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Wednesday 26 August 2020
Minneapolis Woman Pleads Guilty to Attempting to Provide Material Support to Al-Qa’idaRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the District of Minnesota Erica H. MacDonald today announced the guilty plea of Tnuza Jamal Hassan, 22, to attempting to provide material support to a designated foreign terrorist organization (al-Qa’ida). Hassan entered her guilty plea this morning before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March of 2017, while a freshman student at St. Catherine University (SCU) in St. Paul, Minnesota, Hassan drafted a letter encouraging others to join a designated foreign terrorist organization, namely, al-Qa’ida (AQ), and anonymously delivered the letter to two other students at SCU for the purpose of recruiting those individuals to join AQ. During a subsequent interview with FBI agents, Hassan denied authoring or delivering the recruitment letter.
According to the defendant’s guilty plea and documents filed in court, on Sept. 18, 2017, Hassan purchased a round-trip airline ticket from Minneapolis/St. Paul International Airport (MSP) to Dubai, United Arab Emirates, and purchased a second round-trip ticket from Dubai to Kabul, Afghanistan. Hassan later admitted that she planned to travel from Dubai to Kabul where she hoped to join AQ and that she had no intentions of returning to the United States. On Sept. 19, 2017, Hassan boarded a flight and traveled from MSP to Dubai, but was prevented from traveling to Kabul because she failed to secure a travel visa allowing her to enter the country.
According to the defendant’s guilty plea and documents filed in court, on Jan. 17, 2018, Hassan, who at that time was living in a SCU dorm lounge without the university’s permission, attempted to set several fires on the SCU campus. Hassan admitted that she attempted to burn SCU buildings as a retaliatory act against the United States for its opposition to AQ in Afghanistan.
Hassan has been charged in Ramsey County District Court with one count of first-degree arson.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, St. Paul Police Department, and arson investigators from the St. Paul Fire Department.
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Minneapolis Woman Pleads Guilty to Attempting to Provide Material Support to al-Qa’idaRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of TNUZA JAMAL HASSAN, 22, to attempting to provide material support to a designated foreign terrorist organization (al-Qa’ida). HASSAN entered her guilty plea this morning before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March of 2017, while a freshman student at St. Catherine University (SCU) in St. Paul, Minnesota, HASSAN drafted a letter encouraging others to join a designated foreign terrorist organization, namely, al-Qa’ida (AQ), and anonymously delivered the letter to two other students at SCU for the purpose of recruiting those individuals to join AQ. During a subsequent interview with FBI agents, HASSAN denied authoring or delivering the recruitment letter.
According to the defendant’s guilty plea and documents filed in court, on September 18, 2017, HASSAN purchased a round-trip airline ticket from Minneapolis/St. Paul International Airport (“MSP”) to Dubai, United Arab Emirates, and purchased a second round-trip ticket from Dubai to Kabul, Afghanistan. HASSAN later admitted that she planned to travel from Dubai to Kabul where she hoped to join AQ and that she had no intentions of returning to the United States. On September 19, 2017, HASSAN boarded a flight and traveled from MSP to Dubai, but was prevented from traveling to Kabul because she failed to secure a travel visa allowing her to enter the country.
According to the defendant’s guilty plea and documents filed in court, on January 17, 2018, HASSAN, who at that time was living in a SCU dorm lounge without the university’s permission, attempted to set several fires on the SCU campus. HASSAN admitted that she attempted to burn SCU buildings as a retaliatory act against the United States for its opposition to AQ in Afghanistan.
HASSAN has been charged in Ramsey County District Court with one count of first-degree arson.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, St. Paul Police Department, and arson investigators from the St. Paul Fire Department.
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Defendant Information:
TNUZA JAMAL HASSAN, 22
Minneapolis, Minn.
Convicted:
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization (al-Qa’ida), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Middle Tennessee Probation Service Operator Pleads Guilty to Tax ChargesRead the Press Release
NASHVILLE, Tenn. – August 26, 2020 – A Dickson, Tennessee woman who owns and operates a private probation service pleaded guilty today in U.S. District Court to three counts of failing to file a federal tax return, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Shannon C. Monzon, 48, was charged in July with failing to file tax returns for the years 2016-2018. Monzon is the owner and operator of Misdemeanor Offenders Program (“MOP”), a private probation service that supervised probationers out of the Humphreys County General Sessions Court, the Municipal Court of McEwen, the Municipal Court of New Johnsonville, the Dickson County General Sessions Court, and the Dickson Municipal Court.
According to court documents, MOP was contracted by the counties and municipalities to provide probationary services for offenders referred to them. MOP charged probationers a fee to be supervised, and the probationers paid MOP directly by cash, money order, official checks, or personal checks. MOP also received payments from the contracting municipalities and counties.
Between 2013 and 2018, MOP received over $708,000 in deposits into the business account. Additionally, during that time, Monzon and her husband received over $617,000 in cash deposits into their joint personal bank account and were required by the IRS to file personal federal income tax returns.
As part of the plea agreement, Monzon admitted that she willfully did not file tax returns for tax years 2008-2018 and caused a tax loss to the IRS in the amount of $396,002 and agrees to pay restitution in that amount.
Monzon faces up to one year in prison and a fine of up to $100,000 on each count when she is sentenced on January 6, 2021. This case was investigated by the IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Kathryn Booth.
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Miami Neighbors Charged with Covid-Relief Fraud After Falsely Claiming to be FarmersRead the Press Release
Miami, Fl. -- Two Florida neighbors were charged in a complaint unsealed today with wire fraud and false statements for their alleged participation in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG), and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, Florida, were charged in a complaint filed in the Southern District of Florida with wire fraud and false statements. Both individuals were arrested this morning and appeared today before U.S. Magistrate Judge Alicia M. Otazo-Reyes in Miami.
The complaint alleges that Stanley and Philus submitted four fraudulent applications for over $1.1 million. In her PPP application, Stanley claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. In the EIDL application, Stanley claimed to generate over $800,000 in income and employed five individuals from a farm based in the yard of her Miami home. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In his EIDL application, Philus claimed to generate $400,000 in income and employed ten individuals from a farm located in the yard of a small residential home.
In actuality, the complaint alleges that Stanley and Philus employed no one and the farms did not exist. Stanley and Philus, who are neighbors, allegedly worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds before their schemes were uncovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Assistant U.S. Attorney Brooke Watson for the Southern District of Florida and Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and 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.
Miami Neighbors Charged with COVID-Relief Fraud after Falsely Claiming to be FarmersRead the Press Release
Two Florida neighbors were charged in a complaint unsealed today with wire fraud and false statements for their alleged participation in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG), and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, Florida, were charged in a complaint filed in the Southern District of Florida with wire fraud and false statements. Both individuals were arrested this morning and appeared today before U.S. Magistrate Judge Alicia M. Otazo-Reyes in the Southern District of Florida.
The complaint alleges that Stanley and Philus submitted four fraudulent applications for over $1.1 million. In her PPP application, Stanley claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. In the EIDL application, Stanley claimed to generate over $800,000 in income and employed five individuals from a farm based in the yard of her Miami home. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In his EIDL application, Philus claimed to generate $400,000 in income and employed ten individuals from a farm located in the yard of a small residential home.
In actuality, the complaint alleges that Stanley and Philus employed no one and the farms did not exist. Stanley and Philus, who are neighbors, worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds before their schemes were uncovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brooke Watson for the Southern District of Florida 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.
Mexican Man Who Possessed a Fraudulent Social Security Card Sentenced to PrisonRead the Press Release
A Mexican man who possessed false identification documents was sentenced today to five months in federal prison.
Gandhi Rojas-Lopez, age 33, a citizen of Mexico illegally present in the United States and living in West Liberty, Iowa, received the prison term after a guilty plea to one count of unlawful possession of identification documents.
In a plea agreement, Rojas-Lopez admitted that in February 2016, he possessed and used a fraudulent social security card and a fraudulent permanent resident card, also known as a “green card,” when completing paperwork to obtain employment in Stanwood, Iowa. The account numbers on the identification documents were assigned to other people.
Rojas-Lopez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Rojas-Lopez was sentenced to five months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rojas-Lopez [was released on the bond previously set and is to surrender to the United States Marshal on September 9, 2020.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-76.
Follow us on Twitter @USAO_NDIA.
McKeesport Felon Subject to PFA Charged with Federal Drug and Gun CrimesRead the Press Release
PITTSBURGH, Pa. - A McKeesport, Pennsylvania, resident has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on August 26 and unsealed today, named Jermaine Curry, age 35, as the sole defendant.
According to the Indictment, on or about December 18, 2019, Curry, a convicted felon who was on parole and subject to a Protection from Abuse Order (PFA), knowingly and unlawfully possessed 10 firearms and ammunition. A PFA in Pennsylvania provides that a person shall not "abuse, harass, stalk, threaten, or attempt or threaten to use physical force against" the persons protected by the order, including intimate partners and children. Federal law prohibits anyone who is subject to a PFA and anyone who has been convicted by crimes punishable by a year or more in prison from lawfully possessing a firearm or ammunition. Law enforcement officials seized quantities of fentanyl, acetyl fentanyl, heroin, crack cocaine, drug packaging supplies, and $1,173 in United States currency from the defendant’s residence. As such, the indictment also charges Curry with possession with intent to distribute the narcotics, and possessing the firearms in furtherance of his drug trafficking crimes.
"This prosecution is part our of commitment to protect victims and survivors of domestic and intimate partner violence," said U.S. Attorney Brady, who has been a member of Attorney General William Barr’s Domestic Violence Working Group since June of 2019. "We know that where a firearm is present, the likelihood of a domestic violence-related homicide increases by 500%. Our goal, simply stated, is to save lives. One way we are doing that is by federally prosecuting domestic abusers who illegally possess firearms."
The law provides for a maximum total sentence of life prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant has been detained pending the resolution of the case.
Assistant United States Attorney Nicole Vasquez Schmitt, who serves as the office’s Domestic Violence Coordinator, is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Probation Office, and the McKeesport Police conducted the investigation leading to the indictment of Curry.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man guilty of filing false corporate income tax returnRead the Press Release
HOUSTON – A man has admitted he filed a tax return alleging there were no taxes owed, announced U.S. Attorney Ryan K. Patrick.
Gilberto Parada-Arevalo pleaded guilty today to one count of filing a false 2011 U.S. corporate income tax return for Tamaleria Panaderia Y Pupuseria La Roca Inc. In that return, he falsely claimed the corporation owed no income taxes for 2011.
As part of the plea agreement, Parada-Arevalo agreed the relevant conduct - total intended tax loss - for purposes of sentencing is between $100,000 and $250,000. He has agreed to pay more than $74,000 in restitution to the IRS.
