Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 September 2020
Former Manager of Oil Trading Firm Charged in Money Laundering and Bribery SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Javier Aguilar with conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and money laundering conspiracy for his involvement in a scheme to pay approximately $870,000 in bribes to Ecuadorian government officials in exchange their assistance to help Aguilar’s employer secure a $300 million contract for fuel oil from Ecuador’s state-owned oil company. Aguilar was previously arrested in Houston, Texas, and will be arraigned in the Eastern District of New York at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and George L. Piro, Special Agent-in-Charge, Federal Bureau of Investigation, Miami Field Office (FBI), announced the charges.
As alleged in the indictment and other court documents, Aguilar worked as a manager and oil trader in Houston for a United States subsidiary of a European energy trading company (the “Trading Company”). Beginning in mid-2015 and continuing into 2020, Aguilar and others allegedly caused approximately $870,000 in bribes to be paid to Ecuadorian government officials for their assistance in obtaining and retaining business for the Trading Company. Specifically, the Trading Company paid two intermediaries $1.4 million for their efforts to secretly bribe the government officials using bank accounts located in the United States and offshore, and $870,000 of those funds were used to pay the bribes to the Ecuadorian officials. In exchange for the bribes, the Trading Company secured contracts to purchase approximately $300 million in fuel oil from Petroecuador. To conceal the proceeds of the bribery scheme, Aguilar caused fake and fraudulent consulting agreements to be executed with so-called consultants located in the United States who were actually bribe intermediaries.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Aguilar faces a maximum sentence of 20 years in prison.
The government’s investigation is being conducted by the FBI’s International Corruption Unit, Miami Field Office. The is case is being handled by the Office’s Business and Securities Fraud Section, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Fraud Section. Assistant United States Attorneys Mark E. Bini and Andrey Spektor, MLARS Trial Attorneys Ann Brickley and Adam Schwartz, and Fraud Section Trial Attorney Derek Ettinger are prosecuting the case.
The Defendant:
JAVIER AGUILAR
Age: 46
Houston, TexasE.D.N.Y. Docket No. 20-CR-390 (ENV)
Former Lucky Star Casinos CEO Sentenced to Serve More Than One Year in Federal Prison and Pay over $1 Million in Restitution to IRS for Not Filing Federal Tax ReturnsRead the Press Release
OKLAHOMA CITY – Earlier today, BRIAN LEE FOSTER, 51, of Norman, Oklahoma, was sentenced to 12 months and 1 day in federal prison for not filing his federal income tax returns for calendar years 2012 and 2013, and ordered to pay over $1 Million in restitution to the Internal revenue Service (IRS), announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
Foster was the CEO and Director of Gaming for the four Lucky Star Casinos until early 2014. On October 8, 2019, Foster was charged with willful failure to file a federal tax return for calendar years 2012 and 2013. According to court filings, Foster earned more than $2.4 million in gross income during those two years, but did not timely file federal income tax returns. On October 24, 2019, Foster pled guilty to willfully failing to file a federal tax return for 2012 and 2013.
United States Magistrate Judge Suzanne Mitchell sentenced Foster today to 12 months and 1 day in federal prison, followed by 1 year of supervised release. In addition, Foster was ordered to pay $1,047,241 in restitution to the IRS for taxes owed for 2012 through 2018. In imposing the sentence, Judge Mitchell noted the nature and circumstances of the offense. Foster must self-surrender to federal prison on October 26, 2020.
These charges are the result of an investigation conducted by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Charles W. Brown.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Former Business Administrator at Westminster Presbyterian Church Indicted on Tax ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of tax fraud, United States Attorney Scott W. Brady announced today.
The 16-count indictment named David Reiter, age 51, as the sole defendant.
According to the Indictment, beginning in and around 2011, until his termination from employment in 2018, Reiter as business administrator at Westminster Presbyterian Church located in Upper St. Clair, PA, engaged in a pattern of deception and fraud by regularly embezzling and converting to his personal use funds belonging to church. The Indictment alleges that Reiter failed to pay over employment taxes and filed false personal income tax returns relating to the embezzlement, which materially underreported his personal income.
The law provides for a total sentence of not more than five years’ imprisonment for each of counts one through 11, and not more than three years for each of counts 12 through 16, a fine of $250,000, or a fine not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Broward County Employee Sentenced to Prison Term for Accepting BribesRead the Press Release
Miami, Florida – U.S. District Judge Rodolfo Ruiz, who sits in Ft. Lauderdale, sentenced 50-year-old Richard Allen Ellis, Jr., of Hollywood, Florida, to 20 months in prison for accepting bribes from a contractor. Ellis worked as a supervisor for the Physical Plant Operations Division of the Broward County School Board when he committed the crimes.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court records, one of Ellis’ job duties at the School Board was to process work orders for repairs to the grounds of public schools in Broward County. Ellis assigned projects to contractors, ensured that they adequately performed the work, and authorized payment when the work was done. In May 2018, Ellis accepted four bribe payments totaling more than $6,000 from the representative of a contractor who had done repair work for the School Board. In exchange for the bribes, Ellis agreed to keep the repair work flowing to the contractor and to fast-track payments of the contractor’s invoices. In 2018, part of the School Board’s operating budget came from federal funds.
On July 13, 2020, Ellis pled guilty to four counts of bribery concerning programs receiving federal funds.
FBI Miami investigated the case and received substantial cooperation from the School Board of Broward County. Assistant U.S. Attorney Cynthia R. Wood prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-60369.
Florida Man Sentenced for Trafficking in Protected Water Monitor LizardsRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Akbar Akram (44, Holiday) to serve a four-year term of federal probation for trafficking in protected water monitor lizards, in violation of the Lacey Act. The court also ordered Akbar to serve 90 days’ home detention and complete 288 hours of community service.
Akram had pleaded guilty on January 8, 2020.
According to the plea agreement, Akram admitted to illegally importing at least 20 live, water monitor lizards from the Philippines between January and December 2016, in violation of United States law and the Convention on International Trade in Endangered Species (CITES) Treaty. To avoid detection by United States customs authorities, the lizards were placed in socks, which were sealed closed with tape, and then concealed in the back panels of audio speakers or other electronic equipment. The equipment was then shipped via commercial carriers to Akram and his associate, who resided in Massachusetts. The customs declarations accompanying the shipments identified the content as audio speakers or similar electronics. Akram further admitted that he knew the monitor lizards he received had been imported into the United States in violation of CITES and the Endangered Species Act. Upon receiving the monitor lizards, he sold some of them to customers, including customers in Colorado, Connecticut, and Massachusetts.
“Wildlife trafficking is harsh and cruel. Operation Sound of Silence revealed that baby lizards were illegally collected, inhumanely packaged, and internationally trafficked with many arriving into the United States injured, sick or dead,” said Edward Grace, Assistant Director for the U.S. Fish & Wildlife Service Office of Law Enforcement. “The U.S. Fish and Wildlife Service remains dedicated to working alongside federal and international law enforcement agencies to apprehend and bring to justice U.S. citizens who seek to profit from the exploitation of wildlife.”
Monitor lizard is the common name for lizards comprising the genus Varanus. Monitor lizard species (there are approximately 70) are characterized by elongated necks, heavy bodies, long-forked tongues, strong claws, and long tails. Monitor lizards have a vast geographical range and are native to Africa, Asia, and Oceania. Water monitor lizards are semi-aquatic monitor lizards endemic to South and Southeastern Asia. As their name suggests, they are water dependent and easily swim long distances. This ability has allowed them to inhabit many remote islands. Some species of water monitor lizard are common and abundant in the pet trade, while others are extremely rare and are found only on specific islands. In addition to suffering increasing habitat loss due to rainforest destruction, water monitor lizards are often illegally collected from the wild and killed for various uses. They are also targeted for their popularity in the international exotic pet trade. Exotic pet traders seek water monitor lizards due to their attractive patterns, unique colors, intelligence, and rarity. The yellow-headed water monitor (Varanus cumingi), the white-headed water monitor (Varanus nuchalis), and the marbled water monitor (Varanus marmoratus), are species of large monitor lizards endemic to the Philippines.
This case is part of Operation Sound of Silence, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service Office of Law Enforcement, in coordination with the Department of Justice, to bring to justice those involved in the illegal taking and trafficking in protected species, including water monitor lizards. It was prosecuted by Assistant United States Attorney Colin P. McDonell and and Environmental Crimes Section Trial Attorneys Gary N. Donner and Erica H. Pencak.
Five-Time Convicted Felon Sentenced to Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. — A five-time convicted felon was sentenced Monday to three years and four months in prison for unlawful possession of a firearm and threatening his girlfriend’s life with the firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Working closely with our law enforcement partners, one of our office’s top priorities is reducing the threat of gun violence in our communities by prosecuting felons who illegally possess firearms,” said U.S. Attorney Trutanich. “This case helps illustrate the impact that the Department of Justice seeks to achieve through Project Veronica, which is providing new resources to curb domestic and sexual violence in Nevada, including gun crimes.”
Bryson Lamar Williams, a 34 year old from Las Vegas, pleaded guilty on June 24, 2020, to one count of felon in possession of a firearm. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Williams to three years of supervised release. Williams is prohibited from possessing a firearm because of his prior felony convictions for Attempted Grand Larceny Auto; Possession of a Controlled Substance; Attempted Possession of Stolen Property; Possession of a Firearm by an Ex-Felon; and Attempted Ownership or Possession of a Firearm by a Prohibited Person.
According to court documents, on October 12, 2019, Williams entered his girlfriend’s apartment, where she lived with her two children. Williams retrieved a .40 caliber pistol he had been storing in the closet. He exited the apartment, fired several shots in the parking lot of the apartment complex, and then re-entered the residence to reload the firearm. While in the apartment, he threatened his girlfriend with the firearm, stole her phone, and stated: “If you let anyone know, or call the police then you already know what’s gonna’ happen and everyone’s gonna’ get killed.” Williams attempted to flee and, shortly afterwards, Las Vegas Metropolitan Police Department officers arrested him.
This case resulted from an investigation by the ATF with assistance from the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Daniel Clarkson prosecuted the case.
This case was brought as part of Project Veronica, an initiative that the Department of Justice and the U.S. Attorney’s Office for the District of Nevada launched in August 2020. Project Veronica brings together law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada to curb domestic violence and sexual violence. Project Veronica is named in honor of a local victim of domestic violence named Veronica Caldwell. In 2015, Veronica lost her life at the hands of her husband, who also shot and killed Veronica’s daughter Yvonne and her daughter’s boyfriend.
###
Federal Authorities Announce More Seizures in Ongoing Effort to Combat COVID-19 Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Andrew Murray announced the results of the U.S. Attorney’s Office latest public legal action in its ongoing efforts to combat fraud schemes seeking to exploit the coronavirus pandemic. A warrant resulting in the seizure of $140,490.34 from a bank account has been unsealed in federal court. Law enforcement seized the funds after determining that the account was used to perpetuate COVID-19 fraud.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
The affidavit filed in support of the federal warrant alleges that the funds were seized as part of an investigation of a COVID-19 Small Business Administration (SBA) Paycheck Protection Program fraud scheme. The alleged scheme implicated a bank account purportedly opened by Oscar Estala, and/or one or more other individuals in the Western District of North Carolina. As alleged in court documents, the bank account identified in the seizure warrant was used to receive approximately $149,900 in funds fraudulently obtained from the SBA, purportedly for a small business named “VR Wesson.” The funds from the SBA are intended to provide financial assistance to qualifying small businesses and individuals impacted by the coronavirus outbreak. As alleged in the unsealed affidavit, law enforcement determined that the account that received the funds was not used to fund a business or employees impacted by COVID-19. Instead, the account was used to make retail and gift card purchases.
The unsealing of the warrant adds to a list of unsealed court documents in which the U.S. Attorney’s Office, the U.S. Secret Service, and other federal, state and local law enforcement partners, including the Charlotte-Mecklenburg Police Department, have coordinated and worked closely to combat fraud related to the coronavirus, and to recover hundreds of thousands in proceeds of such fraud.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Secret Service for their work in this case. U.S. Attorney Murray also thanked financial institutions in the Western District of North Carolina for their cooperation and their efforts to detect and report COVID-19 financial fraud.
Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal warrants.
U.S. Attorney Murray also urged the public to remain alert in detecting COVID-19 fraud and to report suspicious activity to the local authorities, or by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator at the U.S. Attorney’s Office.
El Dorado Springs Woman, New Jersey Man Sentenced to 18 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An El Dorado Springs, Missouri, woman and a North Plainfield, New Jersey, man were sentenced in federal court today for producing child pornography.
Amanda Errin Hunt, 41, and Daniel Thomas Baggott, 38, each were sentenced by U.S. District Judge Brian C. Wimes to 18 years and four months in federal prison without parole. The court also sentenced Hunt and Baggott to spend the rest of their lives on supervised release following incarceration. They will be required to register as sex offenders upon their release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout their lives.
On Oct. 21, 2019, Baggott pleaded guilty to one count of child sexual exploitation and one count of the coercion and enticement of a minor. On Sept. 16, 2019, Hunt also pleaded guilty to one count of child sexual exploitation and one count of the coercion and enticement of a minor.
The investigation began when Facebook initiated a CyberTip with the National Center for Missing and Exploited Children on April 7, 2019. Facebook reported that Hunt and Baggott exchanged images of child pornography through Facebook Messenger. Investigators also discovered sexually explicit messages, along with shared images of child pornography, between Hunt, Baggott, and the 15-year-old victim, identified in court documents as “Jane Doe.”
