Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 24 August 2020
Texas professor and NASA researcher arrested on charges related to China’s Talents ProgramRead the Press Release
HOUSTON – A criminal complaint has been unsealed charging a 53-year-old College Station man for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m. in Houston. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“Once again we have witnessed the criminal conflicts that can arise from participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to illuminate the darkness around these talent programs and expose the exploitation of our nation and our prized research institutions.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.
China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Sturgis Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 4, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Conner Harmon, age 22, was sentenced to 5 years in federal prison, followed by 8 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2018 Sturgis Motorcycle Rally, targeting internet predators. Harmon was arrested and federally indicted following multiple chats and text messages with a person Harmon believed to be a 14 year-old girl, but who was in fact an undercover agent. Harmon proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Harmon went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Harmon was immediately remanded to the custody of the U.S. Marshals Service.
Shreveport Man Sentenced for Stealing Items from Shreveport Police Department VehicleRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Kiandrew McFan, 23, of Shreveport, was sentenced today by U.S. District Judge S. Maurice Hicks, Jr. for Illegal Possession of Stolen Explosives Material. McFan was sentenced to 24 months in prison, followed by 3 years of supervised release. McFan pled guilty to the charge in United States District Court on September 25, 2019.
According to evidence introduced in court, on February 17, 2019, a member of the Shreveport Police Department S.W.A.T. Unit reported that his unmarked vehicle was burglarized in front of his Shreveport residence. A flash bang, which is a small explosive device utilized by the S.W.A.T. during a dynamic entry of a dwelling to distract and disorient subjects in the dwelling, was stolen. The flash bang produces a loud audio explosion and an intense flash of light when detonated. On February 22, 2019, Shreveport Police Department officers obtained a warrant and discovered the flash bang at McFan’s residence. McFan admitted to the theft and possession of the explosive material.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
# # #
Sacramento Couple Pleads Guilty to Conspiring to Commit Tax FraudRead the Press Release
SACRAMENTO, Calif. — A Sacramento couple pleaded guilty today to conspiring to defraud the United States by submitting false claims for income tax refunds to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.
According to court documents, between March 29, 2012 and Feb. 14, 2015, William Bennett, 42, and Christina Bennett, 38, conspired with Bridget Coilton, 50, also of Sacramento, to defraud the IRS by submitting false claims for income tax refunds for themselves and for others.
According to the plea agreements, Coilton allegedly provided William Bennett with personally identifying information (PII) of other people, and he would file tax returns for those people claiming false, inflated tax refunds based on false statements he added to the returns. The false returns usually fell into similar categories and contained similar false claims. For example, the tax returns filed as a part of the conspiracy contained false and fraudulent statements regarding employment, income, withholdings from income, and dependency exemptions. Some of the federal tax returns also sought tax credits to which the individuals on the returns were not entitled, such as the American Opportunity Credit.
The fraudulent statements resulted in refunds that were often directed to be deposited into bank accounts the Bennetts or Coilton controlled. After the IRS issued the refunds, the co‑conspirators divided the proceeds amongst themselves, sometimes providing the tax filer with a small portion of the refund. If the refund was deposited into one of the Bennett’s bank accounts, Christina Bennett would often withdraw some of the tax refunds deposited in cash and then deliver the withdrawals to Coilton.
The charges against Coilton are pending. She is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
William Bennett and Christina Bennett are scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 7. They each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Registered sex offender pleads guilty to producing child pornographyRead the Press Release
Tacoma - A registered sex offender currently jailed in Skamania County pleaded guilty today in U.S. District Court in Tacoma to production of child pornography, announced U.S. Attorney Brian T. Moran. STEVEN LEE McBRIDE, 51, faces a mandatory minimum 15-years in prison when sentenced by U.S. District Judge Benjamin H. Settle on October 26, 2020. Under the terms of the plea agreement, prosecutors will recommend no more than 25-years in prison, and the defense will recommend no less than 18 years in prison. Judge Settle is not bound by the recommendations and can impose any sentence up to the maximum of 30 years in prison.
According to records filed in the case, in 2007, McBRIDE was convicted in Idaho of molesting two children under the age of 16 and was required to register as a sex offender following a state prison term of up to 15-years. Upon release from prison, McBRIDE moved to a residence in Skamania County. There he moved next door to a distant relative and befriended that neighbor’s child. Between September 2017 and May 2019, McBRIDE made sexually explicit images of the child by hiding a camera in the bathroom, molesting the child while the child slept and ultimately by posing as a school friend of the child online to demand the child send sexually explicit images. McBRIDE threatened to kill the child’s family if the child did not continue to provide the photos.
Law enforcement learned of the production of child pornography when investigators in Queensland, Australia became aware of McBRIDE providing sexually explicit images online in their jurisdiction. An undercover officer contacted McBRIDE and got additional information about the identity of the victim from McBRIDE. The Vancouver Police Department and Homeland Security Investigations moved quickly to alert the victim’s parent and arrest McBRIDE on June 7, 2019.
McBRIDE is charged in Skamania County Superior Court for the hands-on molestation. Under the terms of the plea agreement his state and federal sentences will run concurrently.
The case was investigated by Homeland Security Investigations with assistance from the Vancouver Police Department and the Queensland Australia Police.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Damian Buchholz, age 34, was sentenced on August 14, 2020, to 2 years in federal prison, followed by 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Buchholz, a previously convicted felon who is prohibited from possessing firearms, possessing a Springfield Armory 9mm semi-automatic pistol and a Smith & Wesson .38 special caliber revolver, both with obliterated serial numbers, which were found after Buchholz came into contact with Rapid City police officers in September 2019.
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. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Buchholz was immediately remanded to the custody of the US Marshals Service.
Rapid City Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 14, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Kenneth Williamson, age 52, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Williamson was arrested and federally indicted following multiple chats and text messages with a person he believed to be a 15 year-old girl, but who was in fact an undercover agent. Williamson requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Williamson went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Williamson was immediately remanded to the custody of the U.S. Marshals Service.
Private Security Employee Arrested on Criminal Complaint Alleging He Falsely Impersonated a Federal Law Enforcement AgentRead the Press Release
SANTA ANA, California – A private security employee at an Orange County retirement community was arrested today on a criminal complaint alleging he pretended to be a federal agent.
Donovan Pham Nguyen, 34, of Riverside, is charged with one count of false impersonation of a federal officer or employee, according to a criminal complaint unsealed today. He is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit filed with the complaint, Nguyen for years pretended to be a special agent with Homeland Security Investigations (HSI) and used the false title to obtain things of value. Nguyen never worked for HSI, although he previously was a privately contracted security guard at a Department of Homeland Security (DHS) facility. He left that job in 2015 after an internal investigation was launched resulting from allegations that he printed fake HSI identification documents, the affidavit states.
In May 2019, while employed for a private security company at a retirement community in Orange County, Nguyen allegedly claimed his false title to agents with the U.S. Department of State’s Diplomatic Security Service (DSS) preparing to execute an arrest warrant.
In June 2020, Nguyen discussed a potential criminal investigation with members of the Riverside County District Attorney’s Office after an introduction from a mutual friend. At the meeting, Nguyen again purported to be an HSI employee, according to the affidavit. Following the meeting, Nguyen informed the District Attorney’s Office that, after discussing the matter with his supervisor, HSI could not assist the district attorney in the investigation.
Nguyen allegedly used a false DHS identification to purchase firearms, which allowed him to avoid taking and paying for certain firearm safety courses required by California law. He also used his purported duties as an HSI special agent to excuse his frequent absences from work at a private security firm.
His coworkers at the private security firm reported seeing an HSI badge, a DHS plaque, and various tactical gear, including a ballistic shield, inside of Nguyen’s office. They also reported that Nguyen’s personal vehicle had been equipped with red and blue lights and a siren, the affidavit states. Nguyen also handed out HSI memorabilia, mugs and coins to people at that office.
Nguyen’s LinkedIn social media profile posted his current employment as “Department of Homeland Security Agent,” indicating he was employed with DHS since June 2008. Nguyen also appeared in a YouTube video that purports to be an interview of him as a long-time HSI special agent discussing immigration policies, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Nguyen would face a statutory maximum sentence of three years in federal prison.
Homeland Security Investigations and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility investigated this matter. These DHS agencies received assistance from the Riverside County District Attorney’s Office, the U.S. Department of State’s Diplomatic Security Service, and the Orange Police Department.
This case is being prosecuted by Assistant United States Attorneys John A. Balla and Jerry C. Yang of the Riverside Branch Office.
Philadelphia Tax Preparer Sentenced to Five Years for FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Principal Deputy Assistant Attorney General of the Tax Division Richard E. Zuckerman, announced that Nvahbulai “Kosh” Quisiah, 44, of Philadelphia, PA was sentenced to five years in prison, three years of supervised release and ordered to pay $215,941 in restitution by United States District Court Judge Nitza I. Quiñones Alejandro for multiple fraud and tax offenses.
In February 2020, the defendant was found guilty after a jury trial on charges of preparing false tax returns, aggravated identity theft, wire fraud and engaging in a conspiracy to defraud the United States.
According to evidence presented at trial, Quisiah was the owner and operator of First Premier Tax Service (also d/b/a Kosh & Associates), a Philadelphia-based tax preparation business on Woodland Avenue. From 2010 through 2017, the defendant prepared tax returns for clients that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents for tax years 2009 through 2016. This resulted in inflated tax refunds for his clients to which the clients were not entitled. Quisiah also bought and sold the personal identifying information of children in order to falsely claim the children as dependents on tax returns.
“Today’s sentence is an appropriate reminder to tax preparers that attempting to defraud the federal government will result in serious consequences,” said U.S. Attorney McSwain. “And here, the defendant’s actions will have ramifications for years to come because he stole the identities of children as part of his fraud. My Office will continue to work with our federal partners here and in Washington D.C. to prioritize the investigation and prosecution of tax crimes.”
“As today’s sentencing makes clear, corrupt tax preparers who falsify tax returns, and particularly those who exploit stolen minors’ identities to do so, will not go unpunished,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.
“When return preparers put honest taxpayers and unsuspecting individuals at risk for a quick dollar, they can count on IRS-CI being on their tail,” said Don Fort, Chief, IRS Criminal Investigation. “Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers like Quisiah, who falsely told taxpayers they were eligible for inflated tax refunds that they were not entitled to receive.”
