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Wednesday 16 September 2020
District Man Sentenced to 8 1/2 Year Prison Term for String of Robberies Targeting Women in Columbia HeightsRead the Press Release
WASHINGTON – Thadduse Hartridge, 19, of Washington, D.C. was sentenced on September 16, 2020 by the Honorable Judge Judith A. Smith of the Superior Court for the District of Columbia to 102 months’ (8 ½ years’) incarceration to be followed by three years of supervised release, announced Acting U.S. Attorney Michael R. Sherwin, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Hartridge previously pled guilty in the Superior Court for the District of Columbia to one count of Carjacking for an offense that occurred on January 17, 2019, one count of Robbery for an offense that occurred on January 16, 2019, and one count of Assault with Intent to Commit Robbery for an offense that occurred on December 12, 2018.
In each of the three offenses, Hartridge, along with his co-defendant, Kaveyon Andrews, targeted female victims during the day while they were walking alone near alleyways in the Columbia Heights neighborhood. In each offense, the defendants used gratuitous force and violence to rob the victims of their property. The defendants used weapons, including a metal baton, a knife, and a brick to assault the victims, causing serious physical injuries, including compound fractures, lacerations, and head injuries. After the offense on January 17, 2019, Hartridge and his co-defendant were identified from high resolution security footage depicting the carjacking offense that was broadcasted over news media outlets by MPD. The co-defendant turned himself in and provided a statement to law enforcement, in which he acknowledged his role in the three offenses. In addition, Washington Metropolitan Area Transit Authority (WMATA) footage and metro card data showed that both defendants travelled from Anacostia metro station to the Columbia Heights metro station just before each of the offenses, and there was additional security footage obtained capturing a portion of the January 16, 2019 offense.
The co-defendant, Kaveyon Andrews, is scheduled to be sentenced before Judge Smith on the same counts on November 10, 2020.
In announcing the sentence, Acting U.S. Attorney Michael R. Sherwin, and MPD Chief Newsham commended the work of those law enforcement officers, including the Metro Transit Police Department officers, who assisted in the investigation of the cases. They also cited the efforts of Assistant U.S. Attorney Lauren B. Goddard, who investigated and prosecuted the cases from the U.S. Attorney’s Office for the District of Columbia. They also thanked Paralegal Specialist Antoinette M. Sakamsa.
Corporate Embezzler Sentenced to 33 Months in PrisonRead the Press Release
A woman was sentenced today in U.S. District Court for embezzling $823,714 from her Tulsa employer. Leslie Michelle Clark, 53, of Tulsa, previously pleaded guilty to one count of bank fraud on June 10.
U.S. District Judge Gregory K. Frizzell sentenced Clark to 33 months in federal prison followed by five years of supervised release. He further ordered Clark to pay $823, 714 in restitution to her former employer.
“The U.S. Attorney’s Office white collar prosecution team won’t stand idly by while thieves like Leslie Clark embezzle from Oklahoma businesses,” said U.S. Attorney Trent Shores. “Fraudsters in this district can expect to find themselves in a federal courtroom and then in federal prison. On top of that, Leslie Clark will have to pay back the more than $800,000 of ill-gotten gains she embezzled.”
Clark was hired as a financial controller at a Tulsa company in 2014. As controller, she supervised all financial matters, including contracting, billing and paying vendors. In July 2018, Clark created a fictitious consulting company, opened an account for it, and caused her employer to pay for fabricated services never rendered. Clark falsely and fraudulently told colleagues at the company that the payments were for consulting services and presented false and fraudulent invoices from her fictitious company in support of her scheme.
Clark will report to a U.S. Bureau of Prisons facility on Jan. 6, 2021.
The FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Co-owner of Ross Pawn Shop Sentenced to Probation, Community Service for Resale SchemeRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to one year of probation and ordered to perform 150 hours of community service on her guilty plea to mail fraud and engaging in monetary transactions in property derived from specified unlawful activity, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Aliya Zaman, 51.
According to information presented to the court, Aliya Zaman and her husband owned and operated Ninja Babcock, a pawn/resale shop in Ross Township, Pennsylvania. The Zamans knowingly and willfully purchased health and beauty aids (HBAs), stolen by opioid-dependent individuals from various commercial retailers, such as Rite-Aid, Wal-Mart and Giant Eagle, for pennies on the dollar. The stolen HBAs were then resold through Amazon.
Prior to imposing sentence, Judge Hornak stated that although Aliya Zaman pled guilty to financial crimes, her conduct fueled the opioid addiction of numerous Pittsburgh residents.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Federal Bureau of Investigation, Pennsylvania Office of Attorney General, City of Pittsburgh Bureau of Police, Shaler Township Police Department and Ross Township Police Department for the investigation leading to the successful prosecution of Aliya Zaman.
Cambridge Woman Pleads Guilty to Stealing Social Security and SNAP BenefitsRead the Press Release
BOSTON – A Cambridge woman pleaded guilty today to stealing over $80,000 in Social Security and Supplemental Nutrition Assistance Program (SNAP) benefits.
Phaedra M. Sheets, 45, pleaded guilty to two counts of theft of public funds. In February 2020, Sheets was charged by indictment and arrested. Sentencing has been scheduled for December 17, 2020.
Sheets’ mother was receiving Social Security benefits and SNAP benefits at the time of her death in November 2009. Her death was never reported to the Social Security Administration (SSA) nor to the Massachusetts Department of Transitional Assistance, and the agencies continued to pay monthly benefits on her behalf. When SSA attempted to contact Sheets’ mother to perform a review of her benefits claim, Sheets posed as her mother and directed SSA to deposit her mother’s benefits into various bank accounts, from which Sheets withdrew the funds. Sheets also impersonated her deceased mother in interactions with the Department of Transitional Assistance and used her mother’s SNAP card to make purchases for nearly nine years after her death.
From December 2009 to September 2018, Sheets stole approximately $71,636 in Social Security benefits and approximately $13,923 in SNAP benefits.
The charge of theft of public funds provides for a sentence of up to 10 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; Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Buffalo Man Sentenced for Assaulting A VA Police OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Darnell Curry, 27, of Buffalo, NY, who was convicted of assaulting, resisting, or impeding a federal officer, was sentenced to serve six months in prison by U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
Assistant U.S. Attorney John D. Fabian, who handled the case, stated that on February 19, 2020, while at the Starbucks inside the Veterans Affairs Medical Center on Bailey Avenue in Buffalo, the defendant engaged in a verbal argument with a female employee.
Three Department of Veterans Affairs Police officers approached Curry in response to a complaint about the verbal argument. When the defendant did not hear or acknowledge verbal commands, an officer touched Curry's shoulder. The defendant turned and a scuffle with the officers ensued. During the scuffle, Curry pulled an officer by the vest and into his body. In the process, the defendant struck the officer in the head, leaving a mark on his cheek below his left eye. Physical resistance by the defendant resulted in the officers taking Curry to the ground, handcuffing, and detaining him.
The sentencing is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri, and the VA Medical Center Police, under the direction of Chief Michael Steinmetz.
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Buffalo Man Going to Prison for 9 Years for Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Notto, 26, of Buffalo, NY, who was convicted of distribution of child pornography, was sentenced to serve 108 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Caitlin M. Higgins, who handled the case, stated that in March 2017, the defendant met the then-13-year-old minor victim through a teen social network. The minor victim resided in Phoenix, Arizona, and told Notto her age. On July 28, 2017, the defendant, seeking to entice the minor victim to engage in sexual activity, sent the minor victim three images constituting child pornography from his computer. In addition, from March through July 2017, Notto repeatedly engaged in sexually explicit conversations with the minor victim. On at least two occasions, the defendant requested that the child take a sexually explicit picture of herself.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Brooklyn Man Pleads Guilty to Stealing Mail in LiverpoolRead the Press Release
SYRACUSE, NEW YORK – Kevin Ronny Williams, age 23, of Brooklyn, New York, pled guilty today to one count of possession with the intent to unlawfully use a United States Postal Service key, and one count of theft of mail, announced Acting United States Attorney Antoinette T. Bacon, Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division, and Matthew Modafferi, Special Agent in Charge of the United States Postal Service-Office of Inspector General, Northeast Area Office.
As part of his guilty plea today, Williams admitted that during the night of March 5, 2020, into the early morning hours of March 6, 2020, he used a United States Postal Service (USPS) key that he obtained from a USPS employee to unlawfully open mail collection boxes in Liverpool, New York. Williams wore a USPS letter carrier uniform jacket and carried USPS mail satchel that he also obtained from a USPS employee. Williams stole mail contained in the collection boxes, including 49 pieces of first-class mail, all of which was later recovered. Kenny Ronny Williams was arrested by an Onondaga County Sheriff’s Deputy on patrol who noticed his (Williams') car in a vacant parking lot in Clay, New York. After a short vehicular and foot chase, Williams was taken into custody, and the USPS uniform jacket, postal key, mail satchel, and stolen mail were recovered.
Sentencing is scheduled for January 20, 2021. The charge of possession with the intent to unlawfully use a United States Postal Service key carries a maximum sentence of 10 years in prison and the charge of theft of mail carries a maximum sentence of 5 years in prison. Both offenses carry a fine of up to $250,000, and a term of supervised release of 3 years following any sentence of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Former USPS employee Quayshaun Mitchell is also charged by criminal complaint in connection with these offenses. His case remains pending and he is presumed innocent unless and until found guilty.
This case is being investigated by the United States Postal Inspection Service (USPIS) and the United States Postal Service-Office of Inspector General (USPS-OIG), and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Boston Man Indicted on Charge of Leaving Residential Re-Entry CenterRead the Press Release
BOSTON – A Boston man was indicted yesterday in federal court in connection with leaving a residential re-entry center where he was serving the remainder of his federal sentence for drug possession.
Derek Rego, 33, of Boston, was indicted by a federal grand jury on one count of escape. Rego was previously charged by criminal complaint on July 31, 2020.
According to the charging documents, in September 2012, Rego was sentenced in the District of Massachusetts to 120 months in prison for a drug conviction. On Jan. 8, 2020, Rego was transferred from a correctional institution to a residential re-entry center in Boston to serve the remainder of his confined sentence. On April 3, 2020, Rego was placed on escape status and the U.S. Marshals Service was notified. On May 4, 2020, Rego was arrested by law enforcement in Boston on domestic violence charges.
The charging statute provides for a mandatory minimum sentence of five years in prison, up to three years of supervised release and a fine of $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; John Gibbons, United States Marshal for the District of Massachusetts; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bergen County Attorney Indicted for Fraudulently Obtaining Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, attorney who allegedly fraudulently obtained nearly $9 million in federal Paycheck Protection Program (PPP) loans has been indicted, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division announced
Jae H. Choi, 48, of Cliffside Park, New Jersey, previously charged by complaint, was charged by indictment on Sept. 15, 2020, with four counts of bank fraud, four counts of false statements on a loan application, one count of aggravated identity theft, and one count of money laundering. The indictment seeks to forfeit 11 bank accounts and one investment account for the proceeds of the fraud, as well as a million-dollar home Choi purchased in Cresskill, New Jersey. An arraignment date has not yet been set.