U.S. District Judge George Hanks accepted the plea and set sentencing for Nov. 16. At that time, Parada-Arevalo faces up to three years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS – Criminal Investigation conducted the investigation0n. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference TodayRead the Press Release
CHARLESTON, W.Va. – Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference today at 3 p.m., regarding law enforcement actions.
Where: Robert C. Byrd United States Courthouse (in front of the courthouse)
300 Virginia Street East
Charleston, WV 25301When: Wednesday, August 26, 2020 at 3 p.m.
*Note: Please wear masks.
Follow us on Twitter: SDWVNews and USAttyStuart
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Leader of local cocaine distribution cell headed to prisonRead the Press Release
HOUSTON – A 37-year-old Houston man has been handed a significant sentence following his conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.
Ernesto Martinez pleaded guilty Sept. 25, 2019.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 200-month sentence to be followed by five years of supervised release.
In handing down the sentence, the court found Martinez ran a large-scale cocaine distribution network that spanned more than four years. During that time, Martinez and his associates distributed more than 50 kilograms of cocaine to a large number of cocaine distributors based throughout the country to include cities in Texas, Ohio, Florida and Arkansas.
The judge found Martinez to be a leader and organizer in the drug operation who dealt directly with cartel members in Mexico.
Martinez also possessed a firearm when trafficking cocaine on one occasion and maintained a residence in Houston used to stash cocaine and drug proceeds.
To date, seven others have been convicted for their respective roles in the drug trafficking organization.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Harris County Sheriff’s Office led the investigation as part of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.
Lawrence Resident Pleads Guilty to Sexual Exploitation ChargesRead the Press Release
BOSTON – A Lawrence resident pleaded guilty today to sexually exploiting two children under four years of age.
Jakob Nieves, who also goes by the name Dakota, 20, pleaded guilty to two counts of sexual exploitation of children, one count of distribution of child pornography and one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 16, 2020. In September 2019, Nieves was indicted and has been detained since being arrested on Aug. 14, 2019.
As part of an investigation into the use of Kik messenger for the trade of child pornography, an undercover agent communicated with Nieves via Kik. During the course of those communications, Nieves sent the undercover agent images and videos that Nieves produced, depicting Nieves sexually abusing a child.
When law enforcement executed a search warrant at Nieves’ home on Aug. 14, 2019, Nieves admitted to distributing images and videos of child pornography to a user Nieves “met” in a Kik group geared toward individuals interested in pedophilia. Forensic analysis of Nieves’ cell phone revealed pornographic images and videos of two children known to Nieves, both of whom were under the age of four, as well as thousands of child pornography images depicting victims personally unknown to Nieves.
The charge of sexual exploitation of children provides for a minimum mandatory sentence of 15 years and up to 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Coordinator and member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Kittanning Man Indicted on Drug ChargesRead the Press Release
PITTSBURGH, PA – An Armstrong County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Charles Blystone, age 49, of Kittanning, Pennsylvania, as the sole defendant.
According to the Indictment, on or about January 28, 29, and 30, 2020, Blystone possessed with the intent to distribute and distributed quantities of fentanyl.
The law provides for a maximum total sentence, at each count, of not more than 60 years in prison, a fine of $3,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Announces New Federal-Tribal Partnerships to Combat Domestic Violence in Oklahoma and Other StatesRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) announced today that it will dedicate $2,250,000 to continue a successful approach among tribal and federal authorities to hold violent offenders accountable for crimes they commit in Indian Country. U.S. Attorneys Trent Shores for the Northern District of Oklahoma, U.S. Attorney Brian Kuester for the Eastern District of Oklahoma, and U.S. Attorney Timothy Downing of the Western District of Oklahoma helped make the announcement for at a press conference in Tulsa.
The Tribal Special Assistant United States Attorney (Tribal SAUSA) Initiative, financed through a partnership between OVW and the Bureau of Justice Assistance (BJA), trains cross-deputized tribal prosecutors in federal law and procedure and investigative strategies so they can pursue domestic or sexual violence cases in tribal court, federal court, or both. “A victim’s safety and freedom from her abuser should not hinge on the jurisdictional boundaries around the crime scene. These new awards continue the Department’s commitment to equipping tribal prosecutors with the tools they need to curb domestic violence no matter where it occurs,” said OVW Principal Deputy Director Laura Rogers.
Owing to the funds contributed by BJA, the five tribes receiving SAUSA awards have enhanced resources to prosecute not only domestic violence, sexual assault, and stalking cases, but also other serious offenses including homicides, robberies, and cybercrimes. The recipient tribes are:
• Chickasaw Nation (Western District of Oklahoma)
• Southern Ute Tribe (District of Colorado)
• Pueblo of Laguna (District of New Mexico)
• Oglala Sioux Tribe (District of South Dakota)
• Mississippi Band of Choctaw Indians (Southern District of Mississippi)
“The rate of violent victimization is staggeringly high in American Indian and Alaska Native communities. We have to do more to bring this rate down and make more justice solutions available to our tribal partners. The new SAUSA awards are a big step in that direction,” remarked R. Trent Shores, United States Attorney for the Northern District of Oklahoma and Co-Chair of the Native American Issues Subcommittee.
“Working closely with the Chickasaw Nation to ensure justice is served for crimes committed on Chickasaw land is a priority for my office,” said Timothy J. Downing, United States Attorney for the Western District of Oklahoma. “These new grant funds fill help fill critical resource gaps, ensuring we can take a robust approach to safeguarding victims and their families from further harm.”
“Prosecuting domestic abusers before their violence turns lethal is critical to ensuring victims can survive the harm done to them, but so too are services that support victims’ recovery. Those services are what these grant funds provide,” noted Brian J. Kuester, United States Attorney for the Eastern District of Oklahoma.
The SAUSA project with the Chickasaw Nation is part of a $12 million grants package that OVW will award this year to bolster efforts in Oklahoma to combat domestic violence, which has reportedly increased in Tulsa and Oklahoma City in recent months. This new funding will reach rural and tribal communities throughout the state that also struggle with a growing need for justice solutions and victim services. Other specific grants are as follows:
Specific grants to Tulsa County and City of Tulsa:
• A $449,948 grant to the Tulsa County District Court to establish a docket for monitoring compliance among domestic violence offenders, and develop policies and training for court personnel and community partners on firearms surrender following a domestic violence conviction or issuance of a final protection order.
• A $750,000 award to the City of Tulsa to support domestic violence investigations, victim-witness services, and a new, specialized domestic violence prosecution unit.
The City of Tulsa, whose work OVW is proud to support again this year, recently reported that its grant funding has been critical to addressing high-risk domestic violence cases, fostering coordination among prosecutors and law enforcement on evidence collection, and connecting victims to advocates who can help them navigate the justice process and obtain services to help them rebuild their lives. Recognizing that ending domestic violence in Oklahoma requires partnerships among federal, tribal, and local justice agencies, OVW is pleased to invest in collaborative strategies that put safety in reach for victims in cities and on reservations throughout the state.
Specific grants to Oklahoma Tribes:
• A $407,000 grant to the Absentee Shawnee Tribe to update its tribal codes, policies, and procedures in preparation for exercising special domestic violence criminal jurisdiction under the Violence Against Women Act.
• Over $3 million under OVW’s Tribal Governments Program is slated to go to four tribes in Oklahoma—the Choctaw Nation of Oklahoma, the Pawnee Nation, the Iowa Tribe of Oklahoma, and the Delaware Tribe of Indians—to support coordinated community responses to violence against women.
Other awards that will be issued to organizations and government agencies in Oklahoma include:
• A $597,849 grant to the Native Alliance Against Violence, in Norman, to provide legal services for domestic violence and sexual assault victims in tribal communities. This organization will also receive $353,615 in formula funding to provide education, support, and technical assistance to tribes and tribal victim services providers.
• A $243,619 grant to the Oklahoma Coalition Against Domestic Violence and Sexual Assault to coordinate victim services and collaborate with federal, state, and local entities on addressing violence against women in Oklahoma.
• $2,019,340 in formula funds that support law enforcement, prosecutors, victim services providers, and courts in working collaboratively to respond to domestic and sexual violence.
Jury Finds Little Rock Felon Guilty of Possessing AmmunitionRead the Press Release
LITTLE ROCK—After a two-day trial, a federal jury has found Anthony Obi, Jr., 29, guilty of being a felon in possession of a firearm. The jury returned their verdict Tuesday evening after trial began on Monday and continued with testimony on Tuesday. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Obi, of Little Rock, at a later date.
“Felons with guns are a threat to the safety of our communities,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “This defendant fired a gun into a car full of people. We will not tolerate this reckless, dangerous behavior. This guilty verdict should signify to felons with firearms that we will investigate and prosecute them for the havoc they attempt to wreak in our society.”
Testimony during the trial established that in June 2019, police responded to a call in Southwest Little Rock. Officers made contact with four victims who stated that Anthony Obi had shot at their vehicle four or five times, striking the vehicle at least once and causing slight injuries when the glass from the driver’s side window broke. Obi was arrested shortly thereafter, wearing clothing that matched the description from the victims. He did not have a gun at the time of arrest, so he was charged with possessing the spent .45 caliber ammunition casings that were found at the scene.
Because Obi is a felon, having been convicted of possession of a controlled substance with intent to distribute in 2008, it is illegal for him to possess ammunition. A grand jury indicted Obi on one count of being a felon in possession of ammunition in November 2019.
“The Bureau of Alcohol, Tobacco, Firearms, and Explosives, in this joint effort, will continue to focus on repeat offenders like Anthony Obi, Jr., who is prohibited from possessing firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “Reducing firearm related crimes and keeping our neighborhoods and communities safe is the top priority for ATF.”
The statutory penalty for being a felon in possession of ammunition is not more than 10 years imprisonment, not more than three years of supervised release, and not more than a $250,000 fine. The investigation was conducted by the Little Rock Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the case was prosecuted by Assistant United States Attorneys Bart Dickinson and Amanda Fields.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Indictment: Investigation Began at Grocery StoreRead the Press Release
KANSAS CITY, KAN. – A Kansas man was indicted today on federal firearms and drug trafficking charges, U.S. Attorney Stephen McAllister said.
Pablo Martinez, 42, Kansas City, Kan., was charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of possession with intent to distribute marijuana.
Court documents allege the investigation began when law enforcement received a complaint from Balls Food Inc. that one of its employees was distributing marijuana. Investigators identified Martinez as the employee’s supplier.
When the Kansas Highway patrol stopped Martinez’s car for a traffic violation, a trooper found a .45 caliber handgun and more than a quarter pound of marijuana in the car. Martinez denied selling marijuana. He told investigators he himself smoked about a quarter pound of marijuana every five days.