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Philadelphia Return Preparer Sentenced to Five Years in Prison for Tax FraudRead the Press Release
A Philadelphia, Pa, tax return preparer was sentenced to 60 months in prison today for conspiring to defraud the United States, preparing false client tax returns, wire fraud, and identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
“As today’s sentencing makes clear, corrupt tax preparers who falsify tax returns, and particularly those who exploit stolen minors’ identities to do so, will not go unpunished,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.
“Today’s sentence is an appropriate reminder to tax preparers that attempting to defraud the federal government will result in serious consequences,” said U.S. Attorney McSwain. “And here, the defendant’s actions will have ramifications for years to come because he stole the identities of children as part of his fraud. My office will continue to work with our federal partners here and in Washington D.C. to prioritize the investigation and prosecution of tax crimes.”
According to the evidence presented at trial, Nvahbulai Quisiah owned and operated First Premier Tax Service, a tax return preparation business in Philadelphia. From 2010 through 2017, Quisiah falsified clients’ tax returns by claiming false dependents based on stolen minors’ identities, as well as false itemized deductions and business losses in order to increase the refunds paid by the IRS.
In February 2020, a federal jury found Quisiah guilty on all counts.
In addition to the term of imprisonment, U.S. District Judge Nitza I. Quiñones Alejandro ordered Quisiah to serve three years of supervised release and to pay $215,941 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ann M. Cherry of the Tax Division and Assistant U.S. Attorney Anthony Wzorek, who prosecuted the case.
Owners of South Bay Businesses Sentenced to Prison for Investment Fraud Conspiracy and Related CrimesRead the Press Release
SAN JOSE –Jennifer Yang was sentenced to 46 months in prison for her role—and Daniel Wu, her business partner, was sentenced to 24 months in prison for his role—in a conspiracy to commit mail fraud and visa fraud along with a number of related crimes, announced United States Attorney David L. Anderson; U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman; and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following a trial in which the defendants were found guilty of crimes related to a scheme to defraud foreign investors in connection with the United States’ “EB-5” immigrant visa program. The EB-5 program allows individuals to apply for permanent residence in the United States if they invest a substantial sum of money in a new commercial enterprise, enabling that business to create at least ten jobs in this country.
After the four-week trial in this case, the jury found that Yang, 52, of Palo Alto, and Wu, 56, of Las Vegas, submitted to the government fraudulent visa applications that claimed they had used investor money to create the required number of jobs when, in fact, the defendants had misused investor money and failed to create the jobs that they claimed.
“The EB-5 program is intended to create jobs and spur investment. The investors in this program should not suffer fraud,” U.S. Attorney Anderson stated. “Yang and Wu broke their promises to investors and lied to the government. They will now spend time in prison to pay for their crimes.”
“The Diplomatic Security Service (DSS) is pleased with this successful prosecution. These hard-fought convictions send a clear message that criminals who attempt to exploit the U.S. visa process for illegal profit will be punished,” said Special Agent in Charge Perlman. “DSS, alongside our federal partners, is committed to rooting-out and prosecuting criminal enterprises involving U.S. travel documents.”
“Fraudulent schemes like these threaten our National Security and public safety,” said Special Agent in Charge King. “They also have substantial impacts on the victims of these callous crimes. HSI special agents work diligently to not only protect National Security interests, but also the victims of fraud.”
Evidence at trial showed that Yang, a lawyer and licensed member of Bar of the District of Columbia, held herself out as a legal specialist for persons interested in applying for EB-5 visa benefits. Yang and Wu solicited six- and seven-figure investments from foreign individuals interested in lawful permanent residency in the United States, promising those individuals that their investments would be used to create jobs and qualify them for EB-5 visas. Nevertheless, instead of using the investors’ money to create jobs as promised, the evidence at trial showed that the defendants diverted the money for other purposes including personal expenditures such as the purchase of cars, stays in luxury hotels, college tuition for a family member, and the cash purchase of a $2.5 million house for Yang and her family. When it came time to submit visa applications on behalf of the investor victims, Yang and Wu falsely represented that the money had been used properly and the jobs had been created. In some cases, the false information about bogus job positions was created using the personal identifying information of third parties without those individuals’ knowledge or consent. Between 2007 and 2016, the defendants filed fraudulent EB-5 visa petitions for at least seven foreign investors who supplied Yang and Wu with approximately six million dollars intended for use as EB-5 investments.
A federal grand jury indicted Yang and Wu on October 19, 2017, charging both with one count of conspiracy to defraud the United States and to commit visa fraud, mail fraud, and aggravated identity theft, all in violation of 18 U.S.C. § 371; three counts of visa fraud, in violation of 18 U.S.C. § 1546(a); two counts of mail fraud, in violation of 18 U.S.C. § 1341; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. In addition, Yang was charged with two counts of money laundering, in violation of 18 U.S.C. § 1957. The jury convicted Yang and Wu of mail fraud, visa fraud, and conspiracy to commit these and other offenses.
In addition to the prison terms, Judge Koh ordered the defendants to pay $5,951,813.00 in restitution and to serve three years of supervised release following their prison terms.
Assistant U.S. Attorneys Patrick Delahunty and John Bostic are prosecuting the case with the assistance of Lakisha Holliman, Mimi Lam, Susan Kreider, and Tong Zhang. The prosecution is the result of an investigation by the United States Department of State, Diplomatic Security Service, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Citizenship and Immigration Services Fraud Detection and National Security Office.
Operation Shutdown Corner Update: Beckley Man Sentenced to More Than 7 Years for Federal Drug and Gun CrimesRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced to federal prison for his participation in a drug trafficking organization (DTO) operating between California and Raleigh County, announced United States Attorney Mike Stuart. Christopher Redden, 31, of Beckley, was sentenced to 87 months in prison, to be followed by three years of supervised release, for conspiring to distribute a quantity of methamphetamine and for being an unlawful user in possession of a firearm.
“Operation Shutdown Corner took down 17 drug traffickers who were spreading their poisons across southern West Virginia,” said United States Attorney Mike Stuart. “One by one they are being sent to prison for their crimes.”
Redden previously admitted that between January 2019 and September 17, 2019, he participated in the DTO by working with others to distribute methamphetamine and heroin in the Southern District of West Virginia. During this time period, Redden admitted to obtaining approximately 50 grams of methamphetamine a month and a quantity of heroin that he intended to redistribute. Redden admitted that at times he was fronted the drugs, or given drugs without paying for them, and then sold the drugs for profit to pay back the supplier. Other times he admitted to paying for the drugs up front. Additionally, Redden admitted that on September 18, 2019, when he was arrested, he was in possession of a Taurus, model G2C, 9mm semi-automatic pistol that he had received as payment for methamphetamine. He also admitted that at the time he possessed the firearm he knew he was an unlawful user of controlled substances and therefore prohibited from possessing any firearms.
Operation Shutdown Corner was a joint investigative effort of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00312 and Case No. 5:19-cr-00237.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Oklahoma City Man to Serve 15 Years in Federal Prison for Operating Illegal Marijuana Trafficking OrganizationRead the Press Release
Oklahoma City - TOMMY SAVANH NAMMIXAY, 41, of Oklahoma City, has been sentenced to serve a federal prison term of 180 months for conspiracy to distribute marijuana and money laundering, announced U.S. Attorney Timothy J. Downing.
According to an Indictment filed on June 19, 2019, Nammixay was charged with conspiring with others to distribute marijuana, possession with intent to distribute marijuana, maintaining a drug involved premises, money laundering, and being a convicted felon unlawfully in possession of a firearm. It was alleged that Nammixay was the head of an organization that illegally imported marijuana from illegal grow operations in Colorado Springs to Oklahoma City where it was further illegally distributed across Oklahoma. The organization maintained stash houses in south Oklahoma City where the marijuana was brought for repackaging and re-distribution. When Nammixay and other co-defendants were arrested on May 20, 2019, agents seized marijuana 100 pounds of marijuana, over $100,000 in cash, and 45 firearms.
On January 13, 2020, Nammixay pleaded guilty to drug conspiracy and money laundering. In addition, Nammixay agreed to the forfeiture of the 45 firearms and cash along with a house located on N.W. 14th Street and multiple vehicles used by the organization. As part of the plea agreement, Nammixay also stipulated that he was responsible for importing between 1,000 and 3,000 kilograms of marijuana during the course of the conspiracy.
Earlier today, U.S. District Court Judge Scott L. Palk sentenced Nammixay to serve 180 months in prison, followed by four years of supervised release when he completes his prison term. In announcing Nammixay’s sentence, Judge Palk emphasized Nammixay’s prior criminal history, which included a prior federal drug trafficking conviction, as well as his role as the leader and organizer of the group.
Eight of Nammixay’s co-defendants have already been sentenced:
- Terry Browne, 34, of Cleveland, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
- Lawrence Harden, 34, of Broken Arrow, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
- Johnnie Vinavong, 42, of Oklahoma City, was sentenced to 37 months in prison on June 3, 2020.
- Adam Barnhart, 37, of Oklahoma City, was sentenced to 24 months in prison on June 5, 2020.
- Nathan Belcher, 23, of Norman, was sentenced to 12 months and one day in prison, on June 5, 2020.
- Iliana Macias, 30, of Oklahoma City, was sentenced to 12 months and one day in prison, on June 5, 2020.
- Ralph Golden, 60, of Oklahoma City, was sentenced to 60 months probation on June 5, 2020.
- Andrew Eaves, Sr., 49, of Purcell, was sentenced to 36 months probation on July 23, 2020.
This case is the result of an investigation by the Drug Enforcement Administration’s Oklahoma City District Office, with assistance from the City of Norman Police Department, IRS Criminal Investigations Division, Canadian County Sheriff’s Department, Homeland Security Investigations Oklahoma City Office, District 21 Task Force, Oklahoma Highway Patrol, and DEA offices in Colorado Springs and Tulsa. Assistant United States Attorneys’ Thomas Snyder and David Petermann prosecuted the case.
Ohio Woman Sentenced to Five Years for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – An Ohio woman was sentenced to federal prison for her role in a drug trafficking ring, announced United States Attorney Mike Stuart. Danielle Seagraves, 43, was sentenced to 60 months in prison, followed by four years of supervised release, for possessing methamphetamine with the intent to distribute.
“An Ohio woman and 33 grams of meth. This investigation removed a large amount of meth from Jackson County,” said United States Attorney Mike Stuart. “We always have and we always will hold drug dealers accountable.”
Seagraves previously admitted that on April 18, 2017, she had in her possession approximately 33 grams of methamphetamine that she intended to sell to individuals in and around Ripley. Before she could complete any drug transaction, officers with the Jackson County Sheriff’s Department and the Drug Enforcement Administration (DEA) arrested Seagraves and seized the methamphetamine.
