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9 October 2020
U.S. Attorney Robert K. Hur Announces More Than $9.3 Million in Grant Funding from the U.S. Department of Justice to Support Mentoring and to Protect Children in MarylandRead the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur today announced awards of $9,380,000 in Department of Justice grants to support mentoring services for youth and to protect children from abuse, exploitation and threats such as sex trafficking. The awards were made by the Office of Juvenile Justice and Delinquency Prevention and the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs.
“One of the best ways to stop violent crime is to equip young people with the skills necessary to meet the challenges they face,” said United States Attorney Robert K. Hur. “The organizations receiving these funds support youth and provide mentorships and strategies to help them to excel in any situation.”
“Young people in America face an array of challenges, from social and academic pressures to dangerous predators and lethal drugs. They are better equipped to meet those challenges with a model of care and compassion to guide them along,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These awards will support outstanding youth-serving organizations like the Cal Ripken Sr. Foundation, Big Brothers Big Sisters, Boys and Girls Clubs and their local affiliates across the country as they help youth discover their talents, find their purpose and realize their full potential. We are incredibly grateful to our mentorship programs, both nationally and locally. Badges in Blue and Badges for Baseball are great examples of successful community partnerships through law enforcement and mentoring.”
Today’s awards in Maryland are part of more than $261 million going to organizations and agencies across the country. Grants from OJP’s Office of Juvenile Justice and Delinquency Prevention will allow national, state and local organizations to provide mentoring to youth who are at risk of juvenile delinquency, victimization and juvenile justice system involvement. Mentoring programs supported by OJJDP help youth make connections with leaders and respected members of their communities, including law enforcement officers. Police and sheriffs’ departments have formed close and lasting bonds with young citizens, leading to greater trust and respect between law enforcement professionals and community members. Grants also address the impact of the addiction crisis on children and teens. Funds support mentoring in rural and other underserved communities hit hard by the opioid epidemic.
In addition, more than 100 sites are receiving grants from OJJDP and OVC to help find missing children, investigate and prosecute child exploitation cases, serve abused and neglected children, and assist minor victims of human trafficking.
The following organizations in Maryland received funding:
- The National 4-H Council received $3 million for national mentoring programs and $1.25 million for statewide and regional mentoring initiatives for youth impacted by opioids and drug addiction;
- The U.S. Dream Academy received $2.3 million, and the Cal Ripken, Sr. Foundation received $2.23 million for multi-state mentoring programs; and
- The Boys and Girls Clubs of Metropolitan Baltimore received $600,000 for mentoring strategies for youth impacted by opioid and drug addiction.
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit here and here.
Additional information about Fiscal Year 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage
More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Overbey Announces $600,000 to Support Mentoring Services for Children in Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn.– U.S. Attorney J. Douglas Overbey announced an award of $600,000 in Department of Justice grants to the Knoxville Leadership Foundation to support mentoring services for youth to protect children from abuse, exploitation and threats such as sex trafficking. The awards were made by the Office of Juvenile Justice and Delinquency Prevention and the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs.
“Young people in America face an array of challenges, from social and academic pressures to dangerous predators and lethal drugs. They are better equipped to meet those challenges with a model of care and compassion to guide them along,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These awards will support outstanding youth-serving organizations like the Cal Ripken Sr. Foundation, Big Brothers Big Sisters, Boys and Girls Clubs and their local affiliates across the country as they help youth discover their talents, find their purpose and realize their full potential. We are incredibly grateful to our mentorship programs, both nationally and locally. Badges in Blue and Badges for Baseball are great examples of successful community partnerships through law enforcement and mentoring.”
“Knoxville Leadership Foundation has been a pillar in our community for 26 years. These funds will help KLF with initiatives like the AMACHI mentoring program. This initiative helps youth remove barriers and provide the skills necessary to cope with the challenge of an incarcerated parent. Putting funding back into our communities and our youth creates a stronger connection within our communities and benefits everyone,” said U.S. Attorney J. Douglas Overbey
“KLF is so honored to partner with the Department of Justice. These funds will mean so much to children of promise in the Knoxville area. The power of a child having healthy adults in their life is proven and our collaborative works hard every day to ensure that thousands of children have these opportunities for a healthy start said,” Chris Martin, President, Knoxville Leadership Foundation.
Today’s award to KLF in the Eastern District of Tennessee is part of more than $261 million going to organizations and agencies across the country. Grants from OJP’s Office of Juvenile Justice and Delinquency Prevention will allow national, state and local organizations to provide mentoring to youth who are at risk of juvenile delinquency, victimization and juvenile justice system involvement. Mentoring programs supported by OJJDP help youth make connections with leaders and respected members of their communities, including law enforcement officers. Police and sheriffs’ departments have formed close and lasting bonds with young citizens, leading to greater trust and respect between law enforcement professionals and community members. Grants also address the impact of the addiction crisis on children and teens. Funds support mentoring in rural and other underserved communities hit hard by the opioid epidemic.
In addition, more than 100 sites are receiving grants from OJJDP and OVC to help find missing children, investigate and prosecute child exploitation cases, serve abused and neglected children, and assist minor victims of human trafficking.
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit here.
Additional information about Fiscal Year 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Mike Stuart Announces over $600,000 Awarded in Support of West Virginia ChildrenRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart today announced an award of $638,975 in a Department of Justice grant to support direct services to children who are crime victims as a result of the nation's addiction crisis. Today’s award in the Southern District of West Virginia is part of more than $261 million going to organizations and agencies across the country. The awards were made by the Office of Juvenile Justice and Delinquency Prevention (OJJDP) and the Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs (OJP).
“Young people in America face an array of challenges, from social and academic pressures to dangerous predators and lethal drugs. They are better equipped to meet those challenges with a model of care and compassion to guide them along,” said Sullivan. “These awards will support outstanding youth-serving organizations like the Cal Ripken Sr. Foundation, Big Brothers Big Sisters, Boys and Girls Clubs and their local affiliates across the country as they help youth discover their talents, find their purpose and realize their full potential. We are incredibly grateful to our mentorship programs, both nationally and locally. Badges in Blue and Badges for Baseball are great examples of successful community partnerships through law enforcement and mentoring.”
“This funding is desperately needed to help the vast number of West Virginia children negatively affected by the addiction crisis,” said United States Attorney Mike Stuart. “Our children have suffered greatly as a result of substance abuse and addiction and we need to direct every possible resource in support of them during their healing process.”
The grants from OJP’s OJJDP will allow national, state and local organizations to provide mentoring to youth who are at risk of juvenile delinquency, victimization and juvenile justice system involvement. Mentoring programs supported by OJJDP help youth make connections with leaders and respected members of their communities, including law enforcement officers. Police and sheriffs’ departments have formed close and lasting bonds with young citizens, leading to greater trust and respect between law enforcement professionals and community members. Grants also address the impact of the addiction crisis on children and teens. Funds support mentoring in rural and other underserved communities hit hard by the opioid epidemic.
In addition, more than 100 sites are receiving grants from OJJDP and OVC to help find missing children, investigate and prosecute child exploitation cases, serve abused and neglected children, and assist minor victims of human trafficking.
The following organization in the Southern District of West Virginia received funding:
- Legal Aide of West Virginia was awarded $638,975 under OVC’s Enhancing Community Responses to America’s Drug Crisis: Serving our Youngest Crime Victims Program.
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit here and here.
Additional information about Fiscal Year 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
Follow us on Twitter: SDWVNews and USAttyStuart
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U.S. Attorney Michael Bailey Announces over $2 Million to Address School Violence in ArizonaRead the Press Release
PHOENIX, Ariz. – U.S. Attorney Michael Bailey today announced over $2 million in Department of Justice grants to address violence occurring at our nation’s schools. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $87 million to bolster school security, support first responders who arrive on the scene of a school shooting or other violent incident, and conduct research on school safety.
STOP School Violence, a program of OJP’s Bureau of Justice Assistance, improves school security by providing students and teachers with the tools they need to recognize, respond quickly to and help prevent acts of violence. In addition to STOP School Violence Act funding, OJP’s National Institute of Justice is investing in research on school violence.
“Only by removing the threat of violence from our schools can we expect our kids to reap the full benefits of their education, and only after making our places of learning safe can we ask our teachers to instruct and inspire as they are trained to do,” said OJP’s Principal Deputy Attorney General Katharine T. Sullivan. “The Department of Justice is committed to securing our schools from danger and giving our kids the support they need to learn, grow and thrive.”
The following organizations in the District of Arizona received funding:
- Santa Cruz County School Superintendent’s Office - $672,024
- Wickenburg Unified School District 9 - $231,907
- Casa Blanca Community School - $93,558
- Page Unified School District 8 - $709,293
- Tempe Union High School District 213 - $492,632
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
RELEASE NUMBER: 2020-085_School Safety Grants
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Santa Cruz County School Superintendent’s Office - $672,024
U.S. Attorney Davis Announces More Than $10 Million in Grants to Assist Victims in IdahoRead the Press Release
BOISE – U.S. Attorney Bart M. Davis today announced $10,089,836 in Department of Justice grants to assist victims in Idaho. The grants, awarded by the Department’s Office of Justice Programs, are part of almost $1.8 billion distributed to state victim assistance and compensation programs to fund thousands of local victim assistance programs across the country and to provide millions in compensation to victims of crime.
The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under the Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY 2019 alone, VOCA grants served over seven million victims and paid more than $399 million in compensation claims.
“Advocates, service providers, and law enforcement agencies from around the country stand ready to help crime victims exercise their legal rights and reclaim their lives,” said Attorney General William P. Barr. “These new funding resources continue this administration’s unprecedented commitment to providing the support necessary for victims of crimes to be able to heal and recover.”
The awards made to two Idaho organizations, Idaho Department of Health and Welfare and Idaho Industrial Commission, will support local direct victim service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement agencies.
“It is vital we support those agencies that selflessly provide services for victims of crime,” said U.S. Attorney Davis. “The Department and my office are committed to ensuring victims have the necessary resources to begin to heal their physical, emotional, and financial injuries. I am confident these added resources will help victims of crime on their journey to rebuild their lives.”
State victim compensation programs throughout the country will receive over $133 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses and other costs.
“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “These awards will help service providers, as well as law enforcement agencies and prosecutors’ offices respond to the many emotional and material challenges that crime victims in our country face every day.”
The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars. More information about OJP and its components can be found at www.ojp.gov.
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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.
U.S. Attorney Announces $794,650 to Improve Services for Crime VictimsRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands today announced $794,650 in Department of Justice grants to improve services for crime victims. The grants, awarded by the Department’s Office of Justice Programs, are part of over $144 million distributed to enhance the response to victims of crime throughout the United States. Recipients of this funding will include the following organizations:
- Judiciary of Guam - $399,312
- CNMI Department of Public Safety - $395,338
The awards will advance the use of technology, improve community preparedness and law enforcement training, and provide emergency and transitional shelter to assist victims of crime. Programs will also support victims of child abuse and fund research projects related to perpetrators and victims of elder abuse. Approximately $64.3 million was awarded under Office for Victims of Crime grant programs; over $54.1 million was awarded under Office of Juvenile Justice and Delinquency Prevention programs; over $19.9 million was awarded under Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking grant programs; and nearly $5.7 million was awarded under two National Institute of Justice grant programs.
“The Department of Justice is steadfast in its commitment to protecting public safety and bringing justice to those who have been victimized,” said Attorney General William P. Barr. “The investments we are making today will support service providers as they work to secure the legal rights of victims and put survivors of criminal acts on the road to recovery.”
U.S. Attorney Anderson stated, “We must never overlook that most crimes involve victims who suffer from the acts of others. This significant federal funding will promote greater access to victim resources and services. I applaud the efforts of these grant applicants in helping victims obtain justice.”
“As lockdowns and lawlessness fuel crime in America’s homes and communities, more people are vulnerable to victimization and those who have been victimized face new hurdles,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving our victim service partners the tools they need to better serve their clients and protect victims’ rights.”
For a complete list of individual grant programs, award amounts and jurisdictions that will receive this funding, visit:
https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ovcvictimsfactsheet.pdf?utm_medium=email&utm_source=govdelivery
More information about OJP and its components can be found at www.ojp.gov.
- Judiciary of Guam - $399,312
U.s. Attorney Kurt Alme Announces $500,000 to Support Mentoring, Protect Children in District of MontanaRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme today announced an award of $500,000 to Big Sky Youth Empowerment Project, Inc., as among Department of Justice grants to support mentoring services for youth and to protect children from abuse, exploitation and threats such as sex trafficking. The awards were made by the Office of Juvenile Justice and Delinquency Prevention and the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs.
Today’s award in Montana is part of more than $261 million going to organizations and agencies across the country.
“Young people in America face an array of challenges, from social and academic pressures to dangerous predators and lethal drugs. They are better equipped to meet those challenges with a model of care and compassion to guide them along,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These awards will support outstanding youth-serving organizations like the Cal Ripken Sr. Foundation, Big Brothers Big Sisters, Boys and Girls Clubs and their local affiliates across the country as they help youth discover their talents, find their purpose and realize their full potential. We are incredibly grateful to our mentorship programs, both nationally and locally. Badges in Blue and Badges for Baseball are great examples of successful community partnerships through law enforcement and mentoring.”
