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Monday 21 September 2020
Monroeville Felon Admits Possessing Fentanyl and Unlawfully Possessing a Gun and AmmoRead the Press Release
PITTBSURGH – A former resident of Monroeville, Pennsylvania, pleaded guilty in federal court to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Alexander Bishop Cole, age 38 pleaded guilty before U.S. District Judge Robert J. Colville to a three-count Information charging him at two of the counts with possessing fentanyl with the intent to distribute it on June 30, 2017. The third count of the Information charged Cole, a felon previously convicted in 2009 of federal narcotics and firearms law violations in the U.S. District Court for the Western District of Pennsylvania, with unlawfully possessing a firearm and ammunition on June 30, 2017. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition.
In connection with the guilty plea, the court was advised that on June 30, 2017, detectives with the Monroeville Police Department performed a traffic stop on a vehicle occupied by Cole – a subsequent search of Cole’s person revealed ten "bricks" of fentanyl, which was packaged for resale. A subsequent search of Cole’s apartment revealed additional quantities of fentanyl, fentanyl packaging materials, and a .40 caliber Browning Arms pistol, and assorted ammunition.
Judge Colville scheduled sentencing for January 20, 2021, at 1:30 p.m. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court remanded Cole to the custody of the United States Marshals Service.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroeville Police Department, conducted the investigation that led to the prosecution of Cole.
Mexican National Sentenced to 10 years in Prison for Cultivating Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Marco Lizandro Duarte-Beltran, 34, of Michoacán, Mexico, today to 10 years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
Judge Drozd also ordered Duarte-Beltran to pay $12,644 in restitution to clean up the area.
According to court documents, Duarte-Beltran cultivated 1,082 marijuana plants in the Millwood Creek area of the Sequoia National Forest for four months. Duarte-Beltran was apprehended at the marijuana cultivation site after a two‑month investigation, wearing camouflage clothing and armed with a loaded revolver.
The marijuana cultivation operation caused extensive environmental damage: native vegetation and tree limbs had been cut down to make room for the plants; three areas had been terraced for the campsite where Duarte-Beltran resided; water had been diverted from a water source on federal land to irrigate the plants; and irrigation tubing, trash, seed trays, seed pots, fertilizers, and pesticides were scattered throughout the grow site.
This case was the product of an investigation by the U.S. Forest Service. Homeland Security Investigations, Enforcement and Removal Operations, the Campaign Against Marijuana Planting (CAMP), the California National Guard, and the Fresno County Sheriff’s Office assisted in the investigation. Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Mexican National Sentenced for Unlawful Possession of AmmunitionRead the Press Release
HUNTINGTON W.Va. – A Mexican national who was in the United States illegally and caught in possession of .40 caliber ammunition was sentenced to time served, or six months and 17 days, in federal prison today, according to United States Attorney Mike Stuart. Juan Martin Sotelo-Rodriguez, 26, previously pled guilty to being an illegal alien in possession of ammunition.
“Sotelo-Rodriguez illegally entered our country only to further violate our laws,” said United States Attorney Mike Stuart. “My advice to him is that if he wants to come to the United States, he needs to follow the legal process to do so and while he is here, he must follow all of our laws.”
On October 25, 2019, Sotelo-Rodriguez was operating a car on Beechwood Drive in Huntington when he was stopped by a patrol officer with the Huntington Police Department. During the stop, Sotelo-Rodriguez was found to be intoxicated and was arrested for driving under the influence. Officers then located and seized multiple rounds of .40 caliber ammunition laying in the driver’s seat of the vehicle. Sotelo-Rodriguez admitted that he possessed the ammunition. Sotelo-Rodriguez also admitted that he was a citizen of Mexico and not a citizen or national of the United States, that he was illegally and unlawfully present in the United States, and therefore, was prohibited from possessing ammunition.
The United States Immigration and Customs Enforcement (ICE) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentenced. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00041.
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Members of Stock Fraud Ring Indicted for Securities Fraud, Two Defendants ArrestedRead the Press Release
Assistant U. S. Attorneys Andrew J. Galvin (619) 546-9721 and Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – September 21, 2020
SAN DIEGO – An indictment unsealed today charges four individuals, including a securities attorney, with securities fraud for running an illegal pump-and-dump scheme surrounding two publicly-traded stocks. The investigation that led to these charges involved a co-conspirator-turned-confidential-informant who was cooperating with the FBI.
According to court documents, Ongkaruck Sripetch (a resident of Gig Harbor, Washington, who used the aliases “King Richards” and “Shelby Saint-Claire”), Canadian resident Michael Wexler, Canadian resident and securities attorney Ashmit Patel, and Grand Cayman resident Andrew McAlpine were members of a stock fraud ring who worked together to artificially inflate the prices of penny stocks, then quickly unload their own shares before the prices collapsed. The defendants did not know that, while the scheme was underway, one of their partners had begun cooperating with the Government’s investigation and was collecting evidence against his co-conspirators.
Defendant McAlpine was arrested Friday when he entered the United States from Grand Cayman, and defendant Sripetch was also arrested Friday, in Gig Harbor, Washington. The United States is seeking the arrest of defendants Patel and Wexler.
As alleged in the indictment, a pump-and-dump scheme takes place when subjects acquire publicly-traded stock at low prices, issue misleading news releases or promotional materials to artificially increase the price of the stock, sell the stock to unsuspecting investors, and split the proceeds. The stock fraud ring charged here carried out pump-and-dump schemes on the stock of two companies: Ottawa, Canada-based VMS Rehab Systems, which claimed to sell “quality of life orthopedic seat cushions for the home healthcare sector,” and Argus Worldwide, a company headquartered in Cheyenne, Wyoming, which purportedly focused on “digital/internet products and services, smart consumer electronic products and health industries.”
“These defendants sought to boost the stock price of two companies, and then leave innocent investors with investments that they knew would almost immediately lose most or all of their value,” said U.S. Attorney Robert Brewer. “We will continue to investigate and prosecute this type of stock fraud.” Brewer praised prosecutors Andrew Galvin and Aaron Arnzen, as well as the Federal Bureau of Investigation and the Securities and Exchange Commission for their investigation in this case.
“The FBI's complex financial crimes investigators diligently work securities fraud cases like this pump-and-dump scheme in order to maintain the integrity of our financial markets,” said Suzanne Turner, Special Agent in Charge of the FBI's San Diego Division. “Today, Grand Cayman resident Andrew McAlpine and co-conspirator Ongkaruck Sripetch were arrested by FBI Agents and will face the charges for this alleged conspiracy. The FBI will continue to seek justice for those who are victmized by unscrupulous actors that manipulate our financial markets no matter where they reside.”
The indictment also alleges that, as part of the scheme, the conspirators traded the stock of VMS Rehab and Argus Worldwide between themselves. They made these trades to create the appearance that investors were genuinely interested in and actively trading the stocks. Sadly for victim investors, it was a façade – this manipulative trading was just part of defendants’ effort to entice investors to purchase VMS Rehab and Argus Worldwide stock at artificially high prices.
DEFENDANTS Case Number 20cr0160-H
Ongkaruck Sripetch Age: 45 Gig Harbor, WA
aka King Richards
aka Shelby Saint-Claire
Michael Wexler Age: 74 Ottawa, Ontario, Canada
Ashmit Patel Age: 36 Oakville, Ontario, Canada
Andrew McAlpine Age: 47 Grand Cayman, Cayman Islands
SUMMARY OF CHARGES
Conspiracy to Commit Securities Fraud – Title 18, U.S.C., Section 371
Securities Fraud – Title 15, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Manipulative Securities Trading – Title 15, U.S.C., Sections 78i(a)(1), 78ff.
Maximum penalty: Twenty years in prison and $5 million fine
AGENCIES
Federal Bureau of Investigation
Securities and Exchange Commission
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Member of timber poaching group that set Olympic National Forest wildfire sentenced to 2 ½ years in prisonRead the Press Release
Tacoma — One of two men charged in a scheme to steal maple wood that resulted in a massive 2018 forest fire on the Olympic Peninsula was sentenced to prison today in U.S. District Court in Tacoma, announced U.S. Attorney Brian T. Moran. SHAWN EDWARD WILLIAMS, 49, was sentenced to 30 months in prison and three years of supervised release for theft of public property and setting timber afire. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said that “the consequences of your actions . . . resulted in horrendous consequences to the forests.”
According to records filed in the case, between April and August 2018, lead defendant Justin Andrew Wilke conducted an illegal logging operation in the Elk Lake area of the Olympic National Forest, near Hood Canal. In July 2018, just days after his release from state prison, WILLIAMS joined the conspiracy, helping Wilke remove maple from the National Forest and transporting it with Wilke to a mill in Tumwater, Washington. The type of maple harvested by the defendants is highly prized and used to produce musical instruments.
On August 3, 2018, the group decided to cut a maple tree that contained a wasp’s nest near the base of the tree. To remove the nest, the group sprayed insecticide and gasoline on the nest and base of the tree and then lit the nest on fire. The group failed to extinguish the fire, which developed into a wildfire later named the “Maple Fire.” The Maple Fire consumed more than 3,300 acres between August and November 2018 and cost approximately $4.2 million to contain. WILLIAMS did not himself set the fire, but was present when others set the fire.
WILLIAMS pleaded guilty in December 2019.
In their sentencing memo, prosecutors highlighted the danger of Wilke and WILLIAMS’s conduct. “Forest fires present a dire and growing threat in this region. They destroy our forests, poison our air, and endanger responders, local residents, recreationalists, and wildlife. When this fire occurred in early August 2018, the Puget Sound region was (as it is today) already experiencing significant smoke from existing wildfires, and the high risk of fire was evident to everyone in Western Washington. Despite this atmosphere, Williams participated in taking the extreme risk of setting fire to a portion of a tree—deep in the forest, in mid-summer. The consequences of that decision—thousands of acres burned, millions of dollars in containment costs, and the release of huge amounts of smoke—were easily foreseeable.”
