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Thursday 6 August 2020
Members and Associates of Violent Newark Street Gang Charged for Roles in Drug ConspiracyRead the Press Release
NEWARK, N.J. – Three members and associates of a violent street gang operating in Newark made their initial court appearances today on charges of conspiring to distribute narcotics, U.S. Attorney Craig Carpenito announced.
Zaire Dickerson, a/k/a “Tarzan,” 23, Shaquejah Wilson-Jones, a/k/a “Kiwi,” 23, and Nassir Grimsley, a/k/a “Chop,” 19, all of Newark, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute heroin and cocaine base. They all appeared today by videoconference before U.S. Magistrate Judge Edward S. Kiel.
According to documents filed in this case and statements made in court:
Law enforcement has been investigating the 793 set of the Bloods street gang in Newark since at least June 2019. That investigation has revealed that Dickerson and Grimsley are members of the 793 Bloods and distribute narcotics for the gang. Wilson-Jones is associated with the 793 Bloods and distributes narcotics with Dickerson and Grimsley.
Members of this 793 set have been engaging in violent disputes with other gangs, trafficked narcotics, and committed various firearms offenses within and around Newark for years. Several recent violent crimes in Newark and elsewhere, are believed to be related to this gang’s operations.
The narcotics conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1,000,000 fine.
U.S. Attorney Carpenito credited the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigations leading to the charges.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Managers, Supervisors, and Human Resource Personnel Indicted for Immigration Crimes and other Federal Crimes Stemming from Largest Single-State Worksite Enforcement Action in Nation’s HistoryRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst, joined by Acting Director of U.S. Immigration and Customs Enforcement Matt Albence, ICE’s Homeland Security Investigations (HSI) New Orleans Acting Special Agent in Charge Gilbert Trill, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Rafiq Ahmad announced today the unsealing of indictments returned by a Federal Grand Jury in the Southern District of Mississippi against four individuals who were managers, supervisors, or human resources personnel at companies where criminal and administrative search warrants were executed in August 2019 and 680 illegal aliens were detained.
“This office has a successful history of prosecuting employers for violating our immigration laws, and today marks another step in ensuring that justice is fairly and impartially done, no matter the law-breaker. I want to thank our partners at ICE Homeland Security Investigations and our office’s federal prosecutors for doggedly pursuing these criminal violations. The indictments unsealed today mark the beginning, not the end, of our investigations and prosecutions. Rest assured that we will continue to pursue criminal wrongdoers and enforce our criminal laws wherever the evidence may take us,” said U.S. Attorney Mike Hurst.
“The results of this ongoing criminal investigation illustrate the importance of strong interior enforcement. The arrests made last year pursuant to U.S. Immigration and Customs Enforcement’s execution of more than a dozen search warrants, have thus far yielded 126 indictments, 117 criminal arrests and 73 convictions. In total, more than 403 individuals falsified social security information in order to gain illegal employment in the United States,” said acting ICE deputy director and senior official performing the duties of the director Matthew T. Albence. “Companies who intentionally or knowingly base their business model on an illegal workforce deprive law abiding citizens and lawful immigrants of employment opportunities, which are especially critical as our economy looks to recover from the challenges faced by the COVID-19 pandemic. ICE Homeland Security Investigations will continue its commitment to uphold the laws Congress has passed. These laws protect jobs for the legal workforce, reduce incentives for illegal migration, and eliminate unequitable financial advantages for businesses employing illegal immigrants.”
INDICTMENT OF SALVADOR DELGADO-NIEVES OF A&B, INC.:
According to the indictment, Salvador Delgado-Nieves, 57, of Pelahatchie, Mississippi, was charged with three counts of harboring illegal aliens, three counts of assisting illegal aliens in falsely representing themselves to be United States citizens, three counts of assisting illegal aliens in obtaining false Social Security cards, and one count of making a false statement to law enforcement officials when he denied having hired illegal aliens at A&B, Inc. in Pelahatchie.
Delgado-Nieves faces up to 74 years in federal prison and $2.5 million in fines for these criminal violations, as Counts 1-6 carry a maximum of ten years in prison and a $250,000 fine for each violation, Counts 7-9 carry a maximum of three years in prison and a $250,000 fine for each count, and Count 10 carries a maximum of five years in prison and a $250,000 fine.
INDICTMENT OF IRIS VILLALON OF A&B, INC.:
According to the indictment, Iris Villalon, 44, of Ocean Springs, Mississippi, was indicted on one count of harboring an illegal alien, and one count of making false statements when she denied that she had hired illegal aliens for employment with A&B, Inc., in Pelahatchie, and one count of causing false employer quarterly wage reports to be filed when she knew the Social Security number represented in such reports was not assigned by the Social Security Administration to that specific illegal alien employee listed therein.
Villalon faces up to 20 years in prison and $750,000 in fines for these criminal violations, as Count 1 carries a maximum of ten years in prison and a $250,000 fine, and Counts 2-3 carry a maximum of up to five years in prison and a $250,000 fine on each count.
INDICTMENT OF CAROLYN JOHNSON AND AUBREY “BART” WILLIS OF PEARL RIVER FOODS LLC:
According to the indictment, Carolyn Johnson, 50, of Kosciuskio, Mississippi, was a Human Resource Manager and Aubrey “Bart” Willis, 39, of Flowery Branch, Georgia, was the Manager at Pearl River Foods LLC in Carthage, Mississippi. Johnson was indicted on six felony counts of harboring an illegal alien as well as one count of wire fraud and two counts of aggravated identity theft. Willis was indicted on five counts of harboring an illegal alien.
The indictment charges both defendants with harboring illegal aliens following the execution of federal warrants at the Pearl River Foods facility on August 7, 2019. Johnson was also indicted for fraud and aggravated identity theft in connection with a grant from the State of Mississippi for reimbursement for on the job training for employees of Pearl River Foods. As set forth in the indictment, Johnson submitted claims for reimbursement for on the job training that never occurred.
If convicted, Johnson faces a maximum of up to 84 years in prison and $2.25 million in fines, with Counts 1-6 carrying a maximum of ten years in prison and a $250,000 fine for each violation, Count 7 carrying a maximum of twenty years in prison and a $250,000 fine for each violation, and Counts 8-9 carrying a mandatory minimum of 2 years in prison and a $250,000 fine for each violation.
If convicted, Willis faces a maximum of up to 50 years and $1.25 million in fines, Counts 1-5 carrying a maximum of ten years in prison and a $250,000 fine for each violation.
Villalon, Johnson and Willis will appear for arraignment before United States Magistrate Judge Linda R. Anderson today at 1:30 p.m. Delgado-Nieves will appear before U.S. Magistrate Judge Keith Ball at 2:30 pm today for his arraignment. The case against Johnson and Willis has been assigned to Chief U.S. District Judge Daniel P. Jordan III. The cases against Villalon and Delgado-Nieves have been assigned to U.S. District Judge Carlton Reeves.
These cases were investigated by ICE’s Homeland Security Investigations and are being prosecuted by Assistant United States Attorney Lynn Murray.
On August 7, 2019, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, in partnership with the U.S. Attorney’s Office for the Southern District of Mississippi, executed multiple federal criminal and administrative search warrants at seven sites across central Mississippi. This was the largest single-state worksite enforcement operation in our nation’s history, resulting in the detention of 680 illegal aliens and the prosecution of 119 illegal aliens for stealing the identities of American citizens, falsifying immigration documents, fraudulently claiming to be United States citizens, and illegal re-entering the country after have been deported, among other federal crimes.
The investigations of federal criminal violations continue.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Leader of International Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
RALEIGH, N.C. – A man from Mexico pleaded guilty today to two offenses: conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine (Count One); and possession with intent to distribute five kilograms or more of cocaine, and aiding and abetting (Count Two).
According to court documents and the Drug Enforcement Administration (DEA), Bernave Millan-Rascon, also known as “Berna,” 40 years old, was one of two leaders of an international cocaine trafficking organization based in Mexico. Millan-Rascon directed the shipment of multi-kilogram quantities of cocaine from Mexico into Texas, and then into other parts of the United States, including the Eastern District of North Carolina.
Agents conducted a wiretap investigation and seized 16 kilograms of cocaine, $173,100, and two firearms in Benson, North Carolina and Willow Spring, North Carolina. During the wiretap, agents recorded phone calls in which the Defendant directed the shipment of large amounts of cocaine into North Carolina.
The Defendant was extradited from Colombia, South America for prosecution in the Eastern District of North Carolina. Millan-Rascon faces no less than ten years' imprisonment, and a maximum of life imprisonment, when he is sentenced during the court’s November 2020 term.
Three co-conspirators have previously been convicted and sentenced: Carlos Miranda Lopez (120 months’ imprisonment); Francisco Javier Rascon-Millan (12 months and 1 day imprisonment); and Malcolm Jamar Hird (120 months’ imprisonment).
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Terrence W. Boyle accepted the plea. The Drug Enforcement Administration (DEA), the Wilson Police Department, the Raleigh Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, and the Wayne County Sheriff’s Office assisted in this investigation. Assistant U.S. Attorney Scott A. Lemmon is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-425-BO-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lawrence man charged with hate crime for making racially-motivated threats toward black neighbor, and with unlawful possession of firearmsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Shepard T. Hoehn, 50, of Lawrence, Ind., has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms. The complaint was unsealed today in federal court. A copy of the criminal complaint and affidavit are attached to this release.
“Although the First Amendment protects hateful, ignorant and morally repugnant beliefs and speech, it does not protect those who choose to take criminal actions based on those beliefs,” said Minkler. “This office will continue to prosecute federal hate crimes to the fullest extent of the law.”
As alleged in the criminal complaint, Hoehn intimidated and interfered with an African-American man’s right to occupy his home because of his race and color. Specifically, Hoehn created and displayed a swastika on a fence facing the man’s property; placed and burned a cross above the fence line facing the man’s property; created and displayed a large sign next to the swastika containing a variety of anti-Black racial slurs; visibly displayed a machete near the sign; and loudly played the song “Dixie” on repeat.
The Lawrence Police Department and the FBI were called to investigate. During the investigation, Hoehn acknowledged he was angry over a dispute with the neighbors and knew his actions would cause his neighbors to feel intimidated and be afraid.
Subsequently, federal and local law enforcement executed search warrants at Hoehn’s residence. During the search several firearms and drug paraphernalia were located. Agents also discovered that Hoehn was a fugitive from a case in Missouri and federal law prohibited Hoehn from possessing firearms.
This case was investigated by the FBI and the Lawrence Police Department. Assistant United States Attorney Brad Shephard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
“The FBI takes allegations of civil rights violations very seriously and will not tolerate harassment and intimidation directed at individuals because of their race, sexual identity or religious beliefs," said Special Agent in Charge Paul Keenan, FBI Indianapolis. “Such incidents represent not just an attack on an individual, but also on the victim’s community, and are intended to create fear. The FBI and our law enforcement partners will continue to work to identify those committing these acts to ensure the rights of all Americans are protected.”
A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hoehn faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000 for each of the three charged offenses.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting the Civil Rights Reporting Portal located at civilrights.justice.gov. The form is fully accessible to people with disabilities and also available in both English and Spanish. Individuals can still call the U.S. Attorney’s Office Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free) or 202-514-3827.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to identify, investigate, and prosecute civil rights violations that rise to the level of criminal conduct. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 7.1)
Last Defendant Sentenced in Multi-State Methamphetamine and Fentanyl Trafficking ConspiracyRead the Press Release
LONDON, Ky. - A Somerset, Kentucky, man, Michael Davidson, 33, was sentenced in federal court on Thursday, to 85 months in prison, by U.S. District Court Judge Robert Wier, for conspiracy to distributing 50 grams or more of methamphetamine and 40 grams or more of fentanyl.
According to his guilty plea agreement, Davidson admitted that, from October 2018 through February 5, 2019, he conspired with others to distribute methamphetamine and fentanyl. Specifically, Davidson would travel to Dayton, Ohio, to meet with a co-conspirator who was his source of supply for the drugs. Davison and his co-consiprator would then return to Pulaski County, where they distributed the drugs.
Davidson’s co-conspirators were sentenced May and June 2020. Shumaure De’Quan, 27, of Dayton, Ohio, was sentenced to 120 months and five years of supervised release. Dennis Shumaker, 61, of Somerset, was sentenced to 60 months and five years of supervised release. Tommy W. Vaughn, 42, of Somerset, was sentenced to 128 months and eight years of supervised release.
Under federal law, Davidson and his co-defendants must serve 85 percent of their prison sentences. Davidson will be under the supervision of the U.S. Probation Office for four years after his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly made the announcement.
