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5 October 2020
Long Island Man Sentenced to 20 Years’ Imprisonment for RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Terrill Latney, an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise based in Riverhead, New York, was sentenced by United States District Judge Joanna Seybert to 20 years’ imprisonment for racketeering, including the predicate acts of conspiring to distribute narcotics and participating in the murder of Thomas Lacolla while attempting to kill a rival of the gang. Latney pled guilty in February 2020.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, justice has been served for years of drug dealing, violence and murder, which wreaked havoc in Riverhead and the surrounding area,” stated Acting United States Attorney DuCharme. “This outcome brings a measure of closure to the victims and stands for the principle that we remain ever-committed to dismantling violent street gangs on Long Island and restoring safety and the rule of law to every community.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, and the Suffolk County East End Drug Task Force.
As detailed in the government’s court filings and admitted at the guilty plea proceeding, Latney participated in the distribution of large quantities of crack cocaine, cocaine and heroin in and around Riverhead over the course of nearly a decade. In addition, on November 17, 2015, Latney assisted members of the Bloods in their attempt to kill a rival gang member which resulted in the shooting death of that rival’s friend, Thomas Lacolla. Latney drove three Bloods members to a location in Riverhead where they fired more than 39 shots into a vehicle they believed was occupied by their intended target, but instead shot Lacolla, instantly killing him.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
Defendant:
TERRILL LATNEY (also known as “Motis” and “Mo”)
Age: 40
Mastic Beach, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Kenner Woman Sentenced for Acquiring Oxycodone IllegallyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that BENNIE RUTH HARRIS, age 65, of Kenner, Louisiana, was sentenced by the Honorable Judge Lance M. Africk on September 30, 2020 to two years of probation following her plea to acquiring oxycodone by fraud.
HARRIS was one of ten defendants involved in a conspiracy to use forged prescriptions to illegally acquire oxycodone. According to court documents, HARRIS presented a forged prescription for a large amount of oxycodone to a local pharmacy. The other nine defendants involved in this offense also pleaded guilty and were sentenced.
U.S. Attorney Strasser praised the work of agents with the Department of Health and Human Services Office of Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier and attorneys with the Department of Justice Health Care Fraud Strike Force, with previous co-counsel including Assistant United States Attorney Jared L. Hasten of the Northern District of Illinois.
Justice Department Settles with Minnesota-Based Company to Resolve Discrimination Claims Under the Immigration and Nationality ActRead the Press Release
The Department of Justice announced today that it reached a settlement with WinCraft, Incorporated (WinCraft), a Minnesota-based sports manufacturing company with locations in Iowa, Florida, and Washington. The settlement resolves claims that WinCraft violated the Immigration and Nationality Act (INA) by requiring lawful permanent residents to provide specific work authorization documentation without any legal justification because of their immigration status.
“Companies large and small must abide by the Immigration and Nationality Act’s (INA) requirements not to discriminate,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that WinCraft will work with the Department of Justice to ensure that its policies and practices comply with the INA’s requirements applicable to workers with the legal right to work in the United States.”
Based on its investigation, the department concluded that WinCraft required unnecessary and specific documents from lawful permanent residents, such as requiring these workers to show their Permanent Resident Cards (sometimes known as “green cards”), to prove their work authorization. Additionally, according to the department, WinCraft required that lawful permanent residents show updated proof of their work authorization when their Permanent Resident Cards expired, even though federal rules prohibit such practice and these workers continued to be authorized to work based on their status as lawful permanent residents.
Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status, or national origin.
Under the terms of the settlement, WinCraft will pay to the United States a civil penalty of $5,400, train its employees on the requirements of the INA’s anti-discriminatory provision (including through a training assessment and Civil Rights Division’s Immigrant and Employee Rights Section (IER) webinar), and be subject to departmental monitoring to review compliance with the settlement.
The Civil Rights Division’s IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Awards over $77 Million to Improve Public Safety and Serve Crime Victims in Alaska Native CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that within the last 4 months, the Department of Justice has awarded over $77 million in grants in Alaska. Many of those grants were awarded to Alaska Native communities and tribal organizations to improve public safety, serve victims of crime, combat violence against women, and support youth programs.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
“The Department of Justice’s grant announcements shows the Department’s understanding of the challenging public safety issues facing Alaska, particularly the rural parts of the state. The grant funds distributed to rural Alaska also demonstrate Attorney General Barr’s continued commitment to Alaska native communities,” said U. S. Attorney Schroder.
Alaska received a significant share of this nationwide grant funding. Alaska Native communities and other tribal designees received over $34.5 million through the Tribal Victim Set Aside Program and $13.5 million through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Notably, the Department of Justice awarded:
- Aleutian Pribilof Islands Association, Inc. $3,880,000
- Alaska Native Justice Center $2,878,987
- Central Council Tlingit and Haida Indian Tribes of Alaska $2,984,129
- Fairbanks Native Association $1,314,033
- Kawerak, Inc. $1,229,928
- Ketchikan Indian Community was awarded $1,186,770
- Maniilaq Association $3,683,871
- Sitka Tribe of Alaska $1.453,513
- Tanana Chiefs Conference $3,682,829
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs. On September 30, 2020, DOJ awarded public safety and community policing grants to the following organizations, adding 18 additional officers to rural Alaska:
Grantee
Award Amount
Officers Funded
Asa'carsarmiut Tribal Council
$387,415
1
Koyukuk Native Village
$437,628
1
Manokotak Village Council
$362,390
1
Native Village of Fort Yukon
$390,820
1
Native Village of Kwinhagak
$306,123
1
Native Village of Napakiak
$453,859
2
Native Village of Nunapitchuk
$465,365
2
Native Village of Shageluk
$413,426
1
Native Village of Tununak
$456,216
2
Nunakauyarmiut Tribe
$500,950
2
Tanana Chiefs Conference
$683,372
1
Tetlin Tribal Council
$499,043
1
Village of Chefornak
$486,503
2
FY20 COPS Hiring Program (CHP) Award: $2.1 Million
On June 2, 2020, funding in the amount of $2,100,476 was awarded to multiple law enforcement agencies in Alaska, which allows those agencies to hire a combined total of 19 officers to help keep our communities safe. Out of the 19 officers, 18 will be located in rural Alaska. Specifically, 14 officers will be certified Alaska Police Officers, three will be certified VPSOs, and two will be TPOs. This was part of DOJ’s announcement awarding nearly $400 million in grant funding nationwide through the COPS Hiring Program (CHP).
Grantee
Award Amount
Officers Funded
Akiak Native Community
$214,956
2
Bethel Police Department
$125,000
1
City of Chevak
$491,234
6
City of Marshall
$403,688
3
Fort Yukon Police Department
$240,598
2
Nome Police Department
$125,000
1
Northwest Arctic Borough
$375,000
3
Palmer Police Department
$125,000
1
Funding to Alaska also included:
- $8.1 million in sexual assault, domestic violence, dating violence and stalking program grants
- $5.3 million in awards for Coronavirus emergency supplemental funding
- $4.5 million in VOCA awards
- $2.8 million to the State of Alaska for training and technical assistance, violence against women programming, sex offender registration, juvenile justice and corrections
- $2.3 million in reentry and recidivism reduction grants
- $1.7 million in Human Trafficking victim services grants
- Nearly $1 million for enhancing victim services for elder fraud and abuse
For more information on the Coordinated Tribal Assistance Solicitation (“CTAS”) read the fact sheet here: A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
Additional information about FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data Webpage
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
John McAfee Indicted for Tax EvasionRead the Press Release
An indictment was unsealed today charging John David McAfee with tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. The June 15, 2020 indictment was unsealed following McAfee’s arrest in Spain where he is pending extradition.
According to the indictment, John McAfee earned millions in income from promoting cryptocurrencies, consulting work, speaking engagements, and selling the rights to his life story for a documentary. From 2014 to 2018, McAfee allegedly failed to file tax returns, despite receiving considerable income from these sources. The indictment does not allege that during these years McAfee received any income or had any connection with the anti-virus company bearing his name.
According to the indictment, McAfee allegedly evaded his tax liability by directing his income to be paid into bank accounts and cryptocurrency exchange accounts in the names of nominees. The indictment further alleges McAfee attempted to evade the IRS by concealing assets, including real property, a vehicle, and a yacht, in the names of others.
If convicted, McAfee faces a maximum sentence of five years in prison on each count of tax evasion and a maximum sentence of one year in prison on each count of willful failure to file a tax return. McAfee also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone of the Tax Division and Assistant U.S. Attorneys Matthew Wilson and Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Illinois Man Sentenced to 37 Months in Prison for Conspiracy to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – A Illinois man was sentenced today to 37 months in prison for conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.
In addition to the prison term, Judge Wigenton sentenced Maldonado to two years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s sentencing.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Huntington Man Pleads Guilty to Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man has pled guilty to a drug crime, announced United States Attorney Mike Stuart. Terry Alan Blackmon, Jr., 34, pled guilty to one count of distribution of heroin.
“The cooperative efforts of federal, state and local law enforcement have snared another heroin dealer in Huntington,” said United States Attorney Mike Stuart. “We’re working together to rid our communities of dangerous drug dealers and to keep our families safe.”
Blackmon admitted that on September 24, 2019, he distributed approximately 2 grams of heroin to a confidential informant at a residence located on 6th Street in Huntington.
Blackmon faces up to 20 years in prison when sentenced on January 19, 2021.
The Federal Bureau of Investigation’s (FBI’s) Southern West Virginia Transnational Organized Crime (TOC) West Task Force, the FBI, the Cabell County Sheriff’s Office, and the West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00290.
Follow us on Twitter: SDWVNews and USAttyStuart
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Hudson Man Sentenced for Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that a Hudson, South Dakota, man convicted of Wire Fraud was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Christopher Day, age 31, was sentenced to 5 years of probation, restitution in the amount of $319,041.86 to Pedersen Machine, Inc., and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Day was indicted by a federal grand jury on February 4, 2020. He pled guilty on June 17, 2020.
The conviction stemmed from incidents starting in 2015 until 2019, when Day, who was employed by Pedersen Machine, Inc., engaged in a scheme to steal tractor parts belonging to his employer, and selling them online.
Day would order the parts for himself but would not pay for them. Instead, he would make it appear that the parts were ordered on behalf of Pedersen Machine’s customers. When the parts arrived, he would take the parts home and canceled the orders on Pedersen Machine’s computer system so the legitimate customer did not receive an invoice. He would then sell the parts online from his home and convert the profits to his own use.
This case was investigated by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Gaithersburg Sex Offender Pleads Guilty to the Federal Charge of Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Bruce Ralph Sturtz, age 73, of Gaithersburg, Maryland, pleaded guilty today to the federal charge of possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Sturtz’s plea agreement, on February 26, 2017, a Maryland State Police (“MSP”) investigator conducted an online investigation of Sturtz after three separate law enforcement officers working through the Internet Crimes Against Children Task Force (“ICAC”) downloaded child pornography videos from a device at an IP address assigned to Sturtz’s residence. The investigator found that Sturtz’s computer was running software that allowed other users to download a video that had previously been identified as child pornography. The investigator downloaded and viewed the video, which documented the sexual abuse of a prepubescent female.
Less than a month later, on March 23 and March 24, 2017, investigators conducting online investigations for offenders sharing child pornography directed their focus to the Sturtz device because it was running the same computer software. The investigators downloaded and viewed videos shared by the Sturtz device, which contained images of prepubescent females engaged in sexually explicit conduct, including bondage and bestiality.
On October 25, 2017, a federal search warrant was executed on Sturtz’s residence. At the time the search warrant was executed, Sturtz was downloading child pornography onto his computer. Law enforcement seized a number of electronic devices. A subsequent forensic analysis of the seized electronic devices revealed at least 1,356 videos and 16 pictures depicting child pornography. The videos and images found on the seized electronic devices included child pornography of babies and toddlers, other children under 12 years of age, including incest, bondage, bestiality, and sexual acts between adults and victim children. Forensic analysts were also able to identify on the seized electronic devices the three video files that were downloaded by investigators from Sturtz’s device.