"Being a teenager is hard enough, but many youth are facing risks from substance abuse, homelessness, neglect and mental health issues. Mentoring programs provide vulnerable young adults with the support they need to grow and become productive and contributing members of their communities. I am pleased to announce this award for the Big Sky Youth Empowerment Project," U.S. Attorney Alme said.
Grants from OJP’s Office of Juvenile Justice and Delinquency Prevention will allow national, state and local organizations to provide mentoring to youth who are at risk of juvenile delinquency, victimization and juvenile justice system involvement. Mentoring programs supported by OJJDP help youth make connections with leaders and respected members of their communities, including law enforcement officers. Police and sheriffs’ departments have formed close and lasting bonds with young citizens, leading to greater trust and respect between law enforcement professionals and community members. Grants also address the impact of the addiction crisis on children and teens. Funds support mentoring in rural and other underserved communities hit hard by the opioid epidemic.
In addition, more than 100 sites are receiving grants from OJJDP and OVC to help find missing children, investigate and prosecute child exploitation cases, serve abused and neglected children, and assist minor victims of human trafficking.
The following organization in Montana received funding:
- Big Sky Youth Empowerment Project, Inc., $500,000
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit here and here.
Additional information about Fiscal Year 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Turner Man Sentenced to Six Years in Prison for Cultivating Marijuana and Other OffensesRead the Press Release
PORTLAND, Maine: A Turner man was sentenced yesterday in federal court in Portland for manufacturing 100 or more marijuana plants, possessing with intent to distribute marijuana, possessing an unregistered silencer and transferring property subject to forfeiture, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Andrew Waite, 32, to six years in prison and four years of supervised release. Judge Singal also ordered Waite to pay a $10,000 fine. Waite pleaded guilty on October 16, 2019.
According to court records, on February 27, 2018, law enforcement officers searched Waite’s residence and two warehouses under his control. In the warehouses, agents seized more than 500 pounds of marijuana, 104 sheets of marijuana concentrate and more than 350 marijuana plants. In his residence, agents seized approximately 100 pounds of marijuana, approximately $216,000 in United States currency, a 2010 Ferrari, firearms, ammunition and a silencer with no markings or serial number.
On April 18, 2018, Waite transferred title of his residence to his brother in order to prevent or impair seizure of the property for criminal forfeiture. In May 2020, Judge Singal ordered that residence criminally forfeited for facilitating the drug offenses.
The U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
Todd County Man Found Not Guilty of Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man was acquitted of Aggravated Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota, beginning on October 6, 2020, and concluding on October 8, 2020.
Conrad Good Voice, Jr., age 24, was indicted on February 11, 2020.
The charge stemmed from an alleged incident that occurred in June 2018, near Mission, South Dakota.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The U.S. Attorney’s Office prosecuted the case.
Three Individuals Plead Guilty to Charges Including Murder, Assault Resulting in Serious Bodily Injury, And/Or Retaliating Against an InformantRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Ross Deerinwater, age 29, of Holdenville, Oklahoma entered a guilty plea to Murder In Indian Country- Second Degree, punishable by up to life imprisonment, a fine up to $250,000.00, or both; Tyler Shane Grandstaff, age 29, of Seminole, Oklahoma entered a guilty plea to Assault Resulting in Serious bodily injury in Indian Country, punishable by up to 10 years’ imprisonment, a fine up to $250,000.00, or both & to Retaliating Against an Informant, punishable by up to 20 years’ imprisonment, a fine up to $250,000.00, or both; and that Caleb Trent Hodgins, age 25, of Holdenville, Oklahoma entered a guilty plea to Assault Resulting in Serious bodily injury in Indian Country, punishable by up to 10 years’ imprisonment, a fine up to $250,000.00, or both.
The Information alleged that on or about June 24, 2018, within the Eastern District of Oklahoma, in Indian Country, the defendant, Tyler Ross Deerinwater, an Indian, willfully, deliberately, maliciously, and with malice aforethought, did unlawfully kill Jonathon Merriman with a firearm.
The Information further alleged that on or about June 24, 2018, within the Eastern District of Oklahoma, in Indian Country, defendants Grandstaff and Hodgins, both Indians, did assault Jonathon Merriman and P.H, resulting in serious bodily injury. Furthermore, on or about August 20, 2020, in the Eastern District of Oklahoma, Grandstaff, did knowingly engage in conduct, specifically, assaulted R.H., which caused bodily injury to R.H., with the intent to retaliate for information given by R.H. to a law enforcement officer relating to the commission of a Federal offense.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of the presentence investigation reports.
Assistant United States Attorney Ryan Conway and Special Assistant United States Attorney Robert Reeves represented the United States at the plea hearings.
Texas Man Charged in $24 Million COVID-Relief FraudRead the Press Release
A Dallas-area man was charged in an indictment filed Thursday for his alleged participation in a scheme to file fraudulent loan applications seeking approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the U.S. Attorney’s Office for the Northern District of Texas, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC), Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation (IRS-CI) Dallas Field Office, and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
Dinesh Sah, 55, of Coppell, Texas, was charged in an indictment filed in the Northern District of Texas with three counts of wire fraud, three counts of bank fraud and one count of money laundering.
The indictment alleges that Sah submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different SBA-approved lenders seeking approximately $24.8 million in PPP loans. In his applications, Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. The indictment further alleges that Sah submitted fraudulent documentation in support of his applications, including falsified federal tax filings and forged bank statements for the purported businesses. Sah ultimately received approximately $17.3 million in PPP loan funds and used the proceeds primarily for personal expenses, spending them on multiple homes and luxury cars, including a 2020 Bentley convertible, and sending millions of dollars in international transfers, the indictment alleges. To date, the government has seized more than $6.5 million in fraudulent proceeds that Sah obtained during the scheme.
The CARES Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the funds towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Dallas Field Offices of FDIC-OIG, IRS-CI, and TIGTA. Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section, and Economic Crimes and Public Corruption Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas, are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Suburban Chicago Businessman Charged with Illegally Exporting Arms to UkraineRead the Press Release
A suburban Chicago businessman has been indicted on federal criminal charges for allegedly illegally exporting gun parts and other defense articles from the United States to a company in Ukraine.
Glenn Stepul owned a Buffalo Grove, Ill.-based business that distributed horizontal directional drilling equipment. From 2014 to 2016, Stepul conspired with a Ukranian resident – Andriy Yakin – and an unindicted co-conspirator in Ukraine to violate the Arms Export Control Act by exporting or attempting to export pistol slides and stainless steel gun barrels from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of State, according to an indictment returned in U.S. District Court in Chicago. Stepul, Yakin, and the unindicted co-conspirator also conspired to violate the International Emergency Economic Powers Act by exporting or attempting to export rifle scopes and night-vision cameras from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of Commerce, the indictment states.
The charges allege that Stepul commingled and concealed some of the export-controlled items inside shipments of drilling equipment sent to Ukraine. One such shipment was intercepted by customs officials in Lviv, Ukraine, in September 2014, the indictment states. Stepul had completed a customs declaration falsely describing the items inside the parcel as “household goods,” “cosmetics,” “toys,” “stationary,” and “cassettes,” the indictment states.
The indictment charges Stepul, 33, of Miami Beach, Fla., and formerly of Wheeling, Ill., and Yakin, 38, of Poltava, Ukraine, with conspiracy to violate the AECA and IEEPA and knowingly impede and obstruct the functions of the Commerce and State Departments. Stepul also faces additional export-control, smuggling, and false statement charges. Stepul pleaded not guilty to all charges during his arraignment Thursday before U.S. District Judge John Robert Blakey in Chicago. Judge Blakey scheduled a status hearing for Dec. 16, 2020, at 1:00 p.m.
Yakin is believed to be residing in Ukraine, and a warrant for his arrest has been issued.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Grayson S. Walker.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Suburban Chicago Businessman Charged with Illegally Exporting Arms to UkraineRead the Press Release
CHICAGO —A suburban Chicago businessman has been indicted on federal criminal charges for allegedly illegally exporting gun parts and other defense articles from the United States to a company in Ukraine.
GLENN STEPUL owned a Buffalo Grove, Ill.-based business that distributed horizontal directional drilling equipment. From 2014 to 2016, Stepul conspired with a Ukranian resident – ANDRIY YAKIN – and an unindicted co-conspirator in Ukraine to violate the Arms Export Control Act by exporting or attempting to export pistol slides and stainless steel gun barrels from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of State, according to an indictment returned in U.S. District Court in Chicago. Stepul, Yakin, and the unindicted co-conspirator also conspired to violate the International Emergency Economic Powers Act by exporting or attempting to export rifle scopes and night-vision cameras from the United States to Ukraine, without obtaining the required authorization from the U.S. Department of Commerce, the indictment states.
The charges allege that Stepul commingled and concealed some of the export-controlled items inside shipments of drilling equipment sent to Ukraine. One such shipment was intercepted by customs officials in Lviv, Ukraine, in September 2014, the indictment states. Stepul had completed a customs declaration falsely describing the items inside the parcel as “household goods,” “cosmetics,” “toys,” “stationary,” and “cassettes,” the indictment states.
The indictment charges Stepul, 33, of Miami Beach, Fla., and formerly of Wheeling, Ill., and Yakin, 38, of Poltava, Ukraine, with conspiracy to violate the AECA and IEEPA and knowingly impede and obstruct the functions of the Commerce and State Departments. Stepul also faces additional export-control, smuggling, and false statement charges. Stepul pleaded not guilty to all charges during his arraignment Thursday before U.S. District Judge John Robert Blakey in Chicago. Judge Blakey scheduled a status hearing for Dec. 16, 2020, at 1:00 p.m.
Yakin is believed to be residing in Ukraine, and a warrant for his arrest has been issued.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Grayson S. Walker.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Springdale Man Sentenced to over 17 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Raul Martinez, age 40, was sentenced yesterday, to 210 months in federal prison, followed by five years of supervised release and ordered to pay $25,000.00 in fines for the Distribution of more than 500 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into the distribution of controlled substances in the Western District of Arkansas, the Drug Enforcement Administration (DEA) identified Martinez, as a distributor of methamphetamine in Northwest Arkansas, and an investigation was initiated into his criminal activity.
In December 2019, agents with the DEA and local law enforcement conducted a controlled delivery of methamphetamine from Martinez. The methamphetamine from Martinez was sent to the DEA crime lab to be tested. The lab determined that it contained 1306.2 grams of actual methamphetamine.
A federal grand jury indicted Martinez in May 2019, and he entered a guilty plea in September 2019.
This case was investigated by the Drug Enforcement Administration and the Benton County/Rogers Police Department Narcotic Unit, Springdale Police Department and the 4th JDDTF. Assistant United States Attorney’s Amy Driver and Kim Harris prosecuted the case for the United States.
Singaporean National Sentenced to 14 Months in Prison for Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
Jun Wei Yeo, also known as Dickson Yeo, was sentenced today in federal court to 14 months in prison. Yeo pled guilty on July 24, 2020 to acting within the United States as an illegal agent of a foreign power without first notifying the Attorney General, in violation of 18 U.S.C. § 951. The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting United States Attorney for the District of Columbia; James A. Dawson, Acting Assistant Director in Charge of FBI Washington Field Office; Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division; and Deputy Assistant Secretary Ricardo Colón, Domestic Operations.
Yeo was sentenced by The Honorable Tanya S. Chutkan of the United States District Court for the District of Columbia.
“At the direction of the Government of the People’s Republic of China, Yeo recruited Americans to provide information that he would pass back to his PRC handlers,” said Assistant Attorney General for National Security John C. Demers. “Yeo concealed his PRC affiliation from his recruits and, contrary to law, from the United States Government. This criminal conduct is part of the PRC’s efforts to exploit the openness of American society by using agents who may appear innocuous, but who act upon taskings from a foreign government to obtain access and information.”
“This case serves as a reminder that China is using professional networking social media sites to target U.S. citizens with government security clearances, and to try to gain non-public and classified information. The threat is real, and we will prosecute foreign agents who exploit those platforms,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia.
“Today we are reminded yet again of the Chinese government's aggressive attempts to gain knowledge and information about U.S. policy and government," said James A. Dawson, Acting Assistant Director in Charge of the FBI's Washington Field Office. "The FBI’s warning is not new, but the message warrants repeating: the Chinese communist government is working to gain information and access by all means, including recruiting US-based individuals to provide classified and/or sensitive information. There is no doubt that if you are a former clearance holder, you are an ideal and vulnerable target because of your knowledge and access. If you believe you have been the target of a recruitment scheme, the FBI is here to help. We remain committed to rebuffing the Chinese government’s attempts, and to protecting the American people, our ideas, and our national and economic security interests.”
"Jun Wei Yeo admittedly acted as an illegal agent of a foreign power by using various social media sites, such as a professional networking website and other social networking applications, to recruit Americans with access to sensitive government information. He identified their vulnerabilities, like dissatisfaction with work or financial difficulties, and offered money in exchange for information and written reports,” said Alan E. Kohler Jr., Assistant Director of the FBI’s Counterintelligence Division. "This is a sobering reminder that the U.S. needs to be clear-eyed about the scope of the Chinese government’s ambition to manipulate Americans for their own nation’s advancement; and, confronting this threat remains the FBI’s top counterintelligence priority."
