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2 October 2020
Former Client Relationship Manager at Bank of America Pleads Guilty to Embezzling from Client CompanyRead the Press Release
BOSTON – A former client relationship manager at Bank of America pleaded guilty today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.
Waqas Ali, 31, of Abington, pleaded guilty to wire fraud and unlawful monetary transactions before U.S. District Court Chief Judge F. Dennis Saylor IV, who scheduled sentencing for Feb.1 2021. Ali was charged in August 2020.
Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account.
Ali used over $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former Claims Specialist at Social Security Administration Sentenced to 4 Years in Prison for Misappropriating $732,000 in Fraudulent BenefitsRead the Press Release
CHICAGO — A former claims specialist for the U.S. Social Security Administration was sentenced today to four years in federal prison for pocketing $732,382 in fraudulent benefits.
ANNE AROSTE worked as a claims specialist at the SSA’s field office in Aurora. Aroste was responsible for processing applications for Social Security benefits via the agency’s electronic records system. From 2013 to 2018, Aroste used the Social Security earnings records of deceased workers to create fraudulent applications for benefits. She then used her employee credentials to approve the applications and route the payments to bank accounts she controlled.
Aroste used the fraud proceeds to make credit card payments, mortgage payments, and car loan payments, including payments for a 2015 Mercedes-Benz sport-utility vehicle. She also used fraud proceeds to purchase clothing, groceries, jewelry, and cosmetics.
Aroste, 42, of Montgomery, Ill., pleaded guilty last year to charges of wire fraud and aggravated identity theft. U.S. District Judge Manish S. Shah imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gail S. Ennis, Inspector General of Social Security; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
“In committing this crime, Aroste betrayed the public trust and stole from a program designed to assist the most vulnerable members of our community,” Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum. “Viewing her access to sensitive personal information as an opportunity to enrich herself, Aroste abused her employment position in order to steal people’s identities and defraud her employer.”
“SSA possesses the most sensitive and personal information for almost every person in this country, and SSA employees have a fundamental duty to protect that information,” said Inspector General Ennis. “We take any violation of the public trust very seriously, and we will continue to work with SSA to identify and root out suspected employee fraud. I want to thank the U.S. Attorney’s Office for its support of these investigations and its efforts to bring them to a successful resolution.”
“We are pleased at the outcome of this case,” said Special Agent-in-Charge Mills. “The Diplomatic Security Service is committed to making sure those who commit identity theft and abuse their positions face the consequences of their actions.”
Former Billings coal mining official sentenced to prison for $20 million wire fraud scheme, false kidnappingRead the Press Release
MISSOULA — A former Billings coal mining official who admitted defrauding companies of more than $20 million and lying to investigators about being kidnapped was sentenced today to five years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Larry Wayne Price, Jr., 40, pleaded guilty in December 2018 to three counts of wire fraud, conspiracy to commit money laundering and false official statement.
U.S. District Judge Dana L. Christensen presided. Price was released and allowed to report to prison.
Restitution will be determined at a later date.
"The defendant's crimes resulted in staggering financial losses and harm to many people, including some who lost their entire life's savings, all so he could live in luxury. Today's sentence is a warning to anyone considering looking for 'easy money' from others: You will be caught and you will go to prison. This case also serves as a reminder to all investors to be sure to do thorough due diligence before investing," U.S. Attorney Alme said.
The prosecution said in court documents that from October 2016 until April 2018, Price embezzled about $20,321,134 from three coal-related companies. Price was vice president of surface activities at Signal Peak Energy and also operated a private business called 3 Solutions, LLC, whose primary purpose was to supply chemicals to Signal Peak Energy.
Price defrauded three coal-mining related firms: Ninety M, LLC, a Wyoming company of investors looking to invest in coal mining projects; Three Blind Mice, LLC, another Wyoming company with investors seeking to invest in mining; and Signal Peak Energy.
Based on his reputation as a coal mining expert, Price convinced Three Blind Mice to lend him $7.5 million, saying that 3 Solutions had a contract with a Pennsylvania coal company to install coal mining equipment. Price proposed that Three Blind Mice lend him the $7.5 million for expenses, and he would repay $11 million on Jan. 31, 2018. Three Blind Mice signed an unsecured promissory note and wired 3 Solutions the funds. Price defaulted on the loan. There was no contract between 3 Solutions and a Pennsylvania coal mine. Instead, Price spent the $7.5 million on unrelated expenses.
In another scheme, Price convinced Ninety M’s investors to appoint him as a company representative to help it buy and develop a coal mining property in Tazewell, VA, and to help develop other coal-related ventures. Price engaged in a series deals with other companies on behalf of Ninety M in which he solicited about $13.5 million from the firm, of which $10,475,000 was fraudulently obtained.
Meanwhile, as an employee of Signal Peak Energy, Price fraudulently induced the company to buy coal-related equipment from a firm knowing that the firm would not actually provide the equipment. The firm funneled the money to Price through a bank account registered to 3 Solutions. The scheme defrauded Signal Peak Energy of about $2,396,134.
In April 2018, the Ninety M investors began to question some of the transactions involving Price and had confronted him on the telephone. By then, Price had moved back to Virginia, his former residence.
On April 18, 2018, Price learned Ninety M was sending representatives to confront him about the fraudulent transactions. Price contacted a woman he knew and agreed to hide at a house the woman had rented.
The same day, Price’s wife reported him missing to Virginia authorities and local law enforcement responded. Late that night, Price was located on the side of the road in Gratton, VA., and was taken to a hospital for treatment and released.
In statements to law enforcement agencies, including the FBI and IRS, Price falsely claimed he had been kidnapped by men who may have been associated with an outlaw motorcycle gang. Price claimed the men took him in a van, threatened him and threw him from the moving vehicle onto the side of the road.
Price knew his statements about his alleged kidnapping were false and that he was not abducted by anyone. The false statements cost the government significant investigative resources and hampered the investigation into Price’s own wrongdoing.
Assistant U.S. Attorneys Colin Rubich, Zeno Baucus and Tim Tatarka, along with Assistant U.S. Attorney Randy Ramseyer, of the Western District of Virginia, prosecuted the case. The FBI, IRS and the Montana State Auditor investigated the case.
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Federal Officials Close Investigation into Alleged Hate Crime in MadisonRead the Press Release
MADISON, WIS. – The United States Attorney’s Office, in conjunction with the Civil Rights Division of the United States Department of Justice and the Federal Bureau of Investigation, announced today that a federal investigation found insufficient evidence to pursue federal criminal civil rights charges for an alleged hate crime reported to have occurred on June 24, 2020, in Madison, Wisconsin. A woman reported that on June 24, 2020, she was attacked while stopped at a stoplight by four men who sprayed her with a flammable liquid, threw a lit object to ignite the fluid, and thereby inflicted burns to her face and neck. Federal and local agents met with the complainant and her representatives to inform them of the findings of the investigation and the decision to close the federal inquiry.
A team of experienced federal prosecutors from the United States Attorney’s Office for the Western District of Wisconsin and the Justice Department’s Civil Rights Division worked with FBI and state and local law enforcement agents to conduct a comprehensive investigation of the events of June 24, 2020. The federal investigation sought to determine whether the evidence was sufficient to prove beyond a reasonable doubt a violation of the federal civil rights statutes, including Title 18, United States Code, Section 249. Section 249 criminalizes willfully causing bodily injury to a person because of that person’s actual or perceived race.
After a thorough investigation into the events of June 24, 2020, including extensive interviews, exhaustive review of traffic and surveillance video, and expert review of digital and forensic evidence, federal investigators determined that there is insufficient evidence to prove that a violation of any federal criminal statute occurred. Further, after reviewing all available evidence, authorities could not establish that the attack, as alleged by the complainant, had occurred. Accordingly, the federal investigation into this incident has been closed based on the lack of evidence.
The Justice Department is committed to investigations of allegations of bias-motivated violence and will continue to devote the resources required to ensure that allegations of civil rights violations are fully and completely investigated. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Hands Down Guilty Verdict Against Charlotte Woman for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – A federal jury handed down a guilty verdict against a Charlotte woman late yesterday, for her involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Donna Graves, 58, was convicted of conspiracy to commit wire fraud and money laundering conspiracy. U.S. District Judge, Max O. Cogburn, Jr. presided over the trial.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Michael E. Stansbury, Acting Special Agent in Charge for the FBI in North Carolina, and Chief Tim W. Ledford of the Mint Hill Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, from January 2015 through September 2019, Graves and her two co-conspirators, Gerald Maxwell Harrison and Elizabeth Robin Williams, engaged in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges.
Trial evidence established that, beginning in February 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Court records show that, over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. According to trial evidence and witness testimony, once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living.
Trial evidence also established that Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and they fraudulently “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison, they pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of more than $300,000.
In May 2020, Williams and Harrison pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine. The interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
In March 2019, U.S. Attorney Murray announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative
Fayetteville Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of A MinorRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Scott Royal, age 38, of Fayetteville, Arkansas, was sentenced today to 120 months in federal prison without the possibility of parole followed by 15 years of supervised release on one count of Attempted Enticement of a Minor to Engage in Illegal Sexual Activity. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in September of 2019, Homeland Security Investigations (HSI), the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force, the Arkansas State Police, and several local law enforcement agencies conducted a joint operation to target online sexual predators in Northwest Arkansas. As part of the operation, undercover law enforcement investigators placed multiple advertisements on various online websites and mobile applications representing themselves to be minors.
On September 18, 2019, an individual who called himself Jim Bass (later identified as Royal) responded to a Craigslist advertisement and began emailing with an undercover law enforcement officer who was posing as a 14-year-old female. Over the course of six days, Royal exchanged over 100 emails with the 14-year-old persona, in which he discussed performing various sexual activities with the purported minor. Royal also arranged a meeting with the purported 14 year old for a sexual encounter. The following day, Royal was arrested upon arriving at the predetermined meeting location.
Royal was indicted by a federal grand jury in October of 2019, and entered a guilty plea in February of 2020.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force, and the Arkansas State Police. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Father and Son Charged in Relation to Scheme to Transport Minor Between Croatia and Florida for the Purpose of Engaging in Sexual ConductRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Jordan Jysae Pulido (26, Trinity) with enticement and coercion of a minor traveling out of the country to engage in illicit sexual conduct, and transporting a minor into the country to engage in sexual activity. Pulido and his father, Roberto Santana Jimenez (61, Trinity) have also been charged with conspiracy to transport a minor into the country to engage in sexual activity. If convicted on all counts, Pulido and Jimenez face a minimum mandatory penalty of 10 years, and up to life, in federal prison. The indictment also notifies Pulido and Jimenez that the United States intends to forfeit electronic devices, which are alleged to have been used in the commission of the offense.
According to the indictment, for nearly a year, Pulido used the internet to entice and coerce a minor victim, under the age of 16, to engage in sexual activity with him. In June 2018, Pulido traveled from Florida to Croatia for the purpose of engaging in illicit sexual conduct with the victim. In the month that followed, Pulido and his father, Jimenez, conspired to transport the victim from Croatia to Florida, again so that Pulido could engage in sexual activity with the victim. In July 2018, Pulido transported the victim from Croatia to Florida for the purpose of engaging in sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Florida Department of Law Enforcement, the Pasco Sheriff’s Office, the Koprivnica-Križevac County Police Administration of the Republic of Croatia Ministry of the Interior Criminal Police, and the International Police Organization. The Justice Department’s Office of International Affairs provided investigative assistance. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.gov.