Sturz has previously been convicted of a sex offense involving a minor. On October 6, 2000, Sturtz pled guilty to a third-degree sex offense in the Circuit Court for Montgomery County, Maryland and was later sentenced to 10 years in prison, with all but eighteen months suspended, plus five years of probation.
The Government plans to argue at Sturtz’s sentencing that Sturtz faces a mandatory minimum sentence of 10 years in prison for the possession of child pornography subsequent to sustaining a prior state conviction relating to sexual abuse or abusive sexual conduct involving a minor.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, and the Maryland State Police Internet Crimes Against Children Task Force for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and Joseph R. Baldwin, who are prosecuting the federal case.
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Former Stockton Resident Sentenced to More Than 15 Years in Prison for Human Trafficking Convictions Related to Forced Labor of Foreign NationalsRead the Press Release
SACRAMENTO, Calif. — Sharmistha Barai, 40, formerly of Stockton, was sentenced on Friday, Oct. 2 to 15 years and eight months in prison for forced labor violations. In addition, U.S. District Judge Morrison C. England Jr. ordered more than $15,000 in restitution to the victims.
On March 14, 2019, after an 11-day trial, a federal jury found Barai and her husband Satish Kartan guilty of conspiracy to obtain forced labor and two counts of obtaining forced labor. Kartan is scheduled to be sentenced on Oct. 22.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; U.S. Attorney McGregor W. Scott; Matthew Perlman, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), San Francisco Field Office; Sean Ragan, Special Agent in Charge of the FBI Sacramento Field Office; and Tatum King, Special Agent in Charge, Homeland Security Investigations for San Francisco and Northern California made the announcement.
“The United States abolished slavery and involuntary servitude more than 150 years ago. Yet, inhuman forced labor and deprivations of liberty and dignity persist because human traffickers are modern-day slave masters who endeavor to exploit their fellow human beings for profit and other gruesome purposes. The sentence imposed today sends a strong message that human trafficking and forced labor will not be tolerated in the United States. The defendant’s role in this scheme to compel the victims into servitude for up to 18 hours a day, with minimal pay, through intimidation, threats, and violence, is an unconscionable violation of the victims’ individual rights, freedom, and dignity. The Civil Rights Division remains committed to relentlessly pursuing justice on behalf of victims of human trafficking and holding perpetrators accountable to the fullest extent of the law,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
U.S. Attorney Scott stated: “The defendants’ horrendous conduct, done in the privacy of their home, was publically exposed during the trial. One by one the victims told their stories of the brutality they experienced: long hours of labor, inadequate food, and physical assault. Today’s sentence sends a clear message to others that systematic brutality against vulnerable victims will not be tolerated.”
“This sentencing sends a strong message: DSS is committed to ensuring that those who exploit and traffic individuals for personal gain will face severe consequences for their criminal actions,” said SAC Perlman of the Diplomatic Security Service, San Francisco Field Office.
“No human being should be lured into servitude with promises of employment. This form of human trafficking is heart wrenching: victims are often assaulted and live their lives in fear behind closed doors where escape seems all but impossible,” said SAC Ragan of the FBI Sacramento Field Office. “The FBI will stand with our law enforcement partners to investigate reports of human trafficking and ensure victims receive the services they need.”
“This sentencing is a success in the fight against the heinous crime of human trafficking in our region and our dedication to bring these criminals to justice,” announced Tatum King, Special Agent in Charge Homeland Security Investigations (HSI) NorCal. “We are grateful to our law enforcement partners for their unwavering efforts not only in this investigation, but in our continued fight to disrupt and dismantle human trafficking networks worldwide. We also are appreciative of the critical work that Community Based Organizations provide in bringing these heinous violations to light as well as the critical resources they provide to victims to assist in their recovery.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims about the wages and conditions of employment. Once the workers arrived at the defendants’ Stockton residence, Kartan and Barai compelled them to work up to 18 hours a day with limited rest and nourishment. Few of them were paid any wage. The defendants kept the domestic workers from leaving and coerced them to continue working by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim resisted or expressed a desire to leave, the threats and abuse became worse.
This case is the product of an investigation by Homeland Security Investigations (HSI), the FBI, and the State Department’s Diplomatic Security Service. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon prosecuted the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Resident of Stockton, California Sentenced to More Than 15 Years in Prison for Human Trafficking Convictions Related to Forced Labor of Foreign NationalsRead the Press Release
Sharmistha Barai, 40, formerly of Stockton, California, was sentenced Friday, Oct. 2 to 15 years and eight months in prison for forced labor violations.
On March 14, 2019, after an 11-day trial, a federal jury found Barai and her husband Satish Kartan guilty of conspiracy to obtain forced labor and two counts of obtaining forced labor. Kartan is scheduled to be sentenced on Oct. 22.
“The United States abolished slavery and involuntary servitude more than 150 years ago,” said Assistant Attorney General Eric Dreiband. “Yet, inhuman forced labor and deprivations of liberty and dignity persist because human traffickers are modern-day slave masters who endeavor to exploit their fellow human beings for profit and other gruesome purposes. The sentence imposed today sends a strong message that human trafficking and forced labor will not be tolerated in the United States. The defendant’s role in this scheme to compel the victims into servitude for up to 18 hours a day, with minimal pay, through intimidation, threats, and violence, is an unconscionable violation of the victims’ individual rights, freedom, and dignity. The Civil Rights Division remains committed to relentlessly pursuing justice on behalf of victims of human trafficking and holding perpetrators accountable to the fullest extent of the law.”
“The defendants’ horrendous conduct, done in the privacy of their home, was publicly exposed during the trial,” said U.S. Attorney McGregor W. Scott of the Eastern District of California. “One by one the victims told their stories of the brutality they experienced: long hours of labor, inadequate food, and physical assault. Today’s sentence sends a clear message to others that systematic brutality against vulnerable victims will not be tolerated.”
“This sentencing sends a strong message: DSS is committed to ensuring that those who exploit and traffic individuals for personal gain will face severe consequences for their criminal actions,” said Special Agent in Charge (SAC) Matthew Perlman of the Diplomatic Security Service (DSS), San Francisco Field Office.
“No human being should be lured into servitude with promises of employment. This form of human trafficking is heart wrenching: victims are often assaulted and live their lives in fear behind closed doors where escape seems all but impossible,” said SAC Sean Ragan of the FBI Sacramento Field Office. “The FBI will stand with our law enforcement partners to investigate reports of human trafficking and ensure victims receive the services they need.”
“This investigation is just another unfortunate example of cruel and inhumane crimes, like labor trafficking, being committed by some of the worst violators our society has to offer. Though justice has been served, this sentence still pales in comparison to the lifelong emotional trauma the victims of these crimes are forced to live with,” said SAC Tatum King of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) of San Francisco. “Homeland Security Investigations agents globally remain committed to prioritizing, identifying, rescuing and providing services and benefits to victims of crime regardless of citizenship and continue to demonstrate a laser focus to bringing criminals to justice.”
According to court documents and evidence presented at trial, between February 2014 and October 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their home in Stockton. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims about the wages and conditions of employment. Once the workers arrived at the defendants’ Stockton residence, Kartan and Barai compelled them to work up to 18 hours a day limited rest and nourishment. Few of them were paid any wage. The defendants kept the domestic workers from leaving and coerced them to continue working by threatening them, by creating an atmosphere of fear, control, and disempowerment, and at times by physically hitting or burning them. When a victim resisted or expressed a desire to leave, the threats and abuse became worse.
This case is the product of an investigation by HSI, the FBI, and the State Department’s DSS. The Stockton Police Department provided the initial investigation and later assistance with victim services. Assistant U.S. Attorneys Jason Hitt and Katherine Lydon prosecuted the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Former Program Manager of Twin Cities Nonprofit Sentenced to Prison for Fraud, False StatementsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CLARISSA LYNN COMBS, 49, to 71 months in prison for conspiring to commit wire fraud and making a false statement. COMBS, who pleaded guilty on December 4, 2019, was sentenced today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. A total of 12 defendants have pleaded guilty and been sentenced for their roles in the conspiracy.
“Ms. Combs orchestrated a years-long fraud scheme that diverted hundreds of thousands of dollars from some of the most vulnerable members of society, including individuals and families in need of housing. I applaud the work of our investigative partners in bringing this conspiracy to justice,” said U.S. Attorney Erica H. MacDonald.
“The FBI will pursue those who plan, scheme and defraud charities for their own personal gain,” said Michael Paul, special agent in charge of the FBI’s Minneapolis Field Office. “The men and women of the FBI work hard every day to identify and apprehend those responsible for such crimes that simply will not be tolerated.”
According to the defendant’s guilty plea and documents filed with the court, between April 2012 and February 2019, COMBS, a former program manager for a Twin Cities non-profit organization that provides housing and related services to the homeless, and multiple co-conspirators, devised and participated in a scheme to fraudulently obtain at least $684,081.90 in charitable funds from the organization. As part of the scheme, COMBS recruited other employees of the non-profit, as well as her family and friends, to pose as landlords and fictitious homeless clients. During the course of the investigation, COMBS tried to conceal the scheme and minimize her involvement by making false statements to Special Agents of the Office of the Inspector General of the Department of Housing and Urban Development and the Federal Bureau of Investigation, and a United States Postal Inspector.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General, the FBI, and the United States Postal Inspection Service.
Assistant United States Attorney Miranda E. Dugi prosecuted the case.
Defendant Information:
CLARISSA LYNN COMBS, 49
Brooklyn Park, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
- False statements, 1 count
Sentenced:
- 71 months in prison
- Three years of supervised release
- $684,081.90 in restitution
SHANEKA LASHAY MZEE, 36
St. Paul, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $ 26,865.00 in restitution
LETEASTE HENRY-DAVIS, 56
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $12,400.00 in restitution
SHARRÉ OPHILIA RUSH, 34
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $35,843.25 in restitution
AISHA LENEE DAVIS, 42
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $87,740.65 in restitution
JALONDA LEEANN COMBS, 38
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $117,633.00 in restitution
RACHAEL ELIZABETH EKHOLM, 41
Richfield, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Six months in prison
- Three years of supervised release
- $109,080.00 in restitution
BRIDGIT YVETTE MICHAUD, 54
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $89,000.00 in restitution
AUDREY SEBILETTA HEATH, 35
Ramsey, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $14,650.00 in restitution
AISHIA RENEE BELL, 43
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
- $166,875.00 in restitution
ANTHONY JEROME OLIVER, 56
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Three years of probation
- $76,600.00 in restitution
NEAL BURTON, 57
Minneapolis, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- Two years of probation
- $15,785 in restitution
TYRONE LAMAR BURTON, 41
St. Paul, Minn.
Convicted:
- Conspiracy to commit wire fraud, 1 count
Sentenced:
- 18 months in prison
- Three years of supervised release
- $166,785 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Investment Advisor Sentenced to 17 Years in Prison in Multi-Million Dollar Investment Fraud Scheme that Victimized Professional Hockey Players and Long Island InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Phillip A. Kenner was sentenced by United States Circuit Judge Joseph F. Bianco to 17 years’ imprisonment for stealing millions of dollars in funds raised from Long Island residents and professional athletes that were intended for investment in land developments in Hawaii and a start-up business in Arizona, among other purposes. Kenner and co-defendant Tommy Constantine were convicted at trial in July 2015 of one count of conspiracy to commit wire fraud, four substantive counts of wire fraud, and one count of conspiracy to commit money laundering. The amount of restitution will be determined by the Court at a later date. Previously, the Court entered a forfeiture money judgment in the amount of approximately $17 million and ordered Kenner to forfeit all his right, title and interest in an oceanfront resort in Mexico, real property in Hawaii and a Falcon 10 jet airplane, among other assets. Kenner has been in the custody of the Bureau of Prisons since his arrest in 2013. Constantine is awaiting sentencing.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Services—Criminal Investigation (IRS), announced the sentence.