According to documents filed in this case and statements made in court:
Choi submitted four fraudulent PPP loan applications to four lenders on behalf of four businesses that purportedly provided educational services. Choi fabricated the existence of hundreds of employees, manipulated bank and tax records, and falsified a driver’s license on the applications.
Choi falsely represented to the lenders that the companies controlled by him had hundreds of employees and paid over $3 million in monthly wages. In one instance, Choi emailed a lender falsely claiming that he just told 150 of his employees that they were losing their jobs because the PPP loan had not yet come through, and that he had “watched grown men and women crying.” Choi wrote in that same email that he “sincerely hope[d]” that the lender’s employee “would never find [himself] in this kind of situation.”
Based on Choi’s alleged misrepresentations, three of the four lenders funded three businesses with an approximately $3 million PPP loan each. Choi received a total of nearly $9 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Choi used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to buy a nearly $1 million home in Cresskill, New Jersey, fund approximately $30,000 in remodeling and other improvements, and invest millions more in the stock market through an account held in the name of his spouse.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; the Small Business Administration Office of the Inspector General; and the Social Security Administration – Office of the Inspector General.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the District of New Jersey and Trial Attorney Andrew Tyler of the Fraud Section of the Department of Justice, Criminal Division.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The charges and allegations in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Auburn, Washington, man charged for being a felon in possession of firearmsRead the Press Release
(Seattle)—A 32-year-old Auburn, Washington, man was arrested today and charged federally with being a felon in possession of a firearm, announced U.S. Attorney Brian T. Moran. AL M. TALAGA was arrested without incident late yesterday. He is scheduled to appear in U.S. District Court in Seattle at 2:00 today.
According to the criminal complaint, on June 1, 2020, Seattle Police officers responded to reports of a break-in and looting at the Sneaker City store on Pike Street in downtown Seattle. When police arrived, various suspects were running away from the store. Witnesses said some of the looters had loaded merchandise into a Dodge Magnum that was parked near the store. In checking the car for suspects, police officers noted a number of items that appeared to have been taken from the store, as well as a firearm in the driver’s side door panel of the car.
Police impounded the car and traced its ownership to TALAGA. A court-authorized search of the car revealed that there were two firearms in the car. In addition to the loaded .40 caliber Glock in the side pocket of the door, investigators found a second loaded handgun under the floor mat on the passenger side of the car. A law enforcement database check verified that the .40 caliber pistol under the floor mat had been reported stolen in 2019 from a residence in Tacoma during a home invasion robbery.
TALAGA is prohibited from possessing firearms due to a 2005 conviction in King County Superior Court for Second Degree Robbery.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Being a felon in possession of a firearm is punishable by up to five years in prison.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Auburn Man Sentenced for Possessing Firearm after Domestic Violence ConvictionRead the Press Release
PORTLAND, Maine: An Auburn man was sentenced today in federal court in Portland for possessing a firearm after being convicted of a misdemeanor crime of domestic violence, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge D. Brock Hornby sentenced Willie Richard Minor, 59, to time served (two years, eight months and 10 days) and three years of supervised release. Minor was convicted following a two-day jury trial in February 2020.
According to court records and evidence presented at trial, in June 2010, Minor was convicted of Assault in Maine Superior Court. The victim of the assault was his wife at the time. As a result of that conviction, Minor was prohibited from possessing firearms. In November 2016, Minor admitted to having a gun in an interview with the Auburn Police Department. The police subsequently recovered the gun he had described.
Minor was originally convicted and sentenced on the federal charge after a trial in December 2017. While the case was pending on appeal, the Supreme Court of the United States issued a decision, Rehaif v. United States, that changed what the government is required to prove in certain federal firearm possession cases. As a result, the parties agreed to have the original conviction vacated, and the case was remanded for a new trial. At the second trial, the government was required to prove not only that Minor had been convicted of assaulting his wife, but also that he knew he had been so convicted and was aware of certain details of the conviction.
The Auburn Police Department, the Mechanic Falls Police Department, the Maine State Police Crime Laboratory, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Auburn Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Leon Mandigo, 33, of Auburn, pleaded guilty in federal court to drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation, the Drug Enforcement Administration learned that Mandigo was obtaining fentanyl from a source located in Massachusetts. On March 7, 2018, agents learned that Mandigo intended to travel to Massachusetts to purchase 200 grams of fentanyl and later observed him participate in a hand-to-hand exchange with a known drug trafficker.
After the transaction, the New Hampshire State Police stopped a vehicle in which Mandigo was a passenger. During the stop, he pulled an orange bag from his pants and threw it on the ground where a trooper later picked it up. The bag contained approximately 184 grams of fentanyl.
Mandigo is scheduled to be sentenced on December 30, 2020.
“The interstate transportation of fentanyl into New Hampshire endangers all of our citizens,” said U.S. Attorney Murray. “Public health and safety have been seriously undermined by the distribution of this drug. In order to counteract this dangerous and illegal trade, we will continue to work tirelessly to identify and prosecute the traffickers who are responsible for fentanyl sales in the Granite State.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
Agencies participating in this investigation are part of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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Atlanta’s former Chief Financial Officer Jim Beard indicted for fraud, possessing machine guns, and obstructionRead the Press Release
ATLANTA – The City of Atlanta’s former Chief Financial Officer, Jimmie “Jim” A. Beard, has been charged in an eight-count federal indictment with wire fraud, theft from the government, possession of machine guns, making a false statement, and obstructing federal tax laws.
“Jim Beard allegedly abused his position as one of the most powerful executives in the City of Atlanta to commit federal crimes for his own gain, including stealing tens of thousands of dollars of the public’s money, possessing machine guns that members of the public cannot have, and obstructing an IRS audit,” said U.S. Attorney Byung J. “BJay” Pak. “Those in government leadership positions have an obligation to set the organization’s culture for ethical conduct. As alleged by the Grand Jury, Beard fundamentally betrayed that obligation.”
“This alleged fraud was not only a violation of the oath taken by this pubic official, but a theft of the public's trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI's top priorities and we continue to work with our local and federal partners to protect citizens against officials who abuse that trust.”
“Jimmie A. Beard systematically defrauded the City of Atlanta and impeded the IRS from assessing his true tax liability,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “His desire for money, along with the power and luxuries it buys, drove him to allegedly perpetrate crimes violating his position and public trust. Thanks to the financial expertise of IRS-CI special agents, who worked side-by-side with our federal partners to uncover these schemes, Beard will now face the consequences of his actions.”
“ATF will continue to dedicate federal resources in conjunction with crucial Federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in the Atlanta area,” said Beau Kolodka, Assistant Special Agent in Charge, ATF Atlanta Field Division.
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2011 to May 2018, Beard served as the Chief Financial Officer (“CFO”) of the City of Atlanta. As CFO, Beard directed and managed the Department of Finance. In that capacity, Beard listed his “primary responsibility” as “the oversight and management of the City’s financial condition.”
In June 2012, the City of Atlanta issued Beard a credit card for official City of Atlanta business-related purchases. Before receiving the credit card, Beard signed a user agreement acknowledging the terms and conditions of its use, including agreeing that the credit card “shall be used for business purposes only,” and that “personal charges” were “prohibited.” Further, in 2014, the Department of Finance – which Beard oversaw – issued the City of Atlanta Credit Card Program Policy that imposed terms and conditions on the use of its credit cards, including that “credit card users should use good judgment when using a City credit card.”
Based on his position as CFO and director of the Department of Finance, the City of Atlanta required Beard to complete annually a Financial Disclosure Statement under penalty of perjury. In March 2014, Beard filed a Financial Disclosure Statement, on which Beard attested that in 2013, he was not “self-employed or employed by any corporation, partnership, proprietorship, [or] other business entity besides the City of Atlanta.”
According to the City of Atlanta’s Code of Ethics, City of Atlanta employees may be reimbursed for “travel, meals, and lodging, provided to an official or employee in connection with speaking engagements, participation on professional or civic panels, teaching, or attendance at conferences in an official capacity;” – but the officials or employees “[w]ithin 30 days of receipt of reimbursements … must report such reimbursements on a form [known as a Travel Disclosure Report].” From 2013 to 2018, Beard filed no Travel Disclosure Reports for any of the travel reimbursements that he received.
Between August 2013 and March 2018, Beard devised and executed a scheme to defraud to obtain money and property from the City of Atlanta for private use, including using City of Atlanta funds: (1) to pay for personal travel expenses for himself, his family, and his travel companions; (2) to buy items for personal use, including two machine guns; (3) to pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, but Beard kept the money and did not give the reimbursement funds to the City of Atlanta; and (4) to pay for travel that Beard subsequently claimed to the IRS were travel expenses related to his sole proprietorship consulting work that Beard never disclosed to the City of Atlanta on any Financial Disclosure Statement.
In total, Beard allegedly defrauded the City of Atlanta out of tens of thousands of dollars. By way of example only:
• Beard’s City of Atlanta credit card was used to pay more than $3,800 for hotel rooms at the J.W. Marriott Hotel in Chicago for use by Beard’s step-daughter while attending the Lollapalooza Music Festival in 2015 and 2016, though Beard was not even in Chicago.
• Beard’s City of Atlanta credit card was used to pay more than $1,350 for a hotel room at the St. Regis Hotel in Atlanta, including $200 per night for an upgraded room, $70 for private dining, and $80 for rose-petal turndown service, even though: Beard lived in Atlanta; Beard’s wife flew from Florida to stay at the hotel with him; and Beard's work calendar listed the notation “Do Not Schedule – PTO,” (a common initialism for “Paid Time Off”) during one of the days that Beard and his wife stayed at the hotel.
• Beard kept thousands of dollars paid by third parties to reimburse Beard for travel related expenses to attend conferences and meetings, even though the City of Atlanta paid for Beard’s travel, and Beard never filed Travel Disclosure Reports to notify the City of Atlanta that the reimbursements had been paid.
• Beard ordered two custom-built machine guns that he caused to be delivered to Atlanta City Hall, after which Beard illegally took possession of the machine guns for his personal use – even though it was illegal for the machine guns to be possessed by anyone other than law enforcement and military personnel. Beard then had the City of Atlanta issue a $2,641.90 check to pay for the machine guns. In connection with the purchase, Beard completed and submitted a U.S. Department of the Treasury tax exemption form, in which he falsely certified that the machine guns were for the exclusive use of the Atlanta Police Department.
In 2013, Beard earned a salary of approximately $221,108 for his position as CFO for the City of Atlanta. In a Financial Disclosure Statement that Beard filed in March 2014, he stated under penalty of perjury that in 2013 he was not “self-employed or employed by any corporation, partnership, proprietorship, [or] other business entity besides the City of Atlanta.” Yet, Beard submitted to the IRS under penalty of perjury a Form 1040 Individual Income Tax Return for tax year 2013, in which Beard claimed that he owned a personal consulting business, and which incurred more than $33,500 in alleged business losses in 2013, including $12,000 for travel expenses and $7,115 for deducible meals and entertainment expenses.
