Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 31 July 2020
Union County Man Charged with Fourth Count of Coercing and Enticing Victims for the Purpose of ProstitutionRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Union County, New Jersey, man for persuading, inducing and enticing numerous female victims to travel in interstate or foreign commerce to engage in prostitution and other sexual acts, often by use of force, violence and threats, U.S. Attorney Craig Carpenito announced.
Jose Torres, 42, of Elizabeth, New Jersey, was charged today in a superseding indictment with four counts of coercion and enticement. Torres was originally charged in February 2020 with two counts of coercing and enticing and on May 29, 2020, he was indicted on a third count involving another victim. Today’s indictment adds a fourth victim. Torres will be arraigned at a later date.
According to the documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from various out of state locations, including Canada, New York, and Pennsylvania, in order to engage in prostitution with him. In each instance, Torres lured a female victim to New Jersey with promises of large payments. In three of the charged instances, when the victim asked for payment, Torres became aggressive, often assaulting and raping her. Torres never paid the women for their services.
The two most recently charged counts allege that in December 2015, Torres lured Victim-4 to travel from Pennsylvania to New Jersey on promises of large sums of payment. In May 2018 Torres lured Victim-3 to travel from New York City to New Jersey on promises of large sums of payment. Once Victim-3 arrived, she began to feel uncomfortable. Torres threatened Victim-3, telling her it was in her best interest to remain in the hotel room. Victim-3 remained in the room and Torres then forced her to engage in unwanted sexual activity, including having sexual intercourse without a condom.
The coercion and enticement charges each carry a maximum term of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Jason Molina in Newark; and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to today’s superseding indictment.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, this week marked the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (ADA). Since President George H.W. Bush signed the Act into law on July 26, 1990, the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
The ADA prohibits discrimination on the basis of disability in employment, activities and facilities of state and local governments and places of public accommodation, including all hotels, restaurants, retail stores, theaters, health care facilities, convention centers, parks and places of recreation. Its promise is to work to eliminate disability discrimination across the range of services, programs and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. The ADA seeks to allow individuals with disabilities to live more independently.
The ADA empowers the U.S. Attorney’s Office to investigate, litigate and resolve complaints of discrimination and to conduct compliance reviews to ensure covered entities comply with the Act’s requirements.
“On this anniversary of the enactment of the ADA, we are reminded of the harm caused by discrimination on the basis of disability,” stated Acting United States Attorney DuCharme. “The ADA recognizes that we all benefit when persons with disabilities have the same opportunities and access to services and facilities as people without disabilities. This Office, which serves the people of Brooklyn, Queens, Staten Island, and Nassau and Suffolk Counties, remains committed to protecting the rights of the disabled and taking legal action when necessary to right wrongs.”
Since the passage of the ADA in 1990, this Office has fulfilled the mission of the ADA in a wide range of enforcement actions, including:
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
- Ensuring Accessibility at Citi Field and Barclays Center. Pursuant to its authority to conduct compliance reviews under the ADA, the Office worked to ensure that individuals with mobility impairments are able to access Citi Field, home of the New York Mets, and the Brooklyn Nets’ Barclays Center.
- Protecting the Rights of Individuals with Serious Mental Illness. The Office has obtained an ongoing Consent Decree with the State of New York to transition into the community individuals with mental illness who reside in adult homes – substandard privately owned facilities licensed by the State. Almost 1,000 former adult home residents covered by the Decree now live successfully in community placements.
- Protecting the Rights of Individuals Who Are Deaf and Hard of Hearing in the New York City Homeless Family System Programs. The Office entered into a Consent Decree and Judgment with the City of New York homeless family shelter system to ensure that it provides sign language interpretation and other auxiliary aids and services to clients who are deaf or hard of hearing.
- Obtaining relief for individuals with disabilities who were subject to discrimination
- Compelling a regional shoe store chain to educate its managers regarding the rights of individuals with disabilities after a store manager in Bay Ridge, Brooklyn forced a customer in a wheelchair to leave the store because her wheels were “dirtying the carpets.” The Settlement Agreement also required the chain to pay the individual $10,000 for emotional injury.
- Obtaining damages on behalf of an HIV+ patient whose surgeon refused to operate on him.
- Obtaining relief for a child with diabetes who was turned away from a children’s summer camp.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the U.S. Attorney’s Office, contact the U.S. Attorney’s Office at [email protected] or visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
U.S. Attorney's Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
PITTSBURGH – Sunday, July 26, 2020, marked the 30th Anniversary of the Americans with Disabilities Act (the ADA), a critical civil rights law that aims to eliminate discrimination against people with disabilities.
"The ADA has improved the lives of millions of Americans by ensuring that individuals with disabilities are afforded equal access and opportunity," said U.S. Attorney Scott Brady. "Our office remains committed to investigating complaints, removing barriers and safeguarding the civil rights of all of our citizens, including those protected by the ADA."
The promise of the ADA is its wide-ranging efforts to eliminate disability discrimination across the range of services, programs, and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. Whether in employment, areas of civic life, or in the day-to-day activities and access to goods and services that we all enjoy – the ADA ensures that individuals with disabilities enjoy the same opportunities as all Americans to participate in everything this nation has to offer.
Over the past 30 years, the United States has undertaken the challenge of changing perceptions about disability, tearing down barriers to equality, and altering the systems that have historically excluded people with disabilities. Today, the Justice Department commemorates the many ways that the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY). To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/.
In January 2020, U.S. Attorney Brady named Assistant U.S. Attorneys Eric G. Olshan and Haley Warden-Rodgers as co-coordinators of the office’s Civil Rights efforts. Either can be reached through the office’s main number: (412) 644-3500 or by emailing [email protected].
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two California Residents Sentenced for Counterfeiting SchemeRead the Press Release
BOISE – This week, U.S. District Judge B. Lynn Winmill sentenced two of four defendants who pleaded guilty to passing counterfeit obligations of the United States, U.S. Attorney Bart M. Davis announced. On July 29, 2020, Nicole Perez, 34, of California, was sentenced to 33 months in federal prison for her role in the scheme. On July 30, 2020, Equallette Ballesteros, 34, also of California, was sentenced to 33 months in federal prison. Both defendants sentenced this week will serve three years of supervised release upon their release from custody.
According to court records, on January 4 and 5, 2020, Perez and Ballesteros knowingly passed counterfeit $100 bills at retailers in the Twin Falls, Idaho area, with the intent to defraud the retailers.
The remaining co-defendants, Richard Hernandez, 27, and Matthew Rodriguez-Islas, 22, both of California, are scheduled to be sentenced on September 22, 2020 and September 23, 2020, respectively in front of U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the United States Secret Service and Twin Falls Police Department.
# # #
Tipton County Probationer Arrested During “Operation Crime Driver” Sentenced to Federal Prison for Possessing FirearmRead the Press Release
Memphis, TN – Danny Muex, 32, of Tipton County has been sentenced to 40 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on February 20, 2019, as law enforcement patrolled near the area of Covington, Tennessee where several gunshots had been reported, Officers saw a white 1999 Ford Mustang traveling at a high rate of speed. The driver was later identified as Muex. Corporal Bradley Williams with the Tipton County Sheriff’s Office attempted to stop the vehicle, but Muex continued driving, eventually losing control of the vehicle.
As Muex got out of the vehicle, the deputy observed Muex carrying a firearm in his right hand while attempting to flee on foot. The deputy was able to stop Muex and placed him in custody. Corporal Jeremy Finney located a loaded Bersa .380 caliber firearm underneath Corporal Williams’s vehicle. A search of the suspect vehicle was conducted. Deputies located a straw with a white residue which tested positive for cocaine. Deputies also located a box containing 38 rounds of .380 ammunition, one round of 300 blackout ammunition, $186.00 cash, five cellular telephones, and a digital scale.
At the time of the offense, Muex was on probation from a Florida felony conviction for possession of a firearm as a convicted felon. Muex’ arrest was part of "Operation Crime Driver", a joint federal, state and local law enforcement anti-violence initiative led by the District Attorney General’s Office for the 25th Judicial District, and conducted between February and May 2019, where law enforcement targeted offenders wanted on arrest warrants for violent criminal offenses in Tipton County, Tennessee. Muex was among 6 defendants from the first phase of "Operation Crime Driver" to be indicted in federal court in October, 2019 for various drug and gun offenses. https://www.justice.gov/usao-wdtn/pr/operation-crime-driver-targets-violent-criminals-tipton-county.
On July 27, 2020, U.S. District Court Judge Thomas L. Parker sentenced Muex to 40 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "We are pleased to join with our federal, state and local law enforcement partners to focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities, and we are glad to support this successful joint operation by adopting these cases for aggressive federal prosecution. We are tired of the trigger-pullers and traffickers that terrorize Tipton County, and we will continue our laser focus on the real drivers of violent crime: guns, gangs, and drugs."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Tipton County Sheriff’s Office.
Special Assistant U.S. Attorney Sean Hord prosecuted this case on behalf of the government.
###
Three Individuals Charged for Alleged Roles in Twitter HackRead the Press Release
Three individuals have been charged today for their alleged roles in the Twitter hack that occurred on July 15, 2020.
Mason Sheppard, aka “Chaewon,” 19, of Bognor Regis, in the United Kingdom, was charged in a criminal complaint in the Northern District of California with conspiracy to commit wire fraud, conspiracy to commit money laundering, and the intentional access of a protected computer.
Nima Fazeli, aka “Rolex,” 22, of Orlando, Florida, was charged in a criminal complaint in the Northern District of California with aiding and abetting the intentional access of a protected computer.
The third defendant is a juvenile. With exceptions that do not apply to this case, juvenile proceedings in federal court are sealed to protect the identity of the juvenile. Pursuant to the Federal Juvenile Delinquency Act, the Justice Department has referred the individual to the State Attorney for the 13th Judicial District in Tampa, Florida.
“The hackers allegedly compromised over 100 social media accounts and scammed both the account users and others who sent money based on their fraudulent solicitations,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The rapid investigation of this conduct is a testament to the expertise of our investigators, our commitment to responding quickly to cyber attacks, and the close relationships we have built with law enforcement partners throughout the world.”
“There is a false belief within the criminal hacker community that attacks like the Twitter hack can be perpetrated anonymously and without consequence,” said U.S. Attorney David L. Anderson for the Northern District of California. “Today’s charging announcement demonstrates that the elation of nefarious hacking into a secure environment for fun or profit will be short-lived. Criminal conduct over the Internet may feel stealthy to the people who perpetrate it, but there is nothing stealthy about it. In particular, I want to say to would-be offenders, break the law, and we will find you.”
“Upon opening an investigation into this attack, our investigators worked quickly to determine who was responsible and to locate those individuals,” said San Francisco FBI Special Agent in Charge John F. Bennett. “While investigations into cyber breaches can sometimes take years, our investigators were able to bring these hackers into custody in a matter of weeks. Regardless of how long it takes us to identify hackers, we will follow the evidence to where it leads us and ultimately hold those responsible for cyber intrusions accountable for their actions. Cyber criminals will not find sanctuary behind their keyboards.”
“Weeks ago, one of the world’s most prolific social media platforms came under attack. Various political leaders, celebrities, and influencers were virtually held hostage as their accounts were hacked,” said Kelly R. Jackson, IRS-Criminal Investigation (IRS-CI) Special Agent in Charge of the Washington D.C. Field Office. “The public was confused, and everyone wanted answers. We can now start answering those questions thanks to the work of IRS-CI cyber-crime experts and our law enforcement partners. Washington DC Field Office Cyber Crimes Unit analyzed the blockchain and de-anonymized bitcoin transactions allowing for the identification of two different hackers. This case serves as a great example of how following the money, international collaboration, and public-private partnerships can work to successfully take down a perceived anonymous criminal enterprise. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, IRS-CI will continue to follow the money and unravel complex financial transactions.”
“Today’s announcement proves that cybercriminals can no longer hide behind perceived global anonymity,” said Thomas Edwards, Special Agent in Charge, U.S. Secret Service, San Francisco Field Office. “The Secret Service remains committed to pursuing those responsible for cyber-enabled fraud and will continue to hold cyber criminals accountable for their actions. This investigation is a testament to the strong partnerships between the Secret Service, the U.S. Attorney’s Office, the FBI, the IRS, as well as our state, local and international law enforcement partners.”