“Today’s substantial sentence provides just punishment for the defendant’s victimization of clients, as well as his attempts to shift blame and scapegoat others as his scheme unraveled,” stated Acting United States Attorney DuCharme. “As Kenner has now learned, fraud may seem like easy money in the short run, but when justice catches up with you, the consequences can be significant.” Mr. DuCharme expressed his grateful appreciation to the FBI and IRS, the agencies responsible for leading the government’s investigation.
“Time and again, Kenner and his co-conspirator stole money from multiple investors and dumped millions in ill-gotten gains into entities that benefitted them rather than their victims. Kenner has received a significant sentence today, and the 17 years behind bars should give him ample time to think about his crimes and the consequences of his actions,” stated FBI Assistant Director-in-Charge Sweeney.
“Greed knows no boundaries, and anyone may fall victim to its promise of major returns on investment,” stated IRS-CI Special Agent in Charge Larsen. “IRS-CI special agents deal with perpetrators of fraud motivated by their desire for personal financial enrichment on a daily basis. “This sentence is just for Mr. Kenner who deserves his time in the ‘penalty box.’”
Kenner began his career as a Boston-based financial advisor and developed a roster of clients, including former New York Islander Michael Peca, former New York Islander and New York Ranger Brian Berard, and Darryl Sydor and Bill Ranford – both two-time Stanley Cup champions – and other NHL players.
At trial, the government presented testimony from nearly 40 witnesses and introduced more than 1,000 exhibits, including audio recordings made by several victim investors and proved that the defendants siphoned millions of investor dollars into a labyrinth of holding companies, diverting those dollars from their approved uses into companies, real estate and other ventures – including Constantine’s car racing endeavor – that solely benefited the defendants.
The Hawaii Real Estate Investment Scheme
Beginning in 2003, Kenner convinced Peca, Berard and several others to invest $100,000 each for the development of land in Hawaii into luxury estates and to open personal lines of credit at a bank, collateralized by their personal stock, bond and savings accounts worth at least $10 million. Kenner assured the investors that the lines of credit would be used only to pay for initial development costs associated with the Hawaii project, and would be fully replenished after Lehman Brothers Holdings, Inc. agreed to loan the project up to $105 million in August 2006. In fact, Kenner borrowed nearly all of investors’ lines of credit to acquire his personal interest in unrelated real estate projects in Hawaii and Mexico and to cover his own and Constantine’s personal expenses.
In an offshoot of the scheme, Constantine brokered a $3.5 million loan from an Arizona businessman ostensibly to close on a Hawaii parcel of land. Constantine put up no money of his own, but walked away from the transaction – funded with assets diverted from Peca, Berard and others – with approximately $2 million.
The Eufora LLC Scheme
In 2002, Constantine founded Eufora LLC, a prepaid debit card business. Between February 2008 and May 2009, Eufora was operating in the red, and as Constantine testified in civil depositions, the company was nearly worthless. Notwithstanding, Kenner persuaded clients to invest in Eufora. While representing that he was investing his clients’ funds in Eufora, Kenner instead wired $725,000 of his clients’ funds to Constantine’s personal account. Kenner also directed the wiring of an additional $700,000 of his clients’ funds to Eufora’s account, and promptly re-wired those funds to a co-conspirator’s personal account. The diverted funds were used to cover the costs of Kenner’s and Constantine’s home mortgages, credit card bills and other debts.
The Global Settlement Fund Scheme
In early 2009, Kenner’s clients who had opened lines of credit for the Hawaii venture received notices that their credit lines were in default. For years, Kenner concealed that he had wiped out most of his clients’ funds by borrowing against one line of credit to pay monthly interest charges for other another account. By late 2008, the concealment scheme collapsed. Notwithstanding, Kenner and Constantine persuaded their clients to invest additional funds to a “Global Settlement Fund.” The clients contributed more than $2.9 million toward the fund, but the vast majority of the money was diverted to the defendants’ personal use, which included Constantine buying his personal home out of foreclosure, Kenner and Constantine paying legal bills related to Kenner’s personal investment in a tequila company in Mexico, defending Constantine in Florida litigation over his race car sponsorship activities, and an exploratory and unsuccessful effort by Constantine to buy Playboy Enterprises.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution. Assistant United States Attorneys Diane Leonardo and Madeline O’Connor are handling the forfeiture of assets.
The Defendant:
PHILLIP A. KENNER
Age: 51
Scottsdale, ArizonaDefendant To Be Sentenced:
TOMMY CONSTANTINE
Age: 54
Scottsdale, ArizonaE.D.N.Y. Docket No. 13-CR-607 (JFB)
Former Executive Director of Collinwood and Nottingham Villages Development Corporation sentenced to 33 months of imprisonmentRead the Press Release
U.S. Attorney Justin Herdman announced today that Tamiko Parker, 47, of Cleveland was sentenced by Judge Dan Aaron Polster to 33 months in prison and ordered to pay $164,120.30 in restitution after Parker pleaded guilty to theft concerning programs receiving federal funds.
“This defendant was put in a position of public trust, charged with helping to lead a neighborhood to further prosperity,” said U.S. Attorney Justin Herdman. “Instead of using her position for the public good, this defendant chose to enrich herself with public dollars and spend lavishly on trips and home furnishings. Public officials, contractors, or anyone else who misuses or improperly handless public funds can expect to find themselves in a similar position, that is to say, facing federal prison time.”
"Ms. Parker will now spend time behind bars for stealing hundreds of thousands of dollars planned for economic development in the community,” said FBI Special Agent in Charge Eric B. Smith. "Ms. Parker has been held accountable for her criminal avarice and greed. The FBI will continue to work with our law enforcement partners to root out public corruption at all levels."
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
“These stolen funds were designated to improve and assist the Collinwood community,” said Cuyahoga County Prosecutor Michael C. O’Malley. “She’s a serial thief who deserves every day of her 33-month sentence.”
According to court documents, from 2014 to 2016, Parker served as executive director of Collinwood and Nottingham Villages Development Corporation (CNVDC), a nonprofit that acquires, develops and leases property on the northeast side of Cleveland. In her role as executive director, Parker had access to CNVDC’s bank accounts, credit cards, debit cards, statements, and checks. Parker misused various accounts through a variety of schemes, including making unauthorized cash withdrawals, having checks issued to her and using debit and credit cards to pay her expenses.
Court documents show that Parker used CNVDC’s debit card to make purchases at Harley Davidson, the Horseshoe Casino, Victoria’s Secret and in Atlantic City and Las Vegas. In addition, Parker used CNVDC’s credit card to purchase appliances at Home Depot for her home. Parker used CNVDC’s checking account to purchase an automobile in Michigan for $19,080. Parker also collected cash rental payments from tenants of the nonprofit and deposited the cash into her personal bank account.
As a result of Parker’s activity, CNVDC suffered a loss of $195,087.61.
This case was investigated by the FBI, the U.S. Department of Housing and Urban Development -- Office of Inspector General and the Cuyahoga County Prosecutor’s Office. This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and former Assistant U.S. Attorney Carmen E. Henderson.
Federal Jury Finds Jackson Man Guilty of Illegally Possessing Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Maurice Dent, 34, of Jackson, was found guilty Thursday, October 1, 2020, of possessing a illegally possessing a firearm after having previously been convicted of a felony crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives for Jackson. The jury returned the verdict following a four-day trial before U.S. District Judge Henry T. Wingate in Jackson.
On January 27, 2016, a Jackson police officer attempted to stop a car driven by Dent. Refusing to pull over, Dent led police on a short pursuit through Jackson before losing control and coming to a stop on Sonny Guy Golf Course. Dent got out of the car, threw a Glock handgun onto the golf course, and ran about twenty feet before he was apprehended. It was then determined that Dent had been convicted previously of multiple auto burglaries.
Dent will be sentenced on January 8, 2021, at 9:30 A.M. by Judge Wingate. He faces up to 10 years in federal prison and a $250,000 fine.
This case was investigated by the Jackson Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorneys Dave Fulcher, Lynn Murray, and Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Federal Judge in San Antonio Sentences State Inmate for Mailing Threatening Communications while IncarceratedRead the Press Release
In San Antonio today, a federal judge sentenced 47-year-old State of Texas inmate Scott Coalwell to 70 months in federal prison for mailing threatening communications including threats to injure his former defense attorney, a probation officer and the U.S. District Clerk for the Western District of Texas, announced U.S. Attorney John F. Bash and U.S. Marshal Susan Pamerleau.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Coalwell be placed on supervised release for a period of three years after completing his prison term.
On February 7, 2020, a federal jury convicted Coalwell on three counts of mailing threatening communications. Evidence presented at trial revealed that while incarcerated in Texas Department of Criminal Justice—Dominguez Unit in San Antonio, Coalwell mailed threatening letters to his defense attorney, probation officer and the sitting judge in his McLennan County case; his defense attorney in his Bexar County case; and the U.S. District Clerk for the Western District of Texas in San Antonio. When questioned by investigators, Coalwell identified these individuals as being “on the top of his enemy list” and that he intended to “lock and load and go through my enemy list.”
The U.S. Marshals Service, the Texas Department of Criminal Justice—Office of Inspector General and Bexar County Sheriff’s Office investigated this case. Assistant U.S. Attorney Bettina Richardson prosecuted this case on behalf of the government.
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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.
Federal Court Orders the Forfeiture of Drug House Near Western Carolina UniversityRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the U.S. District Court in Asheville has ordered the forfeiture of a residence located at 129 Reservoir Ridge Drive, in Cullowhee, N.C., used to facilitate extensive drug activities.
“The illicit drug trafficking that took place in the residence jeopardized the health and safety of the entire neighborhood. The drug activity was particularly harmful to the community because the house was adjacent to the campus of Western Carolina University and near a preschool,” said U.S. Attorney Murray. “Drug dealers who use their homes to conduct drug transactions are on notice: together with our enforcement partners, we will use all tools at our disposal to take action and protect law-abiding citizens.”
A federal civil forfeiture complaint filed by the U.S. Attorney’s Office on May 1, 2018, alleged that the residence was used for several years to facilitate the distribution of illegal narcotics, including LSD and marijuana. According to court documents, the residence was the site of multiple illegal drug transactions in 2017 and 2018, and posed a threat to the safety and welfare of the surrounding neighborhood, including the campus of Western Carolina University.
According to the complaint, as early as 2016, the Jackson County Sheriff’s Office began receiving complaints from neighbors concerning drug trafficking activities by the owner of the residence, Mark Loren Miller, who entertained heavy car and foot traffic on a daily basis. Court documents also show that Miller’s neighbors routinely recovered needles and other drug paraphernalia near the residence. In 2018, law enforcement executed a search warrant at the residence, and recovered MDMA, a drug commonly known as “Ecstasy,” a large amount of cash, digital scales, and other drug paraphernalia.
The civil case filed by the United States was stayed pending the resolution of Miller’s state criminal case. Following Miller’s guilty plea to state criminal charges related to his drug activities, litigation in federal court ensued. On Friday, October 2, 2020, the Court ordered the forfeiture of the residence to the United States.
In making today’s announcement U.S. Attorney Murray commended the collaboration between the Jackson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office.
Assistant United States Attorney Jonathan D. Letzring, of the U.S. Attorney’s Office in Asheville, handled the civil proceedings.
Escape from Halfway House Lands Waterloo Man Back in Federal PrisonRead the Press Release
A Waterloo man who escaped from a halfway house where he had been ordered to reside by a federal court was sentenced today to an additional four months in federal prison.