The investigation was directed by the FBI and Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Jenna Reed.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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KC Man Charged with Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court for his role in a conspiracy to commit at least seven armed robberies of local businesses, primarily fast food restaurants.
Chase M. Murphy, 19, was charged in a three-count criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Tuesday, Aug. 4. That complaint was unsealed and made public today upon his arrest and initial court appearance. Murphy remains in federal custody pending a detention hearing.
The federal criminal complaint alleges that Murphy participated in a conspiracy to commit a series of armed robberies of local businesses from May 28 to July 12, 2019. Murphy is also charged with one count of robbing the Taco Bell at 5925 Independence Ave., Kansas City, Mo., at gunpoint on May 28, 2019. The complaint also charges Murphy with brandishing firearms during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, a brick was thrown through the drive-through window of the Taco Bell on May 28, 2019, shattering the glass. Murphy and a co-conspirator, both carrying handguns, allegedly entered the restaurant through the broken window. They pointed their guns at the heads of two employees, the affidavit says, and ordered one to open the cash register. They took $300 from the register and fled through the broken window.
The affidavit cites six additional armed robberies, including
• Burger King, 1102 E. 47th St., Kansas City, Mo., on June 18, 2019;
• Family Dollar, 1201 E. Meyer Blvd., Kansas City, Mo., on June 25, 2019;
• McDonald’s, 6996 Eastwood Trafficway, Kansas City, Mo., on June 26, 2019;
• McDonald’s, 6701 E. Front St., Kansas City, Mo., on June 28, 2019;
• Taco Bell, 5925 Independence Ave., Kansas City, Mo., on July 1, 2019;
• Taco Bell, 4017 Blue Ridge Cutoff, Kansas City, Mo., on July 1, 2019.On July 12, 2019, police officers in Raytown, Missouri, responded to a suspicious vehicle that was parked with its lights off. When officers arrived, the driver of the 2003 Ford Escape turned on the vehicle’s lights, placed the vehicle in drive, and accelerated toward and then around the patrol vehicle. Officers pursued the vehicle until it struck a wall and became disabled. The driver and two passengers – one of whom was Murphy – attempted to flee on foot. They were arrested by officers, who also searched the Escape and found two handguns.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department and the Raytown, Mo., Police Department.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Seeks Forfeiture of Two Commercial Properties Purchased with Funds Misappropriated from Privatbank in UkraineRead the Press Release
Both Properties Worth a Combined $70 Million
MIAMI – The United States filed two civil forfeiture complaints today in the U.S. District Court for the Southern District of Florida alleging that commercial real estate properties in Louisville, Kentucky, and Dallas, Texas, both acquired using funds misappropriated from PrivatBank in Ukraine, are subject to forfeiture based on violations of federal money laundering statutes.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
The complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the Complaints, in the United States, associates of Kolomoisky and Bogoliubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of approximately $70 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida, International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
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 nos. 20-cv-23278 and 20-cv-23279.
Justice Department Seeks Forfeiture of Two Commercial Properties Purchased with Funds Misappropriated from PrivatBank in UkraineRead the Press Release
The United States filed two civil forfeiture complaints today in the U.S. District Court for the Southern District of Florida alleging that commercial real estate in Louisville, Kentucky, and Dallas, Texas, both acquired using funds misappropriated from PrivatBank in Ukraine, are subject to forfeiture based on violations of federal money laundering statutes.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
The complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the Complaints, in the United States, associates of Kolomoisky and Bogoliubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of approximately $70 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Jamestown Man Pleads Guilty to Methamphetamine Distribution ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Jacob Komenda, 24, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on April 27, 2019, members of the Jamestown Metro Drug Task Force executed a New York state search warrant at the defendant’s residence on Partridge Street in Jamestown. Officers recovered methamphetamine and other drug paraphernalia throughout the residence, as well as a 12 gauge shotgun and a stun gun.
On September 5, 2019, investigators executed a second state search warrant at the defendant’s residence, this time on Fairview Avenue in Jamestown, and a federal arrest warrant. Komenda had $3,182 in cash in his shorts pocket, which was proceeds of his drug trafficking activities. Investigators also recovered methamphetamine and various drug paraphernalia from the residence.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for November 9, 2020, at 12:30 p.m. before Judge Arcara.
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Jamestown Man Going to Prison for More Than 12 Years After Being Convicted of Selling Meth and A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kyle Kamholtz, 33, of Jamestown, NY, who was convicted of possessing with intent to distribute methamphetamine, and possessing of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 152 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that the defendant was identified as a methamphetamine distributor in the Jamestown, NY, area during an investigation that began in November 2017 by the Jamestown Police Department.
The investigation included a series of controlled purchases of methamphetamine from the defendant, several vehicle and traffic stops that resulted in Kamholtz’s arrest for possession of methamphetamine and a firearm, and the execution of two search warrants at the defendant’s McKinley Avenue residence. Investigators seized a firearm, methamphetamine, scales, packaging, and other drug distribution paraphernalia.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Indictment Charges Five Men for Involvement in Bridgeport Courthouse ShootingRead the Press Release
A federal grand jury in New Haven has returned an indictment charging five Bridgeport men with multiple offenses stemming from their alleged involvement in an afternoon shooting in front of a state courthouse in Bridgeport in January.
Today’s announcement was made by John H. Durham, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Armando J. Perez; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England.
The indictment, which was returned on August 5 and unsealed today following the arrest of four of the five defendants, charges
MARQUIS ISREAL, 24
ASANTE GAINES, 23
DESTINE CALDERON, 25
DIOMIE BLACKWELL, 23
LAHEEM JONES, 25Isreal, Calderon, Blackwell and Jones were arrested today. They appeared before U.S. Magistrate Judge Holly B. Fitsimmons via video conference and are detained. Gaines is detained in state custody on unrelated charges.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals and Bridgeport Police are actively investigating members of multiple Bridgeport-based groups, including members of the “Greene Homes Boys” or “Hots” (“GHB/Hots”), a group based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members are involved in narcotics trafficking and numerous acts of violence, including murder. At various times, GHB/Hots members have formed alliances with other Bridgeport groups, including the Original North End (“ONE”) to target rival gang members.
On January 27, 2020, at 12:11 p.m., Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims – Trevon Wright, Khalil Heard, Jaffar Ali, Jaheim Warren – had been shot while sitting inside a black Chevrolet Impala. Wright was shot in the side of his chest, and has been left paralyzed. Heard sustained multiple gunshot wounds to his back, shoulder and wrist. Ali was grazed in the head and shot in the left thumb, and Warren was grazed in the ribs. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
As alleged, this shooting is part of a larger ongoing investigation targeting the GHB/Hots, ONE and rival gangs.
The indictment charges Isreal, Gaines, Calderon, Blackwell and Jones with one count of assault with a dangerous weapon, attempted murder/aiding and abetting in assault with a dangerous weapon, and attempted murder, all in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. The assault offense carries a maximum term of imprisonment of 20 years and the attempted offenses carry a maximum term of imprisonment of 10 years. The five defendants are also charged with conspiracy to commit murder/conspiracy to commit assault with a dangerous weapon. The conspiracy to commit murder offense carries a maximum term of imprisonment of 10 years and the conspiracy to commit assault offense carries a maximum term of imprisonment of three years.
The indictment also charges Isreal with one count of using and discharging a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive sentence of at least 10 years, and one count of possession with intent to distribute heroin, cocaine base (“crack”) and fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
“The federal charges against these five defendants are the result of an extensive investigation conducted by a partnership of law enforcement entities formed to address the surge in violent crime in the city of Bridgeport,” said U.S. Attorney Durham. “The U.S. Attorney’s Office and the Bridgeport State’s Attorney’s Office are jointly supervising the investigation, and federal and state prosecutors worked seamlessly to ensure that appropriate charges were brought. I applaud the collaborative efforts of the Bridgeport Police Department, ATF, FBI and DEA in bringing those who are alleged to be responsible for this reckless and violent incident to stand trial for their actions. I also thank the forensic examiners at the Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services for their timely and expert analysis pertaining to DNA and ballistic evidence that has been critical to this investigation. Finally, I want to stress that while this is a significant and substantial prosecution that will assist in quelling violence in Bridgeport, our work is far from over. We continue to jointly investigate other violent acts in Bridgeport, and the groups, gangs or individuals responsible for them.”
“I would like to express my sincere appreciation to United States Attorney John H. Durham for his strong commitment to public safety in the city of Bridgeport,” said Chief Perez. “I also want to thank all of our federal and state partners. This was a great effort on everyone’s part.”
“Continued cooperation among local, state, and federal agencies is essential to stem the rising tide of violence in our community so that our youth can avail themselves to opportunities in education and employment, and all residents can enjoy peace and security,” said State’s Attorney Corradino. “I look forward to more successful interagency coordination and express my appreciation to all of the outstanding work by all those involved in this investigation.”
“This investigation is an example of ATF’s commitment to working with our law enforcement partners at the Bridgeport Police Department, DEA and FBI, said ATF Special Agent in Charge Brady. “Together we identified, targeted, investigated and arrested alleged violent criminals. Today’s arrests should serve as a warning that we will not tolerate gang related violence and those who cause it.”
“This indictment and these arrests are the result of the around the clock investigative work by city, state and federal law enforcement despite the ongoing challenges in our communities,” said FBI Special Agent in Charge Sundberg. “The alleged brazen violent acts by these individuals showed their blatant disregard for life of innocent people entering and exiting the court house. We will continue to vigorously pursue those bad actors that disrupt and diminish the quality of life for law abiding citizens.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities,” said DEA Special Agent in Charge Boyle. “These crimes rob the neighborhoods of safety and hold law abiding citizens of Connecticut hostage to drug-fueled lawlessness. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
“The Department of Emergency Services and Public Protection, Division of Scientific Services forensic analysts utilized the NIBIN and CODIS databases to provide timely forensic investigative leads to federal, state and local law enforcement agencies,” said Dr. Guy M. Vallaro, Director of the Department of Emergency Services and Public Protection’s Division of Scientific Services.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle and Karen L. Peck.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Indiana Man Charged with Hate Crime for Making Racially-Motivated Threats Towards Black Neighbor, and with Unlawful Possession of FirearmsRead the Press Release
WASHINGTON – The Justice Department announced today that Shepherd Hoehn, 50, has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms.
According to documents filed in connection with the complaint, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed of a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located. Agents also discovered that Hoehn was a fugitive from a case in Missouri and unable to lawfully possess firearms.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hoehn faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000 for each of the three charged offenses.
This case was investigated by the FBI and the Lawrence Police Department. Assistant United States Attorney Brad Shephard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
Houston Attorney Sentenced to Prison for Offshore Tax Evasion SchemeRead the Press Release
A Houston, Texas, attorney was sentenced to 24 months in prison for conspiring to defraud the United States and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
In September 2019, a jury convicted Jack Stephen Pursley, also known as Steve Pursley, of conspiring with a client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping. According to the evidence presented at trial, Pursley knew that the client had never paid taxes on these funds so Pursley designed and implemented a scheme to transfer the untaxed funds from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States. Pursley helped to conceal the movement of funds from the Internal Revenue Service (IRS) by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.
Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. In 2009 and 2010, Pursley evaded the assessment of and failed to pay the taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital. Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase personal assets, including a vacation home in Vail, Colorado, and property in Houston, Texas.
In addition to the term of imprisonment, U.S. District Judge Lynn N. Hughes ordered Pursley to serve 2 years of supervised release and to pay approximately $1,788,753 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty, Grace Albinson, and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Green Energy Fraudster Sentenced to Seven Years in Prison for Scamming Multiple Federal Agencies and CustomersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that David Dunham, 40, of Bethlehem, PA was sentenced to serve 84 months in prison, followed by three years of supervised release, and ordered to pay over $10.2 million in restitution by United States District Court Judge Jeffrey L. Schmehl.
Following a four week trial in April 2019, a federal jury convicted Dunham, owner of Smarter Fuel LLC in Wind Gap, PA, and co-owner of Greenworks Holdings LLC in Allentown, PA, of conspiracy to commit wire fraud and to defraud the United States, wire fraud, filing false tax documents, and obstruction of justice. The conviction arose from Dunham’s planning and execution of a scheme to defraud the Environmental Protection Agency (EPA), the Internal Revenue Service (IRS), the United States Department of Agriculture (USDA), and his customers, to obtain renewable fuel credits in his “green energy” biofuel business.