The Jackson County Bureau of Investigation, comprised of deputies from the Jackson County Sheriff's Department and officers with the Ravenswood and Ripley Police Departments, worked closely with the West Virginia State Police, the Parkersburg Narcotics Task Force and the Drug Enforcement Administration (DEA) to conduct the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Kristin F. Scott handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00104.
Follow us on Twitter: SDWVNews and USAttyStuart
###
O'Fallon, IL Bookkeeper Indicted for Defrauding Client Out of More Than $1 MillionRead the Press Release
A federal grand jury for the Southern District of Illinois has returned a ten-count indictment
charging Kathleen M. Dvorak, 60, of O’Fallon, Illinois, with conducting a large, multi-year fraud
scheme. The indictment alleges that from 2012 through 2019, while working as a private bookkeeper,
Dvorak embezzled more than $1 million from her client-victim in two primary ways:
(1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and
(2) by taking large amounts of cash back for herself when she deposited checks payable to the
victim into his bank accounts. According to the indictment, Dvorak concealed her fraud from the
victim by making false entries into his QuickBooks accounting program.The indictment charges Dvorak with five counts of wire fraud and five counts of bank fraud. Each
wire fraud count carries a maximum sentence of 20 years in prison and a fine of up to
$250,000. The bank fraud charges each carry a maximum prison sentence of 30 years in prison and a
fine of up to $1 million. The indictment also requests that a forfeiture judgment be entered
against Dvorak in the amount of $1,523,719.08.The arraignment for Dvorak will be conducted on September 10, 2020, at 10:00 a.m. at the federal
courthouse in East St. Louis, Illinois.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.The investigation was conducted by agents from the FBI Springfield Division, Fairview Heights
Resident Agency. The case is being prosecuted by Assistant United States Attorney Scott
A. Verseman.Norwalk Man Sentenced to 2 Years in Federal Prison for Role in Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DONALD LAWLOR, 40, of Norwalk, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by one year of supervised release, for his role in a southern Connecticut drug trafficking organization.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, resulted in federal charges against 19 defendants and the seizure of narcotics, items used to process and package drugs for street sale, eight firearms, and more than $360,000 in cash.
Lawlor was intercepted numerous times on recorded calls assisting the drug trafficking activities of an associate who, from at least January 2017 until November 2019, was distributing heroin, fentanyl, oxycodone, other opioids, cocaine and crack in and around Bridgeport.
Lawlor was arrested on November 8, 2018. On September 11, 2019, he pleaded guilty to one count of use of a telephone to facilitate a narcotics trafficking offense.
Lawlor, who is released on a $100,000 bond, is required to report to prison on September 30, 2020.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty.
Nigerian National Pleads Guilty in Romance Fraud and Grant Fraud SchemeRead the Press Release
LEXINGTON, Ky. - A Nigerian National residing in Indianapolis, Ismaila Fafunmi, pleaded guilty in federal court on Friday, before U.S. District Judge Karen Caldwell, to money laundering charges related to a romance fraud and grant fraud scheme.
According to his plea agreement, Fafunmi admitted that, beginning in June 2018, he worked in conjunction with others, who communicated through online chats, about a scheme to defraud U.S. citizens through a romance scheme. In furtherance of this scheme, Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members. Fafunmi’s co-conspirators would engage in conversations with victims, typically women older than 50, through the dating website, making the victims believe they were in a romantic relationship with the individual in the fictitious profile.
Fafunmi and his co-conspirators would then convince these unsuspecting women to send money for various reasons. One victim of the scheme lived in Kentucky, and sent more than $200,000 to a person she believed to be her boyfriend. In another scheme, Fafunmi received funds from another female over 50, who believed she was being awarded a large grant and had to pay fees up front in order to receive her award.
In either scam, if the victims sent money by bank deposit, the conspirators would create bank accounts, in various names, to retrieve the fraudulent funds. Fafunmi and others would retain a portion of the victim funds, and then converted the remainder to wires transfers, to be sent back to co-conspirators in Nigeria. Victims also sent money in the form of postal money orders to addresses belonging to Fafunmi and his co-conspirators. Fafunmi and his co-conspriators had to convert those funds to wires to be sent back to co-conspirators in Nigeria as well.
Fafunmi was indicted in October 2019.
“Internet-based romance scams and grant fraud scams, like the ones perpetrated here, prey on vulnerable individuals and frequently consist of nothing more than promises that are too good to be true and despicable efforts to cheat people out of their money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, these scams remain prevalent; so all of us need to remain vigilant when communicating online, especially if we are asked to send money to someone we do not really know. The outstanding work of FBI personnel led to the capture and conviction of the defendant, and allows us to hold these fraudsters accountable for their crimes.”
“Nothing is as painful as a broken heart which makes romance scams particularly egregious,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “Fraudsters who target our most vulnerable citizens online will continue to draw the full attention of the FBI.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Kate Anderson.
Fafunmi is scheduled to be sentenced on November 19, 2020. He faces up to 20 years in prison and a maximum fine of $500,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation. The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation. Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.
— END —
NASA Researcher Arrested for False Statements and Wire Fraud in Relation to China’s Talents ProgramRead the Press Release
A criminal complaint has been unsealed today, charging Zhengdong Cheng, 53, of College Station, Texas, for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 10 a.m. in Houston, Texas. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“Once again, we have witnessed the criminal consequences that can arise from undisclosed participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to bring participation in these talent programs to light and to expose the exploitation of our nation and our prized research institutions.”
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“As alleged, Zhengdong Cheng knowingly deceived NASA officials about his association with Chinese owned companies and universities, willingly accepted U.S. government funding, and defrauded his university,” said Assistant Director Alan Kohler, Jr. of the FBI’s Counterintelligence Division. “The FBI is committed to aggressively pursuing those individuals who try and undercut our U.S. research institutions and government agencies by concealing their participation in Chinese talent recruitment programs and to hold them accountable for their actions.”
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program. China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
The FBI-Bryan Resident Agency and NASA-Office of Inspector General conducted the investigation with the assistance of TAMU. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Pleads Guilty to CyberstalkingRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JEFFREY COLIN PURDY, 28, to cyberstalking. PURDY entered his guilty plea this afternoon before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
According to PURDY’s guilty plea and documents filed with the court, between August 30, 2017, and February 29, 2020, PURDY used various means of interstate commerce to communicate threats to injure and kidnap. Specifically, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from PURDY, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from PURDY and eventually blocked PURDY from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, PURDY used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent, violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to PURDY. On February 29, 2020, during an interview at the Mankato Department of Public Safety, PURDY admitted to sending all the Silent Witness Reports.
This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Defendant Information:
JEFFREY COLIN PURDY, 28
Minneapolis, Minn.
Convicted:
- Cyberstalking, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Arrested for Being an Alien in Possession of A Firearm During Denver ProtestsRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Aurora resident and Mexican national Felix Missael Alva has been charged with being an alien in possession of a firearm. Alva made his initial appearance this afternoon where he was advised of his rights and the charge pending against him. The Denver ATF and the Denver Police Department joined in this announcement.
According to the affidavit in support of the criminal complaint, on May 30, 2020, a Denver Police detective was working in downtown Denver during demonstrations when a white Jeep stopped nearby him. The detective was approximately 10 feet from the Jeep when he saw a male passenger produce a large black semi-automatic handgun, and from the open passenger window, heard him say, “This ain't no peaceful protest.” The male pointed to the sky with his left hand and then opened fire into the air while a Denver Police Department helicopter and a news media helicopter were flying overhead. The detective heard approximately 6 to 10 gun shots. Another Denver detective and an officer were near the Jeep during this shooting and observed the passenger fire his weapon into the air. The driver of the Jeep then sped off.
On June 2, 2020, law enforcement went to an address where the white Jeep was found. The vehicle was impounded and searched pursuant to a search warrant for the Jeep. The technicians observed protest signs in the vehicle as well as a large box of artillery shell fireworks. Then on June 4, 2020, the Aurora SWAT Team executed a search warrant at Alva’s residence. The Denver detective who observed the shooting on May 30th approached Alva and recognized him as the individual who fired a handgun into the air on May 30, 2020. During the search, officers located a firearm and firearm accessories in a shed behind the residence. The firearm found on June 4, 2020 has an appearance consistent with the black semi-automatic handgun that the detective observed being fired into the air on May 30, 2020.
Law enforcement record checks revealed that Alva was not a native or citizen of the United States and that he had previously been deported from the United States. In February 2010, he was deported from the United States to Mexico pursuant to a removal order. It was determined that Alva had not made any lawful entries to the United States, and on May 30, 2020, he was present in the United States illegally. As he was not in the United States legally, he was prohibited from possessing weapons.
This case was investigated by the Denver ATF and the Denver Police Department. The defendant is being prosecuted by Special Assistant U.S. Attorney Dorothy DiPascali. The defendant is presumed innocent unless and until proven guilty.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-mj-114.
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.
Metairie Man Sentenced to Thirty Seven Months for Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that on August 20, 2020, LEVI HERMAN (HERMAN), age 33, was sentenced by Judge Carl Barbier to (37) thirty-seven months on a one-count Indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a). Additionally, HERMAN was ordered to pay $1,900 in restitution, serve (2) years of supervised release and pay a 100.00 special assessment fee.
According to court documents, HERMAN robbed the Capital One Bank located in New Orleans, Louisiana on December 4, 2019. HERMAN presented a hand written demand note to the bank teller demanding cash and stating that he had a gun. HERMAN escaped with approximately $1,900 dollars in U.S. currency and was apprehended the next day, December 5, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
* * *
Melrose Man Indicted for Unemployment Insurance ScamRead the Press Release
BOSTON – A Melrose man has been indicted in connection with his role in an unemployment insurance fraud scheme.
Alan Neal Scott, 68, was indicted on four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft. Scott was arrested and charged by criminal complaint in July 2020.
According to the charging documents, over the course of the last six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits as they were incarcerated at the time of the claims and could not have been employed as reported. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, it is alleged that the DUA sent unemployment benefits funds to several addresses connected to Scott and that the funds were deposited into accounts he controlled. The indictment also alleges that Scott submitted fraudulent pandemic unemployment insurance claims in the names of others.
The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The aggravated identity theft charges provide for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; and Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Margaret Hunter Sentenced to Eight Month’s Punitive Home Detention; Judge Recognizes her Substantial Assistance in Obtaining Husband’s Guilty PleaRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738; W. Mark Conover (619) 546-6763; and Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – August 24, 2020
SAN DIEGO – Because of her quick admission of guilt and her substantial assistance in the corruption case against her husband, Margaret E. Hunter was sentenced in federal court today to eight months of punitive home detention to be served as part of three years of probation.