Zavyon Nix, age 23, from Waterloo, Iowa, received the prison term after a guilty plea to one count of escape from federal custody. Nix was originally sentenced to 30 months’ imprisonment for possession of a firearm by an unlawful drug user in United States District Court in Cedar Rapids on June 6, 2017, with a term of supervised release to follow. As a condition of Nix’s supervised release, he was required to reside in the Waterloo Residential Correctional Facility. He walked away from the facility and was missing for approximately a month. The United States Marshal’s Service apprehended Nix at his mother’s residence.
Nix was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Nix was sentenced to four months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Nix is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2027-CJW.
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Drug Use and an Illegal Sawed-Off Shotgun Send Two to Federal PrisonRead the Press Release
Two Iowa men were sentenced to federal prison for firearms charges.
Christopher Anthony Craig, age 27, from Duncombe, Iowa, received the prison term after an August 18, 2020, guilty plea to one-count of Receipt and Possession of an Unregistered Firearm.
Deacon Smith-Downs, age 29, from Ogden, Iowa, received his prison term after a May 18, 2020, guilty plea to one-count of Possession of a Firearm by a Drug User and one count of Receipt and Possession of an Unregistered Firearm.
Evidence presented at the change of plea and sentencing hearings in this case revealed the following: Sometime between about September 1, 2018 and February 21, 2019, Smith-Downs and Craig were unlawful users of controlled substances and Smith-Downs acquired an illegal sawed-off shotgun. On or about February 20 and 21, 2019, the two men, and Smith-Downs’ wife, got high together and handled the shotgun. On or about February 21, 2019, Smith-Downs informed 911 that his wife had killed herself with the sawed-off shotgun. When law enforcement arrived they found the deceased woman, Smith-Downs, Craig, and the illegal shotgun. Smith-Downs eventually (during a subsequent interview) admitted to being a user of methamphetamine and marijuana and that he, his wife, and Craig had all handled the weapon within 12 hours of the fatal shooting.
On August 18, 2020, Craig was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Craig was sentenced to seven months’ imprisonment. He must also serve a twelve-month term of supervised release after the prison term. There is no parole in the federal system.
On September 22, 2020, Smith-Downs was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Smith-Downs was sentenced to 42 months’ imprisonment. He must also serve a 24-month term of supervised release after the prison term. There is no parole in the federal system.
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.
Craig and Smith Downs are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated by the Webster County Sheriff’s Office, Iowa Division of Criminal Investigation, and Boone County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-3048..
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Dominican National Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A Dominican national who previously resided in Dorchester was sentenced today for drug crimes related to his role in a wide-ranging operation that distributed cocaine and fentanyl throughout Boston and Cape Cod.
Kelvin Chalas, a/k/a Jose Solivan, a/k/a “Keco,” 43, was sentenced by U.S. District Court Judge Richard G. Stearns to 41 months in prison and three years of supervised release. In September 2020, Chalas pleaded guilty to one count of conspiracy to distribute cocaine and fentanyl.
Chalas and his co-conspirators, James Ramirez and Alex and Kevin Fraga, were arrested in August 2017 and charged in connection with their roles in a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. Chalas helped run a drug stash house for Ramirez, who collected the narcotics and took them to Cape Cod for distribution.
In June 2019, Alex Fraga was sentenced to 131 months in prison and five years of supervised release. In January 2020, Kevin Fraga was sentenced to 45 months in prison and five years of supervised release. In February 2020, Ramirez was sentenced to 66 months in prison and five years of supervised release.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth and Barnstable Police Departments and the Barnstable County Sheriff’s Department provided assistance with the investigation. Assistant U.S. Attorneys Alathea Porter, Philip Cheng and Eric Rosen of Lelling’s Criminal Division prosecuted the case.
District Woman Sentenced to 30 Months for Defrauding Banks of up to $3.5 Million by Illegally Accessing AccountsRead the Press Release
WASHINGTON – Tricia Steele Boutros, a 41-year-old District of Columbia resident, was sentenced to 30 months’ imprisonment today in federal court in the District of Columbia for spearheading a three-year scheme to defraud financial institutions and account holders of approximately $3.5 million by illegally accessing bank accounts.
Boutros pled guilty to a criminal information charging her with bank fraud on May 1, 2020. According to court papers, Boutros frequently used an encrypted internet network, referred to as the “dark web,” that allowed her to conceal her identity and illicitly obtain login information for bank account holders. Boutros admitted to using the login information to access at least 30 different bank accounts from more than ten different financial institutions. Boutros admitted to transferring money from those accounts to accounts she controlled personally and through entities she established, including a law firm. Boutros also wrote fraudulent checks on some of the accounts she illegally accessed. Court papers state that Boutros made the fraudulent checks payable to herself, to entities she controlled, and to her creditors. Boutros further admitted that she used stolen identities and counterfeit identification documents to open bank accounts through which she facilitated the transfer of fraud proceeds for her benefit.
Court papers state that, in total, Boutros initiated or attempted to initiate at least $3.5 million in fraudulent transactions from the accounts that she illegally accessed. Some of those transfers were stopped before they were processed or were able to be reversed after the fraud was discovered. Boutros admitted to obtaining between $1.3 million and $2.2 million as a result of her fraud scheme.
Boutros was sentenced by the Honorable Amit Mehta of the U.S. District Court for the District of Columbia. Boutros was ordered to serve 30 months in prison followed by 60 months of supervised release. The Court will determine the amount of restitution owed, which will be at least $1.3 million, at a later date.
The Washington Field Office of the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Elizabeth Aloi of the Fraud and Public Corruption Section is prosecuting the case. Former Assistant United States Attorneys Denise Simmonds and Anthony Saler also prosecuted the case.
Department of Justice Awards $5.8 Million in Grants to San Diego County Indian TribesRead the Press Release
Assistant U. S. Attorney KimThoa Hoang (619) 546-9397
NEWS RELEASE SUMMARY – October 2, 2020
SAN DIEGO – U.S. Attorney Robert Brewer announced today that the U.S. Department of Justice has awarded more than $5.8 million in grants to Native American tribes based in San Diego County to provide resources to crime victims, particularly victims of domestic violence and sexual assault.
Recipients include the Intertribal Court of Southern California, $1,428,927; the Pauma Band of Mission Indians, $900,000; San Pasqual Band of Mission Indians $900,000; Southern Indian Health Council, $614,433; and La Jolla Band of Luiseno Indians, $836,856 and $417,000. Additionally, this office previously announced that Valley Center-based Strong Hearted Native Women’s Coalition received a DOJ grant for $353,615 and the Pauma Band received $363,223.
“Violence against women has increased during the pandemic, making these funds more important than ever,” said U.S. Attorney Robert Brewer. “This is one way for the Department of Justice to make sure that Indian women are protected and their attackers brought to justice. The grants announced today will also significantly expand the Intertribal Court’s capacity to provide victim services to all tribal members.”
The Tribal Governments Program, Purpose Area 5 of the 2019 Coordinated Tribal Assistance Solicitation, was created in Title IX of the Violence Against Women Act of 2005 and amended by 34 U.S.C. 10452. The Tribal Governments Program is designed to fulfill the following goals of Title IX: (1) decreasing the incidence of violent crime against Indian women; (2) strengthening the capacity of Indian tribes to exercise their sovereign authority to respond to violent crimes committed against Indian women; and (3) ensuring that perpetrators of violent crimes committed against Indian women are held accountable for their criminal behavior.
The Pauma Band of Mission Indians is a federally recognized Tribe located in in San Diego County, California. With this funding, the Pauma Sexual Assault Response Team will: (1) increase tribal capacity to respond to domestic violence, dating violence, sexual assault, sex trafficking, and stalking crimes; (2) strengthen the tribal justice interventions, including tribal law enforcement and prosecution; (3) enhance services to victims; (4) work in cooperation with the community to develop education and prevention strategies; (5) provide legal assistance to victims in legal matters arising as a consequence of abuse or violence; (6) provide services to address the needs of youth who are victims of domestic violence, dating violence, sexual assault, sex trafficking, or stalking and the needs of youth and children exposed to domestic violence, dating violence, sexual assault, or stalking; and (7) develop and promote legislation and policies. The Pauma Band of Mission Indians has partnered with Strong Hearted Native Women’s Coalition to plan and implement this project.
The San Pasqual Band of Mission Indians is a federally recognized tribe located in San Diego County, California. With this funding, the San Pasqual Native Women’s Resource Center (NWRC) and the San Pasqual Public Safety Department will: (1) increase and improve tribal law enforcement response and follow-up to victims of domestic violence, dating violence, sexual assault, sex trafficking, and stalking by hiring a dedicated officer; (2) expand the capacity of the Native Women’s Resource Center to provide timely intervention and supportive services; and (3) provide community education and outreach regarding prevention and intervention resources for domestic violence and other crimes of violence against Indian women. The San Pasqual Band of Mission Indians has partnered with a community advisory committee and the Strong Hearted Native Women’s Coalition to plan and implement this project.
Southern Indian Health Council, Inc. (SIHC) is a tribal non-profit located in San Diego County, California. SIHC is a duly authorized designee of the Barona Band of Mission Indians, the Campo Band of Mission Indians, the Ewiiaapaayp Band of Kumeyaay Indians, the Jamul Indian Village of California, the La Posta Band of Diegueno Mission Indians, the Manzanita Band of the Kumeyaay Nation, and the Viejas Band of Capitan Grande Band of Mission Indians of the Viejas Reservation, all federally recognized tribes. The tribes individually have (1) authorized SIHC to submit an application on behalf of the tribe; and (2) stated its support for the project and its commitment to participate in the project upon receiving this funding. In general, SIHC provides medical, dental, and mental health care at four clinic locations in rural southeast San Diego County. SIHC has partnered with Strong Hearted Native Women’s Coalition to plan and implement this project. With this funding, SIHC will: (1) provide transitional housing assistance for victims of domestic violence, sexual assault, dating violence, stalking, or sex trafficking; (2) provide supervised visitation and safe visitation exchange; (3) increase tribal capacity to respond to domestic violence, dating violence, sexual assault, stalking, and sex trafficking, by providing training to tribal staff and partners; (4) provide civil legal assistance to victims with legal issues arising out of the violence they experienced; and (5) provide services to youth that are victims or exposed to domestic violence, sexual assault, or stalking.
The La Jolla Band of Luiseno Indians is a federally recognized tribe located in San Diego County, California. The La Jolla Band of Luiseno Indians’ Avellaka Program works to address violence against Indian women by providing 24/7 crisis intervention services, court advocacy and accompaniment, transitional housing assistance, and community awareness and education. With this funding, the Avellaka Program will: (1) increase and enhance tribal capacity to respond to domestic violence, dating violence, sexual assault, sex trafficking, and stalking crimes against Indian women; (2) work in cooperation with the community to develop education and prevention strategies; and (3) provide transitional housing for victims. The Avellaka Program has partnered with the La Jolla Native Women’s Advisory Committee to plan and implement this project.
Further, the Tribal Victim Services grant award will enable La Jolla to (1) hire a 1.0 FTE Advocate for Youth; 2) retain the services of a consultant to help develop a strategic plan and conduct evaluation activities for the project; 3) retain the services of a videographer to help youth document digital stories and create PSAs targeting youth victims of crime; and 4) support the development of a Native Children's Advocacy Committee.
Under its award, Intertribal Court of Southern California (ICSC), located in Valley Center, will expand victim services for member tribes of their consortium. ICSC will hire four victim services program staff (Family Services Manager, Youth Services Advocate, Adult Services Manager, and an Administrative Assistant) to expand services to child, adolescent, and adult victims of crime; renovate a portion of the ICSC building to serve as a private waiting area for victims awaiting court proceedings; purchase a mobile office to house the four victim services staff; and contract with American Indian Development Associates LLC to conduct a needs assessment, create a Victim Services Program strategic plan, and assist with a two-year formative program performance plan in Year 1 and 2.