To carry out his green energy scam, from 2010 to 2015 Dunham fraudulently applied for, received, and sold EPA “credits” for producing biofuels that he, in fact, did not produce and, in many instances, had never possessed in the first place. Dunham also sought and received millions of dollars from the IRS and the USDA based on the same falsehoods. In total, based on the repeated falsehoods he told the federal agencies, Dunham obtained nearly $50 million in fraudulent revenue. Dunham’s co-defendant, Ralph Tomasso, the co-owner of Greenworks, previously pleaded guilty to conspiracy to defraud federal programs.
The evidence at trial also showed that Dunham engaged in multiple cover-ups designed to hide his crimes from authorities. These included altering his accounting records the day before an IRS audit in 2010, and providing a USDA auditor with dozens of falsified records, which Dunham had ordered an employee to fabricate, during an audit in 2012.
“David Dunham is a thief, dressed up in ‘green energy’ clothing,” said U.S. Attorney McSwain. “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.”
“This sentence sends a clear message that the Department of Justice will not tolerate fraud and will not hesitate to prosecute those who seek to undermine support for true American-made renewable fuel,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Mr. Dunham’s crimes were longstanding and elaborate, but this did not stop the Department from ensuring that such crimes are punished and justice is done.”
“David Dunham used false and fraudulent pretenses to steal millions of dollars from the Government,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “His loss of liberty today is the price he must pay for scamming the Government and stealing from hard working American taxpayers.”
“Today’s sentencing demonstrates there are real consequences for those defrauding the Renewable Identification Numbers (RINs) program,” said Director Jessica Taylor of EPA’s Criminal Investigation Division. “EPA, together with our federal partners, uncovered criminal activities by the defendants, and in doing so levelled the playing field for those who legally participate in the RINs program.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Agriculture’s Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley and Trial Attorney Adam Cullman of the ENRD.
Georgia man charged with having more than 50 grams of methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – James Matthew Hembree, of Snellville, Georgia, was indicted today on a methamphetamine charge, U.S. Attorney Bill Powell announced.
Hembree, 39, was indicted by a grand jury on one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Hembree is accused of having 50 grams or more of methamephtamine in September 2019 in Ohio County.
Hembree faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia businessman charged with hoarding and price gouging face masks in violation of Defense Production ActRead the Press Release
ATLANTA - Milton Ayimadu has been arraigned on federal charges of hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). Ayimadu was charged by a criminal information.
“Ayimadu allegedly saw the unprecedented COVID-19 global pandemic as an opportunity to make a profit,” said U.S. Attorney Byung J. “BJay” Pak. “Desperate to find personal protective equipment during the pandemic, thousands of customers unfortunately paid his inflated prices.”
“It is disheartening that anyone is alleged to have taken advantage of consumers who are desperate to acquire protective equipment that could save theirs, and other people’s lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Using the resources of all of our federal partners, we are making every effort to pursue anyone who tries to take advantage of citizens during this global pandemic.”
“The Postal Inspection Service is committed to investigating individuals and companies that intentionally hoard critical protective supplies or sell those items above market prices during the COVID-19 global pandemic,” said Inspector in Charge Tommy D. Coke. “Postal Inspectors will continue to coordinate with our law enforcement partners to ensure these violators are brought to justice.”
“IRS Criminal Investigation will continue to defend our citizens against those exploiting the COVID-19 global pandemic for personal benefit,”, said James E. Dorsey, Special Agent in Charge IRS-Criminal Investigations. “Today’s charges show IRS Criminal Investigation is committed to utilizing our financial expertise wherever we are needed in coordination with other agencies.”
“When the nation needed facemasks the most, Ayimadu decided to turn our fears into dollars,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are working diligently to investigate and arrest those criminals that have decided to use illegal business practices to increase their profits during this global pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: from early March 2020 to May 2020, during the COVID-19 global pandemic, Ayimadu engaged in hoarding and price gouging of more than 200,000 face masks in violation of the DPA.
On March 18, 2020, as COVID-19 spread across the country, the President of the United States invoked the powers of the DPA, which prohibits hoarding and price gouging–that is, selling in excess of prevailing market prices–certain materials that are designated as scarce materials. Because of the rapidly dwindling stock of personal protective equipment needed to care for seriously ill patients and prevent further spread of COVID-19, on March 25, 2020, the Secretary of Health and Human Services, with authority delegated by the President, designated certain health medical resources as scarce materials under the DPA. Among the materials designated were face masks that cover the user’s nose and mouth.
Ayimadu allegedly purchased more than 200,000 face masks from a foreign country for approximately $2.50 each and then re-sold them to American consumers, through his website, BabyPuuPu.com, for approximately $5.00 each—a markup of approximately 100 percent. During the two months in which Ayimadu sold face masks, he engaged in over 22,000 financial transactions. While Ayimadu priced his masks in excess of prevailing market prices to maximize his profits to the detriment of consumers desperate for personal protective equipment during the COVID-19 pandemic, manufacturers of authentic N95 masks continued selling face masks for the pre-pandemic price of under $2.00 per mask.
Milton Ayimadu, a/k/a Don Milton, 22, of Stockbridge, Georgia, was arraigned on August 6, 2020, before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the criminal information contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Tal C. Chaiken and Russell Phillips are prosecuting the case. Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, U.S. Attorney for the District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
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.
Georgia Business Owner Sentenced to 57 Months’ Imprisonment for Role in Scheme to Steal Millions from Federal Worker’s Compensation ProgramRead the Press Release
MIAMI -- Elizabeth Peters Young, 55, of Ball Ground Georgia, was sentenced to 57 months in prison, to be followed by three years of supervised release, in connection with her role in a lengthy conspiracy to pay and receive illegal kickbacks in exchange for the referral of expensive pain cream prescriptions to a Federal Worker’s Compensation program designed to provide benefits to federal employees injured while on the job. In addition, Young was ordered to pay a special assessment, forfeiture, and restitution, with the amounts to be determined at a future hearing.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor Office of Inspector General (DOL-OIG), and Scott Pierce, Special Agent in Charge, United States Postal Service Office of Inspector General (USPS-OIG) made the announcement.
District Court Judge Rodolfo A. Ruiz imposed the sentence, which came after a Fort Lauderdale jury found Young guilty on December 19, 2019 of conspiracy to pay and receive healthcare kickbacks and four counts of paying kickbacks in connection with a federal healthcare program (Case No. 19-CR-60157-RAR). During the ten-day trial, the evidence showed that in 2015, Young, a wealthy medical device sales rep and business owner who had been in the industry for decades, learned that the trust-based Federal Worker’s Compensation would reimburse thousands of dollars for certain “prescription” pain creams and patches called Terocin and Lidopro. In reality, these pain creams and patches were nearly identical to widely available over the counter items like Icy Hot.
According to court documents and evidence presented at trial, from March 2015 through April 2018, Young capitalized on her knowledge of these reimbursement rates by creating and executing an illegal kickback scheme. First, she made a deal with two pharmacies, including a small pharmacy in a strip mall to split 50% of illegal profits for the sale of these high-priced creams and patches. Young then used her friend who was a medical assistant to a spinal surgeon to prescribe these creams and patches to Federal Worker’s Compensation patients and then send those prescriptions to the two pharmacies. By simply connecting the prescriptions to the pharmacies, Young received over $1.5 million in fraudulently obtained federal funds.
The problem was that the medical assistant writing the scripts for Young during the scheme was not doing so for free, and as Young knew, it is illegal to pay someone in a doctor’s office to refer prescriptions. Therefore, to conceal the scheme, Young hired the medical assistant’s boyfriend as her “rep” to supposedly pitch the patches and creams to the very spinal surgeon that his girlfriend worked for in exchange for “commissions.” The evidence at trial proved that in reality, the boyfriend, who worked at Home Depot and had recently suffered brain injuries from a car accident, was expected to just “sit back and collect.” Young then proceeded to pay the boyfriend over $300,000 in illegal kickbacks to do just that.
Evidence at trial showed that during the scheme, Young was keenly aware of the nature of her unlawful conduct, and went to great lengths to disguise such conduct from authorities. For example, Young not only repeatedly googled articles about topics such as fraud and kickbacks at pharmacies, the FBI, and doctors being arrested, she also emailed them to co-conspirators with subject lines such as “FBI, Scary.” She also instructed co-conspirators to open shell companies, remove names from bank accounts, and not discuss patches and creams with others in the industry.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOL-OIG and USPS-OIG. The case was prosecuted by Assistant U.S. Attorneys Anne P. McNamara and David Turken. AUSA Adrienne Rosen handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Four Oaks Man Sentenced to 10 Years for Firearm ChargeRead the Press Release
RALEIGH, N.C. – A Four Oaks man was sentenced today to 120 months in prison for unlawfully possessing ammunition.
According to court documents, on April 28, 2018, officers with the Wayne County Sheriff’s Office responded to a burglary in progress. When officers arrived they observed several suspects flee the area on foot. While in pursuit of the individuals, a deputy observed Lamont Turrentine run towards a church building. Turrentine fired multiple shots at the pursuing deputy, hitting his patrol vehicle. Turrentine then took cover behind a building before firing multiple shots at the officer again. Turrentine evaded officers for a short time before being apprehended. Officers recovered a Springfield 9mm firearm on the ground behind the church in close proximity to where the defendant fled. A ballistics expert matched the firearm found on the path to the shell casings that were found where the shoot-out took place. Turrentine was found guilty by a jury on February 19, 2020. Prior to April, 2018, the defendant was convicted of multiple felony offenses including possessing a firearm as a convicted felon and cocaine distribution.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wayne County Sheriff’s Office investigated the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00245-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fort Wayne Men ChargedRead the Press Release
FORT WAYNE – Nathan Kaiser, age 48 and Leary Kaiser, age 20, both of Butler, Indiana were charged in separate indictments with multiple firearm related offenses, announced U.S. Attorney Kirsch.
According to documents in this case, Nathan Kaiser, the owner of Darkside Armory, a Federal Firearms Licensee, was charged in a 17 count indictment with possession of an unregistered machine gun, unregistered silencers and a bump stock device in violation of the National Firearm Act. Leary Kaiser, an employee of Darkside Armory, was charged in a 4 count indictment with falsifying ATF form 4473 to indicate more firearms were purchased than what actually occurred during the transaction and also for lying to agents about these falsifications.
U.S. Attorney Kirsch said, “The alleged charges here should send a strong message that illegal weapon possession and falsification of firearm related purchase documents will not be tolerated. I wish to commend ATF for their hard work on this case and their commitment to public safety that flows from compliance with the National Firearms Act requirements.”
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Former banker and mortgage broker sent to prison for defrauding California bankRead the Press Release
HOUSTON – Two Houston-area family members have been ordered to federal prison following their convictions on multiple counts to include conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud, announced U.S. Attorney Ryan K. Patrick.
A federal jury deliberated for approximately seven hours before convicting Carlos Wydler, 49, and Leyla Wydler, 60, both of Houston, on March 7, 2017, following a trial that spanned four weeks.
Today, U.S. District Judge Andrew Hanen imposed an 84-month sentence for Carlos Wydler and ordered him to pay $6,804,260 in restitution to the victim bank and its insurer. U.S. District Judge Andrew S. Hanen sentenced his step-mother to 132 months during a telephonic sentencing hearing in June. She was also ordered to pay the $6 million in restitution joint and several with her stepson. At the hearings, the court heard from the bank’s president who testified it was the largest fraud loss in the bank’s 113-year history
“The capture, conviction and sentencing of this mother and stepson highlight the FBI’s unending commitment to hold accountable greedy individuals who take advantage of their position of trust,” said Special Agent in Charge Perrye K. Turner of the FBI. “The FBI prioritizes financial institution fraud because it is not a victimless crime. Although the Wydlers did not wield weapons or threaten tellers, they endangered the stability of the federal banking system and our economy.”
Leyla Wydler was the owner of several Houston-area businesses including Globan Mortgage Company, Casa Milagro and First Milagro. In the spring 2007, Carlos Wydler went to work at a California bank as a vice-president in charge of the bank’s credit card department. Shortly thereafter, the Wydlers developed a scheme in which Leyla Wydler would send credit card applications to the bank for Carlos Wydler to approve. He approved the applications for high credit lines and then, calling them “balance transfers,” cash advanced the entire credit line to the borrower via wire or check with Leyla Wydler taking a fee from the borrowers’ loan proceeds.
“Greed and deception were at the heart of the Wydler’s scheme, which took advantage of their positions of trust within the banking industry,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). “This case demonstrates that the USPIS remains resolute in our mission to bring to justice those who fraudulently use the nation’s mail system in the furtherance of their deceptive schemes.”