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI, and the U.S. Attorney’s Office resulted in today's sentencing of Mr.Yeo before he could potentially harm the security of our country,” said Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service. “This was a great success by all of the agencies involved.”
As outlined in the Statement of Offense, Yeo began working with Chinese intelligence officers as early as 2015, initially targeting other Asian countries, but then focusing on the United States. In response to taskings from his Chinese intelligence contacts, Yeo worked to spot and assess Americans with access to valuable non-public information, including U.S. military and government employees with high-level security clearances. After Yeo identified American targets, he solicited them for non-public information and paid them to write reports. Yeo told these American targets that the reports were for clients in Asia, without revealing that they were in fact destined for the Chinese government.
Yeo made use of various social media sites to carry out the taskings given to him by Chinese intelligence operatives. In 2018, Yeo created a fake consulting company that used the same name as a prominent U.S. consulting firm that conducts public and government relations, and Yeo posted job advertisements under that company name. Ninety percent of the resumes Yeo received in response were from U.S. military and government personnel with security clearances, and he passed resumes of interest to one of the Chinese intelligence operatives.
Yeo also used a professional networking website that is focused on career and employment information to carry out the taskings he received from Chinese intelligence officials. Yeo used the professional networking website to find individuals with resumes and job descriptions suggesting that they would have access to valuable information. After he identified individuals worth targeting, Yeo followed guidance he received from Chinese intelligence operatives regarding how to recruit potential targets, including identifying their vulnerabilities, such as dissatisfaction with work or financial difficulties.
The investigation into this matter was conducted by the Federal Bureau of Investigation’s Washington Field Office and the U.S. Department of State’s Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorneys Thomas N. Saunders and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with David Aaron of the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice. If you suspect you have been the target of a recruitment scheme, contact your local FBI Field Office.
Singaporean National Sentenced to 14 Months in Prison for Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
WASHINGTON – Jun Wei Yeo, also known as Dickson Yeo, was sentenced today in federal court to 14 months in prison. Yeo pled guilty on July 24, 2020 to acting within the United States as an illegal agent of a foreign power without first notifying the Attorney General, in violation of 18 U.S.C. § 951. The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting United States Attorney for the District of Columbia; James A. Dawson, Acting Assistant Director in Charge of FBI Washington Field Office; Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division; and Deputy Assistant Secretary Ricardo Colón, Domestic Operations Deputy Assistant Secretary Ricardo Colón, Domestic Operations.
Yeo was sentenced by The Honorable Tanya S. Chutkan of the United States District Court for the District of Columbia.
“At the direction of the Government of the People’s Republic of China, Yeo recruited Americans to provide information that he would pass back to his PRC handlers,” said Assistant Attorney General for National Security John C. Demers. “Yeo concealed his PRC affiliation from his recruits and, contrary to law, from the United States Government. This criminal conduct is part of the PRC’s efforts to exploit the openness of American society by using agents who may appear innocuous, but who act upon taskings from a foreign government to obtain access and information.”
“This case serves as a reminder that China is using professional networking social media sites to target U.S. citizens with government security clearances, and to try to gain non-public and classified information. The threat is real, and we will prosecute foreign agents who exploit those platforms,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia.
“Today we are reminded yet again of the Chinese government's aggressive attempts to gain knowledge and information about U.S. policy and government," said James A. Dawson, Acting Assistant Director in Charge of the FBI's Washington Field Office. "The FBI’s warning is not new, but the message warrants repeating: the Chinese communist government is working to gain information and access by all means, including recruiting US-based individuals to provide classified and/or sensitive information. There is no doubt that if you are a former clearance holder, you are an ideal and vulnerable target because of your knowledge and access. If you believe you have been the target of a recruitment scheme, the FBI is here to help. We remain committed to rebuffing the Chinese government’s attempts, and to protecting the American people, our ideas, and our national and economic security interests.”
"Jun Wei Yeo admittedly acted as an illegal agent of a foreign power by using various social media sites, such as a professional networking website and other social networking applications, to recruit Americans with access to sensitive government information. He identified their vulnerabilities, like dissatisfaction with work or financial difficulties, and offered money in exchange for information and written reports,” said Alan E. Kohler Jr., Assistant Director of the FBI’s Counterintelligence Division. "This is a sobering reminder that the U.S. needs to be clear-eyed about the scope of the Chinese government’s ambition to manipulate Americans for their own nation’s advancement; and, confronting this threat remains the FBI’s top counterintelligence priority."
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI, and the U.S. Attorney’s Office resulted in today's sentencing of Mr. Yeo before he could potentially harm the security of our country,” said Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service. “This was a great success by all of the agencies involved.”
As outlined in the Statement of Offense, Yeo began working with Chinese intelligence officers as early as 2015, initially targeting other Asian countries, but then focusing on the United States. In response to taskings from his Chinese intelligence contacts, Yeo worked to spot and assess Americans with access to valuable non-public information, including U.S. military and government employees with high-level security clearances. After Yeo identified American targets, he solicited them for non-public information and paid them to write reports. Yeo told these American targets that the reports were for clients in Asia, without revealing that they were in fact destined for the Chinese government.
Yeo made use of various social media sites to carry out the taskings given to him by Chinese intelligence operatives. In 2018, Yeo created a fake consulting company that used the same name as a prominent U.S. consulting firm that conducts public and government relations, and Yeo posted job advertisements under that company name. Ninety percent of the resumes Yeo received in response were from U.S. military and government personnel with security clearances, and he passed resumes of interest to one of the Chinese intelligence operatives.
Yeo also used a professional networking website that is focused on career and employment information to carry out the taskings he received from Chinese intelligence officials. Yeo used the professional networking website to find individuals with resumes and job descriptions suggesting that they would have access to valuable information. After he identified individuals worth targeting, Yeo followed guidance he received from Chinese intelligence operatives regarding how to recruit potential targets, including identifying their vulnerabilities, such as dissatisfaction with work or financial difficulties.
The investigation into this matter was conducted by the Federal Bureau of Investigation’s Washington Field Office and the U.S. Department of State’s Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorneys Thomas N. Saunders and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with David Aaron of the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice. If you suspect you have been the target of a recruitment scheme, contact your local FBI Field Office.
Shiprock man charged with murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Simeon Atcitty, 38, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court on Sept. 29 for a detention hearing. A federal grand jury indicted Atcitty Sept. 10 on a charge of second degree murder in Indian Country. Atcitty will remain in custody pending trial.
According to the indictment, on or about June 19, Atcitty allegedly killed a victim, identified in court records as John Doe, in San Juan County, New Mexico.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The FBI Farmington Resident Agency investigated this case. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
Road Rage Incident on H.E. Baily Turnpike Involving Discharge of Firearm Lands Lawton Man in Federal Prison for Ten YearsRead the Press Release
OKLAHOMA CITY – Today, NATHAN R. ROLLINS, JR., 29, of Lawton, Oklahoma, was sentenced to serve 120 months in prison for possessing a firearm after a prior felony conviction, stemming from a road rage incident on the H.E. Bailey Turnpike in Lawton, Oklahoma, announced U.S. Attorney Timothy J. Downing.
According to court records and proceedings, on December 11, 2019, Rollins was the driver of a vehicle with passenger and co-defendant, Martavious Gross. When Rollins and Gross believed they were cut off by another driver on the turnpike, Gross rolled down his window, yelled at the other driver, made obscene gestures. Rollins slowed down for a moment and then sped up to catch the other vehicle. When they caught up to the other vehicle, Gross brandished a firearm for the driver of the other vehicle to see, and then fired at the vehicle with the handgun.
In responding to a 911 call, an Oklahoma Highway Patrol Trooper located Rollins’ vehicle, clocking it at 106 miles per hour. After stopping the vehicle, the Trooper found an AR-15 rifle loaded with a high capacity magazine, the handgun that was fired in the incident, two black masks, marijuana, and drug paraphernalia. Rollins and Gross were then arrested.
On January 8, 2020, Rollins was charged with possession of a firearm after a felony conviction. On February 26, 2020, he pled guilty and admitted to unlawful possession of the AR-15 rifle. Today, Senior U.S. District Judge Joe Heaton sentenced Rollins to serve 120 months in prison, the statutory maximum for the offense, followed by three years of supervised release. In imposing the sentence, the Judge not only considered the serious nature of Rollins’ crime, but also his lengthy history of domestic violence, including a conviction in 2019 in Comanche County for domestic assault and battery by strangulation, and his history of abusing firearms. The Judge concluded that a lengthy sentence was necessary to protect the public from Rollins’ escalating pattern of violent conduct.
On March 10, 2020, co-defendant Gross pled guilty to illegal possession of a firearm while being subject to a domestic violence protective order. He is currently in custody and awaiting sentencing.
This case is the result of an investigation by the Oklahoma Highway Patrol and the Department of Homeland Security Investigations. Assistant United States Attorney Wilson D. McGarry prosecuted the case.
Queens Pharmacy Operator Charged with Obstruction of Justice for Sending Powder Cocaine to DEA Investigator’s HomeRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today that DIMITRIOS LYMBERATOS, the operator of a Queens pharmacy, has been charged with obstruction of justice for arranging for a package containing white powder, later identified as cocaine, to be sent to the home address of a DEA Diversion Investigator who was investigating LYMBERATOS’s pharmacy. LYMBERATOS surrendered to the DEA this morning and will be presented before United States Magistrate Judge Barbara Moses in Manhattan federal court later today.
Acting U.S. Attorney Audrey Strauss said: “When Dimitrios Lymberatos learned his pharmacy was under investigation by the DEA, he allegedly took sinister action against a Diversion Investigator assigned to his case. Lymberatos allegedly sought to interfere with the investigation through intimidation, by sending cocaine to the Investigator’s home, potentially causing physical harm. Lymberatos’s misguided message was received loud and clear – and he now faces the possibility of a lengthy prison term for his potentially harmful attempt to obstruct law enforcement.”
DEA Special Agent in Charge Raymond P. Donovan said: “Today’s arrest is another example to the public that pharmacy owners can set out to do harm with ill intent. One of our own Diversion Investigators was allegedly targeted simply for doing their job, and as such, Mr. Lymberatos’s alleged actions were completely unconscionable. Thankfully, due to the diligent work of our Tactical Diversion Squads, he will be brought to justice.”
NYPD Commissioner Dermot Shea said: “I want to commend the officers, detectives, federal agents, and prosecutors who worked together to investigate the dangerous acts alleged in these charges.”
According to the allegations in the Complaint unsealed today[1]:
LYMBERATOS is the operator of a pharmacy in Queens, New York. Beginning in or about November 2019, the DEA, led by a DEA Diversion Investigator, conducted an overt regulatory investigation into the pharmacy, which had the effect of delaying the issuance of the pharmacy’s registration to dispense controlled substances. LYMBERATOS responded to the investigation of his pharmacy by taking steps to obstruct the investigation, including hiring a private investigator to obtain the Diversion Investigator’s home address, and then causing to be mailed to the Diversion Investigator’s home a greeting card containing a white powdery substance, which law enforcement later determined to be cocaine. Upon receiving the package with white powder, the Diversion Investigator immediately notified law enforcement, which responded to the scene, and the Diversion Investigator was taken to the hospital for toxicology screening. LYMBERATOS caused the package to be sent to the Diversion Investigator in order to interfere with and obstruct the pending investigation into his pharmacy by threatening the Diversion Investigator, deliberately causing the Diversion Investigator to fear for her physical safety, and seeking to create trouble for the Diversion Investigator by causing her to come into possession of an illegal controlled substance.
* * *
LYMBERATOS, 34, of Queens, New York, is charged with one count of obstruction of justice and one count of conspiracy to obstruct justice. Each charge carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the DEA’s New York Tactical Diversion Squad, which comprises agents and officers from the DEA, the New York City Police Department, the New York State Police, New York State Department of Financial Services, New York National Guard, New York City Department of Investigation, and New York State Department of Health Bureau of Narcotics Enforcement. Ms. Strauss also praised the outstanding work of the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force Tactical Diversion Squad. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jacob R. Fiddelman and Kedar S. Bhatia are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Portsmouth Woman Charged with Fraud Scheme Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging a Portsmouth woman with wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
According to allegations in the indictment, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” Copeland purported to provide caregiving, contracting and rental assistance services to various veterans from 2016 through 2019. Copeland allegedly caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland allegedly failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds. Copeland also allegedly diverted the income and retirement fund payments of another veteran to a bank account that she had opened. Copeland also allegedly fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland also allegedly engaged in a rental fraud scheme, purporting to link veterans with landlords, but then diverting rental and security deposit payments to her own benefit.
Copeland is charged with eight counts of wire fraud and one count of aggravated identity theft. If convicted, Copeland faces a maximum penalty of 20 years on the wire fraud charges and a mandatory consecutive term of two years on the aggravated identity theft charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Brian Samuels is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-63.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Portland Resident Accused of Civil DisorderRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Portland, Oregon resident has been charged with Civil Disorder after he attempted to punch a Portland Police officer in the face during an unlawful assembly on August 4, 2020.