Erlanger Man Sentenced to 150 Months for Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky.- An Erlanger, Ky., man, Justin Frank, 30, was sentenced in federal court on Friday to 150 months in prison, by U.S. District Judge David Bunning, for possession with intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, Frank admitted that on October 25, 2019, law enforcement executed a search warrant at his residence, finding 176.5 grams of methamphetamine and other items consistent with drug trafficking in a safe in his room. On February 7, 2020, law enforcement served an arrest warrant for Frank and found him with an additional 51 grams of methamphetamine, a digital scale, marijuana, and cash.
Frank pleaded guilty in June 2020.
Under federal law, Frank must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA, Detroit Field Division; Christopher Conners, Director of the Northern Kentucky Drug Strike Force; Chief Col. Kyle Rader, Erlanger Police Department; and Chief Spike Jones, Kenton County Police Department, jointly made the announcement.
The investigation was directed by the DEA, Northern Kentucky Drug Strike Force, Erlanger Police Department, and the Kenton County Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Elyria man receives max sentence of 10 years after guilty plea to firearms violationsRead the Press Release
U.S. Attorney Justin Herdman announced today that Joshua T. Grant, age 28, of Elyria, Ohio was sentenced by Judge John R. Adams to a maximum term of 10 years in prison after Grant pleaded guilty to being a felon in possession of a firearm and possession of a firearm by a person with a prior misdemeanor domestic violence conviction.
“We have no tolerance for domestic violence offenders who possess and use firearms illegally,” said U.S. Attorney Justin Herdman. “This sentence, the maximum allowable under federal law, sends an appropriate message to those who stand convicted of domestic violence offenses, even misdemeanors: if you illegally possess or use a gun, you will be held accountable and your next stop is not weeks or months in county jail, but a decade in federal prison.”
“This is another example of how a great working relationship between local and federal agencies can benefit all involved,” said Elyria Police Chief Duane Whitley. “The real winners in this are the citizens of Elyria. I want thank the FBI and the U.S. Attorney’s Office for their help with difficult situations.”
According to court documents, On September 7, 2019, at approximately 1:00 a.m., Elyria Police responded to 120 Portia Court in Elyria for reports of “shots fired.” Upon arrival at the apartment, they found a large amount of blood on the kitchen floor and a victim with a gunshot wound to the chest. The victim was then transported to a hospital and later life-flighted to University Hospital in Cleveland.
Grant, the victim’s boyfriend, was arrested approximately half-mile away, running down the street away from the residence. Officers located a loaded silver and black semiautomatic .380 caliber pistol in his pocket. The officers administered a gunshot residue test, which later revealed the presence of gun powder residue on Grant's hands.
Interviews with those present at the apartment stated that Grant had shot his girlfriend in the chest.
Grant is prohibited from possessing a firearm after having been previously convicted of felonious assault on July 29, 2016 and domestic violence on March 11, 2013 both in the Lorain County Common Pleas Court.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Scott C. Zarzycki.
El Salvadoran Native Pleads Guilty to Federal Charge of Illegally Reentering the United States After Being Convicted of an Aggravated FelonyRead the Press Release
Baltimore, Maryland – Erik Martinez-Melendez, age 24, a native of El Salvador residing in Anne Arundel County, Maryland, pleaded guilty yesterday to illegal reentry of a deported alien after being convicted of an aggravated felony, in this case, second-degree rape.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Field Office Director Francisco Madrigal of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).
According to his guilty plea, Martinez-Melendez is not a citizen of the United States and has no legal status within the United States. In February 2015, Martinez-Melendez pleaded guilty to second-degree rape in the Circuit Court for Anne Arundel County, for having sex with an 11-year-old girl when he was 18 years of age. Martinez-Melendez was sentenced to five years in prison, with all but 18 months suspended and was deported in June 2016, after serving his sentence.
Martinez-Melendez admitted that, after his deportation, he returned to the United States without authority and was apprehended in Maryland by immigration officials in February 2020, after an investigation revealed he was in the United States illegally.
Martinez-Melendez faces a maximum sentence of 20 years in federal prison for illegally reentering the United States after being convicted of an aggravated felony. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Stephanie A. Gallagher has not yet scheduled sentencing.
United States Attorney Robert K. Hur commended ICE-ERO for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Daniel A. Loveland, Jr., who is prosecuting the case.
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East Bay Man Charged with Alleged Multi-Million Dollar Payroll Protection Program FraudRead the Press Release
SAN FRANCISCO – Attila Colar a/k/a Dahood Sharieff Bey, a/k/a Sharieff Dahood Bey, a/k/a Dawud Sharieff Bey Ahed, a/k/a Dawud Azadene, a/k/a Attilla Collan, has been charged in a federal criminal complaint with bank fraud in connection with an alleged scheme to obtain illegally more than $22 million dollars in loans through the U.S. government’s Payroll Protection Program (PPP), announced U.S. Attorney David L. Anderson; FBI Special Agent in Charge John L. Bennett; Federal Reserve System Office of Inspector General for the Board of Governors and the Bureau of Consumer Financial Protection (FRB/CFPB-OIG) Western Region Special Agent in Charge Scott Redington; and Small Business Administration Office of the Inspector General (SBA-OIG) Western Region Special Agent in Charge Weston King. Colar made his initial federal court appearance earlier today before U.S. Magistrate Judge Kandis A. Westmore.
According to the criminal complaint, Colar, 48, of Richmond, submitted three applications between April and June of 2020, on behalf of Hercules-based non-profit All Hands on Deck, Inc. All Hand on Deck is a non-profit that purports to provide housing “to men getting out of prison, food bank services, life and work skills, trainings, resiliency treatment services, prenatal life skills, and a variety of necessary know hows to survive in today’s society.” Colar received over $1.1 million from one of those loans. The complaint separately alleges that six more applications were submitted in that same time period on behalf of two other entities linked to Colar—The Family Investment Group, Inc. and Oversight Security, Inc. The criminal complaint describes how the loan applications are rife with false information, misleading statements, and glaring omissions.
“The Payroll Protection Program is supposed to support everyday Americans suffering economic distress,” said U.S. Attorney Anderson. “The complaint describes the methodical preparation of fraudulent loan applications to deprive the program of $22 million that is sorely needed by the public to endure this national crisis.”
“The COVID-19 pandemic has caused economic suffering for so many families and small businesses. It’s particularly abhorrent when criminals take advantage of this situation for their own greed," said FBI Special Agent in Charge John F. Bennett. "Based on the FBI’s investigation, Mr. Colar appears to have illegally used the Paycheck Protection Program to attempt to fraudulently line his own pockets. The FBI is quickly and carefully investigating all claims of PPP fraud to ensure that American businesses aren’t further victimized during this challenging time.”
“We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic,” said Special Agent in Charge Redington.
“Fraudsters are tireless and brazen in their fraudulent efforts to steal from taxpayers for their selfish ends,” said Special Agent in Charge King. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March of 2020 to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
The complaint alleges Colar prepared numerous loans for submission through the PPP. One such application, submitted in June 2020, requested $2 million from a bank in Salt Lake City, Utah. That loan was ultimately funded in the amount of $1,113,112. The complaint alleges the application contained false information including bogus employee names, false payroll records, and fraudulent tax documents. For example, the application was supported by IRS Forms 941 that purported to establish All Hands on Deck employed 45 people in the third quarter of 2019 and 81 people in both the fourth quarter of 2019 and the first quarter of 2020. Nevertheless, the names of the purported employees not only included one of Colar’s aliases, it also included two contractors and several current and former residents of All Hands on Deck, none of whom could support the information in the IRS forms. In addition, the application contained direct questions pertaining to the background of the principal sponsor; in response Colar allegedly failed to admit he had a criminal record.
Including the successful $2 million loan application submitted on behalf of All Hands on Deck in June, the complaint alleges Colar prepared several other loan applications, the following of which, were actually submitted to banks:
Date Submitted
Applying Entity
Amount requested
April 2020
All Hands on Deck
$2,422,615
May 2020
All Hands on Deck
$1,618,200
June 2020
All Hands on Deck
$2,000,000
June 2020
The Family Investment Group
$3,310,241.05
June 2020
The Family Investment Group
$3,310,000,00
June 2020
Oversight Security, Inc.
$2,893,149.79
June 2020
Oversight Security, Inc.
$2,893,149.79
June 2020
Oversight Security, Inc.
$1,896,063
June 2020
Oversight Security, Inc.
$2,893,147
In sum, Colar is charged with bank fraud, in violation of 18 U.S.C. § 1344. The charge in the complaint is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law. Colar faces a maximum penalty of 30 years in prison and a million dollar fine, if convicted.
Magistrate Judge Westmore ordered Colar released on a $100,000 bond. Colar’s next federal court appearance is scheduled for October 27, 2020, for further proceedings.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI, FRB/CFPB-OIG, and SBA-OIG.
Detroit Man Sentenced to 148 Months for Fentanyl Trafficking ConspiracyRead the Press Release
LEXINGTON, KY- A Detroit, Michigan, man, Dayquan Dejon Johnson, 23, was sentenced in federal court on Friday to 148 months in prison, by Chief U.S. District Judge Danny Reeves, for conspiracy to possess with intent to distribute 40 grams or more of fentanyl and aiding and abetting possession with intent to distribute fentanyl.
According to his plea agreement, Johnson admitted that since at least 2018, he conspired with Dejon Johnson, Melinda Parks, Melissa Shortridge, and others to distribute heroin and fentanyl in the Eastern District of Kentucky.
Johnson pleaded guilty in May 2020.
Johnson’s co-defendants have been sentenced. Dejon Johnson received 46 months and four years of supervised release; Parks received 78 months and five years of supervised release; and Shortridge received 70 months and three years of supervised release.
In addition to the prison sentence, Johnson was ordered to pay a $3,500 fine. Under federal law, Johnson and his co-defendants must serve 85 percent of their prison sentence. Upon his release, Johnson will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Jeffrey T. Scott, Special Agent in Charge, DEA Louisville; made the announcement. The investigation was pursued by DEA, KSP, and the Winchester Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Detroit Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BECKLEY, W.Va. – Cornelius Pope, 24, from Detroit, Michigan, pled guilty today to distribution of fentanyl, announced United States Attorney Mike Stuart.
“Another Detroit drug dealer. Another conviction,” said United States Attorney Mike Stuart. “Pope was selling deadly fentanyl and heroin in the Beckley area. Whether we take drug dealers down one at a time or shutter entire networks, we are removing these poison peddlers from our communities.”
Pope admitted that on November 7, 2018, January 25, 2019, and May 26, 2020, he sold fentanyl and heroin to confidential informants working with the Beckley-Raleigh Drug and Violent Crime Task Force.
Pope faces up to 20 years in prison when he is sentenced on January 22, 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley-Raleigh Drug and Violent Crime Unit. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00085.