The sentencing of Hunter, wife of former Congressman Duncan D. Hunter, concludes the long-running scandal in which the couple used almost $250,000 in campaign funds as their personal bank account and spent lavishly for items as inconsequential as fast food, movie tickets and sneakers; as trivial as video games, Lego sets and Playdoh; as mundane as groceries, dog food, and utilities; and as self-indulgent as luxury hotels, overseas vacations, and plane tickets for themselves, their family members, and their pet rabbits, Eggburt and Cadbury.
U.S. District Judge Thomas Whelan noted Margaret Hunter’s “remarkable cooperation” in handing down the unusual sentence. For the home detention portion of the sentence, he restricted all movement outside the home except for employment, education, religious services, mental health and substance abuse counseling, and court proceedings. He banned her from seeking employment with fiduciary responsibility.
“Margaret Hunter promptly accepted responsibility for her role in this campaign finance fraud,” said Assistant U.S. Attorney David Leshner, chief of the Criminal Division at the U.S. Attorney’s Office. “Her sentence reflects her lesser culpability relative to her husband, the important part she played in securing her husband’s guilty plea, and her role in reinforcing the bedrock principle underlying our democracy that the politicians who write our laws do not stand above them.” Leshner praised prosecutors Phil Halpern, Emily Allen and Mark Conover as well as the Federal Bureau of Investigation for their tireless pursuit of justice in this case.
“Public corruption is a mission priority for the FBI,” said Omer Meisel, Acting Special Agent in Charge of the FBI San Diego Field Office. “We are dedicated to focusing our efforts, resources and expertise to these complex and sensitive investigations because public officials who use their position for private gain undermine the integrity of government and erode the public’s trust in the very framework of our democracy. Today's sentencing marks the end of a four-year FBI investigation which resulted in felony convictions of former Congressman Duncan Hunter and his wife, Margaret Hunter, for lying and stealing from Hunters’ constituents and undermining the public's trust.”
In recommending punitive home detention, federal prosecutors contrasted Margaret Hunter’s case with that of her husband – who received an 11-month custodial sentence. They noted that rather than admit guilt and resign his seat in April 2016 when his conduct was originally questioned, Duncan Hunter initially sought to deny the misconduct, and then to blame his wife for his own misdeeds. After the latter tactic garnered almost universal condemnation, Duncan Hunter then began his relentless and unceasing attacks on the justice system in general, and the Department of Justice and the FBI in particular.
By contrast, government prosecutors noted that Margaret Hunter admitted her guilt early, quickly entered a guilty plea, and cooperated with the United States in its investigation into her husband’s criminal conduct. According to the government’s sentencing memo, in doing so, she “did much to establish that the rule of law triumphed over dangerous tropes that the Department of Justice was falsely targeting political figures.”
The sentencing recommendation also accounted for the fact that Margaret Hunter’s substantial cooperation came at a great cost to herself and her family. The prosecution observed that her decision to cooperate against her husband (the father of her three children) was a wrenching and difficult one, which effectively pitted herself against the rest of the extended Hunter family. The personal cost of this decision resulted in severe psychological and emotional consequences, including a fractured marriage, intense public scrutiny, and the arduous of task of rebuilding her life as a single mother in a hostile family environment.
Finally, the United States remarked in its sentencing memo that the individual most responsible for the instant offense was undeniably Duncan Hunter. Although Margaret Hunter admitted that she played an active and very substantial role in the theft of campaign funds, she did so only with the concurrence, encouragement, and support of the then-Congressman. Apart from Duncan Hunter’s own theft of campaign funds, it remains uncontested that—time and time again, over many years—he placed his wife in a position to steal campaign funds with full knowledge that she would use those funds to support a lifestyle that their family otherwise could not afford. As early as December 2009, he directed his campaign treasurer to get his wife a campaign credit card, even though at the time she had absolutely no official role with the campaign. And, after receiving multiple warnings from multiple sources that his wife was stealing campaign funds, Hunter allowed her illegal conduct to escalate.
DEFENDANT Case Number 18cr3677-W
Margaret E. Hunter Age: 45 La Mesa, CA
SUMMARY OF CHARGE
Conspiracy to Steal Campaign Funds – Title 18, U.S.C., Sec. 371
Maximum Penalty: Five years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Man Arrested on Federal Criminal Charge for Allegedly Robbing Delivery Truck in Oak ParkRead the Press Release
CHICAGO — A man has been arrested on a federal criminal charge for allegedly robbing a United Parcel Service delivery truck in Oak Park last week.
DARIUS D. YOUNG was one of three individuals who robbed the UPS truck on the afternoon of Aug. 21, 2020, according to a criminal complaint filed in U.S. District Court in Chicago. The driver of the truck had parked in the 1100 block of South Highland Avenue to make a delivery when a vehicle pulled up behind it, the complaint states. The driver heard a male voice approach him from behind and state words to the effect of, “Get on the ground, stay down,” the complaint states. The driver laid face down in the street behind the truck, looking up long enough to observe what appeared to be the handle of a handgun in the waistband of one of the offenders, the charges allege. Young and the two others allegedly removed numerous boxes from the UPS truck and drove off.
Young, 24, of Berwyn, is charged with one count of robbery. He is scheduled to appear for a detention hearing on Friday at 11:00 a.m. before U.S. Magistrate Judge Sheila M. Finnegan.
The arrest and complaint were 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 LaDon Reynolds, Chief of the Oak Park Police Department. The government is represented by Assistant U.S. Attorneys Albert Berry III and Charles W. Mulaney.
The federal charge was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in the Chicago area to help state and local officials fight violent crime, particularly firearm-related offenses.
The public is reminded that a complaint 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 charge in the complaint is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Macon Firearms Trafficker Enters Guilty Plea in Project Guardian InvestigationRead the Press Release
MACON, Ga. – Two Macon-area convicted felons went before a federal judge this week, charged in separate Project Guardian cases, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Donta Booze, 39, of Macon was sentenced to 63 months on Wednesday, August 19 by U.S. District Judge Tilman “Tripp” Self after pleading guilty to one count possession of a firearm by a convicted felon. Keon Hendley, 35, of Macon entered a guilty plea to one count possession of a firearm, which carries a maximum ten years in prison, and one count possession of cocaine, which carries a maximum twenty years in prison, on Thursday, August 20 before Judge Self. A sentencing date for Hendley has not been scheduled. There is no parole in the federal system.
ATF agents, working with a confidential informant (CI), negotiated the purchase of large amounts of firearms from Hendley, a convicted felon, on four separate occasions in 2019 at various locations across Macon. In total, 23 firearms were obtained from Hendley during this operation, along with methamphetamine and cocaine. In a separate case, Booze was taken into custody on April 28, 2018, after Bibb County Sheriff’s Officers attempted to stop Booze for speeding and an improper tag. Booze threw a stolen firearm out of the vehicle before eventually stopping. It is illegal for Booze, who has a lengthy criminal history, to possess a firearm.
“Project Guardian is the Department of Justice’s smart strategy to enforce federal firearms laws and ultimately reduce gun violence in our communities. Our office is working closely with our federal and local law enforcement partners to crack down on convicted felons in possession of firearms, ensuring those found breaking federal law are prosecuted and held accountable,” said U.S. Attorney Charlie Peeler. “I want to thank the ATF for their excellent work investigating gun trafficking and illegal firearm cases in Macon and across our district.”
“ATF is committed to working with our local, state, and federal partners to investigate, arrest and prosecute those individuals who use, or unlawfully enable others to use, firearms in the commission of violent crimes,” said Assistant Special Agent in Charge Brent Quinn. “Project Guardian is directly in line with ATF’s core mission and we are proud to be a part of it.”
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Will R. Keyes prosecuted the Booze case and Assistant U.S. Attorney Charles Calhoun is prosecuting the Hendley case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Lumberton Man Sentenced to 10 Years for Drug and Gun CrimesRead the Press Release
RALEIGH, N.C. – A Lumberton man was sentenced today to 120 months in prison for possessing with the intent to distribute crack cocaine and cocaine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
According to court documents, James Calvin Breeden, 33, who is a convicted felon, was the passenger of a vehicle stopped by deputies with the Robeson County Sheriff’s Office as they were attempting to serve an outstanding warrant. When deputies approached the vehicle, they observed Breeden in possession of a Crown Royal bag that contained approximately 80 grams of crack cocaine and 38 grams of cocaine. He also possessed a loaded handgun inside of his waistband.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated the case and Assistant U.S. Attorneys Chad Rhoades and Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00117-BR.
###
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.
Lauderdale County Man Sentenced to 10 Years for Possession of Meth and GunRead the Press Release
Memphis, TN – Daniel Heatherly, 39, of Ripley, Tennessee, has been sentenced to 120 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm in the commission of a drug trafficking crime. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, the Lauderdale County Sheriff’s Office was investigating Heatherly for distribution of methamphetamine. On February 11, 2019, a Lauderdale County Sheriff's deputy stopped Heatherly as he was driving. The deputy was aware that Heatherly’s license was revoked due to a prior DUI conviction. The deputy asked to search the vehicle, and Heatherly consented.
The center console compartment contained a loaded handgun, meth pipe, two clear plastic baggies with meth rocks inside, and scales. Additional methamphetamine was found behind the passenger seat, along with 176 grams of marijuana. Heatherly denied knowing anything about the items.
The methamphetamine was sent to the Drug Enforcement Administration (DEA) for analysis and testing, the results of which confirmed a total weight of 9.5 grams of methamphetamine with a 100% purity level.
On August 20, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Heatherly to 120 months in federal prison followed by four years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "This offender presented a double threat of serious bodily injury and death: a drug dealer in possession of a loaded firearm while distributing a highly addictive substance on the streets. Meth distribution+gun=a federal prison sentence that protects the community by incapacitating a dangerous offender, and achieves justice by providing proper punishment without the sanctuary of parole."
The Drug Enforcement Administration (DEA) and the Lauderdale County Sheriff’s Office investigated this case.
Special Assistant U.S. Attorney Sean Hord prosecuted this case on behalf of the government.
###
Knox County Man Convicted of Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Corbin, Ky., man was convicted Friday, by a federal jury sitting in London, of armed methamphetamine trafficking and possession of a firearm by a convicted felon.