“Our identities and reputations are sacred. We will continue to aggressively defend and protect individuals, companies, and other entities from new-age cyber-fraud, especially those who scheme to hack, defraud and wreak havoc on U.S. citizens across the country,” said Caroline O’Brien Buster, Special Agent in Charge, U.S. Secret Service, Orlando Field Office. “The Secret Service believes that building trusted partnerships between the private sector and all levels of law enforcement is the proven model for success. I commend the exceptional work conducted by our law enforcement partners and the U.S. Attorney’s Office who worked diligently to hold these defendants accountable.”
As alleged in the complaints, the Twitter attack consisted of a combination of technical breaches and social engineering. The result of the Twitter hack was the compromise of approximately 130 Twitter accounts pertaining to politicians, celebrities, and musicians.
The hackers are alleged to have created a scam bitcoin account, to have hacked into Twitter VIP accounts, to have sent solicitations from the Twitter VIP accounts with a false promise to double any bitcoin deposits made to the scam account, and then to have stolen the bitcoin that victims deposited into the scam account. As alleged in the complaints, the scam bitcoin account received more than 400 transfers worth more than $100,000.
This case is being investigated by the FBI’s San Francisco Division, with assistance from the IRS-Criminal Investigation Cyber Unit; the U.S. Secret Service, San Francisco and Headquarters; the Santa Clara County Sheriff’s Office and their REACT task force and the Florida Department of Law Enforcement.
The case is being prosecuted by Senior Counsel Adrienne Rose of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys William Frentzen and Andrew Dawson of the Northern District of California.
Additional assistance has been provided by the U.S. Attorney’s Office for the Middle District of Florida; the State Attorney for the 13th Judicial District in Tampa, Florida; the Criminal Division’s Office of International Affairs and Organized Crime and Gang Section; the United Kingdom’s Central Authority and National Crime Agency; Chainalysis and Excygent.
The allegations of a criminal complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Anderson’s video statement can be viewed here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Three Individuals Charged for Alleged Roles in Twitter HackRead the Press Release
SAN FRANCISCO– Three individuals have been charged today for their alleged roles in the Twitter hack that occurred on July 15, 2020.
The announcement was made by United States Attorney David L. Anderson; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; FBI Special Agent in Charge John L. Bennett; Kelly R. Jackson, IRS Criminal Investigation, Special Agent in Charge of the Washington D.C. Field Office; U.S. Secret Service Special Agent in Charge of the San Francisco Field Office Thomas Edwards and U.S. Secret Service Special Agent in Charge of the Orlando Field Office Caroline O’Brien Buster. Additional facts regarding the investigation and charges can be found here: https://youtu.be/z80K3-q3Kqg.
Mason Sheppard, aka “Chaewon,” 19, of Bognor Regis, in the United Kingdom, was charged in a criminal complaint in the Northern District of California with conspiracy to commit wire fraud, conspiracy to commit money laundering, and the intentional access of a protected computer.
Nima Fazeli, aka “Rolex,” 22, of Orlando, Florida, was charged in a criminal complaint in the Northern District of California with aiding and abetting the intentional access of a protected computer.
The third defendant is a juvenile. With exceptions that do not apply to this case, juvenile proceedings in federal court are sealed to protect the identity of the juvenile. Pursuant to the Federal Juvenile Delinquency Act, the Justice Department has referred the individual to the State Attorney for the 13th Judicial District in Tampa, Florida.
“There is a false belief within the criminal hacker community that attacks like the Twitter hack can be perpetrated anonymously and without consequence,” said U.S. Attorney David L. Anderson for the Northern District of California. “Today’s charging announcement demonstrates that the elation of nefarious hacking into a secure environment for fun or profit will be short-lived. Criminal conduct over the Internet may feel stealthy to the people who perpetrate it, but there is nothing stealthy about it. In particular, I want to say to would-be offenders, break the law, and we will find you.”
“The hackers allegedly compromised over 100 social media accounts and scammed both the account users and others who sent money based on their fraudulent solicitations,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The rapid investigation of this conduct is a testament to the expertise of our investigators, our commitment to responding quickly to cyber attacks, and the close relationships we have built with law enforcement partners throughout the world.”
“Upon opening an investigation into this attack, our investigators worked quickly to determine who was responsible and to locate those individuals,” said San Francisco FBI Special Agent in Charge John F. Bennett. “While investigations into cyber breaches can sometimes take years, our investigators were able to bring these hackers into custody in a matter of weeks. Regardless of how long it takes us to identify hackers, we will follow the evidence to where it leads us and ultimately hold those responsible for cyber intrusions accountable for their actions. Cyber criminals will not find sanctuary behind their keyboards.”
“Weeks ago, one of the world’s most prolific social media platforms came under attack. Various political leaders, celebrities, and influencers were virtually held hostage as their accounts were hacked,” said Kelly R. Jackson, IRS-Criminal Investigation (IRS-CI) Special Agent in Charge of the Washington D.C. Field Office. “The public was confused, and everyone wanted answers. We can now start answering those questions thanks to the work of IRS-CI cyber-crime experts and our law enforcement partners. Washington DC Field Office Cyber Crimes Unit analyzed the blockchain and de-anonymized bitcoin transactions allowing for the identification of two different hackers. This case serves as a great example of how following the money, international collaboration, and public-private partnerships can work to successfully take down a perceived anonymous criminal enterprise. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, IRS-CI will continue to follow the money and unravel complex financial transactions.”
“Today’s announcement proves that cybercriminals can no longer hide behind perceived global anonymity,” said Thomas Edwards, Special Agent in Charge, U.S. Secret Service, San Francisco Field Office. “The Secret Service remains committed to pursuing those responsible for cyber-enabled fraud and will continue to hold cyber criminals accountable for their actions. This investigation is a testament to the strong partnerships between the Secret Service, the U.S. Attorney’s Office, the FBI, the IRS, as well as our state, local and international law enforcement partners.”
“Our identities and reputations are sacred. We will continue to aggressively defend and protect individuals, companies, and other entities from new-age cyber-fraud, especially those who scheme to hack, defraud and wreak havoc on U.S. citizens across the country,” said Caroline O’Brien Buster, Special Agent in Charge, U.S. Secret Service, Orlando Field Office. “The Secret Service believes that building trusted partnerships between the private sector and all levels of law enforcement is the proven model for success. I commend the exceptional work conducted by our law enforcement partners and the U.S. Attorney’s Office who worked diligently to hold these defendants accountable.”As alleged in the complaints, the Twitter attack consisted of a combination of technical breaches and social engineering. The result of the Twitter hack was the compromise of approximately 130 Twitter accounts pertaining to politicians, celebrities, and musicians.
The hackers are alleged to have created a scam bitcoin account, to have hacked into Twitter VIP accounts, to have sent solicitations from the Twitter VIP accounts with a false promise to double any bitcoin deposits made to the scam account, and then to have stolen the bitcoin that victims deposited into the scam account. As alleged in the complaints, the scam bitcoin account received more than 400 transfers worth more than $100,000.
This case is being investigated by the FBI’s San Francisco Division, with assistance from the IRS-Criminal Investigation Cyber Unit; the U.S. Secret Service, San Francisco and Headquarters; the Santa Clara County Sheriff’s Office and their REACT task force and the Florida Department of Law Enforcement.
The case is being prosecuted by Assistant U.S. Attorneys William Frentzen and Andrew Dawson of the Northern District of California and Senior Counsel Adrienne Rose of the Criminal Division’s Computer Crime and Intellectual Property Section.
Additional assistance has been provided by the U.S. Attorney’s Office for the Middle District of Florida; the State Attorney for the 13th Judicial District in Tampa, Florida; the Criminal Division’s Office of International Affairs and Organized Crime and Gang Section; the United Kingdom’s Central Authority and National Crime Agency; Chainalysis and Excygent.
The allegations of a criminal complaint are merely allegations, and the defendants are presumed innocent unless or until the allegations against them are proved beyond any reasonable doubt.
Statement of the Department of Justice Antitrust Division on the Closing of Its Investigation of London Stock Exchange Group and RefinitivRead the Press Release
Assistant Attorney General Makan Delrahim of the Antitrust Division of the U.S. Department of Justice issued the following statement today in connection with the closing of the division’s investigation into the proposed acquisition of Refinitiv by the London Stock Exchange Group (LSEG):
“After an extensive review of the proposed transaction, the Antitrust Division determined that the combination of LSEG and Refinitiv is unlikely to result in harm to competition or American consumers.”
LSEG, headquartered in London, operates the London Stock Exchange, the Italian stock exchange, Borsa Italiana, and a number of other trading platforms for trading of stocks, other equity-like exchange traded products, bonds and derivatives. LSEG offers indexes such as the FTSE 100 and Russell 2000, analytical tools, and data solutions through its FTSE Russell business.
Refinitiv, headquartered in New York City, is one of the main providers of financial markets data and infrastructure. Refinitiv offers consolidated real-time and non-real time data feeds of stocks and other discrete content, and desktop solutions and terminals for financial industry professionals. It also supplies foreign exchange benchmarks and controls several electronic trading venues in various asset classes.
In August 2019, LSEG and Refinitiv announced that LSEG had reached an agreement to acquire Refinitiv in a transaction valued at approximately $27 billion. Following that announcement, the Antitrust Division conducted a comprehensive eight-month investigation, during which it reviewed documents, analyzed data, and interviewed industry participants.
In conducting its analysis, the Division considered the vertical relationships between LSEG and Refinitiv where one firm serves as a supplier to the other of needed inputs, as well as the horizontal aspects of the transaction where LSEG and Refinitiv offer competing products. In analyzing these different aspects to the transaction, the Division used both the recently released Vertical Merger Guidelines and the Horizontal Merger Guidelines, issued by the Antitrust Division and the Federal Trade Commission.
When analyzing the vertical aspects of the transaction, the division considered how the proposed transaction could affect the ability and incentives of LSEG and Refinitiv to change the licensing terms for proprietary data feeds used by their rivals to supply products that compete against similar products from LSEG and Refinitiv. Examples of such data feeds include pricing data for financial instruments, currency benchmark rates, and securities identifiers.
The division’s analysis considered how changes in the licensing of LSEG’s and Refinitiv’s proprietary data feeds could affect competition for financial indexes and financial data products, and found that the proposed transaction is unlikely to significantly lessen competition for those products where rivals rely on LSEG and Refinitiv for inputs. In many instances, for example, the rivals who purchase products and services from LSEG or Refinitiv also sell products and services back to LSEG and Refinitiv. The division’s analysis took into account the competitive significance in the United States of LSEG’s and Refinitiv’s products compared to their rivals’ products, and the bargaining relationships these rivals have with LSEG and Refinitiv. The division’s analysis also considered the possible competitive effects of the proposed transaction on customers in the United States of LSEG, Refinitiv, and their rivals. Because LSEG and Refinitiv’s rivals would maintain significant bargaining leverage that would make post-transaction price increases unlikely, and because any potential increase in the fees of the combined firm would not likely be passed on to customers, the division concluded the vertical aspects of the transaction would not cause a significant lessening of competition.
With respect to the horizontal aspects of the transaction, the division found that in areas where LSEG and Refinitiv offer similar products, such as financial indexes, that the combination of the companies’ products are unlikely to significantly lessen competition. This analysis was based on a review of LSEG’s and Refinitiv’s products that are similar to each other, an analysis of whether these products actually compete against each other in the United States, and the small changes the transaction would likely cause in post-transaction market concentration for these products based on the companies’ market shares in the United States.
The division considered several theories of harm in its review of the proposed transaction, and concluded that these theories were not supported by the available evidence. For these and other reasons, the division determined that the proposed transaction is unlikely to substantially harm consumers in the United States and therefore closed its investigation.
Six Charged in Transnational Money Laundering Operation Involving Elder FraudRead the Press Release
TYLER, Texas – U.S. Attorney Stephen J. Cox announced today that six individuals have been arrested pursuant to a federal indictment alleging money laundering violations.
“The threat posed by transnational organized crime is continuing to increase,” said U.S. Attorney Stephen J. Cox. “Of particular concern to us is the financial exploitation of older Americans by foreign-based crime rings. These villains are located thousands of miles away, but they can target seniors here at home through believable scams designed to rob them of hard-earned savings. Our district will be relentless in the fight against not only these transnational criminal organizations, but also their extensive networks of associates and money mules laundering the stolen funds. We also plan to develop a new initiative with our law enforcement partners to ramp up our enforcement efforts on this front.”
A federal grand jury returned the two-count indictment on June 18, 2020, charging a money laundering conspiracy and operation of an unlicensed money transmitting business. The individuals charged include:
Jeremy Christopher Jones, 45, of Kansas City, Kansas;
John Arthur Fuss, 69, of Wartrace, Tennessee;
Perry Lewis Crenshaw, Jr., 26, of Pensacola, Florida;
Mary Elizabeth Booth, a/k/a Mary Beaman, 39, of Hammond, Louisiana;
Ronnie Duane Booth, 37, of Hammond, Louisiana; and
Tracey Lynn Brookshier, 51, of Tyler, Texas.