In July 2015, the IRS advised Beard that it was auditing his 2013 tax return, and requested that Beard provide documentation to support his purported personal consulting business expenses. In his submissions to the IRS, Beard falsely claimed that he incurred airfare, hotel, and meal expenses related to his personal consulting business – when in fact Beard’s submissions to the IRS included: (1) receipts for airfare and hotels that Beard paid for using his City of Atlanta credit card (and that Beard had previously told the City of Atlanta were related to his job as CFO); (2) expense reports for personal meals with his wife and personal companions; and (3) altered receipts that hid from the IRS the fact that the charges were incurred in connection with Beard’s work for the City of Atlanta. Based on Beard’s acts and submissions, the IRS allowed Beard to deduct $12,000 in business travel expenses.
On September 15, 2020, a grand jury returned an indictment against Jimmie “Jim” A. Beard, 56, of Atlanta, Georgia, on eight federal charges, including wire fraud, federal program theft, possession of machine guns, making a false entry on a U.S. Government application, and obstructing the internal revenue laws. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the United States’ burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service - Criminal Investigations are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity Section, and Trevor C. Wilmot are prosecuting the case.
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.
Armed Robber Sentenced to 300 Months in Federal PrisonRead the Press Release
A man who robbed five Tulsa and Sand Springs businesses was sentenced Tuesday in federal court to 300 months in prison, announced U.S. Attorney Trent Shores.
John Michael McIntosh, 23, of Tulsa, will serve an additional five years on supervised release. Chief U.S. District Judge John E. Dowdell further ordered McIntosh to pay $1,127.25 in restitution.
“Let it be known that we will aggressively prosecute gun toting robbers like John McIntosh and seek lengthy federal prison sentences. After robbing five businesses in the Tulsa metro-area, McIntosh earned every day of his 25-year sentence,” said U.S. Attorney Trent Shores. “The credit goes to our law enforcement partners and Assistant U.S. Attorneys Mark Morgan and Robert Raley who collectively performed great work to bring McIntosh to justice.”“
On Nov. 1, 2019, McIntosh pleaded guilty to five counts of obstructing, delaying, and affecting commerce by robbery and three counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
In his plea agreement, McIntosh admitted that he robbed a Kentucky Fried Chicken in Sand Springs on Feb. 17, 2019; a Waters Liquor Store in Tulsa on Feb. 19, 2019; and a Liquor Mart in Tulsa on Feb. 21, 2019. He further admitted to robbing two QuikTrips, located in Tulsa and in Sand Springs, on Feb. 23. In all the robberies, McIntosh threatened employees while brandishing a handgun. During one of the robberies, the defendant pointed a gun at the cashier and demanded money from the register, threatening to “blow her f***ing face off” if she didn’t comply.
The Sand Springs and Tulsa Police Departments and FBI conducted the investigation. Assistant U.S. Attorneys Mark R. Morgan and Robert T. Raley prosecuted the case.
Argentine Citizen Sentenced to 35 Years in Prison for Child Sexual Exploitation and Distribution of Child Pornography over the Dark WebRead the Press Release
LAS VEGAS, Nev. – Andres Rafael Viola, 36, an Argentine citizen residing in Las Vegas, was sentenced today to 35 years in federal prison for repeatedly sexually assaulting a child, producing images of the sexual abuse, and possessing hundreds of images and videos of child sexual assault, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).
Viola pleaded guilty in February 2020 to sexual exploitation of children and possession of child pornography. In addition to imprisonment, U.S. District Judge Richard F. Boulware II sentenced Viola to a lifetime term of supervised release. Under the Sex Offender Registration and Notification Act (SORNA), Viola must register as a sex offender. Viola’s sentence also includes a $10,000 assessment pursuant to the Justice of Victims of Trafficking Act.
According to court documents, in May 2019, the National Center for Missing and Exploited Children (NCMEC) received a report from Yahoo, Inc. indicating that a user received child pornography sent by Viola, who was using the dark web Tor network to distribute images of child sexual assault.
On June 7, 2019, federal law enforcement arrested Viola at his Las Vegas residence. Law enforcement determined that Viola had supervisory control over a child victim. A forensic examination of electronic devices that were seized from Viola’s home revealed nearly 350 child pornography images and video, including Viola’s sexual exploitation of the child victim and a curated collection of child pornography from other victims. Viola had used the dark web to distribute, trade, and share the child sexual assault materials he created of the child victim.
For the hands-on offenses related to the child victim, Viola pleaded guilty in Nevada state court to one count of Sexual Assault of a Child under the Age of 14.
This case was the product of an investigation by HSI and the LVMPD. Assistant U.S. Attorneys Bianca Pucci and Elham Roohani prosecuted the case.
To report child sexual abuse and exploitation, contact the NCMEC at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.
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 Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Albany County Man Sentenced to 80 Years for Child Sexual Exploitation OffensesRead the Press Release
ALBANY, NEW YORK – Douglas Fountain, age 31, of Colonie, New York, was sentenced yesterday to a total of 80 years in prison for 11 felony convictions, including sexually exploiting a child, transporting child pornography, and possessing child pornography.
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).
As part of his guilty plea on August 15, 2019, Fountain admitted that on eight occasions between July 2017 and July 2018, he used cell phones to create videos and images of a minor engaging in sexually explicit conduct, some of which included Fountain engaging in sexual acts with the minor. Fountain also admitted to sharing some of those images on an image-sharing website operated from another country, and to possessing images of child pornography on his laptop computers, including images depicting the sexual abuse and exploitation of pre-pubescent girls.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorney Alicia G. Suarez.
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), and is designed to marshal 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.
20 Year Old Sentenced on Multiple Counts of Distributing Marijuana while Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced Ammanuel Jiel, 20, was sentenced today by United States District Judge Brian C. Buescher to 126 months’ imprisonment after pleading guilty to two counts of distribution of marijuana and possession of a firearm while drug trafficking. He will also serve 3 years of supervised release following his release from prison. There is no parole in the federal system.
Between August 31, 2018 and October 29, 2018, Jiel was responsible for selling marijuana and firearms on numerous occasions to a confidential informant posing as a firearms trafficker. Jiel was personally responsible for the sale of 16 firearms, many of which were stolen or had obliterated serial numbers. Jiel also sold several ounces of marijuana during these firearms sales.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department as part of Project Safe Neighborhood. Project Safe Neighborhood is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer. Jiel’s arrest was also part of Operation South Sudan Soldiers which targeted members of the Trip Set and African Pride street gangs.
Tuesday 15 September 2020
Vermont Man Charged with Hiring Person to Kidnap and Kill a Man in a Foreign Country, and Producing and Receiving Child PornographyRead the Press Release
A federal grand jury in the District of Vermont returned a third superseding indictment today against a Burlington man for conspiring to kidnap and kill a man in a foreign country, murder for hire, and five child pornography offenses.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Christina E. Nolan of the District of Vermont, and Resident Agent in Charge Michael Shea of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) – Burlington, Vermont, made the announcement.
Sean Fiore, 36, was charged with one count of conspiring to kidnap and murder a man in a foreign country from within the United States, one count of producing and attempting to produce child pornography, one count of conspiring to produce child pornography, and one count of receiving and attempting to receive child pornography. Fiore is also charged with using interstate commerce facilities, namely cell phones and the Internet, in the commission of murder-for-hire, and an additional count each of possession and receipt of child pornography, with which he was charged in prior indictments.
Fiore was arrested in May 2019, as part of an operation conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and HSI, that involved executing search warrants on several residences in May 2019, based on cyber tips that were received from the National Center for Missing and Exploited Children. Fiore is currently detained pending trial, and his initial appearance on the superseding indictment will take place before Magistrate Judge John M. Conroy in the District of Vermont on a date yet to be scheduled.
The indictment alleges that between November 2018 and April 2019, Fiore knowingly and intentionally used and caused to be used facilities of interstate and foreign commerce, namely, the Internet and cell phones, with the intent of paying someone to kidnap and murder an adult male in a foreign country. Fiore is alleged to have conspired with that person to have a male victim kidnapped, bound, tortured, and then murdered, so that a video of the torture and killing could be made. Fiore allegedly paid approximately $4,000 for the video to be made.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI. Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Barbara Masterson of the District of Vermont are prosecuting the case with the assistance of the Criminal Division’s Child Exploitation and Obscenity Section and the Justice Department’s Office of International Affairs.
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.
U.S. Attorney’s Office Settles Claims Against Borough of Woodcliff Lake Involving Denial of Permit to Orthodox Jewish Group to Construct Worship CenterRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey today announced an agreement with the Borough of Woodcliff Lake, New Jersey, to resolve allegations that the Borough violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by denying zoning approval for an Orthodox Jewish congregation to construct a worship center on its property.
The proposed consent decree, which was filed today in the U.S. District Court of the District of New Jersey and must still be approved by the Court, would resolve a lawsuit filed by the United States against the borough, which alleged that the borough had prevented Valley Chabad, an Orthodox Jewish congregation that has worshipped in the borough for over 20 years, from constructing a new house of worship. A separate settlement agreement and proposed consent decree have resolved a related lawsuit filed by Valley Chabad against the borough.
“RLUIPA protects the rights of every religious community to worship free of unlawful burdens,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “As our office continues to vigorously protect the civil rights of the Jewish community and all religious communities in our District, we will use every tool at our disposal, including pursuing court-enforceable injunctive remedies. Through our actions today, we have taken steps to ensure that Valley Chabad and its members will no longer face unlawful barriers in their practice of religion.”
“For more than four centuries, religious people from all over the world have sought refuge here,” Assistant Attorney General Eric Dreiband of the Civil Rights Division said. “Often, these people did so to escape persecution by monarchs, dictators, and other despots. Then, when our ancestors established the United States of America, the Founders adopted the First Amendment to the United States Constitution and thereby enacted into law the right of all people to exercise religion. Two decades ago, the Congress extended these protections when it passed the Religious Land Use and Institutionalized Persons Act. That law protects religious people and their institutions from unduly burdensome or discriminatory land use regulations. The United States is, and must always remain, committed to the right of all people to practice their faith and worship together. The United States Department of Justice will continue to fight against any unlawful deprivation of the right of all people to practice their faith. As our ancestors did four centuries ago, today, religious people often gather and worship with those who share their faith. Through this agreement, the Valley Chabad and its members will be able to build a house of worship and to exercise their right to practice their religion freely.”
The complaint alleged that Woodcliff Lake violated RLUIPA by imposing a substantial burden on Valley Chabad’s religious exercise when, on three occasions between 2006 and 2013, Valley Chabad attempted to purchase parcels of property in the borough in order to construct a house of worship and meeting center, called a Chabad house, large enough to meet its needs. In each instance, the borough purchased or re-zoned the parcels, preventing development of a Chabad house. The complaint also alleges that this conduct and the borough’s eventual denial of Valley Chabad’s application for zoning relief to expand on its current property burdened Valley Chabad’s ability to worship freely without furthering a compelling government interest.