The case was investigated by the United States Forest Service. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.
Maryland man admits to firearms offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Lemonte Green, of Hagerstown, Maryland, has admitted a firearms charge, U.S. Attorney Bill Powell announced.
Green, 36, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” Green admitted to having a 9mm pistol while trafficking drugs in October 2019 in Berkeley County.
Green no less than five years and up to life incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Admits Using Kik to Solicit, Receive and Distribute Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that DYLAN KOERNER, 29, of New Britain, formerly of West Hartford, waived his right to be indicted and pleaded guilty today to one count of distribution of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Janet Bond Arterton occurred via videoconference.
According to court documents and statements made in court, between July 2019 and October 2019, Koerner used a false identity and posed as a teenager on Kik, an internet mobile application, to solicit child pornography from Kik users who he believed to be minor females. He also distributed images and videos of child pornography to other Kik users.
Analysis of Koerner’s cell phone and an external hard drive seized from him in October 2019 revealed approximately 121 unique images and nine unique videos depicting child pornography.
Judge Arterton scheduled sentencing for December 14, 2020, at which time Koerner faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Koerner is released on a $100,000 bond pending sentencing.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Kernersville Man Who Tried to Shoot a State Trooper Sentenced to 30 Years on Federal Drug and Gun ChargesRead the Press Release
GREENSBORO, N.C. - A man formerly from Kernersville was sentenced today in federal court for drug and firearm offenses, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
TYLER LLOYD GRANTZ, age 21, was charged with possession of a stolen firearm, possession with intent to distribute cocaine, possession with intent to distribute oxycodone, and carry/use, by discharging, firearms during and in relation to a drug trafficking crime. He was convicted of all charges on February 12, 2020, after a three day jury trial.
GRANTZ was sentenced by United States District Court Judge William L. Osteen, Jr., in Greensboro. GRANTZ was sentenced to 240 months in prison as to Counts One through Three, to run concurrently with one another, and 120 months as to Count Four, to run consecutively thereto, for an aggregate sentence of 360 months. He was sentenced to 3 years of supervised release as to Counts One through Three and five years of supervised release as to Count Four.
According to evidence presented at the trial, at approximately 2:09 am on March 5, 2019, GRANTZ was speeding down Interstate 40 eastbound at 100 mph in a stolen GMC Acadia when a trooper with the North Carolina State Highway Patrol attempted to pull him over. GRANTZ, while driving, fired multiple rounds from a stolen Glock .40 caliber handgun at the trooper’s car. GRANTZ then pulled over at the New Hope Church Road exit in Orange County and crashed his car along the wood line. As the trooper approached GRANTZ’s car, GRANTZ fired multiple rounds at him with a Draco Arms AK-style 7.62x39mm pistol grip assault rifle and then ran into the woods. Law enforcement searched the GMC Acadia and found the stolen Glock .40 caliber handgun, a hard hat bearing GRANTZ’s name, and a cell phone bearing his DNA and containing pictures of him, as well as text messages discussing drug sales. Law enforcement also found multiple .40 caliber shell casings along Interstate 40 and multiple 7.62x39mm shell casings at the crash site.
After a multiple hour manhunt, law enforcement arrested GRANTZ a few miles from the crash site. GRANTZ had the Draco Arms assault rifle and distribution quantities of cocaine hydrochloride and oxycodone with him, as well as multiple other controlled substances, a large amount of cash, drug packaging materials, and digital scales. A forensic scientist confirmed that recovered shell casings matched the two firearms.
“Let the 30 year sentence in this case put violent drug dealers on notice. If you are using guns to help your drug business and if you shoot at a cop, you will suffer serious federal consequences,” said U.S. Attorney Matt Martin. “I commend the FBI, Orange County Sheriff, NC State Highway Patrol, and Chapel Hill Police Department for excellent work in this case.”
The case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office with assistance from the North Carolina State Highway Patrol and the Chapel Hill Police Department. Assistant U.S. Attorney JoAnna G. McFadden prosecuted the case.
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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Justice Department Awards Nearly $101 Million to Combat Human TraffickingRead the Press Release
The Department of Justice today announced it has awarded nearly $101 million, through the department’s Office of Justice Programs (OJP) in funding to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr. “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes. Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”
The Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking.
“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
- The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level. This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
- The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
- The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking. Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
- The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
- The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
- The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
- OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.
Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:
- The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
- The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000. NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
Jury Convicts Man of Producing Images of Child Sexual AbuseRead the Press Release
RICHMOND, Va. – A federal jury has convicted a Mathews County man of charges of conspiracy to produce child pornography, production of child pornography and coercion and enticement of a child.
According to court records and evidence presented at trial, William Wellington Hooper, Jr., 53, conspired with Jennifer Hutchens, 53, of Gloucester, to produce images of child sexual abuse of Jane Doe #1 and Jane Doe #2. During the months of April and May 2019, Hooper and Hutchens coerced Jane Doe #1 to engage in sexually explicit conduct in Gloucester County and Mathews County. Hutchens, at the request of Hooper, recruited other minor girls to participate in what Hooper called “teen modeling”. He promised these children, whose families were struggling financially, that they would be compensated. Hooper also sexually abused Jane Doe #1.
Hutchens previously pleaded guilty to producing child pornography and is scheduled to be sentenced on October 13.
Hooper was convicted on Friday and faces a mandatory minimum of 15 years to life in prison when sentenced on Feb. 9, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; L. Mark Barrick, Mathews County Sheriff; Darrell W. Warren, Jr., Gloucester County Sheriff; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge David J. Novak accepted the verdict. Assistant U.S. Attorneys Lisa R. McKeel, Howard J. Zlotnick and Brittany M. Fisher are 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. 4:20-cr-18.
Judge sentences UK National for role in ‘Dark Overlord’ Hacking GroupRead the Press Release
ST. LOUIS, MO – A United Kingdom national pleaded guilty today to conspiring to commit aggravated identity theft and computer fraud, and was sentenced to five years in federal prison.
U.S. District Judge Ronnie White for the Eastern District of Missouri sentenced Nathan Wyatt, 39, who participated in a computer hacking collective known as “The Dark Overlord,” which targeted victims in the St. Louis area beginning in 2016. Wyatt was extradited from the United Kingdom to the Eastern District of Missouri in December 2019. Judge White also ordered Wyatt to pay $1,467,048 in restitution.
“Nathan Wyatt used his technical skills to prey on Americans’ private data and exploited the sensitive nature of their medical and financial records for his own personal gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s guilty plea and sentence demonstrate the department’s commitment to ensuring that hackers who seek to profit by illegally invading the privacy of Americans will be found and held accountable, no matter where they may be located.”
“The Dark Overlord has victimized innumerable employers in the United States, many of them repeatedly, said U.S Attorney Jeff Jensen of the Eastern District of Missouri. “I am grateful to the victims who came forward despite ransom threats and to the prosecutors and agents who were the first to catch and punish a member of the Dark Overlord in the United States.”
“Cyber hackers mistakenly believe they can hide behind a keyboard,” said Special Agent in Charge Richard Quinn of the FBI’s St. Louis Field Office. “In this case, the FBI demonstrated once again that it will impose consequences on cyber criminals no matter how long it takes or where they are located.”
Wyatt admitted that, beginning in 2016, he was a member of The Dark Overlord, a hacking group that was responsible for remotely accessing the computer networks of multiple U.S. companies without authorization. Victims in the Eastern District of Missouri included healthcare providers, accounting firms, and others. Wyatt admitted that The Dark Overlord co-conspirators acted by obtaining sensitive data from victim companies, including patient medical records and personal identifying information, and then threatening to release the companies’ stolen data unless the companies paid a ransom of between $75,000 and $350,000 in bitcoin.
Wyatt further admitted that he participated in the conspiracy by creating, validating, and maintaining communication, payment, and virtual private network accounts that were used in the course of the scheme to, among other things, send threatening and extortionate messages to victims within the Eastern District of Missouri.
The investigation was conducted by the FBI’s St. Louis Field Office. Support was also provided by the FBI’s Atlanta Field Office. The Justice Department’s Office of International Affairs coordinated the extradition of Wyatt. The department thanks law enforcement authorities in the United Kingdom, including the Metropolitan Police Service, for their substantial assistance in the investigation.
Senior Counsel Laura-Kate Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
Indictment Charges Alaska Man for Threatening a California SynagogueRead the Press Release
A federal grand jury in Alaska, returned an indictment charging William Alexander, 49, for threatening to kill the congregants of a California synagogue, the Justice Department announced today.
Count One charges Alexander with making threatening interstate communications, in violation of Title 18, U.S. Code, Section 875. Count Two charges Alexander with intentionally obstructing and attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs through the threatened use of force, in violation of Title 18, U.S. Code, Section 247.
The indictment alleges that, on Nov. 1, 2019, Alexander called the California synagogue and left a voice message threatening to “kill” its Jewish congregants.
If convicted, Alexander faces a maximum of five years in prison, three years of supervised release, and a fine of up to $250,000. An indictment is a formal accusation of criminal conduct, and not evidence of guilt. The defendant is presumed innocent unless proven guilty.
The case is being investigated by the FBI’s Anchorage Field Office with assistance from the Anchorage Police Department and the Los Angeles Police Department, and is being prosecuted by Assistant U.S. Attorney Jonas Walker of the District of Alaska and Civil Rights Division Trial Attorney Sanjay Patel.
Huntington Man Sentenced to More Than Eight Years in Federal Prison for Heroin OffenseRead the Press Release
HUNTINGTON W.Va. – A Huntington man caught with a large quantity of heroin was sentenced to 100 months in federal prison today, announced United States Attorney Mike Stuart. Jason Chinn, 44, previously pled guilty to possession with intent to distribute 100 grams or more of heroin.