For information of the Valley Center-based Strong Hearted Native Women’s Coalition grant please see https://www.justice.gov/usao-sdca/pr/department-justice-awards-1-million-grants-san-diego-county-organizations. For information on the first Pauma grant, please see https://www.justice.gov/usao-sdca/pr/us-doj-office-violence-against-women-awards-363223-pauma-band-mission-indians-support.
Defendant Sentenced to 83 Months for Maritime Smuggling Event that Resulted in the Deaths of Two AliensRead the Press Release
Assistant U.S. Attorneys Jill Streja and Seth Askins (619)546-8401
NEWS RELEASE SUMMARY – October 5, 2020
SAN DIEGO – Julio Cesar Murillo-Arce was sentenced in federal court today to 83 months in prison for his role as the captain of a panga boat that suffered engine trouble and capsized in February 2020, resulting in the deaths of two of the six smuggled aliens on board. Murillo-Arce pleaded guilty to four counts of alien smuggling in June 2020.
As reflected in court records, during the late hours of February 2 and early morning hours of February, Murillo-Arce piloted a panga boat with six illegal aliens aboard from Ensenada, Mexico, to United States territorial waters. At approximately 1:30 a.m., as the boat was approximately 150 yards offshore and beyond the breakers near Imperial Beach, it began experiencing severe engine trouble and eventually became inoperable in the rough seas.
Law enforcement personnel with the Joint Harbor Operations Center were able to observe the boat, and Border Patrol agents responded to the shore. Fearing capture, Murillo-Arce told the other individuals aboard not to identify him as the pilot of the boat and then dove into the water, abandoning them at their time of greatest need. Thereafter, a large wave capsized the boat, throwing all six smuggled aliens into the rough seas. Four eventually were able to make it to shore, but two – Ramon Ponce-Rodriguez and Modesto Rodriguez-Ballesteros – were unable to swim and drowned.
When this incident occurred, Murillo-Arce previously had been convicted of a maritime alien smuggling offense in 2019 in the Central District of California and was on supervised release.
U.S. District Court Judge Marilyn L. Huff sentenced Murillo-Arce to 78 months in federal prison for his criminal conduct in this case. When handing down the sentence, Judge Huff observed that this was a “tragic, tragic, tragic circumstance” and “one of the most egregious that the court has seen in many years of experience.” She noted that Murillo-Arce was not deterred by his prior conviction and stated, “These deaths should not have happened.” Judge Huff also imposed a 10-month sentence for Murillo-Arce’s violation of the terms of his supervised release and ran five months consecutive, for a total sentence of 83 months.
“This is yet another tragedy that never should have happened,” said U.S. Attorney Robert Brewer. “This defendant and others like him care only about their bank accounts and their own safety. Because of his callous disregard for the passengers he attempted to smuggle, two lives were lost.” U.S. Attorney Brewer commended Assistant U.S. Attorneys Jill Streja and Seth Askins, as well as the U.S. Border Patrol and the Joint Harbor Operations Command for their work on this case.
“As made evident by these events, organizations that use the Pacific Ocean to smuggle people have little regard for human life,” stated U.S. Border Patrol, San Diego Sector’s Acting Chief Patrol Agent Patricia McGurk-Daniel. “Border Patrol agents work relentlessly to pursue these smugglers and prevent these tragedies from occurring. The San Diego Sector is grateful for the U.S. Attorney’s Office’s tireless efforts in bringing them to justice.”
DEFENDANT Criminal Case No. 3:20-CR-761-H
Julio Cesar Murillo-Arce Age: 42 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (B)(iv) – Attempted Bringing in Illegal Aliens Resulting in Death (2 counts)
Maximum Penalties: Death or Imprisonment for any term of years or for Life; $250,000 fine.
8 U.S.C. § 1324(a)(2)(B)(ii) – Attempting Bringing in Illegal Aliens for Financial Gain (2 counts)
Maximum Penalties: Mandatory Minimum three years; Maximum ten years; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
Joint Harbor Operations Command
D.C. Man Arrested and Charged with Robbing Three Banks in a Single DayRead the Press Release
WASHINGTON – Micheal Antonio Smith, 32, of Washington, D.C. has been arrested and charged via criminal complaint with robbing three different Wells Fargo Bank branches on Tuesday, September 29, 2020.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smith robbed the Wells Fargo Bank located at 3200 Pennsylvania Avenue S.E. at approximately 12:18 p.m. At approximately 12:59 p.m., Smith then robbed the Wells Fargo Bank at 609 H Street N.E. Finally, at 2:23 p.m., Smith robbed the Wells Fargo Bank located at 1934 14th Street N.W. Smith was captured on surveillance video in all three banks, and also captured outside a bank after he had removed his hood and mask. Overall, Smith received more than $1,500 from the three robberies.
FBI agents, with assistance from MPD officers and detectives, were able to identify Smith and track his movements on September 29, 2020, and thereafter. Agents confirmed that Smith had fled Washington, D.C. to Philadelphia after the last robbery and, on October 3, 2020, Smith was arrested in Philadelphia with assistance from the Philadelphia Police Department. Smith will be transported back to Washington, D.C. by the United States Marshals Service to face trial.
“This investigation is a perfect example of the necessary synergy between law enforcement organizations,” noted Acting U.S. Attorney Sherwin. “Through good policing and coordinated efforts, law enforcement was able to remove a dangerous person from the streets.” Special Agent in Charge Bornstein further stated “Those intending to rob banks should take heed that the FBI and its local task force partners to include MPD, will take swift actions to identify, seek and arrest those responsible for these acts” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This arrest is one of the many examples of the ways the FBI and our partners on the DC Violent Crime Task Force work together to swiftly take violent criminals off the streets before they act again.”
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter was investigated by the FBI Washington Field Office’s Violent Crime Task Force which is composed of FBI Special Agents, along with task force officers from the Metropolitan Police Department, the United States Capitol Police, the United States Marshal’s Service, the Court Services and Offender Supervision Agency, and the DHS Federal Protective Service. The task force is charged with identifying, investigating and removing the most egregious actors engaged in violent crimes within the District of Columbia. Investigative assistance in this matter was provided by the FBI – Philadelphia Field Office.
In announcing the charges, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Jeffrey Poulin of the Federal Major Crimes Section, and Paralegal Specialist Teesha Tobias.
Chicago-Area Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago-area man has been charged in federal court with conducting an illegal sports gambling business in the city and suburbs.
GREGORY EMMETT PALOIAN conducted an illegal sports bookmaking business from 2015 to 2019, according to a criminal information filed Friday in U.S. District Court in Chicago. Paloian operated his business in Chicago, Elmwood Park, and Melrose Park, the information states.
The information charges Paloian, 66, of Elmwood Park, with one count of conducting an illegal gambling business. It seeks forfeiture from Paloian of $274,070 and a 2017 Audi automobile.
Arraignment is set for Oct. 7, 2020, at 10:15 a.m., before U.S. District Judge Joan Humphrey Lefkow in Chicago.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The gambling charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
California Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California man was sentenced today for using fraud and bribery to facilitate his child’s acceptance to Georgetown University.
Peter Dameris, 60, of Pacific Palisades, Calif., was sentenced by U.S. District Court Judge Richard G. Stearns to one day in prison (deemed served), three years of supervised release with 12 months of home confinement, and ordered to pay a fine of $95,000. In June 2020, Dameris pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Dameris agreed with William “Rick” Singer to pay an amount, ultimately totaling $300,000, to Singer’s purported charity, the Key Worldwide Foundation (KWF), knowing that the money would be used to facilitate Dameris’s son’s purported recruitment to Georgetown University as a tennis player, even though he did not play tennis competitively.
Singer previously pleaded guilty and is cooperating with the government’s investigation.
Dameris is the 23rd parent to be sentenced in this case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buhl Man Sentenced to over 10 Years for Distributing MethamphetamineRead the Press Release
BOISE - Terry Duane Whited, Jr., 36, of Buhl, Idaho, was sentenced in U.S. District Court to 130 months in prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Whited to serve five years of supervised release following his prison sentence. Whited pleaded guilty to the charge on October 22, 2019.
According to court records, Whited was a methamphetamine dealer living in the Buhl area in 2018. On October 28, 2018, Whited distributed five pounds of methamphetamine to an individual living in Boise, for an agreed price of $4,000 per pound. This methamphetamine was later seized by law enforcement following a search warrant of a Boise residence. Whited has a criminal history that includes a prior felony conviction for eluding a police officer in which he was sentenced to prison.
This case was investigated by the Drug Enforcement Administration and Boise Police Department.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
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Brooklyn Man Sentenced to 20 Years in Prison for Conspiring to Sex Traffic Minor VictimsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that ANTHONY YOUNG, a/k/a “Royalty,” was sentenced today to 20 years in prison for conspiring to sex traffic minor victims. YOUNG’s sentence was imposed by United States District Judge Sidney H. Stein, before whom he previously pled guilty to one count of conspiracy to sex traffic minor victims. As part of his plea, YOUNG acknowledged that he conspired to traffic two minor females.
Acting U.S. Attorney Audrey Strauss said: “In violation of federal criminal law, Anthony Young had sex with two minors and further sexually abused and exploited them by directing them to engage in commercial sex, keeping the proceeds for himself. For his callous and abusive conduct, Young has been sentenced to 20 years in prison.”
FBI Assistant Director William F. Sweeney Jr. said: “Luring children into the sex trade, and then physically abusing those children, is beyond contemptible. Now that Mr. Young is thankfully bound for a federal prison cell, he’ll no longer be able to abuse our most vulnerable population. Our FBI/NYPD Child Exploitation and Human Trafficking Task Force members do extremely difficult and emotionally draining work each day, but saving even one child from being victimized by a predator provides some light at the end of a very dark tunnel. Please call us at 1-800-CALL-FBI if you know anyone who may need our help.”
Commissioner Dermot Shea said: “Today’s sentencing underscores the importance of our work to stop anyone who would sexually abuse and exploit minors. I commend our FBI/NYPD Child Exploitation and Human Trafficking Task Force, and all of our law-enforcement partners, for working tirelessly to seek justice and for helping these victims get the services they need.”
According to the Indictment and other court documents filed in Manhattan federal court:
YOUNG worked with others to lure two minor females, who had not yet turned 16 years old, into the commercial sex trade on the pretense of romance. More than 10 years older than his victims, YOUNG had sex with them, took sexually suggestive pictures of them, advertised them for commercial sex, and told them how much they should charge for commercial sex acts. YOUNG arranged for his victims to be transported to various hotels to engage in commercial sex acts, and then he kept all the proceeds from these sex acts for himself.
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In addition to his prison sentence, YOUNG, 34, was sentenced to 10 years of supervised release.
Ms. Strauss praised the outstanding investigative work of the FBI and the New York City Police Department (“NYPD”), and in particular, the FBI-NYPD Child Exploitation and Human Trafficking Task Force. She also thanked the Kings County District Attorney’s Office, the New York City Department of Correction, and the New York City Human Resources Administration for their assistance in this matter.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Rushmi Bhaskaran and Sarah Mortazavi are in charge of the prosecution.
Bronx Man Indicted for Conspiracy to Distribute 30 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A grand jury indicted a Bronx, New York, man today for his role in a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Raul A. Figueroa Santana, 48, was indicted on one count of conspiracy to distribute five kilograms or more of cocaine and one count of possession with intent to distribute five kilograms or more of cocaine. He and two co-defendants, Yohan E. De Jesus Osornio, 30, of Phelan, California, and Ronal Luiyi Hernandez Sepulveda, 30, of the Bronx, were charged by complaint on Nov. 16, 2019.