During trial, the evidence demonstrated that the Wydlers were also developing a real estate project in Houston at the time and used the “balance transfer” program to finance investors in their project. The jury heard that the bank did not know or approve of the fee-sharing or real estate financing arrangements.
For approximately a year, hundreds of loan applications were faxed or emailed from Leyla Wydler’s business in Houston to Carlos Wydler at the bank in California. Many of these contained falsified income information and falsified supporting documents about borrowers’ employment, income and assets. Two eyewitnesses testified they saw Leyla Wydler routinely insert falsified income numbers, sometimes using white-out, on loan applications.
Leyla Wydler skimmed more than $1.4 million from loan proceeds, with Carlos Wydler approving approximately $600,000 more in unauthorized loans to family members. More than half of the Texas borrowers run through the Wydler-family business in Houston defaulted on their loans. The bank sustained a loss of more than $6 million.
The defense attempted to convince the jury that Carlos Wydler followed bank policy in his approval decisions. Leyla Wydler’s attorney argued that she did not know that the information she was sending contained falsified information.
The jury did not believe their claims and ultimately convicted both defendants of conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud. Carlos Wydler was also found guilty on six counts of misapplication of bank funds.
The Wydlers were taken into custody immediately after the verdict where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, USPIS and Federal Deposit Insurance Corporation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and John Lewis prosecuted the case.
Former Venezuelan official charged in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON – Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), announced U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston.
Jose Luis De Jongh Atencio, 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance in federal court.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen such as Jose Manuel Gonzalez Testino, a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez, a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the Southern District of Texas (SDTX), according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case along with Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Venezuelan Official Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX) and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Jose Luis De Jongh Atencio (De Jongh), 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen including Jose Manuel Gonzalez Testino, (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the SDTX, according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case. The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Former U.C. Davis Researcher Charged with Visa Fraud and Making False StatementsRead the Press Release
UPDATE
Pursuant to a motion by the government, the case against defendant Juan Tang described in the news release below was dismissed by the court on July 23, 2021.
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Juan Tang, 37, of Xi’an, China, charging her with visa fraud and making false statements to the FBI, U.S. Attorney McGregor W. Scott announced.
Arraignment is set for Aug. 10 at 2:00 PM before U.S. Magistrate Judge Edmund F. Brennan.
According to court documents, Tang is alleged to have possessed a non-immigrant J-1 visa that she obtained by making false statements during the application process about her military service. When later interviewed by FBI agents, Tang also made false statements about her military service. Specifically, it is alleged that Tang is a current member of the Chinese military and falsely claimed that she had not served in the military.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Department of State’s Diplomatic Security Service, San Francisco Field Office. Assistant U.S. Attorney Heiko P. Coppola is prosecuting the case.
If convicted of visa fraud, Tang faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of making false statements, Tang faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Milwaukee Alderman Sentenced to Prison for Wire FraudRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that earlier today Willie C. Wade (age: 57), a former Milwaukee alderman, was sentenced by United States District Judge Lynn Adelman to four (4) months in prison for executing a wire fraud scheme. Following his term of imprisonment, Wade also must serve three (3) years on supervised release.
According to court filings, Wade obtained $30,000 in cash from a cooperating businessman by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of a license to operate a downtown strip club. Court filings confirmed that the alderman was not aware of Wade’s representations and had never agreed to accept any bribe.
In imposing sentence, Judge Adelman explained that offenses like this are “extremely serious” as they can undermine public confidence in government by suggesting that public policy can be “bought and paid for.” Judge Adelman found that even though there was no actual bribe, incarceration was necessary to deter others and to convey the importance of maintaining trust in government.
Consistent with the terms of a plea agreement filed in the case, Judge Adelman ordered Wade to repay the money he received as a condition of his supervised release, and Wade made an initial payment of $10,000 toward this obligation before his sentencing hearing.
This case was investigated by the FBI and was assigned to Assistant United States Attorney Richard G. Frohling for prosecution.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Member of Boston Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.
Oscar Pena, a/k/a “King DO-Block,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 17, 2020. Pena was arrested and charged in December 2019, at which time he was a member of the Morton Street Bricks (also known as “MSB”), a Boston-based Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for the Morton Street housing project in Boston, the MSB Chapter of the Latin Kings included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise through the commission of criminal acts, Oscar Pena personally sold a cooperating witness approximately 38 grams of fentanyl.
In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Oscar Pena is the fifth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Government Employee and Active Duty Soldier at Camp Mabry in Austin Admit to Stealing over $1 Million in Military EquipmentRead the Press Release
In Austin this week, an active duty soldier and a former federal government employee at Camp Mabry admitted to stealing and unlawfully selling more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.
Appearing today before U.S. Magistrate Judge Mark Lane, 27-year-old Texas National Guardsman Cristal Avila of Fort Worth pleaded guilty to one count of theft of government property. On Tuesday, 35-year-old Joseph Mora of Schertz, TX, Avila’s co-defendant and former Program Analyst at the U.S. Property and Fiscal Office warehouse, pleaded guilty to the same charge. By pleading guilty, Avila and Mora admitted to conducting a scheme to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization. Mora later sold many of the stolen items on eBay and by other means.
On September 24, 2019, federal agents executed a search warrant at Mora’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.
Avila and Mora face up to ten years in federal prison and have agreed to pay restitution to the government for the stolen items as well as profits generated from the sale of those items. Both remain on bond pending sentencing which has yet to be scheduled.
Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case. Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Five charged in connection with alleged Paycheck Protection Program (PPP) fraud schemeRead the Press Release
ATLANTA - Five small business owners have been indicted in connection with a fraudulent scheme to obtain nearly $4.1 million in loan funding under the Paycheck Protection Program (PPP).
“The PPP was enacted to provide emergency financial assistance to business owners who are suffering the economic effects caused by the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants allegedly took advantage of this critical financial assistance to fraudulently obtain funds that other small businesses desperately needed to keep their employees on the payroll. We will continue investigating and prosecuting those who seek to line their own pockets.”
“The allegations against these defendants are disturbing,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Trying to defraud a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic is something we are very serious about and making every effort to stop.”
“The Paycheck Protection Program is essential to survival for many small businesses during these unprecedented times,” said Small Business Administration Inspector General Hannibal “Mike” Ware. “Our Office will continue to combat fraud schemes that involve using PPP funds for personal gain and greed. I want to thank the Department of Justice and our law enforcement partners for their pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: In April and May 2020, Darrell Thomas, Andre Lee Gaines, Kahlil Gibran Green, Sr., and Bern Benoit allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and another business – seeking a loan of approximately $800,000 for each company.
In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
In its PPP loan application, each business allegedly reported that it had between 63 and 69 employees, and approximately $319,000 to $332,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019. With the exception of one company’s reporting for one quarter, the five businesses reported an identical number of employees and an identical amount of payroll expenses for each quarter of 2019. In reality, however, none of the businesses had filed a Form 941 for any quarter in 2019 or for the first quarter of 2020. Four of the businesses also submitted with their applications fake bank statements that significantly inflated the funds in the businesses’ bank accounts. Indeed, two of the businesses did not open their bank accounts until after the time period reported on the fake bank statements.
After the PPP loan proceeds were deposited into the businesses’ accounts, Thomas, Gaines, Green, and Benoit transferred more than $2,000,000 into two of Thomas’s businesses: Bellator Phront Group, Inc. and Elite Executive Services, Inc. These transfers were purportedly for payroll services and rental payments, but none of the four businesses that sent money to Thomas’s companies had any legitimate business transaction with either of those companies. In addition, Gaines, through Gaines Reservation and Travel LLC, transferred approximately $335,000 to Carla Jackson’s company, Management Resource Services, Inc. Those payments were purportedly for a project that Management Resource Services, Inc. would perform for Gaines Reservation and Travel LLC, but the investigation revealed that no such project existed.
Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. In fact, Thomas used some of the funds transferred to Bellator Phront Group Inc. to purchase two luxury vehicles for more than $125,000 each: a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Jackson, meanwhile, used funds that she had received from Gaines Reservation and Travel LLC to make payments on two automobile loans. The other defendants likewise used the funds they received for various personal expenses and withdrawals. During the investigation, federal agents seized nearly $3.1 million dollars in PPP proceeds from ten bank accounts before the Defendants could further deplete these funds, and also seized Thomas’s Land Rover Range Rover.
Darrell Thomas, 34, of Duluth, Georgia, Andre Lee Gaines, 66, of Dallas, Georgia, Kahlil Gibran Green, Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, are charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, making false statements to a federally insured financial institution, and money laundering. Carla Jackson, 52, of Tucker, Georgia, is charged with money laundering. The defendants were indicted on August 4, 2020. Members of the public are reminded that the indictment only contains charges.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens and Department of Justice Trial Attorney Siji Moore are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
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.
Five Charged in Connection with an over $4 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Five individuals were charged in an indictment with fraudulently obtaining more than $4 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase luxury vehicles. Authorities have seized a Range Rover worth approximately $125,000, jewelry, over $120,000 in cash, and over $3 million from 10 bank accounts at the time of arrest.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; and Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region made the announcement.
Darrell Thomas, 34 of Johns Creek, Georgia, Andre Lee Gaines 66 of Dallas, Georgia, Kahlil Gibran Green Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank and wire fraud, bank fraud, wire fraud, false statements to a financial institution and money laundering. Additionally, Carla Jackson, 52, of Tucker, Georgia was charged with money laundering. Thomas, Gaines, and Jackson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Russell G. Vineyard of the Northern District of Georgia.
The indictment alleges that Thomas, Gaines, Green, and Benoit submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and Lee Operations LLC – seeking loans of approximately $800,000 for each company. Thomas, Gaines, Green, and Benoit caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ number of employees and payroll expenses. The financial institutions approved and funded over $4 million in loans.
The indictment further alleges that shortly after receiving the PPP funds, Thomas, Gaines, Green, and Benoit transferred the money to secondary bank accounts, including an account controlled by Jackson. After Jackson received the PPP funds, she further distributed the funds. Additionally, Thomas purchased a 2018 Mercedes-Benz S-Class S65AMG and a 2018 Land Rover Range Rover. In the days and weeks following the disbursement of PPP funds, the indictment alleges that Thomas, Gaines, Green, and Benoit did not make payroll payments as they claimed they would on their loan applications.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA OIG. Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Baton Rouge Man of Multiple Firearms ViolationsRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of Robert Earl Tucker, Jr., age 45, of Baton Rouge, Louisiana. Tucker was indicted by a federal grand jury on July 2, 2020, and charged with three counts of making false statements to a federally licensed firearms dealer, one count of possession of a firearm by a person adjudicated as a mental defective, and one count of possession of ammunition by a person adjudicated as a mental defective.
After a three-day trial before U.S. Chief Judge Shelly D. Dick, the jury unanimously convicted Tucker. As the evidence at trial demonstrated, Tucker was adjudicated as a mental defective in December 2011. On three separate occasions after this adjudication, he attempted to purchase firearms from various licensed firearms dealers. During the attempted purchases, Tucker completed forms, on which he falsely stated that he had not ever been adjudicated as a mental defective. After signing the forms, Tucker submitted the forms to the licensed dealers, who transmitted the information to the National Instant Criminal Background Check System.
The firearm and ammunitions charges were based on two separate incidents. On August 6, 2019, East Baton Rouge Sheriff’s Office responded to a dispatch regarding an armed individual at the Wal-Mart store located at 10550 Burbank Drive in Baton Rouge, Louisiana. That individual was later identified as Tucker. He was detained and searched for weapons, during which a loaded Ruger firearm was discovered. Subsequently, on June 8, 2020, Tucker was found to be in possession of forty-one (41) rounds of 9mm ammunition and thirty-eight (38) rounds of .22 caliber ammunition.
As a result of his convictions, Tucker now faces a maximum sentence of ten years in federal prison, significant fines, restitution, and supervised release.
U.S. Attorney Fremin stated, “I want to commend the courageous and bold action of the East Baton Rouge Sheriff’s officers who swiftly responded to an active shooter situation and ATF for their critical assistance. This conviction rightfully removes Mr. Tucker from the community and underscores the importance of enforcing federal firearms violations. I commend our dedicated law enforcement personnel and our prosecution team for their outstanding efforts to prepare and present this case to the jury.”
“Mental illness is a serious concern in our communities. This case illustrates the inherent dangers of a mentally ill person possessing firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “Thanks to the swift reaction by the East Baton Rouge Sheriff’s Office, the situation was contained without it turning tragic. ATF will continue to work hand-in-hand with our state and local partners to keep our communities safe.”