A federal grand jury in Portland has returned a 1-count indictment charging Travis Austin Hessel, 27, with Civil Disorder.
According to court documents, in the early morning hours of August 4, 2020, an unlawful assembly was declared near the Penumbra Kelly Public Safety Building, located at 4735 E. Burnside Street in Portland, after individuals in a crowd of protestors shined powerful lasers at officers’ eyes, threw water bottles, beer and soda cans, marbles, and other hard objects at police officers. The crowd also blocked vehicular traffic on the street requiring a fire engine to divert around the protestors in order to respond to a structure fire.
When officers attempted to disburse the protestors, a smaller group of protestors braced themselves in an effort to resist being moved. A physical melee ensued, during which Hessel threw a punch at a female officer. When the officer grabbed him in order to place him under arrest, Hessel attempted to flee and dragged the officer a short distance before she lost her grip. Two other officers were able to detain Hessel and placed him under arrest.
Hessel was arraigned on the Indictment in federal court today before a U.S. Magistrate Judge Stacie F. Beckerman. Hessel pleaded not guilty, and ordered released pending a 2-day jury trial scheduled to begin on December 8, 2020.
The Federal Bureau of Investigation investigated this case. It is being prosecuted by the United States Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pembroke Pines Resident Charged for Fraud Related to Hurricane IrmaRead the Press Release
Miami, Fl. – A 45-year-old Pembroke Pines woman has been charged with disaster relief fraud and other federal crimes in connection with her application and receipt of federal relief funds following Hurricane Irma.
According to allegations contained in the complaint, in September of 2017, after Hurricane Irma, Desmicia Mathis filed a fraudulent property damage claim with the Federal Emergency Management Agency (“FEMA”), and received disaster and rental assistance money to which she was not entitled. Mathis used the fraudulently obtained FEMA funds and moved into a rental apartment. She utilized a stolen identity to obtain a new residence and establish utility accounts, according to the complaint.
Mathis made her initial appearance today in Fort Lauderdale before U.S. Magistrate Alicia O. Valle.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, James DePalma, Special Agent in Charge, Department of Homeland Security – Office of Inspector General (DHS-OIG), Miami Field Office, and Rodregas Owens, Special Agent in Charge, Social Security Administration - Office of the Inspector General (SSA-OIG), Atlanta Field Division, made the announcement.
DHS–OIG and SSA-OIG investigated the case. Assistant U.S. Attorney Marc S. Anton is prosecuting the case.
A complaint is merely an accusation that contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 20-mj-6441.
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Owner of Japanese Fishing Vessel Pleads Guilty to Unlawful Trafficking of Shark FinsRead the Press Release
Hamada Suisan Co. Ltd., the owner of the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20, pleaded guilty, pursuant to a plea agreement, to aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced.
The company was sentenced to pay a fine of $126,000, forfeiture of $119,000 (representing the value of the vessel), and a period of probation of three years. This sentence represents the largest monetary penalty ever imposed for a federal shark finning case. During the three-year probation period, the company must comply with a robust compliance plan developed in coordination with the Department of Justice and supervised by the probation officer. The company must also retire and relinquish the fishing license in Japan previously associated with the Kyoshin Maru.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Justice Department’s Environment and Natural Resources Division. “The sentence imposed today, and Japan’s related actions holding this Japanese company to account, reflects the seriousness of these offenses and the United States’ and international commitment to ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
According to court documents, the case arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Kyoshin Maru. The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. When sharks were caught as bycatch by the Kyoshin Maru, the fishing master of the vessel directed the crew members to haul the shark into the vessel and kill the shark, instead of cutting the line and letting the shark swim free, in order to save the hook. The crew members followed this instruction, though at times they cut the line when the fishing master was not looking, in order to avoid the danger of handling a live shark. The fishermen dried the shark fins without the corresponding shark carcasses, in plain view of the captain and crew. The captain and the fishing master personally observed the shark finning that took place on the vessel, and did nothing to stop it. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service (FWS) seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration (NOAA), the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES.
The 10 Indonesian nationals with shark fins in their luggage were arrested and eventually pled guilty to a violation of the Lacey Act in United States v. Abdurahman et al., Cr. No. 18-00192 KJM.
The Japan Fisheries Agency, which is the government agency in Japan responsible for enforcement of Japan's shark finning laws, conducted a parallel investigation. On March 27, 2019, Japan found a violation of Japan's shark finning ordinances, and imposed an administrative penalty upon the Kyoshin Maru, specifically a “stoppage” that prohibited the vessel from operating for a period of 67 days, and also prohibited maintenance or repairs during the stoppage period. The Kyoshin Maru did not operate and remained at port from the time it arrived in Japan after dropping off the fishermen in Honolulu, until the time it was eventually sold – a period of approximately eight months, during which the vessel deteriorated. The parties stipulated that $119,000 in substitute assets is appropriate in lieu of forfeiture of the Kyoshin Maru, which is now beyond the control of the defendants.
The possession and sale of shark fins are regulated by several international treaties, to which both Japan and the United States are parties. These treaties obligate member nations to pass domestic laws prohibiting the retention onboard of any part of certain protected shark species, including oceanic whitetip sharks and silky sharks; and to require shark fins to comprise no more than 5 percent of the weight of sharks on board, among other requirements. Japan and the United States have passed domestic laws that implement these treaty obligations by restricting the shark fin trade. The State of Hawaii goes beyond these treaty obligations and completely bans the shark fin trade. It is unlawful to possess, sell, offer for sale, trade, or distribute shark fins in Hawaii, and Hawaii was the first state to impose an outright ban on the shark fin trade.
This case was investigated by the FWS, Office of Law Enforcement, with assistance from NOAA, Office of Law Enforcement; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and the U.S. Coast Guard. It was prosecuted by Senior Counsel for Wildlife Programs Elinor Colbourn of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Marc A. Wallenstein for the District of Hawaii. The prosecution team coordinated with the U.S. Department of State on this matter.
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.
Owner of Food Service Firm Operating in Government Buildings Throughout the D.C. Area Sentenced to Prison for Payroll Tax FraudRead the Press Release
A Potomac, Maryland, owner of companies providing food services in government buildings was sentenced to 21 months imprisonment for not paying more than $10 million in employment and sales tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Michael R. Sherwin for the District of Columbia.
According to documents and information provided to the court, Steve Choi was the founder, president, and operator of nine companies that provided food services within government buildings located in the D.C. area, including the Department of Justice, the Department of Agriculture, the Department of Energy, the Department of Commerce, NASA, and the Library of Congress, among other locations.
As president and operator of the companies, Choi was responsible for collecting and paying employment taxes to the IRS. Notwithstanding these obligations, and civil collection efforts from the IRS, from 2012 through 2015, Choi collected tax withholdings from his employees’ wages, but did not pay over $4.4 million in employment taxes. During the same period, Choi also did not pay more than $6.2 million in sales taxes to the D.C. Office of Tax and Revenue. Rather than pay the sales and employment taxes, from 2011 through 2015, Choi directed his companies to pay millions of dollars in other expenditures, including over $1 million in personal salary, personal donations, and cash advances.
On Feb. 7, 2020, Choi pleaded guilty to employment tax fraud.
“As an employer, Choi had a legal obligation to pay over the money withheld for taxes on behalf of his employees,” said IRS-Criminal Investigation (CI) Special Agent in Charge Kelly R. Jackson. “CI will continue to investigate those who choose to utilize their companies’ payroll tax withholdings for their personal benefit.”
In addition to the term of imprisonment, U.S. District Judge Ketanji Brown Jackson ordered Choi to serve three years of supervised release and to pay approximately $6,390,182 in restitution to the Office of Tax and Revenue and $4,737,809 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman, Acting U.S. Attorney Sherwin, and IRS-CI Special Agent in Charge Kelly R. Jackson thanked special agents of IRS-CI and Office of Tax and Revenue who investigated the case, and Trial Attorneys Jack Morgan and Eric Schmale of the Tax Division, as well as Assistant U.S. Attorney Veronica Sanchez, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Office of Justice Programs Awards $261 Million to Support Youth Mentoring, Protect ChildrenRead the Press Release
The Office of Justice Programs (OJP) today announced that it has awarded $261 million in grant awards to support mentoring services for youth and to protect children from abuse, exploitation and threats such as sex trafficking. Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement at an event with leaders and representatives of the Cal Ripken Sr. Foundation and local chapters of the Police Athletic League, along with local police chiefs.
“Young people in America face an array of challenges, from social and academic pressures to dangerous predators and lethal drugs. They are better equipped to meet those challenges with a model of care and compassion to guide them along,” said Sullivan. “These awards will support outstanding youth-serving organizations like the Cal Ripken Sr. Foundation, Big Brothers Big Sisters, Boys and Girls Clubs and their local affiliates across the country as they help youth discover their talents, find their purpose and realize their full potential. We are incredibly grateful to our mentorship programs, both nationally and locally. Badges in Blue and Badges for Baseball are great examples of successful community partnerships through law enforcement and mentoring.”
Grants from OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) will allow national, state and local organizations to provide mentoring to youth who are at risk of juvenile delinquency, victimization and juvenile justice system involvement. Funds also support the National Mentoring Resource Center, which last year provided training and other support to 362 school-, community- and faith-based mentoring programs that served more than 79,000 youth nationwide.
“We can take no greater step toward securing the future health and prosperity of our nation than by investing now in the physical safety and emotional resilience of our children,” said OJJDP Administrator Caren Harp. “These grants will give law enforcement officials, service providers and children’s advocates the resources they need to fight off predators, take kids out of harm’s way and help children overcome the effects of trauma.”
Mentoring programs supported by OJJDP help youth make connections with leaders and respected members of their communities, including law enforcement officers. Police and sheriffs’ departments have formed close and lasting bonds with young citizens, leading to greater trust and respect between law enforcement professionals and community members. Grants also address the impact of the addiction crisis on children and teens. Funds support mentoring in rural and other underserved communities hit hard by the opioid epidemic.
In addition, more than 100 sites are receiving grants from OJJDP and OJP’s Office for Victims of Crime to help find missing children, investigate and prosecute child exploitation cases, serve abused and neglected children, and assist minor victims of human trafficking.
Sullivan was joined today by Steve Salem, President and CEO of the Cal Ripken Sr. Foundation; V. Glenn Fueston Jr. of the Maryland Governor’s Office of Crime Prevention, Youth and Victim Services; Sergeant Kweise Dadzie from the Prince George’s Police Athletic League Badges for Baseball mentorship program; U.S. Attorney for the District of Maryland Rob K. Hur; and representatives of the Boys and Girls Club of Annapolis and Anne Arundel County, where the event was held.
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit here and here.
Additional information about Fiscal Year 2020 grant awards made by OJP can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components is located at www.ojp.gov.
Niles, Michigan Man Sentenced to 71 Months in PrisonRead the Press Release
SOUTH BEND –Clarence Bonds, 36, of Niles, Michigan was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty to transporting a firearm in interstate commerce knowing that a felony offense would be committed with it, announced U.S. Attorney Kirsch.
Mr. Bonds was sentenced to 71 months in prison followed by 2 years of supervised release.
According to documents filed in this case, Mr. Bonds was on federal supervised release for conspiracy to possess with intent to distribute crack cocaine when he bought a .45 caliber handgun in Michigan. Mr. Bonds brought the gun from Niles, Michigan to South Bend, where he was caught with it while a passenger in a car stopped by police. Mr. Bonds has multiple prior convictions, including several for weapons-related offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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New Britain Man Admits Distributing Fentanyl and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORDAN FLYTHE, also known as “T,” 28, of New Britain, pleaded guilty today to one count of possession with intent to distribute, and distribution of, fentanyl and cocaine base (“crack”).
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department identified Flythe as a narcotics distributor who supplied various gang members in the Hartford’s South End. On February 3, 2020, after investigators conducted a controlled purchase of approximately six grams of crack cocaine from Flythe in exchange for $300 in Hartford, Hartford Police stopped Flythe’s vehicle and arrested Flythe on state narcotics charges. A search of Flythe’s vehicle and person at the time of his arrest revealed approximately 20 grams of crack, a digital scale and $3,450 in cash.
While Flythe was released on bond in his state case, investigators made controlled purchases from Flythe of approximately 12 grams of crack on February 12, and 100 sleeves of fentanyl and approximately eight grams of crack on February 17.
Flythe has been detained since his federal arrest on February 26, 2020.
Flythe is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 20, 2021, at which time he faces a maximum term of imprisonment of 20 years.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Navajo man pleads guilty in federal court to abusive sexual contact in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Lyle Woody Begay, 34, pleaded guilty today in federal court in Albuquerque to abusive sexual contact in Indian Country.