Follow us on Twitter: SDWVNews and USAttyStuart
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Department of Justice Files Statement of Interest Supporting Capitol Hill Baptist Church's Efforts to Practice its Faith During COVID-19Read the Press Release
The Justice Department today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights. The Justice Department is committed to defending both of these fundamental freedoms and in supporting all Americans rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Justice Department is committed to upholding all the civil rights protected under the first amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no constitutional or statutory basis for allowing protests and rallies attended by thousands of people, while at the same time silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Delaware County Man Sentenced to 35 Years for Sexually Abusing and Recording the Abuse of a Young Boy, and for Collection of More than 114,000 Images of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Archie Kissling, 25, of Aston, PA, was sentenced to 35 years in prison, 10 years of supervised release, and $39,000 in restitution by United States District Court Judge Jan E. DuBois for multiple child exploitation offenses, stemming from his sexual abuse of a young child for months, and his extensive collection of horrific child pornography. Kissling’s sentence also requires him to register as a sex offender under Megan’s Law.
In July 2019, the defendant pleaded guilty to six counts of manufacturing child pornography, and one count each of transportation and possession of child pornography. The investigation uncovered videos that Kissling had taken of himself sexually assaulting a 7-year-old boy in his care numerous times over at least a four-month period. Among other abuse, Kissling filmed himself masturbating the child, orally raping him, and attempting to sodomize the victim on multiple occasions. When investigators seized the defendant’s phones and online accounts, they uncovered a massive collection of child pornography that showed not only Kissling’s 7-year-old victim, but also more than 114,000 images and videos of some of the most sadistic pornography imaginable. The bulk of his collection featured infants, toddlers, and prepubescent children, primarily boys, who were being sexually abused by adults through digital penetration, and oral and anal rape.
“As federal prosecutors, we see horrific examples of child exploitation and sexual depravity on a routine basis, but this case is in a special category,” said U.S. Attorney McSwain. “Kissling belongs in only one place – prison – and will now spend the next thirty-five years there, where he will be unable to harm any more innocents.”
“Archie Kissling repeatedly sexually abused a little boy and documented it for his own twisted gratification,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His trove of horrific images of that child and others represents an unimaginable level of pain and trauma inflicted on those young victims. Locking Kissling up doesn’t undo that damage, not by a long shot. But it does keep him from hurting anyone else and for that we’re thankful.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, the Darby Township Police Department and the Pinellas County, Florida Sheriff's Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Covington Man Sentenced to 63 Months for Conspiracy to Distribute Crack CocaineRead the Press Release
COVINGTON, Ky. - A Covington man, Robert Copeland, 43, was sentenced in federal court on Friday, to 63 months in prison, by U.S. District Judge David Bunning, after previously admitting to conspiring with others to distribute crack cocaine.
In his plea agreement, Copeland admitted that he conspired with another individual Dennis Duane Free to distribute crack cocaine between October 1, 2018 and April 2, 2019. During this time, law enforcement conducted control buys of crack cocaine from Free.
Copeland pleaded guilty in June 2020. Free, Copeland’s co-defendant, was sentenced in May 2020 and received 132 months in prison and three years of supervised release.
Under federal law, Copeland must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office, jointly made the announcement.
The investigation was directed by the FBI Safe Street’s Task Force. The United States was represented by Assistant U.S. Attorney Wade Napier.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Convicted Felon Sentenced to Prison for Illegally Possessing A FirearmRead the Press Release
Albany, Ga. – A convicted felon with a violent criminal past was sentenced to 84 months in prison after a federal jury found him guilty of possession of a firearm by a convicted felon, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia.
David Earl Butler, 30, of Valdosta was sentenced by U.S. District Judge Louis Sands in Albany federal court on Wednesday, October 1 to 84 months in prison followed by three years supervised release for possession of a firearm by a convicted felon. Butler stood trial in Valdosta federal court in November 2019. The jury took less than an hour to return the guilty verdict. There is no parole in the federal system.
“A violent convicted felon terrorizing the Valdosta community will spend the next seven years in a federal prison for illegally possessing a firearm. We are working with our federal, state and local law enforcement partners to identify similar cases that belong in a federal court, where convicted felons caught brandishing guns will face prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank the Lowndes County Sheriff’s Office, the Georgia Department of Community Supervision and the FBI for their work in this case.”
Defendant Butler was taken into custody by Lowndes County Sheriff’s Office deputies on April 3, 2018, arrested on an outstanding felony warrant for aggravated assault with a deadly weapon and possession of a firearm during the commission of a felony. During a lawful search of the residence where Defendant Butler was taken into custody, deputies found a loaded .40 caliber Desert Eagle handgun and a box of .40 caliber ammunition. Defendant Butler was previously convicted of aggravated assault and terroristic threats in the Superior Court of Lowndes County, Georgia. The Defendant is currently on felony probation in Lowndes County. It is illegal for convicted felons to possess firearms.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, the Georgia Department of Community Supervision and the Lowndes County Sheriff’s Office. Assistant U.S. Attorneys Julia Bowen and Michael Solis prosecuted the case for 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.
Charlotte Man Involved in Two Separate Identity Theft Schemes Pleads Guilty to Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Jamel Johnson, 30, of Charlotte, appeared before U.S. Magistrate Judge David Keesler today, and pleaded guilty to federal charges for his role in two separate schemes involving identity theft, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Johnson was initially indicted on June 19, 2020, on bank and wire fraud conspiracy and aggravated identity theft charges, for his involvement in a scheme to obtain fraudulent bank loans using stolen personal information of identity theft victims. On September 25, 2020, new federal wire fraud charges were filed against Johnson, for using stolen identities to file for, and receive, COVID-19 Unemployment Insurance (UI) benefits.
According filed court documents and statements made at Johnson’s plea hearing today, from August 2019 to June 2020, Johnson and his co-conspirators engaged in a bank loan scheme involving the use of stolen personal identifying information of identity theft victims. Court documents show that, after acquiring the victims’ stolen identities on the internet and elsewhere, the co-conspirators used them to attempt to obtain more than $1,000,000 in fraudulent bank loans and goods.
According to court records, over the course of the investigation into the bank loan scheme, law enforcement discovered that Johnson was also executing a separate scheme involving COVID-19 UI benefits. In this scheme, court records show that, from May 21, 2020 through July 22, 2020, Johnson defrauded the U.S. Department of Labor, the State of Wisconsin, and the State of Arizona, by submitting fraudulent claims for unemployment insurance benefits in the names of identity theft victims. During the relevant time-period, Johnson fraudulently obtained more than $189,912 in fraudulent UI benefits using the compromised identities of approximately 70 victims. According to court records, Johnson directed that payments of the fraudulent UI benefits be made to Green Dot cards, or to bank accounts under Johnson’s control.
Johnson is currently on release pending sentencing. The charge of conspiracy to commit bank and wire fraud carries a maximum prison sentence of 30 years and a $1 million fine. The aggravated identity theft charge carries a minimum prison term of two years, consecutive to any other prison term imposed, and a $250,000 fine. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine.
One of Johnson’s co-defendants in the bank loan scheme, Justin Parks, has also pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft. A sentencing date for Johnson and Parks has not been set. The charges against David Clarke and Mikael Roberts for their alleged involvement in the loan scheme are still pending, and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, and the Charlotte Mecklenburg Police Department for their invaluable assistance.
The prosecution for the government is handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Central City Man Receives 30-Year Sentence for Production of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Robert K. Hopkins, 40, formerly of Central City, Nebraska, was sentenced today in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard for production of child pornography. Hopkins was sentenced to 30 years in prison and a lifetime of supervised release. There is no parole in the federal system.
In December of 2019, a mother reported that she believed her eight-year-old daughter had been the victim of a sexual assault by Hopkins, who had been a family friend. During a forensic interview, the child informed investigators that Hopkins had taken herself and some other children on an outing to a trampoline park in early December. At one point during the outing, Hopkins had taken the victim alone away from the park on an errand. Thereafter, Hopkins drove with the girl out into the country and parked his vehicle on the side of the road. While parked, Hopkins used his cellular phone to take sexually explicit photographs of the girl. Through this and subsequent forensic interviews, the girl additionally indicated that Hopkins had sexually assaulted her on several other occasions stemming back to at least 2018.
A search warrant was executed at Hopkin’s residence and for his electronic devices. An extraction of his cellular phone revealed images as described by the victim which were taken in December of 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations along with the Grand Island Police Department and the Hall County Sheriff’s Department.
Camden County Man Charged with Fentanyl Trafficking and Possession of Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
CAMDEN, N.J. – A Camden County man has been charged with possessing fentanyl with the intent to distribute and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Craig Carpenito announced today.
Tyquan Burrell, 28, is charged by criminal complaint with one count of possession with intent to distribute more than 40 grams of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Burrell is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider by videoconference.
According to documents filed in this case:
On Oct. 1, 2020, law enforcement executing a search warrant at Burrell’s residence located approximately 2,521 wax baggies and three sandwich-sized clear plastic bags containing a total of more than 300 grams of a substance that tested positive for fentanyl, approximately $34,000 in U.S. currency, and a loaded handgun in a bedroom used by Burrell. Burrell was arrested in Cooper River Park in Camden and was in possession of approximately 418 wax baggies containing a substance also believed to be fentanyl.
The possession with intent to distribute charge carries a mandatory minimum prison sentence of five years, a maximum potential penalty of 20 years in prison, and a $5 million fine. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years in prison, a maximum of life imprisonment, and a $250,000 fine.
This investigation and prosecution is part of the Violent Crime Initiative (VCI) in Camden. The Camden VCI was formed in January of 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Camden County Prosecutor’s Office, and the Camden County Police Department for purpose of combatting violent crime in and around the Camden area. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the Camden County Prosecutor’s Office, the Camden County Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the U.S. Marshals, The U.S. Probation Office, the Camden County Sheriff’s Office, the New Jersey State Parole Board, the New Jersey State Police, the Rutgers University Police Department, and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Winslow Township Police Department under the direction of Chief George M. Smith, with the investigation leading to today’s charges. He also thanked the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert L. “Whip” Wilson, special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson, and officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Albuquerque man in court for drug and firearm charges under Operation LegendRead the Press Release
ALBUQUERQUE, N.M. – Toby Randall Walker, 36, appeared in federal court in Albuquerque on Oct. 1 on multiple drug and firearm charges brought under the Department of Justice’s Operation Legend.
According to a criminal complaint, on Sept. 29, agents from the Drug Enforcement Administration encountered Walker and located 1,490 grams of methamphetamine, 53.7 grams of fentanyl and 67 grams of heroin in his vehicle. Agents also located a total of four firearms.
Walker is charged with possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, possession with intent to distribute 40 grams and more of fentanyl, possession with intent to distribute heroin and possession of a firearm in furtherance of drug trafficking. If convicted, Walker faces not less than 10 years and up to life in prison, plus a mandatory five-year consecutive term on the firearm charge.
A criminal complaint is only an accusation. A defendant is considered innocent unless and until proven guilty.
The DEA and the Albuquerque Police Department investigated this case as part of the Department of Justice’s Operation Legend, a coordinated federal and local law enforcement initiative to fight gun and dangerous crime. Assistant U.S. Attorney Sarah Howard is prosecuting the case.