If convicted, he could face a penalty not less than five years in federal prison on the charge of unlawful possession of a firearm in furtherance of drug trafficking, up to 10 years and fine up to $250,000 on the other firearm charge and up five years and a fine up to $250,000 on the marijuana charge. The FBI, the Kansas City, Kan., Police Department and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
OTHER INDICTMENTS
Dantay Ray Williams, 19, Topeka, Kan., is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred June 17, 2020 in Topeka.
If convicted, he could face a penalty of not less than five years in federal prison on firearm charge and up to five years and a fine up to $250,000 on the marijuana charge. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Anthony Contreras, 22, Overland Park, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon, one count of distributing fentanyl and one count of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 22, 2020, in Wyandotte County, Kan.
If convicted, he could face a penalty of not less than 20 years and a fine up to $1 million on the charge of distributing fentanyl, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the other firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Fermin Ramirez Bueno, 27, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 5, 2010, in Johnson County, Kan.
If convicted, he could face a penalty up to 10 years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien from Honduras Sentenced for Human SmugglingRead the Press Release
Gulfport, Miss. – Selvin Geovani Velazquez-Villanueva, 33, an illegal alien from Honduras, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to 24 months in federal prison, followed by 3 years of supervised release, for smuggling other illegal aliens, announced U.S. Attorney Mike Hurst, and Gilbert Trill, Acting Special Agent-in-Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans.
On February 11, 2020, a Harrison County Sheriff’s Deputy was patrolling Interstate 10 and observed a Chevrolet Trailblazer driving recklessly. The deputy initiated a traffic stop of the vehicle and a U.S. Border Patrol Agent arrived on the scene to assist. The deputy and the Border Patrol Agent encountered the driver, Selvin Geovani Velazquez-Villanueva, and detected numerous signs of smuggling. They determined that Velazquez-Villanueva and his five passengers did not have proper documents to be legally in the U.S., and all vehicle occupants were transported to the Border Patrol station in Gulfport for processing.
Velazquez-Villanueva and each of his five passengers had their fingerprints scanned into a U.S. Department of Homeland Security computerized records database which automatically matches fingerprints from prior immigration encounters. Velazquez-Villanueva was positively identified as an adult alien to the United States, who had been previously deported or removed from the U.S. Additionally, three of his passengers were confirmed to be illegal aliens who had been previously deported or removed from the U.S. and had knowingly returned without lawful permission.
Velazquez-Villanueva pled guilty before Judge Guirola on June 10, 2020. The three previously-deported illegal alien passengers being smuggled by Velazquez-Villanueva pled guilty and were sentenced for unlawful return by an alien after removal: Martinez-Torres, 32, of Mexico, pled guilty on July 23, 2020, and was sentenced to “time served;” Gerver Gudiel Vicente-Perez, 23, of Guatemala, pled guilty on June 29, 2020, and was sentenced to “time served;” and Jonathan Alexander Zamora-Amaya, 21, of El Salvador, pled guilty on June 4, 2020 and was sentenced to “time served.” All three of the passengers were also sentenced to a term of 1 year of supervised release and will undergo Department of Homeland Security removal proceedings to remove them back to their home nations.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houstonian on state bond ordered into federal custodyRead the Press Release
HOUSTON – A 20-year-old man has made an appearance in federal court and ordered detained on charges relating to sexual exploitation of a child, announced U.S. Attorney Ryan Patrick.
A federal grand jury returned the indictment against Javon Opoku Aug. 19. Authorities took him into custody Aug. 24.
Today, he appeared before U.S. Magistrate Judge Andrew M. Edison who found Opoku was a danger to the community and ordered him detained pending further criminal proceedings.
The court heard that Opoku had been pulled over for a traffic violation in February. According to testimony, Opoku was on a bond for capital murder, evading arrest and unlawful carrying of a weapon charges at the time of the stop. Law enforcement seized his cellphone and took him into custody. He was later released again on bond.
According to testimony today, Opoku had been on bond for eight different charges that stemmed from alleged activities on four different dates.
At the hearing, the court also heard that law enforcement conducted a search of his seized phone and discovered three videos that appeared to be child pornography. The videos all allegedly depict Opoku vaginally penetrating a 16-year-old female.
Common conditions of bond generally include that individuals not possess weapons, refrain from narcotics and not commit new offenses, according to testimony. The court heard Opoku had done some or all of this while out on his previous bond.
If convicted, Opoku faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine as well as restitution.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which 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."
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Holyoke Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke man pleaded guilty yesterday in federal court in Springfield to distributing heroin.
Luis Garcia-Figueroa, 20, pleaded guilty to eight counts of distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 22, 2020.
Garcia-Figueroa possessed with the intent to distribute and distributed heroin on eight occasions between October 2019 and Jan. 15, 2020.
The case was the result of an investigation into heroin trafficking in Holyoke.
The charging statute provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine $1 million on each count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Hinton Man to Federal Prison for Child Pornography ConvictionRead the Press Release
On August 25, 2020, Shayne Yates, 49, from Hinton, Iowa, pled guilty to possessing child pornography and was sentenced to more than 2 years in federal prison.
Evidence at the hearing showed that from August 2017 through February 2019, Yates possessed over 150 images of child pornography on a Kindle Fire Tablet. The pornography contained visual depictions of minors engaged in sexually explicit conduct, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age.
Yates was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Yates was sentenced to 33 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Yates is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4092.
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Harrison County Man Sentenced to 5 Years in Prison on Gun ChargeRead the Press Release
Gulfport, Miss – Benjamin Joseph Butler, 39, of Gulfport, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 60 months in prison, followed by 5 years of supervised release, for possessing a firearm in furtherance of drug trafficking, announced U.S. Attorney Mike Hurst and Kurt H. Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Butler was also ordered to pay a $5,000 fine.
Between August and October 2019, Butler sold marijuana to an individual on four separate occasions. Agents executed a search warrant on Butler’s home where they found marijuana, LSD, THC oil, Psilocybin mushroom, methamphetamine, 17 firearms, multi rounds of ammunition and two silencers.
Butler was charged in a federal criminal indictment and he pled guilty before Judge Guirola on June 4, 2020.
The Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Hampton Defense Contractor and Employees Indicted on Fraud ChargesRead the Press Release
NEWPORT NEWS, Va. – Federal charges were unsealed today in a case involving a Hampton-based business, its owner and employees, and their alleged involvement in an extensive procurement fraud scheme involving millions of dollars in government contracts targeting the Department of Defense and other federal government agencies.
According to allegations in the unsealed indictment, from at least 2011 through at least 2018, Iris Kim, Inc., (aka I-Tek), owner Beyung S. Kim, 61, of Newport News, and employees Seung Kim, 30, of Newport News, Dongjin Park, 53, of Yorktown, Chang You, 61, of Yorktown, Pyongkon Pak, 53, of Toano, and Li-Ling Tu, 57, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.
Based on the invoices submitted related to the contracts in this indictment, the United States paid I-Tek approximately $8.1 million from around January 2012 through about December 2018. The United States paid I-Tek approximately $24 million for the entirety of the contracts I-Tek supplied during this same time period, with over $20 million in revenue resulting from contracts where I-Tek obtained goods from China.
According to the indictment, these government contracts had certain set-aside preferences and source of good requirements. The indictment alleges that the defendants acted to defraud the United States by fraudulently importing goods into the United States that were made in China, in violation of the terms of these contracts. The defendants then falsely relabeled these goods as if they were made in the United States. The indictment further alleges that the defendants acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for certain set-aside contracts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement. Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Matthew Mattis are prosecuting the case.
The U.S. Small Business Administration’s Office of the Inspector General and the U.S. Department of State provided significant assistance to this 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-57.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Habitual Domestic Violence Offender Gets Maximum Sentence for Assaulting Pregnant VictimRead the Press Release
United States Attorney Joe Kelly announced that Clayton Bertucci, age 32, of Macy, Nebraska, was sentenced today to 60 months in prison by United States District Court Judge Brian C. Buescher for Domestic Assault by a Habitual Offender. This is the statutory maximum possible punishment that Bertucci could have received. There is no parole in the federal system. Upon his release from prison, Bertucci will serve 3 years of supervised release.
On December 22, 2018, the victim and Bertucci became involved in a domestic dispute at Bertucci’s mother’s house on the Omaha Indian Reservation. The victim left the residence and Bertucci pursued her and when he caught up to the victim, Bertucci hit the victim in the back of the head and knocked her to the ground. Bertucci continued to kick and hit the victim while she was still on the ground. Bertucci knew that the victim was pregnant at the time of the assault. Bertucci only stopped the assault when he saw a police car coming up the street and he fled the scene. Bertucci has two prior convictions for domestic abuse against this same victim from 2017 and 2018.
FBI Omaha Special Agent in Charge Kristi Johnson said, “The FBI is committed to its work in Indian Country. Domestic violence on tribal lands demands our attention. We will continue to find justice for every victim of this vicious crime.”
This case was investigated by the Macy Police Department and the Federal Bureau of Investigation.
Ghanaian Citizen Extradited in Connection with Prosecution of Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
Memphis, TN – A Ghanaian citizen residing in Tamale, Ghana, has been extradited to stand trial for an indictment charging him with wire fraud, money laundering, computer fraud and aggravated identity theft.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.
On Aug. 23, 2017, a federal grand jury in the U.S. District Court for the Western District of Tennessee indicted Maxwell Peter, 27, whose given name is Maxwell Atugba Abayeta, and others with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud and aggravated identity theft. Following his extradition, Peter’s initial appearance was made Tuesday before U.S. Magistrate Judge Charmiane G. Claxton for the Western District of Tennessee.
The indictment alleges that various Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business-email compromise, or BEC, this aspect of the scheme caused hundreds of thousands of dollars in losses to companies and individuals in Memphis. The defendant is specifically alleged to have directed the transfer of funds from a June 2016 BEC to a co-conspirator in Africa.
U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud often involve foreign nationals and others who hide behind technology, the cases are difficult – but not impossible – to investigate. With this extradition, this foreign defendant will now face justice in an American courtroom here in Memphis."
In addition to BEC, the defendant is also charged with perpetrating romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendant is specifically alleged to have created and used the alias "Sandra Lin" in furtherance of these crimes. From May through June of 2017, Peter is alleged to have communicated with an FBI agent acting in an undercover capacity to receive the proceeds of fraud. Along with his coconspirators over the life of the conspiracy, the defendant is believed to have caused millions of dollars in losses to victims across the globe.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seven other individuals have pleaded guilty to being involved in these schemes. Benard E. Okorhi, 41, was extradited in March 2020 from Canada, and is detained pending trial. Two others, Olufalojimi Abegunde, 33, and Javier Luis Ramos-Alonso, 30, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Abegunde received a 78-month sentence and Ramos-Alonso received a 31-month sentence for their roles in the scheme. Several individuals remain at large.