“The East Baton Rouge Sheriff’s Office is grateful for the partnership we have with the U.S. Attorney and his dedication to prosecuting these cases on the federal level,” Sheriff Sid Gautreaux said. “We will continue to dedicate our personnel and resources to initiatives that ensure the safety of our community.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the East Baton Rouge Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Eli J. Abad and Demetrius D. Sumner.
Federal Judge Sentences Cherokee Man for Stabbing Victim with a KnifeRead the Press Release
ASHEVILLE, N.C. – George Allan Lambert, 48, of Cherokee, N.C., and an Enrolled Member of the Eastern Band of Cherokee Indians, was sentenced to today to 45 months in prison and three years of supervised release for stabbing a victim with a knife, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. On November 5, 2019, a jury convicted Lambert of assault resulting in serious bodily injury, and assault with a dangerous weapon with intent to do bodily harm.
Chief Doug Pheasant of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney Murray in making today’s announcement.
According to filed documents, evidence presented at trial and witness testimony, on May 2, 2019, Lambert and the victim were visiting a residence in Swain County, within Indian Country. Over the course of the evening, Lambert quarreled with the victim, after Lambert accused the victim of stealing his money. During the argument, Lambert took out a knife and stabbed and sliced the victim multiple times in his shoulder and torso area. According to court records, the victim sustained heavy blood loss and required emergency surgery and more than 30 stitches as a result of the wounds inflicted by Lambert. Following the stabbing incident, Lambert fled the scene. CIPD arrested Lambert shortly thereafter.
Lambert is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked CIPD for their investigation of this case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal Judge Grants Temporary Restraining Order against New Braunfels Business for Promoting and Conducting Fraudulent Coronavirus TestingRead the Press Release
In San Antonio today, Senior U.S. District Court Judge David A. Ezra granted a Temporary Restraining Order (TRO) filed by federal authorities against Living Health Holistic Healing Center d/b/a Living Health New Braunfels (Living Health) and it’s owner, Leslie Tatum, to combat alleged fraudulent advertising and testing related to the coronavirus pandemic (COVID-19), announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
The purpose of the civil injunction is to stop Tatum, through her business, from advertising, offering and performing COVID-19 testing. According to a civil complaint filed in this case, Living Health and Tatum have misled the public into believing they are qualified to both administer COVID-19 diagnostic and serological tests and interpret the results of such tests. The defendants operate a website with the domain name “livinghealthnb.com”, a Facebook page, and use direct emails to induce customers into purchasing COVID-19 antibody testing for $85. The complaint further states that the test used by Tatum is not authorized by the U.S. Food and Drug Administration to determine whether individuals have an active COVID-19 infection or whether they should take steps to quarantine or isolate themselves from others. Moreover, according to the complaint, Tatum, a licensed massage therapist, is not qualified to perform nor evaluate the test results.
Today’s action will prevent Tatum from advertising COVID-19 testing through her business’s website and Facebook page immediately while this investigation continues. It will also prevent her from performing COVID-19 diagnostic or serological tests, or providing services related to the diagnosis, treatment, mitigation, or management of symptoms of COVID-19. By filing this action, the government is employing a federal statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes. A hearing on the TRO is scheduled for 9:00am on August 25, 2020, before Judge Ezra.
Individuals who were tested for COVID-19 at this facility are asked to contact the FBI by calling (210) 225-6741, prompt #1, or online at www.tips.fbi.gov. Those individuals are also encouraged to contact their primary care physician, local health department, free standing ER, or nearby urgent care facility for re-testing.
For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites. In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected]. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Western District of Texas, visit its website at www.justice.gov/usao-wdtx. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.
This enforcement action is being handled by Assistant U.S. Attorneys Erin M. Van De Walle, Justin Chung and Michael C. Galdo of the Western District of Texas. Special Agents with the FBI’s San Antonio Field Office are conducting the investigation.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendant.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Drug Dealer Receives 12 year Sentence for Fentanyl Overdose DeathRead the Press Release
NEWS RELEASE SUMMARY – August 5, 2020
SAN DIEGO – Federal District Court Judge Gonzalo P. Curiel today sentenced defendant Michael Steen to 148 months in prison for supplying the fentanyl that led to a 33-year-old Ramona woman’s fatal overdose on July 9, 2018.
On March 4, 2020, Steen pleaded guilty to Conspiracy to Distribute Fentanyl, and admitted he sold more than 500 grams of what he knew to be fentanyl in 2018.
“The current fentanyl threat requires an “all in” response by law enforcement. My office is collaborating with partners at every level to seize fentanyl at the border, build cases against cartels and street distributors, and pursue death charges against dealers of this deadly poison,” said U.S. Attorney Robert Brewer. “If you are selling fentanyl, beware: as today’s sentence reflects, you will be held fully accountable for the death and destruction you selfishly cause.”
“One of the DEA’s goals is to put people responsible for drug deaths in federal prison,” said DEA Special Agent in Charge John W. Callery. “Today’s sentence of Michael Steen to over 12 years in federal prison is testament to the hard work DEA and our outstanding law enforcement partners put into this investigation to ensure our goal was accomplished. We will continue to aggressively pursue those who deal drugs and cause death in our community.”
“The Sheriff's Department will continue to conduct thorough and collaborative fentanyl death investigations, ensuring traffickers and dealers are held accountable for a crime that costs lives and negatively impacts the community as a whole,” said Sheriff’s Narcotic and Gang Division Captain Dan Brislin.
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
U.S. Attorney Brewer praised prosecutor David Finn as well as the San Diego County Sheriff’s Department and DEA agents for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANTS Case Number 19-CR-0869-GPC
Michael Steen Age: 27
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1) Maximum penalty: Mandatory minimum 10 years in prison up to life
AGENCY
San Diego Sheriff’s Office
U.S. Drug Enforcement Administration, Narcotics Task Force
Dominican National Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LUIS MIGUEL ROSARIO-PERALTA, 29, a citizen of the Dominican Republic last residing in Stamford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
According to court documents and statements made in court, the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Unit identified Rosario-Peralta as a large-scale fentanyl trafficker. In July 2019, investigators intercepted Rosario-Peralta on a wiretap negotiating the sale of kilogram quantities of narcotics. Rosario-Peralta was arrested on July 5, 2019, in Yonkers, New York, after he traveled to a drug stash location there and picked up approximately three kilograms of fentanyl.
Peralta has been detained since his arrest. At sentencing, which is not scheduled, he faces a maximum term of imprisonment of life.
This matter has been investigated by the Drug Enforcement Administration and the Stamford Police Department, with the assistance of the Yonkers Police Department. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Diamondhead Man Sentenced to over 14 Years in Prison for Possessing Massive Amount of Child PornographyRead the Press Release
Gulfport, Mississippi. – Taryn Goin Naidoo, 41, of Diamondhead, Mississippi, was sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr., on three separate counts, to 170 months in prison on each count, each to run concurrently, for a total of 170 months, followed by 15 years of supervised release for each count, also to run concurrently, for knowingly possessing images of minors engaging in sexually explicit conduct, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst and Acting Special Agent in Charge Gilbert Trill with Homeland Security Investigations in New Orleans.
From July 2017 through October 2018, HSI conducted an investigation with the Hancock County Sheriff’s Office and the Diamondhead Police Department which resulted in the seizure and forensic examination of multiple electronic devices found at Naidoo’s residence, to include Micro SD cards, laptop computers, notepads or tablets, and hard drives. The evidence found on the electronic devices and the timeline of that evidence proved Naidoo knowingly possessed over 70,000 images and videos of minors engaging in sexually explicit conduct, to include images of minors under the age of 12.
Naidoo was charged in a federal criminal indictment on September 7, 2018, and in a superseding indictment on May 29, 2019. He was found guilty by a federal jury on January 10, 2020, after a five-day trial in U.S. District Court in Gulfport.
This case was prosecuted by Assistant U.S. Attorney Andrea Jones and Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
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 the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Department of Justice Awards Nearly $7 Million in Grant Funding to Assist Nevada Victims of Domestic ViolenceRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced today that the Department of Justice — through the Office of Justice Programs (OJP), Office of Violence Against Women (OVW), and the Bureau of Justice Assistance (BJA) is awarding nearly $7 million in grant funding and award opportunities to assist law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada, as part of its efforts to curb domestic and sexual violence across the country.
Domestic violence continues to be a scourge in Nevada communities, and has long lasting effects not only on victims of domestic violence, but also on their families and friends. The grant awards announced today are being launched as “Project Veronica,” 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.
Veronica’s mother, Rose Floyd, expressed gratitude for the initiative and said: “My family is honored that the Department of Justice and our Nevada communities will be keeping my daughter’s name in their hearts. Veronica would be proud to know that her legacy will live on through a project that aims to save families from the senseless pain suffered at the hands of domestic violence.”
“The recent increase in domestic violence homicides in Nevada is alarming,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs supports efforts by assisting state and local law enforcement and prosecutors in collaborating with U.S. Attorney Nick Trutanich’s office to help hold domestic violence offenders accountable and assist the victims of these crimes. We continue to applaud this Administration's determination to combat all violent crime.”
“We recognize that the increase in domestic violence as a result of the COVID-19 pandemic creates an urgent situation,” says Laura L. Rogers, Principal Deputy Director of OVW. “This funding will help support the victims of domestic violence, keep survivors safe, and provide resources for victim advocates.”
“This initiative funds domestic violence service providers and law enforcement throughout our state at a critical time,” said U.S. Attorney Trutanich. “Together, our combined efforts will prevent and deter domestic violence, and save lives. For our part, with the help of these new resources, our office looks forward to working closely with our local, state, and federal partners to make a renewed push to prosecute domestic violence offenders who illegally possess guns.”
“While staying at home may keep Nevadans safe from the pandemic, for many domestic violence victims, staying at home can be dangerous and has resulted in more calls for help,” said Nevada Attorney General Aaron D. Ford. “I’m grateful to the Department of Justice for providing funding so that my office can help protect our victims and their families, and provide much needed additional services.”
“When multiple agencies coordinate efforts to combat a known problem, our success is exponential. The partnership between my office, the U.S. Attorney, the Nevada Attorney General, and multiple non-profits shows our commitment to protecting victims of Domestic Violence and gun violence, and aggressively prosecuting offenders. Additional financial resources provided by these federal grants helps to ensure our success,” said Clark County District Attorney Steve Wolfson.
“Our pledge to protect the public is one ATF takes very seriously,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division. “Our special agents are working hard to prevent those individuals who are prohibited from possessing firearms. This includes investigating those who illegally possess a firearm after being convicted of a misdemeanor crime of domestic violence or who are subject to a domestic violence protective order. Since the start of the COVID-19 pandemic, there has been a troubling increase in domestic violence cases. To combat this unacceptable trend, ATF has been working side by side with our prosecutorial and law enforcement partners to achieve a maximum impact with the investigation and prosecution of those domestic violence offenders who illegally possess firearms. It is critically important to prevent these abusers from having access to firearms and to reduce the threat of gun violence in our communities.”
Over the past few years, victim service providers and law enforcement agencies throughout Nevada have worked hard to help victims and hold abusers accountable. Domestic violence, however, remains a significant issue. For example, Nevada ranks among the highest in the country for the rate of women murdered by men. And in Southern Nevada, about one-fourth of all murders stem from domestic violence and disputes.
Offenders who have committed domestic violence pose a particularly high risk of murdering their partners. Accordingly, federal law prohibits individuals subject to certain domestic violence protective orders and those who have been convicted of domestic violence misdemeanors — and convicted felons — from possessing firearms. Research indicates that an abuser with a firearm at home is five times more likely to kill her or his partner, compared to an abuser who does not have the same access to a firearm.
Against this backdrop, to help reduce domestic violence in Nevada, the Department of Justice is providing the following grant awards and targeted invitations to strengthen services and resources for victims, as well as to prosecute abusers for both violence and gun crimes:
Grant Award Opportunities
·$600,000 from BJA, made available to the Clark County District Attorney’s Office; Initiative with U.S. Attorney’s Office to Prosecute Gun Crimes
o The Clark County District Attorney’s Office is receiving a targeted invitation to apply for up to three years of funding (for up to $600,000), to help prosecute domestic violence-related gun crimes.
·$300,000 from OVW to enhance relationships between law enforcement and a community-based victim service provider.
·Total: $900,000
Statewide Initiatives
·$1,704,832 from OVW to the Nevada Office of the Attorney General; STOP (Services, Training, Officers, Prosecutors) Violence Against Women
o The STOP program’s goal is to develop and strengthen law enforcement, prosecution, victim services, and court strategies to combat violent crimes against women, including community-based, culturally specific services, in cases involving domestic violence, dating violence, sexual assault, and stalking.