After two hours of deliberation, following a three-day trial, the jury convicted John Helton of conspiracy to distribute 50 grams or more of methamphetamine, possessing a firearm in furtherance of that conspiracy, possessing with the intent to distribute 50 grams or more of methamphetamine, and possessing a firearm by convicted felon. The jury acquitted Helton of possessing a firearm found at his mother’s residence.
The evidence at trial established that, on June 9, 2019, deputies with the Knox and Laurel County Sheriff’s Offices searched the residence that Helton shared with his wife, Anita, seizing over 300 grams of crystal methamphetamine and four firearms, including three that were loaded. Helton then directed his wife to go to his mother’s residence, to get money to bond him out of jail. When law enforcement searched that residence, they found over $8,000 secreted in a closet. A search of a child’s playhouse on the property revealed over 800 grams of additional crystal methamphetamine and another firearm. The Kentucky State Police had previously made a controlled purchase of methamphetamine that was arranged with Helton but delivered by his wife.
Anita Helton previously pled guilty to conspiring with Helton to distribute methamphetamine and possessing firearms in furtherance of that offense. Her sentencing is scheduled for November 17, 2020.
Helton is scheduled to be sentenced on January 5, 2021. He faces a statutory minimum of 20 years in prison. Under federal law, Helton must serve 85 percent of his sentence. Helton’s minimum sentence was enhanced as a result of a previous felony conviction for manufacturing methamphetamine.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; Rodney Brewer, Commissioner, Kentucky State Police; Sheriff Mike Smith, Knox County Sheriff’s Department; and Sheriff John Root, Laurel County Sheriff’s Department, jointly announced the verdict.
The investigation was conducted by the DEA, KSP, the Knox County Sheriff’s Office, and the Laurel County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
— END —
Kenner Man Sentenced to 60 Months for Violating the Federal Controlled Substances Act and the Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On August 20, 2020, United States District Judge Carl Barbier sentenced JAMES CALLERO, age 33, a resident of Kenner, to (60) sixty months in the Bureau of Prisons for conspiring to distribute heroin and conspiring to possession firearms in furtherance of drug trafficking, announced U.S. Attorney Peter G. Strasser.
CALLERO was charged in a six-count indictment with a conspiring to distribute heroin and various firearms offenses. He pleaded guilty to the heroin conspiracy and a firearms conspiracy, admitting that he was distributing heroin with his co-defendant, DOMINIC LEE, and that they shared firearms to protect their drug trafficking activities. CALLERO will serve 60 sixty months in prison to be followed by (4) four years of supervised release
This case was brought as part of Project Safe Neighborhoods (PSN), which 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.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
* * *
Kankakee Liquor Store Owners Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
URBANA, Ill. – A Bourbonnais, Ill., couple, Raymond and Angie Adamee, owners of a Kankakee liquor store, were each sentenced today to 12 months in prison, followed by 12 months of home confinement for under-reporting income in filed tax returns. Both were ordered to pay restitution to the IRS and the Illinois Department of Revenue in the amount of $642,736.
The court ordered that Raymond Adamee, 53, serve his sentence first and was ordered to surrender to the federal Bureau of Prisons on Dec.1, 2020. Angie Adamee, 51, was ordered to report to the federal Bureau of Prisons on Jan. 4, 2022.
The couple each pleaded guilty on Feb. 10, 2020, to under-reporting gross receipts of their business, Kankakee Plaza Liquors, 1623 E. Court St., Kankakee, Ill., for the calendar years 2012 through 2016, by approximately $1.6 million.
The couple has operated the retail liquor store, predominately as a cash business, since 1989. The under-reporting of the approximate $1,621,779 in income received by the business and its owners, resulted in their failure to pay $409,117 in federal income tax that was due and owing. The under-reporting also resulted in failure to pay $233,619 in income tax, replacement tax, and sales and use tax to the State of Illinois.
In 2017, the IRS uncovered the tax fraud when the couple used a business broker to list KPL for sale for $600,000. An IRS-Criminal Investigation Division undercover agent contacted the broker to request more information about KPL and learned that KPL’s reported income to the IRS was substantially lower than represented in the sale advertisement. When IRS-CI agents executed a search warrant at the couple’s home and business location on Nov. 29, 2017, they found tens of thousands of dollars in cash kept in a safe at the their residence.
The Internal Revenue Service, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
International Sex Trafficker Sentenced to More Than 17 Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MICHAEL MORRIS 66, to 208 months in prison for his role in operating a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States. MORRIS was sentenced by Senior Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota.
Following a six-week trial, on December 12, 2018, a federal jury convicted MORRIS and four other defendants for their roles in operating the sex trafficking enterprise. Thirty-one defendants pleaded guilty prior to the 2018 trial. To date, 29 defendants have been sentenced.
“Sex trafficking continues to be a repugnant local, national, and international crime that preys on vulnerable populations,” said United States Attorney Erica H. MacDonald. “This case demonstrates the dedication and relentlessness of law enforcement across multiple jurisdictions to bring those who commit these crimes to justice.”
As proven at trial, the sex trafficking organization coerced hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle, and Austin. The trafficking victims were forced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand. Once in the United States, the victims were sent to houses of prostitution, including the three that MORRIS ran in southern California, where they were forced to have sex with strangers – every day –having sex with up to ten men a day. The victims were isolated from the outside world, and their families in Thailand were threatened.
As proven at trial, the organization also engaged in widespread visa fraud to facilitate the international transportation of the victims and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization.
Multiple agencies assisted in this investigation over the past five years including: Homeland Security Investigations; the Criminal Investigation Division of the IRS; the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section; the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit; the St. Paul Police Department; the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force; the Anoka County Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the State Department Diplomatic Security Service; and the International Organized Crime Intelligence and Operations Center (IOC-2). United States Attorney MacDonald also thanks the Thai Community Development Center for the support and advocacy they have done on behalf of the victims of this sex trafficking organization.
Assistant United States Attorneys Melinda Williams, Laura Provinzino, and Craig Baune are prosecuting the case.
This case is filed as United States v. Michael Morris, et al., 17-cr-107 (DWF/TNL) and United States v. Sumalee Intarathong, et al., 16-cr-257 (DWF/TNL).
Defendant Information:
MICHAEL J. MORRIS, 66
a/k/a “Bill”
Seal Beach, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
Sentenced:
- 208 months in prison
- 5 years supervised release
- $750,000 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Indictment: Kansas Man Planted Poppies in Effort to Manufacture HeroinRead the Press Release
TOPEKA, KAN. – A Kansas man was charged in a federal indictment unsealed today with growing thousands of poppy plants at his home in Clay County in an effort to manufacture heroin, U.S. Attorney Stephen McAllister said.
Matthew Pfeiffer, 43, Morganville, Kan., is charged with one count of attempting to manufacture opium, one count of manufacturing thebaine (a constituent of opium) and one count of using a telephone in furtherance of drug trafficking.
The indictment alleges that the investigation began when the Drug Enforcement Administration and the Riley County Police Department received information that Pfeiffer was growing poppies and planning to manufacture heroin. On June 4, 2020, law enforcement officers served a search warrant at Pfeiffer’s home in Morganville, where they seized more than 4,000 poppy plants. The poppies were identified as Papaver somniferum, a plant from which opium is derived.
“Opium poppies are an unfamiliar sight in Kansas,” McAllister said, “and we want to keep it that way. It is unlawful to grow poppies for the purpose of producing opiates.”
“The cultivation of poppy plants, for the purpose of making opium paste for heroin production is extremely rare in the United States,” said Special Agent in Charge William J. Callahan, head of the St. Louis Division, which covers Kansas. “The DEA along with our law enforcement partners, thwarted this attempt to produce heroin, and we will continue to stand in the way of violators who seek to harm our communities. This case should serve as an example and a warning that the DEA is as committed to preventing further harm caused by the opioid crisis in rural America, as we are in major cities.”
If convicted, Pfeiffer could face a penalty of up to 20 years in federal prison and a fine up to $1 million on the charges of attempting to manufacture controlled substances, and up to four years and a fine up to $250,000 on the telephone count.
The Drug Enforcement Administration and the Riley County Police Department led the investigation with assistance from the Clay County Sheriff’s Department, the Kansas Bureau of Investigation, the Jackson County Sheriff’s Department, the Shawnee County Sheriff’s Department and the Kansas Highway Patrol and the U.S. Marshals Service.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indian National Pleads Guilty in Telemarketing ScamRead the Press Release
PROVIDENCE – An Indian National appearing today before a U.S. District Court Judge in Providence, RI, admitted to participating in a “Tech Support” telemarketing scam based in India, in which call center operators falsely represented themselves to be associated with Microsoft Corporation, falsely represented to victims that malware or viruses had been detected on their computers, and offered supposed services to remove the malware.
During the scam, members of the conspiracy gained access to the victims’ online banking user names and passwords. Using that information, funds were taken from the victim accounts.
Abrar Anjum, 34, admitted to the court that he allowed members of the conspiracy to use bank accounts under his control in the United States to receive funds taken from victim accounts. Anjum admitted that in return for allowing members of the conspiracy to deposit fraudulently obtained funds into his bank accounts, he was allowed to keep a portion of the funds. He transferred the remaining funds to his co-conspirators in India.
According to court documents, the “Tech Support” scheme operated out of call centers in India.
Anjum was arrested by FBI agents on February 3, 2020, prior to his boarding a flight to India from JFK Airport, and was arraigned the next day in U.S. District Court in Providence.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Anjum, pleaded guilty to conspiracy to commit wire fraud, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Anjum, who remains detained in federal custody, is scheduled to be sentenced on October 21, 2020.
Conspiracy to commit wire fraud is punishable by statutory penalties of up to 20 years in federal prison, 3 years’ supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The FBI investigation is continuing.
###
Husband Pleads Guilty to Tax Evasion and Wife Pleads Guilty to Aiding and Assisting the Preparation and Filing of False Tax Returns with the IRSRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Forney, age 41, of Camp Hill, Pennsylvania, pled guilty on August 21, 2020, to four counts of tax evasion. Kim Forney, age 47, of Windsor, Pennsylvania, pled guilty on August 17, 2020, to four counts of aiding in the preparation and filing of false tax returns.
According to United States Attorney David J. Freed, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting. Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney. While securing the residence, officers observed bloody footprints leading through the house to an outside pool house. Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency. Police obtained and executed a search warrant. Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to daily receipts. The officers seized the cash and receipts.
The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.
An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is three years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Houstonian charged with defrauding investors in false lending schemeRead the Press Release
HOUSTON – A 67-year-old resident of Houston is set to appear in federal court on allegations of mail fraud, announced U.S. Attorney Ryan K. Patrick.
Alan H. Paull is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2:15 p.m.