The FBI led the investigation. The Justice Department’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, FBI’s Money Laundering, Forfeiture, and Bank Fraud Unit of the Criminal Investigative Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of the Attorney-General & Ministry of Justice, and Ghana’s Economic and Organised Crime Office.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
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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Ghanaian Citizen Extradited in Connection with Prosecution of Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
A Ghanaian citizen residing in Tamale, Ghana, has been extradited to stand trial for an indictment charging him with wire fraud, money laundering, computer fraud and aggravated identity theft.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.
On Aug. 23, 2017, a federal grand jury in the U.S. District Court for the Western District of Tennessee indicted Maxwell Peter, 27, whose given name is Maxwell Atugba Abayeta, and others with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud and aggravated identity theft. Following his extradition, Peter’s initial appearance was made Tuesday before U.S. Magistrate Judge Charmiane G. Claxton for the Western District of Tennessee.
The indictment alleges that various Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business-email compromise, or BEC, this aspect of the scheme caused hundreds of thousands of dollars in losses to companies and individuals in Memphis. The defendant is specifically alleged to have directed the transfer of funds from a June 2016 BEC to a co-conspirator in Africa.
In addition to BEC, the defendant is also charged with perpetrating romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendant is specifically alleged to have created and used the alias “Sandra Lin” in furtherance of these crimes. From May through June of 2017, Peter is alleged to have communicated with an FBI agent acting in an undercover capacity to receive the proceeds of fraud. Along with his coconspirators over the life of the conspiracy, the defendant is believed to have caused millions of dollars in losses to victims across the globe.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seven other individuals have pleaded guilty to being involved in these schemes. Benard E. Okorhi, 41, was extradited in March 2020 from Canada, and is detained pending trial. Two others, Olufalojimi Abegunde, 33, and Javier Luis Ramos-Alonso, 30, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Abegunde received a 78-month sentence and Ramos-Alonso received a 31-month sentence for their roles in the scheme. Several individuals remain at large.
The FBI led the investigation. The Justice Department’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, FBI’s Money Laundering, Forfeiture, and Bank Fraud Unit of the Criminal Investigative Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of the Attorney-General & Ministry of Justice, and Ghana’s Economic and Organised Crime Office.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
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.
Fourth Person Admits Trafficking High-Dosage Oxycodone Pills Related to Gloucester City Drug RingRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted buying and reselling high-dosage oxycodone pills in Gloucester City, New Jersey, U.S. Attorney Craig Carpenito announced.
Kenneth Rushworth, 59, of Gloucester City, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone. He is the fourth individual to plead guilty for his role in drug trafficking operations based in Gloucester City and Camden.
According to documents filed in this case and statements made in court:
In communications that were intercepted during a wiretap investigation led by the FBI, Rushworth asked Rocco DePoder to provide Rushworth with $1,100 for high-dosage oxycodone pills on Jan. 25, 2020. Rushworth and DePoder then met in Gloucester City and, in exchange for the $1,100, Rushworth sold DePoder a quantity of 60 mg. oxycodone pills, which Rushworth had purchased from another individual for $900. Rushworth was aware that DePoder intended to re-distribute those high-dose pills.
On July 7, 2020, Wayne Muse pleaded guilty to his involvement in the drug trafficking operations with DePoder and Erick Bell. DePoder, Bell, and others were charged in criminal complaints in March 2020. On Aug. 11, 2020, Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey, pleaded guilty before Judge Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone. On Aug. 12, 2020, Steven Walker, 47, of Camden, pleaded guilty before Judge Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of oxycodone and one count of distributing and possessing with intent to distribute a quantity of oxycodone. The individuals who have pleaded guilty await sentencing.
The count of distributing and possessing with intent to distribute a quantity of oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Rushworth’s sentencing is scheduled for Jan. 4, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea. He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch and Sara F. Merin of the Newark Office.
The charges against DePoder and Bell remain pending, and they are presumed innocent unless and until proven guilty.
Former fugitive and alleged gang member charged with trafficking fentanylRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment against a former Texas top 10 fugitive and alleged member of the Aryan Brotherhood of Texas, announced U.S. Attorney Ryan K. Patrick.
The indictment was unsealed today charging Tyral Glenn Turner, 34, of Mathis. He had been in state custody on related charges. He is expected to appear in Corpus Christi federal court before U.S. Magistrate Judge Jason B. Libby Sept. 2.
The indictment charges Turner with one count of possession with intent to distribute over 350 grams of fentanyl and one count of unlawful possession of a firearm by a felon.
Authorities apprehended Turner June 26 as part of Operation Triple Beam, a collaboration of federal, state and local authorities targeting alleged violent gang members in the gulf coast region. At the time of his arrest, law enforcement allegedly seized over 350 grams of fentanyl packaged for distribution.
The charges further allege he also had a loaded 9 mm glock model 19 in his possession. Turner is a convicted felon. As such, he is prohibited by federal law of possessing a firearm or ammunition.
If convicted of the drug charges, he faces up to 40 years in federal prison and a possible $5 million maximum fine. The gun charge carries a 10-year-maximum possible penalty.
The U.S. Marshals Service and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former South Dakota Attorney Indicted for Fraud and Money LaunderingRead the Press Release
United States Attorney Ron Parsons announced that a Vale, South Dakota, woman was charged in federal district court with thirty counts of Wire Fraud, ten counts of Money Laundering, and one count of Bank Fraud.
Rena M. Hymans, age 48, was indicted by a federal grand jury on August 20, 2020. Hymans appeared before U.S. Magistrate Judge Daneta Wollmann on August 24, 2020, and pleaded not guilty to the charges. The maximum penalty on each count of wire fraud is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty on each count of money laundering is 20 years in federal prison and/or a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty for bank fraud is 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between June 2017 and January 2020, Hymans, in her capacity as a South Dakota licensed attorney, devised a scheme to fraudulently obtain money by transferring it from a client trust account – where she was holding it for the benefit of a client – to her own business and personal accounts and then using the money for her personal benefit.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case. The charges are merely accusations and Hymans is presumed innocent until and unless proven guilty.
Hymans was released pending trial. A trial date has not been set.
Former Head of St. Louis-Area Charter School Pleads Guilty to $2.4 Million FraudRead the Press Release
St. Louis, MO – Michael Malone, 44, of St. Louis, MO, pled guilty to three counts of wire fraud connected to a scheme to defraud and obtain education funds from the State of Missouri relative to the operation of the St. Louis College Prep Charter School from 2011 through 2018. Malone appeared today before U.S. District Judge Audrey Fleissig, who accepted his plea and set sentencing for November 30, 2020.
According to the plea agreement and statements made in Court, The St. Louis College Prep Charter School (“SLCP”) was a Missouri Charter School located in St. Louis, Missouri. From April, 2011 through June, 2015 it operated out of leased premises at 2900 South Grand Avenue, at which time it purchased a building at 1224 Grattan Street, where it operated until the school’s closing in May, 2019. During its final school year of 2018-2019, SLCP served students in grades six through twelve. As a Missouri Charter School, SLCP was tuition free and funded by Missouri and federal education funds. SLCP received its state funding through Missouri’s Department of Elementary and Secondary Education (“DESE”) based upon SLCP’s reported student attendance. Per-student funding is based on average daily attendance, or how often students are reported to be in the school, rather than enrollment. Malone founded SLCP and served as the Executive Director of SLCP from the school’s inception during 2011 until his resignation on November 1, 2018. Malone was actively involved in the day-to-day management and administration of SLCP, maintained his office in the primary school building and was responsible for reporting the SLCP student attendance numbers to DESE in order for DESE to calculate SLCP’s state funding.
As part of his scheme, Malone falsely inflated SLCP students’ average daily attendance in his reports to DESE. For four of the seven school years between 2011-2012 and 2017-2018, Malone reported students’ average daily attendance in excess of SLCP’s actual enrollment. For example, during the 2013-2014 school year, Malone reported average daily attendance of 220, when actual enrollment at SLCP was only 191 students. During the 2016-2017 school year, Malone reported average daily attendance of 326, when actual enrollment at SLCP was only 290 students. These falsely inflated average daily attendance numbers reported by Malone to DESE resulted in increased state funding to SLCP.
SCLP operated on a year-long school schedule and an extended school day with no summer school and no remedial classes. However, as part of his scheme, Malone inflated student attendance numbers by falsely claiming regular school days and hours as summer school or remedial hours, increasing the state funding received from DESE. Malone also falsely inflated actual student daily attendance. For example, during the 2016-2017 school year, Malone inflated the daily attendance records of 81 out of 333 students, or 24% of the actual SLCP student body. During the 2017-2018 school year, Malone inflated the daily attendance records of 188 out of 319 students, or 59% of the actual SLCP student body. Inflated hours totaled approximately 10,044 hours for the 2016-2017 school year and approximately 13,255 hours for the 2017-2018 school year.
Malone used the fraudulently obtained increase in state funding, approximately $2,400,000, to maintain SLCP’s ongoing operations during a period when costs to operate the school were increasing significantly. Malone also used the increased state funding to give SLCP a competitive advantage over St. Louis Public Schools and other St. Louis Charter Schools when recruiting students. As Missouri state funding follows the student, each St. Louis resident student successfully recruited to SLCP meant an increase in funding for SLCP and a decrease in funding for St. Louis Public Schools. The additional funds provided to SLCP were used to pay for resources which were not equally accessible to St. Louis Public Schools and other St. Louis Charter Schools.
United States Attorney Jeff Jensen stated, “What the former headmaster did through his deception, repeatedly over many years, was take advantage of the Missouri taxpayers, while obtaining an unfair advantage over the St. Louis Public Schools and other area charter schools. This was not a mistake. Evidence proved Michael Malone’s actions were intentional and, unfortunately he got away with it for years.”
"Michael Malone failed more than just students and staff at St. Louis College Prep Charter School," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "By siphoning $2,400,000 from a finite pool of education dollars, he robbed students at other public and charter schools of additional resources they should have received."
Each charge of wire fraud carries a maximum possible penalty of twenty years imprisonment, a fine of $250,000 or both imprisonment and a fine. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of the Missouri Department of Elementary and Secondary Education and the Missouri State Auditor’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
Former Director of Tribal Development Entity Pleads Guilty to BriberyRead the Press Release
United States Attorney Ron Parsons has announced the following plea, identified below, brought by the Guardians Project, a collaborative federal law enforcement initiative in the District of South Dakota designed to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those responsible for adversely affecting those living in South Dakota’s tribal communities.
Guilty Plea for Bribery Related to Programs Receiving Federal Funds
Daniel Thomas White, age 44 of Peever, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 24, 2020, and pleaded guilty to bribery concerning programs receiving federal funds.