All six defendants were arrested in other districts and then later made court appearances in the Eastern District of Texas. Jones was arrested in the District of Kansas on June 29, 2020, and arraigned on July 29, 2020. Fuss was arrested on July 1, 2020, in the Eastern District of Tennessee and arraigned on July 23, 2020. Crenshaw was arrested in the Northern District of Florida on June 30, 2020, and arraigned on July 21, 2020. Beaman, Booth, and Brookshire were all arrested on July 6, 2020, in the Eastern District of Louisiana and arraigned on July 22, 2020.
According to the indictment, the defendants engaged in a money laundering conspiracy from July 2012 to September 2019. As part of the operation, co-conspirators allegedly employed by call centers fraudulently induced victims, some of whom were located in the Eastern District of Texas, to transfer funds to the defendants and other co-conspirators. These callers allegedly made unsolicited calls to individuals in the United States and employed various schemes that directly targeted or predominantly affected elder victims.
The indictment alleges that the schemes included impersonation of Social Security Administration and IRS/Department of Treasury officials. Callers allegedly claimed that the victim’s Social Security number had been suspended because of suspicious activity and could be reactivated by payment of some amount. Other callers allegedly claimed that victims owed back taxes and were required to satisfy the fictional debt to avoid threatened legal action. Some callers allegedly posed as employees of mortgage companies. Victims, who included borrowers with mortgages backed by the U.S. Department of Housing and Urban Development Federal Housing Administration, were promised lower rates through fictitious loan modifications and, in some instances, threatened with foreclosure if they did not agree to pay for the loan modification.
The indictment further alleges that victims wired funds through money services businesses to locations in the Eastern District of Texas and elsewhere. The indictment charges that the defendants’ money laundering conspiracy involved more than 4,000 victim wire transfers that totaled over $3.2 million. The defendants and co-conspirators receiving these illicit proceeds are alleged to have retained a percentage of the victim funds for their services.
The indictment also charges that the defendants created fictitious companies and then deposited victim funds into bank accounts opened in the names of these fictitious companies. The defendants are alleged to have made cash withdrawals of the fraudulently-obtained money and transferred some of the proceeds to other accounts, some of which were located outside of the United States.
Jvones, Beaman, Booth, and Brookshier were separately charged with operation of an unlicensed money transmitting business in the State of Texas.
“I’m very proud of my IRS service and I take these impersonation scams very personally. I am disgusted by attempts to impersonate IRS employees and steal money from the taxpaying public,” stated Brian Payne, Special Agent in Charge of the Tampa Field Office of IRS Criminal Investigation. “Our office will continue to use the full force of the financial skills of our agents to identify and investigate these impactful crimes with our law enforcement partners in order to improve confidence in the taxpayers’ contacts with the IRS and its public servants.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating IRS employees,” said J. Russell George, the Treasury Inspector General for Tax Administration. “TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
“Creating a scheme that enriches the defendants while defrauding distressed and vulnerable HUD insured borrowers jeopardizes the many legitimate processes in place to protect a person’s mortgage,” said HUD Office of Inspector General, Special Agent in Charge, Nick Nelson. “I want to thank the tireless efforts of our law enforcement partners and the U. S. Attorney’s Office, whose collaboration made these charges possible. The HUD Office of Inspector General will continue to aggressively prosecute these type of cases.”
“As reflected by the indictment, the United States Secret Service in Indianapolis -- along with our federal, state and local partners across America -- remains dedicated to the pursuit and apprehension of those fraudsters who seek to cheat their way to riches by preying upon some of our most vulnerable citizens,” said Eric Reed, Special Agent in Charge of the Indianapolis Field Office. “I commend the excellent work of all the prosecutors and agents who have worked on this matter, and I am especially appreciative of the successful teamwork demonstrated by the many different law enforcement agencies who contributed to this investigation. The Secret Service will continue to prioritize cases that have economic impact to the community and those that involve such ruthless schemes.”
If convicted, the defendants face up to 20 years in federal prison on the money laundering conspiracy charge and up to 5 years on the charge of operating an unlicensed money transmitting business. Any proceeds are also subject to forfeiture.
In October 2017, President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. This past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
This case is being investigated by the Internal Revenue Service – Criminal Investigations, the Treasury Inspector General for Tax Administration, the U.S. Department of Housing and Urban Development Office of Inspector General, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Frank Coan.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rory Jackson, Rachael Gauthier, Jocelyn Pond, Justine Pond, and Sarah Cassell Sentenced for Violations of the Controlled Substances ActRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on July 29, 2020, United States District Judge Christina Reiss sentenced Rory Jackson, 36, of Queens, New York to 18 months in prison for possession with intent to distribute fentanyl, to be followed by five years of supervised release. Before sentencing Jackson, Judge Reiss, earlier this year, also sentenced his co-defendants Rachael Gauthier, of Brattleboro, Vermont; Jocelyn Pond, of West Brattleboro, Vermont; and Justine Pond, of Putney Vermont, all for distribution of fentanyl; and Sarah Cassell, of Brattleboro, Vermont, for distribution of heroin. Gauthier was sentenced to one year and one day in prison. Jocelyn Pond was sentenced to time served. Justine Pond was sentenced to 5 years’ probation, and Sarah Cassell was sentenced to time served.
All five defendants were arrested in connection with the April 10, 2019 search of 48 Central Street in Brattleboro, and as part of a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in the Brattleboro area. The Drug Enforcement Administration and the Vermont Drug Task Force provided crucial investigative assistance in this five-defendant case. In addition, the April 2019 enforcement surge in the Brattleboro area involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Federal Bureau of Investigation; the United States Marshals Service; the Brattleboro Police Department; the Vermont State Police; CBP Air/Marine Unit; and New Hampshire Drug Task Force.
U.S. Attorney Christina E. Nolan commended the inter-agency cooperation underlying this case and the broader Brattleboro enforcement effort. “Our office continues to prioritize the prosecution of trafficking of deadly narcotics in our Vermont communities, and appreciate the hard work of our law enforcement partners.”
The United States was represented in this matter by Assistant U.S. Attorneys Nicole Cate and Nikolas Kerest. Jackson was represented by Richard Bothfeld, Esq. Gauthier was represented by David Watts, Esq. Jocelyn Pond was represented by Katina Ready, Esq. Justine Pond was represented by Thomas Sherrer, Esq. Sarah Cassell was represented by Heather Ross, Esq.
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
Rochester Man Indicted in Multi-Million Dollar Nationwide Ponzi SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Law, age 41, of Rochester, New York, was indicted on July 28, 2020, by a federal grand jury on fraud charges.
According to United States Attorney David J. Freed, the indictment alleges that Law conspired with Perry Santillo and others to defraud investors as part of a Ponzi scheme that netted over $115 million nationwide. Law is charged with conspiracy to commit mail fraud, wire fraud, and bank fraud, and with four counts of mail fraud.
Previously, Perry Santillo pled guilty to felony charges in Rochester and Scranton, and admitted to defrauding investors around the country as part of a Ponzi scheme that included victims in the Middle District of Pennsylvania. Santillo admitted as part of his plea that the scheme took in approximately $115 million in fraudulent investments, and resulted in a total loss to investors of $70.7 million.
Perry Santillo was a founder, member, manager, and CEO of First Nationle Solution, LLC. Law joined Santillo in offering and selling securities in First Nationle, Boyles America, and other issuers to investors. Law also provided investment advice to those same investors.
In fact, First Nationle, Boyles America, and other issuers did not conduct their purported businesses. Rather, Santillo and others working with him operated each business primarily as a Ponzi scheme by issuing securities in the form of promissory notes, soliciting and then misappropriating substantial amounts of investor funds, and using some remaining investor funds to pay off redeeming investors.
As part of the scheme, Santillo and others travelled the country and bought books of business from investment professionals such as registered representatives and investment advisors.
In the Middle District of Pennsylvania, Santillo, Law and those who aided and abetted them purchased a book of business from an investment advisor and conducted their fraud scheme under the guise of an “investment business” located in Scotrun, Monroe County, using various business names, including Advice and Life Group, Poconos Investments, First American Securities, and Financial Planners Group of America.
Santillo and Law, with the help of others, then solicited investors from within those acquired books of business to withdraw money from traditional investments such as annuities, and reinvest the funds in issuers controlled by Santillo and others, including First Nationle, Percipience, and United RL, sometimes without disclosing that Santillo and his confederates controlled those issuers.
Through offering documents, company websites, and in-person pitches, Santillo and his confederates, including Law, falsely indicated that investments would be used to fund legitimate businesses. However, rather than use investors’ funds for purported legitimate business purposes, Santillo and his confederates misappropriated vast amounts of the funds for their personal use and used some of the funds to pay redeeming investors to perpetuate the Ponzi scheme. Santillo, Law, and their associates also misrepresented the ongoing performance – or lack thereof – of investors’ investments. Santillo, Law, and others provided account statements to investors falsely stating that investor funds were invested, falsely stating investment returns, and in some cases falsely stating that a bonus had been credited to investor accounts. In certain instances, Santillo and others provided investors with bonus funds or interest payments, and in other cases Santillo and others provided redeeming investors with all or part of their funds, at times with returns. These were Ponzi payments derived from new investor funds rather than actual investment returns. In other cases, Santillo and others failed to fulfill the requests of investors to redeem their investments.
Among the victim investors defrauded in the Middle District of Pennsylvania was an individual with the initials “JP.” Victim JP first invested $159,000 in First Nationle in September 2015, and invested another $380,000 in June 2016. In 2017, JP also invested twice in United RL, the first an investment of $20,000 and the second $52,000. Santillo and confederates also induced JP to invest $325,000 in a third fraudulent issuer. JP was repaid only $15,000, and was defrauded of the remainder of the $936,000 total investment. The specific charge in the information to which Santillo pled guilty related to a mailing sent in relation to the fraudulent investments JP was sold by Santillo and his confederates.
The case was investigated by the U.S. Federal Bureau of Investigations; the Securities and Exchange Commission; United States Postal Inspection Service; the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud; the New York State Department of Financial Services; and the Harrisburg Police Department, and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni in Scranton, and Assistant United States Attorney John Field in Rochester.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Roanoke Man Faces Life Sentence After Pleading Guilty to Gang-related ChargesRead the Press Release
ROANOKE, VIRGINIA – Trayvone Kasey, a member of the Rollin’ 30s Crips in Roanoke, who conspired with others to commit murder and other gang-related violent crimes, pleaded guilty today in federal court to a plethora of federal crimes as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods effort to reduce gun and violent crime in the Roanoke Valley. United States Attorney Thomas T. Cullen, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division and Samuel Roman Jr., Roanoke Chief of Police made the announcement today following the guilty plea.
Kasey, 21, of Roanoke, was federally indicted in October 2018 on federal racketeering charges, conspiracy to commit murder, and several firearms charges. He pleaded guilty today to federal racketeering, murder in aid of racketeering, conspiracy to committee murder in aid of racketeering, possession of a firearm in furtherance of a crime of violence resulting in death, interference with commerce by robbery, and discharging a firearm and possessing a firearm in furtherance of a crime of violence resulting in death. At sentencing, Kasey faces up to life in prison. A sentencing hearing for Kasey will be scheduled after the trial of the remaining defendants, Sean Denzel Guerrant and DeMonte Rashod Mack.
Kasey and his alleged co-conspirators, Sean Guerrant, Demonte Mack, and Chauncey Levesy, were members and associates of the Rollin’ 30s Crips, which also called itself the “Dirt Gang.” The Rollin’ 30s Crips are a national street gang founded in the greater Los Angeles, California area with smaller sets in other cities throughout the United States. The Roanoke set of the Rollin’ 30s operated primarily in northwest Roanoke, centered in and around the Lansdowne neighborhood.
As part of today’s guilty plea, Kasey admitted that beginning no later than April 22, 2017, he, Guerrant, Mack, and Levesy conspired to conduct a pattern of racketeering activity including multiple threats and acts involving violent crime.
Specifically, between on or about June 14, 2017, and June 15, 2017, Guerrant, Mack, Kasey, and Levesy conspired to murder “Victim D.F.” Court documents further allege that Mack and Kasey murdered “Victim N.L.” at the direction of Guerrant.
Levesy has also pleaded guilty to racketeering and conspiracy to commit murder in aid of racketeering. Levesy will also be sentenced after the trial of Guerrant and Mack.