·$416,734 from OVW to the Nevada Office of the Attorney General; Sexual Assault Services Program
o The Sexual Assault Services Program directs grant dollars to states and territories to assist them in supporting rape crisis centers and nonprofit, nongovernmental organizations that provide core services, direct intervention, and related assistance to victims of sexual assault.
·$243,619 from OVW to the Nevada Coalition to End Domestic and Sexual Violence; Support for Domestic Violence and Sexual Assault Victims
o This grant program helps the Nevada Coalition to End Domestic and Sexual Violence provide support to rape crisis centers, domestic violence shelters, and other domestic violence victim services programs.
·Total: $2,365,185
Tribal Communities
·$663,004 from OVW to the Yerington Paiute Tribe; Tribal Governments Program
o With this funding, in collaboration with the Nevada Coalition to End Domestic and Sexual Violence, the Yerington Paiute Tribe Victim Services Program will, among other things, support a violence prevention advocate and a victim services advocate who will provide legal advocacy and emergency services for primary and secondary victims of domestic violence, stalking, and sexual assault.
·$325,212 from OVW to the Shoshone-Paiute Tribes of the Duck Valley Indian Reservation; Tribal Sexual Assault Services Program
o This award will enable the Shoshone-Paiute Tribes to expand their Tribal Sexual Assault Services Program, such as increasing advocate staff hours and the availability of services for victims.
·Total: $988,216
Nevada’s Rural Communities
·$748,154 from OVW to the Douglas County District Attorney’s Office; Rural Domestic Violence, Sexual Assault, Dating Violence & Stalking Program
o With this award, the Douglas County Special Victims Response Team will enhance its ability to provide timely and thorough investigations of reported incidents of domestic violence, dating violence, sexual assault and stalking.
·$277,500 to No to Abuse – Nevada Outreach Training Organization; Transitional Housing
o This award will help No to Abuse provide both housing and supportive services to move survivors of domestic violence, dating violence, sexual assault, and stalking who are homeless to permanent housing. Additional services may include job training, education attainment, and safety planning.
·Total: $1,025,654
Nationwide Initiative
·$1,550,000 from OVW to the National Council of Juvenile and Family Court Judges; Training & Technical Assistance
o These funds will, among other things, help build the capacity of the criminal and civil justice systems within Nevada and elsewhere to respond effectively to domestic violence, dating violence, sexual assault, and stalking and to foster partnerships between organizations that have not traditionally worked together to address violence against women.
·Total: $1,550,000
*****
The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Anyone affected by abuse and wishes to seek support should please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or text LOVEIS to 22522.
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Cosmetic Surgeon and Cosmetic Surgery Practice Found Liable After Trial for Discriminating Against Individuals with Disabilities and Ordered to Pay $125,000 to Each VictimRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that SPRINGFIELD MEDICAL AESTHETIC P.C. d/b/a ADVANCED COSMETIC SURGERY OF NEW YORK (“ADVANCED COSMETIC”), and EMMANUEL O. ASARE, M.D. (“ASARE”), a plastic surgery practice and surgeon in that practice, were found by federal district judge Analisa Torres, after a bench trial, to have engaged in discrimination on the basis of disability in violation of Title III of the Americans with Disabilities Act of 1990 (“Title III of the ADA”). Specifically, Judge Torres concluded that ADVANCED COSMETIC, which has offices in Manhattan and Long Island, and ASARE, had an unlawful policy of denying services to individuals who are, or perceived to be, living with HIV, and applied that policy to unlawfully deny services to three prospective patients (the “Patients”) on the basis of their disability. The Court further concluded that ADVANCED COSMETIC and ASARE engaged in an unlawful practice of testing every preoperative patient for HIV, in violation of the ADA. Judge Torres awarded each of the three Patients $125,000 for emotional distress suffered as a result of ADVANCED COSMETIC’s and ASARE’s conduct, and imposed $15,000 in civil penalties. The Court also enjoined ADVANCED COSMETIC and ASARE from continuing to engage in practices that violate the ADA.
Acting U.S. Attorney Audrey Strauss said: “This verdict marks a significant victory in our continuing efforts to enforce the ADA and eliminate discriminatory practices against individuals living with HIV. The three patients who bravely testified at trial should not have had to suffer the discrimination they did when seeking medical services, and medical providers are reminded again that they are prohibited by law from treating individuals living with HIV differently from anyone else.”
Title III of the ADA prohibits discrimination by doctors, lawyers, hospitals, restaurants, retail stores, hotels, private transportation providers, and other private businesses and nonprofit organizations that provide services to the public. All of these entities are prohibited from excluding individuals with disabilities from their services and programs because they are living with a serious medical condition, such as HIV.
On May 6, 2015, the United States filed a Complaint in Manhattan federal court, alleging that ADVANCED COSMETIC and ASARE denied cosmetic surgery services to individuals living with HIV, in violation of the ADA. On February 10, 2016, one of the Patients filed an intervenor complaint alleging that ADVANCED COSMETIC and ASARE denied him cosmetic surgery services on the basis of his HIV status in violation of the ADA and the New York City Human Rights Law. At the bench trial held in October 2018, the Patients testified that they were denied services by ADVANCED COSMETIC and ASARE because they were either living with HIV, or, in the case of one Patient, perceived to be living with HIV. The Court’s findings of fact after trial included the following:
(1) Defendants refused cosmetic surgery services to the three Patients;
(2) Defendants did so when they became aware that each Patient was either living with HIV, potentially living with HIV, or living with HIV and taking antiretroviral drugs;
(3) Defendants tested the Patients without their consent in order to ascertain their HIV status; and
(4) each Patient suffered emotional distress as a result of Defendants’ actions.
The Court concluded that the above conduct violated the ADA. The Court further found that the testimony of the Patients detailed “severe psychological and emotional consequences of Defendants’ actions,” and awarded each Patient $125,000 in damages. The Court also awarded the United States $15,000 in civil penalties due in part to Defendants’ “troubling” practice of testing all prospective patients for HIV without their express consent. Finally, to prevent ADVANCED COSMETIC and ASARE from continuing to engage in unlawful practices, the Court permanently enjoined Defendants from (1) performing HIV testing on every patient as a routine practice, and (2) conducting HIV testing on any patient without the patient’s express consent.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Arastu Chaudhury and Lara K. Eshkenazi are in charge of the case.
Company President and Employee Arrested in Alleged Scheme to Violate the Export Control Reform ActRead the Press Release
Assistant Attorney General for National Security John C. Demers, Audrey Strauss, the Acting U.S. Attorney for the Southern District of New York, and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (OEE), announced the arrests today of Chong Sik Yu, a/k/a “Chris Yu,” and Yunseo Lee. Yu and Lee are charged with conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering. Yu and Lee were arrested this morning and are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
“The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case — controlled items used in missile and nuclear technology,” said Assistant Attorney General for National Security John C. Demers. “We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.”
“Chong Sik Yu and Yunseo Lee are accused of violating U.S. export laws by sending electronics components with military applications to Hong Kong and China,” said Acting U.S. Attorney Audrey Strauss. “Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
“A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items to Hong Kong and China that undermine the national security of the United States,” said OEE Special Agent in Charge Jonathan Carson. “We will continue to work with our law enforcement partners using criminal prosecutions to keep the most dangerous goods out of the most dangerous hands.”
As alleged in the criminal Complaint,[1] unsealed today in Manhattan federal court:
Since at least 2019, a U.S. company named America Techma Inc. (ATI) has illegally exported electronic components from the United States to Hong Kong for apparent re-export to other countries, including China, in violation of the Export Control Reform Act of 2018 (ECRA). Pursuant to the ECRA controls, the Department of Commerce administers export-licensing and other requirements for the export of goods, software, and technologies from the United States to foreign countries. These requirements restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States. The Commerce Department identifies the most sensitive items subject to EAR controls on the Commerce Control List (CCL), which is categorized by Export Control Classification Number (ECCN).
Yu is ATI’s President, and Lee is an ATI Sales Representative. Yu and Lee worked together and with others to ship what they knew to be export-controlled items to Hong Kong and China. For instance, in June 2019, ATI obtained electronics components — which are export-controlled under the CCL for missile technology, nuclear nonproliferation, and anti-terrorism reasons —from a U.S. supplier (U.S. Supplier-1), and then sent those components to a trading company in Hong Kong (Hong Kong Trading Company-1). In January 2020, ATI attempted to send to Hong Kong Trading Company-1 several electronic components, which are export-controlled under the CCL for anti-terrorism, national security, regional stability, missile technology, nuclear nonproliferation, and anti-terrorism. After the January 2020 package was detained by law enforcement, Yu and Lee discussed methods for evading future law enforcement scrutiny by, for instance, transshipping packages through South Korea, and by using a separate company based in New Jersey (the “New Jersey Reshipper”) to send shipments to Hong Kong in an attempt to avoid customs scrutiny of ATI’s shipments.
For instance, on Feb. 12, 2020, Lee sent an email to another ATI customer located in Hong Kong (Hong Kong Company-2) stating that: “[W]e had delivery issue currently with customs, so we’ve decided to release all items to South Korea first and release to HK from Korea temporarily.” The next day, Lee received a response, which stated, in part, “Most of the items we buy from ATI are under ECCN restriction, so I guess ATI will stock in and release to [ATI’s branch in South Korea], and then ship to HK . . . am I correct?” Lee replied, “Yes you are right.”
On March 5, 2020, Lee responded to Hong Kong Company-2’s inquiry regarding whether ATI could sell certain components to China. Lee’s response, which copied Yu, stated: “We’ve sold” the requested parts “to China customer many times. . . But currently we have customs issue so we don’t know how to handle it. [W]e are thinking we release all controlled parts to South Korea first then release to HK from Korea[.]”
Hong Kong Trading Company-1 also advised ATI on steps to take in order to evade U.S. export controls. For instance, Hong Kong Trading Company-1 advised Yu and Lee to use a marker to cover ATI’s name on labels, to cover each component with an electro-static discharge (ESD) bag, to remove all original documentation from the package, and to use the New Jersey Reshipper to send the shipment. On March 14, 2020, Lee sent an email to Hong Kong Trading Company‑1, copying Yu, stating: “We will follow your direction like adjusting invoice or removed label. But we do not have responsible if it will have problem during the transit to you. But for sure, we will do everything what you want for preparing shipments. We just hope that there is no more detained package.”
In April 2020, ATI sent a package of components to Hong Kong Trading Company-1 using the New Jersey Reshipper. The package was inspected and detained by U.S. customs authorities. Consistent with Hong Kong Trading Company-1’s instructions, the components had been placed in ESD bags labeled with part numbers different from the actual part numbers. One of the components in the April 2020 shipment was export-controlled under the CCL for national security and anti-terrorism.
Financial and shipping records establish that ATI has had a long-standing relationship with Hong Kong Trading Company-1. Between August 2016 and July 2020, ATI shipped more than 200 packages to Hong Kong Trading Company-1. In the one-year period between May 2019 and June 2020, Hong Kong Trading Company-1 transferred over $800,000 into ATI’s bank account in the United States.
No one involved in any of these transactions obtained the licenses required under the ECRA to export these dual-use components.
Yu, 58, of Oradell, New Jersey, and Lee, 33, of Fort Lee, New Jersey, are charged with one count of conspiring to unlawfully export dual-use electronics components, which carries a maximum sentence of 20 years in prison, one count of conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Assistant Attorney General Demers and Ms. Strauss praised the extraordinary investigative work of the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse and Michael D. Lockard are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Company President and Employee Arrested in Alleged Scheme to Violate the Export Control Reform ActRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (“OEE”), announced the arrests today of CHONG SIK YU, a/k/a “Chris Yu,” and YUNSEO LEE. YU and LEE are charged with conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering. YU and LEE were arrested this morning and are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
Acting U.S. Attorney Audrey Strauss said: “Chong Sik Yu and Yunseo Lee are accused of violating U.S. export laws by sending electronics components with military applications to Hong Kong and China. Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
Assistant Attorney General for National Security John C. Demers said: “The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case – controlled items used in missile and nuclear technology. We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.”
OEE Special Agent in Charge Jonathan Carson said: “A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items to Hong Kong and China that undermine the national security of the United States. We will continue to work with our law enforcement partners using criminal prosecutions to keep the most dangerous goods out of the most dangerous hands.”