At the time of the bribery scheme, White served as the Director of the Dakota Nations Development Corporation (DNDC), an entity of the Sisseton-Wahpeton Oyate Sioux Tribe. White’s duties included, among other things, overseeing housing and construction projects of the DNDC.
DNDC, by and through the tribe, received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018. DNDC established an entity called the SWO Elderly Village Limited Partnership. The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land. On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex. The tribe also committed nearly $3,000,000 to the project.
On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679. According to documents filed with the Court, on or about November 6, 2017, White corruptly solicited, demanded, and agreed to accept a thing of value from a person or persons working for and on behalf of Tatanka Contracting, intending to be influenced and rewarded in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
A sentencing date of May 24, 2021, has been set.
Florida Man Sentenced to 105 Months in Prison for Role in $16 Million Miami Health Care Fraud and Wire Fraud SchemeRead the Press Release
Miami, Fl. – A federal judge in Miami sentenced Roberto Murillo, 44, of North Port, Florida, to 105 months in prison for his role in a massive health care fraud and wire fraud scheme involving fraudulent physical therapy claims. Senior U.S. District Judge Patricia A. Seitz imposed the sentence, which came after a Miami jury found Murillo guilty in January 2020 of all counts charged, including conspiracy to commit health care fraud and wire fraud, and several counts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
The evidence at trial revealed that during the illegal scheme, Murillo had a legitimate job at a Miami telecommunications call center, and he received private insurance coverage through that job. As part of the fraud, Murillo used his position to recruit dozens of his colleagues, many of whom who he knew were suffering various financial and personal hardships, to Friv MD, PLLC, a fraudulent Miami physical therapy clinic in exchange for cash bribes. Murillo also forced family members living under his roof to allow Murillo and his co-conspirators to use their insurance information to submit additional fraudulent claims. The clinic, in turn, submitted over $16 million in claims to United Healthcare for services that were not performed or not medically necessary.
Trial evidence established that Murillo’s role in the lengthy scheme did not stop at recruiting others to Friv MD. Murillo also instructed the recruited “patients” to fill out paperwork for dates they did not receive services, to describe ailments they did not have to the therapists at the clinic, and to lie when questioned by investigators about the illegal scheme. In some instances, Murillo also failed to pay the cash that he had promised to give recruited “patients” in exchange for their signatures, keeping it instead for himself.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Anne P. McNamara and Fraud Section Trial Attorney Drew Bradylyons. Assistant U.S. Attorney Adrienne E. Rosen handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under Case No. 19-CR-20436-PAS.
Federal Jury Convicts Two Individuals for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Birmingham, Ala. – A federal jury today convicted two individuals for conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, announced U.S. Attorney Prim Escalona, Homeland Security Investigations Special Agent in Charge Robert Hammer, and Secretary of the Alabama Law Enforcement Agency Hal Taylor.
The jury returned its guilty verdict against Isiah Thomas, 36, of Bessemer and Tavara Gissendanner, 36, of Newville after three days of testimony before Chief U.S. District Judge L. Scott Coogler.
“This verdict serves as notice to every individual involved in illegal narcotics distribution,” Escalona said. “My office remains committed to working with our law enforcement partners to bring to justice those who deal this deadly poison in our communities.”
“The success of this multi-faceted investigation would not have been possible without our ALEA partners and the assistance of the Alabama DOC,” Homeland Security Investigations Special Agent in Charge Robert Hammer. “Law enforcement partnerships at the federal, state, and local levels are key to ensuring public safety. We are extremely proud to have been a part of the team of law enforcement professionals that brought these individuals to justice.”
Secretary of the Alabama Law Enforcement Agency Hal Taylor said, “This conviction demonstrates our continued determination and dedication to completely eliminate and end this horrible epidemic caused by drug trackers; that not only faces our state but the entire nation. The Alabama Law Enforcement Agency is fully committed to our partnership with federal and local law enforcement agencies to ensure the safety of all Alabama citizens.”
Evidence at trial proved that in early 2019 Gissendanner directed a network of associates in trafficking quantities of narcotics – including heroin, methamphetamine, and fentanyl – and money across the state. Gissendanner orchestrated the drug trafficking while in Alabama Department of Corrections custody, in part through the use of contraband cellular phones he obtained in prison. One of his associates, Thomas, was arrested in April 2019 when he received a shipment of two kilograms of heroin and a drug press orchestrated by Gissendanner. Investigators intercepted the shipment before it was delivered to Thomas and substituted the actual heroin with mock narcotics in similar packaging. The intercepted heroin was worth an estimated $150,000. Additional seizures in the case included quantities of methamphetamine, cocaine, heroin-fentanyl mixtures, and cash.
The maximum penalty for conspiracy to possess with intent to distribute and distribution of over one kilogram or more of heroin is life in prison.
The investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Homeland Security Investigations and the Alabama Law Enforcement Agency investigated the case with the assistance of the Alabama Department of Corrections. Assistant U.S. Attorneys Austin Shutt and Allison Garnett prosecuted the case.
Federal Judge in Waco Hands Down Prison Terms to Project Safe Childhood DefendantsRead the Press Release
In Waco, U.S. District Judge Alan Albright sentenced two men to lengthy federal prison terms for possession of child pornography, announced U.S. Attorney John F. Bash.
Today, Judge Albright sentenced 34-year-old Derek Loyd Ward of Whitney, TX, to 240 months in federal prison followed by ten years of supervised release. Judge Albright also ordered that Ward pay $10,000 in restitution. On October 8, 2019, Ward pleaded guilty to one count of possession of child pornography. On May 30, 2019, authorities executed a search warrant at the defendant’s residence and seized his personal computer and related media. A forensics review of the seized materials revealed the presence of approximately 550 videos and 875 images depicting minors engaged in sexually explicit conduct.
Yesterday, Judge Albright sentenced 28-year-old Tyler Christopher Benson of Killeen, TX, to 110 months in federal prison followed by five years of supervised release. On October 15, 2019, Benson pleaded guilty to one count of possession of child pornography. On October 26, 2017, authorities executed a search warrant at the defendant’s residence and seized his laptop computer and cellular telephone. A forensics review of the computer and cell phone revealed the presence of approximately 775 videos and 360 images depicting minors engaged in sexually explicit conduct.
“Those who possess child pornography sustain the market for the abuse of children. Today’s sentence was richly deserved,” stated U.S. Attorney Bash.
The Child Exploitation Division of the Texas Attorney General’s Office investigated these cases. Assistant U.S. Attorney Greg Gloff prosecuted these cases on behalf of the government.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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.
Fashion District Outfit and Company Owner Agree to Plead Guilty to Customs Violations, Tax Offenses and Pay Nearly $118 MillionRead the Press Release
LOS ANGELES – Federal prosecutors have filed charges against a Fashion District clothing importer and the company’s owner in a scheme to undervalue imported garments and avoid paying millions of dollars in duties to the United States. The cases also allege a tax fraud scheme in which the company’s owner failed to report on tax returns millions of dollars derived from cash transactions.
In conjunction with the criminal charges filed late Tuesday, prosecutors also filed plea agreements in which Ambiance Apparel and company owner Sang Bum “Ed” Noh agreed to plead guilty to felony offenses and pay a total of $117,897,708, which includes nearly $36 million in cash seized from Ambiance and Noh in 2014.
Noh, 66, of Bel Air, agreed to plead guilty to one count of conspiracy and one count of subscribing to a false tax return, charges that carry a statutory maximum penalty of eight years in federal prison.
Ambiance Apparel – the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A., Inc. – agreed to plead guilty to eight counts, including conspiracy, money laundering, and customs offenses.
Court documents outline separate schemes involving Ambiance and Noh, which came to an end in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses.
In the customs fraud scheme, Ambiance imported clothing from Asian countries and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments and allowed Ambiance to avoid paying the full amount of tariffs owed on the imports, according to court documents. At Noh’s direction, the Asian manufacturers prepared two invoices for the clothing ordered by Ambiance – one that usually reflected 60 to 70 percent of the actual price and was paid by letter of credit, and one that reflected the balance of the actual price and was paid by wire transfer. The first invoice, which fraudulently reduced the value of the shipment, was submitted to CBP and was used to calculate the tariffs due on the imports. As a result of this scheme, over the course of just over 4½ years, Ambiance undervalued imports by about $82.6 million and failed to pay more than $17.1 million in tariffs. In the plea agreement filed today, Ambiance and Noh have agreed to pay U.S. Customs and Border Protection a total of $18.42 million, which includes the unpaid tariffs and interest accrued through 2014.
In the second scheme outlined in a statement of facts filed Tuesday, Ambiance admitted it failed to file reports with the Secretary of the Treasury that documented cash transactions of more than $10,000. Ambiance employees received approximately 364 payments of more than $10,000 over a two-year period – which totaled more than $11.1 million – and the company failed to file a single Form 8300 to alert federal authorities to the cash transactions.
In conjunction with these cash transactions, Ambiance used two sets of books to record sales, one of which documented only cash transactions and was not reported to Ambiance’s outside accountants. Noh also directed some of the second set of transactions to be underreported to the accountants. The lower sales figures were reported on 2011 and 2012 tax returns filed by Noh. Noh admitted that he failed to report income for those two years and now owes the Internal Revenue Service a total more than $16.8 million, which includes unpaid taxes, penalties and interest.
Noh and Ambiance will be summonsed to appear for arraignments on September 14 in United States District Court.
Once the guilty pleas are entered on behalf of Ambiance, the company expects to be placed on probation for five years, during which time it will implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor.
The case against Ambiance and Noh was investigated by Homeland Security Investigations, IRS Criminal Investigation, U.S. Customs and Border Protection, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department.
This matter is being prosecuted by Assistant United States Attorney Lucy B. Jennings of the International Narcotics, Money Laundering, and Racketeering Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section is also working on this case. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force.
Fairfax Man Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Ryan Michael Kannett appeared in federal court today on a criminal complaint alleging that he possessed child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations Special Agent in Charge Tatum King.
An affidavit filed by an HSI agent in connection with the criminal complaint alleged that Kannett, 36, of Fairfax, used the handle “Sir Sicko,” among others, to engage online with an individual whom he believed to be interested in child pornography, but who in fact was an undercover agent. Kannett allegedly provided the agent with several videos and images depicting sexual acts with minors. Agents then traced the IP addresses from which those files were sent and found the IP addresses were linked to Kannett’s residence in Fairfax. Agents executed a search warrant at that residence and recovered a tablet device that allegedly contained approximately 454 videos depicting child pornography, including videos depicting minors forced to engage in bestiality and bondage. One video in particular was approximately 8 minutes long, and showed an adult female sexually and physically abusing a girl who appeared to be approximately 2 to 5 years old.