The investigation of the case was conducted by the City of Roanoke Police Department and the Federal Bureau of Investigation’s Violent Crimes Task Force. The investigation was a coordinated effort that also involved law enforcement assets from the Virginia State Police, Roanoke County Police Department, the Federal Bureau of Alcohol, Tobacco, and Firearms, and the Federal Drug Enforcement Agency.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Eric Allen Harris, of Beverly, West Virginia, was sentenced today to 36 months incarceration for a drug distribution charge, U.S. Attorney Bill Powell announced.
Harris, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2019. Harris admitted to distributing methamphetamine, also known as “ice,” in September 2018 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crime Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge Thomas S. Kleeh presided.
Project Safe Neighborhoods: Charleston Man Sentenced for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a gun crime, according to United States Attorney Mike Stuart. Harry Lee Nguyen, 24, was sentenced to 24 months in prison for being a felon in possession of a firearm.
On January 10, 2020, Nguyen pled guilty to being a felon in possession of a firearm based on his arrest by Charleston Police detectives on August 3, 2019. He admitted that he had a .40 caliber Smith & Wesson handgun in his possession and threw the gun into a yard of a residence on Charleston’s West Side. Nguyen has two prior felony convictions which prohibit him from having a weapon – one on February 1, 2016 for wanton endangerment with a firearm where he twice shot at a woman with a handgun and missed, and another on May 1, 2017 for malicious wounding where he punched and kicked a victim breaking the victim’s nose and ribs.
The Charleston Police Department investigated the case. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Steven Loew handled the prosecution.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00275.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Project Guardian: Two Men Appear in Federal Court on Gun ChargesRead the Press Release
Two felons appeared in federal court this week for gun crimes, according to United States Attorney Mike Stuart.
Shad Michael Knight, 27, of Parkersburg, was sentenced to 60 months in prison for being a felon in possession of a firearm. Knight’s prison sentence will begin following the completion of a sentence that he currently is serving through Wood County Circuit Court, and will be followed by three years of supervised release. Knight previously admitted that on October 21, 2019, he was driving a blue Chevrolet Cruze when it was pulled over in the 1000 block of 29th Street in Parkersburg due to a busted tail light and Knight having a suspended driver’s license. During the traffic stop, a Parkersburg Police Department K-9 responded to the scene and provided a positive indication for the presence of controlled substances within the vehicle. The vehicle was then searched, and officers located a backpack behind the driver’s seat containing a 9mm pistol, two loaded magazines, two boxes of 9mm ammunition, several small plastic bags, and a small amount of methamphetamine. Knight admitted that the firearm was within his possession, that he had placed the firearm in the backpack prior to the traffic stop, and that he knew that he was not permitted to possess firearms under federal law. Knight had previously been convicted of possession of a controlled substance with intent to deliver in Wood County Circuit Court, and was still on parole for that offense when this incident occurred. The Parkersburg Narcotics Task Force, the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
Michael LeRose, 32, of Nitro, pled guilty to being a felon in possession of a firearm. LeRose admitted that on June 9, 2020, law enforcement officers executed a search warrant on his residence. Inside they recovered a .22 caliber rifle, a 5.56 mm caliber semi-automatic rifle, two 9mm handguns, two AM-15 rifle receivers, and a full auto conversion kit for a semi-automatic rifle. They also recovered assorted ammunition, a homemade silencer, marijuana and psychedelic mushrooms. A tactical vest also was found in a separate search of his car. LeRose acknowledged that his addiction to drugs prohibited him from possessing firearms, as he was a user of multiple illegal narcotics. He faces up to 10 years in prison when sentenced on October 27, 2020. The Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00007 (Knight) and Case No. 2:20-cr-00097 (LeRose).
Follow us on Twitter: SDWVNews and USAttyStuart
###
Portland Man Charged in July 28, 2020 Arson at Mark O. Hatfield U.S. CourthouseRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Gabriel Agard-Berryhill, 18, has been charged by criminal complaint with using fire to maliciously damage the Mark O. Hatfield U.S. Courthouse in downtown Portland on July 28, 2020.
“No legitimate protest message is advanced by throwing a large explosive device against a government building. Mr. Agard-Berryhill’s actions could have gravely injured law enforcement officers positioned near the courthouse, other protesters standing nearby, or himself,” said U.S. Attorney Williams. “I applaud the ATF agents and U.S. Marshals Service deputies who worked quickly to identify Mr. Agard-Berryhill before he had an opportunity to hurt others.”
“The violent opportunists engaged in dangerous acts of violence, such as arson, need to realize there will be grave consequences,” said Russel Burger, U.S. Marshal for the District of Oregon. “Serious crimes of this nature go beyond mere property damage to the courthouse and endanger people’s lives.”
According to court documents, at approximately 11:50pm on July 28, 2020, security cameras at the Hatfield Federal Courthouse captured footage of a large incendiary object enter the building’s portico area and land near plywood sheeting affixed to the building’s façade. A few seconds later, the object exploded, igniting a fire near the building’s main entrance. Federal law enforcement personnel collected various items near the site of the explosion and sent them to a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) laboratory for further analysis.
ATF investigators reviewed social media posts from the night of the explosion and located videos of the incendiary object being thrown. The individual depicted throwing the object, later identified to be Agard-Berryhill, was a young, Caucasian male wearing a green colored vest, camouflage pants, and a mask. Investigators observed the person in other protest-related videos posted online wearing the same vest and attempting to hold a shield in front of a naked woman.
Investigators also found a post on Twitter depicting a product review for the vest. The review included a photo of a person wearing the vest who matched the description of the person seen throwing the explosive device. The review states “I got this [vest] for my grandson who’s a protestor [sic] downtown, he uses it every night and says its [sic] does the job.” Investigators later found the same photo on a Facebook page and, using law enforcement databases, were able to positively identify Agard-Berryhill.
Agard-Berryhill made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered released pending further court proceedings. Arson is punishable by up to 20 years in prison with a mandatory minimum sentence of 5 years.
This case is being jointly investigated by ATF and the U.S. Marshals Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Criminal complaints are only accusations of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pineville Man Charged with Forced Labor and Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
ALEXANDRIA, La. – A multiple-count indictment was unsealed today in federal court in Alexandria charging Darnell Fulton, 36, with forced labor, conspiracy, and transportation of a minor with the intent to engage in criminal sexual activity, announced David C. Joseph, United States Attorney for the Western District of Louisiana, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, and FBI’s New Orleans Field Office Special Agent in Charge Bryan A. Vorndran.
The defendant was arrested and taken into federal custody on Tuesday, July 28, 2020, and made his initial appearance in court on July 29, 2020. A detention hearing is scheduled for Friday, July 31, 2020.
According to the allegations set forth in the indictment, the defendant forced three victims, who were his step-children, to provide labor and services in his business by means of force and threats of force by causing the victims to believe that if they did not perform the labor and services, they would suffer serious physical harm.
As part of the conspiracy, the indictment alleges that the defendant subjected the victims to physical violence, sexual abuse, verbal abuse, withholding of food, degradation, intimidation, and psychological manipulation in order to obtain uncompensated labor and services from the victims. As the conspiracy progressed, the defendant took the victims out of school, water-boarded them, and set daily sale quotas. In addition, the indictment alleges that at three times between June 2016 and May 17, 2019, the defendant transported the minors in interstate commerce with the intent that they engage in criminal sexual activity.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Fulton faces a sentence of up to life in prison, as well as mandatory restitution.
The case is being investigated by the Federal Bureau of Investigation, Alexandria Resident Agency, with assistance from the Alexandria Police Department. The case is being prosecuted by Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
# # #
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.
Pineville Man Charged with Forced Labor and Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
Darnell Fulton, 36, was charged today in a multiple count indictment with charges including forced labor, conspiracy, and transportation of a minor with the intent to engage in criminal sexual activity, announced Eric S. Dreiband, Assistant Attorney General for Civil Rights, and David C. Joseph, U.S. Attorney for the Western District of Louisiana.
The defendant was arrested and taken into federal custody on Tuesday, July 28, 2020, and made his initial appearance in court on July 29, 2020. A detention hearing is scheduled for Friday, July 31, 2020.
According to the allegations set forth in the indictment, the defendant forced three victims, who were his step-children, to provide labor and services in his business by means of force and threats of force to the victims and by means of a scheme, plan, and pattern intended to cause the victims to believe that if they did not perform the labor and services, that they and others would suffer serious harm.
According to the indictment, the defendant conspired to do so with others and the conspiracy included forcing the victims to bake and sell brownies to sustain the family. As part of the conspiracy, the indictment alleges that the defendant subjected the victims to physical violence, sexual abuse, verbal abuse, withholding of food, degradation, intimidation, and psychological manipulation in order to obtain uncompensated labor and services from the victims. As the conspiracy progressed, the defendant took the victims out of school, water-boarded them, and set daily sale quotas. In addition, the indictment alleges that at three times between June 2016 and May 17, 2019, the defendant transported, and conspired to transport, a minor, under the age of 18, in interstate commerce, with the intent that the minor engage in criminal sexual activity.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a sentence of up to life in prison, as well as mandatory restitution.
The case is being investigated by the Alexandria office of the FBI, with assistance from the Alexandria Police Department. It is being prosecuted by Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Pine Grove Man Sentenced to 97 Months’ Imprisonment on Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brett Lamar Heinbach, age 38, of Pine Grove, Pennsylvania, was sentenced on July 27, 2020, to 97 months’ imprisonment followed by four years supervised release by United States District Court Judge Robert D. Mariani, for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to United States Attorney David J. Freed, between March 8, 2016 and April 9, 2016, Heinbach conspired with other individuals to distribute methamphetamine throughout Schuylkill County. During the conspiracy, Heinbach possessed multiple firearms, one of which had an obliterated serial number.
The case was investigated by the Pennsylvania State Police, Schuylkill County District Attorney’s Office and Homeland Security and was prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
# # #
Pensacola Man Pleads Guilty to Possessing Firearms at Veterans Affairs FacilityRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, yesterday announced that Pensacola resident Howell E. Camp, 58, pled guilty to carrying a concealed firearm and possession of firearms on federal property, stemming from a May 6 incident at the Department of Veterans Affairs (VA) Joint Ambulatory Care Clinic in Pensacola. Camp admitted that he illegally possessed a 5.56 millimeter Del-Ton Incorporated rifle and a 9 millimeter Smith & Wesson pistol while at the federal facility.
Camp admitted that he became agitated while waiting for a prescription to be filled by the clinic, and left the federal facility to retrieve multiple firearms from his residence. When he returned, Camp approached the clinic doors armed with his rifle, which was loaded with 20 rounds, including one in the chamber. He was stopped at gunpoint by Veterans Affairs Police officers and taken into custody. The officers found a concealed Smith & Wesson pistol in Camp’s waistband.
“Tragedy was averted thanks to the diligence and professionalism of the VA Police officers on duty that day,” said U.S. Attorney Keefe. “We and our law enforcement partners are deeply committed to stopping gun violence and protecting federal facilities and the people who work and visit them. Veterans clinics are there to serve the brave men and women who have given so much to serve our nation, and those officers were truly heroes that day.”
Assistant United States Attorney David L. Goldberg is prosecuting the case following a joint investigation by the United States Department of Veterans Affairs Office of the Inspector General (VA OIG) joined by the Federal Bureau of Investigation and the Florida Department of Law Enforcement (FDLE).
“The VA Police officers on scene deserve the highest praise. They showed tremendous restraint, protected the public, and even protected Howard Camp. Because of their actions, lives were saved,” said Jack Massey, FDLE Pensacola Special Agent in Charge. “FDLE will continue working closely with our federal partners doing all we can to protect our community.”
“Camp’s dangerous actions risked the safety and well-being of veterans and VA employees,” said David Spilker, VA OIG Special Agent in Charge. “VA OIG is steadfast in ensuring that VA facilities remain a safe environment for veterans and their families to seek healthcare services and we will work with our law enforcement partners to hold accountable anyone who attempts to commit acts of violence or intimidation at VA facilities. I commend the swift and heroic actions of the VA Police officers, who prevented a potentially deadly outcome in this case."
Camp faces up to six years’ imprisonment following his guilty plea. As a convicted felon, he will be prohibited from possessing firearms in the future. His sentencing has been scheduled for October 29, 2020 at the United States Courthouse in Pensacola.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Howard CampPennsylvania and Rhode Island Men Charged with Fraud and Identity Theft Offenses in Automobile Warranty SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Larry, age 56, of Clark’s Summit, Pennsylvania, and Jason Pannone, age 39, of North Providence, Rhode Island, were indicted on July 28, 2020, by a federal grand jury on fraud and identity theft offenses.