According to the plea agreement, Begay sexually abused the child on or about Feb. 23, 2004, through Dec. 31, 2011, in San Juan County, New Mexico, within the exterior boundaries of the Navajo Nation Indian Reservation. Begay, an enrolled member of the Navajo Nation, admitted in a plea agreement to causing intentional and unlawful sexual contact with a minor under the age of twelve with the intent to abuse, humiliate, harass, degrade, arouse or gratify sexual desire.
Begay is currently in custody awaiting sentencing. He faces 10 to 15 years in prison under the terms of his plea agreement. Begay also must register as a sex offender upon his release from prison.
The Gallup office of the FBI and the Navajo Nation Criminal Investigations unit investigated this case. Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback are prosecuting the case.
NDTX Round-Up: October 2-8Read the Press Release
SENTENCING – DAVID MARTINEZ MARTINEZ
On October 5, David Martinez Martinez, 40, was sentenced to two years in federal prison for possession of a firearm by prohibited person. Martinez was previously admitted to the United States on a non-immigrant visa and not allowed to possess a firearm. In October 2019, Martinez was driving a truck down Interstate-45 when law enforcement noticed a defective taillight and pulled the vehicle over. A search was conducted of Martinez’s truck. Law enforcement recovered five firearms hidden in various packages. This case was investigated by the ATF. Assistant U.S. Attorney Melanie Smith prosecuted this case.
SENTENCING – ROBERT RIVEROS
On October 5, Robert Riveros was sentenced to 22 years for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and possessing a firearm in furtherance of crime of violence. In 2016, Riveros was charged along with four other coconspirators for a string of violent robberies against jewelers. In one instance, Riveros punched through a car window of a jewelry salesman and took a case containing jewelry. The jewelry salesman attempted to enter a co-defendant’s vehicle through the window and to retrieve his case. Riveros and other co-defendants drove to an apartment complex in Irving, where the victim was removed from the vehicle and beaten, which contributed to his death. This case was investigated by the FBI, Dallas Police Department, and the DFW International Airport Department of Public Safety. Assistant U.S. Attorney Keith Robinson is prosecuted this case.
GUILTY PLEA – ANTONIO LULE
On October 6, Antonio Lule, 26, plead guilty to assaulting, resisting, or impeding certain officers or employees. FBI agents obtained a search warrant for a Dallas residence. Shortly before SWAT arrived at the residence, FBI agents who had been conducting surveillance that morning arrived and encountered Lule, who began yelling profanity at the agents. When SWAT arrived, agents gave verbal commands to Lule so law enforcement could detain him. Lule initially refused to obey the commands given by agents. As Lule was being detained he intentionally bit an agent. Lule faces up to 1 year years in federal prison for his crimes. This case was investigated by the FBI. Assistant U.S Attorney P.J. Meitl is prosecuting this case.
SENTENCING – ARTURO CALDERON
On October 7, Arturo Calderon, 26, was sentenced to 40 months in federal prison for making a false statement during the purchase of a firearm. Between February 2018 and February 2019, Calderon purchased numerous firearms from licensed vendors. During the purchase of these firearms, Calderon responded falsely to the question on the ATF Form that asks if the buyer is “the actual transferee/buyer of the firearms(s) listed on this form.” Calderon purchased at least 16 firearms that he then gave to an individual who covered the cost of the firearms, and then additionally compensated Calderon. This case was investigated by the ATF. Assistant U.S. Attorneys Jon Bradshaw and Brian McKay prosecuted the case.
Muskogee Man Pleads Guilty to Child Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Wayne Miller, age 41, of Muskogee, Oklahoma entered a guilty plea to Child Abuse In Indian Country (2 Counts) in violation of Title 18, United States Code, Sections 1151, 1153, and Title 21, Oklahoma Statutes, Section 843.5(A), punishable by not more than life imprisonment, a fine up to $5,000.00, or both for each count.
The Indictment alleged that on or about January 12, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did willfully and maliciously cause and threaten harm to the health, safety, and welfare of E.M., a child under the age of eighteen, by striking E.M.
The Indictment further alleged that on or about January 17, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did willfully and maliciously cause and threaten harm to the health, safety, and welfare of S.M., a child under the age of eighteen, by striking S.M.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Cory Ortega represented the United States.
Monmouth County Company Sued for Illegally Obtaining Government ContractsRead the Press Release
NEWARK, N.J. – The Justice Department today sued a Monmouth County, New Jersey, company for allegedly defrauding the United States by falsely claiming to be eligible for more than $16.5 million in government contracts set aside for service-disabled, veteran-owned small businesses, U.S. Attorney Craig Carpenito announced.
VE Source LLC, based in Shrewsbury, New Jersey, and its owners, Sherman Barton and Chris Neary, along with a related company, Vertical Source Inc., allegedly defrauded the government by falsely claiming that VE Source was eligible for government contracts set aside for companies owned and controlled by service-disabled veterans.
To promote contracting opportunities for United States veterans, Congress has authorized federal agencies to make contracts available exclusively to service-disabled, veteran-owned small businesses, known as “SDVOSBs.” Small businesses must be both majority-owned by and controlled on a long-term and day-to-day basis by service-disabled veterans.
According to the complaint:
VE Source obtained contracts from the U.S. Department of Agriculture (USDA) and the Defense Logistics Agency (DLA), a component of the U.S. Department of Defense. Under the DLA contract, VE Source was paid to deliver fire-retardant coveralls for the U.S. Navy; under the USDA contract, VE Source was paid to deliver aprons and apron strings to the USDA. Both contracts were set-aside for SDVOSBs. VE Source’s owners falsely certified that the company was controlled by Sherman Barton, a service-disabled veteran, when the company was in fact controlled by Christopher Neary, who is not a service-disabled veteran. By diverting contracts and benefits intended for businesses owned and controlled by service-disabled veterans towards an ineligible company, the defendants undercut the express congressional purpose in enacting laws intended to encourage the awards of federal contracts to SDVOSBs.
U.S. Attorney Carpenito credited special agents of the General Services Administration, Office of Inspector General, acting under the direction of Inspector General Carol F. Ochoa; The U.S. Department of Agriculture, Office of Inspector General, under the direction of Inspector General Phyllis K. Fong; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the investigation leading to the filing of this civil fraud complaint.
The government is represented by Assistant U.S. Attorneys David V. Simunovich and Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.
Mescalero man pleads guilty to assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Samuel Joseph Chee, 26, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty in federal court on Oct. 8 to a charge of assault with a dangerous weapon.
In the plea agreement, Chee admitted that in January he assaulted a victim identified in court records as Jane Doe with a knife. Jane Doe, also an enrolled member of the Mescalero Apache Tribe, suffered a multiple lacerations to both arms and one thumb and required emergency medical treatment.
The assault occurred on the Mescalero Apache Reservation in Otero County, New Mexico.
By the terms of the plea agreement, Chee faces 18 months in prison in addition to five months he served in Mescalero tribal custody for the same offense. Upon his release from prison, Chee will be subject to three years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Menifee Woman Arrested on Identity Theft Charges Involving over $500,000 in Fraudulently Obtained COVID-19 Unemployment ReliefRead the Press Release
SANTA ANA, California – A Riverside County woman was arrested today on federal charges that she defrauded California’s unemployment insurance system by using stolen personal information obtained from the dark-net to fraudulently receive more than a half-million dollars in COVID-19 unemployment benefits.
Cara Marie Kirk-Connell, 32, of Menifee, was named in a federal criminal complaint that charges her with identity theft, mail fraud, and access device fraud. She is expected to make her initial appearance on October 13 in United States District Court in Riverside.
According to an affidavit filed with the complaint, on September 11, Murrieta police conducted a traffic stop of Kirk-Connell. A search of the car resulted in the seizure of eight debit cards that contained unemployment benefits in other people’s names, as well as more than $30,000 in cash and several driver’s licenses for other motorists, the affidavit states. When interviewed by police, Kirk-Connell allegedly admitted that she and others would go onto the “dark web” to gather identifying information of other individuals.
She allegedly then used this information to apply for unemployment benefits from the California Employment Development Department, which distributes the benefits under the Coronavirus Aid, Relief, and Economic Security Act, passed by Congress in March. The CARES Act expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
In addition, Kirk-Connell admitted that once she had applied for those benefits in other people’s names, she would have the debit cards sent to an address where she would receive them, the affidavit states. Once she received the debit cards, she said, she would activate them by using the victims’ Social Security numbers as well as PINs she had chosen, and then make numerous ATM withdrawals and other expenditures, according to the affidavit.
EDD records showed that the cards and identities that Kirk-Connell possessed had been used to apply for and authorize approximately $534,149 in COVID-related unemployment benefits from California’s EDD program, of which nearly $270,000 had already been spent, the affidavit states. Further, EDD records showed that some of the individual cards had more than $17,000 loaded on them when issued, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of these charges, Kirk-Connell would face a statutory maximum sentence of 32 years in federal prison.
This investigation, which is a result of the Department of Justice’s National Unemployment Insurance Fraud Task Force, was conducted by the U.S. Department of Labor – Office of Inspector General, IRS Criminal Investigation, and the United States Postal Inspection Service. California EDD Criminal Investigations and the Murrieta Police Department provided substantial assistance.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Memphis Man Sentenced to 6 Years in Federal Prison for Possession of Multiple Firearms in Furtherance of Drug TraffickingRead the Press Release
Memphis, TN – Markeis Ivy, 24, has been sentenced to 75 months in federal prison for possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on May 2, 2019, while on targeted patrol in the area of Springdale and Howell area, undercover law enforcement encountered a blue Camaro that had stopped in the middle of the road as the occupants in the vehicle talked to people standing along the street. As the officers pulled around the Camaro, the driver pointed an AR type rifle at one of the undercover officers. Law enforcement then radioed for assistance.
Arriving to the scene, law enforcement spotted the suspect vehicle with its passenger side door open in front of a residence on Howell Street. The officers gave commands for the occupants to show their hands when the passenger side door closed and the vehicle reversed at a high rate of speed. The vehicle made a U-turn and accelerated, hitting the undercover vehicle and chain link fence at the rear of the apartment complex. The car then stopped.
As one man attempted to run, he was captured and placed into custody. Officers saw Ivy reaching for the driver’s side floorboard and pulled him out of the car. There was a struggle, and officers were required to restrain Ivy by the use of a taser before placing him into custody. As they picked him up off the ground, a plastic Ziploc bag containing four other small plastic bags fell from his person, which contained 73 oxycodone pills, 12 Xanax pills, marijuana, and $1,879 in U.S. currency.
Officers found a black assault rifle on the driver’s side floorboard of the vehicle and a black assault-style handgun on the passenger side floorboard, a 70-round magazine, a Glock 40 caliber magazine, and a FN 57 magazine.
On November 26, 2019, law enforcement served a search warrant at Ivy’s residence in Cordova, Tennessee and found 29.94 grams of marijuana in two bags, a digital scale, and approximately $6,000 in U.S. currency on his person.
Also found in the residence were the following:
• MAG Tactical AR15 Model G4 Variant Pistol, one round in the chamber and a loaded 30 round magazine, 5.56 caliber ammunition, a 24 round 5.56 caliber magazine removed from the pistol.
• American Tactical Hybrid .223 caliber Short Barrel Rifle with a loaded 60 round extended magazine.
• Glock 9mm handgun loaded with an extended magazine, 32 total rounds.
• Ruger 9mm pistol with one round in the chamber and a loaded magazine.
• Sig 229 magazine, and 12 Speer .40 caliber rounds.
• Body armor vest.
• 19 rounds of 9mm ammunition in a baggie on the kitchen counter.
• Three rounds of assorted ammunition on the kitchen counter.
• One round of Riocchi ammunition.
• 50 round drum magazine located on the kitchen counter.
On October 7, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Ivy to 75 months in federal prison followed by 3 years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Armed drug dealers pose a significant public safety risk to our communities and law enforcement, and must be punished and incapacitated in a meaningful way. This outstanding investigation removed multiple firearms from the hands of a dangerous offender, and this sentence will reduce the threat of addiction, injury, violence, and death in Memphis."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Memphis Police Department – Crump Station Task Force.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
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Maryland MS-13 Leader Charged with Illegal Firearms Trafficking in Washington, D.C.Read the Press Release
WASHINGTON – Wilber Vigil-Benitez, also known as “Solitario,” of El Salvador, was arrested today on an outstanding arrest warrant from the United States District Court for the District of Columbia, announced Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; John J. Durham, Director, Joint Task Force Vulcan (JTFV); Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On August 25, 2020, Vigil-Benitez, 25, of Oxon Hill, Maryland, was charged in the United States District Court for the District of Columbia, in case number 20-cr-170, in a nine-count indictment with conspiring to engage in the illegal trafficking of firearms, engaging in the business of dealing in firearms without a license, and seven counts of possession of a firearm by a person previously convicted of a crime punishable by more than one year. If convicted of all counts, Vigil-Benitez could face up to 85 years in prison.