Kannett was arrested on December 17, 2019 in Fairfax, Calif., and made his initial appearance in federal court in San Francisco this morning before the Honorable U.S. Magistrate Judge Thomas S. Hixson. Kannett is currently detained pending further proceedings. His next scheduled appearance is at 10:30 a.m. on October 12, 2020, for status before U.S. Magistrate Judge Thomas S. Hixson.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years, and a fine of $250,000, plus restitution for each violation of Title 18 United States Code § 2252. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Molly A. Smolen is prosecuting the case with the assistance of Senna Milstead. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations.
Dubuque Man Pleads Guilty to Illegally Possessing a Firearm Following New Year’s Day ShootingRead the Press Release
A man who was involved in a shooting in Dubuque, Iowa, during the early morning hours of New Year’s Day pled guilty on August 25, 2020, in federal court in Cedar Rapids.
Katwan Montez Brown, age 27, from Dubuque, Iowa, was convicted of being a felon and domestic abuser in possession of a firearm.
Evidence at a prior hearing showed that Brown handed a pistol to another person after that person had been in an argument in the street during the early morning hours of New Year’s Day 2020. Video evidence showed that, shortly after Brown gave this person the pistol, that person shot multiple times from the doorway of a home, striking one individual. After the shooting, Brown left the house and ran to an alleyway behind it, returning moments later. Dubuque police officers later found a pistol in the alleyway, as well as a cell phone and identification belonging to Brown. Brown’s fingerprints were found on the magazine inside the pistol. Brown had previously been convicted of felony forgery and felony possession with intent to distribute marijuana in 2013 and felony possession of contraband in a correctional facility in 2018. He was also convicted of domestic abuse assault with strangulation and domestic abuse assault causing bodily injury in 2015, and domestic abuse assault causing bodily injury, second offense, in 2017.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Brown remains in custody of the United States Marshal pending sentencing. Brown faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR‑1013‑CJW‑MAR.
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Drug-trafficking gang member sentenced to prison for leading narcotics distribution conspiracyRead the Press Release
SAVANNAH, GA: A Liberty County man who brought kilos of methamphetamine to the community for redistribution has been sentenced to more than 20 years in federal prison.
Stacey White, 33, of Hinesville, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 246 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. White also must serve five years of supervised release after completion of his prison term. There is no parole in the federal system.
“Methamphetamine is a dangerous, highly addictive drug that destroys lives and damages communities, and Stacey White is responsible for distributing it throughout the Southern District,” said U.S. Attorney Christine. “Thanks to the dedicated work of our law enforcement partners, his days of spreading poison are over.”
According to court documents and testimony, starting as early as July 2016 through December 2018, White made multiple trips each month to the Atlanta area to obtain up to two kilograms at a time of methamphetamine from a supplier. He then would return to the Southern District where he recruited other defendants to assist him in selling the drugs.
White, a certified member of the violent Bloods criminal street gang, was arrested along with another conspirator in December 2018 while retrieving stolen methamphetamine in Florida. Of the other five members of the conspiracy who were indicted with White in February 2019, three are serving prison terms after entering guilty pleas, while two are in custody and awaiting trial.
White’s criminal record includes multiple arrests over the past decade, with three prior felony convictions in state court. He was on probation on state charges at the time of his arrest.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The successful results of this investigation should let criminals who flood our communities with methamphetamine know that DEA and its law enforcement partners will not hesitate to use all its resources to destroy their drug distribution networks. These defendants will no longer be able to feed the addicts who struggle with this toxic substance.”
“Illegal drugs and gangs have no place in Georgia,” said GBI Director Vic Reynolds. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations that threaten the safety of our communities.”
This drug-trafficking conspiracy was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and the Liberty County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Jenna Solari.
District Court Enters Permanent Injunction Shutting Down Telecom Carriers Who Facilitated Hundreds of Millions of Fraudulent Robocalls to Victim Consumers in the United StatesRead the Press Release
WASHINGTON – The U.S. District Court for the Eastern District of New York has permanently barred two individuals and two companies that transmitted massive volumes of fraudulent robocalls from operating as intermediate voice-over-internet-protocol (VoIP) carriers conveying telephone calls into the U.S. telephone system, the Department of Justice announced today. The consent decree entered yesterday by United States District Judge Eric R. Komitee resolves a civil complaint brought by the United States Attorney’s Office for the Eastern District of New York and the Department’s Consumer Protection Branch.
As alleged in a civil complaint filed earlier this year, in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of internet based calls every day from other entities, often located abroad. The defendants transmitted those calls first to other carriers within the United States, and ultimately to the phones of individuals, knowing that the calls were fraudulent government and business-imposter robocalls.
Many of the robocalls were made by individuals impersonating government investigators conveying false and alarming messages, such as the victim recipient’s social security number or other personal information had been compromised or otherwise connected to criminal activity, the recipient faced imminent arrest, the recipient’s assets were being frozen, the recipient’s bank and credit accounts had suspect activity, the recipient’s benefits were being stopped, and the recipient faced imminent deportation – each designed to frighten the recipient into paying large sums of money. Often the numbers that appeared as the originating or caller-ID numbers were “spoofed” to make it appear that they originated from legitimate government or business offices in the United States when in fact they were made by overseas scammers, often located in India. The defendants also sold to foreign call centers toll-free and other U.S. numbers that were left in fraudulent robocall messages on victims’ phones to deceive them into believing that the calls were legitimate and originated in the United States. These calls led to significant financial losses to victims throughout the United States and the Eastern District of New York, many of whom were elderly and vulnerable.
“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” stated Acting United States Attorney Seth D. DuCharme.
“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard earned savings,” stated Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “The Department will prosecute both those who place fraudulent robocalls, and those who knowingly facilitate such calls for profit. The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”
“The Court's decision sends a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” stated Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network. I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”
Under the terms of the consent decree entered yesterday, the defendants agreed to be permanently barred from using the U.S. telephone system to deliver prerecorded messages through automatic means, carrying VoIP calls destined for phones in the United States, and providing any U.S. phone numbers to other individuals or entities. In addition, the defendants are permanently barred from serving as employees, agents or consultants to any person or entity engaged in these activities.
This case was handled by Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the United States Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service. Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service. The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
District Court Enters Permanent Injunction Shutting Down Telecom Carriers Who Facilitated Hundreds of Millions of Fraudulent Robocalls to Consumers in the United StatesRead the Press Release
WASHINGTON – The U.S. District Court for the Eastern District of New York entered a consent decree imposing a permanent injunction barring two individuals and two companies that transmitted massive volumes of fraudulent robocalls from conveying any telephone calls into the U.S. telephone system, the Department of Justice announced today.
As alleged in a civil complaint filed earlier this year in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of fraudulent internet-based calls every day from other entities, often located abroad. Those calls were then transmitted, initially to other carriers within the United States and ultimately, to the phones of individuals. The defendants are alleged to have knowingly allowed numerous foreign-based individuals and entities to transmit fraudulent government- and business-imposter robocalls through defendants’ network and on to victims in the United States. These fraudulent robocalls included millions of calls impersonating the Social Security Administration, threatening the recipients of the calls with arrest or asset seizure if they did not immediately transfer funds to the caller. The defendants also sold U.S. telephone numbers to foreign entities, which were used as victim call-back numbers as part of massive robocalling fraud schemes, to give the impression that the fraudsters were located in the United States. These calls led to massive financial losses to elderly and other vulnerable victims throughout the United States.
“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard-earned savings,” said Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “The Department will pursue not only those who place fraudulent robocalls, but also those who knowingly facilitate such calls. The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”
“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” said Acting U.S. Attorney Seth D. DuCharme.
“We are pleased that all five companies named by the Department of Justice in this civil matter are now permanently enjoined from facilitating Social Security scam calls. The facts clearly show these companies, and their owners, knowingly did business with government imposter telephone scammers, resulting in financial and emotional harm to unsuspecting consumers,” said Inspector General Ennis. “I want to thank DOJ’s Consumer Protection Branch, the U.S. Postal Inspection Service, and our other law enforcement partners who provided assistance and support throughout this investigation.”
In a written opinion issued in March of this year, the District Court found that, despite being warned more than 100 times of specific instances of fraudulent calls being transmitted through their network, the defendants never severed their business relationship with any entity they learned was associated with fraudulent call traffic prior to the United States’ filing of its lawsuit. The Court held that “at the very least… defendants’ failure to take meaningful action in response to these complaints demonstrates reckless indifference to the fraud they were enabling. Over time, it became increasingly clear that they knew or should have known the complaints evidenced a widespread pattern of fraudulent calls being transmitted over their network.”
Under the terms of the consent decree entered today by the District Court, the defendants agreed to be permanently barred from, among other things, using the U.S. telephone system to: deliver prerecorded messages through automatic means, carry voice-over internet protocol calls destined for phones in the United States, and not to provide any U.S. phone numbers to other individuals or entities. In addition, the defendants are permanently barred from serving as employees, agents, or consultants to any person or entity engaged in these activities.
This case was handled by Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service. Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service. The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Developer Admits to Working with Bank Executives to Defraud First NBC Bank Out of over $123 MillionRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that GARY R. GIBBS (“GIBBS”), age 66, a resident of Niceville, Florida, pled guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2010 through April 2017, GIBBS had a banking relationship with First NBC Bank, individually and through various corporate entities he controlled. During that time, GIBBS and his entities were regularly unable to pay existing loans or overdrafts on First NBC Bank accounts. Bank President Ashton Ryan Jr., Chief Credit Officer William Burnell, and Executive Vice President Robert Calloway, who were all charged on July 10 in a 46-count indictment, disguised GIBBS’s and his entities’ true financial condition by making new loans to pay GIBBS’s existing loans and to cover his overdrafts. They falsely stated in loan documents that GIBBS was able to pay his loans with cash generated by his businesses, and they hid from the First NBC Bank Board of Directors, auditors, and examiners that GIBBS was only making his existing loan payments by getting new loans from First NBC Bank. Ryan, Burnell, and Calloway hid the fact that they actually made loans to GIBBS to keep him and his entities off of month-end reports to the Board, auditors, and examiners. These month-end reports listed borrowers who were not paying their loans or whose accounts were overdrawn. By keeping GIBBS and his entities off of those reports, Ryan, Burnell, and Calloway were able to hide their scheme to keep lending to GIBBS despite his inability to pay his loans.