According to documents filed in this case and statements made in court:
Figueroa Santana was arrested on Nov. 15, 2019, in Newark after conducting a transaction involving 10 kilograms of cocaine. Law enforcement officers observed De Jesus Osornio, who had parked his tractor trailer on Passaic Street in Newark, enter a white Mazda before returning to the tractor trailer with a weighted-down bag. Law enforcement officers observed Hernandez Sepulveda and Figueroa Santana arrive in a black Mitsubishi. Law enforcement officers observed Hernandez Sepulveda approach the tractor trailer and walk back to the Mitsubishi with a bag, which Hernandez Sepulveda placed in the back of the Mitsubishi, where Figueroa Santana was waiting. After approaching and apprehending the defendants, law enforcement officers searched the bag and found 10 kilograms of cocaine, and found an additional 20 kilograms of cocaine and a large sum of cash in the tractor trailer.
De Jesus Osornio and Hernandez Sepulveda previously pleaded guilty. De Jesus Osornio was sentenced Sept. 30, 2020, to three years in prison. Hernandez Sepulveda pleaded guilty and is scheduled to be sentenced Dec. 2, 2020.
Both counts of the indictment carry maximum penalties of life imprisonment and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office OCDETF/Narcotics Unit.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bridgeport Police Chief and Personnel Director Plead Guilty to Rigging City’s Police Chief SearchRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ARMANDO J. PEREZ, the former Chief of Police of the City of Bridgeport, Connecticut (the “City”), and DAVID DUNN, the City’s former acting personnel director, pled guilty today to defrauding the City by rigging the 2018 police chief examination in order to ensure PEREZ would be selected for the position, and to making false statements to federal agents in the course of the investigation. PEREZ and DUNN pled guilty before U.S. District Judge Kari A. Dooley in Bridgeport federal court this morning.
Acting U.S. Attorney Audrey Strauss said: “As they have now admitted, former Chief Perez and former Personnel Director Dunn schemed to rig the purportedly impartial and objective search for a permanent police chief to ensure the position was awarded to Perez, and then repeatedly lied to federal agents in order to conceal their conduct. Today’s pleas are a significant step in ensuring that Bridgeport’s citizens and police officers have leaders with integrity who are committed to enforcing, not breaking, the law.”
According to the allegations contained in the Complaint, the Informations, publicly available information, court filings, and statements made during the plea proceedings:
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
The charges arise from a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with DUNN, who is and was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent chief of police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. DUNN, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. DUNN and PEREZ then manipulated that examination process in multiple ways: DUNN stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; DUNN had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and DUNN attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout to PEREZ for accrued leave.
False Statements by PEREZ and DUNN
PEREZ and DUNN were each voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal their conduct, during those interviews they both lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance DUNN and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by DUNN. DUNN falsely denied requesting an exam panelist ensure that PEREZ was scored as one of the top three candidates.
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PEREZ, 64, of Trumbull, Connecticut, and DUNN, 73, of Stratford, Connecticut, each pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison; and one count of making false statements to federal investigators, which carries a maximum penalty of five years in prison.
PEREZ is scheduled to be sentenced by Judge Dooley on January 4, 2021, and DUNN is scheduled to be sentenced by Judge Dooley on January 11, 2021.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentences of PEREZ and DUNN will be determined by the Court.
Ms. Strauss praised the outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, are in charge of the prosecution.
Box Elder Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Box Elder, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
John Cody Klingman, age 29, was charged on September 17, 2020. Klingman appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 5 up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Klingman receiving and possessing child pornography between October 2014 and October 2019. The charges are merely an accusation and Klingman is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Klingman was released on conditions. A trial date has been set for December 1, 2020.
Box Elder Man Indicted for Sexual Exploitation of MinorRead the Press Release
United States Attorney Ron Parsons announced that Box Elder, South Dakota, man was charged in federal district court with Sexual Exploitation of a Minor, Attempted Enticement of a Minor, Distribution of Child Pornography, Receipt of Child Pornography, and Possession of Child Pornography.
Cody Allen Green, age 37, was charged on September 17, 2020. Green appeared before U.S. Magistrate Judge Daneta Wollmann on September 21, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Green sexually exploiting an underage female in March 2019 via Facebook messenger by producing images of child pornography. He remained in possession of the images thereafter. A search of Green’s devices found that he knowingly received, distributed, and possessed images depicting minors involved in sexually explicit conduct. The charges are merely an accusation and Green is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, Department of the Air Force Office of Special Investigations, the Rapid City Police Department, and the Pennington County Sheriff’s office Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Green was detained pending trial. A trial date has been set for November 24, 2020.
Boise Man Convicted of Health Care Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Scott Alexander Laney, 38, of Boise, was convicted on October 5, 2020, by U.S. District Judge B. Lynn Winmill of health care fraud and aggravated identity theft following a bench trial, U.S. Attorney Bart M. Davis announced today. The bench trial ran from September 21 through September 25, with the Court announcing the verdict today.
During the five-day trial, the Court heard evidence that Laney executed a scheme to defraud Medicare and Idaho Medicaid in connection with the delivery and payment of urine drug screenings and committed aggravated identity theft. Laney worked as a sales representative in connection with two national companies that performed laboratory testing of urine drug samples. In that role, Laney setup fraudulent accounts using the names and identifying information of multiple nurse practitioners without authority. Laney’s misuse of the nurse practitioners’ information caused the payment of fraudulent health care claims that were not authorized by a medical provider and were not reasonable or medically necessary.
Laney faces up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release on the health care fraud convictions. The aggravated identity theft charges carry a mandatory minimum of 2 years consecutive imprisonment to other charges, a maximum fine of $250,000, and up to 1 year of supervised release.
Sentencing is set for January 7, 2021, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the Health & Human Services, Office of Inspector General with assistance from the Payette Police Department.
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Baltimore Felon Sentenced to 12 Years in Federal Prison for the Robbery of a Gas Station OwnerRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Levon Verian Butts, age 29, of Baltimore, Maryland, to 12 years in federal prison, followed by three years of supervised release, for participating in the armed robbery of a gas station owner. The sentence was imposed on October 2, 2020. Butts has been detained since his arrest.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on January 16, 2018, Butts and two co-conspirators robbed the owner of a gas station in the 10000 block of Reisterstown Road in Owings Mills, Maryland. As detailed in the plea agreement, Jesse James Elder was a frequent customer of the gas station and was friendly with the employees, including the owner. On January 16, 2018, Elder was at the gas station playing the lottery when the owner arrived. Shortly after his arrival, the owner placed $20,000, proceeds from the gas station, into a bank bag and left the store. As he was walking out, he stopped next to Elder’s vehicle, which was parked in the gas station lot, and began talking to Elder. While the owner and Elder were talking, Butts and Charvez Deonte Brooks approached from a neighboring parking lot and hid behind other parked cars. When the owner walked away from Elder’s vehicle, Butts and Brooks pushed the owner to the ground and grabbed the bank bag from his hand.
Butts and Brooks tried to run back to the adjacent parking lot. A bystander tripped Butts, causing him to run out of his shoes, which Butts left in the parking lot. Brooks dropped some of the money. Butts and Brooks got into co-conspirator Brooks’ silver Infiniti and fled the area. Elder drove around the owner, who was lying motionless in the parking lot, and left the gas station.
As a result of being pushed to the ground, the owner of the gas station hit his head on the pavement and was knocked unconscious. He was transported to the hospital, where he was diagnosed with multiple skull fractures, a cerebral hemorrhage, and remained in critical condition. He has not returned to normal function.
Baltimore County Police officers responded to the gas station and recovered the money that had been dropped by Brooks and Butts’ shoes from the gas station parking lot. They also recovered a .22-caliber handgun and additional money in the parking lot near where the Infiniti had been parked. DNA from the shoes matched Butts’ DNA.
Elder, age 45, of Owings Mills, previously pleaded guilty to conspiracy to commit a commercial robbery. Brooks, age 31, of Gwynn Oak, Maryland, was convicted of that charge after a five-day trial. Both defendants face a maximum sentence of 20 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has not scheduled sentencing for Elder. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Brooks on December 5, 2020 at 3:00 p.m. Elder and Brooks remain detained.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Anatoly Smolkin, who are prosecuting the case.
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Baltimore Attorney Facing Federal Indictment for Attempted ExtortionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Stephen L. Snyder, age 72, of Miami Beach, Florida, on the federal charges of attempted extortion and interstate travel and use of an interstate facility to carry on unlawful activity, also known as the Travel Act. Snyder was the senior partner at a Baltimore-based law firm specializing in plaintiff-side medical malpractice litigation.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the eight-count indictment, between January and October 2018, Snyder attempted to obtain $25 million from the University of Maryland Medical System (UMMS) for himself, separate and apart from any claim by one of his clients, by using threats of economic and reputational harm to UMMS and its organ transplant program. Specifically, the indictment alleges that Snyder threatened that if UMMS did not pay him $25 million, Snyder would launch a public relations campaign against UMMS that alleged, among other things, that UMMS transplanted diseased organs into unsophisticated patients without informing them of the quality of the organs they were receiving in order to generate revenue. According to the indictment, Snyder told UMMS officials that the campaign would include: a front-page article in the Baltimore Sun; other national news stories; a press conference; advertisements on the Internet, including one that would run every time someone accessed the UMMS transplant site; and at least two videos Snyder produced and would air if his demand for a $25 million payment were not met.
Snyder allegedly demanded that UMMS disguise the $25 million payment as a sham consulting arrangement between Snyder and UMMS. Snyder also allegedly threatened that a lawyer (Lawyer 1) working for the insurance program insuring UMMS and its faculty physician groups would lose her job and threatened to harm the professional reputation of a UMMS doctor (Doctor 1) if they did not aid Snyder in obtaining the $25 million payment.
As detailed in the indictment, Snyder represented the spouse of a transplant patient who had died (Client 2). During a settlement conference that included the lawyer and doctor mentioned above, Snyder demanded a $25 million settlement for his client. In a later meeting, Snyder allegedly told UMMS representatives, including Lawyer 1 and Doctor 1, that the Client 2 case was “not worth that much money” and that Client 2’s case was worth between $3 and $5 million. Snyder confirmed several times that the $25 million would be a payment made just to him and would be in addition to the payment made to Client 2’s spouse to settle her case. When asked what he could do for $25 million, he told the UMMS representatives that he didn’t know, didn’t care, and could be “a janitor” at UMMS.
During both meetings, Snyder allegedly played videos that he had produced and said he would air if his demands were not met. The first video claimed that UMMS did not tell patients that organs UMMS transplanted were bad organs or that they accepted organs that other institutions rejected. The commercial said that Client 2 was told by the surgeon that transplanted his kidney that the surgeon would have transplanted the same organ into his own wife but wasn’t told that 250 other institutions had rejected the same kidney. The video showed images of Client 2 with necrotic fingertips and an amputated leg. The second video started with the words, in red, “PUBLIC SERVICE ANNOUNCEMENT” as well as an alert sound associated with emergency alerts. It then showed a text that Doctor 1 had sent Snyder on April 20, 2018, that read: “Sue and I just spoke. She understands on hook for fraud and punitive damages. Ball is in your court.” The video then showed pictures of several doctors which the video claimed had left UMMS or had been demoted and were no longer performing surgery. Doctor 1 was pictured with the words: “DEMOTED NO LONGER DOING SURGERY – relegated to executive work” next to his picture. After UMMS representatives advised Snyder that the video contained inaccuracies, such as the fact that the doctor had not been demoted and was still performing surgeries, Snyder responded, “then I’m wrong.”
If convicted, Snyder faces a maximum sentence of 20 years in federal prison for extortion and for each of seven counts of violating the Travel Act. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Snyder is expected to have an initial appearance in U.S. District Court in Baltimore, although no date has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Matthew J. Phelps, who are prosecuting the case.
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Attorney General William P. Barr Announces the Appointment of Gregg N. Sofer as the U.S. Attorney for the Western District of TexasRead the Press Release
Attorney General William P. Barr announced today the appointment of Gregg N. Sofer as U.S. Attorney for the Western District of Texas, pursuant to 28 U.S.C. § 546, effective Oct. 10, 2020.
