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Thursday 30 July 2020
President of Navillus Contracting Charged with Defrauding Union Benefits FundsRead the Press Release
An 11-count indictment was unsealed earlier today in federal court in Brooklyn charging Donal O’Sullivan, his sister Helen O’Sullivan and Padraig Naughton with wire fraud, mail fraud, embezzlement from employee benefit funds, submission of false remittance reports to union benefit funds and conspiracy to commit those crimes. The indictment relates to the defendants’ conduct at Navillus Tile, Inc. d/b/a Navillus Contracting (“Navillus”), one of the largest construction firms in New York City. Donal O’Sullivan is the founder, owner and President of Navillus. Helen O’Sullivan is the Treasurer of Navillus and Padraig Naughton is the company’s Financial Controller. The defendants were arrested this morning and arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Donal O’Sullivan was released on a $500,000 bond; Helen O’Sullivan and Naughton were each released on $250,000 bonds.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Thomas Licetti, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Michael C. Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region (DOL-OIG); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Michael Farbiarz, Acting Inspector General, Port Authority of New York and New Jersey, Office of the Inspector General (PANYNJ-OIG), announced the arrests and indictment.
Navillus is a signatory to multiple collective bargaining agreements with labor organizations – including the Bricklayers and Allied Craft Workers Local No. 1, the New York City District Council of Carpenters, the Cement Masons Union, the Pointers, Cleaners and Caulkers, and the International Brotherhood of Teamsters Local 282 – that required the company to employ union workers on its projects and to make contributions to various union benefits including pension, annuity and welfare funds on their behalf. To ensure that the benefits funds received the contributions that it had agreed to pay, Navillus was required to periodically file remittance reports with the benefits funds that detailed the number of hours worked by each worker.
As alleged in the indictment, the defendants engaged in a payroll scheme from approximately 2011 to 2017 to avoid making those contributions by using a consulting firm to pay certain Navillus workers for work done on Navillus construction jobs. However, neither Navillus nor the consulting firm made contributions to the benefits funds on behalf of those workers. To disguise the scheme, the defendants directed the consulting firm to issue fraudulent invoices to conceal the fact that funds paid by Navillus to the consulting firm were, in fact, for wages paid to Navillus workers. As a result, the defendants caused Navillus to avoid making over $1 million in required contributions to union benefits funds.
“As alleged, these senior construction company executives were the architects of a payroll scheme designed to evade obligatory contributions to union benefits funds that their workers depend upon,” stated Acting United States Attorney DuCharme. “This Office, together with its federal and local law enforcement partners, will continue to investigate and hold accountable employers whose corrupt actions jeopardize their employees’ economic well-being.” Mr. DuCharme expressed his grateful appreciation to the New York City Police Department for its assistance with the case.
“As alleged, the defendants deprived union workers of benefits to which they were entitled, falsifying records and creatively circumventing their fiscal responsibilities,” stated FBI Assistant Director-in-Charge Sweeney. “This type of crime depletes the benefits union employees have a right to access. Today’s arrests highlight this illegal scheme and reassert our dedication to rooting out crimes of this nature.”
“Embezzling and underfunding employee benefits funds cheat workers, retirees, and their families of the benefits to which they are entitled and are against the law. The U.S. Department of Labor’s Employee Benefits Security Administration will continue to work with our law enforcement partners to investigate and take action to counter illegal activity that threatens employees’ hard-earned benefits,” stated DOL-EBSA Acting Regional Director Thomas Licetti.
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated DOL-OIG Special Agent-in-Charge Mikulka.
“The alleged scheme perpetrated by the president of Navillus Contracting cheated union benefits funds of more than a million dollars,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI’s collaboration with federal, state and local partners allows for comprehensive investigations and arresting those fraudsters who look to fill their pockets at the expense of others.”
“The Port Authority Office of Inspector General initiated this investigation, and the message today’s indictment sends is crystal clear: the Port Authority has zero tolerance for fraud by its business partners, and we will work aggressively to ensure that individuals who engage in fraudulent conduct — including contractors’ senior executives, where appropriate — are held personally accountable under the criminal law,” stated PANYNJ Acting Inspector General Farbiarz.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Martin Coffey and Turner Buford are in charge of the prosecution.
The Defendants:
DONAL O’SULLIVAN
Age: 59
Queens, New YorkHELEN O’SULLIVAN
Age: 60
Queens, New YorkPADRAIG NAUGHTON
Age: 48
New York, New YorkE.D.N.Y. Docket No. 20-CR-272 (WFK)
Plainville Man Charged with Enticement of MinorRead the Press Release
BOSTON – A Plainville man was arrested yesterday and charged with attempted enticement of a minor.
David Cerasuolo, 47, of Plainville, Mass., was charged by criminal complaint with one count of coercion and enticement of a minor, or attempt thereof. Following an initial appearance via videoconference in federal court in Boston, Cerasuolo was detained pending a probable cause and detention hearing scheduled for July 31, 2020.
According to the criminal complaint, Cerasuolo used chat applications to engage in conversations with an individual he believed to be a 13-year-old girl, but was actually an undercover federal agent. During these conversations, Cerasuolo attempted to entice the 13-year-old to engage in sexual activity and sent her several photographs of himself, including one displaying his penis.
The charging statute provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Plainville, Arlington, Boston and Newton Police Departments and Massachusetts Department of Correction provided assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of New York Tax Preparation Business Pleads Guilty to Conspiring to File False ReturnsRead the Press Release
WASHINGTON – A Queens, New York return preparer pleaded guilty today to conspiracy to defraud the United States by filing false returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Richard Barker owned and operated a tax return preparation business under the names Tax Depot Inc. and KPS Kampant, Parkinson, Sinclair & Co. Inc. From 2011 through 2017, Barker conspired with other individuals to file returns for clients falsely reporting significant tax withholdings, in an effort to fraudulently inflate refunds from the IRS. Barker also admitted that he filed returns for himself, a coconspirator, and others, claiming more than $530,000 in fraudulent refunds from the IRS. In all, Barker caused a loss of at least $460,000 to the United States.
U.S. District Judge Eric R. Komitee will schedule sentencing a later date. At sentencing, Barker faces a maximum sentence of five years in prison. Barker also faces a period of supervised release, restitution, and monetary penalties.
Barker was previously charged in a January 2020 indictment alleging that Barker and two associates, Ricardo Andujar and Jose Andreu, conspired to defraud the United States. Andreu was also charged with filing false returns for himself, claiming approximately $182,000 in fraudulent refunds. Andreu’s case is pending. Andujar remains at large.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Ann Marie Cherry and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Orange County Men Indicted on Drug ChargeRead the Press Release
ALBANY, NEW YORK – Peter Mami, age 41, and James Taylor, age 32, both of Orange County, New York, were indicted yesterday with possessing and intending to distribute more than 500 grams of cocaine. The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
According to the indictment and a previously filed criminal complaint, on March 2, 2020, Taylor and Mami possessed with the intent to distribute approximately two kilograms of cocaine. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted, Taylor and Mami each face at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Omaha Man Sentenced to 10 Years in Prison for Bank RobberyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Wednesday, July 29, 2020, Brandon Bird, age 41, of Omaha, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison for bank robbery. Bird was ordered to serve three years of supervised release to follow his term of imprisonment and pay a $100 Special Assessment to the Crime Victims’ Fund.
On October 30, 2019, Bird walked into a U.S. Bank in Council Bluffs and gave a demand note to the teller requesting money. After obtaining cash from the bank, Bird fled the scene and was then stopped by law enforcement. All of the stolen cash was recovered.
