was arrested on Oct. 23 by Broken Arrow Police officers after he entered the home of his former girlfriend and allegedly assaulted her.
According to the complaint, the victim stated that McGhee physically assaulted her by putting her in a headlock and attempting to cover her mouth with duct tape. She also stated that he later sexually assaulted her. The victim tried to calm McGhee down and eventually found an opportunity to text a friend to call 911 as she thought McGhee might kill her if she attempted to do so herself. When officers arrived, they found McGhee in the apartment and his backpack under the bed, which allegedly contained black duct tape, black latex gloves, handcuffs, a knife, condoms, and sexual lubricant. When officers questioned McGhee, he denied any assault to the victim and claimed he just wanted to talk to her.
“Survivors of domestic violence are a resilient group. Tragically, we’ve seen domestic violence cases on the rise during this global pandemic. These are often challenging cases to present, but this United States Attorney’s Office will not shy away from tough cases nor miss an opportunity to give a voice to victims of domestic violence,” said U.S. Attorney Trent Shores. “These allegations in the Complaint will receive the full attention and resources of my office as we seek to hold Tyler McGhee accountable for his alleged criminal acts.”
A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The FBI and Broken Arrow Police Department are conducting the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Maine Man Sentenced for Federal Hate Crime ConvictionsRead the Press Release
The Justice Department today announced the sentencing of Maurice Diggins, 36, of Biddeford, Maine, in federal court for his role in a series of racially motivated assaults against black men in Maine.
Diggins was sentenced by U.S. District Judge Nancy Torresen to 10 years in federal prison, followed by three years of supervised release. On March 10, 2020, following a three-day trial, a jury convicted Diggins of conspiring to commit hate crimes and of actually committing hate crimes.
“The defendant committed a series of unprovoked violent attacks on innocent men because of those men’s race,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Today’s sentence, and the jury’s previous verdict in this case, demonstrate that the legal system will not tolerate such acts of racist violence. The Department of Justice will continue to prosecute race-based violations of our federal civil rights laws.”
“In addition to doing grievous harm to individuals, hate crimes engender fear in communities,” said U.S. Attorney Halsey B. Frank of the District of Maine. “Violence has no place in Maine, and that is especially true of violence that is motivated by hate. Maine citizens, regardless of skin color, ethnicity, or sexual orientation have a right to live their lives free of harassment, much less physical violence. Today’s sentencing should make clear that we have no tolerance for hate crimes. I would like to thank the victims for their courage to confront their assailant, and our law enforcement officers at both the state and federal level who helped prosecute this important case.”
“Mr. Diggins’ actions were cowardly and racially motivated. It is our hope that today’s sentence will help his victims and their families with the healing process while also making it crystal clear that we will not stand for violence, especially borne from hate,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Rest assured, the FBI and our law enforcement partners will aggressively pursue anyone who commits these violent acts to ensure the civil rights of all Americans are protected.”
According to evidence presented at trial, on April 15, 2018, defendant Diggins and his nephew, Dusty Leo (who previously pled guilty in connection with this case), committed two separate racially motivated assaults, one in Portland and one in Biddeford. In the Portland assault, which occurred just before 1:00 a.m., Diggins attacked a black Sudanese male without provocation, breaking the victim’s jaw. During that same incident, Diggins and Leo assaulted another black man who was standing nearby. Witnesses heard Diggins and Leo using racial epithets during the incidents.
In the second incident, which occurred approximately an hour later and approximately 20 miles away in Biddeford, defendant Diggins and Leo drove in Leo’s truck into the parking lot of a convenience store, where Diggins got out of the truck and approached a black man who was walking toward the store’s entrance. Diggins directed a racial slur at the man and distracted him while Leo got out of the truck and sucker-punched him in the jaw, knocking him to the ground. The unprovoked attack broke the victim’s jaw in several places.