As part of the consent decree, the borough will permit Valley Chabad to construct a new Chabad house on its property. The resolution would also enjoin the borough from acting in a manner that violates RLUIPA and require the borough to establish a procedure for receiving and resolving RLUIPA complaints, train its employees on RLUIPA’s requirements, and submit regular reports to the United States and the court on its compliance. In the separate agreement that resolves the related private action, the borough agreed to pay Valley Chabad $1.5 million to resolve its claims for damages and attorney’s fees that arose from the borough’s conduct.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
People who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division and Assistant U.S. Attorney Susan Millenky, of the Civil Rights Unit, Civil Division.
U.S. Attorney’s Office Reaches ADA Settlement with Joe Black’s Bar and Grill and the Hub Pub in Grand Forks, North DakotaRead the Press Release
United States Attorney Drew H. Wrigley announced today that the U.S. Attorney’s Office for the District of North Dakota completed its investigation and entered into settlement agreements with Joe Black’s Bar and Grill and the Hub Pub to resolve allegations that these restaurants violated the Americans with Disabilities Act of 1990 ("ADA"). Both restaurants are owned and operated by Dennis Blackmun and Joe Schneider and are popular establishments in downtown Grand Forks.
The settlement agreements resolve ADA complaints alleging that Joe Black’s Bar and Grill and the Hub Pub were not fully accessible to individuals with disabilities. During its investigation, the U.S. Attorney’s Office found that neither establishment offered dining spaces or black jack gaming spaces to accommodate wheelchairs. As part of the settlement agreements, Joe Black’s Bar and Grill and the Hub Pub will provide accessible dining tables in both restaurant facilities, and both restaurants will also provide an accessible black jack gaming space to accommodate customers using wheelchairs. The Hub Pub, which created an accessible entrance during its 2016 renovations, will provide signage to patrons communicating the location of its accessible entrance.
Under federal law, private entities that own or operate places of "public accommodation," including restaurants and bars, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or raises issue of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Wrigley noted the owners of Joe Black’s Bar and Grill and the Hub Pub cooperated throughout this investigation and he commended their commitment to the ADA. "The corrective measures agreed to by Joe Black’s Bar and Grill and the Hub Pub will give individuals with disabilities an equal opportunity to enjoy two prominent downtown Grand Forks restaurants, as is required by the ADA. We hope other proprietors will proactively comply with this important civil rights law. Our Office remains committed to ensuring that individuals with disabilities will have full and equal access to places of public accommodation in North Dakota."
This matter was handled by Assistant U.S. Attorney Melissa H. Burkland of the District of North Dakota.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate discrimination against individuals with disabilities.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in North Dakota is not accessible to persons with disabilities may file a complaint online at www.ada.gov or contact the U.S. Attorney’s Office at 701-297-7400.
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U.S. Attorney, Tulsa Police Chief, and ATF Assistant Director announce the “2150 Initiative” in memory of Tulsa Police Sergeant Craig JohnsonRead the Press Release
Today, U.S. Attorney Trent Shores, Tulsa Police Chief Wendell Franklin, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Assistant Director of Field Operations Thomas Chittum announced the launch of the “2150 Initiative” in memory of Tulsa Police Sergeant Craig Johnson who was killed in June by a multi-convicted felon with a firearm. Sgt. Johnson’s badge number, 2150, was selected for the initiative as a way to honor his life and his commitment to the Tulsa community. Mayor GT Bynum also joined law enforcement in making the announcement.
The 2150 Initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as those responsible as the “source” of the firearms to prohibited persons.
“At the heart of the 2150 Initiative is reducing violent crime for every citizen in our district,” said U.S. Attorney Trent Shores. “Through this important initiative, we reaffirm our commitment to investigate and prosecute criminals illegally possessing guns, and in doing so honor Sgt. Craig Johnson’s legacy of service.”
“ATF is proud to honor the life and sacrifice of Tulsa Sgt. Craig Johnson by carrying on his mission,” stated ATF Assistant Director of Field Operations Thomas Chittum. “The 2150 Initiative will combine the three pillars of ATF’s strategy to keep Tulsa safe: partnership, intelligence, and enforcement. We will work tirelessly with our partners to identify, investigate, and aggressively prosecute armed criminals and those who arm them. Commit a gun crime in Tulsa and expect to spend a long time in federal prison.”
“Let it serve as a notice—if you are a criminal and you possess a gun, we will go after you. It is another tool in our tool belt to do so,” said Tulsa Police Chief Wendell Franklin. “When I think of this initiative, I think of action, and action is what Craig Johnson was all about. It is fitting that we can carry that on through the 2150 initiative.”
The Tulsa Police Department recently received an $800,000 Crime Gun Intelligence Center (CGIC) grant from the Department of Justice. With this grant, the department added a second NIBIN machine. The Tulsa Police Department also has created a Crime Gun Unit (CGU). This unit focuses and investigates the NIBIN leads developed through the robust NIBIN program within the department as well as shootings, felons in possession, and the sources of the crime guns in Tulsa. All emphasis will be on combating violent crime in Tulsa. An ATF NIBIN contractor is housed within the Tulsa Police Department’s Special Investigations Division (SID) where the CGU is located. The NIBIN contractor works side by side with the CGU investigators and ATF Special Agents to coordinate and investigate the NIBIN leads. To date for 2020, the Tulsa Police Department has seized 1,132 firearms. The TPD SID has been responsible for seizing 261 of those firearms in 2020 (approximately 23% of all the firearms seized by the department). There have been 931 firearms related arrests made by TPD in 2020. Of those arrests, 559 (approximately 60%) have been for Felon in Possession.
Since July, the U.S. Attorney’s Office has charged 30 defendants with firearms offenses, including 23 felons in possession of guns. Other charges include possession of a firearm after being convicted of a misdemeanor crime of domestic violence, making false statements to a firearms dealer and possession of a firearm by an alien illegally in the United States.
Two KC Men Charged with Robbing Family at GunpointRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Missouri, men have been charged in federal court with robbing a family in their home at gunpoint.
Cameron E. Scott, 19, and Chase M. Murphy, 19, were charged in a five-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Sept. 14. Murphy was recently charged in a separate complaint involving business robberies.
The federal criminal complaint charges Scott and Murphy together with one count of conspiracy to commit armed robbery, one count of armed robbery, one count of brandishing a firearm during a crime of violence, one count of stealing a firearm, and one count of possessing a stolen firearm.
According to an affidavit filed in support of the federal criminal complaint, Scott and Murphy (along with an unidentified third man) robbed a group of three juveniles and four adults at gunpoint on March 22, 2020. The affidavit says the three men forced their way into a residence in the 8100 block of Wayne Avenue in Kansas City, Mo., and pointed firearms at multiple victims (mostly members of the same family). They held one of the victims at gunpoint while demanding money and marijuana.
The three men stole $450, a rifle, and a Taurus 9mm semi-automatic pistol then left the residence. Officers saw a car matching the description a witness gave of the robbers’ vehicle. Three men got out of the vehicle and ran into a residence in the 9200 block of Indiana Avenue in Kansas City, Mo. Soon afterward, the driver of the vehicle returned to the car and left. Officers attempted to follow the vehicle but lost sight of it. Scott and Murphy were seen leaving from the back of the residence. When officers announced themselves, they fled into a wooded area. A short time later, Scott and Murphy were seen walking in the tree line near 93rd Street and Grandview Road. Officers tried to approach them, but they fled on foot again. Officers gave chase and ultimately found Scott and Murphy hiding in a creek bed.
Officers searched the residence on Indiana Avenue. In the attic, they found a black suitcase with a Taurus 9mm semi-automatic pistol (which matched the description of the firearm taken during the robbery) and a Smith and Wesson .40-caliber semi-automatic pistol.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Two Individuals Charged with Fraudulently Filing for Unemployment InsuranceRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge of the New York Regional Office of the Department of Labor, Office of Inspector General (“DOL-OIG”), Patrick J. Freaney, Deputy Special Agent in Charge of the New York Field Office of the United States Secret Service (“Secret Service”), and Roberta Reardon, Commissioner of the New York Department of Labor, announced today the unsealing of a Complaint charging CHRISTOPHER FERRERA and ASHLEY BOURDIER with operating a scheme to fraudulently file for unemployment insurance under the names of other people. FERRERA and BOURDIER were arrested this morning and will be presented and arraigned later today before U.S. Magistrate Judge Katharine H. Parker.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Christopher Ferrera and Ashley Bourdier fraudulently applied for and received unemployment benefits by using the identities of other people. Thanks to the work of our law enforcement partners, the defendants are now facing prosecution for their alleged crimes.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “Investigating fraud involving the Unemployment Insurance Program is an important part of the mission of the U.S. Department of Labor Office of Inspector General, particularly now when our nation is providing billions of dollars in unemployment benefits to American workers in need due to the economic effects of the COVID-19 pandemic. We will continue to work with our law enforcement partners to vigorously investigate unemployment insurance fraud.”
Secret Service Deputy Special Agent in Charge Patrick J. Freaney said: “The U.S. Secret Service remains dedicated to working with our partners in combatting identity theft and financial fraud. These alleged criminal actions have a lasting effect on the victims by undermining their most basic sense of security by stealing their identities to perpetrate financial crimes. I would like to commend the investigative efforts of the New York Department of Labor and the Office of the Inspector General of the U.S. Department of Labor in working with the U.S. Secret Service in bringing today’s charges.”
New York Department of Labor Commissioner Roberta Reardon said: “Unemployment Insurance fraud is something that we fight every day. However, for these criminals to use a pandemic for their personal gain while millions of New Yorkers legitimately need this assistance is even more despicable. I applaud the work of all of our law enforcement partners including the Office of the Inspector General of the U.S. Department of Labor and the U.S. Secret Service for helping to keep money out of the hands of these thieves. We will continue to work with them to combat unemployment insurance fraud and hold these criminals accountable.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
From March 2020 through August 2020, CHRISTOPHER FERRERA and ASHLEY BOURDIER engaged in a scheme to obtain unemployment insurance by fraudulently filing for benefits using the names and social security numbers of more than 25 other people. As a result of their scheme, FERRERA and BOURDIER received over $200,000 of unemployment insurance benefits from at least three different states.
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FERRERA, 25, of the Bronx, New York, and BOURDIER, 27, of New York, New York, are each charged with conspiring to commit wire fraud, which carries a maximum sentence of 20 years in prison. FERRERA is also charged with aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the work of DOL-OIG, the Secret Service, and the New York Department of Labor.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Thomas S. Burnett is charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two California Men Admit Roles in Multi-State Recovery Home Patient Brokering SchemeRead the Press Release
TRENTON, N.J. – Two California men today admitted to participating in a conspiracy to broker patients as part of a multi-state patient scheme in which one of them directed recruiters to bribe drug-addicted individuals to enroll in drug rehabilitation and the other paid referral fees from his rehabilitation center in exchange for those patient referrals, U.S. Attorney Craig Carpenito announced.
Kevin M. Dickau, 32, of Tustin, California, and Dr. Akikur Mohammad, 57, of West Hills, California, each pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan. Dickau pleaded guilty to an information charging him with one count of conspiracy to commit health care fraud. Mohammad pleaded guilty to an information charging him with one count of conspiracy to violate the Eliminating Kickbacks in Recovery Act (EKRA).