The indictment, returned Aug. 12, charges Paull with four counts of mail fraud for his alleged role in a scheme to defraud investors in his lending business Paull & Partners Investments LLC. From approximately July 2014 through September 2015, Paull allegedly made false representations and concealed material facts from those who had provided funds to his lending enterprise.
The charges allege he failed to repay investors their principal when a property sold as he had represented to them. Instead, Paull continued to pay monthly interest to those investors leading them to believe the properties had not been sold, according to the charges.
If convicted of mail fraud, Paull faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Texas State Securities Board. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Harrison County man sentenced for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Given, Jr., of Lost Creek, West Virginia, was sentenced last week to six months incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Given, age 48, pled guilty to one count of “Possession of Machinegun” in November 2019. Given admitted to having a machine gun in February 2019 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrison County Sheriff’s Office, Marion County Sheriff’s Office, the Clarksburg Police Department, and the Bridgeport Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Gang Members Sentenced to More Than 15 Years in Prison for Drug-Related ShootingRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Leon Williams (30, Tampa) to 17 years and 6 months in prison and Reginald Jones, Jr. (25, Tampa) to 15 years and 8 months in prison for their roles in a conspiracy to distribute cocaine, crack cocaine, and marijuana, and for discharging a firearm during and in relation to that conspiracy. A federal jury had found Williams and Jones guilty on November 15, 2019.
According to evidence presented during the two-week trial, Williams and Jones are members of the Bird Gang, a violent street-level drug trafficking organization that has operated in Tampa Park for years, and is responsible for multiple homicides and shootings. The Bird Gang principally sold drugs at two locations, the Tampa Park housing complex and a nearby boarding house known as the “Blue House,” which the Bird Gang had essentially taken over. On May 29, 2018, in the middle of the afternoon, Williams and Jones acted as enforcers for the gang by shooting at people whom they believed had been communicating with law enforcement in an effort to stop the gang from selling drugs at the Blue House. Bullets fired by Williams, Jones, and their associates seriously injured one person, struck a car, and broke windows at a company located two blocks away, where almost 400 people were present at the time of the shooting.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, and the Florida Department of Law Enforcement. It is part of an ongoing effort to dismantle the Bird Gang, so far resulting in charges against 30 defendants. This case was prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Four defendants, including two illegal aliens, sentenced for operating decade-long cocaine trafficking networkRead the Press Release
ATLANTA – Roberto Garza-Mendez, Shadarrian Grimes, Euklides Gonzalez-Hernandez, and Johnathan Pena have been sentenced for conspiracy to possess with intent to distribute cocaine. Garza-Mendez and Grimes confessed to having trafficked 200 kilograms of cocaine together during a ten-year span.
“Thanks to the diligent efforts of our law enforcement partners, these defendants’ days of distributing cocaine in the Atlanta community have ended,” said U.S. Attorney Byung J. “BJay” Pak. “Also, by seizing these defendants’ drug-related assets, we hope to send a clear message that drug traffickers will not be permitted to profit from the poison they distribute.”
“The sentencings for these criminals slams the door on a major conspiracy to peddle poison (cocaine) in our communities,” said Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA, its multi-level law enforcement partners and the U.S. Attorney’s Office, are committed to tracking down and bringing to justice those who pollute our neighborhoods with illegal drugs.”
According to U.S. Attorney Pak, the charges and other information presented in court: Following a multi-month federal investigation, DEA agents learned the date and time that Garza-Mendez intended to sell several kilograms of cocaine to Grimes. DEA agents and Georgia State Patrol Officers followed Garza-Mendez from his home, stopped his car, and seized the cocaine, as well as a loaded firearm.
Agents then executed a search warrant at Garza-Mendez’s home and seized additional kilograms of cocaine, $18,000 in cash, and a loaded rifle. They also executed a search warrant at Grimes’ home and seized $36,000 in cash that Grimes intended to use to purchase the cocaine from Garza-Mendez. Drug trafficking paraphernalia and a loaded pistol were also present in Grimes’ home.
Garza-Mendez – an illegal alien twice removed from the United States – and Grimes confessed that they had trafficked 200 kilograms of cocaine with each other for more than a decade. Grimes further confessed that he purchased his Suwanee, Georgia, home and other assets, such as diamond watches and a luxury vehicle, with proceeds from the sale of cocaine he obtained from Garza-Mendez.
The DEA investigation also uncovered that Gonzalez-Hernandez and Pena were more recent additions to the Garza-Mendez/Grimes network. Shortly after the arrests of Garza-Mendez and Grimes, agents executed a search warrant at the Conyers, Georgia, residence of Gonzalez-Hernandez, an illegal alien, who agents identified as the operator of a cocaine stash house. Agents seized approximately seven kilograms of cocaine hidden in an air compressor tank in Gonzalez-Hernandez’s apartment. Agents also learned that Pena had been a courier for Garza-Mendez, transporting cocaine and money among the defendants. He was arrested without incident outside his Stone Mountain, Georgia, residence.
The defendants were sentenced by U.S. District Judge Timothy C. Batten, Sr., as follows:
- Roberto Garza-Mendez, 34, of Norcross, Georgia, was sentenced to sixteen years in prison to be followed by five years of supervised release.
- Shadarrian Grimes, 49, of Suwanee, Georgia, was sentenced to twelve years in prison, to be followed by five years of supervised release.
- Euklides Gonzalez-Hernandez, 41, of Conyers, Georgia, was sentenced to five years, three months in prison.
- Johnathan Pena, 27, of Stone Mountain, Georgia, was sentenced to two years, four months in prison, to be followed by five years of supervised release.
All four defendants previously pleaded guilty. As part of their sentences, the Court ordered the defendants’ illegally-acquired assets to be forfeited to the United States. Garza-Mendez and Gonzalez-Hernandez will be deported to Mexico following their terms of imprisonment.
The Drug Enforcement Administration investigated this case.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Navy Warehouse Manager Who Stole $2.5 Million Worth of Goods from the U.S. Navy Sentenced to Two YearsRead the Press Release
Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – August 24, 2020
SAN DIEGO – Herbert Gutierrez, former warehouse manager at the U.S. Navy Military Sealift Command Warehouse in San Diego and 20-year veteran of the U.S. Navy, was sentenced in federal court today to 24 months in custody for stealing more than $2.5 million worth of goods from the Navy warehouse where he worked. Gutierrez was also ordered to forfeit $57,656.69 and pay $2,536,293.63 in restitution to the United States Navy.
Sentencing documents reflect that Gutierrez began stealing from the warehouse for his own personal gain a few months after he started working there. For approximately nine months, between July 2018 and April 2019, Gutierrez advertised items from the warehouse for sale online, including through such websites as eBay, and then allowed private individuals into the MSC warehouse yard during work hours and after hours to take the government property, load it onto trucks, and haul it away.
In February 2019, Gutierrez permitted a utility truck and a tractor-trailer to enter the MSC warehouse after hours and drive away with more than $1 million in stolen copper nickel tubing.
That same month, Gutierrez sold numerous Caterpillar parts from the warehouse to a company he found online. Once again, Gutierrez allowed a private freight company to enter the MSC warehouse yard and load the items, which filled four pallets. He created fraudulent government paperwork to conceal his criminal activity.
In April 2019, Gutierrez again allowed two individuals to enter the MSC warehouse in broad daylight, and he loaded up their vehicle with stolen government property, accepting thousands of dollars in cash in exchange. The two men were – unbeknownst to Gutierrez – undercover agents. At the time, Gutierrez told the undercover agents that “I’m looking at volume. I’m not looking at making a million-dollar profit, I’m looking at volume. I’m trying to keep this stuff going, that’s how I get paid.”
Gutierrez was paid for the stolen goods in cash and via PayPal. Gutierrez admitted in his plea agreement that the total aggregate value of the items that he stole from the United States and resold for personal profit was $2,536,293.63.
“This defendant was running a massive and brazen scheme that fleeced the Navy of millions of dollars,” said U.S. Attorney Robert Brewer. “This conduct was outrageous and illegal, and he is now appropriately going to prison for it. The excellent work of prosecutor Michelle Wasserman and NCIS agents brought justice for the Navy and taxpayers.”
“NCIS exposed Mr. Guiterrez's scheme to steal and sell government property,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “This result highlights how critically important it is for our military personnel and family members to remain vigilant and always report suspected fraud. It also represents an outstanding effort by Special Agents assigned to the NCIS Southwest Field Office to bring a criminal to justice for threatening Navy readiness and wasting taxpayer money.”
DEFENDANT Case Number 19CR4552-W
Herbert Gutierrez Age: 54 San Diego, CA
SUMMARY OF CHARGES
Theft of Government Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and $250,000 fine
AGENCY
Naval Criminal Investigative Service
Former Camden County Public Service Authority Executive Director sentenced to federal prison for tax evasionRead the Press Release
BRUNSWICK, GA: The former executive director of the Camden County Public Service Authority is going to federal prison for misappropriating funds intended for payment of employees’ federal payroll taxes.
Willliam Brunson, 53, of Kingsland, Ga., was sentenced to 32 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to one count of Tax Evasion, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Judge Wood also ordered Brunson to pay restitution of $677,768.40 and to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Such blatant theft as the scheme perpetrated by William Brunson strains the already fragile trust in public service,” said U.S. Attorney Christine. “This investigation and the ensuing prison sentence should be a stark reminder to other public servants that they are accountable to the taxpayers they serve.”
According to court documents and testimony, Brunson was responsible for paying over to the Internal Revenue Service employment taxes on behalf of the Public Service Authority (PSA). Federal taxes were withheld from employees’ paychecks from 2014 to 2016, but Brunson failed to remit more than $677,000 that was due to the IRS. In addition to not filing his personal tax returns during that period, Brunson also used a Camden County PSA credit card and other funds for his personal use, including the purchase of antique cars and car parts.
Brunson was terminated from the PSA in May 2018 after an audit of PSA finances and an investigation by the Georgia Bureau of Investigation (GBI).
“It is our hope that holding Brunson accountable for his greed will help regain some of the public’s trust that was eroded by his actions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “When public officials abuse their positions of trust by stealing from the taxpayers they serve, it is a priority for the FBI and our federal, state and local partners to root them out and bring them to justice.”
“Government officials should be held to a higher ethical standard and it was obvious that Brunson chose greed over doing the honest thing,” said James E. Dorsey, IRS Criminal Investigations, Special Agent in Charge, Atlanta Field Office. “IRS-CI will continue to put resources on these investigations in an effort to rebuild public trust in our government officials.”