According to the indictment and additional court documents filed by the Government, Vigil-Benitez, who also goes by the gang name “Solitario,” is a leader of the Delicias Locos Salvatruchas Clique de La Mara Salvatrucha, commonly referred to as MS-13, a transnational criminal organization. From approximately September 2017 through July 2018, Vigil-Benitez led a firearms trafficking conspiracy where, according to the indictment, he obtained firearms from an MS-13 associate and then illegally sold them on the streets of Washington, D.C., for profit. Vigil-Benitez was prohibited from possessing firearms due to his prior Maryland felony conviction, a firearms offense. Vigil-Benitez traveled from Maryland into the District of Columbia to sell firearms illegally on at least eight occasions. In total, Vigil-Benitez sold at least ten firearms, including an assault rifle.
On October 9, 2020, the Honorable Magistrate Judge G. Michael Harvey held Vigil-Benitez without bond pending a detention hearing on October 14, 2020. An indictment is a formal accusation of criminal conduct, for the purpose of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“Today’s arrest of a member of a transnational criminal organization represents the successful coordination of multiple federal and local law enforcement partners.” said Acting United States Attorney Michael R. Sherwin. “Our office is committed to disrupting the financial lifeline of criminal organizations such as MS-13 and bringing to justice those individuals who would bring firearms into our jurisdiction and inject fear and violence into our communities.”
“This case is another example of the strong partnership between the FBI and our local, state and federal partners to identify, investigate and ultimately prosecute members and associates of MS-13," said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. "MS-13, known for their violence, is a transnational gang which primarily preys and takes advantage of fellow immigrants from Central America. The FBI will continue to work collaboratively with our partners to identify, disrupt, and dismantle MS-13 in our communities.”
“In order to effectively combat the MS-13, we must not only prosecute violent crimes committed by the organization, but also must target its sources of revenue, including illegal firearms trafficking,” stated JTFV Director John J. Durham. “Thanks to the dedicated efforts of the FBI and MPD during this investigation, numerous illegal firearms were seized and an MS-13 leader will face justice.”
This investigation was carried out in partnership with JTFV. In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
This case was investigated by the FBI’s Cross Border Task Force, which is composed of FBI agents from both the Washington Field Office and the Baltimore Field Office, with task force officers from the U.S. Park Police, Prince George’s County Police, Montgomery County Police, and MPD. The task force works in partnership with the ATF, DEA, USMS, the Department of Homeland Security, Enforcement Removal Operations, and other local, state and federal agencies. The task force is charged with investigating the most egregious violent gangs and street crews operating between the District of Columbia and Prince George’s and Montgomery Counties, Maryland. Significant investigative assistance was provided in this case by the MPD’s, Narcotics and Special Investigative Division (NSID).
This case is being investigated by the FBI and MPD with the assistance of the U.S. Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant U.S. Attorney Nicholas J. Patterson detailed to JTFV.
Man Sentenced to 24 Months in Federal Prison for Assaulting Woman on Nez Perce Indian ReservationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Lonnie Lee Bisbee, Jr., 35, of Lenore, Idaho, and an enrolled member of the Umatilla Tribe, was sentenced after having pleaded guilty on June 10, 2020, to Assault Resulting in Substantial Bodily Injury in Indian Country. Chief United States District Judge for the District of Idaho David C. Nye sentenced Bisbee to a two-year term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Bisbee assaulted the mother of his child while they were travelling to a doctor’s appointment. The two were travelling with their infant son and another of Bisbee’s minor children, when Bisbee pulled the vehicle over, choked the victim, and threw her to the ground. Bisbee told authorities that he placed his forearm against the victim’s neck like a “forearm shiver,” then “yanked her to the ground,” causing her head to “ping” on the roadway, face first.
United States Attorney Hyslop said, “Domestic violence against women and crimes of violence like what occurred here cannot be tolerated in our society. The United States Attorney’s Office for the Eastern District of Washington works closely with our federal, state, local and Tribal law enforcement partners in investigating and prosecuting violent crime. I commend the outstanding work of the FBI and Nez Perce Tribal Police in investigating this case. The Court’s sentence rendered here should be a message that there are repercussions and jail time awaiting those who abuse and hurt others in this manner.”
“The severe assault by Lonnie Bisbee will not only have long-lasting effects on the victim, but on the young children, who should never have to witness such violence,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “The FBI is committed to protecting our communities and will continue to work with our law enforcement partners and the United States Attorney's office to investigate and prosecute the most serious crimes that happen on our nation's Indian reservations.”
This case was investigated by the Lewiston, Idaho, Resident Office of the Federal Bureau of Investigation and the Nez Perce Tribal Police. This case was prosecuted by Ann T. Wick, an Assistant United States Attorney for the Eastern District of Washington, specially appointed to the District of Idaho.
Man Pleads Guilty to Cheating 1,700 Victims in $1.2 Million Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to an internet-based loan scam that cheated approximately 1,700 victims out of $1,287,000. He also pleaded guilty to a separate charge of fraudulently collecting unemployment benefits during the coronavirus pandemic.
According to court documents, Ronald A. Smith, 59, and his wife and co-defendant Terri Beth Miller, 53, set up a company called Business Development Group. Business Development Group was an internet-based business that offered, in exchange for an advance fee, to assist individuals in preparing loan applications to obtain SBA-guaranteed loans. They solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including, among others, that the company was headquartered at the Trump Building in New York and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds. Smith and Miller solicited approximately 1,700 customers, who paid an aggregate sum of about $1,287,000 in advance fees. The vast majority of these customers did not receive an SBA guaranteed loan. In fact, Smith did virtually nothing to even attempt to obtain loans for their customers. Smith was convicted for nearly the identical scam back in 2006 and received a seven year sentence.
In addition, Smith made a false application to the Virginia Employment Commission for unemployment benefits, including an additional $600 per week in federal pandemic unemployment compensation authorized under the CARES Act. He falsely stated that he was not the owner or operator of a business and that he had not received income from another source. As a result of his false statements, Smith received $9,600 in federal pandemic unemployment compensation to which he was not entitled.
Smith pleaded guilty to wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits. He faces a maximum penalty of 60 years in prison when sentenced on April 2, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-69.
Man Indicted for Impersonating Federal Law Enforcement Officer During A Protest in Downtown Las VegasRead the Press Release
LAS VEGAS Nev. — A man made his initial appearance in federal court today for impersonating a law enforcement officer during a May 2020 protest relating to the death of George Floyd, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Zachary Sanns, 28, of New Jersey, is charged with one count of false personation of an officer or employee of the United States. U.S. Magistrate Judge Cam Ferenbach scheduled a jury trial before U.S. District Judge James C. Mahan on November 30, 2020.
According to court documents, during a protest in downtown Las Vegas on May 30, 2020, Sanns — who is not a sworn law enforcement officer — wore: (a) a tactical vest with magazine pouches and tactical patches identifying him as a federal law enforcement officer; (b) a ballistic helmet with night-vision goggles; (c) a gun belt with a pistol with an extended magazine; and (d) a Taser. In addition, Sanns had an AR-15 style rifle with an optic magnifier.
Throughout the course of the evening, the protest became boisterous, including towards officers. Sanns pretended to be a Special Agent of the Department of Homeland Security Investigations, an employee of the State Department, and a Department of Defense contractor. Further, Sanns falsely stated that he was a federal law enforcement officer and a federal agent, and sought to assist the Las Vegas Metropolitan Police Department’s response to civil unrest.
Sanns faces a statutory maximum sentence of three years in prison and a $250,000 fine. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the ATF. Assistant U.S. Attorney Christopher Burton is prosecuting the case.
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Light Blub Rebate Fraud Scheme Costs Monticello Man Nearly Two Years in Federal PrisonRead the Press Release
A Monticello man who forged the signatures of a Cedar Rapids utility company’s customers as part of a $300,000 light bulb rebate form fraud scheme was sentenced today to nearly two years in federal prison.
Anthony John Harms, age 35, from Marion, Iowa, received the prison term after a March 9, 2020 guilty plea to one count of mail fraud.
At prior hearings, evidence showed that Dustin Hutcheson operated Hutch Energy, LLC, which was an energy-related services business in Marion, Iowa. Hutcheson recruited Harms into the light bulb scheme. In 2017 and 2018, Hutcheson and Harms approached small business customers of a Cedar Rapids utility company and offered to replace their existing lighting with more energy efficient LED lighting for free. They falsely claimed they could do so at no cost to the customer because of a rebate program that the utility company offered. They claimed all the customer needed to do was provide Hutcheson the paperwork, which he would complete. They told the customer to send Hutcheson the rebate check once the customer received it from the utility company. Hutcheson then submitted fraudulent invoices to the utility company, making it appear as if the customer had paid for the lighting and was entitled to a rebate. Hutcheson and Harms repeatedly forged the signatures of the utility company’s customers and Hutcheson inflated the number of bulbs installed on the rebate forms. Harms also repeatedly called the utility company’s customer service line and impersonated the customers in order to learn the status of rebate forms. In total, Hutcheson and Harms received over $300,000 in rebate moneys as a result of the fraud scheme.
Neither Hutcheson nor Harms was a licensed electrician. As a result, they risked the safety of their customers and clientele. In one case, Hutcheson’s light bulbs caused a fire in a nursing home, likely because the bulbs’ voltage was incorrect. The nursing home had to evacuate 23 residents, including elderly individuals on feeding tubes and with dementia.
Harms was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. He was ordered to make over $340,000 in restitution to the utility company, including paying the utility company’s attorney fees in responding to the government’s investigation and prosecution. Harms must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. In June 2020, Hutcheson was sentenced to 44 months’ imprisonment for his leadership role in the scheme.
As a result of having been caught using narcotics on multiple occasions while on pretrial release, Harms is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Linn County Sheriff’s Office and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-106.
Follow us on Twitter @USAO_NDIA.
Leader of cocaine trafficking organization admits guiltRead the Press Release
BRUNSWICK, GA: A Pooler man who led a drug trafficking organization that transported and distributed significant amounts of cocaine and other drugs into the coastal Georgia area awaits sentencing after admitting guilt.
Omar Griffin, 41, of Pooler, Ga., pled guilty to Conspiracy to Possess with Intent to Distribute Five Kilograms or More of Cocaine before U.S. District Court Judge Lisa Godbey Wood and now faces a minimum sentence of 15 years in prison, along with substantial fines and 10 years of supervised release after completion of any prison term.
There is no parole in the federal system.
“For at least six years, Omar Griffin played a key role in bringing cocaine and other poison into the Savannah area for mass distribution, undoubtedly ruining countless lives in the process,” said U.S. Attorney Christine. “His capture and admission of guilt caps off the outstanding investigation and prosecution of this drug trafficking organization, and serves as a warning to others engaged in such illegal trades: We will find you and shut you down.”
With the recent sentencing of Allen Grady, 43, of Port Wentworth, Ga., to 240 months in prison for Conspiracy to Commit Money Laundering, a dozen members of the conspiracy have been sentenced to prison.
Operation Snowplow was the largest single seizure of cocaine to date by the Chatham-Savannah Counter Narcotics Team (CNT). According to court documents and testimony, Griffin, who was previously convicted of cocaine trafficking, conspired with others in the organization to transport kilogram-quantities of cocaine and other drugs from Texas and California and into the Savannah area from as early as February 2014 until his capture in March 2020. The drugs were packaged in children’s toys and DVD players, concealed in cargo vans and truck trailers for shipment to Savannah, and distributed to mid-level dealers operating from several Savannah-area residences.
On March 5, 2018, law enforcement officers intercepted a shipment of 25 kilograms of cocaine that had been driven from Texas to a hotel in Richmond Hill, Ga., concealed inside a cargo trailer. Officers also seized more than $387,000 in cash that had been exchanged for the cocaine. Omar evaded capture by stealing, and then crashing, a police car. After interdicting the drugs, law enforcement executed a number of search and arrest warrants. In total in this investigation, investigators seized approximately 35 kilograms of cocaine, more than 30 pounds of marijuana, approximately $900,000 in cash, nearly two dozen firearms – including semi-automatic rifles – and other narcotics.
Griffin continued to distribute cocaine while on the run for two years until U.S. Marshals captured him in Houston in March and returned him to the Southern District for prosecution.
“This once-thriving cocaine distribution network who delivered doses of poison in the Savannah area was ultimately dismantled,” said the DEA Atlanta Field Division Special Agent in Charge Robert J. Murphy. “DEA and its law enforcement partners stand united to shut down drug trafficking organizations.”
Two members of the alleged conspiracy are still being sought: Kia Hickman, 49, of Savannah, and Jamaal Singleton, 42, of Savannah. Individuals with information on their whereabouts can anonymously contact the Chatham-Savannah Counter Narcotics Team (CNT) at 912-652-3900, or Savannah Crime Stoppers at 912-234-2020.
Operation Snowplow was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and conducted by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team, Savannah Police Department, Chatham County Police Department, and the Chatham County Sheriff’s Office K9 Unit and the Chatham County Aviation Unit, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Law enforcement honored by U.S. Attorney at awards ceremony in ClarksburgRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eleven law enforcement members were recognized today for their outstanding work in the greater Clarksburg area.
U.S. Attorney Bill Powell recognized WV State Police Cpl. John W. Smith, FBI Special Agent Fred Aldridge, FBI Special Agent Matt Eagles, DEA Diversion Investigator Guy McCartney, DEA Diversion Investigator Chris Skaggs, WV State Police Sgt. Rob Talkington, Bridgeport Police Lt. Gary Weaver, WV State Police Task Force Commander Josh Tallman, FBI Special Agent Peter Olinits, FBI Special Agent Jared Jankowski, FBI Special Agent Justin Van Tromp, and IRS Special Agent Tami Devericks for their exemplary work.