When GIBBS told Ryan and Calloway that he was considering filing bankruptcy or not paying his loans, Ryan told GIBBS that First NBC Bank could not afford for GIBBS to default on the loans. After that, Ryan, Burnell, and Calloway continued to make false statements and material omissions in loan documents to hide from the Board, auditors, and examiners that the purpose of the new loans was to keep GIBBS and his entities from defaulting and that, in reality, GIBBS was not able to make his payments to the bank without receiving proceeds from new loans. Neither Ryan nor Calloway ever disclosed to the Board, auditors, or examiners that GIBBS was considering defaulting on his loans or filing bankruptcy, because that would have revealed that GIBBS did not generate enough cash to pay his loans.
To hide their scheme, Ryan directed GIBBS to inflate certain financial statements that GIBBS provided to First NBC Bank, by falsely increasing the income of GIBBS’s entities to hide the amount of money these entities were losing. Ryan did not tell the Board, auditors, or examiners that GIBBS inflated his financial statements at Ryan’s direction. Calloway also made false statements to First NBC Bank’s external auditors about GIBBS and his loans. By the time First NBC Bank failed in April of 2017, GIBBS and his entities owed the bank over $123 million.
“Today’s guilty plea demonstrates the FDIC OIG and our law enforcement partners will not tolerate criminals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Laurie Younger, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. This guilty plea should be a deterrent to others who would attempt to manipulate the nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We are committed to working with our law enforcement partners in holding accountable wrongdoers whose fraudulent actions materially impact financial institutions regulated and supervised by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
GIBBS pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed at sentencing are thirty years in prison; a fine of the greater of twice the gain to GIBBS or twice the loss to any victim; and up to five years of supervised release.
Judge Jane Triche Milazzo set GIBBS’s sentencing for December 2, 2020.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
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Department of Justice Requesting Data from Governors of States that Issued COVID-19 Orders that May Have Resulted in Deaths of Elderly Nursing Home ResidentsRead the Press Release
Today the Justice Department requested COVID-19 data from the governors of states that issued orders which may have resulted in the deaths of thousands of elderly nursing home residents. New York, New Jersey, Pennsylvania, and Michigan required nursing homes to admit COVID-19 patients to their vulnerable populations, often without adequate testing.
For example, on March 25, 2020, New York ordered: “No resident shall be denied re-admission or admission to [a nursing home] solely based on a confirmed or suspected diagnosis of COVID-19. [Nursing homes] are prohibited from requiring a hospitalized resident who is determined medically stable to be tested for COVID-19 prior to admission or readmission.”
“Protecting the rights of some of society’s most vulnerable members, including elderly nursing home residents, is one of our country’s most important obligations,” said Assistant Attorney General for Civil Rights Division Eric Dreiband. “We must ensure they are adequately cared for with dignity and respect and not unnecessarily put at risk.”
According to the Centers for Disease Control, New York has the highest number of COVID-19 deaths in the United States, with 32,592 victims, many of them elderly. New York’s death rate by population is the second highest in the country with 1,680 deaths per million people. New Jersey’s death rate by population is 1,733 deaths per million people – the highest in the nation. In contrast, Texas’s death rate by population is 380 deaths per million people; and Texas has just over 11,000 deaths, though its population is 50 percent larger than New York and has many more recorded cases of COVID-19 – 577,537 cases in Texas versus 430,885 cases in New York. Florida’s COVID-19 death rate is 480 deaths per million; with total deaths of 10,325 and a population slightly larger than New York.
The Department of Justice’s Civil Rights Division is evaluating whether to initiate investigations under the federal “Civil Rights of Institutionalized Persons Act” (CRIPA), which protects the civil rights of persons in state-run nursing homes, among others. The Civil Rights Division seeks to determine if the state orders requiring admission of COVID-19 patients to nursing homes is responsible for the deaths of nursing home residents.
On March 3, 2020, the Attorney General announced the Justice Department’s National Nursing Home Initiative. This is a comprehensive effort by the department, led by the Elder Justice Initiative and in strong partnership with the U.S. Department of Health and Human Services that uses every available tool to pursue nursing homes that provide substandard care to their residents. As announced on April 10, 2020, the department is also investigating the Soldiers’ Home in Holyoke, Massachusetts, where COVID-19 has taken the lives of at least 76 residents. https://www.justice.gov/opa/pr/federal-investigation-conditions-nursing-home-veterans-massachusetts-announced
The data requests and Soldiers’ Home investigation are not accusations of fault or wrongdoing by the states or any other individual or entity, and the department has not reached any conclusions about these matters.
Department of Justice Announces Rules Furthering Lawfulness and Transparency in the Regulatory ProcessRead the Press Release
The Department of Justice has taken another significant step today to ensure that its regulatory activity is performed lawfully and transparently, announcing a pair of interim final rules imposing procedural requirements on the Department’s issuance and modification of guidance documents. The rules also codify preexisting Department guidance practices and implement the interagency reforms of Executive Order 13891, Promoting the Rule of Law Through Improved Agency Guidance Documents (EO 13891). More than just carrying out the Department’s obligations under EO 13891, these rules implement innovative new internal accountability mechanisms, such as requiring Department entities to comply with the rule’s procedural requirements in order to claim judicial deference to interpretations contained in guidance documents.
The first rule, “Prohibition on the Issuance of Improper Guidance Documents Within the Justice Department,” codifies the general prohibition on the use of guidance documents to create rights or impose obligations on persons outside of the executive branch, originally set forth in the Department’s 2017 “Sessions Memo.” The Department’s issuance of the Sessions Memo was one of the administration’s first actions to curb the use of guidance documents as a backdoor tool to reading new expansive, substantive regulatory obligations into policy documents outside of the established procedural requirements set forth in the Administrative Procedure Act (APA). Similar, and expanded, limitations were subsequently imposed administration-wide in 2019 through EO 13891.
The second rule, “Processes and Procedures for Issuance and Use of Guidance Documents,” codifies Department limitations, first generally set forth in the 2018 “Brand Memo,” on the use of guidance documents in criminal and civil enforcement actions and implements robust Department-wide procedures governing the review, clearance, and issuance of guidance documents. The rule also creates a process for the public to petition the Department to withdraw or modify existing guidance documents. In addition, under the rule, Department components must post every currently effective guidance document on the Department’s public Guidance Portal.
“Some guidance can be helpful to regulated parties, but backdoor regulation by guidance document is improper,” Deputy Attorney General Jeffrey A. Rosen said. “With these new rules, the Department of Justice has formalized its procedures for ensuring that guidance documents will not be used to impose novel legal requirements as a shortcut around the rulemaking process.”
Beth A. Williams, Assistant Attorney General for the Office of Legal Policy, praised the benefits the rules will have for the public: “The new rules accomplish an unprecedented degree of transparency and public involvement in the Department’s guidance document processes. For the first time, the public will have a robust process available to petition the government to withdraw or modify a guidance document that may be outdated or raise other concerns.”
The Department of Justice is committed to regulatory reform that enhances good government. Earlier this month, the Department published a landmark report on the need to modernize agency procedures to increase accountability and transparency through amendment of the APA, enacted in 1946 and not substantially updated since that time. The report incorporates proposals raised by government officials, members of the private sector, and legal academics at DOJ’s December 2019 APA reform summit. The report’s submission to congressional members and committees provided a formal Department recommendation that Congress pursue legislative APA reform, building on Administration efforts such as EO 13891 to improve government responsiveness in the evaluation of regulations. The report is available here.
Cuban fugitive facing drug charges caught after allegedly trying to flee US by boatRead the Press Release
CORPUS CHRISTI, Texas – A Cuban national has made another appearance in federal court following the return of a superseding indictment related to the distribution of cocaine, announced U.S. Attorney Ryan K. Patrick.
Osvaldo Iglesias Ruiz, 34, is charged with one count of possession with intent to distribute more than 10 kilograms of cocaine.
Ruiz was originally charged by criminal complaint in March. He made an initial appearance on those charges, but was granted release upon posting bond. Shortly thereafter, authorities caught him as he was allegedly attempting to flee the United States in a boat off the coast of Florida heading towards Cuba. He appeared in court today and ordered into custody pending further criminal proceedings.
According to the criminal complaint, on March 14, Ruiz approached the Javier Vega Jr. checkpoint in Sarita traveling northbound. He was allegedly driving a tractor-trailer, but without an attached trailer. The complaint alleges he provided authorities inconsistent answers pertaining to the direction he was traveling. A K-9 also alerted to the rear differential of the vehicle, according to the charges.
He was then referred to secondary inspection where authorities allegedly discovered multiple cocaine bundles weighing more than 10 kilograms.
The drugs have an estimated street value of $250,000.
If convicted, Ruiz faces up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection, U.S. Marshals Service and U.S. Coast Guard. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Covington Man Charged with Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that PENH KANG (“KANG”), age 41, of Covington, Louisiana, was charged by a bill of information on August 25, 2020 with Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to the bill of information, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Penh Kang, No.17-12431, by submitting a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions, in that KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, KANG faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Corrupt Judge’s Request for Resentencing DeniedRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 24, 2020, U.S. District Court Judge Christopher C. Conner upheld the 28-year sentence imposed in 2011 of the former President Judge of the Luzerne County Court of Common Pleas, Mark A. Ciavarella, age 70, for accepting millions in bribes and kickbacks from the owner of privately held juvenile detention facility.
According to U.S. Attorney David J. Freed, Ciavarella was convicted after an 11-day jury trial in February 2011 and in August 2011, the late U.S. District Court Judge Edwin M. Kosik sentenced Ciavarella to 28 years’ imprisonment. Yesterday’s decision upheld that sentence.
After his conviction was affirmed on appeal, Ciavarella claimed that his trial attorneys were ineffective because they should have argued to the jury that some of the crimes he was convicted for were barred by the statute of limitations. The case was reassigned to U.S. District Court Judge Christopher C. Conner to decide if Ciavarella’s attorneys were ineffective.
Judge Conner found Ciavarella’s attorneys were ineffective and vacated certain counts of conviction, including the charges of racketeering conspiracy and money laundering conspiracy. Ciavarella then claimed he was entitled to be resentenced on the remaining convictions.
Yesterday’s opinion by Judge Conner held that resentencing was not required and the original 28 year sentence would remain in place.
“This decision reinforces this office’s long standing commitment to bring justice to those victimized by these corrupt state judges,” said U.S. Attorney Freed. “They betrayed their community and deserve the substantial punishments they received.”
Ciavarella and his co-defendant, Michael Conahan, who also served as President Judge of the Court of Common Pleas of Luzerne County, were initially charged in January 2009. The charges were the result of a federal investigation of alleged corruption in the Luzerne County court system. The inquiry began in 2007 and expanded to include county government offices, state legislators, school districts and contractors in Northeastern Pennsylvania. Conahan pleaded guilty to racketeering conspiracy in April 2010 and is serving a 17-year sentence. Conahan was recently released from federal custody to home confinement due to the COVID-19 pandemic.