The Biddeford Police Department and the FBI investigated the case. The case was prosecuted by Assistant U.S. Attorney Sheila Sawyer and Civil Rights Division Trial Attorney Tim Visser.
Latin King Gang Member Sentenced to Life in Prison for Racketeering Conspiracy including Two Murders and Drug ConspiracyRead the Press Release
HAMMOND-Jeremiah Farmer, 39, of Hammond, Indiana, and a member of various Indiana factions of the Chicago-based Latin Kings, was sentenced by U.S. District Court Judge Philip P. Simon to life in prison following his conviction at trial in July 2019 of conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and to distribute cocaine, marijuana, and alprazolam, announced U.S. Attorney Kirsch.
At trial, the jury found that, as part of the racketeering conspiracy, on June 25, 1999, Farmer murdered Marion Lowry, 74, and Harvey Siegers, 67, by beating each to death with a hammer at their Hammond business, Calumet Auto Rebuilders. The jury also found that Farmer conspired to distribute or possess with intent to distribute five kilograms or more of cocaine as part of the racketeering conspiracy. The jury also found that Farmer conspired to distribute or possess with intent to distribute 100 kilograms or more of marijuana as part of the drug conspiracy.
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 1999. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
"The defendant terrorized the community through his violent actions and today’s sentence ensures an extremely dangerous individual has been taken off the streets,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This is an example of how the collective efforts of the FBI and our law enforcement partners impact crime in our neighborhoods and remain a top priority.”
“This defendant is responsible for terrorizing the community of Hammond with narcotics trafficking and violence,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Strong law enforcement partnerships among local, state and federal agencies allow us to focus on the most violent offenders.”
The investigation was conducted under the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.
The agencies involved in these investigative efforts are the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King case was prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick and Nicholas J. Padilla.
Justice Department Files Enforcement Action Against Bain & Company as Part of Its Investigation into Visa Inc's Proposed Acquisition of Plaid IncRead the Press Release
Today, the Department of Justice filed a petition in the U.S. District Court for the District of Massachusetts to enforce Bain & Company’s compliance with the department’s Civil Investigative Demand (CID).
The department issued the CID to third-party Bain as part of its investigation of Visa, Inc.’s proposed acquisition of Plaid Inc. As alleged in the petition, Bain, a consulting firm, has withheld important documents demanded under the CID, asserting unsupported claims of privilege over the documents, thereby stymying the Antitrust Division’s investigation.
“American consumers rely on the Antitrust Division to investigate mergers promptly and thoroughly,” said Assistant Attorney for the Antitrust Division Makan Delrahim. “Collecting relevant third-party documents and data is essential to the division’s ability to analyze these transactions. Too often, third parties seek to flout these requirements, hoping the division will lose interest and focus its enforcement efforts elsewhere. The division’s petition against Bain is aimed at securing relevant documents and making clear that the division will hold third parties to the deadlines and specifications in the CIDs we issue. Third parties, like Bain, must comply fully and expeditiously with our civil investigative demands and provide the documents and data we need to discharge our duties and serve the American people.”
On June 11, 2020, the division issued Bain a CID requiring the company to answer interrogatories and produce documentary material, including documents that discuss Visa’s pricing strategy and competition against other debit card networks that may be important to the division’s analysis of the proposed acquisition’s effects. The petition alleges that Bain has refused to produce these documents, claiming a seemingly blanket privilege over almost all of them.
The division seeks to enforce the CID under Section 1314(a) of the Antitrust Civil Process Act. Through filing the petition, the department seeks to enforce Bain’s CID compliance to support its investigation of Visa’s proposed acquisition of Plaid for the benefit of American consumers and competition.
Bain & Company, Inc. is a global management consultancy headquartered in Boston, Massachusetts. Visa, Inc., a global payments company that operates the largest debit network in the United States, is incorporated in Delaware and headquartered in Foster City, California. Plaid Inc. is a financial services company incorporated in Delaware and headquartered in San Francisco, California.