“This investigation and outcome shows that no one is above the law,” said GBI Director Vic Reynolds. “Trust and accountability is of utmost importance when it comes to handling public funds. Public servants will be held accountable for their actions should that trust be violated.”
The case was investigated by the IRS, the FBI and the GBI, and prosecuted by the U.S. Attorney’s Office for the Southern District of Georgia.
Florida Man Pleads Guilty to Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Florida man pled guilty to participating in a drug conspiracy that spanned several states, announced United States Attorney Mike Stuart. Thomas Drew Bess, 39, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine.
“Florida to LA to WV. Keeping this shipment of 96% pure and amazingly powerful meth from hitting the streets is a big win for law enforcement, the people of Charleston and all West Virginians,” said United States Attorney Mike Stuart. “We are using every available resource to stem the tide of meth that is coming into our communities. Great work by the Postal Inspection Service, DEA, the National Guard and my office. That’s called real teamwork.”
On September 1, 2019, Bess flew from Florida to Los Angeles, California. While there, he mailed a package that contained approximately 18.25 pounds of methamphetamine to Charleston. The package was picked up by a John Harvey Bush, Jr., and the methamphetamine was intended to be sold in the Charleston area. The U.S. Postal Inspection Service (USPIS) intercepted the package on September 4, 2019. Upon obtaining a search warrant for the package, they discovered over 18 pounds of methamphetamine inside. The majority of the methamphetamine was removed, except for 11.2 grams, which remained inside the package in order to conduct a controlled delivery. As law enforcement was delivering the package, the National Guard provided helicopter surveillance of the area. Bush was recorded driving to the residence and taking the package from the front porch. He then drove the package to his girlfriend’s residence, where he unloaded and opened the package, and discovered only 11.2 grams of methamphetamine. He attempted to flush the shipping label to the package. Shortly afterwards, law enforcement knocked on the front door of the girlfriend’s residence. Bush saw them through the window and was arrested as he tried to flee out the back door. Bush’s cell phone was seized and searched pursuant to a federal search warrant, where it became apparent that Bess had told Bush of the contents of the package, its tracking number, and when it would be arriving.
The methamphetamine was sent to the Drug Enforcement Administration (DEA) laboratory, where it tested 96% pure. Bess was subsequently arrested in Florida and brought to the Southern District of West Virginia on an indictment. Bess’ phone was searched pursuant to a federal warrant, wherein evidence of drug trafficking and distribution were discovered.
Bess faces life in prison when sentenced on December 8, 2020. Bush pled guilty on January 27, 2020. He faces up to 40 years in prison when sentenced on September 21, 2020.
The Drug Enforcement Administration (DEA), the United States Postal Service - Office of Inspector General, and the United States Postal Inspection Service (USPIS) conducted the investigation. The West Virginia National Guard assisted law enforcement with the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
The Organized Crime Drug Enforcement Task Force (OCDETF) is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the keystone of the Attorney General’s strategy to reduce the availability of illicit narcotics throughout the United States using a prosecutor-led, multi-agency approach to combat transnational organized crime. OCDETF agents and prosecutors nationwide handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States. OCDETF facilitates joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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. 2:20-cr-00024.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Florence Landlord Accused of Housing DiscriminationRead the Press Release
EUGENE, Ore.—The U.S. Attorney’s Office announced today that it has filed a lawsuit in federal court alleging that the owner of residential rental housing in Florence, Oregon, made discriminatory statements, preventing a foster parent from applying to rent a home, in violation of the federal Fair Housing Act.
“Under the Fair Housing Act, owners and managers of rental housing must ensure their properties are open to families with children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Our office will vigorously enforce this important civil rights protection to provide relief for families victimized and deter future discrimination.”
The lawsuit, filed in the U.S. District Court in Eugene, alleges that Kathie Carmer, 74, of Florence, engaged in unlawful familial status discrimination in connection with a single family home in Florence that she had advertised for rent on Craigslist. The civil complaint alleges that a prospective tenant called Carmer in November 2018 to inquire about the rental and disclosed that she was looking for a residence suitable for herself and her four foster children. Carmer then allegedly made discouraging and discriminatory comments to the prospective tenant about her intent to leave the children with a babysitter while she is working, a carpeted house not being suitable for children, and the tenant not being a good fit for the rental. Carmer did not provide the prospective tenant an opportunity to continue with a rental application.
The U.S. Department of Housing and Urban Development (HUD) investigated this case after receiving a complaint from the prospective tenant. The department concluded that there is reasonable cause to believe that Defendant violated the Fair Housing Act.
The filed complaint asserts three allegations against Carmer of discrimination against families with children, based upon the findings of HUD’s investigation: (1) refusing to rent or to negotiate for the rental of the advertised property because of familial status; (2) discriminating in the terms, conditions, or privileges of the rental of a dwelling because of familial status; and (3) making discouraging and other discriminatory statements to a potential renter with children.
The lawsuit seeks monetary damages, a civil penalty, and a court order barring future discrimination and harassment. While the complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The United States is being represented in this matter by Adrian Brown, Assistant U.S. Attorney for the District of Oregon.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe they may have been victims of familial status discrimination or other types of housing discrimination at rental dwellings owned or managed by Carmer, or who have other information that may be relevant to this case, are asked to contact the United States Attorney’s Office at 503-727-1000 and request to speak to the Civil Rights Coordinator.
Felon Pleads Guilty to Gun Possession After Police ChaseRead the Press Release
Memphis, TN – Patrick Vaughn, 35, has pleaded guilty to being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to information presented in Court, on January 4, 2019, detectives with the Memphis Police Department's Violent Crimes Unit were conducting surveillance on a possible carjacking suspect, Patrick Vaughn, driving a black 2006 Kia Amanti near Poplar Ave and Hollywood Street. Attempting to avoid the surveillance, Vaughn made several U-turns on Poplar; detectives then called for additional patrol officers.
Officers attempted to stop the vehicle, but Vaughn continued to flee on Poplar at a high rate of speed; he ran several red lights while striking other vehicles. Vaughn then left his vehicle and fled on foot for a short distance before being taken into custody. During the search of the vehicle, officers recovered a black Ruger .380 caliber handgun.
Vaughn later waived his Miranda rights and admitted to being a felon in possession of a handgun. As a result of his prior felony convictions, including a carjacking offense in 2008, Vaughn is prohibited by federal law from possession of firearms or ammunition.
The defendant pled guilty on August 24, 2020, before U.S. District Court Judge John T. Fowlkes Jr. A sentencing hearing is scheduled on November 18, 2020, where Vaughn faces a sentence of up to 10 years in federal prison. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms such as convicted felons present a known and immediate risk of violence to the community at large. In order to protect public safety and uphold the rule of law, we must remove firearms from the hands of prohibited persons and remove dangerous felons from our streets."
This case was investigated by the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Special Assistant U.S. Attorney Samuel D. Winnig is prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
###
Federal Court Permanently Shuts Down Texas Tax Return PreparerRead the Press Release
A federal court permanently enjoined Siza Mhlanga, d/b/a Tax Refund Express, Camp Bowie Tax, Camp Bowie Tax Services, Tax Refund Company, and United Tax Refunds, of Fort Worth, Texas, from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. Mhlanga consented to the relief.
The complaint against Mhlanga, which was filed in the U.S. District Court for the Northern District of Texas, alleges that Mhlanga repeatedly prepared returns that report fake deductions for charitable donations, business losses, and fabricated education and energy credits to generate tax refunds. For example, the complaint alleges that Mhlanga prepared a customer’s 2017 tax return on which Mhlanga fabricated a business for the customer and reported a fake business loss of $21,720. The complaint alleges that, over the course of tax years 2017 and 2018, Mhlanga filed hundreds of returns, and that by repeatedly understating his customers’ tax liabilities, Mhlanga caused the United States to lose substantial tax revenue.
“The Justice Department will pursue those who would abuse our nation’s tax laws,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ex-Company Controller Who Embezzled $2.8 Million from Employer and Cheated on His Taxes Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
LOS ANGELES – A former controller for a Burbank-based commercial printing company was sentenced today to 87 months in federal prison for embezzling $2.8 million from his employer and failing to report the stolen funds as income to the IRS.
Sean Edin Talaee, 63, of Glendale, was sentenced by United States District Judge Otis D. Wright II, who also ordered him to pay $2,933,585 in restitution. Talaee
Talaee pleaded guilty in May 2019 to one count of mail fraud and one count of subscribing to a false income tax return.
From October 2015 to June 2018, Talaee worked as the controller overseeing the accounting and tax payments of Printograph, Inc., a commercial printing company that does business as GotPrint.com. During this time period, Printograph made a series of periodic estimated tax payments based on the company’s expected gross income, deductions, and credits for each year. Talaee enabled these estimated tax payments by bringing company checks to Printograph’s president and sole owner – who had signing authority for the company’s bank account – for her signature prior to their submission to the IRS.
On at least eight separate occasions, Talaee obtained company checks from Printograph’s president but instead inserted his own taxpayer information when filling out the IRS voucher forms that accompanied the estimated tax payments. By using his own information – and not the company’s – Talaee was able to claim the estimated tax payments for himself and caused the IRS to credit the payments to his own personal account, thereby embezzling the funds from Printograph and effectively laundering the embezzled proceeds through the IRS.
During the course of the scheme, Talaee embezzled $2.8 million from his employer and falsely claimed estimated tax payments in that amount for the years 2015, 2016 and 2017. These estimated tax payments allowed Talaee to receive a total of $2,778,994 in fraudulent tax refunds for these years, court papers state. Talaee failed to report the embezzled money as income for these tax years, causing a total tax loss of $740,085.
“(Talaee) embezzled a significant amount of money from Printograph and exposed the company – and its owner personally – to potential tax liability stemming from his theft of the company’s tax payments,” prosecutors wrote in their sentencing memorandum. “He did so repeatedly over the course of two years for his own personal gain.”
IRS Criminal Investigation and the FBI investigated this matter.
This case was prosecuted by Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section.
Eufaula Man Sentenced to 78 Months, $3,000 Restitution for Possession of Material Involving Sexual Exploitation of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Quinlan Navarrette, age 28, of Eufaula, Oklahoma was sentenced to 78 months’ imprisonment, 10 years of supervised release, and pay $3,000.00 in restitution for Possession Of Certain Material Involving The Sexual Exploitation Of A Minor, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2). Once released from incarceration, the Defendant must register as a sex offender, complete sex offender treatment and comply with conditions of that treatment including polygraphs to determine compliance, the Defendant may not possess any type of pornography, and he must submit to examinations of his computers. The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment alleged that beginning in or about January 2018, and continuing until on or about May 2, 2018, in the Eastern District of Oklahoma, the defendant knowingly possessed and accessed with the intent to view, and attempted to possess and access with the intent to view, a visual depiction of a prepubescent minor under the age of twelve engaging in sexually explicit conduct, and said visual depiction was of such sexually explicit conduct and had been transported in interstate commerce by computer.