“Honoring those who go above and beyond to protect our children, our community and our national security is a great privilege. While this year has created exceptional challenges, they continue their great work to keep our communities safer. Those honored today never seek recognition, but it is important to let the public know about the accomplishments of our law enforcement members. I thank each and every one of them for their continued service,” said Powell.
West Virginia State Police Cpl. J.W. Smith and FBI Special Agent Aldridge conducted an arduous two-year investigation resulting in the successful prosecution of former Harrison County Sheriff’s Deputy Tim Rock for distributing drugs to his confidential informants in 2016. Cpl. Smith and Special Agent Aldridge conducted dozens of interviews, often with hard-to-locate subjects, active drug users, uncooperative witnesses, and Rock himself. They poured over and organized hundreds of pages of law enforcement records and reports Their work was exceptional, and Rock’s conviction was uniquely important to the county and the law enforcement community. Rock was sentenced to more than 58 months in prison.
For the successful outcome of this case and their important roles in the investigation, the Outstanding Investigative Effort Award was given to Cpl. J.W. Smith and Special Agent Fred Aldridge.FBI Special Agent Matt Eagles, DEA Diversion Investigator Guy McCartney, DEA Diversion Investigator Chris Skaggs worked tirelessly in the prosecution of several physicians and others in a prescription drug case. The Dr. Felix Brizuela investigation began in January 2015 as a DEA investigation into Dr. Brizuela’s prescribing practices. It soon became evident that Dr. Brizuela was engaging in healthcare fraud, the FBI joined the investigation. The investigation quickly expanded to other targets, including Dr. George Naum, Sharon Jackson and Eric Drake. Investigator McCartney and Special Agent Eagles spent the next four years investigating these individuals and preparing the case for trial. Their investigation included collecting and reviewing over 650,000 documents, among which were hundreds of patient medical charts from two different medical practices. The agents executed search warrants on five physical locations and three email accounts. They also interviewed over one hundred witnesses. Ms. Jackson and Mr. Drake resolved their cases by plea agreement. Dr. Naum was found guilty after a lengthy trial and sentenced to 6 months incarceration and 6 months home confinement and ordered to forfeit over $75,000.00 in ill-gotten gains. Dr. Brizuela pled guilty last week. He was sentenced to time served which equaled six months, and three years of supervised release. During this time, he is not permitted to request a license to prescribe medications from the DEA. Investigator Guy McCartney and Special Agent Matt Eagles devoted many long and tedious hours to investigating and seeing through this complex case to prosecution, and Investigator Chris Skaggs stepped in and carried the case through to sentencing. For all of their hard work, they each received the Outstanding Investigative Effort Award.
WV State Police Sgt. Rob Talkington has been doing child exploitation cases for a long time. His experience is reflected in his poise and in his decision-making. His hard work in the Tara Ponceroff and Ian Toothman child pornography cases. A sharp eye and some excellent investigative work led law enforcement to believe that there were child pornographic images on Toothman’s phone, and that Ponceroff was the depicted female in the pictures. He was able to ascertain the identity of the victim (whose face was not visible). Both defendants pled guilty and were given severe sentences for their conduct. Toothman is serving 278 months and Ponceroff is serving 360 months. Sgt. Talkington also handled the James Smith child pornography case in which Smith, a previously convicted offender, was engaging in an extremely sexual chat with various teenaged boys. Smith pled guilty and was sentenced to 168 months in prison. Sgt. Rob Talkington was honored with the Outstanding Investigative Effort Award.
Lt. Gary Weaver with the Bridgeport Police Department is a staunch force for good in the fight against child exploitation. Lt. Weaver was a key part of the investigations into Jeremy Smith, Jack Rice, and Quionte Crawford, all child pornography cases. Rice was sentenced to 57 months in prison. Jeremy Smith pled guilty to a child pornography charge and was sentenced to 51 months in prison. Lt. Weaver put forth an extraordinary effort on the Crawford case. Crawford had befriended and groomed teenaged boys he met at youth baseball games and tournaments. Crawford groomed their parents as well. Then he would approach them on-line in the persona of a sexually eager 18-year-old girl. Lt. Weaver’s patience with the victims was exemplary. Crawford received a life sentence for his crimes. Lt. Weaver was also integral in the case against defendant James Vincent Scott. Lt. Weaver posed online as a 15 y/o female, in which Scott sent sexually explicit text to what he thought was an underage female. He solicited pictures. He then agreed to meet the “female” for sex and drove from Ohio to Bridgeport for the purpose of meeting her. Scott pled guilty and was sentenced to 50 months. Lt. Weaver received the Outstanding Investigative Effort Award.
On the evening of Monday, August 5, 2019, Task Force Commander J. M. Tallman, as well as other troopers, responded to Pocahontas County to assist in the search of an armed subject. The suspect had fired upon the Pocahontas County Sheriff and one of his deputies after a single vehicle crash and fled into a heavily wooded area. TFC Tallman and another trooper went with a Huttonsville Prison K-9 unit in an attempt to track and locate the suspect. TFC Tallman heard movement in the brush and observed the suspect appear from behind some trees with a rifle. TFC Tallman instructed the suspect to put the gun down. An exchange of gunfire ensued, and the suspect charged toward TFC Tallman. TFC Tallman was struck in the abdomen with a high-powered rifle. The round had struck TFC Tallman’s cap stun and duty belt buckle before traveling through the lower part of his Kevlar vest and into his abdomen. The suspect continued charging at TFC Tallman at which time a physical altercation ensued. TFC Tallman transitioned to his 9mm duty weapon and fired several rounds as the suspect was attempting to disarm him. TFC Tallman’s duty weapon malfunctioned and TFC Tallman transitioned back to his AR-15 and fired a single round, fatally wounding the suspect. TFC Tallman was treated on scene by Troopers and flown to Ruby Memorial Hospital via WVSP Aviation. TFC Tallman has since recovered from his injuries and continues his work. For his bravery and selflessness, Task Force Commander Josh Tallman was given the Heroic Effort Award.
FBI Special Agent Peter Olinits, IRS Special Agent Tami Devericks, FBI Special Agent Jared Jankowski, and FBI Special Agent Justin Van Tromp worked tirelessly on two cases involving Chinese nationals.
Dr. Qingyun Sun, a Chinese national, was employed by West Virginia University as a professor since 2001 and contracted to the West Virginia Development Office, within the West Virginia Department of Commerce, to act as the governor’s assistant for China affairs since 2008. Dr. James Patrick Lewis, an American citizen, was employed by WVU as a physics professor since 2006. The investigations involved countless hours of investigative work and hundreds of documents. Dr. Sun pled guilty to wire fraud and tax fraud in July 2020 and is awaiting sentencing in December 2020. Dr. Lewis pled guilty to federal program fraud in March 2020 and was sentenced to three months of incarceration and fined $9,363 for the costs of the incarceration and was ordered to pay more than $20,000 in restitution to WVU. FBI Special Agent Peter Olinits, IRS Special Agent Tami Devericks, FBI Special Agent Jared Jankowski, and FBI Special Agent Justin Van Tromp were vital to the resolutions in both cases and were presented with Outstanding Investigative Effort Awards.The ceremony was held in the Clarksburg Federal Courthouse and included remarks from U.S. Attorney Bill Powell and the presence of many local, state and federal law enforcement leaders from throughout West Virginia.
Other ceremonies were held in Martinsburg and Wheeling to honor more recipients of the U.S. Attorney Awards.
Justice Department Prevails in Class Action Seeking Release of Numerous Detainees Charged with Serious Federal CrimesRead the Press Release
BOSTON – The U.S. Attorney’s Office prevailed in a habeas class action brought by law firms WilmerHale and Todd & Weld LLP seeking the release of over 150 detainees awaiting trial on federal charges, including serious drug and gun crimes, on the ground that continued detention was unconstitutional because of the threat to health and safety posed by COVID-19.
“The COVID-19 pandemic has put enormous pressure on detention facilities,” stated United States Attorney Andrew E. Lelling. “Our law enforcement partners in Plymouth met that challenge by swiftly instituting measures to ensure the safety of detainees, staff, and the public. Consequently, they prevailed, despite the plaintiffs' insistence that the facility was still unsafe. We are pleased the Court recognized Plymouth’s efforts in this case.”
“The health and safety of the persons committed to the Department’s care and custody, the staff, and the public is of paramount importance,” Plymouth County Sheriff Joseph D. McDonald, Jr., said. “It is gratifying to see that the Court has recognized the many measures the Department has taken to protect people during this time of unprecedented challenge.”
In April 2020, the detainees filed a habeas petition challenging the conditions at the Plymouth County Correctional Facility (“PCCF”), the state jail where they are held, as inadequate to address the COVID-19 pandemic. They sought an injunction that would require the immediate release of some or all of them, as well as various other forms of relief. In May 2020, U.S. District Court Judge Leo T. Sorokin denied their request for an injunction based on the many measures and policies in place at PCCF to protect detainees and staff, but stopped short of dismissing the case at that time. In September 2020, the Court found that the detainees could not establish an entitlement to habeas relief, and that it would deny the habeas petition unless they presented additional evidence by Oct. 8, 2020. Instead, the detainees voluntarily dismissed the case.
U.S. Attorney Lelling and Sheriff McDonald made the announcement today. The case was handled by Assistant U.S. Attorneys Jason C. Weida and Rachel Goldstein of Lelling’s Civil Division, with assistance from Lisa Olson of the Justice Department’s Civil Division.
Jorge Javier Marrero Gerena Arrested on Charges of Child PornographyRead the Press Release
SAN JUAN, P.R. – Jorge Javier Marrero Gerena, owner of the charter boat company Yatea Puerto Rico, was indicted and arrested for attempted coercion and enticement of a minor, coercion and enticement of a minor, and production of child pornography, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is in charge of the investigation of the case.
On October 8, 2020, a federal grand jury returned an indictment charging Marrero Gerena with four counts of child exploitation. Today, HSI special agents arrested Marrero Gerena at his place of residence.
The defendant used the Yatea PR Instagram account and a WhatsApp account to communicate via text messaging with minors. According to the four-count indictment, on February 8, 2020, the defendant induced a sixteen (16) year-old female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Marrero Gerena is also facing two counts for using an instrumentality of interstate or foreign commerce, namely a cell phone, as well as internet text messaging services and social media direct messaging, to knowingly attempt to persuade, induce, entice, and coerce two individuals the defendant believed to be a thirteen (13) year-old female minor and a fifteen (15) year-old female minor to engage in sexual activity.
“The coercion and enticement of minors via the internet and through electronic devices to engage in otherwise illegal sexual conduct or to request and produce images of child pornography is illegal and carries serious consequences,” said U.S. Attorney Muldrow. “Requesting that a minor under the age of 18 send sexually explicit images is illegal. Be alert and report such illegal activities to law enforcement authorities. Prosecuting crimes against children is a high priority and Project Safe Childhood’s mission is focused on combatting those crimes and prosecuting those who prey on our children.”
To denounce crimes against children people may contact the Puerto Rico Crimes Against Children Task Force, at (787) 729-6969. You could also contact the FBI at (787) 987-6500.
“HSI is seeing a growing trend where children are being enticed, tricked and coerced online by adults to produce sexually explicit material of themselves,” said Ivan J. Arvelo, special agent in charge of HSI San Juan. “While we will continue to prioritize the arrest of child predators, we cannot arrest our way out of this problem: education is the key to prevention. This indictment represents a strong coordinated strike – by ICE’s Homeland Security Investigations, the U. S. Attorney’s Office and the members of the Puerto Rico Crimes Against Children Task Force– against child pornography and those who allegedly seek to harm our most vulnerable citizens, our young children. Clearly, this criminal activity has reached epidemic proportions and ICE HSI will continue to partner here and across jurisdictions to target those adults who egregiously violate the children of our communities.”
Assistant United States Attorney, and Project Safe Childhood Coordinator, Jenifer Y. Hernández Vega is responsible for the prosecution of the case. If convicted, the defendant faces a mandatory minimum sentence of fifteen (15) years imprisonment and a statutory maximum sentence of 30 years for the production of child exploitation material count, and a mandatory minimum sentence of ten (10) years with a maximum term of life imprisonment for each other count. An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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Internet Predators: Warnings & Prevention for Families During the Pandemic and BeyondRead the Press Release
ALBANY, NEW YORK - Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York, and James P. Kennedy, United States Attorney for the Western District of New York, met today with leaders of the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), and the United States Marshals Service, along with Callahan Walsh from the National Center for Missing and Exploited Children (NCMEC), to warn the public of increased risks to children and teens from online sexual predators. In an era where children are spending more time on the Internet, it is essential that parents, guardians, educators and trusted adults know the risks and how to prevent exploitation.