Albany Man Indicted for Trafficking Cocaine from New York City to RensselaerRead the Press Release
ALBANY, NEW YORK – Jamol Franklin, age 48, of Albany, was indicted yesterday for possessing and intending to distribute more than 500 grams of cocaine.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and Chief Sam Dotson, Amtrak Police Department.
According to the indictment and a previously filed criminal complaint, on July 5, 2020, Franklin transported over 500 grams of cocaine from New York City to Rensselaer, New York, with the intention of distributing that cocaine in the Capital Region. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Franklin faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA, New York State Police, and Amtrak Police Department, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
4 Members of Violent Bronx Gang Sentenced in Connection with Multiple Acts of Gun ViolenceRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that four members of the “Jack Boyz” street gang have been sentenced in connection with the October 30, 2018, shooting of an off-duty NYPD officer and other Bronx violence. NAZAE BLANCHE, a/k/a “Zae,” was sentenced yesterday to 14 years in prison. Previously, LEON SMALLS, a/k/a “Smoove,” was sentenced on August 27, 2020, to 15 years in prison; PATRICK AVILA, a/k/a “Pat,” was sentenced on September 24, 2020, to 12 years in prison; and JALEN COLDS, a/k/a “Jay Gunz,” was sentenced on September 29, 2020, to 16 years in prison. All four defendants were sentenced by United States District Judge Valerie E. Caproni. Each defendant previously pled guilty to using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence, which firearm was discharged or brandished, in violation of Title 18, United States Code, Section 924(c).
Acting U.S. Attorney Audrey Strauss said: “From 2017 through 2019, Leon Smalls, Patrick Avila, Jalen Colds, and Nazae Blanche, all members of the Jack Boyz gang, engaged in senseless violence against their gang rivals in the Bronx. Now they face significant prison time for their actions. We thank the NYPD for its outstanding work on this case.”
According to allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
The Jack Boyz is a criminal enterprise involved in committing numerous acts of violence, including shootings, in and around the Bronx. Members and associates of the Jack Boyz engage in violence to retaliate against rival gangs, to promote the standing and reputation of the Jack Boyz, and to protect the gang’s narcotics business. Members and associates of the Jack Boyz enrich themselves by committing robberies and selling drugs.
On October 30, 2018, SMALLS, AVILA, COLDS, BLANCHE, and others engaged in a shootout with gang rivals, during which a nearby off-duty police officer was shot. In addition to this shooting, the defendants each engaged in other acts of violence in the Bronx and Manhattan from 2017 through 2019. As part of their plea agreements, the defendants pled guilty to these additional violent acts. In total, these defendants pled to participating in four additional Bronx shootings in 2017 and 2018, as well as a Manhattan assault and robbery in 2019. Multiple victims were injured during these incidents.
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Ms. Strauss praised the outstanding investigative work of the New York City Police Department.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie Bagliebter, Michael Longyear, and Mathew Andrews are in charge of the prosecution.
18 Pennsylvania Prison Inmates and Accomplices Charged with Fraudulently Obtaining Pandemic Unemployment Assistance FundsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that twelve Chester County Prison inmates and their accomplices were charged federally with fraudulently applying for and obtaining emergency unemployment benefits related to COVID-19. The defendants are charged with submitting false applications claiming that the prison inmates lost jobs as a result of the pandemic and are available to work full-time. All the defendants were arrested and taken into custody this morning or were already in custody.
In addition, Pennsylvania Attorney General Josh Shapiro announced last week that his office brought state charges against six state prison inmates in the Eastern District of Pennsylvania, who fraudulently applied for and obtained the same type of emergency unemployment benefits.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received. In all of the cases, the inmates falsely reported themselves eligible to receive PUA benefits when in fact they did not meet the eligibility requirements -- namely, they were not able to report to a job each day because of their incarceration.
These cases are being prosecuted and investigated by the United States Attorney’s Office and the Pennsylvania Office of Attorney General with assistance from the Chester County District Attorney’s Office and agencies of the Coronavirus Working Group led by the United States Attorney’s Office, including the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Labor – Office of Inspector General.
“These fraudsters – many of whom were already incarcerated for breaking the law - treated a national public health crisis as an opportunity to cash in,” said First Assistant U.S. Attorney Williams. “This callous attitude rips off honest taxpayers who fund relief programs and also makes it much more difficult to provide funds to those who deserve and need them. My Office will do everything in its power to ensure that coronavirus fraud scams are stopped and punished.”
“After announcing our first round of arrests in these COVID unemployment scams, I promised that there were more to come,” said Attorney General Josh Shapiro. “Last week, my office charged 20 more individuals with illegally taking benefits away from hard-working Pennsylvanians who are struggling during this crisis, including six inmates from SCI Phoenix in Montgomery County. These arrests are not the end of our investigation, and I’ll continue working with my colleagues at the federal level to track down those heading these schemes, along with those who are willfully participating and breaking the law.”
“It is despicable that incarcerated people lined their pockets by taking advantage of the COVID-19 financial lifeline given to millions of honest, hardworking Pennsylvanians. Thank you to the U.S. Attorney’s Office of the Eastern District of Pennsylvania for your continuing efforts in fighting for justice,” said Chester County District Attorney Deb Ryan.
“Millions of Americans struggling financially due to job loss from COVID-19 depend on every single dollar of assistance available to them,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “When fraudulent applications wrongly drain those funds, it’s a blow to the folks who truly need help and a blatant theft of taxpayer dollars. Meantime, a word of advice to anyone thinking that scamming the government means easy money — the federal charges announced today can mean hard time, if convicted.”
“During tough economic times like this, it is despicable that people would seek to fraudulently obtain emergency unemployment benefits that were specifically meant for those who lost their jobs and are unable be gainfully employed amid this pandemic,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “We will continue to be relentless in our mission to dismantle these types of illicit scams and bring the criminals who run them to justice.”
“Today’s charges demonstrate the Office of Inspector General’s commitment to combating fraud against the Unemployment Insurance program, which has become increasingly prevalent amid the pandemic. We will continue to work with our law enforcement and state workforce agency partners to pursue individuals who seek to undermine the integrity of the Unemployment Insurance program,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
Descriptions of the cases are below:
Vincent Hazzard, 49, of Coatesville, PA, was charged by Indictment with mail fraud, fraud in connection with emergency benefits, theft of money of the United States, and aiding and abetting. According to the Indictment, in July 2020, the defendant caused multiple individuals to assist him in filing a fraudulent application for PUA funds. The application falsely stated that Hazzard was available for immediate employment, and that he was currently unemployed due to the pandemic, when in fact he was not available for employment due to the fact that he was incarcerated at the Chester County Prison, was not scheduled for release until late September 2020, and was not unemployed due to the pandemic. Hazzard had $1,590 credited to him by means of a prepaid bank card in late July 2020, and he caused others to spend or withdraw almost all of the funds by the end of August in order to avoid having funds left in his account in the event his fraud was discovered. If convicted of all charges, the defendant faces a maximum sentence of 60 years in prison, three years of supervised release, and a $750,000 fine.
Jacob Fulton, 32, and Emily Baier, 26, both of Coatesville, PA, were charged by Indictment with conspiracy to commit mail fraud, mail fraud and fraud in connection with major disaster or emergency benefits, and aiding and abetting. According to the Indictment, between July 12 and August 26, 2020, Fulton and Baier conspired to file claims for PUA benefits on behalf of inmates of Chester County Prison and agreed to keep a portion of the PUA benefits for themselves. Fulton allegedly told Baier that with this scheme, they “can be f******* rich.” The Indictment also alleges that on or about May 11, 2020, Fulton and Baier filed PUA claims for themselves, fraudulently claiming that they are entitled to PUA benefits. If convicted of all charges, Fulton faces a maximum sentence of 90 years in prison, five years of supervised release, and a fine of $2,250,000, and Baier faces a maximum sentence of 120 years in prison, five years of supervised release, and a fine of $2,500,000.
Christopher Hersh, 36, of Avondale, PA, was charged by Indictment with conspiracy to defraud the United States and fraud in connection with major disaster or emergency benefits. According to the Indictment, in July 2020, the defendant caused one of his close relatives to assist him in filing a fraudulent application for PUA funds. The application falsely stated that Hersh was available for immediate employment, that he was currently unemployed due to the pandemic, and that his last day of work had been in November 2019 because he was laid off due to a business closure caused by the pandemic, when in fact he was not available for employment due to the fact that he was incarcerated at the Chester County Prison, had been incarcerated since December 2016, and was not unemployed due to the pandemic. If convicted of all charges, Hersh faces a maximum sentence of 35 years in prison, three years of supervised release, and a $500,000 fine.
Kenneth Huggins, 24, of Coatesville, PA, and Patrice Hawthorne, 46, of Middletown, DE, were charged by Criminal Complaint with conspiracy to commit mail fraud. According to the Complaint, Huggins, an inmate at Chester County Prison, and his mother, Hawthorne, conspired over a series of recorded prison telephone calls to submit a fraudulent application for PUA benefit payments on Huggins’s behalf. The application falsely stated that Huggins was available for immediate employment and that he was currently unemployed due to the COVID-19 pandemic, when in fact he had been incarcerated since January 2020 at Chester County Prison and was not unemployed due to the pandemic. Huggins ultimately received more than $12,000 in unemployment benefits on a prepaid bank card; Hawthorne took custody of that card and withdrew funds for her own benefit. If convicted of all charges, both Huggins and Hawthorne face a statutory maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine.
Biancha Kranzley, 31, of Coatesville, PA was charged by Complaint with fraud in connection with major disaster or emergency benefits. According to the Complaint, in July 2020, the defendant submitted a fraudulent application for benefits on behalf of an individual who, at the time, was incarcerated at the Chester County Prison. The application falsely stated that the applicant was unemployed due to the COVID-19 pandemic but was otherwise available to work, if offered a job. In fact, the applicant had been incarcerated since early 2019. The defendant received a prepaid debit card loaded with more than $13,000 in PUA benefits. She has used or withdrawn more than half of those funds. If convicted of all charges, Kranzley faces a maximum sentence of 30 years in prison, five years of supervised release, and a fine of $250,000.
Jennifer D’Hulster, 37, of Coatesville, Zachary Gathercole, 30, of Sadsburyville, Ashley Harrington, 30, of West Chester, and Anthony Schweitzer, 20, of Coatesville, were charged by Indictment with conspiracy, fraud in connection with emergency benefits and aiding and abetting, and mail fraud. According to the Indictment, in June 2020, D’Hulster fraudulently applied for benefits for Schweitzer, who has been an inmate at Chester County Prison since June 2020, and, in July 2020 applied for benefits for a different inmate who has been incarcerated at State Correctional Institute Phoenixville (SCIP) since March 2020, neither of whom lost a job because of COVID-19. D’Hulster successfully enabled the SCIP inmate to receive unemployment benefits totaling approximately $11,410 credited to the inmate by means of a prepaid bank card. In May 2020, Harrington fraudulently applied for benefits for Gathercole, who has been an inmate at Chester County Prison since August 2019, did not lose a job because of COVID-19, and has not been able to work. Harrington successfully enabled Gathercole to receive unemployment benefits totaling approximately $14,140. Additionally, D’Hulster and Gathercole collected personal identification information for other individuals, including inmates at Chester County Prison, to use to submit additional fraudulent applications for PUA benefits. If convicted of all charges, the defendants face the following maximum sentences: D’Hulster faces 90 years in prison, three years of supervised release, and a $1 million fine; Gathercole faces 140 years in prison, three years of supervised release, and a $1.5 million fine; Harrington faces 70 years in prison, three years of supervised release, and a $750,000 fine; and Schweitzer faces 50 years in prison, three years of supervised release, and a $500,000 fine.