Jury Convicts Springfield Man of Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was convicted by a federal trial jury today of illegally possessing a firearm.
Roy L. Norey, 38, was found guilty of being a felon in possession of a firearm and ammunition.
Evidence during the trial indicated that Norey was in possession of an AA Arms 9mm semi-automatic pistol and ammunition on Jan. 3, 2019. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Norey has prior felony convictions for manufacture/delivery of a controlled substance, possession of a controlled substance with intent to deliver, possession of a controlled substance, and possession of a firearm with a defaced serial number.
Springfield police officers executed a search warrant at Norey’s apartment on Jan. 3, 2019, as part of a drug-trafficking investigation. Officers found the loaded pistol in the top drawer of a nightstand and a shoebox on his bed that contained both .38 and .40-caliber ammunition. Officers also found a digital scale and baggies, consistent with drug trafficking, and $16,000.
At the time of the search, Norey was driving a Chrysler 300 on West Battlefield and was stopped by a Springfield police officer because he did not have a valid driver’s license.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for 55 minutes before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 26.
Under federal statutes, Norey is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by Springfield, Mo. Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Irvine Man Charged in Investment Scheme that Took in Millions with False Promises of Solar Panels Enhanced with NanotechnologyRead the Press Release
SANTA ANA, California – Federal prosecutors today filed criminal charges against an Irvine man whose company used high-pressure sales tactics to raise more than $9.5 million with bogus claims that the outfit’s solar panels utilized nanotechnology to generate electricity three times more efficiently than traditional solar panels.
Michael James Sweaney, 56, the founder and owner of Nanotech Engineering, Inc., was charged with one count of mail fraud in a criminal information filed in United States District Court. In a plea agreement also filed today, Sweaney, who held the title of chief financial officer at Nanotech, agreed to plead guilty to the mail fraud charge.
Nanotech, which had facilities in Irvine and Loveland, Colorado, used a team of salespeople to cold-call potential investors and pitch them with bogus claims the company had developed a compact “Nanopanel” with patent-pending nanotechnology that was one-third the cost of similar devices and would soon dominate the solar panel market. But, as Sweaney admitted in the plea agreement, the Nanopanel simply did not exist.
As part of the scheme that started just over three years ago and continued until the end of 2019, Nanotech and its salesforce not only lied to investors, it also failed to disclose pertinent facts, which included identifying the CFO as “Michael Hatton” to conceal that Sweaney had previously been convicted of securities fraud, court documents state.
In his plea agreement, Sweaney admitted that, using the “Michael Hatton alias,” he personally solicited a potential investor with lies, including that Nanotech did not pay commissions to sales personnel and that the company’s manufacturing equipment was worth $100 million. That potential investor was actually an undercover FBI agent.
During the scheme, Sweaney instructed his nephew – who was in charge of Nanotech’s Colorado facility – to create a prop to make it appear that there were functioning Nanopanels, to make a video with a hired actor showing the product outperforming a traditional solar panel, and to make it appear the Loveland facility was manufacturing Nanopanels, the court documents state. In a 2018 email to his nephew, Sweaney wrote, “We need to spend ALOT OF CASH, we need IMMEDIATELY equipment in the warehouse, without it JAIL, and that’s no joke, no equipment and using investment funds EQUALS JAIL, however spending money on equipment WILL SET US FREE.”
Once he enters the guilty plea in this case, Sweaney will face a statutory maximum sentence of 20 years in federal prison.
Sweaney admitted in his plea agreement that investor funds – which purportedly would be spent on company overhead and the manufacturing of Nanopanels – were used to fund his lavish lifestyle, which included a 46-foot yacht, two Maserati GranTurismo automobiles, a gold Cartier watch and cosmetic surgery. As part of the plea agreement, Sweaney agreed to forfeit the yacht, the cars, the watch and approximately $1.5 million in cash, bank accounts and checks previous seized by investigators.