Baggott admitted that he met Hunt and Jane Doe through PlayStation Home approximately 12 years ago. The first time he went to visit them in El Dorado Springs was approximately six or seven years ago. Baggott admitted to requesting sexually explicit images and videos of Jane Doe. He stated this started approximately a year and a half ago and it became a regular occurrence.
Hunt admitted to taking sexually explicit images of Jane Doe and asking Jane Doe to take sexually explicit images that Baggott requested. Hunt also admitted to sending Baggott the sexually explicit images of Jane Doe and engaging in the sexual chat messages in Facebook Messenger with Baggott regarding Jane Doe. Hunt advised that Baggott had come to Missouri at least once a year since 2014.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cybercrime Task Force, and the New Jersey Internet Crimes Against Children Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Driver indicted for fleeing checkpoint in human smuggling conspiracyRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 50-year-old Laredoan for charges related to the smuggling of an undocumented alien and fleeing from an immigration checkpoint, announced U.S. Attorney Ryan K. Patrick.
Arturo Trevino is charged with one count of conspiracy to transport an undocumented alien and one count of high-speed flight from an immigration checkpoint. He is expected to appear before a U.S. magistrate judge in Laredo in the near future.
According to the criminal complaint originally filed in the case, Trevino drove his pickup truck to the Border Patrol (BP) checkpoint on Interstate Highway 35 north of Laredo on Sept. 3. Soon after, a K-9 allegedly alerted to the presence of concealed persons, according to the charges.
The complaint alleges authorities referred him to secondary inspection. However, he allegedly ignored their instruction, driving past it and back onto the interstate at a high rate of speed.
Authorities pursued the vehicle for nearly two miles as Trevino drove at speeds in excess of 75 mph, according to the charges. He allegedly drove his vehicle across the median and access road onto the grass, eventually crashing into an electric pole.
Authorities conducted a search of his pickup truck and allegedly discovered an undocumented alien from Mexico behind the driver’s seat.
If convicted, Trevino faces up to 10 years in federal prison and a possible $250,000 maximum fine.
BP conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Department of Justice and Oglala Sioux Tribe Announce New Partnership to Combat Domestic ViolenceRead the Press Release
United States Attorney Ron Parsons and Oglala Sioux Tribe Attorney General Scott James are pleased to announce that the Office on Violence Against Women (OVW), part of the U.S. Department of Justice, has awarded a three-year grant to the Oglala Sioux Tribe to combat domestic violence and other serious crimes. The Tribal Special Assistant United States Attorney (Tribal SAUSA) Initiative, financed through a partnership between OVW and the Bureau of Justice Assistance, funds and trains cross-deputized tribal prosecutors in federal law and procedure and investigative strategies so they can pursue domestic or sexual violence cases in tribal court, federal court, or both.
Under this initiative, the Oglala Sioux Tribe will receive funding to hire an additional tribal prosecutor, who will also be appointed as a Special Assistant U.S. Attorney in the District of South Dakota, to prosecute domestic abuse, sexual assault, and stalking cases in both tribal and federal court. This new position will enable the U.S. Attorney’s Office and OST Attorney General’s Office to increase their collaborative efforts to hold violent offenders accountable and bring justice to victims of domestic violence and sexual abuse living within the Pine Ridge Reservation.
“Working closely with the Oglala Sioux Tribe to protect victims and prosecute violent offenders for crimes committed on tribal land is a top priority for my office,” said U.S. Attorney Parsons. “This new position will help the Oglala Sioux Tribe take an even more robust approach to safeguarding domestic and sexual abuse victims and their families. We look forward to partnering with Attorney General James and his team in this critically important initiative.”
"These additional resources to combat domestic violence crimes on the Pine Ridge Indian Reservation were desperately needed,” said Attorney General James. “We thank the U.S. Attorney's Office for helping the tribe to acquire this grant. The Tribal Attorney General's Office looks forward to working with this new Special Assistant U.S. Attorney to hold offenders accountable and to bring justice to victims of domestic violence crimes."
The Oglala Sioux Tribe is one of only five Indian tribes in the country to receive a Tribal SAUSA award this year.
Department of Justice Marks 20th Anniversary of Religious Land Use and Institutionalized Persons Act with Comprehensive 20-Year ReportRead the Press Release
The Justice Department today marked the 20th Anniversary of the Religious Land Use and Institutionalized Persons Act (RLUIPA) by releasing a comprehensive report detailing how RLUIPA has helped preserve the religious liberty rights of thousands of individuals and institutions.
RLUIPA, which protects the rights to use land for religious purposes without discrimination or unduly burdensome regulation, and protects the religious exercise of persons confined to institutions, was signed into law by President Clinton 20 years ago today. The report recounts the history and purpose of RLUIPA, how it has been interpreted in the courts, and the Department of Justice’s enforcement efforts, which have protected the religious liberty of people of a wide range of faiths in a broad array of settings.
Eric Dreiband, Assistant Attorney General for the Civil Rights Division, stated: “For more than four centuries, religious people from all over the world have sought refuge here. Often, these people did so to escape persecution by monarchs, dictators, and other despots. Then, when our ancestors established the United States of America, the Founders adopted the First Amendment to the United States Constitution and thereby preserved in law the right of all people to exercise religion. Two decades ago, the Congress extended these protections when it passed RLUIPA. The Department of Justice is steadfastly committed to enforcing RLUIPA vigorously to protect the right of all people to practice their faith and worship together.”
Some key points in the report include:
- The Department of Justice has opened 553 preliminary and full investigations under RLUIPA; filed 28 RLUIPA lawsuits; filed 53 amicus briefs and statements of interest in privately filed RLUIPA cases; and intervened in more than 65 cases to defend the constitutionality of RLUIPA.
- Under the department’s Place to Worship Initiative, launched in June 2018, the department has filed double the number of RLUIPA cases and briefs, and 60% more full investigations, compared to the department’s RLUIPA filings in an average two-year period.
- Filed cases and briefs that have protected the rights of a wide range of religious groups, including Christians, Muslims, Jews, Sikhs, Hindus, Native Americans, and others.
- The department’s land use cases frequently involve the rights of minority faiths. 55% of the department’s court filings have involved Muslims and Jews. This is consistent with the legislative history of RLUIPA, where Congress found that minority faiths were disproportionately represented in zoning disputes.
The report is attached. More information about the Place to Worship Initiative is available at www.justice.gov/crt/placetoworship. More information about the enforcement of the RLUIPA rights of prisoners and others confined to institutions is available at the Special Litigation Section RLUIPA page, https://www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Defendant Admits He Fired Shots in Newton Armed RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today to an armed robbery at a convenience store in Newton, U.S. Attorney Stephen McAllister said.
Jorge Correa, 25, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, Correa admitted that on Feb. 4, 2020, he and two co-defendants robbed the EZ Trip at 100 S. Main in Newton, Kan. Both Correa and another man were armed when they entered the store. Correa had a military style rifle. The clerk gave them cash, but Correa demanded more. While the clerk was getting money from her purse, Correa fired several shots that hit the ceiling, aisle displays and an ATM machine.
Co-defendant Rico Montes is set for a change of plea hearing Sept. 30. Co-defendant Jeremiah Urias is set for a change of plea hearing Sept. 28.
Correa is set for sentencing Dec. 8. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Kansas Highway Patrol, the Newton Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Denver Doctor Justin Neisler Sentenced to Twenty-Three Years in Federal Prison for Producing Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Dr. Justin Neisler, age 32, of Denver, Colorado, was sentenced to serve 276 months (23 years) in federal prison, followed by 10 years in supervised release for the production of child pornography. He was also ordered to pay $10,100 in assessments to the Court and into funds set up to assist victims of child exploitation crimes. Dr. Neisler appeared at the sentencing hearing in custody and was remanded at the hearing’s conclusion, to be placed in an institution designated by the U.S. Bureau of Prisons. The Denver office of the FBI joined in this announcement.
According to the stipulated facts contained in Dr. Neisler’s plea agreement, on November 2, 2018, the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force received a tip that child pornography was being distributed by means of social media accounts, later determined to belong to Dr. Neisler. The accounts made child pornography available to others.
On March 13, 2019, agents executed a search warrant at Dr. Neisler’s residence. During the search it was determined that Dr. Neisler had child pornography on his cell phone and on various other electronic media. Dr. Neisler’s electronic devices were later reviewed by FBI forensic examiners, revealing approximately 6,600 still images and 1,725 videos of child pornography that he had obtained from online sources.
The investigation further determined that during some of Dr. Neisler’s medical examinations of young boys, he secretly video recorded them while they were undressed and without their knowledge, using a Spy Pen Camera and his iPhone. Dr. Neisler would then watch those videos at home for his own gratification. During the investigation and prosecution, the victims were identified and interviewed to make certain that no other hands-on offenses occurred. The investigation also determined that the videos made by Dr. Neisler were not distributed to others. Although it is not part of the federal prosecution, the U.S. Attorney’s Office has been advised that Dr. Neisler’s Colorado medical license has been suspended and will be forfeited following his sentencing hearing.
“This sentence is wholly appropriate in light of the horrific acts committed by the one person besides a parent that a child is told to trust unquestionably,” said U.S. Attorney Jason Dunn. “Our hope is that the sentence gives his victims and their parents some sense of closure and allows them to move forward with their lives.”
"I am extremely proud of the collaborative effort by the FBI Denver Child Exploitation Task Force put forth in order to ensure this defendant was brought to justice and will no longer be able to harm children again,” said FBI Denver Special Agent in Charge Michael Schneider. “Knowing that Mr. Neisler will serve the next 23 years in federal prison, ensures there is one less predator victimizing the most innocent and vulnerable members of our community. Our community is a lot safer as a result of today’s sentencing.”
Dr. Neisler was prosecuted by Assistant U.S. Attorneys Patricia Davies and Alecia Riewerts. The sentence was pronounced by U.S. District Court Judge Raymond P. Moore. The case was investigated by the Denver Division of the FBI.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 19-cr-150.
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 U.S. Attorneys’ Offices and 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.justice.gov/psc.
D.C. Felon Pleads Guilty in Federal Court in Maryland to Illegal Possession of a “Ghost Gun” Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – Martrel Rayshard Reeves, age 30, of Washington, D.C., pleaded guilty today to being a felon in possession of a firearm and ammunition.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Interim Chief Hector Velez of the Prince George’s County Police Department.
“Law enforcement must be able to keep guns out of the hands of convicted criminals,” said U.S. Attorney Robert K. Hur. “So-called ‘ghost guns’ circumvent the laws designed to prevent felons from possessing firearms because they have no serial numbers and do not require background checks.”
According to his plea agreement, on July 8, 2018, law enforcement executed a traffic stop on Reeves’ vehicle, a black Dodge Charger, for traffic violations. The car was occupied by Reeves and a female passenger. Reeves did not have a driver’s license or other identification and a check of his driving record revealed that his license had been suspended. Officers asked Reeves to step out of the car. Law enforcement smelled alcohol on Reeves’ breath and the odor of marijuana on his person. The vehicle was searched and law enforcement recovered a .40-caliber pistol, loaded with 10 rounds of ammunition, from a black bag in the car. Reeves admitted at the scene that the firearm belonged to him, following which, he was arrested.
As detailed in Reeves’ plea agreement, the pistol was test-fired and found to function as a firearm. The gun recovered in Reeves’ car is what is known as a “ghost gun”—in that it was made from a firearm parts kit. These kits can be purchased from various kit manufacturers or secondary retailers, including Internet websites. Crucially, convicted felons, who are prohibited from possessing firearms or ammunition as a result of their convictions, can order such firearm kits and assemble an untraceable working gun in the privacy of their homes in as little as one hour with minimal effort.
Reeves faces a maximum sentence of 10 years in federal prison for illegal possession of a firearm by a previously convicted felon. 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 Paula Xinis has scheduled sentencing for January 5, 2021, at 9:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Erin B. Pulice, who are prosecuting the case.
# # #
Corona Woman Sent Back to Prison for Executing Celebrity-Based Scam Soon After Release from Custody in Prior Fraud CasesRead the Press Release
LOS ANGELES – A Corona woman who recently completed a 79-month federal prison sentence stemming from a $15 million bank fraud scheme was ordered back to prison on Monday for executing a similar fraud scheme in which she lied to a victim about celebrities such as LeBron James supporting her supposed venture.
Carolyn Marie Jones, 57, was sentenced Monday afternoon to 20 months in prison by United States District Judge Michael W. Fitzgerald after she admitted violating the terms of her supervised release. Once she completes this prison stint, Jones will be on supervised release for 40 months.
At Monday’s hearing, Jones admitted that she violated the terms of her supervised release by defrauding a victim in violation of California law. While still in custody and then immediately after being placed on supervised release, Jones fraudulently obtained a $13,000 investment “through a myriad of lies, false pretenses, and material omissions,” court documents state.
According to documents filed by prosecutors, Jones purported to be a successful and well-connected denim jeans entrepreneur, claiming that numerous celebrities supported her denim brand, including the Kardashian and Jenner families, Taylor Swift, Floyd Mayweather, Chrissy Teigen, Will Smith, and Jada Pinkett Smith. Jones also falsely claimed that LeBron James had offered her $500,000 for equity in her company.