Arthur Johnson, 44, of Coatesville, PA was charged by Complaint with fraud in connection with major disaster or emergency benefits. According to the Complaint, in July 2020, the defendant submitted a fraudulent application for benefits on behalf of an individual who, at the time, was incarcerated at the Chester County Prison. The application falsely stated that the applicant was unemployed due to the COVID-19 pandemic, but was otherwise available to work, if offered a job. In fact, the applicant had been incarcerated since October 2019. The defendant received a prepaid debit card loaded with approximately $13,500 in PUA benefits. All of the funds have been withdrawn. If convicted of all charges, Johnson faces a maximum sentence of 30 years in prison, five years of supervised release, and a fine of $250,000.
In addition to the above, six inmates at State Correctional Institution Phoenix (SCIP), located within the Eastern District of Pennsylvania, were arrested on state charges as part of an ongoing investigation by the Pennsylvania Office of Attorney General in partnership with the U.S. Attorney’s Office: Jermaine Plumer received $18,264 worth of PUA paid out after he provided personal identifying information to non-incarcerated individuals; Rafael Rodriguez received $22,109 worth of PUA paid out after he provided personal identifying information to non-incarcerated individuals; Dwayne Washington received $3,510 worth of PUA paid out after he provided personal identifying information to a non-incarcerated individual; Leroy Barnes was never paid, but he did provide his personal identifying information to a non-incarcerated individual to have them complete a PUA application on his behalf; Andrew Simms was never paid, but he did provide his personal identifying information to a non-incarcerated individual to have them complete a PUA application on his behalf; and Dexter Pitts a/k/a Kevin Perry received $3,150 worth of PUA paid out after he provided his personal identifying information to a non-incarcerated individual.
First Assistant U.S. Attorney Williams, Attorney General Shapiro and District Attorney Ryan thanked law enforcement officials at the Chester County Prison and officials at the Pennsylvania Department of Labor and Industry, the Pennsylvania Department of Treasury and the Pennsylvania Department of Corrections for their important assistance in these cases. The federal cases are being prosecuted by Assistant United States Attorneys Judy Smith, Jeanette Kang, Anthony Wzorek, Jessica Rice, Anita Eve, Chris Mannion, and Melanie Wilmoth.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
1 October 2020
“Father of Identity Theft” Sentenced to 17 Years in Federal PrisonRead the Press Release
Memphis, TN – After a week-long federal jury trial in September 2019, James Jackson, 58, of Memphis, Tennessee, was convicted of 13 counts of mail fraud, aggravated identity theft, access device fraud and theft of mail. Jackson has now been sentenced to 207 months in federal prison. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.
According to the information presented in court, in 2014-2015, Jackson devised a scheme to steal money from banks, financial companies and other individuals. Jackson obtained the personal identifying information of numerous individuals, most of whom were deceased, and used this information to take over the victims’ financial accounts (stock, credit card, and bank accounts). Jackson would search online obituaries and noteworthy articles to discover the identities of recently deceased individuals and then he would research the individuals to determine if they had any credit accounts or financial investment accounts. He would then impersonate the victims (both male and female) and use their information when contacting customer service representatives of banks, credit card companies and financial firms. Jackson would convince the businesses to mail new bank/credit cards to other addresses (vacant homes and hotels in Memphis area) and also caused the sale of over $340,000 of stock out of one victim’s investment account. Jackson recruited another individual to use the cards to withdraw funds from the victim accounts and to purchase gift cards.
On February 27, 2015, Jackson called the Cordova Post Office claiming to be a Charles Fulks and inquired about a credit card package that should have been delivered the day before to 10022 Cameron Ridge Trail. United States Postal Inspectors and members of the Tennessee Highway Patrol Identity Crimes Unit determined this was an imposter because the true Charles Fulks had died on February 2, 2015 and the 10022 Cameron Ridge Trail address was a vacant house at the time. Later, agents watched the package containing credit cards be delivered to the mailbox at 10022 Cameron Ridge Trail. Twelve hours later, agents observed Jackson emerge from a house at 10027 Cameron Ridge Trail and walk across the street to retrieve the credit card package from the mailbox and then went back into his residence. No one answered the door when agents announced their presence. Later, agents noticed smoke coming out of the home. Agents eventually located Jackson in the house pretending to be asleep. Numerous small fires had been set throughout the house in what appeared to be an attempt to destroy evidence. In the home, agents located items associated with identity theft, including documents and a guide entitled "How to Find Anyone and Anything" and computers. A search of Jackson’s computers revealed that he had been researching the deceased victims. This was done through use of numerous online obituary sites and nationwide news articles. In a subsequent search of Jackson’s mother’s house, agents found a box of Jackson’s business cards, wherein he claimed to be the "Father of Identity Theft."
In August 2018, Jackson was arrested again in Charlotte, North Carolina, while attempting to purchase a $43,000 Corvette using the name and personal information of a recently deceased individual.
Jackson had prior federal convictions for mail fraud, credit card fraud and bank fraud from the Southern District of New York and mail fraud, credit card fraud and social security fraud from the Western District of Tennessee. Jackson’s life and fraud schemes were highlighted in a 2004 book entitled "Your Evil Twin- Behind the Identity Theft Epidemic."
On September 30, 2020, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Jackson to 207 months in federal prison followed by 5 years supervised release. Jackson was also ordered to pay over $300,000 in restitution. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Aggravated identity theft and schemes to defraud or compromise the personal and financial security of vulnerable and deceased victims will not be tolerated. This case demonstrates our commitment to protect the personal and financial information of citizens and institutions, and to hold offenders accountable for these disturbing crimes of dishonesty. This self-proclaimed ‘Father of Identity Theft’ will now have to change his name to ‘Father Time’, because he will be doing plenty of it in federal prison."
This case was investigated by the United States Postal Inspection Service (USPIS), the Tennessee Department of Safety and Homeland Security, Tennessee Highway Patrol and the Memphis Police Department.
Assistant U.S. Attorney Stephen Hall prosecuted this case on behalf of the government.
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Worcester Man Indicted on Charges of Civil Disorder and Possession of an Unregistered FirearmRead the Press Release
BOSTON – A Worcester, Mass. man was indicted by a grand jury today with civil disorder and possession of a Molotov cocktail during a demonstration in the City of Worcester over the death of George Floyd.
Vincent Eovacious, 18, was indicted today on one count of civil disorder and one count of possession of an unregistered firearm. Eovacious was arrested and charged by criminal complaint on June 3, 2020.
According to charging documents, on June 1, 2020, crowds gathered at various locations in Worcester to protest the death of George Floyd, including South Main Street. At approximately 10:00 p.m., a large crowd blocked traffic and began throwing objects in the direction of the police. As officers on scene gathered into a line formation, one officer observed a man dressed in a trench coat standing on top of a building at 848 Main Street which is clearly marked, “No Trespassing.” The man, later identified as Eovacious, allegedly yelled for the crowd below to kill the police and paced back and forth on the rooftop. The officer then observed Eovacious remove a bottle from his satchel that appeared to contain liquid and attempt to insert a rag into the bottle while holding a silver object that the officer believed to be a lighter. Minutes later, officers observed Eovacious walking in the area of May and Main Streets, still carrying the satchel, and stopped him. According to court documents, officers searched the satchel and recovered three clear glass bottles with a slightly yellow liquid that smelled of gasoline, five white rags, one green lighter and one silver lighter. Eovacious stated that the liquid in the glass bottles was gasoline and that he was “with the anarchist group” and was “waiting for an opportunity.”
The civil disorder charge provides for a sentence of up to five years in prison, three years of supervised release and a fine $250,000. The charge of unlawful possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg Friedholm and Danial Bennett, of Lelling’s Worcester Branch Office, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wolf Point woman sentenced for trafficking pain pills on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Wolf Point woman who admitted selling large quantities of the pain medication, oxycodone, on the Fort Peck Indian Reservation was sentenced today to 15 months in prison and two years of supervised release, U.S. Attorney Kurt Alme said.
Jennifer Lee Marie Walkingeagle, 30, pleaded guilty in June to conspiracy to possess with intent to distribute oxycodone.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said Walkingeagle's vehicle was stopped for speeding on the Fort Peck Indian Reservation on April 30, 2019. Walkingeagle told the trooper she did not have a license and provided a false name. The trooper ticketed Walkingeagle and allowed one of the passengers to drive the vehicle.
The trooper subsequently learned Walkingeagle's true identity and that she had an active tribal court warrant. The trooper found the vehicle in a driveway of a residence, conducted an investigation on scene and searched the vehicle with Walkingeagle's consent. The officer found 251 oxycodone pills and other items in the vehicle.
Walkingeagle admitted during an interview to traveling to Williston, N.D., to meet her drug supplier, who was traveling by train from Chicago. Walkingeagle distributed oxycodone pills on the Fort Peck Indian Reservation from January 2019 to May 2019.
Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Fort Peck Tribes Department of Law and Justice, and Montana Highway Patrol.
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Wisconsin Pain Management Companies to Settle False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Advanced Pain Management Holdings Inc. (APMH), its wholly-owned subsidiaries, APM Wisconsin MSO (“APM MSO”) and Advanced Pain Management LLC (APM LLC); and Advanced Pain Management S.C. (APMSC) (collectively the “APM Entities”) have agreed to pay $885,452 to settle claims that they violated the False Claims Act by paying kickbacks and by performing medically unnecessary laboratory tests. The APM Entities are headquartered in the Milwaukee, Wisconsin area.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decision making.”
“The financial arrangements pursued by APMH wrongly gave physicians an incentive to make medical decisions based on their own financial interests, rather than their patients’ interests,” said U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “Medicare and Medicaid only pay for procedures and tests that are medically necessary and untainted by kickbacks. This settlement reflects our office’s continuing efforts to combat violations of the False Claims Act and improper arrangements under the Anti-Kickback Statute.”
“It is imperative that the public has faith and trust that the decisions made by medical providers are based upon the best interests of their patients” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The specter of a payment of a kickback in any form or fashion diminishes that faith and trust and can lead to the improper payment and wasting of limited taxpayer dollars. The OIG will continue to work with our investigative partners to ensure the continued integrity of federally funded health care programs.”
The United States alleged that APMH improperly gifted shares of incentive stock to non-employee APMSC physicians who performed pain management procedures at APMH’s ambulatory surgical centers. The incentive stock was to be redeemed upon a sale of APMH and was dependent on the profitability of APMH, which was determined largely by referrals from the non-employee physicians. The incentive stock was allegedly given as a reward for past and anticipated referrals to APMH’s ambulatory service centers.