This matter was investigated by the Council Bluffs Police Department, Iowa State Patrol, Federal Bureau of Investigation, and the Great Plains Violent Crimes Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Ohio Man Pleads Guilty to Sex Offense Involving MinorsRead the Press Release
HUNTINGTON, W.Va. – A Chesapeake, Ohio man pled guilty to a sex offense involving a minor, announced United States Attorney Mike Stuart. Mikel Bradley Smith, 19, pled guilty to traveling in interstate commerce to engage in sexual activity with a minor.
“Protecting children is a top priority in my office,” said United States Attorney Mike Stuart. “Crimes against children are inexcusable and child predators will be prosecuted to the fullest extent of the law.”
Smith admitted that on February 27, 2020, he responded to a Craigslist ad and engaged in a conversation with a person he believed to be a mother of two minors, ages 11 and 13. During the course of the conversation, Smith arranged to travel from Chesapeake, Ohio to Huntington to meet the woman in order to engage in sexual activity, including oral sex and sexual intercourse, with the two minor females. On February 28, 2020, Smith traveled to Huntington with condoms and small gifts for the two minors and met with the woman, at which time he was placed under arrest.
Smith faces up to 30 years in prison when sentenced on November 2, 2020. He also will be required to register as a sex offender following his release from prison.
The Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 3:20-cr-00071.
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###Niagara Falls Man with Two Prior Felony Convictions Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jacob Taggart, 31, of Niagara Falls, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that just after midnight on May 9, 2019, the Niagara Falls Police Department received a 911 call reporting that the defendant displaying a handgun inside the Players Bar on Niagara Street. Before officers arrived at the scene, Taggart left the club in a vehicle traveling on Ferry Avenue. Officers located the car and executed a stop. A 9mm handgun was found underneath the rear of the front passenger seat where defendant was seated. A review of the Players Bar surveillance video captured Taggart twice taking the firearm from his pocket and displaying it inside the bar. The firearm was previously reported stolen out of Stamford, Connecticut.
The defendant was convicted: in January 2013, of attempted gang assault in the 2nd degree, and in February 2011, of criminal possession of a controlled substance. As a result, Taggart is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
Sentencing is scheduled for December 3, 2020, before Judge Sinatra.
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New Orleans Tax Preparer Sentenced for Fraudulent Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today, TRISH CHRISTOPHER, age 36, of Metairie was sentenced to three years of probation before U.S. District Judge Susie Morgan, for aiding and assisting in the preparation of false federal tax returns, in violation of Title 26, United States Code, Section 7206(2), a crime punishable by up to
(3) three years of imprisonment.CHRISTOPHER admitted that as owner and operator of C.C. Tax Service, located in New Orleans, Louisiana, she prepared and caused to be prepared at least 36 individual income tax returns that included false or fictitious Schedule A itemized deductions in order to falsely inflate her clients’ tax refunds.
“When Trish Christopher utilized her tax return preparation business, C.C. Tax Service, for ill-gotten gains, she underestimated the special agents of IRS Criminal Investigation,” said James E. Dorsey, Special Agent in Charge, IRS-Criminal Investigation, Atlanta Field Office. “By identifying, investigating and recommending prosecution of abusive return preparers, IRS-CI works diligently to protect the American tax system.”
Pursuant to the plea agreement, CHRISTOPHER has agreed to pay restitution of $195,205.00 to the Internal Revenue Service (IRS). In addition to probation and restitution, CHRISTOPHER has been ordered to pay a $100.00 special assessment fee.
U.S. Attorney Peter G. Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division, for its work in investigating this case. The case was prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
New Bedford Massachusetts Man Sentenced to 25 Years’ Imprisonment on Child Pornography ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Monast, age 37, of New Bedford, Massachusetts, was sentenced on July 28, 2020, to 25 years’ imprisonment followed by 10 years on supervised release by United States District Court Judge Malachy E. Mannion, for online enticement of a minor and penalties for registered sex offenders.
According to United States Attorney David J. Freed, between March 1, 2019 and April 11, 2019, as a registered sex offender, Monast used the internet to entice a minor to engage in sexual activity.
The case was investigated by the Federal Bureau of Investigation and the Covington Township Police Department. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Nashua Man Sentenced to 63 Months for Participating in Drug Trafficking Conspiracy in Nashua AreaRead the Press Release
CONCORD – George Cruz, 30, of Nashua, was sentenced on Wednesday to 63 months in federal prison for participating in a conspiracy to distribute crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Cruz was a member of a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua area. Cruz actively sold drugs to customers for the organization.
Cruz previously pleaded guilty on December 17, 2019.
In addition to Cruz, six defendants in this case have pleaded guilty. Four of the defendants have been sentenced: Donald Johnson was sentenced to 42 months in prison; Melvin Nooks, Jr. was sentenced to 120 months in prison; Marvin Morrison was sentenced to 15 months in prison; and Mallory Nooks received 60 months in prison. William Greenleaf is scheduled to be sentenced on November 3, 2020 and Isaiah Kinard is scheduled to be sentenced on November 4, 2020. Three other defendants are awaiting trial.
“This 63-month sentence should serve as a warning to drug dealers operating in the Nashua area,” said U.S. Attorney Murray. “Mr. Cruz now follows four of his fellow conspirators to federal prison. A similar fate awaits those who peddle crack cocaine anywhere in the Granite State. We will continue to work with the FBI and all of our law enforcement partners to identify, prosecute, and incarcerate the purveyors of dangerous illegal drugs.”
“With today’s sentence, George Cruz became the fifth member of this drug trafficking organization to be held accountable for pumping illegal narcotics like crack cocaine into the neighborhoods of Nashua,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Given that the safety and quality of life of our communities are on the line, our Safe Streets Gang Task Force will vigorously work to put drug trafficking rings like this one permanently out of business.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the New Hampshire State Police, Nashua Police Department, Manchester Police Department, Dover Police Department, and Portsmouth Police Department. The case was prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Man sentenced to 32 years for kidnapping and carjacking an Indianapolis womanRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Christian Lovies, 21, Milwaukee, Wisconsin, was sentenced to more than 32 years in federal prison by U.S. District Judge James R. Sweeney. In February, a jury found Lovies guilty of kidnapping, carjacking, and brandishing a firearm during and in relation to a violent crime.
“I hope the sentence Lovies received will bring some peace and comfort to the brave victim in this case.” said Minkler. “The fear that Lovies and his violent crime partners imposed on this innocent victim and others is unimaginable. No doubt, Milwaukee, Indianapolis, and Cincinnati are much safer with Lovies and his co-defendants off the street.”
Lovies and three associates were involved in a violent crime spree including the theft of a vehicle containing a toddler in Milwaukee, Wisconsin. Fortunately, the child was found, uninjured, approximately a half mile away from where the vehicle was stolen. Lovies and his associates then stole another vehicle and fled Milwaukee to avoid arrest for their offenses. The stolen vehicle that the group was traveling in broke down in Indianapolis, leaving the group stranded and on foot.
Lovies and another co-defendant approached an Indianapolis teacher who was getting gas on the northwest side of Indianapolis. Lovies pointed a gun at the victim, demanded her keys, and forced the victim into the backseat of her vehicle. The victim was held captive for approximately three hours while the group travelled to Cincinnati, Ohio. During the trip, Lovies and another co-defendant discussed killing the victim, but decided against it. The victim was ultimately released in Cincinnati, Ohio and was permitted to leave with her vehicle. She quickly drove away and ended up stopping at a YMCA where she was assisted by the staff in calling the Cincinnati Police Department.
Lovies and his associates allegedly carjacked two other women in the Cincinnati area. Lovies has federal charges pending in those cases, and has already been sentenced for offenses he committed in the Milwaukee area.
Two of Lovies co-defendants have been sentenced to federal prison and/or have pending charges in Milwaukee for their crime spree. Jaleel Schultz received 18 years for his participation in this case and pled guilty to state charges in Milwaukee related to the car theft with the child inside. He also has pending charges for a drive by shooting that occurred in Milwaukee. Armone Hudson received 10 years for his role in this offense. The fourth individual involved in this offense was a juvenile and that case remains under seal.