“Children are spending more time online, for school, for clubs, and for playdates. Parents don’t know all the apps or how to use them, but sexual predators do. They know where the kids are and how to reach them. Just as parents taught kids to be safe at home by locking the doors at night, parents must learn how to keep kids safe online. Computers can be scary. The internet can be intimidating. But in this case, ignorance is not bliss,” said Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York. “The Department of Justice is committed to keeping kids safe. We will continue to pursue online sexual predators, and with increased awareness on the part of parents and communities, we will stop even more.”
“The borderless nature of the Internet has made these crimes which transcend jurisdictional boundaries,” stated United States Attorney Kennedy. “Cases in our district frequently involve victims in the Northern District and vice versa. Working together we will use our prosecutorial resources to do all that we can to protect our kids, but we cannot do it alone. All New Yorkers and all Americans have a duty to protect our children—both in the physical and online world.”
“Homeland Security Investigations is committed to the Safety Pledge initiative, which demonstrates a whole of government commitment to protecting and safeguarding children online,” said Kevin Kelly, HSI Special Agent in Charge. “It is a reminder that we must all dedicate ourselves to implement the critical measures at home and in our communities that are necessary to keep children safe from online predators.”
“Make no mistake about it, investigating and arresting online predators is a top priority for the FBI and our office is leading the charge locally in keeping our most vulnerable safe from the monsters who lurk behind their keyboards. These disturbing individuals are preying on innocent children online and our office is working with our partners to aggressively pursue justice for their victims,” said Thomas F. Relford, Special Agent in Charge, Federal Bureau of Investigation, Albany Field Office.
“At NCMEC, we are dedicated to fighting child sexual abuse online wherever we find it and working to prevent the future victimization of children,” said Callahan Walsh, NCMEC Child Advocate. “With increased screen time experienced by both adults and children during the pandemic, the opportunities for exploiters to pray on our kids has only increased and we encourage parents to talk to their kids about being safe online.”
Lisa Fletcher, the Assistant United States Attorney who oversees the prosecutions of these cases in the Northern District of New York, and has seen hundreds in our district says, “Ensuring the safety of our children is the most important job any of us will ever have. We must all educate ourselves and talk to our children about the risks inherent in the open access the Internet provides. Talk to your kids about what sites they are visiting, what apps they use, whom they are texting and messaging, what kinds of pictures they take of themselves, and what kinds of pictures other people send to them. Encourage them to share with you anything makes them uncomfortable, whether an image, a message, or a solicitation. Showing that you care will go a long way with a child, and that in turn will go a long way in keeping them safe.”
Prevention is key. There are resources available for parents, teachers, and our kids from kindergarten through high school.
- NetSmartz has a number of websites with tool kits, games, videos for all ages, PowerPoints for educators, Tip Sheets and more. Go to NetSmartz.org
- Homeland Security Investigations and NCMEC just launched their SafetyPledge campaign, encouraging parents to pledge to talk with their children about this threat. Their website includes a tool kit packed with information. Go to SafetyPledge.org
- The Federal Bureau of Investigation’s website, entitled Safe Online Surfing, has resources categorized from 3rd grade through 8th grade, for teachers and students. Go to SOS.FBI.gov
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 6 was:
Dee Bad Bear, 59, of Crow Agency, on charges of assault with a dangerous weapon. If convicted of the most serious crime, Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bad Bear was detained pending further proceedings. The FBI investigated the case. PACER case reference. 20-105.
Tracy Fonda Flanigan, 46, of Livingston, on charges of false statement during a firearms transfer, transfer of firearm to a prohibited person and false statement. If convicted of the most serious crime, Flanigan faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Flanigan was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-108.
Robert Nolan Dawes, 40, of Crow Agency, on charges of assault of dating partner/strangulation and assault resulting in serious bodily injury. If convicted of the most serious crime, Dawes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Dawes was detained pending further proceedings. The FBI investigated the case. PACER case reference. 20-107.
Micah Garrett Waltenbaugh, 33, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Waltenbaugh faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Waltenbaugh was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 20-113.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 6 was:
Matthew Douglas Webb, 26, of Great Falls, on charges of prohibited person in possession of firearms. If convicted of the most serious crime, Webb faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Webb was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. PACER case reference. 20-62.
Rachelle Jo Kolden, 38, of Great Falls, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Kolden faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Kolden was detained pending further proceedings. The Drug Enforcement Administration and the Great Falls Police Department investigated the case. PACER case reference. 20-73.
Joseph Tyler Henderson, 27, of Havre, on charges of assault by strangulation and assault resulting in substantial bodily injury. If convicted of the most serious crime, Henderson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Henderson was released pending further proceedings. The FBI and Rocky Boy's Police Department investigated the case. PACER case reference. 20-66.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal alien sentenced to federal prison for attempting to lure teen for sexRead the Press Release
BRUNSWICK, GA: A Mexican national who attempted to lure a young teen for sexual activity has been sentenced to more than six years in federal prison.
Alvaro Hernandez, 36, of Bristol, Ga., a citizen of Mexico illegally present in the United States, was sentenced to 76 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Coercion and Enticement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Herndandez will be required to register as a sex offender and to serve 10 years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“Alvaro Hernandez was enjoying his illegal access to the American dream, living and working in rural Georgia, when he tried to pay for sex with someone he believed was a child,” said U.S. Attorney Christine. “Our law enforcement partners helped protect our community from this predator by intercepting him during the perverted attempt.”
According to court documents and testimony, in March 2019, investigators with the U.S. Naval Criminal Investigative Service (NCIS) and the Camden County Sheriff’s Office, along with the Internet Crimes Against Children Task Force, conducted a joint operation targeting child predators operating near Submarine Base Kings Bay. Hernandez, who responded to an internet message purporting to be from a 14-year-old offering sex for money, was arrested after he drove from his residence in Pierce County, Ga., and arrived at what he believed was the teen’s residence in St. Mary’s, Ga.
“This sentencing should serve as a warning that sexual predators who target vulnerable children will be fully investigated and prosecuted,” said NCIS Southeast Field Office Special Agent in Charge Thomas Cannizzo. “NCIS is grateful to the Camden County Sheriff’s Office for its continued partnership in keeping communities where Navy and Marine Corps families live safe.”
The case was prosecuted by Special Assistant U.S. Attorney Katelyn Semales and Assistant U.S. Attorney and Organized Crime Drug Task Force Coordinator Marcela C. Mateo.
Houston-Area Physician and Anesthesiologist Sentenced to 84 Months in Prison for Role in Health Care Benefit SchemeRead the Press Release
A Houston-area physician and anesthesiologist at two registered pain clinics, Texas Pain Solutions and Integra Medical Clinic, was sentenced today to seven years in prison for his role in fraudulently billing health care programs for at least $5 million dollars in medical tests and procedures, and for the role his fraud played in multiple patient deaths.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Montgomery County District Attorney Brett Ligon, Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division, and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Rezik Saqer, 66, of Houston, Texas, was sentenced by Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Chief Judge Rosenthal also ordered the defendant to pay $5 million in restitution. Saqer pleaded guilty on July 3, 2019, to one count of conspiracy to commit health care fraud.
According to the evidence presented at sentencing, Saqer’s health care fraud scheme involved luring vulnerable patients to his clinics by prescribing powerful opioid narcotics, and then requiring the patients to submit to unnecessary and dangerous procedures and tests, which were often performed by Saqer’s unlicensed staff and fraudulently billed to health care providers. Saqer’s scheme contributed to multiple overdose deaths, as well as the death of a young family in an auto accident involving one of Saqer’s patients, according to the evidence.
According to the court’s judgment, Saqer was responsible for fraudulently billing health care providers for at least $14,665,357.54.
This case was investigated by the Montgomery County District Attorney’s Office, DEA, FBI, IRS-Criminal Investigation, Health and Human Services-Office of Inspector General, Conroe Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Texas Department of Insurance. Trial Attorneys Drew Pennebaker and Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Granger, Indiana Man Sentenced to 30 Years in PrisonRead the Press Release
SOUTH BEND –Jonathan Kassay, 50, of Granger, Indiana was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty to production of child pornography, announced U.S. Attorney Kirsch.
Mr. Kassay was sentenced to 360 months in prison, 5 years of supervised release and ordered to pay $12, 219.04 in restitution.
United States Attorney Thomas L. Kirsch II said, “Protecting children from child predators is one of our top priorities. Children are nearly defenseless to save themselves from abuse. Our investigative partners are some of the best in the world at working these cases, and today’s sentence should serve as a reminder that my Office will work diligently and aggressively to put child predators behind bars.”
According to documents filed in this case, in 2017 Mr. Kassay used minors to engage in sexually explicit conduct for the purpose of producing child pornography.
“This case is a reminder that child pornography is a serious crime – one that can cause sometimes irreparable harm to children. While this sentence can’t undo that damage, it does ensure the defendant will never be able to hurt anyone else,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It also sends a strong message that there is no place in our communities for those who prey on vulnerable children. The FBI and our law enforcement partners will continue to aggressively target those who exploit children.”
This case was investigated by the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney John M. Maciejczyk.
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Franklin County Man Charged with Production of Images Depicting the Sexual Abuse of A ChildRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Paul Robinson, age 31, of Chambersburg, Pennsylvania, was indicted on October 7, 2020, by a federal grand jury on child pornography charges.
According to United States Attorney David J. Freed, the indictment alleges that Robinson produced images depicting the sexual abuse of a minor less than one year old (Counts 1 through 3), then distributed those images over the internet (Count 2). After obtaining a search warrant, federal law enforcement officers searched the defendant’s home and located additional images and videos containing child pornography (Count 3).
Homeland Security Investigations and the Pennsylvania State Police investigated the case. Assistant U.S. Attorney Daryl F. Bloom is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. The maximum penalty under federal law for each of Counts 1 through 3 is 30 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Each offense carries a mandatory term of imprisonment of 15 years. The maximum penalty for Count 2 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 fine. The offense carries a mandatory term of imprisonment of five years. Due to the age of the victim, the maximum penalty for Count 3 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four Individuals Are Charged for Operating as "Money Mules" in Separate Business Email Compromise SchemesRead the Press Release
CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today federal charges against four individuals, for operating as “money mules” in two separate business email compromise schemes.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by scammers. In addition to targeting businesses, BEC scams also often target individual victims, convincing victims to make wire transfers to bank accounts controlled by the scammers.
U.S. vs. Okwara
On September 17, 2020, a federal grand jury sitting in Charlotte returned a criminal indictment against Chukwudi Michael Okwara, 40, of Charlotte, for his involvement in a BEC scheme that defrauded at least six companies of approximately $2 million.
According to allegations contained in the indictment, beginning in November 2018, Okwara, who also goes by “Collins Bird” and “Larry Eugene Coleman,” used fake documents to open multiple “money mule” bank accounts. Money mule accounts are bank accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. As alleged in the indictment, Okwara used the money mule accounts to receive and launder the proceeds of business email compromise (BEC) scams perpetrated on the victim companies. Okwara also allegedly used false identities and conducted financial transactions with the fraudulently obtained proceeds in order to conceal their origins.
Okwara is charged with 27 counts of money laundering, which carry a maximum sentence of 20 years and a $500,000 fine per count; five counts of conducting financial transactions with illegal proceeds, which carry a maximum prison sentence of 10 years and a $250,000 fine per count; two counts of submitting false documents to banks, which carry a maximum prison term of 30 years and a $1,000,000 fine per count; and two counts of aggravated identity theft, which carry a mandatory minimum sentence of two years in prison, per count, to be served consecutively to any other sentence imposed.
Okwara had his initial appearance today before U.S. Magistrate Judge David C. Keesler. Okwara’s next court hearing is set for October 15, 2020, in Charlotte.
U.S. vs. Johnson et al.
A second indictment related to BEC fraud charges Linda Dianne Johnson, 70, of Charlotte, Wanda Jackson Barker, 71, of Athens, Texas, and Olayinka Agboola, 54, of Chicago, Illinois, with conspiracy to commit money laundering. Johnson is also charged with two counts of conducting financial transactions with illegal proceeds.
The indictment was returned on September 16, 2020, and was unsealed earlier this week. According to allegations in the indictment, Johnson, Barker, and Agboola operated as money mules and conspired to launder at least $575,000 derived from a fraudulent BEC scheme. The indictment alleges that the co-conspirators tricked the United States Department of State and a non-profit agency into wiring proceeds into bank accounts controlled by Johnson. Upon receipt of the fraud proceeds, Johnson, Barker, and Agboola executed financial transactions for the purpose of enriching themselves and their co-conspirators.
Johnson is set to appear in court in Charlotte on October 22, 2020. Barker’s initial appearance has been set for November 9, 2020. Agboola has not been arrested yet.
The money laundering conspiracy charge carries a maximum sentence of 20 years in prison and a $500,000 fine. Johnson faces a maximum sentence of 10 years in prison and a $250,000 fine for each charge of conducting financial transactions with illegal proceeds.
The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service, the FBI, and U.S. Department of State, Office of the Inspector General, which led to the indictments.
Assistant United States Attorney Matt Warren is in charge of the prosecution against Okwara. Assistant United States Attorneys Caryn Finley and Graham Billings are handling the prosecution against Johnson, Barker and Agboola.