“By prosecuting opioid dealers like Chinn, we continue to make a notable positive impact in Huntington through Operation S.O.S.,” said United States Attorney Mike Stuart. “Every time we put a poison peddler behind bars, we disrupt the supply of opioids in the community.”
Chinn admitted that on May 8, 2018, officers executed a search warrant on his residence at 3001 5th Avenue in Huntington. Officers recovered 370 grams of heroin during the search and Chinn admitted that he planned on selling the heroin. As part of his plea agreement, Chinn also admitted that he participated with others in distribution of heroin for several years and that he was responsible for the distribution of up to 3 kilograms of the drug.
The Cabell County Sheriff’s Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00202.
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Harrisburg Man Sentenced to Five Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shaquan Jones, age 25, of Harrisburg, Pennsylvania, was sentenced on September 18, 2020, by U.S. District Court Judge Jennifer Wilson to 60 months’ imprisonment for possession of a gun in furtherance of drug trafficking and possession of crack cocaine with intent to distribute it. Jones had entered a guilty plea to the charges in February 2020.
According to United States Attorney David J. Freed, the charges arose from a September 26, 2018, arrest by the Harrisburg Bureau of Police of Jones. Dauphin County Probation and Parole Officers were dealing with another individual on supervision when they encountered Jones. During their interaction with him, they realized he had a gun in his pocket. They also knew that Jones was previously convicted of drug trafficking, because Jones had just completed parole three days earlier. Harrisburg Police responded and found that Jones was in possession of a stolen handgun. During the arrest, police also recovered two bags of crack cocaine.
Judge Wilson cited Jones’ long criminal history and the circumstances of the incident as aggravating factors for the sentence.
The case was investigated by the Federal Bureau of Investigation, the Harrisburg Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant U.S. Attorney Michael Consiglio prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Guide Rock Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Robert Rose, 65, of Guide Rock, Nebraska, was sentenced on September 18, 2020, in Lincoln, Nebraska by Chief United States District Judge John M. Gerrard to four years’ imprisonment for Possession of Child Pornography. There is no parole in the federal system. Rose was also ordered to pay $3,000 in restitution. After his release from prison, Rose will have to serve a 12-year term of supervised release and be required to register as a sex offender.
On July 19, 2018, investigators with the Nebraska State Patrol executed a search warrant at Rose’s residence in Guide Rock. Rose’s laptop was seized during the search warrant and it was forensically examined by the Nebraska State Patrol. On Rose’s laptop, investigators found more than 600 images and videos of children under the age of 18 years old, including infants and toddlers, nude and/or engaging in sexually explicit conduct. Rose admitted to obtaining these images from the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
This case was investigated by the Nebraska State Patrol.
Former Omaha Restaurant Manager Sentenced for Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Robert Giardina, 39, who most recently resided in Florida, was sentenced today in Omaha, Nebraska, by Senior United States District Judge Laurie Smith Camp to 30 months’ imprisonment for Wire Fraud. There is no parole in the federal system. Giardina was also ordered to pay $30,075.16 in restitution. After his release from prison, Giardina will have to serve a 3-year term of supervised release.
On July 24, 2017, Giardina was hired to be an Area Manager for a multi-branded restaurant management company based in Manhattan, Kansas to run three fast food franchise locations in the Omaha metropolitan area. Giardina used his brother’s information to pass a background check in the hiring process and to complete an I-9 and W-4. These three franchise locations utilized Aloha Point-of-Sale EDC software, which uses the internet to process credit card transactions. From on or about October 24, 2017, to June 5, 2018, Giardina initiated and completed approximately 275 fraudulent credit card refunds from the three franchise locations that he managed in the Omaha area. These fraudulent refunds that Giardina initiated were done so over an interstate wire and caused for funds from Victim Company’s bank account in Equity Bank in Kansas to be refunded to eight of Giardina’s personal credit cards. Giardina had not made purchases eligible for refunds and therefore each false refund to his personal credit cards involved no sales transactions forming the basis for the purported refunds. As a result of these activities, Giardina fraudulently obtained $30,075.16.
This case was investigated by the Social Security Administration-Office of the Inspector General and the Omaha Police Department.
Former Brooklyn Business Owners Plead Guilty in Scheme to Sell Misbranded Beef ProductsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Howard Mora and Alan Buxbaum pleaded guilty before United States District Judge Kiyo A. Matsumoto to conspiracy to commit wire fraud by using counterfeit United States Department of Agriculture stamps to sell misbranded lower quality beef at inflated prices to consumers. When sentenced, each defendant faces up to 20 years in prison and criminal forfeiture of $250,000.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), announced the guilty pleas.
“Mora and Buxbaum rang up hundreds of thousands of dollars in fraudulent profits by charging customers more than the defendants’ products were worth, and now they will pay a price for their avarice,” stated Acting United States Attorney DuCharme.
Between September 2011 and October 2014, the defendants were co-owners of A. Stein Meat Products, Inc., a wholesale meat processing and distribution business located in Brooklyn. During this period, the defendants purchased beef products that had been graded “Choice” quality by graders at the USDA Agricultural Marketing Service and directed their employees to carve off the “Choice” markings and re-stamp them as “Prime,” using counterfeit stamps. The meat was then sold at inflated prices to customers in the New York City metropolitan area.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan Harris and Turner Buford are in charge of the prosecution.
The Defendants:
HOWARD MORA
Age: 68
Westbury, NYALAN BUXBAUM
Age: 66
Monroe, NJE.D.N.Y. Docket No. 19-CR-425 (KAM)
Former Attorney Sentenced to Prison for Embezzlement in Connection with Restaurant GroupRead the Press Release
PHOENIX, Ariz. – Gregory McClure, 42, of Willcox, Arizona, was sentenced today by United States District Court Judge G. Murray Snow to just over six months in prison, followed by six months of home detention. After serving home detention, McClure must serve three years of supervised release. McClure was also ordered to pay $1,339,252.69 in restitution.
Last year, McClure pleaded guilty to embezzling funds from bank accounts owned by Boomtown Management, Inc., an enterprise that owned and operated various restaurants associated with popular music artists throughout the United States. Using his access as Boomtown’s in-house attorney, McClure took money from Boomtown bank accounts in order to gamble at local casinos.
Internal Revenue Service-Criminal Investigation conducted the investigation in this case. Assistant United States Attorney Monica Edelstein, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-00051-PHX-GMS
RELEASE NUMBER: 2020-073_McClure# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Fitchburg Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Fitchburg man pleaded guilty today to enticement of a minor and child pornography charges in federal court in Worcester.
Ryan Decarolis, 27, pleaded guilty to five counts of sexual exploitation of a minor, two counts of distribution of child pornography and one count of possession of child pornography before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for Jan. 15, 2021. Decarolis has been in custody since his arrest on Aug. 2, 2019.
Decarolis admitted that he used a social media account to communicate with an individual who was subsequently charged with production and distribution of child pornography. With the consent of that individual, an undercover federal agent assumed control of that individual’s account and began communicating in an undercover capacity with Decarolis. In January 2019, Decarolis distributed child pornography to the undercover officer, and in April 2019, Decarolis provided the undercover officer with access to his Dropbox account, which contained hundreds of images and videos depicting child pornography. Included in that material was at least one video that depicted Decarolis sexually assaulting a young boy.
In August 2019, during a search of Decarolis’s Fitchburg residence, agents seized a tablet belonging to Decarolis that contained additional videos depicting child pornography. In addition, agents identified a second Dropbox account used by Decarolis that contained videos depicting the sexual exploitation of several children. Included within that material were numerous images and videos that Decarolis produced himself, some of which depicted Decarolis separately sexually assaulting at least four boys under the age of 12.
The charge of sexual exploitation of a minor provides for a minimum mandatory sentence of 15 years and up to 30 years in prison, a minimum mandatory of five years and up to life of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum mandatory of five years and up to life of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison because the material involved a child who had not attained the age of 12, a minimum mandatory of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett from Lelling’s Worcester Office is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts New Orleans Man for Firearms ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, September 18, 2020, that TYREET JOURNEE, age 29, a resident of New Orleans, Louisiana was charged in a one-count indictment by a federal grand jury. In the indictment, JOURNEE is charged with possession of firearms and ammunition by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
If convicted, JOURNEE faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Grand Jury Indicts New Orleans Man for Firearm ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, September 18, 2020, that LLOYD WASHINGTON, (“WASHINGTON”) age 25, a resident of New Orleans, Louisiana was charged in a three-count indictment by a federal grand jury. In Count 1, WASHINGTON is charged with Possession of Firearms and Ammunition by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). In Count 2, WASHINGTON is charged with Possession of Machine Guns in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). In Count 3, WASHINGTON is charged with Possession of Non-Registered Firearms in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
If convicted, WASHINGTON faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Executives of Lexington Medical Companies Sentenced for Defrauding the United States of TaxesRead the Press Release
LEXINGTON, Ky. - Ann Sonderman Giles, 56, and Lu Anne Wallace, 66, both of Lexington, were sentenced on Monday, before U.S. District Judge Karen Caldwell, to 30 months and 33 months, respectively, for conspiring to defraud the United States.
According to their plea agreements, Giles and Wallace operated various health care related companies in the Commonwealth of Kentucky, Giles as the Chief Executive Officer and Wallace as the Chief Financial Officer. They admitted to knowingly failing to pay over to the IRS mandated trust fund taxes derived from the operations of their companies, including federal income, Social Security, and Medicare taxes that had been withheld from their employees’ paychecks. Giles and Wallace further admitted that between January 2014 and July 2017, they conspired to defraud the United States out of $1,595,725 in tax revenue. .
Giles and Wallace pleaded guilty in June 2020.
In addition to their respective terms of incarceration, Giles and Wallace were ordered to pay $1,595,725 to the IRS in restitution, jointly and severally. Under federal law, Giles and Wallace must serve 85 percent of their prison sentences. Upon their release, they will be under the supervision of the U.S. Probation Office for three years, respectively.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; and Rafiq Ahmad, Special Agent in Charge, DOL Office of Inspector General, jointly announced the sentences.