The United States further contended that APMH paid non-employee APMSC physicians to serve as medical directors in a manner that was tied to the volume of procedures at APMH’s ambulatory surgery centers. There were no written agreements documenting the services the medical directors were to provide, and the medical directors were not required to record or report any medical director functions.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The United States alleged that the APM Entities performed confirmatory urine drug tests that were medically unnecessary. For certain claims, providers allegedly failed to customize orders for confirmatory urine drug tests based on each patient’s individualized risk assessment and circumstances, resulting in a higher level of testing than supported by the medical record. The APM Entities disclosed these improper urine drug test claims to the Department of Health and Human Services.
The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $142,152 as her share of the federal recovery in this case.
The APM Entities settlement with the United States is based on their ability to pay, and is part of a broader settlement that also resolves various state law claims.
The case was handled by the U.S. Attorney’s Office for the Eastern District of Wisconsin with assistance from the Justice Department’s Civil Division, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States, et al. ex rel. Hedstrom v. Advanced Pain Mgmt., et al., Case No. 13-C-556 (E.D. Wisc.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
White Plains Financial Adviser Arrested for EmbezzlementRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that GREGG BRIE, a White Plains financial adviser, was arrested this morning and charged with securities fraud and wire fraud arising out of his embezzlement of more than $640,000 from two victims who had entrusted money to him for investment. BRIE will be presented before United States Magistrate Judge Paul E. Davison in White Plains federal court later today.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Gregg Brie stole money so he could live a lavish lifestyle. This Office is committed to rooting out fraudulent investments in order to preserve the integrity of our capital markets.”
FBI Assistant Director William F. Sweeney Jr. said: “The charges today allege that Gregg Brie is an embezzler. If you trusted Mr. Brie to invest your money, and believe you might be an additional victim of his actions, we urge you to call us at 1-800-CALL-FBI.”
According to the allegations contained in the Complaint[1]:
BRIE embezzled funds from two victims, both of whom lived in his White Plains apartment complex. He advised his first victim, a disabled man on a fixed income and confined to a wheelchair, to buy shares in Alaska Air Group, Inc. Bank records show that this victim gave BRIE more than $480,000. BRIE told his victim that he had opened accounts for him at a brokerage firm and that his stock had increased in value to approximately $8 million. When the victim asked for his money, BRIE told him that his accounts were frozen because the stockbrokers had done something “sketchy” in order to buy the shares at a lower price. When the victim attempted to contact the brokerage firm, BRIE told him that he would “murder [him]” if the victim attempted to contact the firm again. BRIE repeated this threat at least two more times, noting that he meant his threats to be taken “literally, not metaphorically.”
According to written loan agreements drafted by BRIE, the second victim made three loans to BRIE in a total amount of approximately $157,000 “for the purpose of producing and distributing a proprietary, composite unimold commode for use within indigent venues of the African nation of Uganda.”
The FBI’s analysis of bank accounts controlled by BRIE showed that BRIE spent the money he obtained from his two victims primarily on credit cards and a Mercedes Benz lease. The evidence showed that there was no brokerage account.
* * *
BRIE, 53, of White Plains, New York, faces a maximum sentence of 25 years in prison on the securities fraud count and 20 years in prison on the wire fraud count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Shiva Logarajah are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
West Virginia physician admits to illegally distributing drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Felix Brizuela, Jr., of Harrison City, Pennsylvania, has admitted to illegally distributing controlled substances, U.S. Attorney Bill Powell announced.
Brizuela, age 59, of Harrison City, Pennsylvania, pled guilty today to one count of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Brizuela admitted to illegally distributing oxycodone in Monongalia County in August 2013. Based upon the plea agreement, Brizuela was sentenced to time served and three years of supervised release, during which time he is not permitted to seek authority to prescribe any medications or controlled substances.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.West Virginia Pharmacist Sentenced to 120 Months for Drug Trafficking in Eastern KentuckyRead the Press Release
PIKEVILLE, KY- - Jackson Noel, 62, a pharmacist operating Buffalo Drug Inc., located in Buffalo, West Virginia, was sentenced in federal court on Wednesday, to 120 months in prison, by U.S. District Judge Karen Caldwell, for conspiring to illegally dispense and distribute oxycodone and oxymorphone.
Evidence at trial established that as part of the conspiracy Noel unlawfully dispensed oxycodone and oxymorphone pills from the pharmacy to out-of-state customers, including customers from Kentucky. Noel dispensed the pills on a cash only basis.
According to evidence at trial, Noel began conspiring and distributing the drugs in June 2015 through December 2016 in Pike County, the Eastern District of Kentucky, and elsewhere.
Noel pleaded guilty in September 2019.
Noel will be required to pay $100,000 in community restitution. Under federal law, Noel must serve 85 percent of their prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott , Special Agent in Charge, DEA, Louisville Field Division; Daniel Cameron, Attorney General of Kentucky; and Rodney Brewer, Commissioner, Kentucky State Police jointly announced the jury’s verdict.
The investigation was conducted by the DEA, KSP, Kentucky Office of the Attorney General, the Putnam County, West Virginia, Sheriff’s Office, and the West Virginia Board of Pharmacy. The United States was represented by Assistant U.S. Attorney Sam Dotson.
– END –
Waterloo Man Sentenced to More Than Nine Years in Prison for Possessing Sawed-Off WeaponRead the Press Release
A man who unlawfully possessed a sawed-off shotgun was sentenced on September 30, 2020, to nearly a decade in federal prison.
Richard Jacobson, age 56, from Waterloo, Iowa, received the prison sentence after a guilty plea to unlawful possession of a sawed-off shotgun. Statements at sentencing showed that Jacobson, while high on methamphetamine, repeatedly racked or cocked the weapon while threatening to shoot at least one other person. The judge who sentenced Jacobson, United States District Court Judge C.J. Williams, characterized Jacobson’s conduct as both “threatening and terrifying.” The judge also noted that Jacobson had a “remarkably high number of adult felony convictions.”
Jacobson has previously been convicted of fourteen felony offenses. Those include multiple convictions for burglary and other violent crimes. He also has multiple prior convictions related to unlawfully possessing dangerous weapons.
Jacobson was sentenced to 115 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2068.
Follow us on Twitter @USAO_NDIA.
United States Obtains Final Judgment and Permanent Injunction Against Edward SnowdenRead the Press Release
On Sept. 29, 2020, the U.S. District Court for the Eastern District of Virginia entered a final judgment and permanent injunction against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA).
In September 2019, the United States filed a lawsuit against Snowden, who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA. The lawsuit alleged that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
The United States’ lawsuit did not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government sought to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
In December 2019, the U.S. District Court for the Eastern District of Virginia, found in favor of the United States in the suit against Snowden on the issue of liability and held that Snowden breached his contractual and fiduciary obligations to the CIA and NSA by publishing Permanent Record and giving prepared remarks within the scope of his pre-publication review obligations, but reserved judgment on the scope of these violations or the remedies due to the government. On Tuesday, the court entered judgment in the government’s favor in an amount exceeding $5.2 million and imposed a constructive trust for the benefit of the United States over those sums and any further monies, royalties, or other financial advantages derived by Snowden from Permanent Record and 56 specific speeches.
“Edward Snowden violated his legal obligations to the United States, and therefore, his unlawful financial gains must be relinquished to the government,” said Deputy Attorney General Jeffrey A. Rosen. “As this case demonstrates, the Department of Justice will not overlook the wrongful actions of those who seek to betray the trust reposed in them and to personally profit from their access to classified national security information.”
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This judgment will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
“We will pursue those who take advantage of sensitive positions in government to profit from the classified information learned during their government service,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division.
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
This matter is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division.
United States Obtains Final Judgement and Permanent Injunction Against Edward SnowdenRead the Press Release
ALEXANDRIA, Va. – On Tuesday, the U.S. District Court for the Eastern District of Virginia entered a final judgement and permanent injunction against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA).
“Edward Snowden violated his legal obligations to the United States, and therefore, his unlawful financial gains must be relinquished to the government,” said Jeffrey A. Rosen, Deputy Attorney General of the United States. “As this case demonstrates, the Department of Justice will not overlook the wrongful actions of those who seek to betray the trust reposed in them and to personally profit from their access to classified national security information.”
In September 2019, the United States filed a lawsuit against Snowden, who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA. The lawsuit alleged that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This judgment will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
The United States’ lawsuit did not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government sought to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
“We will pursue those who take advantage of sensitive positions in government to profit from the classified information learned during their government service,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division.
In December 2019, the U.S. District Court for the Eastern District of Virginia found in favor of the United States in the suit against Snowden on the issue of liability. The Court held that Snowden breached his contractual and fiduciary obligations to the CIA and NSA by publishing Permanent Record and giving prepared remarks within the scope of his pre-publication review obligations, but reserved judgment on the scope of these violations or the remedies due to the government.
On Tuesday, the Court entered judgment in the government’s favor in an amount exceeding $5.2 million and imposed a constructive trust for the benefit of the United States over those sums and any further monies, royalties, or other financial advantages derived by Snowden from Permanent Record and 56 specific speeches.
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the Justice Department’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney’s Office honors Domestic Violence Awareness MonthRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that the U.S. Attorney’s Office Southern District of Indiana will be honoring Domestic Violence Awareness Month during October. Each week, the office will highlight specific Department of Justice grants that have been awarded to various agencies throughout the southern district to help combat domestic violence. The office is providing all employees with information and training on domestic violence issues within the district, and later on in the month employees will be volunteering at a community service project to benefit Thomas Gregg Neighborhood School.
“Domestic violence is such a devastating crime that reaches every area of society,” said Minkler. “The abuse comes in many forms and is directed toward every sex, culture, race, and religion. This office will continue to prosecute those who choose to inflict pain and suffering on innocent victims and we intend to bring awareness to this critical issue during Domestic Violence Awareness Month.”
The United States Attorney reaffirms the office’s commitment to prosecuting and preventing gun crime at the hands of domestic abusers. Some notable cases include:
- United States v. Brian Jones, Case No. 19-cr-258: Law enforcement responded to a 911 call for help. When they arrived at the Indianapolis location, the victim told them Brian Jones, her ex-boyfriend, broke into her house, pointed a gun at her and her minor children and threatened to kill them all. Upon arrest, law enforcement found a loaded 9 mm semiautomatic handgun on Jones. A criminal history check revealed that Jones had eight prior felony convictions and was on supervised release for Unlawful Possession of a Firearm by a Convicted Felon out of the Southern District of Ohio. On August 7, 2020, Jones, an Ohio resident, was convicted of Unlawful Possession of a Firearm by a Convicted Felon and was sentenced to 96 months’ imprisonment.
- United States v. Mauro Martinez-Diaz, Case No. 19-cr-49: Law enforcement responded to a domestic violence call. When they arrived at the Indianapolis location, the victim stated that Martinez-Diaz had returned from a party and became upset when she refused to cook food for him. She reported that the defendant then choked her, dragged her around the apartment by her hair, and kicked her with his feet while she was on the floor. Upon arrest, law enforcement found a loaded .40 semiautomatic handgun on the defendant. Martinez-Diaz, who is a citizen of Mexico and was found to be in the U.S. illegally, was indicted on February 20, 2019, for Unlawful Possession of a Firearm by an Alien Illegally or Unlawfully in the United States.