“In the wake of the helicopter crash that killed Kobe Bryant and one of his daughters, [Jones] used their deaths as a way to prop up her company and bolster her carefully-crafted image of being a well-connected entrepreneur,” the government’s sentencing memorandum states. Text messages show that Jones falsely told the victim that she was in contact with the Bryant family after the crash, consoling them, and that prior to his death, Bryant had wanted his daughters to be the “face” of her denim brand.
Jones admitted on Monday that she violated other terms of her release by failing to disclose an open line of credit, failing to disclose an open bank account, and engaging in a business involving the solicitation of funds without the express prior approval of her probation officer.
As he ordered her back to federal prison, Judge Fitzgerald told Jones: “This is the final chance.” If Jones violates any term of her supervised release again, Judge Fitzgerald said that he would give her the “harshest sentence” permitted by law.
The prison sentence completed earlier this year was the result of two cases against Jones – one involving bank loans and bankruptcy fraud, and another involving a wire fraud scheme Jones perpetrated while free on bond in the first case. Both indictments stemmed from Jones’s false portrayal of herself as a successful and well-connected denim jeans entrepreneur. Jones’s fraud schemes related to her company, DDI, sometimes known as Diamond Decisions, Inc., which sold high-end jeans under the labels Privacywear and PRVCY Premium.
Jones pleaded guilty in February 2015 to one count of bank fraud and one count of concealing assets in bankruptcy. Jones “executed not one, but two, fraud schemes of epic proportions resulting in a loss to Union Bank and numerous investors of $15,124,100,” prosecutors wrote in a sentencing memorandum.
When she received the 79-month sentence in December 2015, Judge Fitzgerald characterized Jones as “truly a greedy, awful person.”
This case was investigated by IRS Criminal Investigation and the United States Secret Service.
The cases against Jones were handled by Assistant United States Attorneys Ruth C. Pinkel and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Anyone who has information about Jones’s conduct or thinks they may be a victim of Jones is encouraged to contact IRS Criminal Investigation’s Los Angeles Field Office at (213) 372-4490.
Convicted Impersonator Charged with Contempt of Court/Witness Tampering and Obstruction of Justice While Pending Federal Charges of Defrauding Elderly Victims, Impersonating Federal and Territorial Officials, and Obstruction of JusticeRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a federal complaint has been filed charging Yamini Potter with one count of contempt of court/witness tampering and obstruction of justice in violation of 18 U.S.C. §402 and §1512. Potter is currently charged with eighty counts of wire fraud, two counts of impersonating a federal judge, and obstruction of justice in violation of federal law and two counts of acting in assumed character and one count of grand larceny in violation of Virgin Islands law. Potter’s next court date is Thursday, September 24, 2020.
According to the affidavit filed in this case, between September 3-14, 2020, Potter violated a court order which expressly prohibited Potter from contacting the alleged victims in this case. Potter is currently in custody pending federal charges and local charges for larceny. All of his phone calls are recorded. The affidavit further alleges that Potter, while impersonating Virgin Islands Attorney General Denise George, called the victims in this case multiple times telling them not to testify or cooperate. He even admitted knowing there was a violation of the no contact court order.
The affidavit further alleges that Potter, pretending to be Ms. George, tells the victims not to come to court or speak with the FBI. Potter, acting as Ms. George, tells the victims Potter is dangerous because Potter committed a murder, has been in jail for murder, and describes the violence caused upon his purported victim. Potter further threatens one of the victims with murder and injury if they testify against him.
Prior court documents reveal that Potter pled guilty in 2015 to impersonating an FBI agent in violation of federal law. He was sentenced to one year in prison for that offense.
This case is being investigated by the Federal Bureau of Investigation, the Virgin Islands Police Department, and the Virgin Islands Bureau of Corrections. It is being prosecuted by Assistant United States Attorney Alessandra P. Serano.
United States Attorney Gretchen C.F. Shappert encourages anyone, and especially elderly victims, who may be a victim of fraud – or of any other crime - to come forward and make a report to the FBI at (340) 777-3363. U.S. Attorney Shappert also reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
For more information on the Department of Justice’s Elder Justice Initiative, please see: https://www.justice.gov/elderjustice.
Central Arkansas Drug Organization Dismantled After Arrest OperationRead the Press Release
LITTLE ROCK-A sweeping law-enforcement operation that involved numerous agencies and targeted members of a drug-trafficking organization responsible for the distribution of multiple kilograms of methamphetamine, heroin, and cocaine in central Arkansas resulted in more than a dozen arrests Tuesday morning.
The organization is alleged to be led by Britney Allen, 33, of Jacksonville. The indictment, which was returned by a Grand Jury on September 11, 2020, and unsealed today, named 20 other defendants alleged to be part of Allen’s organization. Law enforcement officers arrested 13 individuals in the early morning hours and served an arrest warrant Tuesday on one defendant already in state custody. Seven defendants are currently considered fugitives (see defendant list).
This investigation, named Operation Wagon Wheel, was the result of several law enforcement agencies, led by the Drug Enforcement Administration (DEA), attacking the drug-trafficking organization on multiple fronts. During the course of the investigation, which began in 2019, the DEA utilized court-authorized wiretaps to intercept hundreds of drug-trafficking calls, primarily involving Allen. Law enforcement officers, including DEA agents and several local police departments, conducted more than 10 controlled purchases of methamphetamine or heroin. Numerous seizures following local police arrests occurred as well. More than 10 kilograms of methamphetamine, and multiple ounces of heroin and cocaine have been seized, along with more than $50,000. At least eight firearms have also been recovered from the organization.
During arrest operations Tuesday morning, agents recovered several more ounces of methamphetamine and cocaine and approximately an additional $10,000 in suspected drug proceeds.
“This operation has taken 21 drug dealers off the streets of our communities,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “Drugs and violence go hand in hand, and removing firearms from these offenders is a major step towards creating a safer community. We will continue to work with our federal, state, and local partners to keep our district safe from the violence that accompanies drug trafficking.”
In addition, during the investigation officers discovered Allen was acquiring methamphetamine through the mail. The DEA and United States Postal Service identified numerous suspected drug packages being sent through the mail and recovered more than three pounds of methamphetamine.
“The Postal Inspection Service will spare no effort to disrupt criminal enterprises and present those involved for prosecution,” said Ketty Larco, Acting Inspector in Charge of the Fort Worth Division. “Postal Inspectors are committed to disrupting the activities of those who use the U.S. Mail in the course of their criminal activities. These arrests represent a commitment to safeguarding the Postal Service and its customers, and we appreciate the excellent work by the U.S. Attorney’s Office in addition to partnering federal and local agencies.”
Officers also executed search warrants at various houses alleged to be used by Allen and his associates to house and distribute drugs. The DEA coordinated with numerous local police agencies to adopt state charges into the overarching federal case. In all, the 21 defendants are named in 48 different counts.
The defendants include multiple individuals who have previously been convicted of state felonies, including prior convictions for drug trafficking or firearm possession.
“The damage caused by drugs and violence affects everyone across the nation, including here in the Eastern District of Arkansas,” DEA Assistant Special Agent in Charge Justin King said. “Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs. The indictments and arrests of these individuals should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
The investigation was led by the DEA, North Little Rock Police Department, and United States Postal Service, with assistance from the Sherwood Police Department, Jacksonville Police Department, Conway Police Department, Pulaski County Sherriff’s Office, Arkansas State Police, Arkansas Department of Community Corrections, Beebe Police Department, Saline County Sheriff’s Office, and the 14th Judicial Drug Task Force.
The charges in today’s unsealed indictment include conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and cocaine; distribution and possession with intent to distribute methamphetamine, heroin and cocaine; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm; and use of a phone to facilitate a drug-trafficking crime.
The maximum penalty for the drug charges is not less than 10 years in prison and up to life imprisonment and a $10,000,000 fine. The maximum penalty for possessing a firearm in furtherance of a drug-trafficking crime is not less than five years in prison and up to life imprisonment and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm is 10 years’ imprisonment and a $250,000 fine. The maximum penalty for use of a phone to facilitate a drug-trafficking crime is four years’ imprisonment and a $250,000 fine.
The defendants arrested today will appear before U.S. Magistrate Judge Patricia S. Harris on September 23, 2020, at 2:00 p.m. for plea and arraignment. The case, docketed as Case No. 4:20CR00267 DPM, is pending before U.S. District Judge Lee Rudofsky, and the trial date will be announced at plea and arraignment. The case is being prosecuted by Assistant United States Attorney Chris Givens. The defendants charged include:
Britney Decore Allen, a/k/a “Big B”, 33, Jacksonville *
Shakeba Allen, 35, Jacksonville, AR *
Cojan Bailey, a/k/a “Cojan Owens”, a/k/a “Cogee”, 44, Roe %
Joshua Dean Bath, 43, Flippin %
Michael Birts, a/k/a “Lil’ Mike”, 28, Jacksonville %
Scott Nickson Cain, 46, Jacksonville *
Cassandra Chambers, 36, Stuttgart *
Brittney Craig, a/k/a/ “Brittney Dismuke”, 40, Searcy *
James Cunningham, 25, Conway &
Shane Anthony Daugherty, 44, Sherwood *
Francisco Manuel Deltoro, 27, North Little Rock *
Tavio Gustravus Garrison, 32, North Little Rock *
Marlena Hales, 36, Beebe *
Jason Patrick Jackson, 34, Searcy *
Kevin Lamont Jarrett, 24, Jacksonville %
Shameka McClain, 37, Jacksonville %
Anthony Neal Reeves, 39, Stuttgart *
Anthony Charles Rowland, a/k/a “Duck”, a/k/a “D”, 41, Jacksonville %
April Jeanette South, 31, Jacksonville *
Nichlaus Vetor, 41, Greenbrier %
Andrew David Womble, 35; North Little Rock *
* arrested Tuesday
& in state custody
% fugitive
An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
California Man Pleads Guilty to Methamphetamine Conspiracy Caught Transporting 10 Pounds of Meth to IowaRead the Press Release
A California man who conspired to distribute methamphetamine in Iowa pled guilty on September 17, 2020, in federal court in Sioux City.
Gabriel Mata-Becerra, 37, from Hayward, California, pled guilty to conspiracy to distribute methamphetamine.
At the plea hearing, Mata-Becerra admitted that beginning on or about March 2019 and continuing to on or about May 2019, he and others had an agreement to distribute more than 50 grams of actual (pure) methamphetamine. In furtherance of that agreement, on or about April 21, 2019, Mata-Becerra was traffic stopped in Wyoming and law enforcement seized approximately ten pounds of ice methamphetamine from inside an unconnected speaker box in the trunk of his vehicle. Mata-Becerra further admitted that he had acquired the methamphetamine in California and was traveling from California to Hawarden, Iowa to deliver the methamphetamine to another person.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Mata-Becerra remains in custody of the United States Marshal pending sentencing. Mata-Becerra faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office; the Wyoming State Patrol; and Wyoming Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4054. Follow us on Twitter @USAO_NDIA.
Businessman gets life sentence for long-term sex trafficking of young girlRead the Press Release
CORPUS CHRISTI, Texas – A 68-year-old aquaculture company owner has been ordered to federal prison following his conviction of sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick.
A Corpus Christi federal jury deliberated for one day before convicting David Keith Wills, Oct. 8, 2019, following a 10-day trial. Wills, previously from Rockport and South Padre Island, is the founder and part owner of Global Blue Technologies. The jury convicted him on multiple counts of sex trafficking and enticement of a child as well as one count of conspiring to obstruct justice.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, ordered Wills to serve a life sentence. At the hearing, the court heard a statement from the minor victim detailing how Wills destroyed her childhood and caused her lifelong trauma. Judge Ramos further ordered Wills to pay $172,000 restitution to the victim and $85,000 in fines.
“For three years, this individual preyed on the innocence of our most vulnerable population relying on economic and psychological manipulation to control and silence his victim,” said Mark Dawson, special agent in charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston. “With today's sentencing we have removed this predator from the community and sent a resounding message that we are committed to working with our law enforcement partners to aggressively investigate and prosecute anyone who seeks to exploit our nation's children.”
At trial, the jury heard that from 2012 to 2015, Willis conspired with his mistress Maria Candelaria Losoya to traffic the minor female for sex beginning when she was just 10 years old. Losoya and Wills used their cell phones to arrange meetings at several different locations where Wills would sexually assault the girl. These included Wills and Losoya’s respective residences as well as hotels and motels in the greater Corpus Christi area.
Wills sexually assaulted the minor female multiple times until she reported it in April 2015.
During this time, Wills promised to pay the victim’s college tuition if he was allowed to sexually assault the young girl. He also reimbursed Losoya for gifts to the victim and expenditures she would otherwise not have been able to afford. These included an iPad, Bose headphones, flatscreen TV, Apple laptop, trampoline, swimming pool and a school trip to Washington D.C.
After the victim reported the abuse, Wills conspired with a friend to remove a laptop from his home, wanting to destroy it to prevent law enforcement from seizing and reviewing it.
Several witnesses testified at the trial including the minor victim, forensic interviewer, the nurse who first examined her, several state and federal law enforcement officers and an expert witness. An eyewitness also described seeing the victim at a Portland hotel where Wills and Losoya met in March 2014.
The jury also heard from multiple defense witnesses attesting to his character and successes, while attempting to contradict testimony Losoya and the victim gave.
HSI conducted the investigation with assistance of Brownsville Police Department and Texas Rangers.