The investigation was conducted by the IRS and Department of Labor. The United States was represented by Assistant U.S. Attorney Will Moynahan.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Duxbury Man Sentenced for Child Pornography ChargeRead the Press Release
BOSTON – A Duxbury man was sentenced in federal court today for a child pornography offense.
Louis Ackerman Jr., 46, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 78 months in prison and five years of supervised release. In May 2020, Ackerman pleaded guilty to possession of child pornography. Ackerman was arrested and charged in November 2019.
On Nov. 15, 2019, federal agents executed a search warrant at Ackerman Jr.’s home and located an iMac computer and two hard drives belonging to him. An onsite forensic review revealed images and videos of child pornography on that computer. From under Ackerman Jr.’s bed, agents recovered printed material which depicted child pornography. Elsewhere in the residence, agents recovered DVDs which depicted child pornography. Further review of the computer and other materials seized from the residence revealed approximately 295 videos and approximately 322 images of child pornography, including prepubescent minors under the age of 12.
United States Attorney Andrew E. Lelling; Plymouth County District Attorney Timothy J. Cruz; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Barnstable Police Chief Matthew Sonnabend; and Duxbury Police Chief Stephen McDonald made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Department of Justice Files Statement of Interest Challenging New Mexico's More Stringent COVID-19 Capacity Limits on Private Schools than Public SchoolsRead the Press Release
The Department of Justice today filed a statement of interest in a New Mexico federal court asserting that the State's COVID-19 rules limiting private schools to operating at 25% of capacity but allowing public schools to operate at 50% of capacity violate the Equal Protection Clause of the United States Constitution. The brief, filed in the U.S. District Court in Albuquerque, explains that the Supreme Court has recognized parents’ educational choices for their children as a fundamental right under the Constitution, and that New Mexico has no grounds for abridging that right in adopting stricter rules for private schools than for public schools.
“Parents have a fundamental right under the United States Constitution, without interference from the government, to select the school for their children of their choice, whether a public school, a parochial school, or a non-religious private school,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “New Mexico’s response to COVID-19 has infringed that right by adopting one rule for public schools and another for private schools, resulting in private schools remaining closed for in-person instruction, without justification. There is no pandemic exception to the Constitution and New Mexico’s differential standards for private and public schools cannot stand.”
"I respect Governor Lujan Grisham’s good faith efforts to manage the COVID-19 pandemic and protect the health of New Mexicans,” said John Anderson, U.S. Attorney for the District of New Mexico. “But COVID-related restrictions must be applied and implemented equally and impartially, and that simply did not happen here. There is no good reason to penalize students just because they choose to attend a private school.”
In response to the COVID-19 pandemic, New Mexico has issued various orders imposing limitations on a range of activities to reduce disease transmission. Public schools are permitted to operate at 50% of capacity, and day care centers can operate at 100% of capacity with social distancing and hygiene measures in place. Private schools, however, are limited to 25% capacity, regardless of social distancing and hygiene measures adopted.
Douglas Peterson, who sends his daughter to Albuquerque Academy, a private school, filed a federal lawsuit against state officials on his and his daughter’s behalf after the school determined that it could not open for live instruction of its students with the 25% capacity limit, although it could accommodate all of its currently enrolled students if allowed to operate at 50% capacity. On Sep. 11, 2020, they moved for an injunction mandating equal treatment.
The United States' brief explains that nearly 100 years ago, the Supreme Court held that parents’ decision whether to send their children to public or private school is part of parents’ fundamental right to direct the upbringing of their children. As such, under the Equal Protection Clause, the government has the burden to show that any differential treatment that abridges that right, even in part, must be supported by a compelling government interest, pursued through the means that are no more restrictive on that right than necessary. New Mexico has not done so here, the brief argues.
Department of Justice Awards $1 Million in Grants to San Diego County OrganizationsRead the Press Release
Assistant U. S. Attorney Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – September 21, 2020
SAN DIEGO – U.S. Attorney Robert Brewer announced today that the U.S. Department of Justice has awarded more than $1 million in grants to organizations based in San Diego County that provide resources to victims of domestic violence and sexual assault.
San Diego-based Alliance for Hope International, led by former San Diego City Attorney Casey Gwinn, received $675,000; Valley Center-based Strong Hearted Native Women’s Coalition received $353,615.
“These are significant grants that will help these organizations provide important services to our community,” said U.S. Attorney Robert Brewer. “This funding supports our goal to put an end to violence against women. These strong partnerships with community organizations put us closer to that goal and bring us together for an important cause.”
The Office on Violence Against Women (OVW) Training and Technical Assistance (TA) Initiative provides OVW grantees such as Alliance for Hope International with the expertise and support they need to develop and implement successful state, local, tribal, and campus projects; increase victim safety; and bolster offender accountability. Through cooperative agreements, OVW supports educational initiatives, conferences, peer-to-peer consultations, and targeted assistance, allowing current and potential grantees to learn from experts and one another about how to overcome obstacles and incorporate promising practices in their efforts to address violence against women. In addition, OVW is focused on building the capacity of the criminal and civil justice systems and victim services organizations to respond effectively to domestic violence, dating violence, sexual assault, and stalking and to foster partnerships between organizations that have not traditionally worked together to address violence against women.
With this FY 2020 TA award, Alliance for HOPE International will continue to implement the Identifying, Investigating, and Prosecuting Strangulation Project. During the course of the project period, Alliance will continue to implement the Training Institute on Strangulation Prevention, maintain the project website with new and revised tools and resources for multidisciplinary professions, conduct stand-alone webinars, and provide on-going technical assistance on addressing strangulation in domestic violence and sexual assault cases.
The Tribal Domestic Violence and Sexual Assault Coalitions Program (Tribal Coalitions Program) supports the development and operation of nonprofit, nongovernmental tribal domestic violence and sexual assault coalitions. The Violence Against Women Reauthorization Act of 2013 changed the program from a discretionary program to a mixed formula and discretionary program, with each recognized coalition receiving an equal amount of available funds and organizations that propose to incorporate and operate new tribal coalitions eligible to apply for discretionary funding. This program is funded through statutory set-asides from the STOP Violence Against Women Formula Program (34 U.S.C. § 10446(b)(4)) and the Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program (34 U.S.C. § 10461(f)). The Tribal Coalitions Program also includes a statutory set-aside from the Sexual Assault Services Program (SASP), specifically for tribal sexual assault coalitions (34 U.S.C. § 12511(d)(3)(A)).
The Strong Hearted Native Women's Coalition (SHNWC) serves tribal reservations and communities located in the Counties of San Diego, Santa Barbara, San Bernardino, and Riverside in California. Additionally, SHNWC also works with many of the non-native service providers within San Diego and Riverside Counties, including four shelter programs and three rape crisis centers, as well as with San Bernardino-Riverside Indian Health under the Kiicha, Safe Home project. With this award, SHNWC will provide technical assistance, training, and services to the community service area to enhance access to and awareness of services for victims of domestic violence, sexual assault, dating violence, stalking, and sex trafficking.
Department of Justice Identifies New York City, Portland and Seattle as Jurisdictions Permitting Violence and Destruction of PropertyRead the Press Release
UPDATE
The guidance and designations described in the press release below were withdrawn on February 25, 2021 pursuant to a memorandum signed by Acting Attorney General Monty Wilkinson.
All Department grantmaking components shall ensure that no state or local jurisdictions are disfavored in any Departmental programs on the basis of the withdrawn guidance and designations below.
The U.S. Department of Justice today identified the following three jurisdictions that have permitted violence and destruction of property to persist and have refused to undertake reasonable measures to counteract criminal activities: New York City; Portland, Oregon; and Seattle, Washington. The Department of Justice is continuing to work to identify jurisdictions that meet the criteria set out in the President’s Memorandum and will periodically update the list of selected jurisdictions as required therein.
The list was published on DOJ’s website today in response to President Trump’s memorandum of September 2, 2020, entitled “Memorandum on Reviewing Funding to State and Local Government Recipients That Are Permitting Anarchy, Violence, and Destruction in American Cities.”
“When state and local leaders impede their own law enforcement officers and agencies from doing their jobs, it endangers innocent citizens who deserve to be protected, including those who are trying to peacefully assemble and protest,” said Attorney General William P. Barr. “We cannot allow federal tax dollars to be wasted when the safety of the citizenry hangs in the balance. It is my hope that the cities identified by the Department of Justice today will reverse course and become serious about performing the basic function of government and start protecting their own citizens.”
Criteria for evaluating each city is below:
- Whether a jurisdiction forbids the police force from intervening to restore order amid widespread or sustained violence or destruction.
- Whether a jurisdiction has withdrawn law enforcement protection from a geographical area or structure that law enforcement officers are lawfully entitled to access but have been officially prevented from accessing or permitted to access only in exceptional circumstances, except when law enforcement officers are briefly withheld as a tactical decision intended to resolve safely and expeditiously a specific and ongoing unlawful incident posing an imminent threat to the safety of individuals or law enforcement officers.
- Whether a jurisdiction disempowers or defunds police departments.
- Whether a jurisdiction unreasonably refuses to accept offers of law enforcement assistance from the Federal Government.
- Any other related factors the Attorney General deems appropriate.
New York City
- Shootings in New York City have been on the rise since looting and protests began on or about May 28, 2020. For July 2020, shootings increased from 88 to 244, an increase of 177% over July 2019. In August 2020, shootings increased from 91 to 242, a 166% increase over August 2019.
- While the city faced increased unrest, gun violence, and property damage, the New York City Council cut $1 billion from NYPD’s FY21 budget.
- The budget resulted in the cancellation of the new police recruiting class, cuts to overtime spending, and the transfer of certain police functions, including school safety, out of the NYPD.