This case was investigated by the Federal Bureau of Investigation, the Indianapolis Metropolitan Police Department, the Milwaukee Police Department, and the Cincinnati Police Department.
“Today’s sentencing of Christian Lovies demonstrates the FBI’s commitment to investigating cases of violent crime to protect innocent victims from those who engage in this type of activity. The teamwork between the our agents and task force officers on the FBI Violent Crimes Task Force and police departments across three states, ensured there is one less predator victimizing members of our community.”
According to Assistant United States Attorneys Amanda Kester and Kathryn Olivier, who prosecuted this case for the government, Lovies will also serve five years of supervised release following his release from federal prison.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to prosecute defendants committing violent crimes involving firearms, and carjacking. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.3
Man charged with sending threatening emailRead the Press Release
HONOLULU, Hawaii – Sean Michael Fujiwara, 43, of Kailua, Hawaii, was charged on July 28, 2020 by federal complaint with sending threatening interstate communications. Fujiwara has been remanded to federal custody pending further proceedings.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that the complaint alleges that Fujiwara sent emails at least 21 times between December 8, 2017 and July 27, 2020 that were threatening in nature or contained references to foreign terrorist organizations, or both. Among the alleged messages were a February 25, 2018 email to a personal Hawaii Department of Education email address threatening to shoot and kill teachers and students, a June 8, 2020 email to a law enforcement agency threatening to plant a bomb at a specified police station, and multiple emails proclaiming Fujiwara’s allegiance to ISIS.
“Words have meaning, and the law enforcement community in Hawaii will not tolerate the use of electronic communications to send threatening words to victims in our communities. We will thoroughly investigate and prosecute those whose conduct jeopardizes public safety, particularly during times when many in our communities have enough to worry about,” said U.S. Attorney Price.
“The FBI takes these types of threats very serious especially when they reference schools and the killing of students and teachers. Many times these threats are more than words and are actually a precursor to violence. The men and women of the FBI work tirelessly to identify the author of such threats to ensure they are stopped before they act out. This arrest is an example of the FBI’s dedication to justice and our goal of making Hawaii a safer place for all,” said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda.
The charges in the complaint are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sean Van Demark.
Man Charged with Possessing with Intent to Distribute MethamphetamineRead the Press Release
St. Louis – Richard L. Treis, 46, was charged by a federal complaint today with possession with intent to distribute 500 grams or more of methamphetamine.
According to the complaint, on July 15, 2020, an Undercover Agent (UCA) with Department of Homeland Security received a phone call from Richard Treis. Treis was looking to purchase 40 pounds of methamphetamine from the UCA for $120,000.
On July 29, 2020, investigators conducted surveillance on a vehicle in which Treis was the passenger and another individual who was the driver. The UCA met with Treis at the proposed meeting location, in Pacific, Missouri. Treis opened up a black bag and showed the UCA a large amount of United States Currency. The UCA directed Treis to drive to the back of the location where they could exchange the methamphetamine for the money.
The other individual and Treis drove to the agreed location, where the UCA provided Treis with a bag containing 7.1 kilograms of methamphetamine. Treis handed the bag of methamphetamine to the other individual and began walking toward the vehicle that they had arrived in. Investigators converged on the scene and arrested Treis and the other individual.
The Department of Homeland Security and the Drug Enforcement Administration are investigating these current charges. Assistant United States Attorney Derek Wiseman is handling the case for the Office.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Macomb County Couple Charged with Tax Evasion and Health Care Fraud Offenses and Physician Charged in Health Care Fraud ConspiracyRead the Press Release
A superseding indictment was unsealed today charging Isabel Tcruz and Noli Tcruz with tax evasion and multiple health care fraud offenses, and charging Dr. Terry S. Baul with participating in a health care fraud conspiracy, U.S. Attorney Matthew Schneider announced today. Previously, only Isabel Tcruz had been indicted with health care fraud offenses in this case.
Schneider was joined in the announcement by Special Agent in Charge Sarah Kull, Internal Revenue Service, Criminal Investigation, Detroit Division and Special Agent in Charge Lamont Pugh, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Charged in the superseding indictment are:
Isabel Tcruz, 61, of Washington Township
Noli Tcruz, 65, of Washington Township
Dr. Terry S. Baul, 69, of Detroit.
According to the Superseding Indictment, during May 2011 to January 2018, Isabel Tcruz and Noli Tcruz owned and operated multiple home health care companies in Roseville, Michigan, including Maxicare Home Health Agency, Inc., Faith Home Care Services, LLC, and Affinity Home Care, LLC, though they sold Affinity Home Care in December 2014. They also owned and operated home health agencies in Arizona and Nevada. The companies were enrolled as participating providers with Medicare and submitted claims to Medicare. As part of that enrollment, Isabel and Noli Tcruz agreed to comply with all Medicare rules, which included that they would not violate the Anti-Kickback statute. Dr. Terry S. Baul operates a family practice in Detroit.
The superseding indictment alleges that, from approximately September 2007 through the present, Isabel and Noli Tcruz engaged in tax evasion. During that time they willfully avoided paying approximately $602,154.91 in taxes, not including interest and penalties, which had been assessed against them for the years 2006-2009. Isabel and Noli Tcruz avoided paying their taxes in numerous ways, including using their home health care business bank accounts to pay more than $440,000 in personal expenses. They also placed funds beyond the reach of the IRS by diverting money from their businesses to other people, and those people used the money to pay Isabel and Noli Tcruz’s personal expenses. Among other things, Isabel and Noli Tcruz used money from their businesses to purchase a home in Michigan for $675,000 and a home in Henderson, NV for $925,000. From 2011 to 2017, Isabel and Noli Tcruz used their businesses to pay, directly or indirectly, approximately $909,020.55 in personal expenses, and they issued checks from their business accounts made payable to themselves, but diverted the money to others to pay their expenses, totaling approximately $1,616,239.26.
The superseding indictment further alleges that, from May 2011 through January 2018, Isabel Tcruz, Noli Tcruz, Dr. Terry Baul, and other doctors conspired to defraud the United States by paying and receiving health care kickbacks. In short, Isabel and Noli Tcruz, through their home health care companies, arranged with multiple physicians, including Dr. Baul, to pay the physicians, and for the physicians to receive, kickbacks and bribes in exchange for referring Medicare beneficiaries and providing Medicare beneficiary information that was used to support false and fraudulent claims by the business entities. Isabel and Noli Tcruz then submitted or caused the submission of claims to Medicare for home health care services that were provided or purportedly provided to the beneficiaries.
Isabel Tcruz, Noli Tcruz, Dr. Baul, and the other physicians attempted to disguise the illegal kickbacks. For example, Isabel Tcruz paid Dr. Baul in cash and gifts, rather than payments that could be tracked.
Isabel and Noli Tcruz are also charged with separate counts based on specific instances where they paid kickbacks or bribes.
Fraudulent claims to Medicare totaling at least $12,000,000 were submitted that were obtained through illegal kickbacks and bribes, and not otherwise eligible for Medicare reimbursement.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of IRS Criminal Investigations and HHS-OIG.
The case is being prosecuted by Assistant U.S. Attorneys Brant Cook and Andrew Lievense.
Los Angeles City Councilman Jose Huizar Charged in 34-Count Indictment Alleging Wide-Ranging Political CorruptionRead the Press Release
INDICTMENTLOS ANGELES – A federal grand jury today returned a 34-count indictment against Jose Huizar, an elected member of the Los Angeles City Council, on charges that he led a criminal enterprise where he used his powerful position at City Hall to enrich himself and his close associates, and unlawfully gave favorable treatment to developers who financed and facilitated bribes and other illicit financial benefits.