Assistant U.S. Attorneys Zahra Jivani Fenelon, Richard Bennett and Stephanie Bauman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Brother-Sister Duo Sentenced in Fraud CaseRead the Press Release
GREENSBORO, N.C. B Two siblings were sentenced in federal court for making false claims against the United States, making false statements to a bank, and aggravated identity theft, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMES ERNEST GANDY, JR., age 36, of Dunn, NC, was sentenced by United States District Court Judge Catherine C. Eagles in Greensboro on Friday, September 18, 2020, to 51 months in prison and three years of supervised release. The Court also ordered JAMES GANDY to pay $129,017 in restitution, and a forfeiture money judgment in the amount of $62,088.19.
JAMIE VICTORIOUS GANDY, age 40, of Winston-Salem, NC, was sentenced today by Judge Eagles to 39 months in prison and three years of supervised release. The Court also ordered JAMIE GANDY to pay $139,254 in restitution, and a forfeiture money judgment in the amount of $62,088.19.
“Every taxpayer depends on the integrity of the tax system and the United States Attorney’s Office is committed to prosecuting tax fraud,” said United States Attorney Matt Martin. “I commend IRS-Criminal Investigation for uncovering and investigating this tax fraud scheme.”
“These defendants thought they had a clever scheme to thwart the IRS and steal from American taxpayers,” said Matthew D. Line, IRS Criminal Investigation Special Agent in Charge. “IRS-Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to court documents, JAMIE GANDY worked as a supervisor at the Liberty Tax Services franchise store in Lexington, North Carolina. In this role, she both prepared returns and reviewed returns prepared by others. One of the services the Liberty Tax Store provided to customers was rapid refund loan products from Republic Bank and Trust Company (“Republic”). A customer could apply for a repaid refund loan, by which Republic would provide the refund to the customer in a short time period and then collect loan payment from the tax customer’s refund. Up to $1,300 of the repaid refund loan could be loaded onto a NetSpend card which would allow the customer quick access to cash from the refund loan. After JAMIE GANDY began to work as supervisor at the Liberty Tax Store, her brother, JAMES GANDY, began to appear at the Lexington Liberty Tax Store, purportedly to visit his sister. JAMES GANDY operated a business in Dunn, North Carolina providing shipping pallets.
The operator of the Lexington Liberty Tax Store focused on business development and relied on JAMIE GANDY and other preparers to prepare and file returns. After receiving complaints from customers that they had not received their tax refunds and observing other indicia of fraud, a company audit revealed that numerous fraudulent returns had been filed at the Lexington Liberty Tax Store, usually under the name of JAMIE GANDY.
Many of the fraudulent returns were filed without the taxpayer’s authority or knowledge. Some of these returns were filed in the name of employees of JAMES GANDY’s pallet business without their knowledge or consent. In these cases, the W-2 forms attached to the returns had been falsified to enlarge the taxpayer’s income. Other people sold their personal identifying information to JAMES GANDY in Dunn or in Greensboro. They were also unaware that returns had been filed in their names. For most of the fraudulent returns, JAMES GANDY provided the identifying information of the victims to JAMIE GANDY at the Lexington Liberty Tax Store. JAMIE GANDY then prepared and filed the false return. She then applied for a repaid refund loan from Republic in the name of the purported taxpayer, making use of the false tax return to induce Republic to load the initial repaid refund loan onto a NetSpend card. JAMES GANDY and JAMIE GANDY then used the NetSpend cards to convert the fraudulently obtained loan proceeds. For example, in one case JAMES GANDY used a NetSpend card from a fraudulent return filing to purchase a deluxe trampoline party for his family, followed by an overnight stay at the Grandover Resort in Greensboro.
The case was investigated by Internal Revenue Service-Criminal Investigation, and Assistant U.S. Attorney Frank J. Chut, Jr., prosecuted the case.
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.
###
Bridgeport Man Sentenced to 15 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, DEWAYNE JOYNER, also known as “Weezy,” 36, of Bridgeport, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 180 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to the evidence presented during a trial earlier this year, during the summer of 2017, members of the ATF, DEA and Bridgeport Police Department, who were investigating narcotics trafficking in Bridgeport’s East End neighborhood, learned that Joyner was selling heroin. In September 2017, investigators conducted controlled purchases of heroin from Joyner. The investigation revealed that Joyner was staying at a hotel in Bridgeport, and was storing narcotics in his hotel room.
The investigation subsequently revealed that Joyner and others had stolen a large quantity of heroin during an armed home-invasion robbery on September 2, 2017. Joyner discharged two rounds from a handgun during the robbery.
Joyner was arrested on September 12, 2017. At the time of his arrest, a search of his person revealed a quantity of heroin, $1,326 in cash, four cellphones and his hotel room key. A search of the hotel room revealed more than 250 grams of heroin and items used to process and package narcotics for street sale.
On January 31, 2020, a jury found Joyner guilty of one count of possession with intent to distribute 100 grams or more of heroin, one count of possession with intent to distribute a quantity of heroin, and two counts of possession with intent to distribute, and distribution of, a quantity of heroin.
Joyner has been detained since his arrest.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Bridgeport Police Department. The DEA Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Sarala Nagala.
Bechtel & Aecom, U.S. Department of Energy (DOE) Contractors, Agree to Pay $57.75 Million to Resolve Claims of Time Charging Fraud at Doe’s Hanford Waste Treatment PlantRead the Press Release
Richland and Spokane, WA – Today, the United States Attorney’s Office for the Eastern District of Washington announced that major federal contractors Bechtel National Inc., Bechtel Corporation (Bechtel), AECOM Energy & Construction, Inc. (AECOM), and their subsidiary Waste Treatment Completion Company, LLC (WTCC), agreed to pay $57,750,000 to the U.S. Department of Justice (DOJ) to resolve claims that Bechtel and AECOM fraudulently overcharged the U.S. Department of Energy (DOE) in connection with its operation of the Hanford Waste Treatment Plant (WTP) project. The False Claims Act (FCA) claims arose from allegations that Bechtel and AECOM management were aware of and failed to prevent inflated labor hours being charged to DOE, and for falsely billing DOE for work not actually performed.
The WTP is located at DOE’s Hanford Site near Richland, Washington. Between 2001 and the present, DOE has paid billions of dollars to Bechtel and AECOM to have them design and construct the WTP, the purpose of which is to treat hundreds of millions of gallons of dangerous radioactive waste currently stored at the Hanford Site. To construct, operate, and maintain the WTP, Bechtel and AECOM employed hundreds of electricians, millwrights, pipefitters, and other skilled tradesmen known as “craft” workers.
As part of the settlement secured by the U.S. Attorney’s Office (USAO) for the Eastern District of Washington, Bechtel and AECOM admitted to a detailed Statement of Facts setting forth their actionable conduct. Between 2009 and 2019, Bechtel and AECOM admitted to overcharging DOE for unreasonable and unallowable idle time experienced by craft personnel. Bechtel and AECOM further admitted to failing to schedule and carry out adequate work to keep craft personnel sufficiently occupied and productive, resulting in excessive idle time. Bechtel and AECOM also admitted that Bechtel and AECOM management knew that craft personnel were experiencing idle time due to management’s failure to assign sufficient work, and that this idle time could, at times, last “several hours.” Finally, Bechtel and AECOM admitted that they improperly billed DOE labor costs for the unreasonable idle time and continued doing so for years, even after Bechtel and AECOM knew they were under investigation for the improper billing practices.
“Completing the WTP is not only critical to public safety and the environmental health of the Pacific Northwest, but is an urgent and critically important ongoing public health concern, which the DOE and the State of Washington have appropriately made a top priority,” said Joseph H. Harrington, First Assistant United States Attorney (FAUSA) for the Eastern District of Washington. “It is stunning that, for nearly a decade, Bechtel and AECOM chose to line their corporate pockets by diverting important taxpayer funds from this critically essential effort.”
Teri L. Donaldson, the Inspector General for the Office of Inspector General – Department of Energy (OIG - DOE) noted, “Bechtel National Inc., AECOM Energy & Construction Inc. and Waste Treatment Completion Company LLC, engaged in a massive scheme to submit tens of millions of dollars of false claims to the U.S. Government for unallowable and unjustified costs over a period of years – a pattern of conduct that continued even after U.S. authorities notified the defendants that these costs were unallowable.” Inspector General Donaldson added, “I would like to extend my deep gratitude to our dedicated colleagues at the U.S. Attorney’s Office for their excellent work in holding the defendants responsible for their continuing pattern of unacceptable and irresponsible conduct. Our colleagues at the U.S. Attorney’s Office worked tirelessly with Special Agents of the Office of Inspector General in putting the evidence together and building the strong case that led to this significant settlement.”
This is the second time that Bechtel and AECOM have been the subject of the DOJ’s fraud enforcement actions and have agreed to pay a large sum to resolve allegations of fraud and overcharging on the WTP project. In November 2016, the USAO announced that Bechtel and AECOM then agreed to pay $125 million to resolve claims that they knowingly violated quality standards at Hanford and used substandard materials in constructing portions of the WTP, and also improperly used federal funds to lobby Congress to, among other things, try to cut the DOE’s budget for independent oversight of work on the WTP.
As part of the settlement, Bechtel and AECOM also entered into a 3-year independent corporate monitor agreement, which requires Bechtel and AECOM to pay for a full-time independent monitor and assistant monitor selected by the USAO. These monitors will enjoy broad access to Bechtel’s and AECOM’s systems, meetings, personnel, and other information pertaining to labor charging. The monitors will also report directly to the United States. Bechtel and AECOM face additional liquidated damages of up to $10 million if they violate the terms of the monitoring agreement, provide false information, or fail to immediately correct any identified DOE contract issues.
Importantly, Bechtel and AECOM also agreed to fully cooperate and assist the United States in its ongoing investigation and enforcement efforts against individual officers and managers that facilitated or participated in the false labor billing practices. FAUSA Harrington added,
“Requiring Bechtel and AECOM to admit to their conduct and to subject themselves to independent monitoring reflects not only the seriousness of this matter, but the USAO’s commitment to holding repeat offenders accountable, whether they are multinational corporations or individuals.
I commend the agents of the DOE’s Office of Inspector General for their dedicated and tireless investigative work. The agents reviewed hundreds of thousands of documents, interviewed dozens of witnesses and copiously reviewed and catalogued hundreds of hours of video and audio recordings, to build a solid case for these extensive and false labor charge transactions. Their hard work, persistence, and professional skill made this complex and challenging case possible.
This Office will continue to work with its law enforcement partners to investigate and prosecute fraud, waste and abuse committed by contractors and individual wrongdoers at Hanford, to hold them accountable, and to safeguard public funds, and protect the critical work being done at Hanford.”
According to court documents, the false craft labor billing case began in late 2016 when four (4) whistleblowers, who were employed at the WTP, came forward with allegations of labor mischarging. In May 2017, these individuals, known as “Relators”, filed a qui tam complaint under seal in the U.S. District Court (EDWA). When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in February 2020, and that the United States, Bechtel, and AECOM reached this settlement following the United States’ intervention. Pursuant to the settlement agreement, the relators will receive $13,750,000 of the settlement amount. Another $25,789,039 of the settlement amount has been designated as restitution, meaning that it will be returned to DOE so that it is available for use in the ongoing Hanford efforts.
The settlement was the result of an investigation jointly conducted by the USAO and DOE OIG’s Western Field Office - Region 6, which is based in Richland. The USAO’s investigation and prosecution was handled by Special Assistant United States Attorney Frieda K. Zimmerman, and Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene, in the USAO’s Spokane Office.
###
For those members of the press interested in obtaining more information about this settlement, the USAO will host a virtual press conference at 11 a.m. on Wednesday, September 23, 2020, via WebEx, where the USAO will provide additional information and respond to questions regarding this resolution. If you are interested in virtually attending or participating, and have not received an invitation, please contact Debra Doll at (509) 835-6317 or [email protected] for further information.
78._final_executed_bechtel_settlement_agreement_and_sof.pdf 9._compliance_and_monitoring_agreement.pdfAttorney General William P. Barr and U.S. Attorney Justin Herdman announce update on Operation LegendRead the Press Release
During a press conference in Milwaukee today, Attorney General William P. Barr and U.S. Attorney Justin Herdman announced updates on Operation Legend.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
In Cleveland, 72 defendants have been charged with federal crimes, including 42 defendants charged with narcotics-related offenses, 26 charged with firearms-related offenses and four with other violent crimes.
U.S. Attorney Justin Herdman released the following statement:
“Operation Legend continues to remove persons prohibited from possession of firearms or ammunition, such as convicted felons, persons with histories of domestic violence, and traffickers of illegal narcotics off the streets,” said U.S. Attorney Justin Herdman. “As long as drugs, violence, and illegal firearms continue to harm our community, we will use our collaborative law enforcement partnerships and any resources available under Operation Legend to fight back.”
The Attorney General launched Operation Legend on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched in Kansas City, MO. on July 8, 2020, the operation expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district can be found here.
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in MilwaukeeRead the Press Release
Charges Announced Against Twenty-Six Defendants Alleged to Operate a
Violent Drug Trafficking Organization in MilwaukeeAt a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation Legend. He was joined by Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee, with ties to the Northern and Central Districts of California.
Attorney General Barr explained that since Operation Legend’s launch in July 2020, more than 3,500 arrests—including approximately 200 for homicide—have been made; more than 1000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
In Milwaukee, 47 defendants have been charged with federal crimes as part of Operation Legend:
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
As part of Operation Legend, U.S. Attorney Krueger further announced that in a criminal complaint unsealed today, 26 defendants have been charged with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana from California for distribution in the Milwaukee area. As alleged, after distributing the drugs in the Milwaukee area, certain defendants shipped drug proceeds through the U.S. Postal Service to co-conspirators in California. Multiple defendants possessed and brandished firearms during the course of the drug trafficking conspiracy.