EKRA, enacted by Congress in October 2018 as part of a broader package of legislation aimed at combatting the opioid crisis, bars the payment of kickbacks in exchange for the referral of patients to drug treatment facilities. Mohammad’s EKRA conviction is among the first such convictions in the country using the new charge.
Three other individuals have previously pleaded guilty for their roles in the scheme: Peter Costas, of Red Bank, New Jersey, pleaded guilty to conspiracy to commit health care fraud in May 2020; Seth Logan Welsh, of Forest Hill, Maryland, and John C. Devlin, of Baltimore, Maryland, pleaded guilty to the same charge on Sept. 8, 2020.
According to documents filed in the case and statements made in court:
Dickau, Welsh, Devlin, and their conspirators owned and operated a marketing company in California. Dickau, Welsh, and Devlin used the marketing company to help orchestrate a scheme in New Jersey, Maryland, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Welsh, Devlin, and their conspirators could generate referral fees from those facilities. One facility in California that paid such referral fees was owned and operated by Mohammad.
The marketing company run by Dickau, Welsh, and Devlin maintained contractual relationships with drug treatment facilities around the country, including the one run by Mohammad. The marketing company also engaged a nationwide network of recruiters – including Costas in New Jersey – to identify and recruit potential patients, from New Jersey and other states, who were addicted to heroin or other drugs and who had robust private health insurance.
To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas and other recruiters offered to bribe them – often as much as several thousand dollars – with the approval of Dickau, Welsh, and Devlin. Once the patients agreed to enroll in drug rehabilitation in exchange for the offered bribe, Dickau, Welsh, Devlin, and Costas would arrange and pay for cross-country travel to the drug treatment centers in California and other states, in concert with the owners of the facilities themselves, including Mohammad. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments, and he would pass along information to Dickau, Welsh, and Devlin about the patients’ status at the facilities. Dickau, Welsh, and Devlin would monitor the other patients they brokered by speaking to other recruiters or to the owners and employees of the drug treatment facilities themselves.
Mohammad’s drug treatment facility had a contract with the marketing company. Mohammad’s facility and other facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral. Dickau, Welsh, Devlin, and their conspirators divvied that money among themselves. Costas and other recruiters received approximately half that amount for each patient they brokered. Dickau, Welsh, Devlin, and their conspirators brokered scores of patients to drug treatment facilities around the country, including the one run by Mohammad, and the conspiracy caused millions of dollars of losses for health insurers.
For example, on Jan. 24, 2019, Mohammad, Welsh, and Dickau had a text message conversation in which Dickau sent a patient’s biographical and health insurance information to Mohammad to see if Mohammad would accept the patient at his drug treatment facility. After confirming that the patient had adequate health insurance benefits, Mohammad accepted the patient for admission to his drug treatment facility. The patient enrolled at Mohammad’s drug treatment facility soon after, and Mohammad billed a commercial insurance company over $70,000 for purported services rendered to the patient. The following month. Mohammad paid the marketing company a referral payment of $5,000 for referring the patient.
In a telephone conversation on March 14, 2019, Mohammad and Welsh discussed kickbacks for referrals for two patients sent to Mohammad’s drug treatment facility. During the call, Mohammad and Welsh discussed how long each patient stayed at Mohammad’s drug treatment facility, and they agreed that Mohammad would pay Dickau and Welsh a kickback for the two patient referrals. On the same day, Mohammad wrote a check to the marketing company for $10,000.
Dickau faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Mohammad faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 20, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty pleas. He also thanked the FBI, under the direction of Acting Assistant Director in Charge John F. Bennett in Los Angeles, California and the District Attorney’s Office in Orange County, California.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit in Newark.
Two Alleged Hackers Charged with Defacing Websites Following Killing of Qasem SoleimaniRead the Press Release
Two alleged computer hackers were indicted in the District of Massachusetts on charges of damaging multiple websites across the United States as retaliation for United States military action in January 2020 that killed Qasem Soleimani, the head of the Islamic Revolutionary Guard Corps-Quds Force, a U.S.-designated foreign terrorist organization.
Behzad Mohammadzadeh (a/k/a “Mrb3hz4d”), believed to be approximately 19 years old and a national of the Islamic Republic of Iran, and Marwan Abusrour (a/k/a “Mrwn007”), believed to be approximately 25 years old and a stateless national of the Palestinian Authority, were charged in an indictment unsealed today on one count of conspiring to commit intentional damage to a protected computer and one count of intentionally damaging a protected computer. The defendants are believed to be living in Iran and the Palestinian Authority and are wanted by United States authorities.
“The hackers victimized innocent third parties in a campaign to retaliate for the military action that killed Soleimani, a man behind countless acts of terror against Americans and others that the Iranian regime opposed,” said Assistant Attorney General for National Security John C. Demers. “Their misguided, illegal actions in support of a rogue, destabilizing regime will come back to haunt them, as they are now fugitives from justice.”
“Foreign hackers are a persistent commercial and national security threat to the United States,” said United States Attorney Andrew E. Lelling. “Working with our law enforcement partners worldwide, we will aggressively pursue, prosecute and apprehend those who use the internet to attack American interests.”
“These hackers are accused of orchestrating a brazen cyber-assault that defaced scores of websites across the country as a way of protesting and retaliating against the United States for killing the leader of a foreign terrorist organization. Now, they are wanted by the FBI and are no longer free to travel outside Iran or Palestine without risk of arrest,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s indictment should send a powerful message that we will not hesitate to go after anyone who commits malicious cyber intrusions against innocent Americans in order to cause chaos, fear, and economic harm.”
According to the indictment, Mohammadzadeh has publicly claimed to have personally defaced more than 1,100 websites around the world with pro-Iranian and pro-hacker messages, which he began in 2018 and continues through the present day. Abusrour is a self-described spammer (sender of unsolicited emails for profit), carder (illicit trader in stolen credit cards) and black hat hacker (a hacker who violates computer security for personal gain or maliciousness) who has publicly claimed to have defaced at least 337 websites around the world, which he began no later than June 6, 2016, and continued through at least July 2020.
The defendants allegedly started working together on or about Dec. 26, 2019, when Abusrour began providing Mahammadzadeh with access to compromised websites. On or about Jan. 2, 2020, the U.S. Department of Defense issued a statement that the United States military had “taken decisive defensive action to protect U.S. personnel abroad by killing Qasem Soleimani, the head of the Islamic Revolutionary Guard Corps-Quds Force, a U.S.-designated Foreign Terrorist Organization.” The statement explained that the “strike was aimed at deterring future Iranian attack plans” and described briefly General Soleimani’s past actions and future plans. The United States’ responsibility for General Soleimani’s death was widely publicized.
Following this statement, and in retaliation for it, Mohammadzadeh allegedly transmitted computer code to approximately 51 websites hosted in the United States, and defaced those websites by replacing their content with pictures of the late General Soleimani against a background of the Iranian flag along with the message, in English, “Down with America,” and other text. Some of the websites defaced were hosted on computers owned by a company with corporate headquarters in Massachusetts. No later than Jan. 7, 2020, Abusrour provided Mohammadzadeh with access to at least seven websites, which they defaced with a similar image and text. The defendants took credit online for their website defacements.
The charge of conspiring to commit intentional damage to a protected computer provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greatest. The charge of intentionally damaging a protected computer provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greatest. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General for National Security John C. Demers; United States Attorney Andrew E. Lelling; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made this announcement. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, and Assistant U.S. Attorney David J. D’Addio of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting this case with the assistance of Cyber Counsel Ali Ahmad of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Alleged Hackers Charged with Defacing Websites Following Killing of Qasem SoleimaniRead the Press Release
BOSTON –Two alleged computer hackers were indicted in the District of Massachusetts on charges of damaging multiple websites across the United States as retaliation for United States military action in January 2020 that killed Qasem Soleimani, the head of the Islamic Revolutionary Guard Corps-Quds Force, a U.S.-designated foreign terrorist organization.
Behzad Mohammadzadeh (a/k/a “Mrb3hz4d”), believed to be approximately 19 years old and a national of the Islamic Republic of Iran, and Marwan Abusrour (a/k/a “Mrwn007”), believed to be approximately 25 years old and a stateless national of the Palestinian Authority, were charged in an indictment unsealed today on one count of conspiring to commit intentional damage to a protected computer and one count of intentionally damaging a protected computer. The defendants are believed to be living in Iran and the Palestinian Authority and are wanted by United States authorities.
“Foreign hackers are a persistent commercial and national security threat to the United States,” said United States Attorney Andrew E. Lelling. “Working with our law enforcement partners worldwide, we will aggressively pursue, prosecute and apprehend those who use the internet to attack American interests.”
“The hackers victimized innocent third parties in a campaign to retaliate for the military action that killed Soleimani, a man behind countless acts of terror against Americans and others that the Iranian regime opposed,” said Assistant Attorney General for National Security John C. Demers. “Their misguided, illegal actions in support of a rogue, destabilizing regime will come back to haunt them, as they are now fugitives from justice.”
“These hackers are accused of orchestrating a brazen cyber-assault that defaced scores of websites across the country as a way of protesting and retaliating against the United States for killing the leader of a foreign terrorist organization. Now, they are wanted by the FBI and are no longer free to travel outside Iran or Palestine without risk of arrest,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s indictment should send a powerful message that we will not hesitate to go after anyone who commits malicious cyber intrusions against innocent Americans in order to cause chaos, fear, and economic harm.”
According to the indictment, Mohammadzadeh has publicly claimed to have personally defaced more than 1,100 websites around the world with pro-Iranian and pro-hacker messages, which he began in 2018 and continues through the present day. Abusrour is a self-described spammer (sender of unsolicited emails for profit), carder (illicit trader in stolen credit cards) and black hat hacker (a hacker who violates computer security for personal gain or maliciousness) who has publicly claimed to have defaced at least 337 websites around the world, which he began no later than June 6, 2016, and continued through at least July 2020.
The defendants allegedly started working together on or about Dec. 26, 2019, when Abusrour began providing Mahammadzadeh with access to compromised websites. On or about Jan. 2, 2020, the U.S. Department of Defense issued a statement that the United States military had “taken decisive defensive action to protect U.S. personnel abroad by killing Qasem Soleimani, the head of the Islamic Revolutionary Guard Corps-Quds Force, a U.S.-designated Foreign Terrorist Organization.” The statement explained that the “strike was aimed at deterring future Iranian attack plans” and described briefly General Soleimani’s past actions and future plans. The United States’ responsibility for General Soleimani’s death was widely publicized.
Following this statement, and in retaliation for it, Mohammadzadeh allegedly transmitted computer code to approximately 51 websites hosted in the United States, and defaced those websites by replacing their content with pictures of the late General Soleimani against a background of the Iranian flag along with the message, in English, “Down with America,” and other text. Some of the websites defaced were hosted on computers owned by a company with corporate headquarters in Massachusetts. No later than Jan. 7, 2020, Abusrour provided Mohammadzadeh with access to at least seven websites, which they defaced with a similar image and text. The defendants took credit online for their website defacements.
If you believe that a website that you hosted or owned was defaced by either of these defendants, please contact [email protected].