According to United States Attorney David J. Freed, the indictment alleges that Larry and Pannone, along with other co-conspirators conspired to defraud a Wilkes-Barre based automobile warranty company from approximately January 2014 through October 2018. The conspirators are alleged to have created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company to obtain payment for the nonexistent repairs, with the conspirators splitting the warranty company’s payments between themselves. Larry is alleged to have been a claims adjuster at the warranty company who approved of the fraudulent claims in exchange for kickbacks. Pannone is alleged to have been the owner or employee of three of the garages that submitted fraudulent claims.
Over the course of the conspiracy, the conspirators allegedly obtained in excess of $400,000 in fraudulent proceeds. In addition to the conspiracy charge, Larry and Pannone also are charged with several counts of wire fraud and aggravated identity theft. Larry further is charged with mail fraud and with providing false statements to federal agents during the course of the investigation.
Separately, the United States Attorney’s Office unsealed charges against two other alleged co-conspirators. Herman Cabral, age 61, of Cranston, Rhode Island, was charged in an information with conspiring to commit wire fraud. Cabral allegedly processed false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile repair shop, A Plus Collision Center LLC. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $211,000 in restitution.
Matthew Gershkoff, age 63, of North Providence, Rhode Island, was charged in an information with conspiring to commit wire fraud, and with aggravated identity theft. Gershkoff allegedly prepared and forged false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts. Gershkoff pleaded guilty to the charges on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the fraud offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory, consecutive two-year minimum. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Owner of Chicago Tax Preparation Business Charges with Preparing False ReturnsRead the Press Release
A federal grand jury in Chicago, Illinois, returned a superseding indictment yesterday charging the owner of a tax preparation business with filing tax returns for herself and clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the superseding indictment, Eunice Salley owned and operated Tax Research and Resolution Inc., a tax preparation business located in Chicago, Illinois. From 2016 through 2017, Salley allegedly created false W-2 Forms for clients that reported fake wages and withholdings and then falsified clients’ tax returns accordingly, in order to fraudulently claim refunds. The superseding indictment further alleges that Salley falsified her own 2017 tax return by not reporting all of the income she earned from her business.
In November 2019, Salley was charged in an indictment alleging that from 2010 through 2017, she misrepresented to a pension administrator that her relative was still alive and eligible for pension payments, even though the relative was no longer eligible due to her death in 2009. Salley allegedly used the pension funds her own benefit.
If convicted of the charges in today’s superseding indictment charges, Salley faces a maximum sentence of three years in prison on each count of aiding and assisting in filing a false return and filing a false return. Salley also faces a maximum of 20 years in prison for the pension fraud scheme, as well as five years in prison on each count of pension fraud. She also faces a period of supervised release, restitution, and monetary penalties.
An indictment or superseding indictment merely allege that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Operation LeGend Results in 97 Arrests to Date, Including Five Murder SuspectsRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney Tim Garrison announced today that 97 arrests have been made by local and federal law enforcement officers in less than two weeks since the launch of Operation LeGend.
“This is the impact of a targeted initiative to reduce violent crime, carried out by local and federal law enforcement working together,” Garrison said. “Many of those who were arrested were illegally carrying firearms or illegal drugs. By bringing them to justice, we reduce the level of violence on the street and the threat of crime in our neighborhoods.”
“This is our first detailed report to update the public on the progress against violent crime that has been achieved as a result of Operation LeGend,” Garrison added. “We are striving to maintain as much transparency as possible for an ongoing law enforcement operation. I’ve been communicating with local pastors, community leaders, victims of violent crime, and public officials, and will continue to provide regular updates.”
Among those arrested from July 15 to July 31, new federal charges have been filed against 11 defendants. Nine defendants were charged with illegally possessing firearms, one defendant was charged with drug trafficking, and one defendant was charged with carjacking.
Among the remaining 88 arrests, 49 were fugitives with either state or federal warrants for their arrest. The remaining 39 non-fugitive arrests were referred for prosecution in state court. Five arrests were for homicides. Other offenses cited in the arrests included assault, drug trafficking, illegally possessing firearms, robbery, child molestation, and sexual assault.
In addition to the arrests, agents and officers seized 35 firearms, a total of nearly three kilograms of methamphetamine, hundreds of pills (including oxycontin and ecstasy), heroin, cocaine, crack cocaine, and nearly $40,000 in cash.
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.Ohio man admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cory Davonta Smith, Jr., of Barberton, Ohio, has admitted to his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Smith, also known as “C.J.,” age 27, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Smith admitted to working with others to distribute 50 grams or more of crystal methamphetamine, also known as “ice,” in November 2018 in Gilmer County.
Smith 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nine Individuals Charged for Conspiring to Distribute Fentanyl, Heroin, and Cocaine in Daytona Beach AreaRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of two indictments charging nine individuals involved with drug trafficking organizations operating in Daytona Beach. The first indictment charges Matthew Zachariah Humphrey (25, Daytona Beach) and Janee Reve Najee Kelly (31, Daytona Beach) with conspiracy to distribute fentanyl and with possessing firearms in furtherance of that offense. The second indictment charges Maxwell Garvice Johnson (29, Ormond Beach), Jeremy Rashan Tarrand (39, Mascotte), Robert Lee Hamilton, Jr. (36, Daytona Beach), Dawnte Dequite Benjamin Davis (22, Daytona Beach), Felicia Mae Riley (35, Edgewater), Jeniver Sebastian Scott, Jr. (32, Daytona Beach), and Sharrod Solomon Favors (29, Daytona Beach) with conspiracy to distribute fentanyl, cocaine, and heroin. If convicted, each faces a minimum mandatory term of 5 years, and up to 40 years, in federal prison for each count. Humphrey and Kelly each face an additional 5 years’ imprisonment for possessing firearms in furtherance of the offense. The indictment also notifies each defendant that the United States intends to forfeit traceable proceeds of the offense.
According to the first indictment, beginning on an unknown date, but no later than December 6, 2019, and continuing through July 29, 2020, Humphrey and Kelly conspired with each other and others to distribute controlled substances, including 40 grams or more of a substance containing fentanyl. According to the second indictment, beginning on an unknown date, but no later than April 3, 2020, and continuing through July 29, 2020, Johnson, Tarrand, Hamilton, Davis, Riley, Scott, and Favors conspired to distribute controlled substances, including 40 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams of cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Volusia County Sheriff’s Office, the Daytona Beach Police Department, the Federal Bureau of Investigation, and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dana Hill.
New Jersey Man Sentenced for Holly Hill ArsonRead the Press Release
Columbia, South Carolina ---- United States Attorney Peter M. McCoy, Jr., announced today that Marvin Leroy Smith-Capers, Jr., age 38, of Newark, New Jersey, was sentenced to 92 months in federal prison after pleading guilty to arson. He was also ordered to pay over $700,000 in restitution to the victims: Joy’s Touch of Class, Goldstein’s, and the Super 10. United States District Court Judge Mary Geiger Lewis presided over the hearing.
According to evidence presented to the court, on January 8, 2018, just after midnight, Smith-Capers set fire to Joy’s Touch of Class in downtown Holly Hill after spending much of the previous two hours stealing merchandise from the store. The flames spread to two adjacent businesses, Goldstein’s and the Super 10, causing damage to all three in excess of $700,000.
Holly Hill police officers first noticed suspicious activity when the white GMC Yukon driven by Smith-Capers recklessly pulled into the road opposite their direction of travel. They followed the Yukon, which then accelerated down Railroad Street, ultimately losing control. At the accident scene, officers discovered the overturned Yukon, an ejected and unresponsive Smith-Capers, and merchandise scattered about. This merchandise was traced back to Joy’s.
Smith-Capers was also linked to the scene of the fire through the ankle monitor he was wearing as part of a previous probationary sentence. GPS data tracked Smith-Capers as he moved back and forth between the store and his vehicle as he loaded the Yukon with stolen merchandise.
The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as the Holly Hill Police and Fire Departments, the Orangeburg County Fire District, and the South Carolina Law Enforcement Division (SLED) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
NDTX Round-Up: July 20-26Read the Press Release
SENTENCING – ZODERICK JACKSON
On July 20, Zoderick Jackson, 50, was sentenced to five and a half years for possession with the intent to distribute a cocaine base. Jackson package crack cocaine into eleven small baggies. He met two confidential sources at his home in Greenville, Texas where he sold the bags of crack cocaine. The Drug Enforcement Administration and Hunt Count Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
SENTENCING – HERNAN ORDUNA
On July 22, Hernan Orduna, 25, was sentenced to 46 months for conspiracy to acquire a firearm from a licensed dealer by a false and fictitious statement. On two separate occasions, Orduna purchased a 9mm Glock and a Ruger AR556 from an Irving, Texas licensed firearms dealer by falsely answering the ATF’s Firearms Transaction Record. Following the sale of the firearms, Orduna transferred the firearms to a 17-year drug dealer. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irving Police Department conducted this investigation. Assistant U.S. Attorney Walt Junker is prosecuting the case.
SENTENCING – CARLOS ACOSTA-ENRIQUEZ
On July 24, Carlos Acosta-Enriquez, 35, was sentenced to six and a half years for conspiracy to possess with the intent to distribute cocaine. Texas Department of Public Safety troopers stopped Aocsta-Enriquez for a traffic related violation. During the stop, officers searched Aocsta-Enriquez’s vehicle and located six-kilograms of cocaine inside the car. Federal agents also searched Aocsta-Enriquez’s home and recovered $18,604.00 in drug proceeds, digital scales, and a drug ledger. The Drug Enforcement Administration conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
CHARGED – OSWALD AGUILERA-ADAME, JUAN JOSE CAMACHO, & MIGUEL ANGEL MARTINEZ-SERGURA*
On July 21, a federal grand jury indicted Oswald Aguilera-Adame, 28, Juan Jose Camacho, 35, and Migel Angel Martinez-Sergura, 53, for conspiracy to possess with the intent to distribute a controlled substance, possessing a firearm in furtherance of drug trafficking, and aiding and abetting possession with the intent to distribute. The defendants allegedly trafficked 500 or more grams of methamphetamine throughout the Northern District. During the defendants’ arrest, law enforcement seized a .380 caliber firearm and approximately $180,000 of drug proceeds. The defendants face up to life years in federal prison. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Kull.
CHARGED – DEVIONN HOLMES*
On July 21, a federal grand jury indicted Devionn Holmes, 24, for bank robbery. Holmes allegedly robbed a bank in Carrollton a by force and intimidation while in the presence of bank employees. The defendant face up to 20 years in federal prison. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joe Magliolo.
*All defendants are presumed innocent unless and until proven guilty in a court of law.
Montgomery County Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
FRANKFORT, Ky.- A Montgomery County, Ky., man, Scotty Allen Jones, 48, pleaded guilty yesterday, before U.S. District Judge Gregory Van Tatenhove, to distributing a fentanyl and heroin mixture, possessing 10 grams of acetylfentanyl with intent to distribute, possessing a firearm in furtherance of drug trafficking, and being a felon in possession of firearms.
As part of his plea agreement, Jones admitted that in September 2018 he sold quantities of heroin and fentanyl mixtures to a confidential informant who was working with law enforcement. During one of the drug transactions, Jones admitted to possessing a firearm for the purpose of furthering his drug trafficking
Jones also admitted in his plea agreement to pawning at least two firearms at a local pawn shop in Mt. Sterling, Kentucky, in February 2019. Jones has prior felony convictions for drug trafficking and burglary, and was prohibited from possessing firearms.
In March 2019, officers with the Kentucky Department of Fish and Wildlife attempted to arrest Jones on several outstanding warrants while Jones was at a gas station in Jeffersonville, Kentucky. Jones fled from the officers, and after both a vehicle and short foot pursuit, Jones was apprehended. Upon his arrest, Jones was found in possession of 10 grams of acetylfentanyl, a Schedule I controlled substance. As part of his plea agreement, Jones admitted that intended to distribute the acetylfentanyl in his possession.
Jones also admitted in his plea agreement to possessing eight firearms discovered by law enforcement during a search of barn in Jeffersonville, Kentucky, in April 2019.
Jones was indicted in July 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; and Colonel Eric Gibson, Law Enforcement Director, Kentucky Department of Fish and Wildlife jointly announced the guilty plea.