The indictment incorporates the allegations made in last month’s criminal complaint that charged Huizar, 51, of Boyle Heights, with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. The indictment specifically alleges 402 overt acts that Huizar and his co-conspirators committed to further their criminal enterprise, including bribery, honest services fraud, and money laundering.
In addition to the RICO conspiracy charge, the indictment charges Huizar with the following criminal charges: 12 counts of honest services wire fraud; two counts of honest services mail fraud; four counts of traveling interstate in aid of racketeering; six counts of bribery; five counts of money laundering; one count of structuring cash deposits to conceal bribes; one count of making a false statement to a financial institution; one count of making false statements to federal law enforcement; and one count of tax evasion.
Huizar is expected to appear via videoconference for his arraignment, which is scheduled for August 3 in United States District Court.
Huizar has represented Council District 14 (CD-14), which includes downtown Los Angeles and its surrounding communities, since 2005. Huizar for several years was chair of the city’s influential Planning and Land Use Management Committee, a position he lost after the FBI executed search warrants at his city offices and personal residence in November 2018. During the search of his home, agents seized approximately $129,000 cash that was stashed in Huizar’s closet and which, according to the indictment, he received from a Chinese billionaire and another businessperson seeking favors from him.
The indictment alleges that Huizar operated the “CD-14 Enterprise,” along with co-conspirator members, including “Individual 1,” a former general manager of the Los Angeles Department of Building and Safety and former deputy mayor; George Esparza, Huizar’s former special assistant; and real estate development consultant George Chiang. Members and associates of the criminal enterprise referred to Huizar as their “boss,” operated as a criminal organization, and worked together for common purposes, the indictment alleges.
The CD-14 Enterprise allegedly had several objectives, including enriching its members and associates through means that included bribery, extortion, and honest services fraud; advancing its political goals and maintaining its control and authority; concealing the enterprise’s financial activities; and protecting the enterprise by concealing its activities and shielding the enterprise from detection by law enforcement, the city, and the public.
Among the multitude of corruption allegations, the indictment alleges that Huizar illegally accepted more than $800,000 in benefits from Chairman E, a Chinese billionaire who runs a multinational development firm and who owns a hotel in Huizar’s district. Chairman E provided $600,000 in collateral to fund a settlement of a sexual harassment lawsuit filed against Huizar by a former CD-14 staffer, allegations that threatened his 2015 re-election campaign, according to the indictment.
The indictment outlines Huizar’s concealment of illicit benefits, including by instructing his special assistant on how to avoid bank reporting requirements, using his family members to launder hundreds of thousands of dollars in bribes, making false statements on a bank loan application and failing to report his illicit benefits on tax returns and ethics disclosure forms. Huizar allegedly engaged in obstructionist conduct, including attempting to influence other witnesses and lying to federal prosecutors and the FBI.
In total, Huizar allegedly agreed to accept at least $1.5 million in illicit financial benefits.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges of RICO conspiracy, honest services fraud, and money laundering each carry a statutory maximum sentence of 20 years in federal prison. The charge of making false statements to a financial institution has a statutory maximum sentence of 30 years’ imprisonment. The bribery charges each carry a statutory maximum sentence of 10 years in federal prison. The charges of tax evasion, structuring, making false statements to law enforcement, and interstate travel in aid of racketeering have a five-year maximum prison sentence.
Huizar is the fifth person to be charged in the ongoing corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. The other four defendants have pleaded guilty. Esparza, Chiang, and Justin Jangwoo Kim, a Huizar fundraiser who admitted to facilitating bribes, are scheduled to be sentenced by United States District Judge John F. Walter in February 2021. Esparza, Chiang, and Kim are cooperating with the ongoing investigation.
Former Los Angeles City Councilman Mitchell Englander pleaded guilty on July 7 to charges of scheming to falsify material facts related to trips he took to Las Vegas and Palm Springs that were funded by a businessperson. Englander’s sentencing hearing is scheduled for December 7, also before Judge Walter.
The cases against Huizar and his associates in the CD-14 Enterprise are being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Veronica Dragalin and Melissa Mills, also of the Public Corruption and Civil Rights Section.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Liverpool Man Pleads Guilty to Robbing Banks in Brighton and Buffalo, and Attempting to Rob A Third Bank in Niagara FallsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Tyo, 32, of Liverpool, NY, pleaded guilty to two counts of bank robbery and one count of attempted bank robbery, before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that over the course of four days in August 2019, Tyo robbed a bank in Brighton, New York; a bank in Buffalo, New York; and attempted to rob a third bank in Niagara Falls, New York.
On August 24, 2019, Tyo robbed the Citizens Bank inside the Tops Market on South Clinton Avenue in Brighton. The defendant gave the bank teller a detailed note that said, “if I even glimpse a dye-pack I will not hesitate to elevate the situation and you will be the first casualty.” Another part of the note stated, “If I happen to get caught because of you, when I get out of prison, I will systematically destroy you and the people you love the most.” The bank teller complied with the defendant’s demands and gave him U.S. currency, which Tyo took and fled the bank.
On August 27, 2019, Tyo robbed a second Citizens Bank inside the Tops Market on South Park Avenue in Buffalo. He gave the bank teller a note demanding $50 and $100 bills.
The defendant threatened the use of violence, stating in the note that he would use his gun if the teller did not cooperate. The teller complied and gave the defendant U.S. currency, which he took and fled the bank.
Also on August 27, 2019, Tyo attempted to rob a third bank, the Key Bank on Niagara Falls Boulevard in Niagara Falls. However, when he gave the teller a demand note, the teller said that they were dealing with a computer issue, and Tyo did not succeed in obtaining any money.
The plea is the result of an investigation by the Brighton Police Department, under the direction of Chief Dave Catholdi, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for October 15, 2020, at 10:00 a.m. before Judge Larimer.
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KCK Woman Charged with CarjackingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, woman was charged in federal court today with stealing a vehicle at gunpoint from the parking garage at the Country Club Plaza.
This Century Arms Draco AK 47-style 9mm pistol was seized from Maricela Delores Lozano at the time of her arrest.Maricela Delores Lozano, 20, was charged with one count of carjacking and one count of using a firearm during a crime of violence in a complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Tuesday, July 28. The complaint was unsealed today following Lozano’s arrest and initial court appearance.
The federal criminal complaint alleges that Lozano used a Century Arms Draco AK 47-style 9mm pistol during the theft of a 2010 Nissan Altima on July 19, 2020.
According to an affidavit filed in support of the criminal complaint, Lozano approached the owner of the Altima, who was attempting to start her vehicle to leave the parking garage of the Country Club Plaza, at about 5:48 p.m. on July 19, 2020. Lozano brandished the AK 47-style pistol, the affidavit says, pointed it at the victim, and demanded her keys and cell phone. The victim complied and walked away from the vehicle, after which Lozano drove her car out of the parking garage. The victim went to a nearby business and used their phone to call the police.
Lozano, who was standing beside the stolen vehicle, was spotted by a Missouri State Highway Patrol corporal in a driveway in Fulton, Missouri, on July 21, 2020. When the officer drove toward her, the affidavit says, she got into the vehicle and attempted to flee. The officer stopped the vehicle and arrested Lozano and a male passenger. The officer seized the loaded firearm from the floorboard behind the driver’s seat.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department, the Missouri State Highway Patrol, and the FBI.
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.KC Man Threatened Witness, Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who threatened a witness has been charged in federal court for illegally possessing a firearm and ammunition.