Sweaney’s nephew – David Wayne Sweaney, 41, of Fort Collins, Colorado, who was listed on documents as Nanotech’s chief executive officer – pleaded guilty last month to one count of mail fraud. He is scheduled to be sentenced by United States District Judge Josephine L. Staton on April 2, 2021, at which time he will face a statutory maximum sentence of 20 years in prison.
According to court documents, David Sweaney assisted in the scheme orchestrated by his uncle in a number of ways, including depositing victims’ checks into Nanotech bank accounts in Colorado, purchasing and installing $300,000 in used solar panel manufacturing equipment, arranging for at least two potential victim-investors to tour Nanotech’s Colorado facility, and creating a video showing a prop Nanopanel outperforming a standard solar panel – an illusion he created by powering the purported Nanopanel with a hidden battery pack.
These cases are the result an ongoing investigation by the FBI.
This case is being prosecuted by Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office.
The United States Securities and Exchange Commission has filed a civil action against Nanotech and the Sweaneys, and the agency announced three weeks ago it obtained a partial judgment against David Sweaney.
Iowa Man Pleads Guilty to Being in Possession of Molotov Cocktail During Omaha ProtestsRead the Press Release
United States Attorney Joe Kelly announced that Steven M. Fitch, age 25, of Council Bluffs, Iowa, pleaded guilty today before United States Magistrate Judge Michael D. Nelson for being in unlawful possession of a destructive device. Sentencing has been scheduled for January 20, 2021 at 1:30 p.m. before the Honorable Brian C. Buescher. Fitch faces a maximum punishment of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release.
An investigation conducted by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms determined that on May 31, 2020, Fitch was participating in protests in and around downtown Omaha, Nebraska. During the protests, Fitch was encountered by officers with the Omaha Police Department at 15th and Jackson Streets. Officers determined Fitch possessed a destructive device, also known as a Molotov Cocktail, which is a firearm under the National Firearms Act. The Molotov Cocktail was located in Fitch’s front pants pocket and consisted of a glass bottle with clear liquid inside and a red rag protruding out of the opening. Fitch also had several lighters in his front pants pocket.
Douglas County Sheriff’s Forensic Services Bureau tested the red rag that was attached to the Molotov Cocktail, which was positive for containing the chemical “Gasoline.” The Molotov Cocktail was in operating condition and was capable of exploding when ignited.
The Bureau of Alcohol, Tobacco, and Firearms determined that the Molotov Cocktail device was not registered to Fitch as required by the National Firearms Registration and Transfer Record.
After Fitch’s plea, FBI Omaha SAC Eugene Kowel said, “The FBI is committed to protecting all those who are exercising their First Amendment rights, including the right to peacefully protest. This is part of our core mission. When someone violently threatens the safety of peaceful protesters by breaking the law, as Steven Fitch has admitted to, FBI Omaha is fully committed to identifying, investigating, and arresting those individuals responsible.”
This case was investigated by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms.
International Firearms Trafficker Arrested in GeorgiaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest of Ihor Radionov (51, Alpharetta, Georgia) pursuant to an indictment charging him with conspiracy and smuggling goods out of the United States in violation of the International Traffic in Arms Regulations. If convicted on all counts, Radionov faces a maximum penalty of 20 years in federal prison. On October 26, 2020, Radionov made his first appearance in federal court in Atlanta, Georgia.
According to the indictment, between 2014 and 2020, Radionov, co-conspirator Vladimir Volgaev, and a co-conspirator residing in Ukraine, conspired to export defense articles out of the United States, including gun barrels and slides, without a license or prior written approval from the United States Department of State.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section.
Honduran 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 JOSE DAVID SANCHEZ, age 24, a native of Honduras, was charged on October 23, 2020 in a one-count indictment with illegal use of a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
SANCHEZ faces a maximum term of imprisonment of not more than five (5) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
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.