- Meanwhile, the Manhattan and Brooklyn District Attorneys have declined to prosecute charges of disorderly conduct and unlawful assembly arising from the protests, and the District Attorneys in Queens and the Bronx have declined to prosecute other protest-related charges.
- Both Mayor de Blasio and Governor Cuomo have forcefully rejected federal law enforcement support.
Portland, Oregon
- This month, Portland marked 100 consecutive nights of protests marred by vandalism, chaos, and even killing.
- Those bent on violence regularly started fires, threw projectiles at law enforcement officers, and destroyed property. Numerous law enforcement officers, among others, suffered injury.
- Shootings increased by more than 140% in June and July 2020 compared to the same period last year.
- In the midst of this violence, the Portland City Council cut $15 million from the police bureau, eliminating 84 positions. Crucially, the cuts included the Gun Violence Reduction Team, which investigates shootings, and several positions from the police team that responds to emergency incidents.
- In August, Portland Mayor Wheeler sent a letter to President Trump expressly rejecting the Administration’s offer of federal law enforcement to stop the violent protests.
Seattle, Washington
- For nearly a month, starting in June, the City of Seattle permitted anarchists and activists to seize six square blocks of the city’s Capitol Hill neighborhood, naming their new enclave the “Capitol Hill Autonomous Zone” (CHAZ) and then the “Capitol Hill Occupied Protest” (CHOP).
- Law enforcement and fire fighters were precluded from entering the territory. The Seattle Police Department was ordered to abandon their precinct within the CHOP.
- Person-related crime in the CHOP increased 525% from the same period of time in the same area the year before, including by Mayor Durkan’s own count “two additional homicides, 6 additional robberies, and 16 additional aggravated assaults (to include 2 additional non-fatal shootings).”
- The CHOP was allowed to stand for nearly a month, during which time two teenagers were shot and killed in the zone.
- The Seattle City Council, Mayor Durkan, and Washington Governor Jay Inslee publicly rejected federal involvement in law enforcement activities within the city of Seattle.
Currituck County Man Sentenced for Possession of AmmunitionRead the Press Release
RALEIGH, N.C. – A Jarvisburg man was sentenced today to 96 months in prison for being a felon in possession of ammunition.
According to court documents, Antonio Rishawn Taylor, 31, an eight-time previously convicted felon, illegally possessed ammunition in October 2017. A law enforcement search of Taylor’s residence revealed the ammunition, a quantity of cocaine, and drug paraphernalia. Taylor was under state probation supervision at the time.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation, Currituck County Sheriff’s Office, and Currituck County Probation Office investigated the case and Assistant U.S. Attorney Lucy Brown prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:18-CR-25-D.
Council Bluffs Man Pleads Guilty to Multistate Scheme to Defraud Auto Parts DealersRead the Press Release
United States Attorney Joe Kelly announced that Richard Lang, age 43, of Council Bluffs, Iowa, pleaded guilty in federal court today in Omaha, Nebraska, to conspiracy to commit wire fraud. Lang faces up to five years in prison. Senior United States District Judge Laurie Smith Camp will sentence Lang following the completion of a presentence report. Daniel Hendrickson, one of Lang’s co-conspirators, pleaded guilty to the same crime on July 28, 2020, in federal court in Omaha.
From between about February 11, 2018, through about May 17, 2018, Lang and co-conspirators, including Hendrickson, engaged in a scheme in which they obtained property from auto parts stores under false pretenses. Lang and the co-conspirators went to auto parts stores including NAPA Auto Parts, O’Reilly Auto Parts, Bauer Built Tire & Service, Allied Oil & Tire, and GCR Tire & Service, and obtained items, including tires, by falsely claiming to be associated with other business entities. Lang and his co-conspirators did not pay for the items they obtained. Instead, they had the victim auto parts stores bill the business entities that Lang and the co-conspirators claimed to work for. They perpetrated the scheme on at least 70 occasions among auto parts stores in Nebraska, Iowa, and Minnesota. They perpetrated the scheme more than 30 times at auto parts stores in Omaha. At least about $67,000 in property was obtained via the scheme.
The case was investigated by Omaha Police Department, the Bellevue Police Department, the Fremont, Nebraska Police Department, the Council Bluffs, Iowa Police Department, the Des Moines, Iowa Police Department, the Blue Earth, Minnesota Police Department, and the United States Secret Service.
Convicted child molester sentenced to 25 years for producing child pornography of teens in his careRead the Press Release
ROME, GA– Daniel Strickland, who molested two minors in his care and produced child pornography of them, has been sentenced to 25 years in prison.
“Strickland’s crimes will haunt his victims and their families for years,” said U.S. Attorney Byung J. “BJay” Pak. “Instead of safeguarding the children in his care, he sexually exploited them. Thankfully, one of his victims came forward and reported him to law enforcement. Her courage prevented Strickland from traumatizing other children.”
“Strickland will spend the next 25 years of his life in prison, which should send a strong message to anyone who even contemplates harming a vulnerable and defenseless child,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Along with our state and local law enforcement partners, the FBI is committed to working collectively to prosecute child predators.”
“It is the mission of the Murray County Sheriff’s Office to serve its citizens with dignity and honor. The safety of our children is the utmost importance and dearest to our heart. We are thankful that a victim in this case was brave enough to come forward and bring this matter to our attention so that justice could be served to Strickland,” said Jimmy Davenport, Chief Deputy, Murray County Sheriff’s Office.
According to U.S. Attorney Pak, the charges and other information presented in court: Strickland molested and took sexually explicit photos of two minor girls who had been in his care. Strickland first came to the attention of law enforcement in February 2019 when one of the victims contacted the Murray County Sheriff’s Office (“MCSO”) to report his actions. This victim had been staying at his home when Strickland molested and photographed her.
A subsequent investigation by the FBI and MCSO revealed that Strickland took sexually explicit photos of this girl and another minor girl, who he had babysat several years earlier in 2015. Both girls were approximately 13 years old when Strickland victimized them, and in both cases Strickland abused and photographed them when they were asleep (or appeared to be asleep). In July 2019, he pleaded guilty to two counts of child molestation arising from these incidents in Murray County Superior Court.
Daniel Strickland, 46, of Chatsworth, Georgia, was sentenced to 25 years in prison to be followed by a lifetime of supervised release. He will be required to register as a sex offender upon release. Strickland pleaded guilty to two counts of producing child pornography on June 18, 2020.
This case was investigated by the Federal Bureau of Investigation and Murray County (GA) Sheriff’s Office.
Assistant U.S. Attorneys Alex R. Sistla and Nicholas Hartigan prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Sex Trafficker Sentenced to 270 Months in PrisonRead the Press Release
The Justice Department today announced that Senior Judge William K. Sessions III sentenced Brian Folks, 45, to 270 months in prison today.
A federal jury in Burlington, Vermont, previously found Folks guilty of 13 federal felonies after a nearly three-week trial back in May 2019. Evidence presented at trial showed that Folks ran an extensive and violent sex and drug trafficking operation that sold heroin and cocaine base throughout the greater Burlington area and forced young, drug-addicted women to prostitute
In May 2019, a federal jury convicted Folks of five counts of sex trafficking by force, fraud, or coercion, one count of sex trafficking of a minor, one count of operating an unlawful prostitution business enterprise, four counts of distributing heroin, one count of possessing heroin and cocaine base with the intent to distribute, and one count of conspiracy to distribute heroin and cocaine base.
“This defendant used intimidation, humiliation, degrading acts, and violence to force young women suffering from opioid addictions to perform commercial sex acts,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “His barbaric bullying caused them immeasurable harm, and he helped destroy people and their families by illegally dealing opioid drugs. Today’s sentence will help the victims in the healing process and show that depraved conduct, like this defendant’s, will not be tolerated. The Department of Justice will continue its vigorous efforts to hold human traffickers accountable, bring justice to their victims, and prevent them from harming others.”
“This significant term of imprisonment reflects the inhumanity with which Folks treated his victims and the depravity of his conduct,” said U.S. Attorney Christina E. Nolan for the District of Vermont. “The U.S. Attorney’s Office will continue to work alongside our community partners and law enforcement agencies to identify victims of human trafficking, get them support, and bring serious consequences to those who abuse them mentally and physically. We in Vermont law enforcement simply won’t tolerate this conduct.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities,” said the Drug Enforcement Agency’s (DEA) Special Agent in Charge Brian D. Boyle. “These crimes rob the neighbors of safety and hold law abiding citizens of Vermont hostage to drug fueled lawlessness. Today’s sentence not only holds Folks accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to bring to justice anyone who engages in these crimes.”
Evidence presented at trial, including the testimony of four victims, established that defendant Brian Folks operated two, intertwined criminal operations between June 2012 and March 2016. One operation sold heroin and cocaine base throughout the greater Burlington area. The other forced young, drug-addicted women to prostitute. The defendant used his access to drugs to target and recruit young, vulnerable women. After providing them with drugs, he manipulated their addictions as part of his coercive scheme to prostitute them. He also often engaged in extreme acts of humiliation and degradation to assert his power and control over the victims. He forced the victims to perform commercial sex acts for his profit or face serious consequences. This included beating them, often in front of other victims, creating a climate of fear and intimidation, and he sexually assaulted them as well. He withheld heroin from the victims, causing them to suffer painful physical and mental withdrawal symptoms, until they saw commercial sex clients. He also videotaped them performing explicit and humiliating sex acts on him, with him, and for him, and threatened to expose those videos to the public. Among the defendant’s victims was a 17-year-old, who also suffered from heroin-addiction. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution.
This case was investigated by the DEA’s New England Division, with assistance from the Burlington, Winooski, and Essex, Vermont, Police Departments and the FBI. It is being prosecuted by Assistant U.S. Attorney Andrew Gilman for the District of Vermont and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit. Former Assistant U.S. Attorney William Darrow for the District of Vermont and former Trial Attorney Emily Savner for the Civil Rights Division’s Criminal Section also prosecuted the case.