As alleged in the criminal Complaint,[1] unsealed today in Manhattan federal court:
Since at least 2019, a U.S. company named America Techma Inc. (“ATI”) has illegally exported electronic components from the United States to Hong Kong for apparent re-export to other countries, including China, in violation of the Export Control Reform Act of 2018 (“ECRA”). Pursuant to the ECRA controls, the Department of Commerce administers export-licensing and other requirements for the export of goods, software, and technologies from the United States to foreign countries. These requirements restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States. The Commerce Department identifies the most sensitive items subject to Export Administration Regulations (“EAR”) on the Commerce Control List (“CCL”), which is categorized by Export Control Classification Number (“ECCN”).
YU is ATI’s president, and LEE is an ATI sales representative. YU and LEE worked together and with others to ship what they knew to be export-controlled items to Hong Kong and China. For instance, in June 2019, ATI obtained electronics components – which are export-controlled under the CCL for missile technology, nuclear nonproliferation, and anti-terrorism reasons – from a U.S. supplier (“U.S. Supplier-1”), and then sent those components to a trading company in Hong Kong (“Hong Kong Trading Company-1”). In January 2020, ATI attempted to send to Hong Kong Trading Company-1 several electronic components, which are export-controlled under the CCL for national security, regional stability, missile technology, nuclear nonproliferation, and anti-terrorism reasons. After the January 2020 package was detained by law enforcement, YU and LEE discussed methods for evading future law enforcement scrutiny by, for instance, transshipping packages through South Korea, and by using a separate company based in New Jersey (the “New Jersey Reshipper”) to send shipments to Hong Kong in an attempt to avoid customs scrutiny of ATI’s shipments.
For instance, on February 12, 2020, LEE sent an email to another ATI customer located in Hong Kong (“Hong Kong Company-2”) stating that: “[W]e had delivery issue currently with customs, so we’ve decided to release all items to South Korea first and release to HK from Korea temporarily.” The next day, LEE received a response, which stated, in part, “Most of the items we buy from ATI are under ECCN restriction, so I guess ATI will stock in and release to [ATI’s branch in South Korea], and then ship to HK . . . am I correct?” LEE replied, “Yes you are right.”
On March 5, 2020, LEE responded to Hong Kong Company-2’s inquiry regarding whether ATI could sell certain components to China. LEE’s response, which copied YU, stated: “We’ve sold” the requested parts “to China customer many times. . . But currently we have customs issue so we don’t know how to handle it. [W]e are thinking we release all controlled parts to South Korea first then release to HK from Korea[.]”
Hong Kong Trading Company-1 also advised ATI on steps to take in order to evade U.S. export controls. For instance, Hong Kong Trading Company-1 advised YU and LEE to use a marker to obscure ATI’s name on labels, to cover each component with an electro-static discharge (“ESD”) bag, to remove all original documentation from the package, and to use the New Jersey Reshipper to send the shipment. On March 14, 2020, LEE sent an email to Hong Kong Trading Company‑1, copying YU, stating: “We will follow your direction like adjusting invoice or removed label. But we do not have responsible if it will have problem during the transit to you. But for sure, we will do everything what you want for preparing shipments. We just hope that there is no more detained package.”
In April 2020, ATI sent a package of components to Hong Kong Trading Company-1 using the New Jersey Reshipper. The package was inspected and detained by U.S. customs authorities. Consistent with Hong Kong Trading Company-1’s instructions, the components had been placed in ESD bags labelled with part numbers different from the actual part numbers. One of the components in the April 2020 shipment was export-controlled under the CCL for national security and anti-terrorism.
Financial and shipping records establish that ATI has had a long-standing relationship with Hong Kong Trading Company-1. Between August 2016 and July 2020, ATI shipped more than 200 packages to Hong Kong Trading Company-1. In the one-year period between May 2019 and June 2020, Hong Kong Trading Company-1 transferred over $800,000 into ATI’s bank account in the United States.
No one involved in any of these transactions obtained the licenses required under the ECRA to export these dual-use components.
* * *
YU, 58, of Oradell, New Jersey, and LEE, 33, of Fort Lee, New Jersey, are each charged with one count of conspiring to unlawfully export dual-use electronics components, which carries a maximum sentence of 20 years in prison, one count of conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the extraordinary investigative work of the New York Field Office of the Department of Commerce, Office of Export Enforcement. Ms. Strauss also thanked the Newark Field Offices of Homeland Security Investigations and U.S. Customs and Border Protection for their assistance in the investigation, as well as the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse and Michael D. Lockard are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Chicago Man Sentenced to 20 Years in PrisonRead the Press Release
HAMMOND – Jesus Lopez, 42 years old, of Chicago, Illinois, was sentenced by United States District Court Judge James T. Moody after pleading guilty to possession with intent to distribute methamphetamine, announced United States Attorney Thomas L. Kirsch II.
Lopez received a sentence of 240 months in prison followed by 3 years of supervised release.
“Mr. Lopez will serve 20 years in prison for his guilty plea to possessing with the intent to distribute methamphetamine,” said U.S. Attorney Kirsch. “Smuggling drugs into our Country is an intolerable offense. We will continue to arrest and prosecute those caught in the Northern District of Indiana. I commend the interdiction efforts of the Hobart Police Department for the apprehension of Mr. Lopez.”
According to documents in this case, in November of 2016, a Hobart police officer stopped Lopez and his co-defendant in a vehicle on I-94. They were in possession of approximately 450 grams of 100% pure methamphetamine, which they were planning to sell to another individual. Lopez was also responsible for attempting to smuggle an additional 16 kilograms of methamphetamine from Mexico into the United States in November 2016.
“This sentencing of Mr. Lopez to 20 years in federal prison was necessary and just for the fine citizens of Porter County and the surrounding area,” said DEA Assistant Special Agent in Charge Michael Gannon. “Mr. Lopez, and others, who show complete disregard for the well-being of Hoosiers by trying to bring methamphetamine into Indiana must be held accountable for their actions. DEA commends the outstanding work that was done in this investigation by the United States Attorney’s Office and our state, local and federal partners.”
This case was investigated by the Drug Enforcement Administration and the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
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Camden County Businessman Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, businessman today admitted filing false tax returns that failed to report all of his business income, U.S. Attorney Craig Carpenito announced.
Rodney Bush-Rowland, 41, of Camden, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of making and subscribing a false income tax return.
According to documents filed in this case and statements made in court:
Bush-Rowland was the sole owner of To & Fro Transportation Inc., a Camden business that provided medical transportation services. Bush-Rowland admitted that during 2014 and 2015, he used a commercial check casher to negotiate over $2.7 million of To & Fro’s revenue checks. He admitted that he failed to include a large portion of the cashed checks on To & Fro’s corporate income tax returns. Bush-Rowland also admitted that he substantially underreported To & Fro’s income on his own individual income tax returns, causing a tax loss of more than $25,000.
In addition to filing false income tax returns, Bush-Rowland admitted to failing to pay over to the IRS employment taxes for To & Fro’s employees. During 2014, 2015, and 2016, Bush-Rowland filed quarterly employment tax returns that falsely reported that To & Fro paid all of the employment taxes due and owing for its employees. Bush-Rowland admitted that he actually failed to pay over more than $147,000 of To & Fro’s employment taxes during these three years.
The charge to which Bush-Rowland pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office Criminal Division in Camden.
Byram Man Sentenced to over 20 Years for Methamphetamine Trafficking ConspiracyRead the Press Release
Jackson, Miss. – Timothy Griffin, 44 of Byram, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III, to 262 months in federal prison and 5 years of supervised release for conspiring to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Griffin was also ordered to pay a $1,500 fine.
In June 2018, during an extensive investigation targeting illegal methamphetamine distribution in central Mississippi, DEA agents learned that a drug transaction was going to occur at a location on Raymond Road in Jackson. Agents observed a truck pull in to the location. The driver of the vehicle was identified as Timothy Griffin. After searching the truck, agents found approximately 425 grams of actual methamphetamine intended for distribution.
Griffin was charged in a federal criminal indictment with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. He pled guilty before Judge Jordan on March 17, 2020.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jones County Sheriff’s Office, the Jackson Police Department, the Richland Police Department, the Mississippi Bureau of Narcotics and the Internal Revenue Service. It was prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
Buffalo Woman Charged with Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sharee Bailey, 28, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the complaint, between October 12, 2017, and March 5, 2020, the defendant posted numerous photographs and videos on various social media accounts depicting herself displaying what appears to be multiple semi¬automatic handguns, revolvers, and rifles. On August 4, 2020, law enforcement officers went to a residence on Landon Street in Buffalo, and during the execution of a search warrant at the residence, officers recovered .22 caliber rifle and one spent .9mm shell casing. They also recovered a gun box for a .40 caliber pistol with one magazine inside the box. A hole, which appeared to be caused by gunfire, was found in the floor of the residence. Officers also recovered various types and calibers of ammunition throughout the apartment, and two cellular phones. Bailey, who told officers that she considers herself a member of the Riverdale Gang, was arrested a short time later.
In September 2012, the defendant was convicted in Erie County Court of Criminal Sale Controlled Substance-5th Degree. As a result of that 2012 conviction, Bailey is legally prohibited from possessing a gun. Bailey made an initial appearance before U.S. District Judge Jeremiah J. McCarthy and was detained.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Pleads Guilty to Drug Trafficking Charges and Admits His Role in A Drug-Related MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Taire Chaney, 28, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to possess with intent to distribute cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2008 and March 9, 2012, the defendant conspired with co-conspirator Tyshawn Bradley and others to sell cocaine and crack cocaine in and around the Perry Housing Projects in the City of Buffalo. The defendant admitted that Brad Daniels was murdered in 2012 as a result of this conspiracy.
In the summer of 2010, Chaney and Bradley perceived that a rival drug dealer was encroaching on their territory as the rival began selling crack cocaine in the Perry Projects. Bradley confronted the rival over this infringement. On July 29, 2010, an associate of Bradley was shot and killed on Perry Street, and Bradley believed that the death was a result of the feud with the rival drug dealer. In the following months, Chaney, Bradley, and another co-conspirator followed and shot at the rival drug dealer. On February 29, 2012, they saw the rival drug dealer riding in a Cadillac Escalade, which was driven by Brad Daniels. Chaney, Bradley and the co-conspirator followed the Escalade as it dropped off the rival drug dealer and continued driving. After the Escalade stopped on Bardol Street in Buffalo, Chaney, Bradley and the co-conspirator approached the car. Chaney shot a .45 caliber handgun multiple times through the driver’s side of the Escalade, while Bradley shot a .45 caliber handgun multiple times through the rear and passenger side of the Escalade. The co-conspirator discharged a 9mm semi-automatic handgun through the rear of the Escalade. Daniels, who was driving the Escalade, suffered three gunshot, and died. The investigation determined that one of the shots fired by Chaney resulted in Daniels death.
Tyshawn Bradley was previously convicted and sentenced to serve 30 years in prison.
Chaney’s plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for November 18, 2020, at 9:00 a.m. before Judge Skretny.
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Bowie County Man Guilty of Distributing Child PornographyRead the Press Release
TEXARKANA, Texas – A 32-year-old Texarkana, Texas, man has pleaded guilty to distribution of child pornography in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Troy Dewayne Daniels pleaded guilty on August 6, 2020, to distributing child pornography before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Daniels agreed to pay restitution to his victims, to register as a sex offender, and to be sentenced to a life term of supervised release following his imprisonment.
According to information presented in court, in October 2019, Daniels used social media apps to communicate with an undercover law enforcement officer. During the conversation, Daniels described his progress in grooming a female child for sexual exploitation, including stating that he was “hoping” to go “[a]ll the way” with her. During the conversation, Daniel admitted to the undercover officer that he had been looking at pictures and videos of younger girls “for a while.” Daniels then sent the undercover officer an image of child pornography claiming that the prepubescent female child depicted looked like the child he had been grooming. Daniels did so in exchange for non-pornographic images of the undercover officer’s (fictional) daughter. Several days later, Daniels reached out to the undercover officer and asked if he could “play” with the officer’s (fictional) daughter on Snapchat. In November 2019, law enforcement officers executed a search warrant at Daniels’s home. Inside, officers found electronic devices containing more than 600 images of child pornography. The images found depicted prepubescent minors, sadistic or masochistic abuse or other depictions of violence, and depictions of the sexual exploitation of infants and toddlers.
Under federal statutes, Daniels faces a minimum of 5 years and up to 20 years in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The U.S. Attorney’s Office for the Eastern District of Texas is committed to the protection of our children. Advances in technology over the past two decades have brought about new obstacles for parents, educators, and law enforcement. No longer are children safe in their own homes. No longer can teachers and parents let their guard down when our children are in the classroom, library, or even in their own home. The statistics are alarming. One in five children per year receives an unwanted sexual solicitation online. One in 33 children per year receives an aggressive sexual solicitation. And perhaps most disturbing, at any given time, 50,000 predators are on the Internet actively seeking out children. This office is committed to aggressively implementing programs and targeting those who would harm children in order to provide a safer environment for all children. More information and resources for parents and educators are available at https://www.justice.gov/usao-edtx/project-safe-childhood.