The judicial scandal, described as the worst in Pennsylvania's history, and the federal prosecutions have had major consequences: Ciavarella and Conahan resigned from the bench in 2009. The Supreme Court of Pennsylvania vacated thousands of juvenile convictions in Luzerne County as a result of Ciavarella's conduct as a Juvenile Court Judge. A State Interbranch Commission on Juvenile Justice recommended changes aimed at safeguarding the constitutional rights of juveniles and improving the oversight and disciplinary process for judges in Pennsylvania. In June 2011, a committee of the American Bar Association reviewed and made recommendations to improve procedures in the state's Judicial Conduct Board. A procedure was established in Luzerne County for compensation of victims of the activities of Ciavarella and Conahan.
Ciavarella is scheduled to be released from federal prison in 2035.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation.
The post-trial litigation was handled by Assistant United States Attorneys Carlo Marchioli, William S. Houser and Michael A. Consiglio.
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Convicted Terrorist on Supervised Release Indicted by Federal Grand Jury on Charges of Selling Pounds of MethamphetamineRead the Press Release
RIVERSIDE, California – A federal grand jury today indicted an Orange County man for allegedly selling pound quantities of methamphetamine while he was on supervised release following a 2009 terrorism conviction.
Ahmed Binyamin Alasiri, also known as Kevin Lamar James, a 44-year-old Garden Grove resident, was charged in an indictment with two counts of distribution of methamphetamine.
Alasiri was arrested in this case on August 21, pursuant to a criminal complaint that accused him of narcotics trafficking. At a hearing on August 24, he was ordered detained pending the outcome of the case.
According to court documents, on July 24, Alasiri sold approximately one pound of methamphetamine – which later was determined to be 96 percent pure – to a buyer for $3,700. On August 6, Alasiri allegedly again sold one pound of methamphetamine to the same buyer for $3,700. Laboratory analysis of the second purchase showed that the methamphetamine was 98 percent pure.
Alasiri is currently on supervised release after completing a 16-year federal prison sentence for conspiracy to levy war against the United States through terrorism. Alasiri’s co-conspirators committed numerous armed robberies of gas stations to raise money for attacks Alasari had planned on U.S. military operations and Israeli and Jewish facilities in Southern California. Alasiri completed his prison sentence in September 2019.
Alasiri is scheduled to be arraigned on the indictment on September 14.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each count of distribution of methamphetamine carries a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
This case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF) in Orange County, with assistance from the following JTTF agencies and other partners: the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the United States Probation Office, the United States Bureau of Prisons, the California Department of Corrections and Rehabilitation, the Garden Grove Police Department, the Drug Enforcement Administration, the Orange County Sheriff’s Department, the California Highway Patrol, the United States Department of Defense, and the Orange County Intelligence Assessment Center.
This case is being prosecuted by Assistant United States Attorney Dennise D. Willett of the Terrorism and Export Crimes Section.
Centralia Man Sentenced to 14 Years for Trafficking Heroin and Meth, Gun PossessionRead the Press Release
David Herron, 49, of Centralia, Illinois, has been sentenced to 14 years in federal prison for
trafficking heroin and methamphetamine and a concurrent 10-year prison term for unlawful gun
possession. Herron entered a guilty plea last September to a three-count indictment charging him
with participating in a drug trafficking conspiracy, possession with intent to distribute
methamphetamine, and unlawful possession of a firearm by a convicted felon. The charged conspiracy
took place from March 12, 2018, to April 24, 2019, in Centralia.In handing down the sentence, Chief United States District Judge Nancy J. Rosenstengel observed
that a majority of the court’s criminal docket now comes from Centralia.The case arose after an FBI task force investigated Herron’s narcotics trafficking activities for
several months in early 2019. During that time, Herron was on bond for two separate drug- related
cases in Marion County. Herron sold methamphetamine and heroin from a Centralia residence on North
Elm and from a mobile home on North Sycamore. On April 24, 2019, task force members arrested Herron
as he left his home on Hardin Street and found him in possession of methamphetamine and heroin
packaged for sale. A search of his home revealed over 200 grams of 98% pure methamphetamine and a
loaded gun. Herron has a prior felony conviction that prohibits him from knowingly possessing a
firearm or ammunition.Herron has been in custody since his arrest. As part of his sentence, he was ordered to serve a
five-year term of supervised release and pay a $600 fine. Several of Herron’s alleged co-
conspirators were charged in a separate case. Danny Lee DeShane, 45, was sentenced in June to 54
months imprisonment. Earlier this month, Curtis Phelps, 38, was sentenced to 10 years imprisonment
for his role in the conspiracy. A third man, Cloyd “Rick” Culver, 69, has pleaded not guilty but is
scheduled for a change of plea hearing tomorrow.The FBI’s task force continues its investigation into drug trafficking and related activities in
the Marion-Clinton-Washington County areas. Law enforcement agencies participating in the task
force include the Centralia Police Department, the Carlyle Police Department, and the Marion,
Clinton, and Washington County Sheriffs’ Offices.
Career Criminal from Philadelphia Sentenced to over Six Years in Prison for Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Saunders, 34, of Philadelphia, PA, was sentenced to over six years in prison (80 months), and three years of supervised release by United States District Court Judge John M. Younge for illegally possessing a firearm as a felon. Saunders was also on Pennsylvania state parole at the time of the offense.
The defendant pleaded guilty in March 2020 to one count of possession of a firearm by a convicted felon. During his plea hearing, Saunders admitted that he carried a firearm with an obliterated serial number and fled from Philadelphia police officers while carrying the gun on July 18, 2019. During that foot chase in the Logan neighborhood, Saunders grabbed the firearm from his waistband and pointed it at the pursuing officers before falling to the ground, after which police recovered the weapon.
According to court documents, Saunders was previously convicted of numerous felony offenses in the Philadelphia County Court of Common Pleas, including violations of the Uniform Firearms Act in 2005 and 2011 and possession with intent to distribute a controlled substance in 2010. Further, in 2004, the defendant was arrested for carrying a firearm without a license and endangering the welfare of a child. In that case, Saunders not only illegally possessed a gun, but also shot his two-year-old daughter with it. After pleading guilty, the defendant was sentenced to two to five years in Pennsylvania state prison.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is running rampant,” said U.S. Attorney McSwain. “Saunders has been living a life of crime for the better part of twenty years now, and has repeatedly demonstrated his disrespect for the law. The answer to Philadelphia’s violent crime crisis is to get criminals like Sanders off of the streets, which is exactly what the U.S. Attorney’s Office is focused on.”
“As a convicted felon in possession of a firearm, Kenneth Saunders presented a real danger to the community and to law enforcement officers alike,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “Despite being prohibited from possessing a firearm, he was armed when encountered by law enforcement. The federal prosecution of this crime demonstrates ATF’s dedication to working alongside our local, state and federal partners, in this case the Philadelphia Police Department and the U.S. Attorney’s Office, to ensure violent individuals like Saunders are deprived of the ability to terrorize our community.”
“It is going to take an aligned and sustained collaborative effort with all of our law enforcement partners in order to combat the crisis of violence in our neighborhoods,” said Philadelphia Police Commissioner Danielle Outlaw. “Individuals like Mr. Saunders need to know that illegally carrying weapons on our streets will have serious and consistent consequences. I would like to thank our federal partners for helping us work towards our common goal of making our communities safer places to live and work.”
The case was investigated by the Bureau of Alcohol, Tobacco, Fire Arms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Capital Region Gang Member Sentenced to over 16 Years in Prison for Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Darrell Chapman, also known as “Bishop” and “Sly Foxx,” age 40, was sentenced today to 198 months in prison for narcotics and gun offenses.
The announcement was made by United States Attorney Grant C. Jaquith, New York State Police Superintendent Keith Corlett, and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chapman is a self-described founder of the East Bishop Family, a set of the Bloods operating in the Capital Region. In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area. In addition to Albany, Chapman’s drug-distribution operations reached as far as Rochester, New York, and to Pennsylvania.
In the early-morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin. Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer. In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales. Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition. Chapman admitted he used the guns to protect his drugs and drug proceeds.
In 1997 and 1998, Chapman was convicted in state court of robbery, attempted robbery, and criminal sale of a controlled substance, and was on parole at the time of his arrest on October 18, 2017.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 5-year term of supervised release, to begin after Chapman is released from prison. The terms of Chapman’s supervise release prohibit him from associating with any member, associate, or prospect of the Bloods, or any other criminal gang, club, or organization.
This case was investigated by the New York State Police and FBI, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Camden County Man Admits Role in Government Benefits Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden, New Jersey, man today admitted his role in a scheme that netted tens of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.
Jose Garcia, 53, pleaded guilty by videoconference before U.S. District Court Judge Renée Marie Bumb to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP).
Garcia and his co-defendants, Luciano Estevez, 51, also of Camden; Octavio Rodriguez, 51, of Pennsauken, New Jersey; and Juan Melo, 57, of Woodlynne, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP. Estevez, Rodriguez, and Melo all previously pleaded guilty to participating in the conspiracy and defrauding SNAP.
SNAP, formerly known as the food stamp program, is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
According to documents filed in this case and statements made in court:
Garcia, Estevez, Rodriguez, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were often then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of tens of thousands of dollars in government funds.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania. to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Through this terminal, the scheme netted an additional approximately $110,000 in SNAP funds.
The conspiracy count to which Garcia pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The SNAP fraud offense to which Garcia pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Garcia’s sentencing is scheduled for Jan. 4, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture-Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the FBI Philadelphia Field Office, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the Camden County Police Department, under the direction of Chief of Police Joseph D. Wysocki, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.
California Man to Federal Prison for Violating Federal Firearms Law While in IowaRead the Press Release
A man who was prohibited from possessing a gun was sentenced on August 25, 2020, to 7 years in federal prison.
Meher Aboolian, 32, from Glendale, California, pled guilty on March 17, 2020, to possession of a firearm by a prohibited person. Aboolian was previously convicted of crimes which prohibited him from possessing guns. These crimes included Burglary, False Checks, and Felony Possession of a Controlled Substance for Sale.
At the plea and sentencing hearings, evidence showed that on November 3, 2019, the vehicle Aboolian was driving was stopped by law enforcement. During a search of Aboolian, officers found drug paraphernalia and pills, which Aboolian admitted he did not have a prescription for, concealed under his hat. A search of the vehicle revealed additional drug paraphernalia, and items to mask the smell of illegal drugs. Officers also located a stolen gun, namely a Smith & Wesson Model 669, 9mm pistol, with no visible serial number, and a loaded magazine.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Aboolian was sentenced to 84 months’ imprisonment. He must also serve a term of 3 years of supervised release following imprisonment. There is no parole in the federal system. Aboolian is being held in the US Marshals custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4003.
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