Convicted Sex Trafficker Brian Folks Sentenced to over 22 Years in PrisonRead the Press Release
The Honorable William K. Sessions III sentenced Brian Folks, 45, to twenty-two years and six months in prison today, followed by ten years of supervision upon release. A federal jury in Burlington, Vermont, previously found Folks guilty of 13 federal felonies after a nearly three-week trial back in May 2019. Evidence presented at trial showed that Folks ran an extensive and violent sex and drug trafficking operation that sold heroin and cocaine base throughout the greater Burlington area and forced young, drug-addicted women to prostitute. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Christina E. Nolan for the District of Vermont, and DEA Special Agent in Charge-Boston Brian D. Boyle announced the sentence.
In May 2019, a federal jury convicted Folks of five counts of sex trafficking by force, fraud, or coercion, one count of sex trafficking of a minor, one count of operating an unlawful prostitution business enterprise, four counts of distributing heroin, one count of possessing heroin and cocaine base with the intent to distribute, and one count of conspiracy to distribute heroin and cocaine base. Following trial, the Court dismissed one of two counts of sex trafficking by force, fraud, or coercion with respect to one victim. When imposing the sentence, Judge Sessions indicated that he would later determine the amount of restitution Folks owes the victims of the crimes.
U.S. Attorney Christina E. Nolan stated: “This significant term of imprisonment reflects the inhumanity with which Folks treated his victims and the depravity of his conduct. The U.S. Attorney’s Office will continue to work alongside our community partners and law enforcement agencies to identify victims of human trafficking, get them support, and bring serious consequences to those who abuse them mentally and physically. We in Vermont law enforcement simply won’t tolerate this conduct.”
“This defendant used intimidation, humiliation, degrading acts, and violence to force young women suffering from opioid addictions to perform commercial sex acts,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “His barbaric bullying caused them immeasurable harm, and he helped destroy people and their families by illegally dealing opioid drugs. Today’s sentence will help the victims in the healing process and show that depraved conduct, like this defendant’s, will not be tolerated. The Department of Justice will continue its vigorous efforts to hold human traffickers accountable, bring justice to their victims, and prevent them from harming others.”“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities,” said DEA Special Agent in Charge Brian D. Boyle. “These crimes rob the neighbors of safety and hold law abiding citizens of Vermont hostage to drug fueled lawlessness. Today’s sentence not only holds Mr. Folks accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to bring to justice anyone who engages in these crimes.”
Evidence presented at trial, including the testimony of four victims, established that defendant Brian Folks operated two, intertwined criminal operations between June 2012 and March 2016. One operation sold heroin and cocaine base throughout the greater Burlington area. The other forced young, drug-addicted women to prostitute. The defendant used his access to drugs to target and recruit young, vulnerable women. After providing them with drugs, he manipulated their addictions as part of his coercive scheme to prostitute them. He also often engaged in extreme acts of humiliation and degradation to assert his power and control over the victims. He forced the victims to perform commercial sex acts for his profit or face serious consequences. This included beating them, often in front of other victims, creating a climate of fear and intimidation, and he sexually assaulted them as well. He withheld heroin from the victims, causing them to suffer painful physical and mental withdrawal symptoms, until they saw commercial sex clients. He also videotaped them performing explicit and humiliating sex acts on him, with him, and for him, and threatened to expose those videos to the public. Among the defendant’s victims was a 17-year-old, who also suffered from heroin addiction. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution.
This case was investigated by the Drug Enforcement Agency’s New England Division, with assistance from the Burlington, Winooski, and Essex, Vermont, Police Departments and the FBI. It is being prosecuted by Assistant U.S. Attorney Andrew Gilman for the District of Vermont and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit. Former Assistant U.S. Attorney William Darrow for the District of Vermont and former Trial Attorney Emily Savner for the Civil Rights Division’s Criminal Section also prosecuted the case.
Connecticut Men Arrested and Charged with Theft of Seventeen Firearms from West Springfield Gun StoreRead the Press Release
BOSTON – Two Connecticut men were charged in federal court in Springfield on Friday, Sept. 18, 2020 in connection with the theft of 17 firearms from a firearms store in West Springfield.
Fernando Rivera, 24, and Christian Castro, 29, were charged in a criminal complaint with one count each of stealing firearms from a federal firearms licensee.
As alleged in charging documents, on Aug. 29, 2020, Rivera, Castro and others drove in two cars, one of which was stolen and driven by Castro, from Connecticut through Massachusetts to Vermont and New Hampshire, and then back through those three states to Connecticut. At various locations in Massachusetts, Vermont and New Hampshire, members of this group either stole, or attempted to steal, ATMs. Finally, in West Springfield, both cars stopped near a firearms store, and three men exited the car driven by Castro, broke the doors of the store and stole 17 firearms of various calibers. The cars then returned to Connecticut, where the stolen car was abandoned.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Feld Division made the announcement. The West Springfield Police Department, New Britain (Conn.) Police Department and the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Computer Programmer Pleads Guilty in Manhattan Federal Court to Making False Statements About His Involvement in the “Silk Road” WebsiteRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Joleen Simpson, Acting Special Agent in Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that MICHAEL R. WEIGAND, a/k/a “Shabang,” a/k/a “~Shabang~,” a/k/a “~s,” a/k/a “s,” pled guilty today to making false statements to federal agents about his involvement in, and his work for, the “Silk Road” online illicit black market, which was responsible for distributing hundreds of millions of dollars of narcotics and other contraband. WEIGAND’s false statements concealed his role in the operation of the Silk Road website. WEIGAND surrendered today and pled guilty before United States District Judge William H. Pauley III, to whom his case is assigned.
Acting U.S. Attorney Audrey Strauss said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a number of other criminal activities. Michael Weigand helped Silk Road by, among other things, identifying technological vulnerabilities in the site, supplying technological advice directly to Silk Road’s leadership, and travelling overseas to remove Silk Road evidence from a co-conspirator’s residence. When Weigand was questioned by law enforcement in 2019, he falsely claimed not to have done anything at all for Silk Road. For his various false statements, Weigand now faces potential prison time.”
IRS-CI Acting Special Agent in Charge Joleen Simpson said: “During its years of operation the Silk Road website allowed thousands of individuals to anonymously conduct narcotics transactions, launder money, and facilitate other illegal transactions. This investigation took law enforcement above and beyond its traditional role in financial crimes. In effect, it put us squarely in the middle of the high-tech world of cyber-crime and the dark web. When given the opportunity to provide truthful statements to the agents, Weigand knowingly and willfully attempted to deceive the agents of the role he played in providing technical expertise to the Silk Road operators. I hope that this guilty plea will discourage others from providing false information to law enforcement officers in the future.”
FBI Assistant Director William F. Sweeney Jr. said: “Weigand and others used their skills and savvy to create a secret online enclave for criminals to trade in illegal drugs and illicit goods and services. They thought they were smart enough to evade law enforcement, but they were wrong. When Weigand was confronted, he lied about his involvement – once again thinking we weren’t smart enough to catch him. With today’s plea, he’ll have time to contemplate the truth as he awaits his sentence.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Criminal activity on the dark web continues to be more prevalent, allowing easy accessibility to narcotics and illicit goods with the click of a button. With online criminal enterprises growing, law enforcement technologies are advancing, and HSI with its partners are infiltrating the dark web, intercepting online dealings and locating the perpetrators. Today’s guilty plea should stand as reminder to those criminals who have a false sense of security behind their computer screen, that they too will one day face the consequences of their actions.”
According to the allegations in the Information, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder and chief administrator:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over one hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions. Silk Road was specifically designed to allow its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement through the use of the Tor network and a Bitcoin-based payment system.
WEIGAND – who is a computer programmer and electrical engineer – worked with Roger Thomas Clark, the senior adviser to Ulbricht, on certain aspects of Silk Road. For instance, WEIGAND and Clark worked to identify technological vulnerabilities in the Silk Road website. WEIGAND also supplied technological advice directly to Clark and Ulbricht. In January 2019, WEIGAND was questioned by an IRS Special Agent and an FBI Special Agent. After being specifically warned that it is a federal crime to make a false statement to a federal law enforcement officer, WEIGAND attempted to cover up his involvement in Silk Road by falsely stating, among other things, that (1) he never opened an account on Silk Road; (2) he never used the online pseudonyms “Shabang” or “~Shabang~”; (3) he never transferred Bitcoin to Silk Road; (4) he never exposed computer security vulnerabilities in the Silk Road website; (5) he never communicated with anyone who used the online pseudonym “Dread Pirate Roberts,” “DPR,” or “Silk Road”; (6) he never performed any services for the Silk Road website; and (7) he did not know the true identity of “Variety Jones” (one of Clark’s pseudonyms) on Silk Road. WEIGAND also falsely stated that the purpose of his trip to London in late 2013, following the takedown of the Silk Road website and arrest of Ulbricht, was to meet with Clark’s associate regarding a marijuana seed business. In fact, WEIGAND traveled to Clark’s London residence and removed Silk Road evidence.
WEIGAND, 56, of Kirtland, Ohio, pled guilty to one count of making false statements, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WEIGAND is scheduled to be sentenced by Judge Pauley on December 18, 2020, at 2:00 p.m.
The founder and operator of Silk Road, Ross Ulbricht, was previously convicted of seven offenses after a jury trial: distributing narcotics, distributing narcotics by means of the Internet, conspiring to distribute narcotics, engaging in a continuing criminal enterprise, conspiring to commit computer hacking, conspiring to traffic in false identity documents, and conspiring to commit money laundering. Ulbricht was sentenced principally to life imprisonment and $183 million in forfeiture. The senior adviser to Ulbricht, Roger Thomas Clark, pled guilty to conspiring to distribute narcotics and his sentencing is currently pending; Clark faces a maximum potential sentence of 20 years in prison.