Included among the defendants is Louis R. Perez III, also known as “Eight Ball,” who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested, including Manuel Soto and Antonio Rodriguez, who both allegedly distributed controlled substances in the Milwaukee area. Two California-based defendants, Julian Sanchez and Miguel Sarabia, are alleged to have supplied the drugs for distribution from California.
On September 22, 2020, federal, state, and local law enforcement officers executed arrest and search warrants related to this operation. Twenty-one of the defendants are now in custody. Law enforcement officers also executed over two dozen search warrants in Wisconsin and California, resulting in the recovery of at least 33 firearms, including a stolen Milwaukee Police Department firearm and a firearm with an obliterated serial number. As part of the operation, law enforcement also recovered over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations. Law enforcement also recovered approximately $170,000 in U.S. currency.
The following defendants are charged in the complaint:
Name
Age
Residence
Louis Rey PEREZ III
23
Milwaukee, WI
Xina YANG
22
Milwaukee, WI
Julian SANCHEZ
24
Costa Mesa, CA
Miguel SARABIA
45
Norwalk, CA
Gabriel MATTESON
22
La Mirada, CA
Louis Rey PEREZ, JR.
46
Milwaukee, WI
Manuel SOTO
28
Milwaukee, WI
Hauseng YANG
18
Milwaukee, WI
Antonio RODRIGUEZ
21
Milwaukee, WI
Hector ARENAS
27
Milwaukee, WI
Luis F. GOMEZ, JR.
19
Milwaukee, WI
Ivan J. GALAN
27
Milwaukee, WI
Jose A. ALVARADO
23
Milwaukee, WI
Esteban REYES
46
Milwaukee, WI
Kevin TAYLOR
28
Milwaukee, WI
Ma YANG
32
Milwaukee, WI
Mary YANG
29
Milwaukee, WI
Jasmine L. PEREZ
28
Milwaukee, WI
Michael BUB
33
Milwaukee, WI
Chong YANG
28
Milwaukee, WI
Michele M. HART
55
Milwaukee, WI
Mercedes HERBERT GONZALEZ
29
Milwaukee, WI
Azia YANG
18
Milwaukee, WI
Carina RODRIGUEZ
20
Milwaukee, WI
Ger YANG
20
Milwaukee, WI
Shayla A. KNUEPPEL
24
Milwaukee, WI
“We know that drug trafficking fuels gun violence, as traffickers maintain arsenals to enlarge their territory, protect their inventory, and intimidate others,” said U.S. Attorney Krueger. “That is why the Operation Legend strategy for Milwaukee includes joining federal, state, and local law enforcement resources to target violent drug traffickers. I commend the excellent partnerships that led to today’s charges.”
“The DEA is committed working with its local, state and federal law enforcement partners to keep the citizens of Milwaukee safe from drug trafficking and the violence that is always associated with it. Today’s arrests show the resolve of law enforcement to work together in order to identify, investigate, and prosecute individuals who profit from the national drug epidemic,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
All defendants are charged in a conspiracy to distribute at least 5 kilograms of cocaine or 1000 kilograms of marijuana. If convicted, the defendants face a mandatory minimum of 10 years in prison and up to life in prison. Certain defendants are also charged in a conspiracy to launder money. The penalties for that offense include up to 20 years in prison. Certain defendants are charged with possession of a firearm in furtherance of drug trafficking. If convicted of those firearms charges, the defendants face a mandatory minimum of five years in prison and up to life in prison.
The defendants were charged based on a long-term investigation led by law enforcement agents and officers from the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, the Waukesha County Sheriff’s Office, the Milwaukee Police Department, and the Greenfield Police Department. Law enforcement resources allocated by Operation Legend contributed to the investigation and today’s enforcement operation. Assistant United States Attorney Elizabeth Monfils and Assistant United States Attorney Gail Hoffman are prosecuting the case.
The public is cautioned that a criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Attorney General William P. Barr Announces Updates on Operation LegendRead the Press Release
ST. LOUIS, MO -Attorney General William P. Barr announced, at a news conference in Milwaukee today, updates on Operation Legend.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.
Breakdown of Operation Legend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, IL.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, TN.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, IN.
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Attorney General William P. Barr Announces Updates on Operation LeGend at Press Conference in MilwaukeeRead the Press Release
Charges Announced Against 26 Defendants Alleged to Operate a Violent Drug Trafficking Organization in Milwaukee
Memphis, TN – At a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation LeGend. He was joined by Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee. Law enforcement resources allocated by Operation LeGend contributed to the investigation and today’s enforcement operation.
Since Operation LeGend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. A prime example of that partnership is the announcement made today by U.S. Attorney Krueger.
This morning, federal, state, and local law enforcement officers arrested 21 of the 26 defendants charged by criminal complaint with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana
from California for distribution in the Milwaukee area. The officers also executed search warrants in both Milwaukee and California, resulting in the seizure of approximately 33 firearms, $170,000, and over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations.
Included among the defendants is Louis R. Perez III, also known as "Eight Ball," who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested.
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.
Breakdown of Operation LeGend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, Ill.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, Tenn.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, Indiana
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
###
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in MilwaukeeRead the Press Release
At a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation Legend. He was joined by Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee. Law enforcement resources allocated by Operation Legend contributed to the investigation and today’s enforcement operation.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. A prime example of that partnership is the announcement made today by U.S. Attorney Krueger.
This morning, federal, state, and local law enforcement officers arrested 21 of the 26 defendants charged by criminal complaint with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana from California for distribution in the Milwaukee area. The officers also executed search warrants in both Milwaukee and California, resulting in the seizure of approximately 33 firearms, $170,000, and over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations.
Included among the defendants is Louis R. Perez III, also known as “Eight Ball,” who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested.
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.
Breakdown of Operation Legend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, IL.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, TN.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, IN.
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Atlantic County Woman Admits Soliciting Act of Violence Against Ex-BoyfriendRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman today admitted that she paid a man that she believed to be a hitman $4,000 in October 2018 to assault her ex-boyfriend, U.S. Attorney Craig Carpenito announced.
Diane Sylvia, 60, of Somers Point, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging her with one count of solicitation to commit a crime of violence with the intent to seriously injure another.
According to documents filed in this case and statements made in court:
In September 2018, Sylvia, a licensed clinical social worker with a private mental health counseling practice in Linwood, New Jersey, asked one of her patients, whom she had reason to believe was formerly involved in organized crime, whether the patient could recommend someone to her so that she could have her ex-boyfriend assaulted. Ultimately, an undercover FBI agent, posing as a hitman, met with Sylvia. In recorded meetings in her office and in telephone conversations, Sylvia described how she wanted the purported hitman to punch her ex-boyfriend’s face and break his arm. She told the purported hitman that her ex-boyfriend had stolen money from her and was extorting her.
On Oct. 31, 2018, Sylvia met with the FBI undercover agent in her office and paid him $4,000 in cash to carry out the assault. The agent told Sylvia to get rid of the pre-paid cell phone that she was using to communicate with him. Sylvia asked the purported hitman if she should throw the phone off the Ocean City Bridge. After the meeting, Sylvia was arrested by FBI agents.
The charge of solicitation to commit an act of violence carries a maximum punishment of five years in prison and a fine of $125,000. Sentencing is scheduled for Jan. 27, 2021.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Camden Division.
Atlantic County Man Admits Drug and Firearm OffensesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing large quantities of heroin, cocaine, and methamphetamine, along with a firearm, U.S. Attorney Craig Carpenito announced.
Joseph Brandenberger, 35, of Absecon, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with possessing with intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and 50 grams or more of methamphetamine, and possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Brandenberger was arrested following an investigation that revealed he was using a rented storage unit to conceal a large cache of drugs and a firearm. Upon execution of a search warrant at the location on June 18, 2019, investigators seized 507.6 grams of heroin, 524.3 grams of cocaine, and 107.2 grams of methamphetamine, along with $1,812 in cash and drug packaging material. Investigators also found a loaded Tech-9 9mm handgun. As a previously convicted felon, Brandenberger is prohibited by federal law from possessing a firearm or ammunition.
The count of possession of heroin, cocaine and methamphetamine with intent to distribute carries a minimum of five years in prison and a maximum of 40 years in prison, and a $5 million fine. The firearm count carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2020.
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 Molina, Newark Division; and inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. He also thanked 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 the Absecon Police Department, under the direction of Chief James R. Laughlin, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Armed Career Criminal Sentenced to 20 Years for Illegally Possessing Firearm and NarcoticsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Jimmy Ray Lightsey (40, Jacksonville) to 20 years in federal prison for possessing a firearm in furtherance of a drug trafficking crime, possessing controlled substances with the intent to distribute them, and possessing a firearm as a convicted felon. A jury found Lightsey guilty on January 23, 2020.
According to testimony presented at trial, on June 24, 2018, officers from the Jacksonville Sheriff’s Office arrested Lightsey for driving without a valid license. A 9mm pistol and a bag of marijuana were observed, in plain view, inside Lightsey’s car. A search of the vehicle revealed additional marijuana, cocaine, crack cocaine, and empty baggies used for packaging narcotics. The pistol was later determined to have been stolen from a home in Jacksonville approximately two weeks earlier. At the time of the incident, Lightsey had multiple prior felony convictions, including for the sale or delivery of cocaine and attempted armed robbery with a weapon.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys David B. Mesrobian and Beatriz Gonzalez.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Antiquities Dealers Arrested for Fraud SchemeRead 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 Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging ERDAL DERE, the owner and operator of the Manhattan-based antiquities gallery Fortuna Fine Arts Ltd. (“Fortuna”), and his longtime business associate and co-conspirator, FAISAL KHAN, with engaging in a years-long scheme to defraud buyers and brokers in the antiquities market by using false provenances to offer and sell antiquities. DERE is also charged with aggravated identity theft for his misappropriation of the identities of deceased collectors who were falsely represented to be the prior owners of the antiquities.
Federal law enforcement agents arrested DERE this morning at his residence in New York, New York. KHAN was also arrested this morning at his residence in New Jersey. Both DERE and KHAN will be presented later today before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss said: “The integrity of the legitimate market in antiquities rests on the accuracy of the provenance provided by antiquities dealers, which prevents the sale of stolen and looted antiquities that lack any legitimate provenance. As alleged, Erdal Dere and Faisal Khan compromised that integrity, and defrauded buyers and brokers of the antiquities they sold, by fabricating the provenance of those antiquities, and concealing their true history. Now, thanks to the FBI’s Art Crime Team, Dere and Khan are in custody and facing prosecution for their alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “Antiquities and art allow us to see a piece of history from a world that existed hundreds and, in some cases, thousands of years ago. As alleged, the men who trafficked in fake documents and used dead people’s names to bolster their lies had no care for the precious items they sold and no regard for the people they defrauded. We are asking anyone who may have dealt with Mr. Dere or Mr. Khan to contact us at [email protected]. You may have been a victim of their alleged scheme.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From approximately 2015 through September 2020, DERE and KHAN engaged in a scheme to defraud buyers and brokers in the antiquities market by providing false information regarding the provenance of antiquities they offered for sale. Specifically, DERE and KHAN falsely claimed that various deceased collectors of antiquities were the prior owners of items being sold and offered for sale, in order to conceal the true provenance of the antiquities and the sources from which Fortuna had acquired them.
DERE communicated the false provenances featuring the names of deceased collectors to buyers and brokers. DERE also fabricated documents purporting to evidence the prior ownership of antiquities by the deceased collectors, and provided them to buyers and brokers, including to an auction house in New York, New York in connection with a December 2015 antiquities auction.
KHAN assisted Fortuna in finding buyers for items from its pre-existing inventory and acquired new items, primarily in Asia, that KHAN worked with Fortuna to sell to collectors in the United States and internationally. With KHAN’s knowledge, DERE provided false provenance information to potential buyers of items that KHAN had personally located and acquired, listing deceased collectors as the long-time owners of items which KHAN and DERE well knew had not been owned by those collectors.
* * *
DERE, 50, of New York, New York, was charged in the Indictment with wire fraud conspiracy, wire fraud, and aggravated identity theft. The wire fraud conspiracy charge carries a maximum prison term of 20 years. The wire fraud charge carries a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
KHAN, 47, of Flanders, New Jersey, was charged in the Indictment with wire fraud conspiracy and wire fraud. The wire fraud conspiracy charge carries a maximum prison term of 20 years. The wire fraud charge carries a maximum prison term of 20 years.
The statutory maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI/NYPD Joint Major Theft Task Force/Art Crime Team. In addition, Ms. Strauss thanked authorities in Germany, Italy, the United Kingdom, Spain, and France, as well as the United States Justice Department’s Office of International Affairs of the Department’s Criminal Division, the FBI’s Legal Attaché in Frankfurt, Germany, and the New York City Police Department for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Jessica Greenwood is in charge of the prosecution.
To report information related to this case, please contact the FBI’s Art Crime Team at [email protected].
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Allentown Man and Former Fugitive Sentenced to Three Years for Stealing Stepfather’s Identity, Retirement SavingsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Erick Wandique, 26, of Allentown, Pennsylvania was sentenced to three years in prison, three years of supervised release, and was ordered to pay restitution in the amount of $87,657 and forfeiture in the same amount by United States District Court Judge Edward G. Smith for his scheme to impersonate, and steal from, his stepfather.