The investigation was conducted by ATF, KSP, and the KY Dept. of Fish and Wildlife. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
Jones is scheduled to be sentenced on December 10. He faces a minimum sentence of at least 10 years (5 years minimum on the possession with intent to distribute acetylfentanyl charge, and 5 years consecutive for the possession of firearm in furtherance of drug trafficking charge), and maximum sentence of up to life imprisonment for the commission of these offenses. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
— END —
Mobile-Area Doctor Charged in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – A Mobile-area Alabama doctor was indicted on Tuesday in a long-running investigation into a prescription drug-billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Special Agent in Charge James E. Dorsey announced the charges.
An 11-count indictment charges Dr. Michelle Martine Jackson, 53, of Fairhope, Alabama, with a conspiracy to receive kickbacks, a conspiracy to commit health care fraud and mail fraud, health care fraud, and aggravated identity theft. According to the indictment, Dr. Jackson, who worked out of two clinics in Mobile, Alabama, received kickbacks in exchange for issuing medically unnecessary compounded drug and other prescriptions to be filled by Global Compounding Pharmacy. Dr. Jackson issued medically unnecessary prescriptions to a Global employee Bonita Amonett, and her family and friends, to individuals with whom Jackson did not have a doctor-patient relationship, and to individuals with whom she had a doctor-patient relationship, but who did not need the drugs in question. Ms. Amonett paid the kickbacks in the form of cash and free offices services to Dr. Jackson and a nurse practitioner, Brandy Lunsford. According to court documents, both Ms. Amonett and Ms. Lunsford previously entered guilty pleas to paying and receiving kickbacks and health care fraud.
Dr. Jackson’s indictment brings the total number of individuals who have been charged in this long-running investigation to 30, 24 of whom have previously entered guilty pleas. Those who have previously pled guilty include two nurse practitioners and various Global employees, including its CEO, COO, a vice president of sales, an operations manager, a district manager, and multiple sales representatives.
The maximum punishment for the 18 U.S.C. § 371 kickback conspiracy is 5 years in prison and a $250,000 fine. The maximum punishment for the 18 U.S.C. § 1349 health care and mail fraud conspiracy charge is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The minimum and maximum penalty for the 18 U.S.C. § 1028A aggravated identity theft charge is 2 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, IRS-CI, and a United States Attorney’s Office investigator investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long, and Edward Canter are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Missouri Man Charged with ForgeryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that MATTHEW CUOMO, aged 55, has been charged by a Bill of Information with Forgery on July 30, 2020, in violation of Title 18, United States Code, Section 513. If convicted of this crime, CUOMO will face a maximum sentence of ten years in the Bureau of Prisons, three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
CUOMO was the former president of a local labor union for employees of the Transportation Security Administration (TSA) working at multiple airports in Louisiana and Mississippi. An audit in 2017 revealed that union funds were missing, and an investigation allegedly revealed that CUOMO had been forging checks from the union’s bank account and using union funds for personal expenses. CUOMO forged 50 checks, resulting in a loss amount of approximately $15,000.
U. S. Attorney Strasser praised the work of the United States Department of Labor and the Transportation Security Administration for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
Minnesota Man Sentenced to 3 Years for Robbing River Falls BusinessRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Larry Darnell Armstrong, 50, Minneapolis, Minnesota, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in federal prison for committing a robbery of a business located in River Falls, Wisconsin. The parties jointly recommended the three-year prison sentence.
On June 13, 2019, Pierce County, Wisconsin dispatch received a 911 call regarding an armed robbery at North Town Cleaners in River Falls. Responding officers met with an employee of North Town Cleaners who stated that she was working at the counter when two men entered the store. The larger of the two men, later identified as Larry Armstrong, approached the counter and stated that he needed some buttons sewn on a coat. Armstrong gave the employee the coat and several buttons, and gave his last name as Johnson. During that time, the smaller of the two men was at the soda machine.
According to the employee, Armstrong asked for change for a $20 bill. The employee went to the safe to deposit the $20 and make change, and as she was starting to close the safe, the other man pointed a black handgun at her and demanded money. The employee gave him a black bank bag, and he reached into the safe and grabbed a box of quarters. Both Armstrong and the other man ran out of the business.
Armstrong was identified after the buttons were submitted to the Wisconsin State Crime laboratory in Madison and a DNA profile taken from the buttons matched the DNA profile of Armstrong that was on file. Law enforcement officers then obtained driver’s license information for Armstrong and he matched the description of the robber. Law enforcement officers also ran Armstrong’s criminal history, which revealed that he has used different aliases, including “Shelly A. Johnson.” Finally, Armstrong’s cell phone was in River Falls on June 13, 2019, during the North Town Cleaners robbery. Later that same day, the phone was in the area of Armstrong’s residence in Minneapolis.
To date, Armstrong’s accomplice has not been identified.
The charge against Armstrong was the result of an investigation conducted by the River Falls Police Department and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Man from Rayne Sentenced for Transporting Illegally Killed Endangered Whooping CraneRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Kaenon A. Constantin, 28, was sentenced on July 30, 2020, to five years of probation for killing and transporting a federally protected and endangered whooping crane. During his period of probation, Constantin must complete 360 hours of community service related to wildlife conservation. As part of the sentence, Constantin’s hunting privileges have been suspended until he completes the community service. United States Magistrate Judge Hanna also ordered Constantin to pay a $10,000 fine and to pay $75,000 in restitution to the Louisiana Department of Wildlife and Fisheries (LDWF).
In November 2019, Constantin was named in a federal bill of information for violating the Lacey Act in May 2016. Specifically, on May 20, 2016, Constantin and a juvenile, using .22 caliber rifles, shot at a pair of whooping cranes located in a field within Acadia Parish, Louisiana. One of the cranes, identified as L5-15, fell dead in the field, and Constantin and his accomplice retrieved its carcass. The other crane, identified as L3-15, flew too far north into another field so that it could not be retrieved, but investigators later recovered its carcass.
After retrieving L5-15’s carcass, they noticed that it had transponders on its legs and received information that the bird was a whooping crane. Constantin and the juvenile transported the carcass to the juvenile’s residence, where they severed the legs from L5-15’s carcass by using a knife and removed the transponders. They then transported the knife, carcass, severed legs, and transponders along a nearby road and discarded the evidence. When initially approached by investigators shortly after the crime, Constantin lied about his involvement, causing the investigation to continue for nearly two more years before he finally confessed in April 2018.
The Lacey Act is a comprehensive federal law that protects against wildlife crimes, such as international and domestic wildlife trafficking. The Act prohibits, among other actions, a person from knowingly transporting wildlife, when in the exercise of due care the person should have known that the wildlife was taken or possessed in violation of, or in a manner unlawful under, any underlying law, treaty, or regulation of the United States. Whooping cranes are a federally protected species under federal laws and regulations, including the Endangered Species Act. They are large birds, standing nearly five feet tall and with wingspans of 7.5 feet.
United States Fish and Wildlife Service Acting Special Agent in Charge Stephen Clark stated, “We take our mission partnering with the Louisiana Department of Wildlife and Fisheries in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. The U.S. Fish and Wildlife Service, Office of Law Enforcement, considers the illegal taking of protected wildlife species a high priority, and we will continue to work closely with our state agencies to assist them in these important joint investigations."
“Our agents take any investigation of illegally shooting whooping cranes very seriously. Chief of LDWF Enforcement Col. Chad Hebert and I applaud the judge in this case for imposing severe monetary punishments to help deter anyone from this behavior,” said LDWF Secretary Jack Montoucet. “The Louisiana Department of Wildlife and Fisheries has spent a lot of resources in an effort to bring back the native whooping crane to a sustainable population, and senseless shootings like this case make that mission much more problematic.”
The United States Fish & Wildlife Service and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Danny Siefker prosecuted the case.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man Who Illegally Possessed a Gun Used to Shoot and Kill Another Sentenced to Maximum Possible SentenceRead the Press Release
A man who shot another man in Waterloo was sentenced today to 15 years in federal prison.
Alberto Quinto-Pascual, age 37, from Waterloo, Iowa, received the prison term after a January 28, 2020, guilty plea to being a drug user in possession of a firearm and possession of a firearm with an obliterated serial number.
Evidence at sentencing showed that on May 10, 2019, Quinto-Pascual met with a man at a bar in Waterloo. The two men left the bar and went to a house in Waterloo where Quinto-Pascual had been staying. While at the house, Quinto-Pascual retrieved a revolver he kept at the house and shot the victim in the head. Quinto-Pascual then wiped down the firearm, left the house, and hid the firearm behind a car in a nearby alley. Quinto-Pascual then went to a different house he also stayed at and, after nearly twenty minutes, called 911 to report the shooting. Quinto-Pascual told police that the victim had shot himself. Officers located the victim and transported him to a hospital. The victim eventually passed away from the injuries. During the sentencing, the court concluded that given the circumstances of the killing, Quinto-Pascual committed second-degree murder.
Quinto-Pascual was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Quinto-Pascual was sentenced to 180 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
"Quinto-Pascual killed a man with a gun he illegally possessed,” said United States Attorney Peter Deegan. “Through Project Guardian and Project Safe Neighborhoods, we will continue to work with our law enforcement partners to prosecute the most dangerous individuals in our community.”
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Quinto-Pascual is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2042.
Follow us on Twitter @USAO_NDIA.
Man Stopped at Fort Bragg Gate Pled Guilty for Gun Possession in Furtherance of Drug TraffickingRead the Press Release
WILMINGTON, N.C. – A man who was stopped at a gate for Fort Bragg pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute marijuana.
According to court documents, Matthew Earl Carlton, 30, drove a blue Mercedes coupe to a gate at Ft. Bragg Military Installation at 2:00am on May 14, 2020. Carlton’s car was searched after he did not have a driver’s license or military identification. A loaded Ruger P85 nine millimeter handgun with an extended magazine and a bullet in the chamber was found under the driver’s seat. In addition, approximately 162 grams of marijuana, a digital scale, packing materials, and $2,208 in cash were also found in the car. At the time of this incident, Carlton was on parole from the State of New York for First Degree Robbery and Criminal Possession of a Weapon.
Carlton pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), and one count of possession with the intent to distribute marijuana in violation of Title 21, United States Code, Section 841(a)(1) and faces a mandatory minimum penalty of 60 months in prison when sentenced at the court’s November 3, 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Richard E. Myers II accepted the plea. U.S. Army Military Police and Criminal Investigative Division investigated the case and Assistant U.S. Attorney Brad DeVoe is prosecuting the case with support from Special Assistant U.S. Attorney Antonino Monea.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-308.
###
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.
Man Admits Robbing Banks in East Haven and Windsor Locks While on Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GARY W. BORNMAN, 58, of New Haven, waived his right to be indicted and pleaded guilty today to two counts of bank robbery and admitted that he violated the conditions of his supervised release from a prior federal case.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the guilty plea proceeding occurred via videoconference.
According to court documents and statements made in court, on October 29, 2019, Bornman drove a female accomplice to the Citizens Bank located at 430 Foxon Boulevard in East Haven. While Bornman waited outside, his accomplice entered the bank wearing a disguise and a red wig, approached a teller, and demanded money. The teller handed over approximately $1,003.
On January 27, 2020, Bornman drove a male accomplice to the People’s United Bank located at 20 Main Street in Windsor Locks. While Bornman waited outside, his accomplice entered the bank, approached a teller and showed a note demanding money. The teller hand over approximately $1,056. Bornman’s car was captured on surveillance video from a nearby business.
In June 2001, Bornman was sentenced in Hartford federal court to 235 months of imprisonment, followed by five years of supervised release, for bank robbery and firearm possession offenses. He was released from prison in October 2018.
Bornman has been detained since February 12, 2020, when he was arrested for violating his supervised release.
Bornman is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 27, 2020, at which time he faces a maximum term of imprisonment of 40 years on the bank robbery offenses, and additional penalties for violating the conditions of his supervised release.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Marshals Service, East Haven Police Department and Windsor Locks Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Malware Author Pleads Guilty for Role in Transnational Cybercrime Organization Responsible for more than $568 Million in LossesRead the Press Release
An author of malicious computer software and a member of the Infraud Organization pleaded guilty today to RICO conspiracy, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Valerian Chiochiu, aka “Onassis,” “Flagler,” “Socrate,” and “Eclessiastes,” 30, pleaded guilty before U.S. District Court Judge James C. Mahan in the District of Nevada. Chiochiu is a national of the Republic of Moldova, but resided in the United States during the period of the conspiracy. His plea came just over a month after the co-founder and administrator of Infraud, Sergey Medvedev of Russia, separately pleaded guilty on June 26. Sentencing for Chiochiu has been scheduled for Dec. 11.