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Ms. Strauss praised the outstanding joint efforts of the IRS-CI, the FBI, and HSI. Ms. Strauss also thanked the FBI’s Cleveland Office for its assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Child Sex Trafficker Receives Fifteen Years in Federal PrisonRead the Press Release
Assistant U. S. Attorney Katherine McGrath (619) 546-9054
NEWS RELEASE SUMMARY – September 21, 2020
SAN DIEGO – Joseph Price was sentenced in federal court today for sex trafficking a minor in San Diego in July and August 2019, in violation of 18 U.S.C. § 1591. Price was sentenced to fifteen years in custody by U.S. District Judge Larry Alan Burns.
In his plea agreement, Price admitted that on approximately 11 occasions, he caused a 15-year old girl to engage in commercial sex acts in San Diego. On at least one occasion, he admitted that he hit the minor in order to make her complete the sex acts. As part of his plea, Price further admitted to meeting two additional minor females in Texas over “Instagram” and then encouraging them to engage in commercial sex acts. One of these girls also engaged in commercial sex acts in Texas and sent the money she made to Price. Both were being encouraged by Price to leave their family and friends in Texas and travel to San Diego to continue working for Price when law enforcement intervened.
“Sex trafficking of teenagers targets some of the most vulnerable individuals in our community, and leaves in its wake trauma that can affect victims for the rest of their lives,” said U.S. Attorney Robert S. Brewer, Jr. “The U.S. Attorney’s Office is deeply committed to ensuring that justice is done for the victims of these horrible crimes.” Brewer praised prosecutor Katherine McGrath and the San Diego Human Trafficking Task Force for working hard to protect children.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019 by U.S. Attorney Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 19-CR-3649-LAB
Joseph Price Age: 24 San Diego
SUMMARY OF CHARGES
18 U.S.C. § 1591, Sex Trafficking of a Minor
Maximum penalty: Mandatory minimum of 10 years and a maximum of life in prison; a maximum fine of $250,000, at least five years of supervised release and up to life.
AGENCY
San Diego Human Trafficking Task Force
Chicago Tech Executive Charged with Illegally Exporting Computer Equipment to PakistanRead the Press Release
A Chicago-area resident who owns a Pakistani technology company has been indicted for allegedly illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
Obaidullah Syed owned Pakistan-based Business System International Pvt. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. From 2006 to 2015, Syed and Business System International conspired with company employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the United States to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce, according to an indictment returned in the U.S. District Court in Chicago. The Pakistan Atomic Energy Commission, according to the indictment, was a Pakistani government agency responsible for “the design, fabrication, and testing of high explosives and nuclear weapons parts, uranium mining and enrichment, and the development of solid-fueled ballistic missiles.”
The indictment charges Syed, 65, of Northbrook, and Business System International with one count of conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and one count of violating the International Emergency Economic Powers Act. Syed was arrested Wednesday, Sept. 16, 2020, and remains in federal custody. A detention hearing is scheduled for today at 1:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, John R. Lausch, Jr., U.S. Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
According to the indictment, Syed, Business System International and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities, Syed’s business, or Syed himself, when, in fact, the conspirators knew that the true end user and ultimate consignee of each shipment was either the Pakistan Atomic Energy Commission or a research institute that trained the agency’s engineers and scientists, the indictment states. In so doing, according to the indictment, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents, including Shippers Export Declarations, that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy count is punishable by a maximum sentence of five years in federal prison, while violating the International Emergency Economic Powers Act carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chicago Tech Executive Charged with Illegally Exporting Computer Equipment to PakistanRead the Press Release
CHICAGO —A Chicago-area resident who owns a Pakistani technology company has been indicted for allegedly illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
OBAIDULLAH SYED owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. From 2006 to 2015, Syed and Business System International conspired with company employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the United States to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce, according to an indictment returned in U.S. District Court in Chicago. The Pakistan Atomic Energy Commission, according to the indictment, was a Pakistani government agency responsible for “the design, fabrication, and testing of high explosives and nuclear weapons parts, uranium mining and enrichment, and the development of solid-fueled ballistic missiles.”
The indictment charges Syed, 65, of Northbrook, and Business System International with one count of conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and one count of violating the International Emergency Economic Powers Act. Syed was arrested on Sept. 16, 2020, and remains in federal custody. A detention hearing is scheduled for today at 1:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
According to the indictment, Syed, Business System International and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities, Syed’s business, or Syed himself, when, in fact, the conspirators knew that the true end user and ultimate consignee of each shipment was either the Pakistan Atomic Energy Commission or a research institute that trained the agency’s engineers and scientists, the indictment states. In so doing, according to the indictment, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents, including Shippers Export Declarations, which listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy count is punishable by a maximum sentence of five years in federal prison, while violating the IEEPA carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chairman of Venture Capital Funds Pleads Guilty in Mahhattan Federal Court to Securities and Wire FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that DAVID WAGNER pled guilty to securities fraud and wire fraud in connection with his operation of a number of corporate entities (collectively referred to as “Downing”) as a Ponzi-like scheme. WAGNER solicited over $8 million from Downing investors through materially false and misleading statements and misappropriated a significant portion of those funds, using them for, among other things, the payment of management fees, the repayment of prior investors, and personal expenses. WAGNER pled guilty before U.S. District Judge Alvin K. Hellerstein.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As he admitted in court, David Wagner conned employee-investors into handing over more than $8 million they thought would be invested in a viable operation that would generate returns. Instead, Wagner’s business was largely a sham, and employee-investor funds went to pay Wagner’s personal expenses or pay off other investors in Ponzi-like fashion. David Wagner now awaits sentencing for his crimes.”
According to the Indictment filed in Manhattan federal court:
From at least in or about December 2013 through at least in or about 2017, WAGNER, the chief executive officer of Downing, and Lawrence, the president of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”). WAGNER and Lawrence, and others acting at their direction, solicited more than approximately $8 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing.
After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and Lawrence, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and employee investments were the overwhelming source of funding. Employee-investors also learned that WAGNER and Lawrence had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue. While the particular formulation of these misrepresentations shifted over time, WAGNER and Lawrence systematically sought and obtained employee-investor money through materially false and misleading statements.
Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER, Lawrence, and several Downing entities alleging claims based on, among other things, fraud, WAGNER and Lawrence continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation. In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and Lawrence to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities. A majority of the over $1.5 million raised by WAGNER and Lawrence through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.
Finally, in or about January 2017, WAGNER obtained a $400,000 loan and $100,000 grant from the Connecticut Department of Economic and Community Development (“CTDECD”) for Cliniflow on the basis of materially false statements made by WAGNER to the CTDECD. WAGNER transferred a majority of the funds obtained from the State of Connecticut, which were required to be used for Cliniflow’s purported relocation from New York to Connecticut, to other Downing entities and also used a portion of the funds to purchase a luxury car for his daughter.
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WAGNER, 54, of East Greenwich, Rhode Island, pled guilty to two counts of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of the plea agreement with the Government, Wagner agreed to forfeit $549,000 in United States currency and pay restitution of $7,850,000 to victims of his criminal conduct.
WAGNER will be sentenced by Judge Hellerstein on January 11, 2021, at 11:00 a.m.
The case against co-defendant Marc Lawrence is still pending[1].
Ms. Strauss praised the work of the Federal Bureau of Investigation, and thanked the U.S. Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Sagar K. Ravi are in charge of the prosecution.
[1] The charges against Marc Lawrence contained in the Indictment are merely accusations, and he is presumed innocent unless and until proven guilty.
Camaroon Man Pleads Guilty to Defrauding Bourbonnais BankRead the Press Release
PEORIA, Ill. – A citizen of Cameroon, Lovette Namatinga, 33, entered pleas of guilty this morning to defrauding a Bourbonnais, Ill., bank. Namatinga pleaded guilty to all counts of the indictment immediately prior to jury selection as his trial was about to begin in Peoria, Ill., before U.S. District Judge James E. Shadid. Sentencing for Namatinga has been scheduled on Jan. 7, 2021.
Namatinga, of Owings Mills, Md., has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 7, 2019, at Washington Dulles International Airport by FDIC Office of Inspector General agents.
Today, Namatinga pleaded guilty to defrauding Municipal Trust and Savings Bank, Bourbonnais, Ill. Namatinga admitted that he carried out the fraud from about February to April 2019, by falsely representing to the bank that the secretary of one of the bank’s customers requested that cashier’s checks be sent to Namatinga’s fraudulent company known as Keiko San Products Alimenticious, LLC. Namatinga is the registered agent for Keiko, and the four checks were mailed to his home address. Once the checks were deposited into Keiko bank accounts, Namatinga then transferred money from those accounts to his personal account or withdrew cash from those accounts. The loss to the bank was approximately $140,000.
In addition to the fraud committed through Municipal Trust & Savings Bank, Namatinga used his fraudulent business and multiple associated bank accounts to deposit and launder fraud proceeds from various other financial institutions throughout the United States.
For each offense of bank fraud (four counts) and wire fraud (four counts), the statutory penalty is up to 30 years in prison and a fine of up to $1,000,000.
The charges are the result of an investigation by the FDIC Office of Inspector General. Assistant U.S. Attorneys Eugene L. Miller and Keith Cook are representing the government in the prosecution.
California Executive Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A California insurance and private equity executive pleaded guilty today in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.
Mark Hauser, 59, of Los Angeles, Calif., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 21, 2021.
According to the terms of Hauser’s plea agreement, the government will recommend a sentence of six months in prison, one year of supervised release, a fine of $40,000 and restitution.
Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam. As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam and purported to proctor the test. Instead, Riddell corrected the answers on the exam after she completed it. Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur. Singer also paid Riddell $10,000 for his role in the scheme.