- United States v. Calvin Washington, Case No. 20-cr-236: Law enforcement responded to a domestic violence call. After they arrived at the Indianapolis location, Washington fled, discarding a loaded .380 caliber semiautomatic handgun in a kitchen trash can and throwing an 8-month-old baby to the ground. He was apprehended shortly thereafter. Washington, a resident of Indianapolis, was indicted on September 23, 2020, for Unlawful Possession of a Firearm by a Convicted Felon.
Domestic Violence Awareness Month first began in 1981 as a day of unity by the National Coalition Against Domestic Violence, which quickly evolved into a full week. Then in 1987, the first Domestic Violence Awareness Week took place. In 1994, Congress passed the Violence Against Women Act, which combined new provisions that hold offenders accountable and provide programs and services for victims.
The National Coalition Against Domestic Violence defines domestic violence as the willful intimidation, physical assault, battery, sexual assault, and/or other abusive behavior as part of a systematic pattern of power and control perpetrated by one intimate partner against another. It includes physical violence, sexual violence, threats, and emotional abuse. The frequency and severity of domestic violence can vary dramatically.
The CDC reports:
- 1 in 5 women and 1 in 7 men report having experienced severe physical violence from an intimate partner in their lifetime.
- 1 in 5 women and 1 in 12 men have experienced contact sexual violence by an intimate partner.
- 10% of women and 2% of men report having been stalked by an intimate partner.
If you are in crisis, contact the National Domestic Violence Hotline at 1-800-799-7233 (SAFE) TTY 1-800-787-3224 or www.TheHotline.org
- United States v. Brian Jones, Case No. 19-cr-258: Law enforcement responded to a 911 call for help. When they arrived at the Indianapolis location, the victim told them Brian Jones, her ex-boyfriend, broke into her house, pointed a gun at her and her minor children and threatened to kill them all. Upon arrest, law enforcement found a loaded 9 mm semiautomatic handgun on Jones. A criminal history check revealed that Jones had eight prior felony convictions and was on supervised release for Unlawful Possession of a Firearm by a Convicted Felon out of the Southern District of Ohio. On August 7, 2020, Jones, an Ohio resident, was convicted of Unlawful Possession of a Firearm by a Convicted Felon and was sentenced to 96 months’ imprisonment.
U.S. Attorney Strasser Announces Awards Totaling over 4.4 Million Dollars to Support Offenders Returning to Communities in the Eastern DistrictRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser today announced over 4.4 million dollars in Department of Justice grants to reduce recidivism among adults and juvenile offenders returning to their communities in the Eastern District of Louisiana after confinement. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent President Trump’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
“Recidivism poses an extreme threat to our community and places a heavy burden upon society,” said U.S. Attorney Strasser. “Formerly incarcerated offenders need and deserve additional support to assist their transition back into mainstream society. This funding will help our communities develop and implement re-entry strategies that will greatly benefit formerly incarcerated offenders and the community as a whole.”
The following organizations received funding:
- Louisiana Department of Public Safety and Corrections $2,449,780
- Goodwill Industries of Southeastern Louisiana, Inc. $749,994
- Louisiana Department of Public Safety and Corrections $498,759
- Lafourche Parish Sheriff’s Office $749,022
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf.More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
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U.S. Attorney Schroder Announces Nearly $1 Million to Combat Elder Fraud and Abuse in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Schroder announced today $997,764 in Department of Justice grants to combat elder abuse and financial fraud targeted at seniors across the Alaska. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of over $9 million in funding to support these efforts throughout the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.
“The US Attorney’s Office recognizes that our Elders are often targets of financial fraud,” said U.S. Attorney Schroder, “Today, as we celebrate International Older Persons Day, we restate our commitment to prosecute those who would take advantage of our senior population.”
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
The following organizations received funding:
- Alaska Native Justice Center, $500,000
- Fairbanks Area Native Association, $497,764
More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Michael Bailey Announces over $4.1 Million in Grants to Improve Public Safety, Serve Crime Victims in ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Michael Bailey today announced over $4.1 million in Department of Justice grants to improve public safety, serve victims of crime and support youth programs in tribal communities in Arizona.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
The following organizations in the District of Arizona received funding:
- Fort Mojave Indian Tribe (COPS) - $893,450
- Hualapai Detention and Rehabilitation Center (OVW) - $900,000
- Salt River Pima Maricopa Indian Community (COPS) - $894,463
- San Carlos Apache Tribe (OJJDP) - $400,000
- The Hopi Tribe (OVW) - $900,000
- Yavapai-Prescott Indian Tribe (COPS) - $158,700
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
RELEASE NUMBER: 2020-077_Public Safety Grants
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.U.S. Attorney Michael Bailey Announces $2.3 Million to Support Offenders Returning to Communities in the District of ArizonaRead the Press Release
PHOENIX, Ariz. – U.S. Attorney Michael Bailey this week announced over $2.3 million in Department of Justice grants to reduce recidivism among adults and juvenile offenders returning to their communities in the District of Arizona after confinement. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent President Trump’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
The following organizations in Arizona received funding:
- Arizona Department of Correction, Rehabilitation Reentry - $1,873,822
- Navajo Nation Judicial Branch - $500,000
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf.
More information about OJP and its components can be found at www.ojp.gov.
RELEASE NUMBER: 2020-076_Reentry Grants
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.U.S. Attorney Michael Bailey Announces $1.5 Million to Combat Elder Fraud and Abuse in ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Michael Bailey today announced $1.5 million in Department of Justice grants to combat elder abuse and financial fraud targeted at seniors across the Arizona. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of over $9 million in funding to support these efforts throughout the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
The following organizations received funding in the District of Arizona:
- Apache Behavioral Health Services, Inc. - $499,252
- Arizona Board of Regents on behalf of ASU - $1,035,328
More information about OJP and its components can be found at www.ojp.gov.RELEASE NUMBER: 2020-079_Elder Fraud and Abuse Grants
- Apache Behavioral Health Services, Inc. - $499,252
U.S. Attorney Lawrence Keefe Announces over $2.6 Million to Support Offenders Returning to Area CommunitiesRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, today announced $2,662,713 in Department of Justice grants to area programs to reduce recidivism among adults and juvenile offenders returning to their communities after confinement. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent the Justice Department’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“I am proud that we are able to make more than $2.6 million available within Northern Florida to help offenders fully reintegrate into their communities,” said U.S. Attorney Keefe. “The key to reducing crime is preventing offenders from committing further crimes, and the best way we can do that is by helping them succeed as they return to their communities and establish law-abiding lives.”
The reentry and recidivism reduction grant awards will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The following organizations received funding in the Northern District of Florida:
- DISC Village, Incorporated - $899,995
- Improving Reentry for Adults with Substance Use Disorders Program
- Florida Department of Corrections - $500,000
- Adult Reentry and Employment Strategic Planning Program
- Florida Department of Juvenile Justice - $750,000
- Second Chance Act, Youth Offender Reentry Program
- Florida State University - $512,718
- Research on Juvenile Reoffending Program
For a complete national list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf
Additional information about FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data Webpage.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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.
Press Release - DOJ Reentry GrantsU.S. Attorney John C. Anderson announces $680,391 to support offenders returning to communities in Bernalillo County, New MexicoRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson today announced $680,391 in Department of Justice grants to reduce recidivism among adults and juvenile offenders returning to their communities in Bernalillo County, New Mexico, after confinement. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of more than $92 million in funding to support reentry efforts throughout the United States.
Bernalillo County will receive these funds under the Office of Juvenile Justice and Delinquency Prevention’s Second Chance Act Addressing the Needs of Incarcerated Parents with Minor Children Program, which supports the successful and safe transition of young fathers and mothers from confinement to their families and communities.
“The goal of rehabilitation is that, once a person has served a sentence, he or she will return to society as a productive and law abiding citizen,” said Anderson. “For individuals with children, part of that means returning to the responsibilities of parenting. That includes not only providing for a family, but playing an integral role in the development of their children, leading to better outcomes generationally for families and communities. This grant funds services to help parents reach those objectives.”
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
More information about OJP and its components can be found at www.ojp.gov.
This year marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
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U.S. Attorney Halsey Frank Announces Federal Grants to Fight Violence against Women in MaineRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank today announced the Department of Justice has awarded more than $5.5 million in federal funding for groups that are committed to ending violence against women in Maine.
The funding that was announced by the Department’s Office of Violence Against Women (OVW) will be distributed among almost a dozen groups around the state and is detailed in the table below:
Organization
Award Amount
Maine Coalition Against Sexual Assault
$152,345
Maine Coalition to End Domestic Violence
$91,274
University of Maine System
(acting through University of Southern Maine)
$600,000
University of Maine System
(acting through University of Maine at Farmington)
$299,735
New Hope for Women
$515,000
Caring Unlimited
$898,496
Partners for Peace
$510,253
Maine Department of Health & Human Services
$388,589
State of Maine
$1,082,160
Wabanaki Women’s Coalition
$353,615
U.S. Attorney Frank earlier this week announced the award of a $770,467 grant to the Passamaquoddy Tribe at Indian Township to battle domestic violence.
“I am very pleased to learn of the announcement of this funding,” Frank said. “Although great strides have been made in raising awareness about the problem of domestic violence in Maine, much more work remains to be done. It is my hope that this federal funding will help these Maine organizations in their ongoing efforts to end violence against women here in Maine.”
“It is absolutely essential, as a society, to work together to prevent violence,” said OVW Principal Deputy Director Laura Rogers. “We are proud to do our part to support the people of Maine as we all join together to keep victims safe and hold offenders accountable for their crimes.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Erica H. MacDonald Announces Federal Grant to Combat Elder Fraud and Abuse in MinnesotaRead the Press Release
U.S. Attorney Erica H. MacDonald today announced that a nearly half a million dollar Department of Justice grant has been awarded to the Minnesota Elder Justice Center to combat elder abuse and financial fraud targeted at seniors across Minnesota. The $499,981 grant, awarded by the Department’s Office of Justice Programs (OJP), is part of over $9 million in funding to support these efforts throughout the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“I am excited to see nearly half a million dollars awarded to an organization that is a steadfast resource and champion for elder justice,” said U.S. Attorney Erica H. MacDonald. “My office and the Department of Justice are committed to protecting older Americans from abuse, neglect, and financial exploitation. They raised us. They took care of us. Now we have to take care of them.”
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.
Earlier this year, U.S. Attorney Erica H. MacDonald released a public service announcement, aimed at raising awareness and reaching potential victims of elder fraud and abuse.
FY 2020 grants awarded by OVC and NIJ further the department's mission and priorities by funding direct victim services and research projects that enhance the field's response to victims of elder abuse and financial exploitation. Specific programs being funded include the following:
- OVC’s Enhancing Services for Older Victims of Abuse and Financial Exploitation program awards nearly $6 million to 12 organizations to support communities in providing services to older victims of abuse and exploitation using trauma-informed approaches that protect the safety and confidentiality of victims.