The charge of conspiring to commit intentional damage to a protected computer provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greatest. The charge of intentionally damaging a protected computer provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greatest. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, NSD Assistant Attorney General Demers and Boston FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, and David D'Addio of Lelling's Securities, Financial & Cyber Fraud Unit are prosecuting this case with the assistance of Cyber Counsel Ali Ahmad of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas woman charged with fraudulently obtaining nearly $2M in Covid relief fundsRead the Press Release
HOUSTON - A Texas woman has been taken into custody on allegations she fraudulently obtained more than $1.9 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Lola Shalewa Barbara Kasali, 22, Houston, is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m. tomorrow.
The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The criminal complaint, unsealed today, alleges Kasali submitted at least two fraudulent PPP loan applications - one on behalf of an entity called Lola’s Level and the other in the name of Charm Hair Extensions. Kasali allegedly received more than $1.9 million in PPP loan funds following the approval of the Lola’s Level application. The charges allege that after receiving the funds, Kasali transferred the money into four additional bank accounts. Authorities were later able to seize the funds, according to the charges.
The loan applications allegedly asserted both Charm Hair Extensions and Lola’s Level had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister for the Southern District of Texas.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Woman Charged with Fraudulently Obtaining Nearly $2 Million in COVID Relief FundsRead the Press Release
A Texas woman has been taken into custody on allegations she fraudulently obtained more than $1.9 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Lola Shalewa Barbara Kasali, 22, of Houston, is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan in Houston at 2:00 p.m. CDT on Wednesday, Sept. 16.
The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The criminal complaint, unsealed today, alleges Kasali submitted at least two fraudulent PPP loan applications - one on behalf of an entity called Lola’s Level and the other in the name of Charm Hair Extensions. Kasali allegedly received more than $1.9 million in PPP loan funds following the approval of the Lola’s Level application. The charges allege that after receiving the funds, Kasali transferred the money into four additional bank accounts. Authorities were later able to seize the funds, according to the charges.
The loan applications allegedly asserted both Charm Hair Extensions and Lola’s Level had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree of the Criminal Division’s Fraud Section and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister for the Southern District of Texas.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Deputy Sheriff Sentenced to over 18 Years in Prison for Sexual Exploitation of a Child and CyberstalkingRead the Press Release
BOSTON – A law enforcement officer from Texas was sentenced today in federal court in Worcester for sexual exploitation of a minor and cyberstalking charges.
Pasquale T. Salas, 26, a/k/a Gino, a former deputy sheriff with the Matagorda County Sheriff’s Office, was sentenced by U.S. District Court Judge Timothy S. Hillman to 220 months in prison and five years of supervised release. In May 2020, Salas pleaded guilty to one count of sexual exploitation of a minor and one count of cyberstalking.
“The defendant was an online predator disguised in a law enforcement uniform,” said United States Attorney Andrew E. Lelling. “He used the internet to gain the trust of vulnerable children and then turned around and exploited their innocence and played on their fears. This sentence is a warning to others, but it is also intended to stop this defendant, for the long term, from further victimizing children. We will always prioritize, and aggressively pursue, cases involving online predators.”
“Child predators often wear many disturbing disguises in our communities, and Pasquale Salas is no exception. As a deputy sheriff, he betrayed his oath and abused the trust that was placed in him. Instead of protecting children, he exploited children for his own sexual gratification. He is both a danger and a disgrace, and now, thanks to the courage of the victims who came forward in this case, and the hard work of our law enforcement partners, he’s been taken off the street so he can no longer harm anyone else," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
Salas met the victim through an online video game website in 2014, when the minor was 12 years old. Salas and the girl communicated on a private chat room and then moved those communications to various other platforms, including text messaging, Skype and Snapchat. Salas repeatedly solicited the minor to transmit sexually explicit images and videos of herself.
Beginning as early as 2016, Salas intimidated the victim into maintaining contact with him and sending additional sexually explicit material by threatening that he would send the minor’s sexually explicit images and videos to her family and her friends. In May 2019, when the victim attempted to terminate contact with Salas, he repeatedly sent threatening communications to the victim, using web-based applications to disguise the source of the communications.
At the time of his arrest, Salas’ smartphone was seized by investigators and found to contain at least one video, sent via social media, of the minor performing sexually explicit acts that Salas had coerced her to perform.
Salas admitted to contacting a second Massachusetts minor through the same website. From the time the victim was 12 until the time she was 16, Salas coerced her into remaining in contact with him and solicited sexually explicit images from her. Salas forced her to disclose her social media credentials so that he could track her activities and view her photographs. Salas sent pictures of himself inside a police car and with a gun and told the victim that he had law enforcement friends in Massachusetts who would follow her and that no one would believe her if she reported what he had done. Salas was in contact with the victim until the time of his arrest.
U.S. Attorney Lelling and Boston FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by Police Departments in Worcester County; the United States Attorney’s Office for the Southern District of Texas; the Federal Bureau of Investigation, Houston Field Office; the Matagorda (Texas) County Sheriff’s Office; and the Worcester Police Department. Assistant U.S. Attorney Kristen Noto from Lelling’s Worcester Branch Office 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/.
Somerset County Man Admits Concealing Material Support to HamasRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man admitted today that he concealed his attempts to provide material support to Hamas, U.S. Attorney Craig Carpenito, Assistant Attorney General John C. Demers of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge George M. Crouch Jr., and FBI Assistant Director for Counterterrorism Jill Sanborn announced.
Jonathan Xie, 21, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of concealing attempts to provide material support to a designated foreign terrorist organization.
According to documents filed in this case and statements made in court:
Xie admitted that he knowingly concealed and disguised the nature, location, source, ownership and control of the attempt to provide material support and resources to Harakat al-Muqawamah al-Islamiyya and the Islamic Resistance Movement, an organization that is commonly referred to as Hamas. Xie admitted that he knew Hamas was a designated foreign terrorist organization and has engaged in terrorist activities. He said he attempted to conceal the attempted support believing it would be used to commit or assist in the commission of a violent act.
In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.”
In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”
In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On April 18, 2019, when the undercover employee asked whether Bitcoin was anonymous, Xie responded: “yah… i think that's why hamas is using it now because money transfer is not that anonymous.”
The count of concealing attempted material support carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Xie is scheduled for Jan. 27, 2021.
U.S. Attorney Carpenito and Assistant Attorney General Demers credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Crouch, Jr.; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s guilty plea. He also thanks the U.S. Secret Service for its assistance with the case.
The government is represented by Senior Trial Counsel Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Taryn Meeks of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
Somerset County Man Admits Concealing Material Support to HamasRead the Press Release
A Somerset County, New Jersey, man admitted today that he concealed his attempts to provide material support to Hamas, Assistant Attorney General John C. Demers of the U.S. Department of Justice’s National Security Division, U.S. Attorney Craig Carpenito, FBI-Newark Special Agent in Charge George M. Crouch Jr., and FBI Assistant Director for Counterterrorism Jill Sanborn announced.
Jonathan Xie, 21, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of concealing attempts to provide material support to a designated foreign terrorist organization.
According to documents filed in this case and statements made in court:
Xie admitted that he knowingly concealed and disguised the nature, location, source, ownership and control of the attempt to provide material support and resources to Harakat al-Muqawamah al-Islamiyya and the Islamic Resistance Movement, an organization that is commonly referred to as Hamas. Xie admitted that he knew Hamas was a designated foreign terrorist organization and has engaged in terrorist activities. He said he attempted to conceal the attempted support believing it would be used to commit or assist in the commission of a violent act.
In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.”
In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”
In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On April 18, 2019, when the undercover employee asked whether Bitcoin was anonymous, Xie responded: “yah… i think that's why hamas is using it now because money transfer is not that anonymous.”
The investigation revealed additional social media accounts for Xie, including a YouTube account which contained, among other things, a playlist containing videos, many of which advocated or propagandized Soldiers for Allah, the war in Syria, Hezbollah (a foreign terrorist organization), and the Houthi movement in Yemen, as well as support for Bashar al Assad, Saddam Hussein, and North Korea.
The count of concealing attempted material support carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Xie is scheduled for Jan. 27, 2021.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Crouch, Jr.; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s guilty plea. He also thanks the U.S. Secret Service for its assistance with the case.
The government is represented by Senior Trial Counsel Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Taryn Meeks of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
Slaughter, Caught with a Gun During a Domestic Violence Call, Pleads GuiltyRead the Press Release
MACON, Ga. – A convicted felon, caught with a loaded illegal weapon when law enforcement responded to a domestic violence call, pleaded guilty to possessing a firearm illegally, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Freddie Slaughter, Jr., 40, of Macon, pleaded guilty to one count possession of a firearm by a convicted felon before U.S. District Judge Tripp Self today. Slaughter faces a maximum ten years in federal prison. Judge Self scheduled sentencing for December 8, 2020.
According to the stipulation of fact, law enforcement was dispatched to a Macon residence on June 9, 2019, in reference to an alleged domestic disturbance involving Slaughter. When officers arrived at the scene and told the defendant they were responding to a possible domestic violence incident, Slaughter ran. Officers detained Slaughter, and a loaded semiautomatic pistol fell out of his pocket. Slaughter has several prior felony convictions, including robbery by sudden snatching in the Superior Court of Bibb County, Georgia on June 27, 2005. It is illegal for a convicted felon to possess a firearm.
“Convicted felons illegally possessing guns in the Middle District of Georgia face federal prosecution and federal prison, where there is no parole,” said U.S. Attorney Peeler. “I want to thank the ATF and the Bibb County Sheriff’s Office for their work taking guns out of the hands of convicted felons in Middle Georgia.”
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Will R. Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Sioux Falls Man Indicted for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation.
Daniel James Farmer, age 24, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 11, 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 July 5, 2017, and again on December 10, 2017, in Todd County, South Dakota, Farmer unlawfully committed a domestic assault against his intimate partner by strangling and suffocating her.
The charges are merely accusations and Farmer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Farmer was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Women Indicted on Child Abuse ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Rosebud, South Dakota, women have been indicted by a federal grand jury for Child Abuse, and one of the women additionally charged for Assault With a Dangerous Weapon.
Samantha Taylor Jones, age 27, and Valarie Jean Crazy Bull, age 63, were both indicted on September 9, 2020. They both appeared before U.S. Magistrate Judge Mark A. Moreno on September 11, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Child Abuse is up to 15 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 maximum penalty upon conviction for Assault With a Dangerous Weapon 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 August 11, 2019, Jones and Crazy Bull abused, exposed, tortured, tormented, and cruelly punished a child. The Indictment further alleges that Crazy Bull assaulted an individual with an umbrella with intent to due bodily harm.
The charges are merely accusations and Jones and Crazy Bull are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Jones and Crazy Bull were released on bond pending trial. A trial date has not been set.
Raytown Man Charged with Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Raytown, Missouri, man has been charged in federal court with drug trafficking and illegally possessing a firearm after selling a stolen handgun to an undercover federal agent.
Antonio Johnson, 18, was charged in a two-count complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Sept. 3, 2020. The complaint was unsealed and made public following Johnson’s arrest and initial court appearance on Friday, Sept. 11.
The federal criminal complaint charges Johnson with one count of distributing marijuana and one count of possessing a firearm in furtherance of drug trafficking.