Shannon L. Walz, 45, was charged with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Tuesday, July 28. The complaint was unsealed and made public following Walz’s arrest and initial court appearance on Wednesday, July 29. Walz remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the federal criminal complaint, Walz was arrested following a foot chase by Kansas City, Mo., police officers on May 30, 2020. Officers were called by a resident in the Fairwood and Robandee neighborhood who had been confronted by Walz. Walz knocked on the front door of the person’s residence, the affidavit says, and when the resident opened the door, Walz told the resident to keep their mouth shut regarding a shooting assault that occurred on May 24, 2020. (The victim of the assault died from his injuries on June 10, 2020.) Walz shouted and waved a handgun in a threatening manner, according to the affidavit. The resident closed the door and dialed 911 while Walz walked away from the house.
Police officers responded to the call and saw Walz walking on James A. Reed Road. When Walz saw the officers, the affidavit says, he fled on foot. Walz ran through the property of a church at 9420 James A. Reed Road. He was captured shortly thereafter near the intersection of Bannister and James A. Reed Roads and placed under arrest. Walz had two knives and a .40-caliber handgun magazine (containing 10 rounds) in his pocket.
Officers subsequently obtained surveillance video from the church, which depicts Walz fleeing from officers and throwing a Hi-Point .40-caliber handgun into some bushes near the front entrance of the church. Officers returned to the church on June 10, 2020, and found the loaded handgun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walz has prior felony convictions for statutory rape and burglary.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department, the FBI, 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 Settles with School District to Resolve Disability Discrimination ComplaintRead the Press Release
The Justice Department today announced that it reached an agreement with Spencer East Brookfield Regional School District in Spencer, Massachusetts to resolve the department’s lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA).
The department’s complaint alleges that the school district terminated an elementary-school paraprofessional with knee and shoulder impairments on the basis of her disability. Further, the complaint alleges that the school district unlawfully denied the employee’s reasonable accommodation request that, due to her physical limitations, she be excused from a new policy requiring paraprofessionals to be trained to physically restrain school children and be available to perform restraints. The employee was otherwise qualified to perform her job.
Under the agreement, the school district will revise its policies to ensure compliance with the ADA, train staff on the ADA, and file periodic reports with the department on implementation of the agreement. The school district will also pay over $85,000 in back pay and compensatory damages to its former employee. This matter was based on a referral from the Equal Employment Opportunity Commission’s Massachusetts District Office.
“Work provides more than just a paycheck: it provides a sense of purpose, dignity, independence, self-worth, and belonging,” said Assistant Attorney General Eric Dreiband of the Department of Justice's Civil Rights Division. “Without reasonable accommodations for their jobs, many people with disabilities cannot work and, as a result, are unable to achieve economic self-sufficiency and full participation in the workforce. As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division renews its commitment to ensuring that all individuals have an equal opportunity to work free from discrimination based on disability.”
“Even as we celebrate the 30th anniversary of the Americans with Disabilities Act, this case shows that barriers to equal employment opportunity still exist for employees with disabilities,” said U.S. Attorney Andrew E. Lelling for the District of Massachusetts. “Public employers must be leaders in prohibiting discrimination in public sector jobs and ensuring a fair workplace.”
July 26, 2020 marked the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
To read the settlement agreement, please click here, and to read the complaint, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Settles with Private School to Ensure Compliance with the ADARead the Press Release
WASHINGTON – The Justice Department today reached a settlement agreement with Ridgewood Preparatory School (Ridgewood) to ensure that students with disabilities are not discriminated against in the full and equal enjoyment of Ridgewood’s services and facilities. Ridgewood is a private, nonsectarian school in Metairie, Louisiana that provides education to children in pre-kindergarten to twelfth grade.
The settlement agreement resolves allegations that Ridgewood violated the Americans with Disabilities Act (ADA) by denying a child with spina bifida admission to its pre-kindergarten and kindergarten programs on the basis of his disability, failing to reasonably modify its policies, practices, and procedures to enable the child to access the school’s programs, and failing to ensure that its buildings and facilities are accessible to people with disabilities. The department’s investigation found that the school, among other things, had inaccessible doors, walkways, and bathrooms.
Under the agreement, Ridgewood will offer the child two years of tuition-free enrollment and, upon enrollment, provide him with reasonable modifications. Ridgewood will also modify its facilities to make them accessible to individuals with disabilities, revise its policies to ensure compliance with the ADA, train relevant staff on the ADA, and pay a $1,000 civil penalty to the United States.
“No child with a disability should be unlawfully denied admission to a school because of a disability, and no parent of a child with a disability should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division is committed to ensuring that no child with a disability is prevented from enrolling in the school of his or her choice because of discriminatory attitudes about children with disabilities and what they can achieve.”
“Thirty years after the passage of the Americans with Disabilities Act, cases like this demonstrate that there is still work to be done to ensure that children with disabilities do not face disability discrimination in education or otherwise,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Through this agreement, Ridgewood is taking important steps to make sure that all children in its programs, including children with disabilities, will be given the opportunity to have a positive and successful educational experience free from barriers.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
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Justice Department Settles with Private School to Ensure Compliance with the ADARead the Press Release
The Justice Department today reached a settlement agreement with Ridgewood Preparatory School (Ridgewood) to ensure that students with disabilities are not discriminated against in the full and equal enjoyment of Ridgewood’s services and facilities. Ridgewood is a private, nonsectarian school in Metairie, Louisiana, that provides education to children in pre-kindergarten to twelfth grade.
The settlement agreement resolves allegations that Ridgewood violated the Americans with Disabilities Act (ADA) by denying a child with spina bifida admission to its pre-kindergarten and kindergarten programs on the basis of his disability, failing to reasonably modify its policies, practices, and procedures to enable the child to access the school’s programs, and failing to ensure that its buildings and facilities are accessible to people with disabilities. The department’s investigation found that the school, among other things, had inaccessible doors, walkways, and bathrooms.
Under the agreement, Ridgewood will offer the child two years of tuition-free enrollment and, upon enrollment, provide him with reasonable modifications. Ridgewood will also modify its facilities to make them accessible to individuals with disabilities, revise its policies to ensure compliance with the ADA, train relevant staff on the ADA, and pay a $1,000 civil penalty to the United States.
“No child with a disability should be unlawfully denied admission to a school because of a disability, and no parent of a child with a disability should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division is committed to ensuring that no child with a disability is prevented from enrolling in the school of his or her choice because of discriminatory attitudes about children with disabilities and what they can achieve.”
“Thirty years after the passage of the Americans with Disabilities Act, cases like this demonstrate that there is still work to be done to ensure that children with disabilities do not face disability discrimination in education or otherwise,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Through this agreement, Ridgewood is taking important steps to make sure that all children in its programs, including children with disabilities, will be given the opportunity to have a positive and successful educational experience free from barriers.”
2020 marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Settles with Spencer East Brookfield Regional School District to Resolve Disability Discrimination ComplaintRead the Press Release
BOSTON – The Justice Department reached an agreement with Spencer East Brookfield Regional School District in Spencer, Mass. to resolve the Department’s lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA).
The Justice Department’s complaint alleged that the school district terminated a paraprofessional with knee and shoulder impairments on the basis of her disability after 16 years of employment. The school district denied the employee’s reasonable accommodation request that, due to her physical limitations, would have excused her from a new policy requiring paraprofessionals to be trained to physically restrain school children and be available to perform restraints.
Under the agreement, the school district will revise its policies to ensure compliance with the ADA, train staff on the ADA, and file periodic reports with the Justice Department on implementation of the agreement. The school district will also pay $85,699 in back pay and compensatory damages to its former employee. This matter was based on a referral from the Equal Employment Opportunity Commission’s Massachusetts District Office.
“Even as we celebrate the 30th anniversary of the Americans with Disabilities Act, this case shows that barriers to equal employment opportunity still exist for employees with disabilities,” said United States Attorney Andrew E. Lelling. “Public employers must be leaders in prohibiting discrimination in public sector jobs and ensuring a fair workplace.”