As U.S. Attorney, Sofer will be the chief federal law enforcement officer in the Western District of Texas. He will be in charge of one of the largest U.S. Attorney’s Offices in the United States, overseeing approximately 300 total staff, including 150 Assistant U.S. Attorneys, and covering 93,000 square miles in 68 counties, with divisional offices in Alpine, Austin, Del Rio, El Paso, Midland, San Antonio, and Waco. The Western District of Texas regularly prosecutes more criminal cases than any other district in the United States and serves approximately 6.5 million Texans.
“I am pleased to appoint Gregg N. Sofer as U.S. Attorney for the Western District of Texas,” said Attorney General William P. Barr. “He has served as an exceptional prosecutor for more than 29 years, devoting himself to the pursuit of justice and the protection of the citizens of this country. His leadership, integrity, and experience will greatly benefit the people of the Western District.”
“I am thrilled to be able to serve the people of my home state as the United States Attorney. I look forward to working with our state, local and federal law enforcement partners, for whom I have the utmost respect, as we continue to protect our communities and ensure that the rights of all of our citizens are safeguarded,” said Gregg N. Sofer. “I thank John F. Bash for his incredible leadership of the U.S. Attorney’s Office over the last three years. John is one of the finest lawyers I have ever met and I wish him the very best in the next chapter of his career.”
Prior to his appointment, Sofer served as Counselor to the Attorney General of the United States, where he handled criminal and national security matters, as well as crisis response. Before coming to Main Justice, Sofer served for 12 years in the U.S. Attorney’s Office for the Western District of Texas. As an Assistant U.S. Attorney and accomplished litigator, he handled national security, fraud, violent crime, and corruption cases, among others. In 2018, Sofer was promoted to Chief of the Criminal Division. In that role, he was responsible for the supervision of over 120 Assistant U.S. Attorneys and all aspects of the district’s criminal practice. His last trial in Austin, Texas, a RICO prosecution, resulted in a life sentence without parole for a man who attempted to assassinate a state court judge as she sat in her car with her family.
From 2003 to 2007, Sofer was a trial attorney in the National Security Division at Main Justice where he led the investigation and prosecution of international terrorism cases. He also served as the Director of the Office of Justice for Victims of Overseas Terrorism and Director of the National Gang Targeting Enforcement and Coordination Center.
Sofer started his legal career in the Manhattan District Attorney’s Office. Among a wide variety of cases, he prosecuted violent gang, murder and firearms trafficking cases for over 11 years, distinguishing himself as a skilled trial lawyer, indefatigable investigator, and fierce advocate for justice. Sofer earned his J.D. from New York University School of Law and his B.A. from Rutgers University.
Alameda Home Health Care Aide Charged with Credit Card Fraud in Scheme Targeting Elderly CoupleRead the Press Release
OAKLAND – A criminal complaint was unsealed today in federal court charging Heidi Suzanne Miller with credit card fraud in an alleged scheme to abuse her role as a home health care aide to use the credit cards and take over the financial accounts of an elderly couple in her care, announced United States Attorney David L. Anderson and Federal Bureau Investigation Special Agent in Charge John L. Bennett.
“Older Americans are at great risk from fraudsters,” said U.S. Attorney Anderson. “It is a priority of my Office to identify and prosecute individuals who take advantage of the elderly. In this matter, the exploitation of an elderly couple was even more shameful because the defendant had been hired to help the couple, not harm them.”
"It is particularly disturbing that someone who came into this elderly couple's home as a caregiver, instead capitalized on the couple's vulnerability for her own greed," said FBI Special Agent in Charge Bennett. "The FBI and our partners will continue to work every day to protect our elderly neighbors from fraud and abuse.”
According to the criminal complaint, in 2016, the son of an elderly Moraga, California couple hired Miller to care for his parents because they were suffering from early onset dementia. Within three days of beginning her employment, Miller allegedly began using the couple’s credit cards for her personal benefit. The complaint describs how Miller used checks and credit cards during the next three years to steal over $360,000 from the couple. Miller used the money to pay her living expenses and to maintain her lifestyle by, among other things, buying cars, clothing, and jewelry; taking a cruise and a trip to Disneyland; and caring for her family pets, including purchasing a “14-day dream dog package.” The elderly couple’s son discovered the fraud in 2019 after Miller’s employment ended. Also included in the list of alleged improper purchases was breast augmentation and liposuction. According to the criminal complaint, Miller obtained the plastic surgery and related procedures in January 2018 and paid for them using three credit cards issued to the elderly couple. Miller allegedly paid over $15,000 toward the approximately $26,000 cost of the plastic surgery procedures using the couple’s credit cards. The elderly couple’s son discovered the fraud after Miller’s employment ended.
Miller is charged with credit card fraud, in violation of 18 U.S.C. § 1029(a)(5).
A criminal complaint merely alleges that crimes have been committed, and Miller is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge, Miller faces a maximum sentence of 15 years’ imprisonment, up to three years of supervised release, a fine of $250,000, and restitution. 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.
Miller made her initial appearance today before Chief U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero ordered Miller released on a $100,000 bond and subjected to certain travel restrictions during the pendency of the case. Miller’s next court appearance is set for November 18, 2020, before U.S. Magistrate Judge Jacqueline Scott Corley, for a status hearing.
The Special Prosecutions Section of the U.S. Attorney’s Office is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Moraga Police Department, and the Contra Costa County District Attorney’s Office.
3 October 2020
Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Tayler Marie Sovereign 23, of Lincoln, was sentenced on October 2, 2020, by Chief United States District Judge John M. Gerrard to 10 years in federal prison for possession with the intent to distribute 50 grams or more of methamphetamine, actual (pure). Following the prison term, Sovereign will serve five years on supervised release. There is no parole in the federal system.
On April 30, 2019, Sovereign was the passenger in a car that was stopped for a traffic violation in Lincoln. A Lincoln Police Department canine indicated to the odor of narcotics. When told of this, Sovereign claimed anything found in the car belonged to her. During a search, officers found five baggies of methamphetamine. Two of the bags contained a total of at least 160 grams of methamphetamine, actual, (more than 5 ½ ounces). Also found were multiple sandwich baggies and a digital scale. Sovereign told officers she bought the methamphetamine the day before and sold small amounts of it after buying it.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
2 October 2020
Winston-Salem Man Suspected in Drive-by Shooting is Sentenced to 108 Months for Gun CrimeRead the Press Release
GREENSBORO, N.C. - A Winston-Salem man was sentenced today by United States District Court Judge William L. Osteen, Jr., to 108 months in prison and three years of supervised release for a firearm offense, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SHAMMOHD JAMEIL BALLAH, age 22, was charged with possession of a firearm by a felon. He pleaded guilty to the charge on June 3, 2020.
According to court documents, on November 4, 2019, Winston-Salem Police Department (WSPD) officers investigating a report of a drive-by shooting at a residence on Bethabara Road found shell casings strewn about the ground in front of the property, as well as numerous holes on the exterior of the residence. Eleven spent shell casings - eight 7.62mm and three 9mm - were located at the scene. Based on witness interviews, BALLAH was developed as a suspect. BALLAH was on state probation at the time and court-ordered GPS monitoring location data placed him in the area of the shooting at the time it occurred. WSPD officers tracked BALLAH to his apartment complex the following day and found him outside in a vehicle which contained a Cugir pistol, model Micro Draco, 7.62x39mm caliber. BALLAH was previously convicted of Possession of a Stolen Firearm with an offense date of January 17, 2016, and was sentenced to 6-17 months.
Another 22-year-old from Winston-Salem, DARRIAN SYLVESTER SCOTT, JR., was sentenced earlier this week on a charge of felon in possession of a firearm. SCOTT, JR. was sentenced on September 29, 2020, to 92 months in prison by United States District Court Judge Catherine C. Eagles.
“We will continue to support our federal and local law enforcement partners and aggressively prosecute gun crime,” said U.S. Attorney Matt Martin. “Every neighborhood should be safe from gun violence.”
The BALLAH case was investigated by the FBI Safe Streets Task Force and the Winston-Salem Police Department. The SCOTT case was investigated by WSPD and the ATF.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Wilkes-Barre Individuals Sentenced for Running Methamphetamine LaboratoryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 1, 2020, Mark Heath, age 41, and Amy Casey, age 42, both of Wilkes-Barre, Pennsylvania, were sentenced by United States District Court Judge Malachy E. Mannion for methamphetamine offenses. Heath was sentenced to 84 months’ imprisonment and four years of supervised release. Casey received a time served sentence of 10 months’ imprisonment, and two years of supervised release.
According to United States Attorney David J. Freed, Heath pleaded guilty to conspiring to manufacture and distribute 50 grams or more of crystal methamphetamine in Pennsylvania between approximately May 2017 and June 2017. The evidence established that Heath manufactured methamphetamine in a Wilkes-Barre, Pennsylvania residence. Casey pleaded guilty to maintaining a drug premises, for permitting and assisting Heath and others in running the methamphetamine laboratory in her residence, in exchange for free methamphetamine. In pronouncing both sentences, Judge Mannion highlighted that the crimes jeopardized the safety of several children living in the residence, for which the defendants received sentencing enhancements.
Two other defendants were convicted in connection with this investigation:
(1) Shawn Melleski, formerly of Wilkes-Barre Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months’ imprisonment and three years of supervised release; and
(2) Michael Laury, formerly of Wilkes-Barre Pennsylvania, was convicted at trial of a methamphetamine conspiracy, managing a drug premises, and for providing false statements to law enforcement. Laury awaits sentencing.
The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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United States Attorney William D. Hyslop Announces Award of $839,263 to the Kalispel Indian Community in a Grant to Be Used to Improve Public Safety, Serve Crime Victims and Support Its Youth Programs in the Eastern District of WashingtonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that, of the Department of Justice grants awarded this week to improve public safety, serve victims of crime and support youth programs in tribal communities, the Kalispel Indian Community and the Kalispel Reservation Public Safety and Community Policing program has been awarded $839,263 to support its efforts here in the Eastern District of Washington.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
United States Attorney Hyslop said, “I’m very pleased that the Kalispel Indian Community has been awarded an $839,263 grant. These funds will provide substantial assistance to be used to expand and improve services to victims of crime and to promote other public safety initiatives.”
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney William D. Hyslop Announces $1,495,962 to Support Offenders Returning to Communities in the Eastern District of WashingtonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, today announced $1,495,962 in Department of Justice grants to be used to help reduce recidivism among adults and juvenile offenders returning after confinement to their communities here in the Eastern District of Washington. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent President Trump’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington will use all available resources and strategies to reduce crime. One of the strategies to reduce recidivism is to provide services to offenders that promote successful reintegration into society, including education and employment opportunities, and the ability to be productive, law-abiding citizens, upon their release. This grant funding will help accomplish that.”
The following organizations received funding:
• HopeSource (Kittitas County) – receiving $749,994
• Washington State Department of Corrections (Eastern/Western Washington) – receiving $745,968
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
U.S. Attorney's Office Announces Partnership with Special Inspector General for Pandemic RecoveryRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the District of Nevada has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“This partnership with SIGPR will help our district continue to carry out the critical work of stopping those who would take advantage of the $2.2 trillion CARES Act,” said U.S. Attorney Trutanich. “We look forward to working closely with SIGPR to, among other things, prosecute fraudsters who are preying on vulnerable individuals during these difficult times and hold accountable fraudulent profiteers.”
“This relationship is a critical step in protecting taxpayer dollars,” said Special Inspector General for Pandemic Recovery Brian D. Miller. “We join U.S. Attorney Nicholas Trutanich and his team to fight fraud, waste, and abuse involving taxpayer dollars appropriated by Congress in response to the pandemic. We will hold accountable and bring to justice those who improperly take or use such money, which is meant to support the Nation’s economic health and recovery.”