According to an affidavit filed in support of the federal criminal complaint, an undercover federal agent arranged four controlled purchases of marijuana from Johnson in July and August 2020. When Johnson met the undercover agent for the first transaction, he was armed with a pistol placed between the driver’s seat and center console of the vehicle he was driving, and a black rifle sitting on the lap of a passenger in the vehicle.
On Aug. 31, 2020, the undercover federal agent contacted Johnson and told him she wanted to purchase a pistol from him, and they agreed on a price of $450. On Sept. 1, 2020, Johnson allegedly met the undercover agent at his apartment and handed her a Glock 9mm semi-automatic handgun and a baggie that contained 29 grams of marijuana for which she paid a total of $680. Johnson allegedly agreed to get her more firearms. The pistol had been stolen from the personal vehicle of a Grain Valley, Missouri, police officer in August 2020.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.RGV felons heading back to prison for possessing firearmRead the Press Release
McALLEN, Texas - Two men have been sentenced to federal prison following their convictions of being previously convicted felons in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.
Benny Guadalupe Garcia, 34, Weslaco, and Rodolfo Rodriguez Jr., 26, Edinburg, pleaded guilty Jan. 30, and Jan. 21, respectively.
Today, U.S. District Judge Randy Crane sentenced Garcia to 30 months in prison, while Rodriguez received a 70-month term. Both will also be ordered to serve three years of supervised release following their sentences. At the hearing, the court noted the serious nature of the offense given both men’s criminal histories. Specifically, Rodriguez has previous convictions for aggravated robbery stemming from two incidents in downtown McAllen as well as five vehicle burglary convictions, among others. Garcia was previously convicted of two burglaries of a habitation as well as multiple assaults and possession of controlled substances. In handing down the sentence, Judge Crane noted both men’s involvement in gang activity and the serious nature of possessing a firearm with an obliterated serial number.
“Removing guns from the hands of violent, multi-convicted felons remains the focus of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),” said ATF Special Agent in Charge Fred Milanowski.
On Nov. 26, 2019, law enforcement conducting patrol near Edinburg had pulled a vehicle over for a traffic violation. Garcia was driving with Rodriguez as the front passenger. Upon searching the vehicle, authorities found a .45 caliber semi-automatic handgun with an obliterated serial number and hollow-tip ammunition in the console.
As both men have previous felony convictions, they are prohibited by federal law of possessing firearms or ammunition.
They ultimately admitted to being felons in possession of the firearm found in the vehicle.
Garcia and Rodriguez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Quantadyn Corporation and Owner Settle False Claims Act Allegations of Bribery to Obtain Government Contracts for SimulatorsRead the Press Release
The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company. As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme. William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability.
“When government contractors pay bribes to military contracting officials to obtain contracts, they prevent both our military and the American taxpayers from receiving products that are procured fairly and objectively and at a reasonable price,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process and ensuring that is untainted by fraud and corruption.”
“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case. We will not tolerate fraud against important federal programs,” stated U.S. Attorney John F. Bash for the Western District of Texas.
“The integrity of GSA’s contracting is vital to good government,” said U.S. General Services Administration (GSA) Inspector General Carol Ochoa. “Our special agents have been tireless in investigating corruption, and we will continue to work with our law enforcement partners to vigorously prosecute it wherever we find it.”
Founded in 2000, QuantaDyn is a privately held software engineering firm specializing in developing training simulation systems for Department of Defense agencies, including the Air Force and the Air National Guard, both as a prime contractor and a subcontractor.
The civil settlement announced today, which was based on the company and Dunn’s ability to pay, resolves allegations that QuantaDyn, during the time period when Dunn was President, engaged in a bribery scheme to steer the award of government contracts for training simulators to QuantaDyn. The United States alleged that while Dunn was QuantaDyn’s President, the company formed a corrupt partnership with an Air Force contracting official who provided procurement-sensitive information to QuantaDyn during the pre- and post-award phases of the contract in exchange for bribes. The United States contended that, as a result of this scheme, QuantaDyn caused a prime contractor to submit false invoices to the United States.
Contemporaneous with the civil settlement, U.S. Attorney John F. Bash for the Western District of Texas announced that the United States and QuantaDyn have entered into a plea agreement to resolve criminal allegations related to the bribery scheme. On Jan. 15, 2020, the U.S. Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force contracting official, and other individuals. Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and to take certain remedial measures, and pay $37,757,713.91 in restitution, a criminal penalty of $6,300,000, and forfeiture of $7,099,863.77.
This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Western District of Texas; the GSA Office of Inspector General (OIG), Greater Southwest and Rocky Mountain Investigations Division; the Defense Criminal Investigative Service (DCIS), Southwest Field Office; the U.S. Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio; the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (CID/MPFU), Southwestern Fraud Field Office; the Internal Revenue Service-Criminal Investigation (IRS-CI); and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).
Except as admitted in the plea agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Prince George's County Serial Bank Robber Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Marquis Von Clemons, age 38, of Langley Park, Maryland, to 92 months in federal prison, followed by three years of supervised release, for bank robbery. Judge Chuang also entered an order requiring Clemons to forfeit and to pay restitution in the amount of $5,080.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to Clemons’ plea agreement, on February 13, 2019, Clemons entered a bank in Hyattsville, approached the teller and passed the teller a note stating, “I have a gun, do not say anything.” Fearing for her safety, the teller gave Clemons cash from the teller drawer. Clemons then fled the bank with the money and note. Surveillance cameras captured a masked Clemons in the bank, as well as his flight from the bank, during which Clemons discarded his mask and some of the distinctive clothes worn during the robbery. Law enforcement recovered the clothing a short time later.
One week later, on February 19, 2019, Clemons entered the same bank wearing a mask and gloves. The bank security guard, who was hired after the February 13th robbery, confronted Clemons and ordered him to remove the mask. When Clemons did not remove his mask and instead attempted to reach into his pockets, the security guard, believing that Clemons was about to rob the bank, detained Clemons until law enforcement arrived. When officers arrived at the bank, they searched Clemons and found a note in his pocket stating that he had a gun and demanding money. When law enforcement questioned him, Clemons provided a fake name and social security number. Law enforcement subsequently confirmed his true identity through his fingerprints.
A search warrant was subsequently executed at Clemons’ residence and law enforcement recovered the distinctive hat and shoes worn during the robbery on February 13th. In addition, law enforcement subsequently recovered Clemons’ DNA from the clothing Clemons discarded during his flight from the February 13th bank robbery, as well as the distinctive hat and shoes recovered from Clemons’ residence.
Less than seven months before the robbery Clemons had been released from prison after serving a four year sentence for robbing the same bank.
United States Attorney Robert K. Hur praised the FBI and the Prince George’s Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Dana J. Brusca, who prosecuted the case.
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President of Defunct New Jersey Marble and Granite Company Admits Role in $17 Million Bank FraudRead the Press Release
NEWARK, N.J. – The president of a now-defunct New Jersey-based marble and granite wholesaler today admitted his role in orchestrating and carrying out a scheme to defraud a bank in connection with a $17 million secured line of credit, U.S. Attorney Craig Carpenito announced.
Rajendra Kankariya, 61, of Tenafly, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit wire fraud affecting a financial institution.
According to documents filed in this case and statements made in court:
From March 2016 through March 2018, Kankariya, the president and part owner of Lotus Exim International Inc. (LEI), conspired with other LEI employees to obtain from the victim bank a $17 million line of credit by fraudulent means. The victim bank extended LEI the line of credit, believing it to have been secured in part by LEI’s accounts receivable. In reality, Kankariya and his conspirators had fabricated or inflated many of the accounts receivable, ultimately leading to LEI defaulting on the line of credit.
In order to conceal the lack of sufficient collateral, LEI employees, with the knowledge and approval of Kankariya, created fake email addresses on behalf of LEI’s customers so they could pose as those customers and answer the victim bank’s and outside auditor’s inquiries about the accounts receivable. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the victim bank losses of approximately $17 million.
The count of conspiracy to commit wire fraud affecting a financial institution to which Kankariya pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of $1 million. Kankariya is scheduled to be sentenced on Jan. 18, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
Possession of Firearm Leads to Time in Federal PrisonRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Kelvin Broadway, 26, of Shreveport, was sentenced today by U.S. District Judge Donald E. Walter for Possession of a Firearm by a Convicted Felon. Broadway was sentenced to 57 months (4 years, 9 months) in prison, followed by 3 years of supervised release. Broadway pleaded guilty to the charge on April 24, 2020.
On January 6, 2019, Shreveport Police Department officers conducted a traffic stop on the vehicle in which Broadway was a front-seat passenger. Law enforcement officers found two loaded handguns inside a shopping bag that Broadway had possessed between his feet. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
Broadway has prior felony convictions in Caddo Parish, Louisiana, for felony theft (2011), possession of a controlled substance (2012), and illegally carrying of weapons while in possession of a controlled substance (2013).
The ATF and Shreveport Police Department conducted the investigation and Assistant United States Attorneys Mike Shannon and Tennille Gilreath prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Porcupine Man Sentenced to 10 Years in Federal Prison for ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man convicted of Voluntary Manslaughter was sentenced by Jeffrey L. Viken, U.S. District Judge.
Lawrence Pourier, a/k/a Larry Pourier, age 52, was sentenced on September 4, 2020, to 10 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Pourier repeatedly striking another man in the head with a pipe-like object, causing his death, in January 2020 near Porcupine.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Pourier was immediately remanded to the custody of the U.S. Marshals Service to being serving his sentence.
Pittsburgh Siblings Charged with Conspiring to Steal Firearms from Federal Firearms LicenseesRead the Press Release
PITTSBURGH, PA – Three residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney Scott W. Brady announced today.
The three-count Indictment named brothers Jerwahn Atkins, age 23, Jerquay Atkins, age 25, and Jamir Atkins, age 21, all of Pittsburgh, PA 15212, as defendants.
According to the indictment, on or about May 30, 2020 and continuing until on or about May 31, 2020, Jerwahn, Jerquay and Jamir Atkins conspired to steal or unlawfully take from the premises of a person who is licensed to engage in the business of importing, manufacturing, or dealing in firearms any firearm in the licensee’s business inventory that has been shipped or transported in interstate or foreign commerce. According to the indictment, members of the conspiracy used a crowbar in an attempt to gain entry to Allegheny Arms, located on Library Road, in Bethel Park, PA and National Armory, located on Broadhead Road, in Moon Township, PA, using a getaway driver as a means to flee.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Subject to Protection from Abuse Order Arrested in Oregon following Federal Indictment on Gun ChargeRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a federal firearms violation, United States Attorney Scott W. Brady announced today.
The one-count Indictment, which was filed on July 8, 2020 and unsealed today, named Joseph Plasan, 32, as the sole defendant. The U.S. Marshals Service arrested Plasan yesterday in Portland, Oregon.
According to the Indictment, on or about May 5, 2020 the defendant possessed a firearm and ammunition even though he knew that he was subject to a domestic violence protection order. A PFA in Pennsylvania provides that a person shall not "abuse, harass, stalk, threaten, or attempt or threaten to use physical force against" the persons protected by the order, including intimate partners and children. Federal law prohibits anyone who is subject to a PFA and anyone who has been convicted by crimes punishable by a year or more in prison from lawfully possessing a firearm or ammunition.