“Work provides more than just a paycheck: it provides a sense of purpose, dignity, independence, self-worth, and belonging,” said Assistant Attorney General Eric Dreiband. “Without reasonable accommodations for their jobs, many people with disabilities cannot work and, as a result, are unable to achieve economic self-sufficiency and full participation in the workforce. As we celebrate the 30th Anniversary of the ADA, the Civil Rights Division renews its commitment to ensuring that all individuals have an equal opportunity to work free from discrimination based on disability.”
This year marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
U.S. Attorney Lelling and AAG Dreiband made the announcement today. The case was handled by Assistant U.S. Attorney Torey Cummings of Lelling’s Civil Rights Unit and the Justice Department’s Civil Rights Division.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights
Jones County Man Convicted for Unlawful Possession of an Unregistered Destructive DeviceRead the Press Release
Hattiesburg, Miss. – Brian Richard Sanders, 66, of Laurel, pled guilty today before U.S. District Judge Keith Starrett, to the unlawful possession of an explosive destructive device not registered in the national firearms registration and transfer record, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Sanders is scheduled to be sentenced by Judge Starrett on November 18, 2020, at 11:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
On January 17, 2020, the ATF and the Jones County Sheriff’s Office received information that Sanders had manufactured and possessed an Improvised Explosive Device (IED) in his home in Laurel. The Sheriff’s Office obtained a search warrant for his home. ATF agents and members of the City of Biloxi Police Department Bomb Squad assisted in the search. Agents seized a pipe bomb, two bottles of black powder, a roll of red hobby fuse, several firearms, and ammunition. Additionally, they found a rifle that had what appeared to be a silencer attached.
An ATF Explosive Specialist/Bomb Technician, and Biloxi Bomb Squad members successfully disassembled the device in a safe area near the home, and were able to recover all pieces including the pipe with end-caps, red fuse, suspected black powder, and nails. As a destructive device, the pipe bomb was considered a firearm as defined within the National Firearms Act (NFA).
A query was conducted with the ATF National Firearms Act Division, which confirmed that both the pipe bomb explosive destructive device and silencer were not registered. A laboratory verified that the pipe bomb was in fact an explosive destructive device that was or readily could be made operable. The ATF also confirmed that the homemade silencer was a functioning silencer.
U.S. Attorney Hurst commended the coordinated investigation by the ATF, the Jones County Sheriff’s Office and the City of Biloxi Police Department Bomb Squad. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Japanese Shipping Company Fined $1.5 Million for Concealing Illegal Discharges of Oily WaterRead the Press Release
Misuga Kaiun Co. Ltd. (MISUGA), a Japanese-based company engaged in international shipping, was sentenced yesterday in federal court before U.S. District Court Judge Paul G. Byron in Orlando, Florida.
The company pleaded guilty to violating the Act to Prevent Pollution from Ships for failing to accurately maintain an oil record book that covered up discharges of oily water from the Motor Vessel (M/V) Diamond Queen. MISUGA was sentenced to pay a fine of $1.5 million, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
“The world’s oceans are an important natural resource,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This prosecution demonstrates the department’s continuing commitment to protecting our ocean resources and upholding the rule of law.”
“Our oceans and waterways are essential to the health and balance of the world’s ecosystem,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Those who act with reckless disregard for the safety of our environment by willfully polluting or contaminating it put everyone at risk, and will be held accountable for their actions.”
“The results announced today send a strong message to anyone who seeks to take shortcuts and intentionally pollute our environment,” said Rear Adm. Eric C. Jones, Commander Coast Guard District Seven. “I am proud of the hard work and dedication of our marine inspectors from Marine Safety Detachment Cape Canaveral, as well as our special agents from Coast Guard Investigative Service Southeast Region, during a time when many may think we are distracted by the pandemic. We will continue to work with our Department of Justice and environmental protection partners to hold accountable any who put profit above regulations, threaten our coastal ecosystems and jeopardize our waters and harbors for future generations.”
“The Coast Guard Investigative Service will continue to proactively investigate environmental crime, which costs our communities not only monetarily but also impacts the health and safety of our waterways, and all those who rely on them,” said Special Agent in Charge Zinnia James of the Southeast Region of the Coast Guard Investigative Service.
In pleading guilty, MISUGA admitted that the chief engineer onboard the M/V Diamond Queen, a 34,800 gross-ton, 656-foot ocean-going commercial bulk carrier, knowingly failed to record the overboard discharge of oily bilge water without the use of required pollution-prevention equipment. The discharges occurred on multiple occasions, from approximately April 2019 until the vessel arrived in Port Canaveral, Florida, on May 22, 2020. The chief engineer, Cloyd Dimapilis, also pleaded guilty to falsifying the oil record book, and was sentenced to one year of probation.
According to the plea agreement, MISUGA operated the M/V Diamond Queen. Prior to the ship’s arrival in Port Canaveral on May 22, a junior crewmember informed the U.S. Coast Guard that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard dispatched Port State Control Examiners to conduct an inspection of the vessel. Examiners discovered evidence of the system that was used to discharge oily water from the vessel in order to bypass the vessel’s oily water separator.
Senior Trial Attorney Kenneth Nelson of the Environmental Crimes Section and Assistant U.S. Attorney John Gardella of the Middle District of Florida are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service, Marine Safety Detachment Port Canaveral, and Coast Guard Sector Jacksonville.
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.
Indictment: 2019 Kidnapping Took Place in Wyandotte CountyRead the Press Release
KANSAS CITY, KAN. – A grand jury in Kansas City, Kan., returned kidnapping charges Wednesday against six defendants, U.S. Attorney Stephen McAllister said.
The superseding indictment builds on an indictment initially filed under seal late last year alleging the kidnapping took place in April 2019 in Wyandotte County. The indictment alleges a ransom was paid and that some of the defendants carried firearms during the crime. The indictment identifies the victim only as D.B. and provides no further details of the crime. The federal penalty for kidnapping is up to life in prison.
Charged in the case are the following:
David Carr, 34, Kansas City, Kan., one count of kidnapping (count one), one count of brandishing a firearm during the crime (count four).
Brandon West, 34, Kansas City, Kan., one count of kidnapping (count one), one count of receiving and possessing ransom money (count two), one count of brandishing a firearm during the crime (count four).
Randi Serna, 30, Wichita, Kan., one count of kidnapping (count one).
Brian Spaulding, 30, Mission, Kan., one count of kidnapping (count one), one count of discharging a shotgun during the crime (count three).
Michael Huggins, 39, one count of kidnapping (count one), one count of receiving and possessing ransom money (count two),
James Michael Poterbin, 44, one count of kidnapping (count one), one count of brandishing a firearm during the crime (count four).
Upon conviction, the crimes carry the following penalties:
Kidnapping: Up to life in federal prison and a fine up to $250,000.
Receiving ransom money: Up to 10 years and a fine up to $250,000.
Brandishing a firearm in a crime of violence (counts three and four): Not less than five years and a fine up to $250,000.
The FBI investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Health Care Executive Sentenced to 20 Years in TRICARE Fraud CaseRead the Press Release
The health care executive at the center of a $70 million compounded pain and scar cream fraud has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In December 2019, after six days of deliberation, a federal jury convicted John Paul Cooper, 56, of one count of conspiracy to commit health care fraud, one count of receipt of illegal kickbacks, and six counts of payment of illegal kickbacks. Mr. Cooper was sentenced Tuesday by Chief U.S. District Judge Barbara M.G. Lynn.
“This defendant siphoned millions of dollars from Defense Department’s health insurance program, with little regard for whether its patients would actually benefit from the prescriptions he pushed,” said U.S. Attorney Erin Nealy Cox. “His greed tainted their care.”