- OVC’s Training for Law Enforcement to Improve Identification of and Response to Elder Fraud Victims program (previously announced) awarded over $1.9 million to provide training and technical assistance to enhance law enforcement's ability to identify elder fraud victims, connect those victims with available services, and bring the fraudsters to justice.
- NIJ’s Research on the Abuse, Neglect, and Exploitation of Elderly Individuals program awarded over $1.4 million to two recipients to fund research projects to, respectively, better differentiate physical abuse of elderly individuals from accidental injury and to improve the reporting of elder abuse.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/elderabusefactsheet.pdf.
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.s. Attorney Announces Federal Grant to Fund Maine Organization That Supports Offenders Returning to CommunitiesRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank today announced that Brunswick-based Volunteers of America, Northern New England has received a federal grant of $749,586 to help assist offenders reenter their communities after confinement.
The Department of Justice’s Office of Justice Programs (OJP), Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) awarded grants to jurisdictions, research institutions and other organizations in support of proven science-based approaches to reintegrate offenders into communities.
In 2018, President Trump signed into law the First Step Act, including reauthorization of the Second Chance Act, the biggest piece of criminal justice reform legislation to be enacted in more than a decade.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help offenders get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
“This grant to Volunteers of America, Northern New England will be of tremendous benefit to the organization and the communities it serves,” U.S. Attorney Frank said. “Too often, those who have been incarcerated lack the resources they need to succeed once they reenter society. It’s in everyone’s best interests to make sure these individuals have what they need to be productive members of society.”
Fiscal Year 2020 reentry and recidivism reduction grants awarded include the following:
- More than $71.4 million under BJA’s grant programs designed to help communities develop and implement comprehensive and collaborative strategies to address the challenges posed by reentry and recidivism.
- More than $11.2 million under OJJDP’s Second Chance Act suite of grant programs to support reentry services for detained juveniles and incarcerated parents with children under the age of 18.
- More than $9.3 million under NIJ’s reentry research and evaluation programs, which support rigorous research to advance understanding about reoffending and the success of reentry strategies, programs and practices. This includes evaluating innovative reentry initiatives that specifically focus on juveniles, young adults and adults with a moderate-to-high risk of reoffending.
For a complete list of individual grant programs, amounts to be awarded and the jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf
Additional information about FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data Webpage.
OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S Attorney Welcomes New District Court JudgesRead the Press Release
Fairview Heights, Ill. - U.S. Attorney Steven D. Weinhoeft today praised the Senate confirmation of
Judges David W. Dugan and Stephen P. McGlynn and publicly welcomed them to their new positions on the federal bench in southern Illinois. Dugan and McGlynn were both confirmed to lifetime appointments on September 16 and officially sworn in late last week. Their selection fills a pair of vacancies on the court after the 2019 retirements of District Judges Michael
J. Reagan and David R. Herndon.“On behalf of the U.S. Attorney’s Office, it is my honor to extend a warm welcome to Judge McGlynn and Judge Dugan as they begin their federal judicial careers here in the Southern District of
Illinois,” Weinhoeft said. “They are joining a court with a long tradition of well- respected, dedicated, and fair-minded jurists, including their predecessors Judge Michael Reagan and Judge
David Herndon. And we have no doubt that the court’s newest members will help carry that tradition forward for many more years to come.”Weinhoeft continued, “Judge McGlynn and Judge Dugan are also joining a court that will be very glad to receive them. For the past 18 months, despite their already demanding caseloads, the two veteran district judges and one senior district judge have had to absorb a significant amount of extra work, all while navigating the longest government shutdown in U.S. history and a global pandemic.
And so we also extend our gratitude and recognition to the entire courthouse family for weathering that storm and continuing to dispense justice while these two positions were vacant.”Weinhoeft also thanked the democratic senatorial delegation and the republican congressional delegation for working together, and with the White House, to bring a full complement of judges back to the Southern District of Illinois. “At a time when political fights dominate the headlines, it is good to see government function effectively by adding two well- qualified and experienced judges, to bring our court back to full strength. That is certainly something to celebrate.”
Two Wareham Residents Charged with Conspiracy to Distribute Fentanyl Resulting in Overdose DeathRead the Press Release
BOSTON – Two Wareham residents were arrested today and charged in connection with selling fentanyl, including to a 42-year-old man who died of an apparent overdose.
Troy Jones, 40, and Kayla Nightingale, 33, were indicted on one count of conspiracy to distribute fentanyl resulting in death and distributing fentanyl resulting in death. The defendants were arrested today and will make an initial appearance today at 1:00 p.m. before Chief U.S. Magistrate Judge M. Page Kelly.
“Fentanyl, which is far more potent than heroin, is an extremely dangerous drug that is now driving overdose deaths during the opioid epidemic,” said United States Attorney Andrew E. Lelling. “Federal law provides for particularly severe consequences when illegal drug trafficking results in death, and we intend to use every available tool to combat this problem.”
“The state of Massachusetts is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing this lethal drug and contribute to the loss of life for those battling this addiction need to be held responsible for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
As alleged in the indictment, Jones and Nightingale worked together from January 2019 through at least April 3, 2019 to distribute fentanyl in Wareham, including to a 42-year-old Wareham resident. On April 2, 2019, that resident died of an apparent fentanyl overdose.
The charging statute provides for a mandatory minimum sentence of 20 years and up to life in prison, at least three years and up to life of supervised release, a fine of up to $1 million and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; DEA SAC Boyle; Colonel Christopher Mason, Superintendent of the Massachusetts States Police; and Wareham Police Chief John A. Walcek made the announcement today. Assistant U.S. Attorney Jared Dolan of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Texas Syndicate Members Sentenced to Combined 50 YearsRead the Press Release
Two Texas Syndicate gang members were sentenced today to a combined 50 years in prison for drug trafficking in Lubbock, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jose Daniel Flores, aka “Cuate,” 43, was sentenced to 360 months in prison after pleading guilty in March to intent to distribute heroin. Gabriel Sepulveda Manriquez, aka “Pistolas,” 50, was sentenced to 248 months in prison after his June guilty plea to intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The sentences were imposed by U.S. District Judge James Wesley Hendrix.
According to court documents, beginning in 2018, the Drug Enforcement Administration began investigating Texas Syndicate members in the Lubbock area for suspected drug trafficking.
DEA agents utilized a cooperating source to purchase methamphetamine from Manriquez at his Lubbock residence. By September 2019, the court authorized a wiretap of Manriquez’s electronic device. Agents intercepted numerous conversations between Manriquez and other members of the drug trafficking organization discussing the sale and distribution of narcotics.
Law enforcement executed a search warrant of Manriquez’s residence. He was arrested and law enforcement recovered cocaine packaged for distribution and a Ruger .357 with the serial numbers obliterated from the pistol.
Two search warrants were issued in connection to Flores’ drug trafficking activity. The Lubbock Police Department SWAT team located Flores inside a Lubbock hotel room with co-defendant, Allison Langdon, along with two kilograms of methamphetamine, a large sum of cash, and a Glock .40 pistol. Agents also searched Langdon’s house and recovered approximately half-a-kilogram of heroin locked in a safe which Flores admitted belonged to him.
During an interview with law enforcement, Flores admitted that he obtained methamphetamine and heroin directly from suppliers in Mexico. The investigation revealed that Flores was responsible for importing over 417 kilograms of methamphetamine from Mexico into the United States on behalf of the drug trafficking organization.
Co-defendants Allison Langdon, Ray Elias Narvais-Rodriguez, Luis Gonzalez, Jesus Manriquez, Angelica Del Valle, Randy Roy Nunez, and Tanner Paul Langdon have received sentences ranging up to 235 months.
This case was investigated by the Drug Enforcement Administration, Lubbock Police Department, Lubbock County Sheriff’s Office, and members of the Lubbock, Texas Anti-Gang Unit. Assistant U.S. Attorney Stephen Rancourt prosecuted this case.
Two Leaders of the Aryan Knights Prison Gang Each Sentenced to over 17 Years for RICO ConspiracyRead the Press Release
BOISE – Two members of an Idaho prison gang called the Aryan Knights were sentenced to federal prison after pleading guilty to one count of participating in a RICO (the Racketeer Influenced and Corrupt Organization Act) conspiracy, U.S. Attorney Bart M. Davis announced today. Chief United States District Judge David C. Nye sentenced Christopher Foss, 32, to 210 months in federal prison and Buck Pickens, 31, to 206 months in federal prison. Both Foss and Pickens will also serve five years of supervised release following their sentence. Each was found to have played a leadership role in the Aryan Knights, or “AK.”
Foss’ sentence will be served concurrently with a state sentence currently being served at Idaho Department of Correction (IDOC). If Foss is paroled on his state sentence at the earliest possible date, he will serve an additional 174 months in federal prison. Pickens’ sentence is partially concurrent with his current state sentences. It is structured so that Pickens will serve an additional 60 months in federal prison if he is paroled at the earliest possible date.
Foss and Pickens are two of ten AK gang defendants indicted by a federal grand jury in May 2019 for participating in a RICO conspiracy. The indictment also included two separate counts for committing a violent crime in aid of racketeering. So far, five defendants have pleaded guilty to the RICO conspiracy count, and one defendant, Michael McNabb, 36, was sentenced on August 21, 2020. McNabb was sentenced to 28 months in federal prison by Chief Judge Nye. A jury trial for the remaining defendants is scheduled for April 5, 2021 at the federal courthouse in Boise.
According to court records, the AK gang was formed in the mid-1990s in the Idaho prison system. It is a prison gang that operates within IDOC prison facilities and also outside of IDOC facilities. It was founded to organize criminal activity for a select group of white inmates within IDOC custody. The AK gang has white supremacist and white separatist ideologies. Since its founding, the AK gang has expanded and is now believed to have over 100 members, both inside and outside of IDOC custody. Members of the AK gang have used violence and the threat of violence to target non‑white inmates and other targeted inmates. AK gang members also engaged in drug trafficking, extortion, and gambling to generate revenue, which was shared among members.
This case was investigated by the Federal Bureau of Investigation, IDOC’s Special Investigations Unit, Ada County Sheriff’s Office, and Ada County Prosecutor’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The codefendants that have not pleaded guilty and remain scheduled for trial are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Indicted for Failing to Register as Sex OffendersRead the Press Release
LEXINGTON, Ky. – In separate indictments, two men residing in Salt Lick, Ky., Clinton Anthony Peterson, 29, and Brandon Phillip Camous, 27, were indicted on Thursday, on federal charges of failing to register as sex offenders.
The indictments allege that from January 2016, continuing through September 17, 2020, both Peterson and Camous resided in Nicholas County and elsewhere; and while living there, they failed to register under the federal Sex Offender Registration and Notification Act (SORNA). Both were charged with knowingly failing to register under SORNA, after qualifying prior convictions.
The investigation preceding the indictments was conducted jointly by the U.S. Marshals Service and Kentucky State Police.
Peterson is scheduled to appear before the United States District Court, in Lexington, on October 8, 2020 at 11:30 a.m. Camous is scheduled to appear on October 5, 2020 at 11 a.m. If convicted, both face a maximum of 10 years in prison. However, any sentence following conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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