"We are committed to protecting victims and survivors of domestic violence," said U.S. Attorney Brady, who has been a member of Attorney General William Barr’s Domestic Violence Working Group since June of 2019. "Abusers with guns are five times more likely to kill their victims, so prosecuting those abusers and taking them off the streets is one of our top priorities. These are serious federal felony charges that, if proven, come with jail time and no possibility of parole."
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant will be detained pending the resolution of the case.
Assistant United States Attorney Nicole Vasquez Schmitt, who serves as the office’s Domestic Violence Coordinator, is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Sentenced to 3½ Years for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 42 months’ imprisonment on his conviction of conspiracy to distribute and possession with intent to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Cecil Howard, age 48.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Cecil Howard conspired to distribute over 28 grams of crack cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Howard.
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.
Pine Ridge Man Charged with Aggravated Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Sexual Abuse, and Sexual Abuse of a Minor.
Carl Francis Martin, a/k/a Roy Martin, age 20, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is any term of imprisonment up to life in a federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Martin sexually abusing a female by force and at a time when she was incapable of declining participation in a sexual act, in January 2020 near Pine Ridge. Martin also sexually abused a minor, who was between the ages of 12 and 16, in September 2019 near Pine Ridge.
The charges are merely accusations and Martin 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.
Martin was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 10, 2020.
Peoria Man Sentenced to 20 Years in Prison for Heroin, Fentanyl Conspiracy, Possession with Intent to DistributeRead the Press Release
PEORIA, Ill. – A Peoria, Ill., man, David D. Major, 51, of the 1400 block of East Forrest Hill, has been sentenced to the maximum 20-year sentence for conspiracy to distribute heroin and fentanyl and with possession of heroin and fentanyl with the intent to distribute.
At Major’s sentencing hearing, on Sept. 14, 2020, U.S. District Judge James E. Shadid found that Major obstructed justice when he attempted to tamper with a witness prior to sentencing. Judge Shadid also determined that Major is a career offender with prior convictions including aggravated kidnapping and unlawful delivery of heroin.
At the sentencing hearing, the government presented evidence that an overdose death that occurred in Pekin, Ill, in December 2018, was connected to Major’s distribution of heroin and fentanyl. Evidence further established that Major purchased the heroin and fentanyl in Chicago and transported it to Peoria where he distributed it to customers. According to evidence presented, during February and March 2019, Major transferred nearly $10,000 to his drug supplier for the purchase of drugs.
On Oct. 11, 2019, Major pleaded guilty to conspiracy to distribute heroin in February and March 2019, and two counts of distribution of heroin in February 2019, in Tazewell and Peoria county.
The Drug Enforcement Administration and the Pekin Police Department investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend launched in Albuquerque on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Eugene Samuel Ouzts III
“This case illustrates the need for our persistence and vigilance in the pursuit of justice,” said U.S. Attorney John Anderson for the District of New Mexico. “The perpetrators of dangerous crimes in Albuquerque and across the country have shown that they will take advantage of any crack they perceive in the system. We cannot and will not let down our guard.”
Eugene Samuel Ouzts III was charged in federal court in New Mexico on Sept. 1, 2020, with possession with intent to distribute 100 grams and more of heroin; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm.
According to the charging document, on Aug. 23, 2020, local law enforcement conducted a traffic stop of a vehicle allegedly connected to an aggravated assault. Ouzts was identified as the driver of the vehicle, and upon being stopped, admitted to law enforcement that there was a firearm in the vehicle and that he was a convicted felon. Ouzts’ vehicle was then impounded pending a search warrant.
On Aug. 30, during a search of Ouzts’ vehicle, law enforcement seized a loaded silver Taurus PT 145 Pro pistol with one cartridge in the chamber and three clear baggies containing more than 169 grams of heroin.
It is alleged that while Ouzts’ vehicle was impounded between Aug. 23 and Aug. 30, Ouzts attempted to break into his vehicle at the impound lot and attempted to bribe employees in an attempt to get into his vehicle to retrieve the illicit drugs and firearm.
Because of a previous felony conviction punishable by more than one year in prison, Ouzts is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Operation 'Black Phoenix' Leads to Federal Charges Against 25 Who Allegedly Engaged in Illegal Narcotics and Firearms SalesRead the Press Release
LOS ANGELES – Members of an FBI-led task force this morning arrested 18 individuals named in a series of federal indictments that allege narcotics trafficking and firearms offenses, including the illegal sale of five AR-15-style “ghost guns.”
Operation “Black Phoenix” resulted in seven indictments that were issued earlier this year by a federal grand jury. The indictments charge a total of 25 defendants, 18 of whom were arrested this morning, and four of whom were already in custody. Authorities continue their attempts to arrest the remaining three defendants.
During the course of the investigation, authorities seized approximately 28 pounds of methamphetamine, about a quarter-pound of cocaine and crack cocaine, and 16 firearms. Six of the indictments allege at least one transaction involving pound-quantities of methamphetamine. One of the indictments alleges a series of methamphetamine sales that include two one-pound deals and four two-pound transactions.
Two indictments allege illegal gun sales. Defendants Dau Quay Duong, 53, of Ontario, and Christopher Nguyen, 47, also of Ontario, are charged with illegal firearm sales for allegedly selling a total of five ghost guns, specifically five AR-15-type rifles with no make, model or serial number. In another indictment, defendant Jonathan Domingo Go, 47, of Torrance, is charged will illegally selling three firearms – two .40-caliber pistols and 5.56-caliber assault pistol that is described as a ghost gun with no manufacturing mark and no serial number.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The indictments carry a variety of charges, including conspiracy to possess with the intent to distribute narcotics and substantive narcotics trafficking offenses such as distribution of methamphetamine. If they are convicted, most of the defendants will face mandatory minimum sentences of 10 years in federal prison, and some will face decades in federal prison because of their extensive criminal histories.
The cases announced today are the result of an investigation conducted by the FBI, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. Substantial assistance was provided by the Monterey Park Police Department, the Drug Enforcement Administration and Homeland Security Investigations.
These cases are being prosecuted by Assistant United States Attorney Shawn T. Andrews of the Violent and Organized Crime Section.
Omaha Postal Employee Sentenced for Stealing Money from Greeting Cards in MailRead the Press Release
United States Attorney Joe Kelly announced that Annette Eubanks, 62, of Omaha, Nebraska was sentenced today in federal court in Omaha for Theft from the Mail. Senior United States District Court Judge Laurie Smith Camp sentenced Eubanks to a 2-year term of probation. Eubanks was also ordered to pay $1,456 in restitution to 44 victims that were identified in the investigation.
Eubanks was an employee of the United States Postal Service working in the postal sorting facility in Omaha. Between December 31, 2018 and July of 2019, Eubanks would knowingly open greeting cards that had been sent in the United States mail. Eubanks would identify these cards typically by the colored envelopes. During this approximate seven-month time period, Eubanks stole a total of more than $1,400 from more than 50 envelopes. Eubanks was caught in the act of opening envelopes by the United States Postal Service Office of the Inspector General.
Acting Special Agent-in-Charge Jeffery Krafels said, “The public served by the U.S. Postal Service (USPS) places enormous trust in the men and women of the USPS who honorably fulfill their duties daily. However, when that trust is betrayed, the public can rest assured the USPS Office of Inspector General (USPS OIG), and its law enforcement partners, will be vigilant in their pursuit of accountability and criminal prosecution; these crimes will not be tolerated. Today’s sentencing is an example of the dedication and determination exhibited by the legal and investigative teams of the USPS OIG and the U.S. Attorney’s Office, in the District of Nebraska. The USPS OIG will continue to vigorously investigate these types of crimes to protect the sanctity of the Postal Service.”
This case was investigated by the United States Postal Service Office of the Inspector General.
Oklahoma Mother and Son Sentenced for Brazen Robbery of Elderly Colorado WomanRead the Press Release
SHERMAN, Texas – An Oklahoma mother and son have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Lori Majors, 45, of Durant, Oklahoma, pleaded guilty on Dec. 13, 2019, to kidnapping and aiding and abetting and money laundering conspiracy and was sentenced to 480 months in federal prison by U.S. District Judge Amos L. Mazzant, III, on September 10, 2020.
Max Majors, 21, of Durant, Oklahoma, pleaded guilty on Dec. 12, 2019, to kidnapping and aiding and abetting and was sentenced to 240 months in federal prison by Judge Mazzant on September 10, 2020.
“The 20 and 40-year sentences in this case demonstrate how seriously federal law treats elder abuse,” said U.S. Attorney Stephen J. Cox. “Let this case serve as a warning, and hopefully a deterrent, to others who might seek to exploit or victimize our nation’s seniors.”
According to information presented in court, on April 15, 2018, Lori Majors did unlawfully and willfully combine, conspire and agreed to extort, kidnap or rob an 83-year-old victim, and demand ransom, and in committing or in furtherance of the commission of the offense traveled in interstate commerce from Texas to Colorado, and used a motor vehicle as a means, facility, and instrumentality of interstate commerce.
On or about March 29, 2018, Justin Majors, rented a vehicle from Sherman Enterprise Leasing Company and drove to Colorado Springs, Colorado along with Cheryl Ann Jordan with the intent to commit the robbery with other family members.
When Justin Majors and Cheryl Ann Jordan arrived in Colorado they met with other family members who were already in Colorado to finalize plans to rob the victim at her residence. They specifically discussed the plan to rob the victim with Lori Majors, Bryan Majors, Max Majors and Ashleigh Stonebarger. Each agreed to go forward with the plan and split the proceeds of the robbery.
On April 5, 2018, Justin Majors, Cheryl Ann Jordan and Max Majors went to the victim’s residence. Justin Majors and Max Majors entered the victim’s residence through an unlocked dog door. Cheryl Ann Jordan remained in the vehicle waiting for them to complete the robbery.
Justin Majors and Max Majors went into the victim’s bedroom and found her asleep in bed. Justin Majors and Max Majors woke the victim and told her that they had her son tied-up and would hurt him if she did not tell them where the money was located.
The victim told Justin Majors and Max Majors that her money was located in a safe downstairs. Max Majors confined and extorted the victim as Justin Majors went downstairs to look for the safe and the money. Justin Majors located the safe downstairs and pried it open with a pry bar which he had brought to commit the robbery. Justin Majors removed over $350,000 from the safe. Max Majors moved the victim from her bed and confined her in the bathroom until they left the residence with the money. Justin Majors and Max Majors left the residence and split the proceeds from the robbery with Lori Majors and Bryan Majors. The robbery and extortion resulted in a loss of $500,500 to the elderly victim.
Lori and Max Majors were indicted by a federal grand jury on Feb. 6, 2019 and charged with federal kidnapping-related violations.
In October 2017, President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. This past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
This case was investigated by the Federal Bureau of Investigation; El Paso County, Colorado Sheriff’s Office; Durant, Oklahoma Police Department; and the Sherman Police Department and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas, Plano office.