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office. "Fraudulent healthcare schemes not only expose beneficiaries to potential harm, but also waste valuable taxpayer dollars. Today's sentencing is a culmination of DCIS' efforts, along with our partners, to combat such fraud."
According to evidence presented at trial, Mr. Cooper, president and co-owner of pharmaceutical marketing group CMGRX, conspired with Richard Robert Cesario, CMGRX CEO and co-owner, to defraud TRICARE, the Defense Department’s health insurance program for military servicemembers and their families.
The evidence showed that CMGRX hired marketers to recruit more than 2,300 patients, many of whom were on active duty at Fort Hood, and incentivized them to obtain costly pain and scar cream prescriptions with their TRICARE benefits in exchange for kickbacks of $250 per prescription.
Mr. Cooper and Mr. Cesario disguised these illegal kickbacks by claiming they were payments for participation in a bogus medical study and by funneling the money through the “Freedom from Pain Foundation,” a sham charity they funded, directed, and controlled.
Evidence showed that CMGRX also paid multiple doctors, who had no prior relationship with the patients, to write their prescriptions after brief telephone calls. However, instead of giving the prescriptions to the patients, Mr. Cooper and Mr. Cesario instructed the doctors to send the signed prescriptions back to CMGRX, so that the company could send the prescriptions to partner pharmacies. In exchange for those prescription referrals, the pharmacies billed TRICARE for the drugs and kicked back a percentage of the reimbursement to CMGRX.
From September 2014 through May 2015, CMGRX caused over $124 million in claims to be billed to TRICARE, $70 million of which were paid.
Mr. Cesario – who pleaded guilty before trial to conspiracy to commit health care fraud and receipt of illegal remuneration – is awaiting sentencing. CMGRX marketers Joe Straw and Luis Rios also pleaded guilty before trial and are likewise awaiting sentencing.
The owners of CMGRX partner pharmacy Trilogy, Jeff Fuller and Andrew Baumiller, and one of their employees, Liz Valdez, pleaded guilty before trial as well. Mr. Fuller was sentenced by Judge Lynn to five years in prison. Mr. Baumiller and Ms. Valdez are awaiting sentencing. Ravi Morisetty, the owner of CMGRX partner Alpha Pharmacy, pled guilty and was sentenced to two years in prison. Mr. Morisetty did not report to the Bureau of Prisons to serve his sentence and remains a fugitive.
Two doctors associated with CMGRX, Walter Simmons and William Elder-Quintana, are scheduled to be retried later this year, after the jury failed to reach unanimous verdicts on counts against them.
The Defense Criminal Investigative Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Douglas Brasher and Renee Hunter are prosecuting the case.
Greece Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kwashie Ajavon, 33, of Greece, NY, who was convicted of possessing with intent to distribute crack cocaine, and being a felon in possession of a firearm and/or ammunition, was sentenced to serve 87 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that on August 13, 2019, law enforcement officers executed a search warrant at the defendant’s residence on Estall Road in Greece. During the search, officers recovered three loaded firearms, approximately $1,200 in cash, methamphetamine, marijuana, and drug packaging materials and cutting agents. Officers also searched a vehicle pursuant to a search warrant and recovered a quantity of crack cocaine and a scale.
In 2008, Ajavon was convicted of Criminal Possession of a Weapon in the Second Degree in Monroe County Court and sentenced to 42 months in prison. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
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Grand Jury Returns Indictment in Pipeline Drug Case Charging Pair with Possession of Marijuana with Intent to DistributeRead the Press Release
SALT LAKE CITY – A federal grand jury returned a two-count indictment Wednesday afternoon charging two individuals with possession of marijuana with intent to distribute in a pipeline drug case originating from the Utah Port of Entry off Interstate 80 near Wendover. Law enforcement officers found approximately 341 pounds of marijuana in a commercial truck they were traveling in.
“This case is unique only because of the amount of marijuana seized in a semi-truck. Every week, Utah law enforcement officers intercept loads of marijuana transiting Utah’s highways from the west coast to points east. In return, Utah officers will also intercept large bundles of drug-related cash traveling back from the east to the west coast,” U.S. Attorney John W. Huber said. “Policy makers and voters in west coast jurisdictions have created dynamics that negatively impact public safety in Utah. Simply put, these west coast marijuana havens cannot control the black market and overproduction dynamics they have created, and Utah is left to fend for ourselves in maintaining the quality of life we enjoy.
“I remind marijuana traffickers who hope to hide amidst the camouflage of state laws that allow marijuana production: federal law prohibits your conduct and I will enforce those provisions of the law in Utah. Marijuana traffickers may want to rethink their travel plans,” Huber said.
According to charging documents, an agent with the Utah Port of Entry made contact with the driver of the commercial semi-truck and trailer following an overweight reading at the Port of Entry. The driver of the truck was identified with a North Carolina driver’s license as Florin Daniel Goran, 36. Goran is a Romanian citizen. A passenger in the truck was identified as Claudia Marie De Marco, 35, of Hermosa Beach, California.
The agent at the Port of Entry conducted a commercial vehicle safety inspection. When the agent opened the door to the vehicle during the inspection, the agent detected the odor of raw marijuana coming from inside the cab. The agent requested a Utah Highway Patrol trooper be dispatched to the Port of Entry for further investigation. The trooper also detected the odor of marijuana in the cab, the complaint alleges.
A search of the cab was conducted and a black garbage bag was located behind the driver’s seat in a passenger compartment. The bag contained 11 clear bags with approximately 1-pound of suspected raw marijuana in each one of them.
As a part of the inspection, the Utah Port of Entry agent reviewed material noting the semi-trailer contained a shipment of Pedialyte headed to Columbus, Ohio. Opening the vent door to the trailer, the agent could smell marijuana. Another officer, who had arrived at the scene, looked through the vent door with a flashlight and could see large black garbage bags and unsecured boxes inside, the complaint alleges.
The truck was sealed and taken, along with the two suspects, to the Tooele County UHP office. A DEA Metro Narcotics Task Force officer responded to the office for further investigation and a search of the semi’s cab and trailer was conducted.
According the complaint, the trailer contained 330 packages of raw marijuana in clear and black vacuum-sealed bags, each appearing to be approximately 1-pound packages. Law enforcement officers also found 1,240 THC vape cartridges, 150 THC chocolate bars, and 126 packages of THC edibles in the trailer. The raw marijuana tested positive for marijuana.
Goron is charged with possession of marijuana with intent to distribute in the first count of the indictment. He faces up to 40 years in prison if convicted of the charge with a mandatory minimum of 5 years in prison. DeMarco is charged with possession of marijuana with intent to distribute in the second count of the indictment. She faces up to five years in prison if convicted of the charge.
Complaints and indictments are not findings of guilt. Defendants charged in these documents are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and an Assistant Utah Attorney General, designated as a Special Assistant U.S. Attorney. Special agents, troopers, and officers with the DEA Metro Narcotics Task Force, the Utah Highway Patrol, the Utah State Bureau of Investigation, and the Wendover Police Department are investigating the case. An agent with the Utah Department of Transportation’s Motor Carrier Division, Wendover Port of Entry is also assisting with the case.
Gautier Man Charged with Assault on U.S. Marshals Service Task Force OfficersRead the Press Release
Gulfport, Miss – Joseph D. Sonnier, 31, of Gautier, Mississippi, has been charged in an indictment, returned by a Federal Grand Jury on July 28, 2020, with four counts of assault on an officer or employee of the government, one count of felon in possession of a firearm and four counts of discharging a firearm in connection with a violent crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Sonnier will have his initial appearance before United States Magistrate Judge John Gargiulo in Gulfport on Thursday, August 6, 2020, at 10:00 a.m.