In March 2020, the defendant pleaded guilty to eight counts of wire fraud and one count of aggravated identity theft, after being charged with a nine-count Indictment in August 2016. The charges arose from Wandique’s electronic communications with Fidelity Investments in which he pretended to be his stepfather, Luis Flores, in order to authorize fraudulent bank transactions and debit purchases, resulting in the depletion of nearly all of Flores’ Fidelity retirement account.
From December 2014 through March 2015, Wandique went on a spending spree utilizing his stepfather’s retirement savings: withdrawing cash, making wire transfers of funds, arranging payments through the BillPay service for the account, making debit purchases at retail stores, and even taking his friends on a trip to California. After a family member confronted him about his inexplicable newfound income and spending, the defendant fled the United States by flying to Honduras, which does not have an extradition agreement with the United States. On August 25, 2019, the defendant was arrested after he attempted to reenter the United States on a flight to New Orleans, LA.
“It’s hard to imagine victimizing your own family, but Wandique took advantage of an opportunity to do just that,” said First Assistant U.S. Attorney Williams. “Here, the defendant drained his stepfather’s lifetime of savings – money earned to support himself in retirement – and when his family and the law caught on to him, Wandique fled the country. If you are charged in the Eastern District of Pennsylvania with a federal offense, we will find you and hold you accountable for your actions.”
“Mr. Wandique’s sentencing underscores the importance of vigilance against financial fraud schemes,” said Brian A. Michael, Special Agent in Charge of Homeland Security Investigations Philadelphia. “Even after Mr. Wandique fled from prosecution, Homeland Security Investigations worked closely with Interpol and international partners to ensure he was apprehended and brought to justice. Mr. Wandique will now be held accountable for swindling his family member.”
“Today’s sentencing is the culmination of years of collaboration between the Pennsylvania State Police and its federal law enforcement partners to seek justice for the victim in this case,” said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “Despite occurring behind the anonymity of a computer, wire fraud and identity theft are serious crimes that can quickly erase a lifetime of savings from unsuspecting victims and devastated families.”
The case was investigated by the Department of Homeland Security Investigations, Customs and Border Protection, Interpol, and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Christopher Diviny.
Alleged Southern California Narcotics Traffickers Among Those Charged in International Crackdown Targeting Dark-net DealersRead the Press Release
LOS ANGELES – As part of an international effort to disrupt narcotics trafficking on the dark-net, members of the Los Angeles Joint Criminal Opioid and Dark-net Enforcement (JCODE) Task Force today announced cases brought as a result of Operation DisrupTor. The cases charge members of a Southern California drug trafficking organization who allegedly distributed methamphetamine and other illicit narcotics to thousands of customers in at least 35 states and numerous countries around the world.
An alleged methamphetamine trafficker who was a key supplier to the Los Angeles-based organization is being sought after being charged last week with possession with the intent to distribute methamphetamine. Earlier this year, five other members of the narcotics ring were arrested on federal charges, and authorities made substantial seizures of narcotics and cryptocurrency.
Operation DisrupTor builds on the success of prior actions targeting dark-net vendors, including the takedown of Wall Street Market, which was one of the world’s largest dark web marketplaces. Following the Wall Street Market takedown in May 2019 and the filing of federal charges in Los Angeles against the administrators, law enforcement in the United States and Europe obtained intelligence that allowed them to identify dark-net drug traffickers.
“These online black market websites use a variety of technologies, including the Tor network and other encryption technologies, to ensure that communications and transactions are shielded from interception and monitoring,” according to court documents filed last week in Los Angeles. “A famous dark web marketplace, Wall Street Market, operated similar to legitimate commercial websites such as Amazon and eBay, but offered illicit goods and services” in exchange for virtual currencies, such as Bitcoin.
“Through the outstanding efforts of the JCODE Task Force, we have been able to unmask those hiding on the dark-net, bringing to justice a wide array of criminals, including those operating online marketplaces, laundering cryptocurrency, and spreading drugs around the world,” said United States Attorney Nick Hanna. “My prosecutors and their JCODE partners will continue to rein in illegal dark web activities by disrupting other traffickers and those who help them access their illicit cryptocurrency.”
“American citizens endure the unfortunate consequences of dark-web marketplaces where criminals get rich by exploiting those suffering through an opioid epidemic while evading law enforcement scrutiny,” said John F. Bennett, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case and others should send a message that law enforcement has infiltrated the perceived anonymity of the dark-web and possesses the tools to identify and hold accountable individuals and groups responsible for illegal trafficking and the devastating toll it takes on humanity in the United States and abroad.”
“Together with our partners, HSI remains at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said David A. Prince, Special Agent in Charge for Homeland Security Investigations (HSI) in Los Angeles. “We have proven, once again, that these illicit activities on the dark-net will not be tolerated in the United States. While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, the fact is that no matter how or where these crimes are committed, nothing is beyond the reach of the law.”
“Members of the Stealthgod crew have discovered that not even the dark-net could shield their criminal activities from the watchful eyes of Postal Inspectors and our law enforcement partners,” said Inspector in Charge Patricia Armstrong of the U.S. Postal Inspection Service, Los Angeles Division. “The alleged drug traffickers miscalculated when they chose to use the U.S. Mail to further their crimes, and they will face a very severe price.”
During Operation DisrupTor, the Los Angeles JCODE Task Force successfully dismantled a drug trafficking organization that used online monikers such as “Stealthgod” to sell methamphetamine and MDMA on multiple dark-net marketplaces, including Wall Street Market. Investigators have linked the crew to more than 18,000 illicit drug sales to customers around the world. During an operation earlier this year, members of JCODE executed search warrants that led to the seizure of more than 60 parcels containing narcotics that were ready to be shipped to more than 35 states around the nation.
Andres Bermudez, 37, of Palmdale, who allegedly was a key supplier of methamphetamine to the “Stealthgod” crew, was named in a criminal complaint filed on September 18. An affidavit in this case outlines how Bermudez allegedly supplied methamphetamine to the “Stealthgod” drug trafficking organization and details negotiations involving transactions of 30 pounds and 40 pounds of methamphetamine. Bermudez is currently a fugitive being sought by federal authorities.
During law enforcement actions in the City of Los Angeles in February, members of JCODE arrested five defendants allegedly at the center of the “Stealthgod” organization and seized approximately 120 pounds of methamphetamine, seven kilograms of MDMA (“ecstasy”), and five firearms (photo of seizure). The five defendants arrested on federal charges are:
- Teresa McGrath, 34, of Sunland-Tujunga, who allegedly delivered dozens of narcotics-laden packages to a post office in Sunland;
- Rane Melkom, 35, of Sunland-Tujunga, who shared a residence with McGrath where authorities seized more than 50 pounds of methamphetamine, nearly 15 pounds of MDMA, approximately 30,000 Adderall pills, cash, and three loaded handguns;
- Mark Chavez, 41, of downtown Los Angeles, whose bedroom yielded nearly 40 pounds of methamphetamine and two handguns during a search in February;
- Matthew Ick, 51, of downtown Los Angeles, who is linked in court papers to a narcotics shipment to the organization; and
- Thomas Olayvar, 43, of downtown Los Angeles, who allegedly was involved in the shipment of narcotics through the United States Postal Service.
McGrath has pleaded guilty to conspiracy to distribute methamphetamine and MDMA, possession of a firearm in furtherance of drug trafficking, and cryptocurrency money laundering, admitting that over the course of about six months she received approximately $161,916 in Bitcoin and helped disburse this money to her co-conspirators.
Chavez has pleaded guilty to conspiring to distribute methamphetamine and MDMA, as well as possessing a firearm in furtherance of drug trafficking.
McGrath and Chavez are scheduled to be sentenced next year, when each will face a mandatory minimum sentence of 15 years in federal prison.
Melkom, Ick, and Olayvar face various narcotics charges alleged in criminal informations. These defendants are currently scheduled to go on trial next year.
The cases stemming from the investigation into the “Stealthgod” organization are being prosecuted by Assistant United States Attorneys Puneet Kakkar and Keith Ellison of the International Narcotics, Money Laundering, and Racketeering Section.
As the investigation into the “Stealthgod” crew continued, the Los Angeles JCODE Task Force made additional seizures, including $1.6 million in cryptocurrency, three firearms, 11 pounds of methamphetamine and 14 pounds of pills pressed with methamphetamine.
In addition to the Operation DistrupTor cases related to “Stealthgod,” federal prosecutors in Los Angeles have filed cases against other alleged dark-net narcotics traffickers and those who help them convert bitcoin into fiat currency. For example:
· Kais Mohammad, 36, of Yorba Linda, is scheduled to plead guilty on Thursday to federal charges stemming from the operation of 17 Bitcoin kiosks across Southern California. In his plea agreement, Mohammad admitted that he knew that at least one of his clients was engaged in illicit activity on the dark web. This matter is being prosecuted by Assistant United States Attorney Puneet Kakkar.
· Earlier this year, three people linked to the online moniker “Aeirla” were sentenced to federal prison for conspiring to distribute methamphetamine and cocaine to customers who negotiated transactions on the dark-web. Those defendants are:
• Anh Pham, 49, of Hawaiian Gardens, was sentenced to 80 months in federal prison;
• Joseph Michael Gifford, 43, of La Crescenta, was sentenced to three years’ imprisonment; and
• Carlos Miguel Gallardo, 60, Hawaiian Gardens, was sentenced to serve 18 months in federal prison.
Pham sold pound quantities of methamphetamine on the dark-net, while Gifford and Gallardo packaged them – in toys, a beach ball, and boxes of Christmas cards and chocolates – and shipped them to customers nationwide. The “Aeirla” case was prosecuted by Assistant United States Attorney Christopher Kendall of the International Narcotics, Money Laundering, and Racketeering Section.
· Five defendants are scheduled to be tried in October 2021 in United States District Court in Los Angeles on various narcotics trafficking charges that allege they used the monikers “Drugpharmacist” and “RickandMortyShop” to sell cocaine, heroin, methamphetamine and crack cocaine on Wall Street Market and another dark-net marketplace called Dream. Members of the conspiracy allegedly shipped narcotics in small vials concealed inside stuffed animals. The defendants scheduled to go on trial are: Jerrell Eugene Anderson, 30, of Inglewood; Christopher Canion Van Holton, 33, of Valencia; Adan Sepulveda, 28, of Lancaster; Kenneth Lashawn Hadley, 33, of Lancaster; and Jackie Walter Burns, 22, of Lancaster. Anderson and Sepulveda face a charge of distribution of heroin resulting in death in relation to a shipment of heroin to a customer in Knoxville, Tennessee, who suffered a fatal overdose. This case is being prosecuted by Assistant United States Attorneys Khaldoun Shobaki and Lauren Restrepo of the Cyber and Intellectual Property Crimes Section.
· Kunal Kalra, 26, of Westwood, was sentenced in March to 18 months in federal prison after pleading guilty to federal narcotics and anti-money laundering charges related to his unlicensed money transmitting business that he used to exchange virtual currency for cash for dark-net vendors. This matter, which was prosecuted by Assistant United States Attorney Puneet Kakkar, was the first federal case in the nation charging an unlicensed money remitting business that used a Bitcoin kiosk.
· A father and his son who distributed methamphetamine on the dark-net using monikers such “Quartersandup,” “Tenderwoodcock,” “Colsandersdream,” and “colonelsanders” were sentenced to federal prison last year. William Glarner III, 65, of Huntington Beach, was convicted at trial and sentenced to 15 years. His son, William Glarner IV, 35, of Irvine, pleaded guilty and was sentenced to 10 years. This case was prosecuted by Assistant United States Attorneys Puneet Kakkar and Kathy Yu.
· Tyler Reeves, a 30-year-old Irvine man who sold narcotics on Wall Street Market under the moniker “Platinum45,” was sentenced last year to 10 years in federal prison. This matter was prosecuted by Assistant United States Attorney Puneet Kakkar.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The “Stealthgod” cases are the result of an investigation by the Los Angeles JCODE Task Force, which is comprised of several federal agencies, including the FBI, Homeland Security Investigations and the United States Postal Inspection Service.
The Drug Enforcement Administration provided substantial support during the “Stealthgod” investigation. The Los Angeles Police Department and Los Angeles Sheriff’s Department also participated in the “Stealthgod” investigation. The United States Attorney’s Office for the Northern District of California also provided assistance.
The dark-net investigations discussed in this announcement were conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
Acting Manhattan U.S. Attorney Announces $11.5 Million Settlement with Biotech Testing Company for Fraudulent Billing and Kickback PracticesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS OIG”), and Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), announced today an $11.5 million settlement of a False Claims Act case against BIO-REFERENCE LABORATORIES, INC. (“BRL”), a New Jersey-based biotechnology company that provides molecular and diagnostic tests. The settlement resolves claims that from 2009 to 2012, BRL fraudulently billed federal healthcare programs for testing conducted on hospital inpatients that should have been billed to the hospitals instead, and that BRL knowingly donated the cost of electronic medical records software to physicians’ offices throughout the country based solely on the volume of business generated by those practices, in violation of the False Claims Act and the federal Anti-Kickback Statute. Under the settlement approved by U.S. District Judge George B. Daniels, BRL will pay $11,500,960.00 to the United States to resolve the fraudulent billing and kickback claims. BRL also made extensive admissions regarding the company’s conduct.