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Biofuel Fraudster Sentenced to Seven Years in Prison for Scamming Multiple Federal Agencies and CustomersRead the Press Release
The owner of a biofuel company was sentenced to seven years in prison followed by a three-year term of supervised release and ordered to pay $10,207,000 in restitution for defrauding multiple federal agencies and customers.
Following a four-week trial before U.S. District Judge Jeffrey L. Schmehl, a federal jury in the Eastern District of Pennsylvania convicted David Dunham, owner of Smarter Fuel LLC in Wind Gap, Pennsylvania and co-owner of Greenworks Holdings LLC of Allentown, Pennsylvania, of conspiracy to commit wire fraud and defraud the United States; wire fraud; filing false tax documents and obstruction of justice.
The conviction arose from Dunham’s planning and executing a scheme to defraud the Environmental Protection Agency (EPA), the IRS, the U.S. Department of Agriculture (USDA), and his customers, to obtain renewable fuel credits in his “green energy” business.
“This sentence sends a clear message that the Department of Justice will not tolerate fraud and will not hesitate to prosecute those who seek to undermine support for true American-made renewable fuel,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Mr. Dunham’s crimes were longstanding and elaborate, but this did not stop the Department from ensuring that such crimes are punished and justice is done.”
“David Dunham is a thief, dressed up in ‘green energy’ clothing,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.”
“David Dunham used false and fraudulent pretenses to steal millions of dollars from the Government,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “His loss of liberty today is the price he must pay for scamming the Government and stealing from hard working American taxpayers.”
To carry out his green energy scam, from 2010 to 2015 Dunham fraudulently applied for, received, and sold EPA “credits” for producing biofuels that he, in fact, did not produce and, in many instances, had never possessed in the first place. Dunham also sought and received millions of dollars from the IRS and the USDA based on the same falsehoods. All told, based on the repeated falsehoods he told the federal agencies, Dunham obtained nearly $50 million in fraudulent revenue. In carrying out this massive fraud, Dunham used his businesses, Smarter Fuel, which he owned, and Greenworks Holdings, which he operated with his co-defendant, Ralph Tomasso, who previously pleaded guilty to conspiracy to defraud federal programs.
The evidence at trial also showed that Dunham engaged in multiple cover-ups designed to hide his crimes from authorities. These included altering his accounting records the day before an IRS audit in 2010, and providing a USDA auditor with dozens of falsified records, which Dunham had ordered an employee to produce, during a 2012 audit.
The case was investigated by the EPA’s Criminal Investigation Division, the IRS Criminal Investigation, and the USDA’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Mary E. Crawley and Trial Attorney Adam Cullman of the Environment and Natural Resources Division.
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.
Asheville Resident Is Sentenced to 14 Years for Transporting Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Mance Lee Ruvolo, 41, of Asheville, to 168 months in prison on transportation of child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Ruvolo was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, on July 13, 2018, law enforcement became aware that an individual was using an e-mail address to upload images containing child pornography. Law enforcement identified the email account user as Ruvolo, and positively linked to Ruvolo the cell phone used to upload the child pornography. Court documents also show that a review of Ruvolo’s email account revealed additional images and videos of child exploitation, including videos and images of prepubescent children being sexually abused. Ruvolo pleaded guilty to transportation of child pornography on January 3, 2020.
Ruvolo is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney Murray thanked HSI and SBI for handling the investigation.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Arkansas Project Manager Pleads Guilty to Bank Fraud and False Statements in Connection with COVID-Relief FraudRead the Press Release
A project manager employed by a major retailer has pleaded guilty to bank fraud charges for filing fraudulent bank loan applications seeking more than $8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) OIG and Inspector General Hannibal “Mike” Ware of the SBA OIG made the announcement.
Benjamin Hayford, 32, of Centerton, Arkansas, pleaded guilty to one count of bank fraud and four counts of false statements to a financial institution before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma. Sentencing has been scheduled for Nov. 4 before Judge Eagan.
As part of his guilty plea, Hayford admitted that he sought millions of dollars in forgivable PPP loans from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA OIG, FDIC OIG, and SBA OIG. Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case. The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.
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.
Arkansas Project Manager Pleads Guilty to Bank Fraud and False Statements in Connection with Covid-Relief FraudRead the Press Release
A project manager employed by a major retailer has pleaded guilty to bank fraud charges for filing fraudulent bank loan applications seeking more than $8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) OIG and Inspector General Hannibal “Mike” Ware of the SBA OIG made the announcement.
Benjamin Hayford, 32, of Centerton, Arkansas, pleaded guilty to one count of bank fraud and four counts of false statements to a financial institution before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma. Sentencing has been scheduled for Nov. 4 before Judge Eagan.
“Stopping COVID-related fraud is a priority for the Department of Justice. Fraudsters like Benjamin Hayford greedily steal money that should be going to America’s small business owners who are struggling during this public health crisis,” said U.S. Attorney Trent Shores. “From coast to coast, U.S. Attorneys and our federal investigative partners will continue to pursue those who would defraud the government by engaging in schemes to steal millions of dollars in forgivable PPP loans by claiming fictitious payroll expenses.”
As part of his guilty plea, Hayford admitted that he sought millions of dollars in forgivable PPP loans from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA OIG, FDIC OIG, and SBA OIG. Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case. The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.
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.
Arizona Man Pleads Guilty to Misbranding and Smuggling Conspiracy Involving Online Sale and Distribution of Unapproved Drugs Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Chino Valley, Arizona, pleaded guilty in federal court to one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, United States Attorney Scott W. Brady announced today.
Jeremy Brooks, 31, pleaded guilty before United States District Judge Arthur J. Schwab.
During his plea hearing, Brooks admitted that between January 2016 and May 8, 2018, he engaged in a conspiracy to obtain unapproved drugs in bulk quantities from overseas suppliers, including suppliers in China, for the purpose of pressing the drugs into pills and distributing them to customers throughout the United States via an internet-based business—Domestic RCS—that he and a co-conspirator, Justin Ash, controlled. The business’s website, www.domesticrcs.com, advertised multiple unapproved or "misbranded" drugs—clonazolam, diclazepam, flubromazolam, and etizolam—each of which was a non-prescription benzodiazepine or substance with a similar chemical composition. As Brooks further acknowledged, these substances carried risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants. Although the co-conspirators’ website and the packaging contained in their shipments indicated that the substances were for "research purposes only," Brooks admitted that he was aware that the vast majority of customers purchased the drugs for individual consumption. Indeed, Brooks, Ash, or others acting at their direction communicated directly with individual customers about, among other things, the effects of the drugs when used for personal consumption. In an effort to evade detection by United States federal authorities, including the United States Food and Drug Administration, United States Postal Inspection Service, and United States Customs and Border Protection, Brooks also admitted that he and Ash caused their overseas suppliers to ship drugs to multiple addresses under their control and in smaller quantities that would draw less government scrutiny.
As part of a written plea agreement, Brooks agreed to forfeit approximately $106,000 in currency seized as part of the investigation.
Brooks faces a maximum sentence of five years in prison, a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
In a related case before Judge Schwab, Ash pleaded guilty for his role in the conspiracy on January 16, 2020, and is awaiting sentencing.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the charge in this case.
Acting Manhattan U.S. Attorney Announces Agreement to Address New York City’s Ongoing Non-Compliance with Rikers Consent JudgmentRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that the United States has entered into an agreement (“Remedial Order”) with New York City and the New York City Department of Correction (“DOC”) to address ongoing non-compliance with core provisions of a Court-ordered Consent Judgment entered in October 2015 to reduce violence in NYC jails on Rikers Island and ensure the safety and well-being of inmates. The Remedial Order, which is subject to the final approval of the Court, requires DOC to implement operational reforms to fix systemic deficiencies that have continued to plague the jail system. Specifically, under the Remedial Order, DOC must adopt numerous new measures designed to reduce the unnecessary use of force against inmates, improve staff supervision, enhance the quality and timeliness of investigations into use of force incidents, ensure that correction officers are held accountable for their misconduct, and better manage and supervise the youngest inmates in custody. The independent federal monitor overseeing the Consent Judgment will assess compliance with the requirements of the Remedial Order.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Five years ago, this Office entered into a groundbreaking, Court-enforceable agreement requiring the City and the Department of Correction to implement sweeping, comprehensive reforms to protect the constitutional rights of inmates and ensure their safety. As documented repeatedly through the federal monitor’s reports to the Court, the City and DOC have failed to fulfill core obligations under that agreement. While this Office recognizes that changing a decades-long culture of violence is not a simple task, the City and DOC must do better. By agreeing to adopt the measures set forth in this Remedial Order, they have taken a step in the right direction. This Office will continue to closely monitor the implementation of the required reforms and vigilantly enforce the requirements of the Remedial Order and the underlying Consent Judgment.”
In August 2014, after completing a multi-year investigation, this Office issued a report that concluded that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely utilize force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.” The United States proceeded to join a class action lawsuit against the City, Nunez v. City of New York, which alleged that DOC engaged in a pattern and practice of using unnecessary and excessive force against inmates throughout the jail system. In October 2015, Judge Laura Taylor Swain entered a Consent Judgment requiring DOC to develop and implement myriad new practices, systems, policies, and procedures to reduce violence and the use of excessive and unnecessary force. The Consent Judgment is subject to the oversight of the Court and an independent federal monitor.
Notwithstanding these Court-mandated reforms, the frequency with which correction officers use force against inmates has increased dramatically since the Consent Judgment was entered, with the average monthly use of force rate increasing by more than 100% from 2016 to 2019. In recent bi-annual reports to the Court, the federal monitor has found the City and DOC to be in non-compliance with numerous key provisions of the Consent Judgment. For instance, in his report filed on May 29, 2020, the federal monitor found that DOC “continues to struggle to properly manage Staff’s use of force” and went on to conclude that “a pattern of unprofessional conduct and hyper-confrontational behavior by Staff, an overreliance on alarms and the Probe Team, misuse of OC spray [i.e., pepper spray], use of painful escort techniques, and improper use of head strikes have all plagued the agency’s use of force since the Effective Date [of the Consent Judgment].”
The Remedial Order requires DOC, among other things, to:
- Improve the level of supervision of Captains by substantially increasing the number of Assistant Deputy Wardens assigned to jails.
- Evaluate inmates who have been involved in a significant number of use of force incidents to determine whether their mental health needs are being adequately addressed, and whether existing security and management protocols are appropriate for these inmates.
- Develop a new protocol governing the composition and deployment of Facility Emergency Response Teams (i.e., probe teams) in order to minimize unnecessary or avoidable uses of force by staff.
- By the end of the year, complete all outstanding investigations into use of force incidents that have been pending for a lengthy period of time.
- Utilize a recently created unit of trained investigators to investigate all use of force incidents within 25 business days to determine whether staff violated the use of force policy, or whether further investigation is necessary.
- Consistently not exceed caseload targets approved by the federal monitor for investigators responsible for investigating use of force incidents.
- Impose immediate corrective action on staff for violations of the use of force policy when recommended by the federal monitor.
- Expedite the prosecution of disciplinary cases involving violations of the use of force policy by, among other things, ensuring that at least 50 cases are heard each month by the Office of Administrative Trials and Hearings (“OATH”).
- With respect to units housing 18-year-old inmates, improve the staff assignment system such that the same correction officers, Captains, and Assistant Deputy Wardens are consistently assigned to work in the same housing unit and on the same tour, to the extent feasible.
- With respect to units housing 18-year-old inmates, implement a system that includes a variety of short-term and long-term rewards and consequences to incentivize positive inmate behavior and sanction negative conduct.
While this Office remains extremely concerned with DOC’s ongoing failure to comply with core requirements of the Consent Judgment, the Office recognizes that the agency has made some significant improvements in other areas since the Consent Judgment became effective. For example, DOC has installed thousands of wall-mounted video surveillance cameras throughout the jails to ensure complete camera coverage; created and provided a wide range of new training programs for staff; developed a new computerized case management system to track a wide range of information relating to use of force incidents; eliminated the use of punitive segregation for inmates under the age of 22; and stopped housing youths under the age of 18 on Rikers Island.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Lara K. Eshkenazi are in charge of the case.
- Improve the level of supervision of Captains by substantially increasing the number of Assistant Deputy Wardens assigned to jails.