Infraud was an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
“Over the course of seven years, Infraud and its alleged conspirators created a sophisticated cybercriminal racketeering scheme that victimized individuals, merchants, and financial institutions to the tune of over half a billion dollars in losses,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Justice Department is committed to unmasking cyber criminals and their criminal organizations that use the internet for fraudulent schemes.”
“HSI and our partners are at the forefront of combating financial crimes and illicit activities spread on the Internet,” said Special Agent in Charge Francisco Burrola for the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Las Vegas Office. “While criminal operators may continue to grow the reach of their criminal activity, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
According to the indictment, the Infraud Organization was created in October 2010 by Medvedev and Svyatoslav Bondarenko, aka “Obnon,” “Rector,” and “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for “carding” —purchasing retail items with counterfeit or stolen credit card information — on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members. In March 2017, there were 10,901 registered members of the Infraud Organization.
Bondarenko currently remains a fugitive.
According to the indictment, Chiochiu provided guidance to other Infraud members on the development, deployment, and use of malware as a means of harvesting stolen data. As part of his plea agreement, Chiochiu admitted to authoring a strain of malware known to the computer security community as “FastPOS”.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $568 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The investigation was conducted by the Las Vegas Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Henderson, Nevada Police Department. The U.S. Attorney’s Office for the Central District of California also provided assistance with Chiochiu’s case. Deputy Chief Kelly Pearson and Trial Attorneys Chad W. McHenry and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lehigh University Agrees to Pay $200,000 Settlement to Resolve False Claims Act Allegations Arising from Convicted Professor’s Grant FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lehigh University in Bethlehem, Pennsylvania, has agreed to pay $200,000 and abide by compliance requirements in connection with any application seeking federal grant funds or cooperative agreements with any federal agency. The settlement agreement resolves allegations under the False Claims Act relating to Small Business Innovation Research (“SBIR”) grants awarded to ArkLight, a company owned by Dr. Yujie Ding, a former Lehigh University professor.
The Small Business Innovation Research program is a competitive program that encourages American small businesses to engage in research on behalf of the federal government that has the potential for commercialization. Although small businesses may subcontract a portion of the work to other entities, including universities, the small business itself must perform a majority of the work under the program.
Between 2004 and 2013, Lehigh University employed Dr. Yujie Ding, first as an Associate Professor and then as a Professor. During that time, Ding used a sole proprietorship he created called ArkLight to apply for SBIR program research grants funded by the National Aeronautics and Space Administration (“NASA”), the United States Department of the Army, the United States Air Force, and the National Science Foundation (“NSF”). ArkLight received grants totaling $2,740,000.
In each proposal, Yuliya Zotova, Ding’s wife, was listed as ArkLight’s principal investigator, the person designated to lead the scientific and technical effort. Under applicable program rules, Professor Ding was not eligible to serve as the principal investigator. The proposals represented that ArkLight would do a majority of the work under the leadership of Zotova. Lehigh University agreed to act as a subcontractor on some of ArkLight’s grants.
Under the applicant programs, ArkLight was to complete a majority of the research work. In reality, and unbeknownst to Lehigh University, none of the work was completed by ArkLight. Instead, all of the work was done by graduate students and others working in Ding’s university laboratory, under Ding’s supervision. The United States contends that, at the time, Lehigh University had an inadequate compliance program in place to detect and prevent Ding’s fraud. Although the work was done at Lehigh University, the University was ineligible for payment because there was no small business serving as the primary contractor. As the nominal subcontractor, Lehigh was paid over $1 million.
Ding and Zotova were criminally were charged by Indictment by the U.S. Attorney’s Office for the Eastern District of Pennsylvania. That indictment was unsealed on February 5, 2015, and on November 12, 2015, a jury returned guilty verdicts against Ding and Zotova on six counts of wire fraud. Ding was sentenced to a year and a day in prison for his role in the fraud. He was also ordered to pay a fine of $3,000 and restitution of $72,000. Zotova, was sentenced to 3 months in prison, along with a fine and restitution. Lehigh University cooperated in the criminal investigation and trial of Ding and Zotova by responding to subpoenas and making witnesses available for interviews.
“Institutions that receive research funding from the federal government must be rigorous in rooting out fraud.” said U.S. Attorney McSwain. “While it did not detect the problems itself, Lehigh University, to its credit, did take proactive steps to improve its existing compliance program once it learned that one of its employees had committed fraud. We value Lehigh University’s research contributions and hope that the enhanced compliance measures will have a positive impact in the future. We also appreciate the University’s cooperation in the criminal prosecutions of Ding and Zotova.”
“The success of SBIR programs often lies with small business awardees, and its subcontractors, being good stewards of taxpayers’ dollars when conducting Federal Research. The NASA Office of Inspector General (OIG), along with its law enforcement partners, will continue to aggressively investigate those individuals and entities that take advantage of the trust of the American taxpayers,” stated Special Agent-in-Charge, Mark. J. Zielinski, Eastern Field Office, NASA OIG.
“Ensuring the integrity of the Air and Space Forces’ research and development process is a top investigative priority of the Air Force Office of Special Investigations (OSI). Those who seek to conduct business with the Department of the Air Force must be candid and truthful. OSI will aggressively investigate those who attempt to defraud the Air Force and will work with our law enforcement partners to identify and prosecute those who would take advantage of the Air and Space force and their interests. I’d like to thank Lehigh University for their cooperation in the investigation,” said Special Agent in Charge Jason T. Hein, OSI, Office of Procurement Fraud Investigations Detachment 6.
“The settlement agreement announced today is the result of joint investigative effort to protect Small Business Innovative Research contracts from fraud and abuse," stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The DCIS is committed to working with its law enforcement partners and the U.S. Attorney’s Office to ensure the integrity of federal research and development procurement programs, such as SBIRs. Of note, in addition to entering into this civil settlement agreement, Lehigh University provided assistance in a related criminal investigation of a former Lehigh professor and his spouse who defrauded the SBIR program.”
Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses compete for federal research and development awards, which have enhanced the nation’s defense. “The proactive efforts of agencies like NASA, the Air Force, the DCIS, and the NSF are critical to identifying potential fraud and safeguarding limited government resources,” said U.S. Attorney McSwain.
The investigation was conducted by NASA, the Air Force, the DCIS, and the NSF. The civil case is being handled by Assistant U.S. Attorney Veronica J. Finkelstein.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Kanawha County Woman Indicted for Fraud SchemeRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced that a federal grand jury has indicted a Kanawha County woman in connection with an elaborate fraud scheme. A five-count indictment charged Holly Urlahs, also known as Holly Anderson, 32, of Elkview, with bank fraud, mail fraud, forging the signature of a judge and two counts of aggravated identity theft.
The indictment alleges that Urlahs falsely claimed to have sued Charleston Area Medical Center (CAMC) and was expecting a large financial settlement from her lawsuit. Under these false pretenses, she set out to defraud financial institutions and an insurance company. According to the indictment, as part of her fraudulent scheme, Urlahs altered a $100 cashier’s check to reflect an amount over $8.4 million. The indictment also alleges that Urlahs provided fake documents with forged signatures and a personal check for $1 million, although she knew she did not have sufficient funds in her account, to an insurance company to obtain an annuity contract. Urlahs’ check was returned for insufficient funds.
“The allegations contained in this indictment are very serious,” said United States Attorney Mike Stuart. “I commend the work of the investigators in this case – they were able to unravel the defendant’s elaborate fraud scheme.”
The investigation was conducted by the West Virginia State Police-Bureau of Criminal Investigations and the West Virginia Insurance Commissioner’s Special Investigations Division. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
If convicted on all counts, Urlahs faces up to 55 years in prison.
Please Note: 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.
Follow us on Twitter: SDWVNews and USAttyStuart
###
KC Felon Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was charged in federal court today for illegally possessing a firearm that was found in his vehicle along with his infant son.
Gary Dorch, 26, was charged with one count of being a felon in possession of a firearm in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
This Glock pistol and high capacity magazine were seized by federal agents.Today’s complaint alleges that Dorch was in possession of a Glock .40-caliber pistol on Monday, July 27.
According to an affidavit filed in support of today’s criminal complaint, Dorch was wanted on a federal warrant for violating the terms of his supervised release. Dorch was on federal supervised release following his incarceration for illegally possessing a firearm. Dorch participated in an armed robbery of a Public Storage business in December 2013 and was the passenger in a vehicle that attempted to flee from police officers after the robbery, until it caused a collision with another vehicle. Dorch was released from prison in October 2019 after serving a five-year sentence.
Federal agents saw Dorch and his girlfriend, in separate cars, drive into the Avis Car Rental parking lot at 3412 Main St., Kansas City, Mo., on Monday, July 27. Dorch, who was driving a Nissan Altima, stayed in his vehicle while his girlfriend parked her car and went inside the business.
Deputies from the U.S. Marshals Service and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives approached the Nissan to arrest Dorch on the outstanding warrant. During the arrest, they saw the loaded Glock pistol on the driver’s side floorboard. Dorch was the only adult occupant of the vehicle; his 18-month-old son was in the back seat.
Agents also searched the Toyota Corolla that Dorch’s girlfriend was returning to Avis. They found a high capacity drum magazine with 33 rounds of .40-caliber ammunition in the glove box of the Toyota.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dorch has a prior federal felony conviction for possessing a firearm in furtherance of a crime of violence.
The charge contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charge 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 Joseph M. Marquez. It was investigated by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 Reaches Settlement with Toledo Public Schools to Resolve Complaints of Race and Disability Discrimination in Student DisciplineRead the Press Release
The Department of Justice’s Civil Rights Division and the United States Attorney’s Office for the Northern District of Ohio announced today a settlement agreement with the Toledo Public Schools to address and prevent discriminatory discipline of students based on race or disability and to require appropriate language services for limited English proficient (LEP) parents on matters essential to their children’s education.
The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of African-American students and students with disabilities in school suspensions, expulsions, and referrals to law enforcement agencies. The Department also investigated allegations concerning the district’s communications with parents and guardians with language barriers. The school district cooperated fully throughout the investigation, which was conducted under Title IV of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.
“Discrimination against students because of their race or disability has no place in our country’s public schools,” said Assistant Attorney General Eric Dreiband. “A student’s race or disability should never mean receiving harsher punishment in school. Such practices are unfair and unlawful, and they deny students equal access to the educational opportunities that are critical to success in school and beyond. We look forward to continuing to work with the Toledo Public Schools to implement this settlement and fulfill its promise of equal treatment for all of the district’s students.”
“Federal law does not allow schools to discipline students because of their race or disability or to deny access to essential school-related information to parents and guardians with language barriers,” said Justin Herdman, the U.S. Attorney for the Northern District of Ohio. “We applaud the district for its cooperation during our investigation and for its commitment to ensure that students are not denied learning opportunities because of their race, disability, or national origin. We look forward to working cooperatively with Toledo Public Schools to implement this agreement, as the district puts in place behavioral supports and services to increase opportunities for student learning.”
Under the settlement agreement, the district will take proactive steps to ensure its discipline practices do not discriminate against students based on race or disability. The district will, among other things, regularly review how schools handle discipline incidents to ensure non-discriminatory treatment, expand its use of positive behavior supports, and provide appropriate training and resources to help schools implement the agreement, including training for teachers, administrators, and school safety officers. In addition, for parents and guardians with language barriers, the district will ensure it communicates essential school-related information in a language that they understand so their children can access the district’s instructional programs.
This month marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools, Title IV of the Civil Rights Act, and the Equal Educational Opportunities Act are top priorities of the Civil Rights Division of the Justice Department.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/
Click here to view the agreement.Justice Department Reaches Settlement with Toledo Public Schools to Resolve Complaints of Race and Disability Discrimination in Student DisciplineRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Ohio today announced a settlement agreement with the Toledo Public Schools to address and prevent discriminatory discipline of students based on race or disability and to require appropriate language services for limited English proficient (LEP) parents on matters essential to their children’s education.
The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of African-American students and students with disabilities in school suspensions, expulsions, and referrals to law enforcement agencies. The department also investigated allegations concerning the district’s communications with parents and guardians with language barriers. The school district cooperated fully throughout the investigation, which was conducted under Title IV of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.
“Discrimination against students because of their race or disability has no place in our country’s public schools,” said Assistant Attorney General Eric Dreiband. “A student’s race or disability should never mean receiving harsher punishment in school. Such practices are unfair and unlawful, and they deny students equal access to the educational opportunities that are critical to success in school and beyond. We look forward to continuing to work with the Toledo Public Schools to implement this settlement and fulfill its promise of equal treatment for all of the district’s students.”