Acting U.S. Attorney Audrey Strauss said: “Bio-Reference Labs received millions of dollars from federal healthcare programs through its fraudulent billing and kickback schemes. The company knowingly and recklessly billed the government for tests it should have billed to the hospitals instead, and provided kickbacks to doctors in order to induce them to order more tests. Our Office will continue to hold healthcare providers accountable when they engage in fraud and other illegal conduct.”
HHS Special Agent in Charge Scott Lampert said: “The irresponsible behavior by Bio-Reference Labs compromised the integrity of the Medicare program, and wasted millions of taxpayer dollars. Working with our law enforcement partners, HHS-OIG will continue to ensure that healthcare providers that do business with federally funded health care programs do so in an honest fashion.”
DCIS Special Agent in Charge Leigh-Alistair Barzey said: “Fraudulent billing and kickback schemes threaten the integrity of TRICARE, the Defense Department's healthcare system for military members and their families. Today’s settlement is the result of a joint effort and it demonstrates the DCIS’s ongoing commitment to work with the USAO-SDNY and HHS-OIG to investigate and prosecute companies that seek to fraudulently profit at the expense of federal health care plans.”
As alleged in the Complaint filed in Manhattan federal court:
Fraudulent Billing Practices & Kickback Scheme
From 2009 through 2012, BRL knowingly and willfully billed Medicare and Tricare for certain testing performed for hospital inpatients that should have been paid by the hospitals themselves. As a result, BRL received reimbursement from Medicare and Tricare for tests that the federally funded programs had already paid for, because hospitals receive payments for all items and services provided to the patient under the inpatient prospective payment system (“IPPS”), unless an exemption applies, which is inapplicable here.
In addition, in violation of the Anti-Kickback Statute, BRL knowingly and willfully offered and paid remuneration, in the form of a percentage of the cost of electronic medical records software, to physicians based on the volume of business generated by those physicians in order to induce them to use BRL’s services. The Anti-Kickback Statute prohibits medical service providers, such as testing facilities, from paying any remuneration to providers in order to induce them to refer medical services.
As part of the settlement approved today, BRL admitted, acknowledged, and accepted responsibility for the following conduct:
Inpatient Testing Claims
- From 2009 through 2012, BRL billed Medicare and Tricare for certain testing (i) listed on the Clinical Lab Fee Schedule (“CLFS”) and (ii) performed on beneficiaries who were hospital inpatients at the time of service.
- Specifically, from 2009-2012, approximately 2.51% of all of BRL’s Medicare and Tricare billing originating from hospitals consisted of testing performed on hospital inpatients and listed on the CLFS.
- For example, from 2009-2012, BRL did not bill Triad of Alabama/Flowers Hospital in Dothan, Alabama (“Triad”), for any inpatient testing. As a result, from 2009-2012, BRL improperly billed Medicare and Tricare for approximately 2.51% of all testing BRL performed for Triad and its associated pathology practices on behalf of Medicare or Tricare beneficiaries.
- In 2009, BRL’s requisition form – the form BRL provided to hospitals to order tests for their patients – did not contain any place for a hospital to indicate whether the patient was an inpatient or an outpatient. But as of at least January 2010, BRL management had a clear understanding of the necessity to bill hospitals – and not Medicare or Tricare – for testing performed on hospital inpatients and listed on the CLFS. Indeed, on January 27, 2010, the Director of Genpath Accounts Receivable wrote to management, “I’m afraid that we can end up billing Medicare for hospital patients.” Nevertheless, the requisition forms remained the same, and through at least 2012, BRL billed Medicare and Tricare for hospital inpatient testing listed on the CLFS.
Software Cost Donations- In addition, from 2009 through 2012, BRL provided a percentage of the cost of electronic medical records transition software (“EMR Software”) to physicians’ offices based on the volume of business generated by those offices.
- Specifically, from 2009 through 2012, BRL engaged in a practice – at the direction of its management – entitled the “3 to 1 calculation,” meaning that BRL conditioned the provision of payment for EMR Software to physicians’ offices on whether a physician’s office would generate revenue equal to three times the value of the EMR Software BRL provided.
- For example, on January 24, 2009, a BRL employee, in an email to BRL management, applied the 3 to 1 calculation to a particular physician’s office and suggested that BRL provide the payment for EMR Software, but noted, “You find the legal way to say that. I don’t feel they will make us put it in writing.”
- Similarly, on January 7, 2011, BRL management evaluated a BRL salesperson’s request for payment for EMR Software to a particular physician’s office, and directed that salesperson to “[b]uild volume to meet 3x rule.”
- During this timeframe, BRL provided payment for EMR Software based on this formula to 69 separate physicians’ offices.
* * *
BRL agreed to pay a total of $11,500,960.00 to resolve these claims: $1,396,386 to resolve the Inpatient Testing Claims and $10,104,574 to resolve the Software Cost Donation claims. OPKO Health Inc. (“OPKO”), which merged with BRL in 2015, will serve as guarantor of BRL’s obligation to pay the settlement amount.
In connection with the filing of the lawsuit and settlement, the Government joined two private whistleblower lawsuits that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked HHS-OIG and DCIS for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Michael Byars and Ellen Blain are in charge of the case.
21 September 2020
Wolf Point man admits distributing meth on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Wolf Point man accused of selling meth in a casino on the Fort Peck Indian Reservation admitted methamphetamine trafficking charges today, U.S.
Attorney Kurt Alme said.Chance Justin Redstone, also known as CJ Redstone, 35, pleaded guilty to distribution of meth. Redstone faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for Jan. 14, 2021. Redstone was released.
The prosecution said in court documents that during investigations into drug trafficking on the Fort Peck Indian Reservation in 2018 and 2019, Redstone was identified by cooperating witnesses as a meth dealer. In April 2018, law enforcement arranged for a confidential source to buy meth from Redstone. Redstone and the confidential source met inside the Silver Wolf casino in Wolf Point where the confidential source bought meth from Redstone and then left the business. The meth purchased from Redstone totaled about 13 grams.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, and the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Wisconsin Man Sentenced for Schemes that Defrauded Illinois Company of More Than $9 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN C. GOLD, 47, of Pleasant Prairie, Wisconsin, was sentenced today by U.S. District Judge Janet C. Hall to 36 months of imprisonment, followed by three years of supervised release, for participating in two separate schemes that defrauded his former employer of more than $9 million.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Gold and John T. Finkle III were employed by JST, a supplier of electronic components based in Waukegan, Illinois. Finkle, of East Haven, was primarily employed in sales for JST and Gold operated the accounting and billing systems for the company. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli, and Gold, to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account, and provided a portion of the funds to Gold, who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme.
During the investigation of the scheme involving Finkle and Pedroli, investigators uncovered an additional $6,060,151 that Gold had stolen from JST by accessing and manipulating JSTs accounting system. Gold used the stolen funds to pay for personal expenses that included vacations, online gambling, home improvement costs, furniture, clothes, restaurants, college tuition, and car payments. He also unlawfully transferred hundreds of thousands of dollars in JST funds to his wife’s company.
Judge Hall ordered Gold to pay restitution of $9,419,209.69
On February 21, 2020, Gold pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
Gold, who is released on a $500,000 bond, is required to report to prison on December 2, 2020.
Finkle and Pedroli previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. On November 22, 2019, Finkle was sentenced to 24 months of imprisonment. On December 12, 2019, Pedroli was sentenced to three years of probation.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ray Miller of the District of Connecticut, and Assistant U.S. Attorney Jacqueline Stern of the Northern District of Illinois.
Wichita Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
WICHTA, KAN. – A Wichita man pleaded guilty today to drug and gun charges, U.S. Attorney Stephen McAllister said.
Luis M. Hernandez, 40, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of firearms by an alien unlawfully in the United States.
According to court documents, investigators found 20 pounds of methamphetamine and 11 firearms when they served a search warrant at Hernandez’s residence in the 300 block of North Seneca.
Sentencing is set for Dec. 16. He could face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy count and up to 10 years and a fine up to $250,000 on the firearm charge. McAllister commended the Wichita Police Department, the FBI Safe Streets Task Force and Assistant U.S. Attorney Debra Barnett for their work on the case.
Weleetka Man Pleads Guilty to Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kyle Elliott Leitka, age 31, of Weleetka, Oklahoma entered a guilty plea to Abusive Sexual Contact In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2244(b) and 2246(3), punishable by not more than 2 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 22, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, knowingly engaged and attempted to engage in abusive sexual contact with the victim.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States at the plea hearing.
UK National Sentenced to Prison for Role in “the Dark Overlord” Hacking GroupRead the Press Release
A United Kingdom national pleaded guilty today to conspiring to commit aggravated identity theft and computer fraud, and was sentenced to five years in federal prison.
U.S. District Judge Ronnie White for the Eastern District of Missouri sentenced Nathan Wyatt, 39, who participated in a computer hacking collective known as “The Dark Overlord,” which targeted victims in the St. Louis area beginning in 2016. Wyatt was extradited from the United Kingdom to the Eastern District of Missouri in December 2019. Judge White also ordered Wyatt to pay $1,467,048 in restitution.
“Nathan Wyatt used his technical skills to prey on Americans’ private data and exploited the sensitive nature of their medical and financial records for his own personal gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s guilty plea and sentence demonstrate the department’s commitment to ensuring that hackers who seek to profit by illegally invading the privacy of Americans will be found and held accountable, no matter where they may be located.”
“The Dark Overlord has victimized innumerable employers in the United States, many of them repeatedly, said U.S Attorney Jeff Jensen of the Eastern District of Missouri. “I am grateful to the victims who came forward despite ransom threats and to the prosecutors and agents who were the first to catch and punish a member of The Dark Overlord in the United States.”
“Cyber hackers mistakenly believe they can hide behind a keyboard,” said Special Agent in Charge Richard Quinn of the FBI’s St. Louis Field Office. “In this case, the FBI demonstrated once again that it will impose consequences on cyber criminals no matter how long it takes or where they are located.”
Wyatt admitted that, beginning in 2016, he was a member of The Dark Overlord, a hacking group that was responsible for remotely accessing the computer networks of multiple U.S. companies without authorization. Victims in the Eastern District of Missouri included healthcare providers, accounting firms, and others. Wyatt admitted that The Dark Overlord co-conspirators acted by obtaining sensitive data from victim companies, including patient medical records and personal identifying information, and then threatening to release the companies’ stolen data unless the companies paid a ransom of between $75,000 and $350,000 in bitcoin.
Wyatt further admitted that he participated in the conspiracy by creating, validating, and maintaining communication, payment, and virtual private network accounts that were used in the course of the scheme to, among other things, send threatening and extortionate messages to victims within the Eastern District of Missouri.
The investigation was conducted by the FBI’s St. Louis Field Office. Support was also provided by the FBI’s Atlanta Field Office. The Justice Department’s Office of International Affairs coordinated the extradition of Wyatt. The department thanks law enforcement authorities in the United Kingdom, including the Metropolitan Police Service, for their substantial assistance in the investigation.
Senior Counsel Laura-Kate Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
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. Taxpayer in Panama Papers Investigation Sentenced to PrisonRead the Press Release
A former U.S. resident and taxpayer was sentenced in the Southern District of New York to four years in prison for wire fraud, tax fraud, money laundering, false statements, and other charges.
Harald Joachim von der Goltz, aka H.J von der Goltz, Johan von der Goltz, Jochen von der Goltz, Tica, and Tika, 83, of Needham, Massachusetts, and Key Biscayne, Florida, pleaded guilty to one count of conspiracy to commit tax evasion; one count of wire fraud; one count of money laundering conspiracy; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FinCEN Reports 114; and two counts of false statements before U.S. District Judge Richard M. Berman. In addition to the prison term, Judge Berman ordered von der Goltz to serve three years of supervised release, to pay forfeiture in the amount of $5,373,609 and restitution in the amount of $3,448,848, and to pay a fine in the amount of $30,000.
Von der Goltz was charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, aka Dick Gaffey, in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panamanian-based global law firm, and its related entities. Von der Goltz previously pleaded guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
“Harald Joachim von der Goltz sought to conceal his considerable wealth through a sham foreign foundation and various shell companies. But his decades-long scheme to evade his tax obligations and defraud the U.S. government came to an end today thanks to the tireless efforts of U.S. law enforcement,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “No matter how complicated the scheme, the U.S. government will bring to justice those who attempt to evade their tax obligations under the law. In particular, I would like to recognize the outstanding work of the Internal Revenue Service in this case.”
“Harald Joachim von der Goltz, a one-time U.S. resident, previously admitted to an elaborate scheme to evade millions in taxes owed to the IRS,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Von der Goltz was abetted by the specialized criminal services of the law firm Mossack Fonseca to conceal income and assets in shell companies and off-shore bank accounts. Now von der Goltz has been sentenced to four years in federal prison for his conduct.”
According to the allegations contained in the indictments, other filings in this case, and statements during court proceedings, including von der Goltz’s guilty plea and sentencing hearings:
Since at least 2000 through 2017, von der Goltz conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful, and dishonest means. During all relevant times, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, von der Goltz evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars.
Von der Goltz was assisted in this scheme through the use of Mossack Fonseca, including Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, von der Goltz engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by von der Goltz of accounts established at overseas banks, as well as the income generated in those accounts. Von der Goltz, Gaffey, and Owens also falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer.
Gaffey previously pled guilty and is scheduled to be sentenced by Judge Berman on Sept. 24, 2020, at 10:30 a.m. EDT. Owens and Brauer remain at large.