The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute matters involving the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, and the management by the Secretary of the Treasury of any program established under the CARES Act, in order to achieve just results while using all criminal and civil resources efficiently.
The MOU outlines four objectives: (1) To provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; (2) To facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; (3) To link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and (4) To deter future CARES Act funding fraud through an enhanced awareness of successful criminal prosecution and civil enforcement against individuals and companies involved in CARES-related financial fraud.
Two Assistant U.S. Attorneys — one from the Criminal Division and one from the Civil Division — will serve as liaisons to the partnership between SIGPR and the U.S. Attorney’s Office. These AUSAs will be direct points of contact for case-related inquiries from SIGPR.
The MOU also calls for the U.S. Attorney’s Office to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
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U.S. Attorney Jason Dunn Announces $2.6 Million in Grants to Southern Ute Indian TribeRead the Press Release
DENVER – U.S. Attorney Jason Dunn today announced $2.6 million in Department of Justice grants to improve public safety, serve victims of crime and support youth programs to the Southern Ute Indian Tribe in Colorado.
“When it comes to violent crime, the gap between Indian Country and the rest of America is staggering, which is why the Justice Department is dedicated to not only vigorously prosecuting violent crimes committed on tribal lands, but also funding programs that support victims and promote public safety,” U.S. Attorney Dunn said.
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney J. Douglas Overbey Announces Award of $2.2 Million in Grant Support for Offenders Returning to Communities in East TennesseeRead the Press Release
KNOXVILLE, Tenn. – U.S. Attorney J. Douglas Overbey today announced $2.2 million in Department of Justice grants to the Hamilton County Sheriff’s Office to reduce recidivism among adults and juvenile offenders returning to their communities in the Eastern District of Tennessee after confinement. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lay before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about re-offending.
“Our office’s main function is the prosecution of serious and violent offenders,” said U.S. Attorney Overbey. “Prosecutions alone will not ensure public safety over the long term. Our office has increased its involvement in community-based crime prevention through our Project Safe Neighborhoods strategies. Lowering recidivism is a complex matter and involves a variety of factors like treating addiction, mental health and providing access to employment. Our office will continue to increase our capacity to assist in prevention and reentry of East Tennesseans.”
For a complete list of grant award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
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Two members of notorious videogame piracy group “Team Xecuter” in custodyRead the Press Release
Seattle — Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.
MAX LOUARN, 48, a French national of Avignon, France, YUANNING CHEN, 35, a Chinese national of Shenzhen, China, and GARY BOWSER, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today. The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.
“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”
“These defendants lined their pockets by stealing and selling the intellectual property of other video-game developers–even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran. “This conduct doesn’t just harm billion-dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”
“Theft of intellectual property hurts U.S. industry, game developers, and exploits legitimate gaming customers. All of which threaten the legitimacy of the commercial video game industry,” said Eben Roberts, Acting Special Agent in Charge, Homeland Security Investigations, Seattle. “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”
“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecutor was doing,” said Raymond Duda, FBI Special Agent in Charge Seattle. “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.
According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames.
In September 2020, LOUARN and BOWSER were arrested abroad in connection with the charges in this case. The United States will seek LOUARN’s extradition to stand trial in the United States. BOWSER was arrested and deported from the Dominican Republic and appeared today in federal court in New Jersey.
Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering.
Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are each punishable by up to 20 years in prison. Conspiracy and trafficking in circumvention devices are each punishable by up to 5 years in prison.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, and Senior Counsel Frank Lin of the Justice Department’s Computer Crime and Intellectual Property Section, with significant and ongoing assistance from the Justice Department’s Office of International Affairs. The Department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.
louarn_et_al_indictment.pdfTwo Men Found Guilty of Hobbs Act Robbery of Cell Phone StoreRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of RONALD JERMAINE JACKSON, 36, and WILLIAM CHARLES GRAHAM, 37, on Hobbs Act robbery and firearms charges. Following a three-day bench trial, U.S. District Judge Susan Richard Nelson found both JACKSON and GRAHAM guilty on all counts.
As proven at trial, on April 30, 2019, JACKSON and GRAHAM entered a T-Mobile reseller store in Brooklyn Park Minnesota, disguised in wigs, dust masks, and reflective vests. JACKSON was armed with an Accu-Tek AT380 .380 caliber semi-automatic pistol and GRAHAM was armed with a BB gun that resembled a real handgun. JACKSON and GRAHAM forced two employees at gunpoint into a back room. GRAHAM used zip ties to restrain the employees while JACKSON filled mesh bags with cell phones. JACKSON and GRAHAM fled the store with more than 70 cell phones and other devices. Officers with the Brooklyn Park Police Department responded almost immediately to the robbery and were able to locate and apprehend JACKSON and GRAHAM in the parking lot of a nearby business.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brooklyn Park Police Department, Champlin Police Department, and Osseo Police Department, and Hennepin County Sheriff’s Office. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorneys Amber M. Brennan and Justin A. Wesley tried the case.
Defendant Information:
RONALD JERMAINE JACKSON, 36
Plymouth, Minn.
Convicted:
- Hobbs Act robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
WILLIAM CHARLES GRAHAM, 37
Minneapolis, Minn.
Convicted:
- Hobbs Act robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Members of Notorious Videogame Piracy Group “Team Xecuter” in CustodyRead the Press Release
Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.
Max Louarn, 48, a French national of Avignon, France, Yuanning Chen, 35, a Chinese national of Shenzhen, China, and Gary Bowser, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today. The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.
“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”
“These defendants lined their pockets by stealing and selling the work of other video-game developers – even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran for the Western District of Washington. “This conduct doesn’t just harm billion dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”
“Theft of intellectual property hurts U.S. industry, game developers and exploits legitimate gaming customers, all of which threaten the legitimacy of the commercial video game industry,” said Acting Special Agent in Charge Eben Roberts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Seattle. “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”
“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecuter was doing,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices.
The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.
According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames.
In September 2020, Louarn and Bowser were arrested abroad in connection with the charges in this case. The United States will seek Louarn’s extradition to stand trial in the United States. Bowser was arrested and deported from the Dominican Republic, and appeared today in federal court, in New Jersey.
Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated jointly by the FBI and HSI.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, with significant and ongoing assistance from the Justice Department’s Office of International Affairs. The department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.
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.
Twelve San Antonio-Based Texas Mexican Mafia Members and Associates Arrested -- Indicted on Federal Drug Trafficking ChargesRead the Press Release
In San Antonio, federal, state and local authorities have arrested twelve Texas Mexican Mafia (TMM) members and associates on federal drug charges in connection with a methamphetamine/heroin/cocaine trafficking operation in the San Antonio area, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division; San Antonio Police Chief William McManus; and, Bexar County Sheriff Javier Salazar.
A federal grand jury this week returned an eight–count indictment against all twelve defendants (listed below) -- ten who were arrested today and two who were already in custody prior to today. Charges alleged in the indictment include: conspiracy to distribute a controlled substance; possession with intent to distribute a controlled substance; and, possession of a firearm by a convicted felon.
The indictment alleges that the defendants are responsible for distributing controlled substances from July 2020 to September 23, 2020.
During today’s arrests, authorities seized a total of 15 firearms, approximately 20 kilograms of suspected methamphetamine, quantities of cocaine and an undetermined amount of U.S. currency. Prior to today, this operation has resulted in the seizure of approximately 20 kilograms of methamphetamine, two kilograms of heroin and 18 firearms.
The defendants, with the exception of Vonallman, face lengthy mandatory federal prison terms upon conviction. All of the defendants remain in custody awaiting detention hearings in federal court beginning next week.
“The arrests made as part of Operation Last Dance in San Antonio and the surrounding areas conclude a comprehensive investigation by DEA and our law enforcement partners into the criminal activities of violent local street gangs to include members of the Mexican Mafia, Texas Syndicate, and their criminal associates,” said DEA Special Agent in Charge Steven S. Whipple, Houston Field Division. “This investigation reflects DEA’s commitment to make sure communities across Texas are safe and prevent gang members involved in drug distribution and other violent criminal activity from establishing a foothold in our neighborhoods.”
This indictment resulted from an Texas Anti-Gang Center (TAG) investigation conducted by San Antonio TAG member agencies including the DEA, FBI, San Antonio Police Department’s Gang Unit, Bexar County Sheriff’s Department, Bexar County District Attorney’s Office, Texas Department of Public Safety (DPS), Texas Department of Criminal Justice-Office of Inspector General, Homeland Security Investigations (HSI), U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The purpose of the TAG Center in San Antonio is to provide a one-stop information sharing environment for federal, state and local law enforcement to combat and target gang violence in and around San Antonio. The goal is to disrupt the command and control of criminal gangs through prevention, intervention and suppression of their unlawful enterprises.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Name, Age, Residence, Statutory sentence
Donald Trevino (aka “Fluffy”, “D”, “Uno”, “Gordo”), 32, San Antonio, 25 years to life imprisonment
Rodolfo Villalobos (aka “Fluffy”, “Chubs”, “Oro”), 38, San Antonio, 15 years to life imprisonment
David Botello (aka “Torito”, “Bully”, “Bullyman”), 50, San Antonio, 15 years to life imprisonment
David Cortez Jr. (aka “Tazmanian”, “Taz”), 29, San Antonio, 10 years to life imprisonment
Moses Chavez (aka “Moe”, “Mighty Mouse”), 40, San Antonio, 10 years to life imprisonment
**Nicholas Neaves (aka “Snoopster”, “Snoop”), 25, San Antonio, 10 years to life imprisonment
Richard Agueros, III (aka “Herc”), 36, San Antonio, 10 years to life imprisonment
Robert Arzola Jr., 41, San Antonio, 10 years to life imprisonment
**Luz Del Carmen Velarde-Campos (aka “Prima”), 33, San Antonio, 10 years to life imprisonment
Aaron Muniz (aka “Primo”), 36, San Antonio, 10 years to life imprisonment
Isabel Hernandez-Garcia, 35, San Antonio, 0 years to life imprisonment
Joseph Lloyd Vonallman (aka “Jv”), 36, San Antonio, up to 20 years imprisonment** Already in custody prior to today
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.
Troy Father and Son Indicted for Heroin TraffickingRead the Press Release
ALBANY, NEW YORK – Carlos Leon, age 62, and his son Jose Leon Roldan, age 41, both of Troy, New York, appeared in court this week on a charge of conspiring to distribute 1 kilogram or more of heroin.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.
The indictment also charges that on March 30, 2020, Carlos Leon possessed and intended to distribute quantities of heroin, cocaine and oxycodone, and unlawfully possessed a Ruger handgun and Glock handgun as a felon. The charges in the indictment are merely accusations. Each defendant is presumed innocent unless and until proven guilty.
A third man, Mario Figueroa-Portalatin, age 42, of Troy, pled guilty on August 11, 2020 to conspiring to distribute 1 kilogram or more of heroin.
Carlos Leon, who has been in custody since March 30, was arraigned yesterday on the indictment. Jose Leon Roldan appeared today before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending a hearing on Monday. On the drug conspiracy charge, each man faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life. Carlos Leon also faces up to 20 years in prison on the drug possession charge, and up to 10 years in prison on the firearms charge. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
A separate indictment charges Anthony Leon, age 34, of Watervliet, New York, with distributing cocaine on February 26, 2020, and possessing and intending to distribute cocaine on March 30. Anthony Leon is the son of Carlos Leon, and the brother of Jose Leon Roldan. The charges in the indictment are merely accusations. Anthony Leon is presumed innocent unless and until proven guilty. Anthony Leon faces up to 20 years in prison if convicted. He appeared today before Judge Hummel and was ordered detained pending a hearing on Monday.
These cases are being investigated by DEA Albany, the Rensselaer County Sheriff’s Office, and the Watervliet Police Department, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.