“Federal law does not allow schools to discipline students because of their race or disability or to deny access to essential school-related information to parents and guardians with language barriers,” said Justin Herdman, the U.S. Attorney for the Northern District of Ohio. “We applaud the district for its cooperation during our investigation and for its commitment to ensure that students are not denied learning opportunities because of their race, disability, or national origin. We look forward to working cooperatively with Toledo Public Schools to implement this agreement, as the district puts in place behavioral supports and services to increase opportunities for student learning.”
Under the settlement agreement, the district will take proactive steps to ensure its discipline practices do not discriminate against students based on race or disability. The district will, among other things, regularly review how schools handle discipline incidents to ensure non-discriminatory treatment, expand its use of positive behavior supports, and provide appropriate training and resources to help schools implement the agreement, including training for teachers, administrators, and school safety officers. In addition, for parents and guardians with language barriers, the district will ensure it communicates essential school-related information in a language that they understand so their children can access the district’s instructional programs.
This month marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools, Title IV of the Civil Rights Act, and the Equal Educational Opportunities Act are top priorities of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Jury Finds Eagle Butte Man Guilty on Multiple ChargesRead the Press Release
United States Attorney Ron Parsons announced that Dustin Red Legs age 41, of Eagle Butte, South Dakota, was found guilty of Aggravated Sexual Abuse of a Child, Sexual Exploitation of Child, and Possession of Child Pornography as a result of a federal jury trial in Pierre, South Dakota.
The charges carry a mandatory minimum penalty of 30 years, with a maximum penalty of up to life in federal prison and/or a $750,000 fine, up to life of supervised release, a $300 special assessment to the Federal Crime Victims Fund, and a $5,000 assessment to the Domestic Trafficking Fund.
Red Legs was indicted by a federal grand jury on May 14, 2019.
On September 24, 2018, Red Legs was staying at a home in Eagle Butte. He went into a room where two children were sleeping, sexually assaulted a 10-year-old girl, and also took sexually explicit photographs of the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 26, 2020. The defendant was remanded to the custody of the U.S. Marshals Service.
Joint Statement by the U.S. Equal Employment Opportunity Commission, Department of Justice, and Department of Labor Commemorating the 30th Anniversary of the Americans with Disabilities Act and its Impact on the American WorkforceRead the Press Release
July 26, 2020, marked the 30th anniversary of the enactment of the Americans with Disabilities Act (ADA). This landmark civil rights law protects access and opportunity for people with disabilities across community life, including employment.
By ensuring that everyone has an equal opportunity to work, free from discrimination based on disability, the ADA is an affirmation of our nation’s founding ideals and a cornerstone of our efforts to ensure a fully inclusive American workforce and economy.
As we recognize this important milestone, the U.S. Equal Employment Opportunity Commission (EEOC), Department of Justice (DOJ), and Department of Labor (DOL) pay tribute to the ADA’s indelible impact and how it has promoted economic self-sufficiency for individuals with disabilities.
The ADA is about equal opportunity. By safeguarding equal rights for qualified job applicants and employees with disabilities, the ADA ensures that more Americans have equal opportunity to thrive in fulfilling jobs that grow our economy.
To help employers and individuals with disabilities achieve these goals, the EEOC has an extensive program of ADA outreach, and also proactively works to resolve ADA complaints. EEOC’s mediation program is instrumental to this effort. It helps parties reach mutually agreed upon, enforceable resolutions to charges of disability discrimination. Examples of such resolutions include an employer who, after initially rejecting a deaf applicant, hired him and provided an American Sign Language interpreter for trainings, meetings, and performance evaluations; a business that agreed to accommodate an employee with an eating disorder by allowing her to take a longer lunch break; and a public school that reassigned a bus driver to a new position as a teacher’s aide when she could no longer drive due to epilepsy.
Conciliation is another way the EEOC advances the ADA’s goals. Parties who participate in conciliation’s voluntary process can resolve charges efficiently. In many cases, these agreements help spur broader changes that benefit many individuals for years to come. For instance, last year, a nationwide business voluntarily agreed to alter its online application process so that questions actually pertained to the job at hand. This business also agreed to highlight the company’s commitment to providing accommodations to both applicants and employees.
The ADA is about freedom from discrimination. DOJ’s Civil Rights Division collaborates closely with the EEOC to enforce the ADA’s prohibitions on discrimination in employment by state and local governments. By ensuring that people with disabilities have an equal opportunity to become and remain employed, DOJ helps individuals with disabilities to obtain economic self-sufficiency, their own piece of the American dream, and much more. In so doing, DOJ helps make the ADA’s promise of equal employment opportunity a reality for Americans with disabilities across the country.
Through its enforcement efforts, DOJ works to ensure that people with disabilities are judged for their skills and what they are able to contribute, rather than having their employment opportunities limited by stereotypes and assumptions about their disability. For example, DOJ recently settled a case involving a Georgia paramedic, who also worked part-time as an emergency medical technician teaching assistant at a technical college, after the college unlawfully terminated her because she had multiple sclerosis. Similarly, DOJ obtained relief for an applicant for an elevator/escalator parts supervisor position whose job offer was withdrawn after the employer learned the applicant had epilepsy. And DOJ successfully resolved a claim for an individual with dwarfism who was unlawfully screened out from applying for a job as a purchasing manager because of his disability, even though he was qualified for the position.
Through its efforts to prevent and redress discrimination against people with disabilities in the workplace, DOJ helps ensure that Americans with disabilities have equal access to the sense of dignity, pride, purpose, independence, self-worth, belonging, and community that can come with work.
The ADA is about full participation. Through its Office of Disability Employment Policy (ODEP), DOL delivers on the spirit of the ADA, and goes beyond enforcement to help ensure people with disabilities can effectively prepare for, find, and succeed in meaningful careers. ODEP does this by developing and influencing policies and practices that increase both the number and quality of employment opportunities for people with disabilities.
In support of this mission, each year ODEP provides technical assistance to tens of thousands of individuals and employers on the ADA’s employment provisions. For instance, its Job Accommodation Network provides free, confidential guidance on reasonable accommodations in the workplace, a right guaranteed to qualified individuals with disabilities under the law.
A reasonable accommodation is any modification or adjustment to a job or work environment that enables a qualified person with a disability to apply for or perform a job. When requested, employers covered by the ADA are required to provide such accommodations for qualified employees with disabilities, unless doing so would impose an undue hardship.
Accommodations are essentially about flexibility in how, when, and where people work, and this year’s challenges of working during a pandemic demonstrate their basic premise. For instance, for some workers with disabilities, telework may be a reasonable accommodation that enables them to obtain or maintain employment, and in recent months it has helped many people, whether they have a disability or not, to continue working in the face of COVID-19.
Individuals with disabilities have the talents and skills to contribute to America’s workforce, and, often, their experience with disability offers fresh perspectives on how to solve problems and achieve success. In fact, data indicates that companies that increase disability inclusion over time outperform those that do not.[1]
Harnessing the talent and potential of all segments of the population, including people with disabilities, is essential for our economic growth going forward, and increasing access and opportunity is key. The ADA provides the foundation for this, and the EEOC, DOJ, and DOL are committed to continuing to make progress toward its vital goals — for the next 30 years and beyond.
[1] https://www.accenture.com/t20181108t081959z__w__/us-en/_acnmedia/pdf-89/accenture-disability-inclusion-research-report.pdf
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 27 was:
Danielle Marie Marceau, aka Danielle Marie ComesAtNight, 34, on charges of second degree murder. If convicted of the most serious crime, Marceau faces a maximum life in prison, a $250,000 fine and five years of supervised release. Marceau was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Great Falls Police Department investigated the case. Pacer case reference. 20-51.
Appearing on July 28 was:
Carlyle Ray Wells, 25, of Great Falls, on charges of theft from a firearms licensee, possession of stolen gun or ammunition and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Wells faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wells was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-46.
Chance Justin Redstone, aka CJ Redstone, 35, of Wolf Point, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious crime, Redstone faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-39.
Maynard Joseph White Bear, 67, of Fort Kipp, on charges of involuntary manslaughter. If convicted of the most serious crime, White Bear faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. White Bear was released pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-42.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 30 was:
Matthew Anthony Marshall, 49, of Whitefish, on charges of wire fraud, money laundering and tax evasion. If convicted of the most serious crime, Marshall faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Marshall was released pending further proceedings. The FBI and IRS investigated the case. Pacer case reference. 20-32.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Harrison County man sentenced for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew Scott Collins, of Stonewood, West Virginia, was sentenced today to 84 months incarceration for a firearms charges, U.S. Attorney Bill Powell announced.
Collins, age 37, pled guilty to one count of “Possession of Stolen Firearm” in January 2020. Collins admitted to having a .22 caliber rifle, a 9mm pistol, and a .223 caliber rifle in Barbour County in July 2018. All three firearms are stolen.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Guns and Drug Conviction Gets Oxford Man 15 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – An Oxford man was sentenced today to 180 months in prison for possession with intent to distribute cocaine base (crack) and possession of firearms by a convicted felon.
According to court documents, the Oxford Police Department (OPD) received complaints of drug distribution activity at the residence of Thurston Darius Bobbitt, 37, in Oxford. As a result, OPD utilized a confidential informant to purchase crack cocaine from Bobbitt at the residence. A search warrant executed at Bobbitt’s residence and vehicle yielded a quantity of crack cocaine, digital scales, two firearms, ammunition, cell phones, and U.S. currency. In total, Bobbitt was held accountable for possession and/or distribution of over a kilogram of crack cocaine. Bobbitt had previously been convicted of a felony for which he received a term of imprisonment exceeding one year.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Oxford Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-302-D.
###
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.
Guilderland Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Blake Spears, age 39, of Westmere, Town of Guilderland, New York, pled guilty today to sexual exploiting a child.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Spears admitted that on December 1, 2018, he used his phone to video-record himself masturbating while standing over a sleeping child. He also admitted to using a phone messaging application to distribute, to others, videos depicting the sexual abuse of other children.
Spears, who has been in custody since his arrest on February 15, 2019, faces at least 15 years and up to 30 years in prison, as well as a term of post-release supervision of at least 5 years and up to life, when United States District Judge Mae A. D’Agostino sentences him on December 1, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Goldsboro Gang Member Sentenced to 17 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 204 months in prison for conspiring to distribute and possess with the intent to distribute fifty (50) grams or more of methamphetamine and distributing five (5) grams or more of methamphetamine and aiding and abetting.
According to court documents, Alexander Rickey Shaw, Jr., also known as “Ruger Red,” 27, had engaged in a conspiracy to distribute multiple kilograms of crystal methamphetamine between November 2018 and his arrest in September 2019. Shaw was a validated member of the United Blood Nation gang.
The investigation was part of OCDETF Operation Carolina’s Ice Fall, which targeted large-scale methamphetamine dealers operating in and around Goldsboro. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. To date, Operation Carolina’s Ice Fall has resulted in the prosecutions of 26 individuals for their role in methamphetamine distribution and other crimes.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Goldsboro Police Department, the Wayne County Sheriff’s Office, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-355-D.
###
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.
Georgia Man Pleads Guilty for His Role in Cocaine Conspiracy Stretching from El Paso, Texas to BuffaloRead 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 Adrian Grier, 44, of Jackson, Georgia, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and an $8,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between October 2017 and December 7, 2018, the defendant conspired with 11 others to sell cocaine. One of Grier’s co-defendants brokered bulk quantity cocaine to multiple areas in the country including Buffalo, Kentucky, and Georgia. Numerous court authorized communications were intercepted between the defendant and others. On two occasions, Grier coordinated trips to Kentucky to acquire kilograms of cocaine. The defendant was intercepted discussing future plans to increase the quantity of cocaine he could obtain in Georgia.
Of the 12 defendants charged in this case, Grier is the second to be convicted. 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.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard. Additional assistance was provided by HSI-Louisville; the Kentucky State Police; the Louisville Metro Police; and the Greater Hardin County Drug Task Force.
Sentencing is scheduled for January 6, 2021, before Judge Sinatra.
# # # #
Gardner Man Arrested for Possession of Child PornographyRead the Press Release
BOSTON – A Gardner man was arrested yesterday on a charge of possession of child pornography.
Michael Irons, 44, was charged with one count of possession of child pornography. Following an initial appearance in federal court in Worcester today, Irons was released to home detention.
According to the charging documents, during a search of Iron’s residence today, federal agents discovered two cell phones in Iron’s bedroom – belonging to him – that a preliminary search revealed to contain at least 200 videos of child pornography.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charging statute 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 and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement. Assistance was provided by the Gardner and Worcester Police Departments. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.