The Justice Department praised the outstanding investigative work of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the FBI for their significant assistance in the investigation. The Justice Department’s Office of International Affairs and law enforcement partners in France, the United Kingdom, and Germany provided significant assistance.
This case is being prosecuted by Trial Attorney Michael Parker of the Criminal Division’s Money Laundering and Asset Recovery Section of the Justice Department and Assistant U.S. Attorneys Eun Young Choi and Thane Rehn of the Manhattan U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, with substantial support from previous co-counsel, Trial Attorney Parker Tobin of the Tax Division.
The charges as to Owens and Brauer are merely accusations, and they are presumed innocent unless and until proven guilty.
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. Taxpayer in Panama Papers Investigation Sentenced to 4 Years in PrisonRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Brian C. Rabbitt, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that HARALD JOACHIM VON DER GOLTZ, a/k/a “H.J. von der Goltz,” a/k/a “Johan von der Goltz,” a/k/a “Jochen von der Goltz,” a/k/a “Tica,” a/k/a “Tika,” was sentenced in Manhattan federal court to 48 months in prison for wire fraud, tax fraud, money laundering, false statements, and other charges. VON DER GOLTZ, a former U.S. resident and taxpayer, was charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, a/k/a “Dick Gaffey,” in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities. VON DER GOLTZ previously pleaded guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Audrey Strauss said: “Harald Joachim von der Goltz, a one-time U.S. resident, previously admitted to an elaborate scheme to evade millions in taxes owed to the IRS. Von der Goltz was abetted by the specialized criminal services of the law firm Mossack Fonseca to conceal income and assets in shell companies and off-shore bank accounts. Now von der Goltz has been sentenced to four years in federal prison for his conduct.”
Acting Assistant Attorney General Brian C. Rabbitt said: “Harald Joachim von der Goltz sought to conceal his considerable wealth through a sham foreign foundation and various shell companies. But his decades-long scheme to evade his tax obligations and defraud the U.S. government came to an end today thanks to the tireless efforts of U.S. law enforcement. No matter how complicated the scheme, the U.S. government will bring to justice those who attempt to evade their tax obligations under the law. In particular, I would like to recognize the outstanding work of the Internal Revenue Service in this case.”
According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including VON DER GOLTZ’s guilty plea and sentencing hearings:
Since at least 2000 through 2017, VON DER GOLTZ conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, VON DER GOLTZ was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. VON DER GOLTZ was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Richard Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of VON DER GOLTZ’s efforts to conceal his assets and income from the IRS, VON DER GOLTZ engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by VON DER GOLTZ of accounts established at overseas banks, as well as the income generated in those accounts. VON DER GOLTZ, Gaffey, and Owens also falsely claimed that VON DER GOLTZ’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike VON DER GOLTZ – was not a U.S. taxpayer.
* * *
VON DER GOLTZ, 83, of Needham, Massachusetts, and Key Biscayne, Florida, pled guilty to one count of conspiracy to commit tax evasion; one count of wire fraud; one count of money laundering conspiracy; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114; and two counts of false statements. In addition to the prison term, Judge Berman ordered VON DER GOLTZ to serve three years of supervised release, to pay forfeiture in the amount of $5,373,609 and restitution in the amount of $3,448,848, and to pay a fine in the amount of $30,000.
Gaffey previously pled guilty and is scheduled to be sentenced by Judge Berman on September 24, 2020, at 10:30 a.m. Owens and Brauer remain at large.
* * *
Ms. Strauss praised the outstanding investigative work of IRS, Criminal Investigation, and Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Ms. Strauss also thanked the U.S. Justice Department’s Office of International Affairs of the Department’s Criminal Division and law enforcement partners in France, the United Kingdom, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
The charges as to Owens and Brauer are merely accusations, and they are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens and Brauer, and every fact described should be treated as an allegation.
Twelve charged in multi-year mortgage fraud schemeRead the Press Release
ATLANTA – Twelve defendants have been charged in a mortgage fraud scheme allegedly spanning more than four years and resulting in the approval of more than 100 mortgages based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA) resulting in claims being paid for mortgages that have gone through loan modification.
“These defendants allegedly used their knowledge of the real estate lending process to manipulate the system for their own benefit,” said U.S. Attorney Byung J. “BJay” Pak. “Mortgage fraudsters threaten the soundness of the real estate market in our community. We will investigate and charge anyone who takes advantage of our mortgage lending system for their own personal gain.”
“These charges represent the government's commitment toward combating such alleged criminal activity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will steadfastly protect American citizens and the real estate market from predators who drag down our economy by deceit to line their own pockets.”
"What we have here is a group of mortgage industry professionals that have allegedly perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of a federal housing program,” said Wyatt Achord, Special Agent in Charge, Office of the Inspector General, U.S. Department of Housing and Urban Development. “The efforts that brought forward these charges demonstrate that when law enforcement is made aware of such schemes, we will commit the necessary resources to make sure that fraudsters are brought to justice.”
“As charged, the defendants engaged in a multiyear scheme to defraud Fannie Mae and Freddie Mac. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) will investigate and hold accountable those who seek to victimize these Government Sponsored Entities supervised and regulated by FHFA”, said FHFA-OIG Special Agent in-Charge Edwin Bonano.
According to U.S. Attorney Pak, the indictment, and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Listing agents Eric Hill and Robert Kelske represented a major nationwide homebuilder, and helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud. The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.
Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate the their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent. The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer. Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment. Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers. Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.
In another aspect of the scheme, real estate agents Anthony Richard and Cephus Chapman falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales. In reality, these real estate agents had never even met the homebuyers they claimed to represent. To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing, and sent wire instructions for the receipt of their commissions. When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.
The following defendants have been charged as part of these conspiracies:
• Eric Hill, 50, of Tyrone, Georgia (charged by Information)
• Robert Kelske, 52, of Smyrna, Georgia
• Fawziyyah Connor, 41, of Tyrone, Georgia
• Stephanie Hogan, 57, of Norcross, Georgia
• Jerod Little, 42, of McDonough, Georgia
• Renee Little, 33, of McDonough, Georgia
• Maurice Lawson, 36, of Powder Springs, Georgia
• Todd Taylor, 54, of Fairburn, Georgia
• Paige McDaniel, 49, of Stockbridge, Georgia
• Donald Fontenot, 52, of Locust Grove, Georgia (charged by Information)
• Anthony Richard, 44, of Locust Grove, Georgia
• Cephus Chapman, 49, of Warner Robins, Georgia
Members of the public are reminded that the indictment and informations only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Department of Housing and Urban Development Office of Inspector General, and Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Alison Prout is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Traffic stop leads to firearm charges in Operation Legend caseRead the Press Release
ALBUQUERQUE, N.M. – Jose Gamboa, 38, of Albuquerque made an appearance Sept. 18 in federal court, charged with being a felon in possession of a firearm and ammunition. A detention hearing is scheduled for Sept. 22.
According to a criminal complaint, on Aug. 5, Gamboa allegedly possessed firearm and ammunition while driving in Albuquerque. Gamboa allegedly purchased the gun illegally “on the streets” for $450 knowing he could not lawfully possess it because of prior convictions. Gamboa was convicted in 2008 for importation of marijuana.
If convicted, Gamboa faces up to 10 years in prison. A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The FBI Violent Crime Task Force and the Bernalillo County Sheriff’s Office 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 David M. Walsh is prosecuting the case.
Topeka Woman Sentenced for Identity TheftRead the Press Release
TOPEKA, KAN. – A Topeka woman was sentenced to 38 months in federal prison today for identity theft, U.S. Attorney Stephen McAllister said. In addition, she was ordered to pay approximately $47,668 in in restitution.
Danielle Hutchens, 47, Topeka, Kan., pleaded guilty to one count of aggravated identity theft and one count of conspiracy to commit bank and wire fraud. In her plea, she admitted she and a co-defendant stole mail and used the information to create counterfeit checks and counterfeit identity cards. They passed counterfeit checks at retailers including Walmart stores in Overland Park, Kan., and Olathe, Kan.
McAllister commended the U.S. Postal Service, the Overland Park Police Department and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Texas Man Sentenced for Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 18, 2020, Justin Wade Lynch, age 44, originally of Texas, was sentenced to 84 months’ imprisonment by United States District Court Judge Malachy E. Mannion for armed bank robbery.
According to United States Attorney David J. Freed, Lynch admitted that, on October 30, 2012, he robbed Penn Security Bank & Trust in Peckville, Lackawanna County, Pennsylvania. Lynch brandished a firearm during the robbery, and stole $12,470.
Lynch has been incarcerated since 2013 in Texas on an unrelated armed robbery conviction. The 84 month federal sentence will run concurrent with the remainder of the Texas sentence. Lynch was ordered to serve three years of supervised release after his prison term, and to pay full restitution.
The case was investigated by the Blakely Police Department, the Pennsylvania State Police, and the U.S. Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
# # #
Supervisor of Drug Testing Facility Who Took Bribes to Falsify over 100 Drug Tests Sentenced to over Four Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. — Billy Joe West, 57, of Las Vegas, was sentenced today to four years and nine months in federal prison for soliciting and accepting bribes from convicted felons on federal supervised release in exchange for concealing their positive and missed drug tests, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“In addition to violating federal law, the defendant’s breach of the public’s trust subverted the recovery and rehabilitation of many individuals undergoing court-ordered substance abuse treatment,” said U.S. Attorney Trutanich. “This reinforces why employees of federal contractors must put the public interest over their self interests.”
West pleaded guilty on June 1, 2020, to one count of prevention of communication of supervised release and probation violation. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced West to three years of supervised release.
According to court documents and West’s admissions, his scheme caused over 100 false records to be made and reported to the U.S. Probation Office. West was a supervisor at WestCare Nevada, Inc., a federally contracted drug testing facility that conducted, among other services, court-ordered urinalysis drug testing of supervisees who are on federal probation and supervised release. West’s responsibilities included administering urinalysis drug testing.
Between June 21, 2018, and March 19, 2020, West misused his position as a supervisor and misled U.S. Probation Officers through a scheme to solicit and accept bribes from supervisees, in exchange for reporting false negative drug tests to the U.S. Probation Office. As a result of those false negative reports, probation officers were deceived into believing that certain supervisees were complying with court-ordered terms of their supervised release. But the supervisees had in fact violated terms of their supervised release by either missing mandatory drug tests or testing positive for controlled substances. Following West’s arrest in March 2020, the number of “no-shows” and positive drug test results that WestCare reported to the U.S. Probation Office increased.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
###
Stilwell Man Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Billy Ray Flynn, age 65, of Stilwell, Oklahoma entered a guilty plea to Aggravated Sexual Abuse In Indian Country, in violation of Title 18, United States Code, Sections 1153, 2241(a)(1) and 2246(2)(A), punishable by not more than life imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly use force against J.F. and cause his penis to penetrate the vulva of J.F., thereby causing J.F. to engage in a sexual act against her will.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States.
South Bend, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND –Jeffrey Burnside, 32, of South Bend, Indiana, was sentenced to 60 months in prison by United States District Court Judge Damon R. Leichty upon his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
According to documents in this case, during the night of March 28-29, 2020, police evicted several individuals, including Burnside, from a hotel in Mishawaka. During the eviction process, police found methamphetamine as well as two handguns. Later that night, Burnside tried to book another hotel room, hid from police, and then ran from police. Officers caught Burnside and checked his hiding place, where they found a loaded handgun and half an ounce of methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
###
South Bend, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND –Bradley O’Donnell, 28, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
O’Donnell was sentenced to 60 months in prison followed by 3 years of supervised release.
According to documents in this case, on the night of March 28 into the morning of March 29, 2020, Mr. O’Donnell was distributing methamphetamine and had a loaded handgun with him while doing so. Police later found Mr. O’Donnell with 120 grams of methamphetamine and the handgun. Mr. O’Donnell has previously been convicted of three felony offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
###
Slidell Couple Indicted for Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on September 19, 2020, WILLIAM LEWIS, age 41, and JILL LEWIS, age 40, residents of Slidell, Louisiana, were charged in a two-count Indictment for conspiracy to commit mail fraud and mail fraud, in violation of Title 18, United States Code, Sections 371 and 1341, and Title 28, United States Code, Section 2461(c).
According to Court documents, beginning on or before January 31, 2014 through in or around January 2016, the defendants conspired to submit numerous false insurance claims for reimbursement to the United States Postal Service (“USPS”), causing the USPS to mail checks to WILLIAM and JILL LEWIS for approximately $42,000. For example, WILLIAM and JILL LEWIS falsely represented to the USPS that they had sent expensive jewelry and other items through the mail and that the USPS lost the items. In connection with the false claims, WILLIAM and JILL LEWIS submitted forged invoices from retailers to the USPS to support the reimbursement amounts. The false claims and forged documents caused the USPS to send the reimbursement checks to the defendants through the mail.
In addition, according to Court documents, on or about September 29, 2015, the defendants submitted a false claim to the USPS, fraudulently representing that WILLIAM LEWIS purchased an Omega watch in the amount of approximately $4,999 and that the USPS lost the watch in the mail. This false and fraudulent claim for reimbursement caused the USPS to send a $4,999 reimbursement check to WILLIAM LEWIS that he deposited in his bank account.
If convicted, the defendants face up to 20 years of imprisonment, a fine up to $250,000, and restitution to the USPS in the amount of approximately $42,000.
U.S. Attorney Peter G. Strasser praised the work of the United States Postal Service, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Sharan E. Lieberman.
* * *