United States Attorney Brian J. Kuester said, “The horrific acts committed against children by the criminals who produce child pornography is made profitable by the criminals that purchase, possess, and share it. I commend the FBI for its diligent efforts to identify, investigate, and bring to justice those who are involved in despicable acts against children.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
Eagle Butte Man Sentenced for Firearm Charges and Voluntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Voluntary Manslaughter and Discharging a Firearm During and in Relation to a Crime of Violence was sentenced on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Dante Johnson was sentenced to 15 years in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
An Information was filed against Johnson on January 14, 2019. He pled guilty on June 1, 2020.
The conviction stemmed from an incident on January 12, 2019, when Johnson fired a gun and people at a neighboring house heard it. Upon hearing the gunshot, the victim exited the residence to see what was going on. As the victim stepped forward, Johnson pointed a handgun at him and shot the victim in the chest. The victim collapsed and died due to the gunshot wound.
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. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Federal Bureau of Investigation and Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshals Service.
DUSA Pharmaceuticals to pay U.S. $20.75 million to settle False Claims Act allegations relating to promotion of unsupported drug administration processRead the Press Release
WASHINGTON – Massachusetts-based DUSA Pharmaceuticals Inc. (DUSA), a subsidiary of Sun Pharmaceutical Industries Inc. (Sun Pharma), has agreed to pay the United States $20.75 million to resolve allegations that DUSA caused physicians to submit false claims to Medicare and the Federal Employee Health Benefit Program (FEHBP) by knowingly promoting an administration process for the drug Levulan Kerastick that contradicted the product instructions approved by the U.S. Food and Drug Administration (FDA) and was unsupported by sufficient clinical evidence.
“The department is committed to protecting taxpayer-supported health care programs from fraud and abuse,” said Acting Assistant Attorney General Ethan P. Davis for the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they knowingly promote ineffective uses of their products that undermine patient care or waste program funds.”
“While this scheme to provide false instructions on the use of its product may have resulted in more sales and bigger profits, it also meant customers endured the frustration of being repeatedly subjected to less effective treatments to try to get their skin lesions to clear,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “This investigation seeks to restore money to taxpayers and discourage those who put profits over effective treatment.”
“Drug makers that push the inappropriate use of their products undermine the health of patients and the financial integrity of federal health care programs, said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Our oversight agency, working closely with our law enforcement partners, will continue to thoroughly investigate those who engage in such schemes.”
“The OPM OIG will always seek to hold accountable those prioritizing profits over patient health and safety,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management (OPM) OIG. “This settlement demonstrates the commitment of our investigative staff and partners at the Department of Justice to combat health care fraud against the FEHBP.”
Levulan Kerastick is a prescription topical solution approved by the United States Food and Drug Administration (FDA) for the treatment of minimally to moderately thick actinic keratosis (AKs) of the face or scalp. At all relevant times, the “Dosage and Administration” section of the drug’s FDA-approved instructions described a two-stage process involving application of the topical solution to the target lesions and then, following an incubation period of 14 to 18 hours, illumination of the target lesion with blue light.
The United States alleged that, by January 2014, senior management at both DUSA and Sun Pharma knew that administration of Levulan Kerastick employing short incubation periods ranging from one to three hours resulted in AK clearance rates significantly lower than those achieved in clinical trials using 14 to 18-hour incubation. Nonetheless, between January 2014 and December 2016, DUSA allegedly encouraged physicians to use these demonstrably less effective short incubation periods by using, among other things, paid physician speaker programs, paid physician peer-to-peer discussions, promotion by DUSA’s sales force, and the dissemination of incomplete or misleading responses to questions from prescribing doctors. The department further alleged that DUSA failed to inform physicians that administering the drug using short incubation periods resulted in significantly lower AK clearance rates than achieved with the longer incubation period described in the FDA-approved instructions, and, in some instances, the company falsely stated that AK clearance rates were the same for the shorter and less effective incubation periods.
As part of the settlement, DUSA and its parent company, Sun Pharma, have agreed to enter into a Corporate Integrity Agreement with HHS-OIG. That agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to this matter.
The settlement with DUSA resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by Aaron Chung, who formerly worked for DUSA as a sales representative. As part of today’s resolution, Chung will receive approximately $3.5 million.
The settlement with DUSA was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington and the Commercial Litigation Branch (Fraud Section) of the Justice Department’s Civil Division, with assistance from HHS’ Office of Counsel to the Inspector General, FDA’s Office of Chief Counsel, and HHS’ Office of General Counsel.
The settlement was handled by Assistant United States Attorneys Kayla Stahman for U.S. Attorney’s Office, Western District of Washington and Breanna Peterson of DOJ’s Civil Division Commercial Litigation Branch.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Chung v. DUSA Pharmaceuticals, Inc., No. 16 cv 1614-JLR.
###
DUSA Pharmaceuticals to Pay U.S. $20.75 Million to Settle False Claims Act Allegations Relating to Promotion of Unsupported Drug Administration ProcessRead the Press Release
Massachusetts-based DUSA Pharmaceuticals, Inc. (DUSA), a subsidiary of Sun Pharmaceutical Industries, Inc. (Sun Pharma), has agreed to pay the United States $20.75 million to resolve allegations that DUSA caused physicians to submit false claims to Medicare and the Federal Employee Health Benefit Program by knowingly promoting an administration process for the drug Levulan Kerastick that contradicted the product instructions approved by the U.S. Food and Drug Administration (FDA) and was unsupported by sufficient clinical evidence.
“The department is committed to protecting taxpayer-supported health care programs from fraud and abuse,” said Acting Assistant Attorney General Ethan P. Davis for the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they knowingly promote ineffective uses of their products that undermine patient care or waste program funds.”
“While this scheme to provide false instructions on the use of its product may have resulted in more sales and bigger profits, it also meant customers endured the frustration of being repeatedly subjected to less effective treatments to try to get their skin lesions to clear,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “This investigation seeks to restore money to taxpayers and discourage those who put profits over effective treatment.”
“Drug makers that push the inappropriate use of their products undermine the health of patients and the financial integrity of federal health care programs, said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Our oversight agency, working closely with our law enforcement partners, will continue to thoroughly investigate those who engage in such schemes.”
“The OPM OIG will always seek to hold accountable those prioritizing profits over patient health and safety,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management (OPM) OIG. “This settlement demonstrates the commitment of our investigative staff and partners at the Department of Justice to combat health care fraud against the FEHBP.”
Levulan Kerastick is a prescription topical solution approved by the United States Food and Drug Administration (FDA) for the treatment of minimally to moderately thick actinic keratosis (AKs) of the face or scalp. At all relevant times, the “Dosage and Administration” section of the drug’s FDA-approved instructions described a two-stage process involving application of the topical solution to the target lesions and then, following an incubation period of 14 to 18 hours, illumination of the target lesion with blue light.
The United States alleged that, by January 2014, senior management at both DUSA and Sun Pharma knew that administration of Levulan Kerastick employing short incubation periods ranging from one to three hours resulted in AK clearance rates significantly lower than those achieved in clinical trials using 14 to 18-hour incubation. Nonetheless, between January 2014 and December 2016, DUSA allegedly encouraged physicians to use these demonstrably less effective short incubation periods by using, among other things, paid physician speaker programs, paid physician peer-to-peer discussions, promotion by DUSA’s sales force, and the dissemination of incomplete or misleading responses to questions from prescribing doctors. The department further alleged that DUSA failed to inform physicians that administering the drug using short incubation periods resulted in significantly lower AK clearance rates than achieved with the longer incubation period described in the FDA-approved instructions, and, in some instances, the company falsely stated that AK clearance rates were the same for the shorter and less effective incubation periods.
As part of the settlement, DUSA and its parent company, Sun Pharma, have agreed to enter into a Corporate Integrity Agreement with HHS-OIG. That agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to this matter.
The settlement with DUSA resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by Aaron Chung, who formerly worked for DUSA as a sales representative. As part of today’s resolution, Chung will receive approximately $3.5 million.
The settlement with DUSA was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington and the Commercial Litigation Branch (Fraud Section) of the Justice Department’s Civil Division, with assistance from HHS’ Office of Counsel to the Inspector General, FDA’s Office of Chief Counsel, and HHS’ Office of General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Chung v. DUSA Pharmaceuticals, Inc., No. 16 cv 1614-JLR.
Cross Lanes Woman Sentenced to More than 15 Years for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes woman was sentenced to more than 15 years in prison for a drug crime, announced United States Attorney Mike Stuart. Brandi Martin, 35, was sentenced to 188 months in prison and five years of supervised release for possession with intent to distribute five grams or more of methamphetamine.
“Deadly - six pounds of 96% pure meth,” said United States Attorney Mike Stuart. “Thanks to the great work of our law enforcement partners, the package was intercepted before Martin had a chance to distribute it. Meth-related overdose deaths have been on the rise in our communities.”
On January 25, 2018, law enforcement intercepted a package of approximately six pounds of methamphetamine headed for Martin’s address. On January 26, 2018, law enforcement obtained a search warrant for Martin’s residence. Officers executed the warrant and found Martin as she was attempting to flush 19 grams of cocaine, 73 grams of methamphetamine and heroin. These drugs were recovered from the toilet and were sent away for forensic analysis. The drugs were confirmed for their substance and purity. The methamphetamine in the toilet proved to be 96% pure. The six pounds of methamphetamine also was 96% pure. Martin ultimately admitted that she intended to distribute the methamphetamine she was attempting to flush. Two handguns also were recovered from her residence.
Martin has a previous federal felony conviction for the distribution of cocaine.
The Drug Enforcement Administration (DEA) and United States Postal Inspection Service (USPIS) conducted the investigation as part of an Organized Crime Drug Enforcement Task Force. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
The Organized Crime Drug Enforcement Task Force (OCDETF) is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the keystone of the Attorney General’s strategy to reduce the availability of illicit narcotics throughout the United States using a prosecutor-led, multi-agency approach to combat transnational organized crime. OCDETF agents and prosecutors nationwide handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States. OCDETF facilitates joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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. 19-CR-00209.
Follow us on Twitter: SDWVNews and USAttyStuart
###