Singer, Riddell and Fox have previously pleaded guilty and are cooperating with the government’s investigation. Williams has agreed to plead guilty. The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
Auto Body Shop Owner Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of Everett and Worcester auto body shops pleaded guilty today to a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.
Adam Haddad, 43, of Shrewsbury, pleaded guilty to three counts of aiding the preparation of false tax returns before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for Jan. 13, 2021. Haddad was charged in August 2020.
For tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.
The charging statue provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
Auburn Man Sentenced for Making False Statements to FBI about His Involvement in Distributing ISIS PropagandaRead the Press Release
Montgomery, Alabama – On Thursday, September 17, 2020, Nayef Amjad Qashou, a 26-year-old man residing in Auburn, Alabama, was sentenced to 57 months in prison for making false statements to the FBI during a terrorism investigation, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charge James Jewell. There is no parole in the federal system.
According to court documents and statements made in open court, a few years prior to 2018, the FBI began to monitor Qashou after they received tips concerning some erratic behavior that indicated he might have an interest in joining ISIS (Islamic State of Iraq and Syria). Then, on September 26, 2018, Qashou was interviewed by agents and task force officers from the FBI who suspected that he was sharing videos supporting international terrorism. During the interview, Qashou admitted to compiling and distributing what he called "educational" videos relating to Islam. However, he told agents that he only compiled 37 videos and he misrepresented the nature and content of the videos. As the investigation continued, agents discovered that Qashou distributed some 115 videos to other individuals and that the videos consisted of ISIS propaganda. Ultimately, Qashou admitted he knowingly lied about the number and content of the videos in order to protect individuals depicted in them and to impede the investigation into his actions. It was also revealed during the sentencing hearing that Qashou had previously traveled to Jordan and attempted to cross into Syria to join ISIS, but he was prevented from doing so by Jordanian officials.
After completing his prison sentence, Qashou will serve three years of supervised release. During that time he will be subject to a number of special conditions imposed by the judge, to include participation in a mental health treatment program and monitoring of his computer and electronic device usage by the United States Probation Office.
The Federal Bureau of Investigation (FBI) investigated this case, with assistance from the Auburn Police Division. Assistant United States Attorneys Joshua Wendell and Robert Nichols prosecuted the case.
Antitrust Division Supports Modernizing Merger Filing Exemptions for Certain InvestmentsRead the Press Release
On Monday, September 21, Assistant Attorney General Makan Delrahim concurred in the Federal Trade Commission’s (FTC) Federal Register publication of a Notice of Proposed Rulemaking (NPRM) to revise the premerger notification rules (the Rules) that implement the Hart-Scott-Rodino Antitrust Improvements Act (HSR).
The NPRM proposes to create a new reporting exemption for certain de minimis investments of 10% or less. The proposed amendments in the NPRM also change the definition of “person,” and make explanatory and ministerial changes to the HSR Rules as well as the HSR Form and Instructions to effect the proposed amendments. In another Advance Notice of Proposed Rulemaking (ANPRM), also supported by the Antitrust Division, the FTC seeks to gather information, related to seven topics, that will help to determine the path for future amendments to the HSR Rules.
“One of my goals as Assistant Attorney General has been to right-size the HSR regime to better account for how the economy has changed in the decades since the HSR regime was first enacted, including changes in the investment landscape and investor behavior,” said Assistant Attorney General Delrahim. “I am pleased to be working with the FTC towards this goal. In particular, I have been an advocate for the creation of a new exemption for certain de minimis investments of 10% or less in order to address the regulatory burdens of an overbroad HSR requirement for certain minority investments that do not raise competition concerns.”
A comment period will follow publication in the Federal Register, and the Antitrust Division encourages all interested stakeholders to submit comments on both the NPRM and the ANPRM. The Antitrust Division is particularly interested in comments on the following features of the NPRM, which will greatly benefit both the Antitrust Division and the FTC as they work collaboratively towards a final rule:
- The Director/Officer Carve-Out: Should this carve-out be removed, given that the new exemption already has carve-outs for competitors and common ownership? How does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?
- The Vendor/Vendee Carve-Out: Should this carve-out be removed? Does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?
Albuquerque woman charged with drug trafficking and firearms possession in Operation Legend caseRead the Press Release
ALBUQUERQUE, N.M. – Jordan Wright, 31, of Albuquerque made an appearance on Sept. 18 in federal court where she was charged with possession of methamphetamine with intent to distribute and possession of a firearm in relation to a drug trafficking crime. A detention hearing is scheduled for Sept. 22.
According to a criminal complaint, on Aug. 19, Wright allegedly coordinated arrangements by cellphone calls and text messages to sell two ounces of methamphetamine. She also allegedly provided her backpack and a handgun as collateral during the transaction. At the time of her arrest, she allegedly possessed two baggies containing methamphetamine
A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case as part of the Department of Justice's Operation Legend, a coordinated federal and local law enforcement initiative to fight gun and dangerous crime.
Sunday 20 September 2020
“SCO” Gang Member Sentenced on Drug Trafficking ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Braddock, Pennsylvania, has been sentenced in federal court to nine years’ imprisonment and four years supervised release on his conviction of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Jaymare Jackson, age 30.
According to information presented to the court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Jackson and other individuals were identified as members and/or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region..
In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Jackson, along with 33 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that Jackson is a member of SCO and, based upon intercepted communications occurring over telephones that were intercepted, law enforcement confirmed that Jackson was a heroin and cocaine base distributor. The Court was also advised that on June 12, 2019, Jackson illegally possessed two firearms as well as items used to package and distribute controlled substances. Mr. Jackson acknowledged that he knew, at that time, that he could not possess the firearms after having been previously convicted of carrying a firearm without a license. Federal law prohibits anyone who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Jackson. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police.
Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference in Beckley TomorrowRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will hold a press conference in Beckley on Monday, September 21, 2020 at approximately 12:00 p.m. to discuss developments in the case of United States v. Natalie Cochran.
Where: Robert C. Byrd U.S. Courthouse and Federal Building
110 North Heber Street
Beckley, WV
When: Monday, September 21, 2020 @ approximately 12:00 p.m.
Follow us on Twitter: SDWVNews and USAttyStuart
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Saturday 19 September 2020
Statement by U.S. Attorney Jason Dunn Regarding Death of Supreme Court Justice Ruth Bader GinsburgRead the Press Release
“Along with the entire US Attorney’s Office for the District of Colorado, I am saddened by the loss of Justice Ginsburg. She was a dedicated jurist who believed deeply in the constitutional principles she defended, including equality for all people. When I think of the truly outstanding attorneys who work in my office, I cannot help but believe that many chose legal careers due at least in part to the groundbreaking career and advocacy of Justice Ginsburg. And for that, I am indeed grateful.”
Man from Oglala, South Dakota, Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that an Oglala, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
Clifford Running Hawk, age 44, appeared before U.S. Magistrate Judge Daneta Wollmann on September 11, 2020, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in a federal prison, and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Running Hawk is alleged to have operated a motor vehicle in a negligent manner, including driving while under the influence of alcohol and speeding, which caused a crash with an oncoming vehicle. One of the passengers in that vehicle died from the injuries she sustained in the crash.
The charge is merely an accusation and Running Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Running Hawk was released on bond pending trail. A trial date has been set for November 17, 2020.
Bullhead Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Leland Brown, age 44, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 20, 2020, Brown assaulted an individual with shod feet with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Standing Rock Sioux Tribe Bureau of Indian Affairs Law Enforcement Services. Assistant U.S. Attorney Kirsten E. Jasper is prosecuting the case.
Brown was released on bond pending trial. A trial date has not been set.
Friday 18 September 2020
Winchester Man Pleads Guilty to Making False Statements During Acquisition of a FirearmRead the Press Release
CONCORD - Tyrone Morris-Janey, 30, of Winchester, pleaded guilty in federal court to making false statements during the acquisition of a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, ATF and Boston Police Department personnel recovered a Ruger model LCP, .380 caliber pistol with an obliterated serial number. The BPD crime laboratory was able to recover the serial number and ATF traced the firearm to Morris Janey. A further investigation revealed that from January 8, 2019, through July 31, 2019, Morris Janey purchased six firearms. During the purchases of the firearms, Morris Janey claimed that he was the actual purchaser of the firearms which was not true. He later admitted that he purchased the firearms for another person. In addition, during the purchase of three of the firearms, Morris Janey falsely claimed he lived at a New Hampshire address.
Morris-Janey is scheduled to be sentenced on January 24, 2021.
“Lying to obtain firearms is a federal crime,” said U.S. Attorney Murray. “Criminal actors often have others purchase guns for them because they cannot lawfully purchase the guns themselves. In order to maintain public safety, we will not hesitate to bring federal charges against those who make false statements in order to buy guns.”
“Firearms trafficking continues to be a top priority for ATF and our law enforcement partners. ATF is committed to identifying and disrupting the sources of illegal firearms which jeopardize the safety of our communities,” said Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Boston Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Watervliet Man Sentenced to 15 Years for Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Aaron Vroman, age 30, of Watervliet, New York, was sentenced today to 180 months in prison for sexually exploiting a child.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Vroman admitted that, on at least four occasions, he secretly video-recorded a minor using the bathroom for the purposes of obtaining sexually explicit images of the victim’s genitals. Vroman also admitted that he touched that same victim’s genital area over the victim’s underwear while the victim was sleeping and that he video-recorded that conduct. Vroman also possessed images of child pornography on his laptop computer that did not involve the victim and that he obtained via the internet, including videos depicting the sexual abuse and exploitation of pre-pubescent girls.
Senior United States District Judge Norman A. Mordue also imposed a 25-year term of supervised release, which will start after Vroman is released from prison. As a result of his conviction, Vroman will be required to register as a sex offender upon his release from prison.
Vroman’s case was investigated by HSI, with assistance from the New York State Police and the Colonie Police Department. This case was prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown and Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.