According to Count 1 of the indictment, Sonnier is alleged to have fired a firearm at J.M., a U.S. Marshals Service Task Force officer, in the course of his duties as he attempted to execute a search warrant, striking J.M. in the neck. According to Counts 2-4 of the indictment, Sonnier is alleged to have used a deadly weapon to assault, impede or otherwise restrict three other officers as they attempted to execute the same search warrant. According to Count 5 of the indictment, Sonnier is alleged to have been in possession of a firearm even though he is prohibited as a convicted felon. According to Counts 6-9 of the indictment, Sonnier is alleged to have discharged a firearm in the commission of a crime of violence.
If convicted, Sonnier faces a maximum penalty of 20 years in prison on each count of assaulting a federal officer, a maximum penalty of 10 years in prison for being a felon in possession of a firearm, and 10 years on each count of discharging a firearm in connection with a violent crime.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Erica Rose.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Garland Chiropractic Owners Sentenced to More Than Three Years for Tax FraudRead the Press Release
Two owners of a Garland chiropractic clinic were sentenced yesterday to 37 months in federal prison and ordered to repay approximately $350,000 for tax fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tammy Boulyaphonh, 51, was convicted by a federal jury on all five counts against her, including one count of conspiring to defraud the United States by underreporting income and four counts of filings false tax returns in February. Her husband, 59-year-old Khamlor Boulyaphonh had pleaded guilty to similar counts days before trial. The defendants were sentenced yesterday before U.S. District Judge Jane J. Boyle.
“This sentencing is a reminder that there are consequences to criminal tax evasion that include going to prison, being branded a convicted felon for the rest of their lives, and paying back all of the taxes owed,” said Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation Dallas Field Office. “This should resonate with those contemplating similar fraudulent actions.”
According to court documents, Mr. and Ms. Boulyaphonh owned and operated chiropractic clinics in Dallas-Fort Worth that provided medical care principally to patients injured in motor vehicle accidents. The majority of the couples’ business income was derived from payments received from insurance companies and payments received from attorneys who had received insurance settlement payments on behalf of their patients.
Ms. Boulyaphonh directed multiple personal injury attorneys to make checks out to her and her husband personally, then diverted the attorney payments to the couple’s personal bank accounts. Mr. and Ms. Boulyaphonh concealed the diverted income from their tax preparer and provided him with false documents to advance the scheme.
At trial, prosecutors established that the couple had paid less than $4,000 total tax on gross receipts of more than $2 million, all while owning two homes, two luxury vehicles, $1 million life insurance policies, and luxury goods.
Between 2010 and 2013, the couple concealed more than $1.2 million in business income from the IRS.
IRS-Criminal Investigation and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Douglas Brasher is prosecuting the case.
Former West Virginia University professor sentenced for fraud that enabled him to participate in the People’s Republic of China’s “Thousand Talents Plan”Read the Press Release
CLARKSBURG – Dr. James Patrick Lewis, of Fairview, West Virginia, was sentenced today to three months incarceration for a fraud charge involving West Virginia University, the Department of Justice announced.
Lewis was also fined $9,363 for the cost of the incarceration and ordered to pay $20,189 in restitution to WVU, which is paid in full.
Lewis, age 54, pleaded guilty to a one-count information charging him with "Federal Program Fraud." From 2006 to August 2019, Lewis was a tenured professor at West Virginia University in the physics department, specializing in molecular reactions used in coal conversion technologies. In July 2017, Lewis entered into a contract of employment with the People’s Republic of China through its "Global Experts 1000 Talents Plan." China’s Thousand Talents Plan is one of the most prominent Chinese Talent recruit plans that are designed to attract, recruit, and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security. These talent programs seek to lure overseas talent and foreign experts to bring their knowledge and experience to China and reward individuals for stealing proprietary information.
According to Lewis’s contract, the Chinese Academy of Sciences agreed to employ Lewis as a professor for at least three years. In return, Lewis agreed to maintain an active research program that yielded publications in high quality, peer-reviewed journals, and to provide research training and experience for Chinese Academy of Sciences students.
As a part of the program, Lewis was promised benefits, including a living subsidy of 1 million Yuan (approximately $143,000), a research subsidy of 4 million Yuan (approximately $573,000), and a salary of 600,000 Yuan (approximately $86,000). To receive the benefits, Lewis would have to work full time in China for three consecutive years, for no less than nine months per year, and would have to begin work no later than Aug. 8, 2018.
In March 2018, Lewis submitted a request to WVU for an alternate/parental work assignment, requesting to be released from his teaching duties for the fall 2018 semester in order to serve as the primary caregiver for a child he and his wife were expecting in June 2018. In fact, however, Lewis knew this request was fraudulent. Rather than caring for his newborn child, Lewis planned to work in China during the fall 2018 semester as a part of his agreement with the "1000 Talents Plan." Based on the false justification Lewis offered, WVU granted his request.
In the fall of 2018, Lewis spent all but three weeks of the semester in China while his newborn child remained in the United States. During this period, Lewis received his full salary from WVU pursuant to his alternate/parental work assignment. Lewis’s scheme allowed him to fraudulently obtain $20,189 from WVU.
Lewis is no longer employed by WVU, having resigned in August 2019. He was ordered to self-report to prison in 30 days.
Assistant U.S. Attorney Jarod J. Douglas and Trial Attorney Evan N. Turgeon with the Department of Justice’s Counterintelligence and Export Control Section, National Security Division, prosecuted the case on behalf of the government. The FBI and the Internal Revenue Service investigated. WVU cooperated in the investigation of this case.
U.S. District Judge Thomas S. Kleeh presided.
Former Schertz Business Manager Pleads Guilty to Stealing over $470,000 from CompanyRead the Press Release
Today, 47-year-old Deanna Bates Wehde of San Antonio admitted to stealing over $470,000 from the company she managed, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Henry Bemporad, Wehde pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Wehde admitted that while employed by Stone Care of Texas between May 2016 and September 2018, she defrauded the company by using company credit cards issued in the names of former employees for business-related travel to make unauthorized purchases and cash withdrawals for her own personal use and benefit.
Wehde faces up to 20 years in federal prison for wire fraud and a mandatory consecutive sentence of two years in federal prison for aggravated identity theft as well as restitution to the company. Wehde remains on bond pending sentencing scheduled for November 5, 2020, before Chief U.S. District Court Judge Orlando Garcia in San Antonio.
The FBI investigated this case. Assistant U.S. Attorney William R. Harris is prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Prison Guard Sentenced to Prison for Smuggling ContrabandRead the Press Release
LITTLE ROCK—A Wynne man was sentenced today for his role in smuggling tobacco and cellular telephones into the Federal Correctional Complex in Forrest City where he worked as a guard. United States District Court Judge Kristine G. Baker sentenced Josue Duane Garza, 42, to 12 months and one day in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
In June 2018, an inmate at the Federal Correctional Complex in Forrest City, Arkansas, informed prison officials that his family had been purchasing tobacco and cell phones and mailing them, along with cash, to Garza at a P.O. Box in Colt. The inmate reported that another inmate had started the scheme but had been transferred to another facility, leaving this inmate to take over the scheme.
Both inmates confirmed that their parents had purchased tobacco and cell phones, mailed them to Garza’s P.O. Box, and included cash. The parents received money orders and cash from other inmates’ families, who were paying for the inmates’ purchases. The inmates said they split the proceeds with Garza. In an interview, Garza admitted that he had conducted the scheme from October 2017 through July 2018 and received over $40,000. On August 23, 2019, Garza pleaded guilty to an Information charging him with Bribery of a Public Official.
“This defendant’s blatant contraband scheme was an abuse of his authority as a federal prison guard,” U.S. Attorney Hiland said. “Smuggling illicit cell phones into prison allows convicted felons to continue their criminal activity, even from inside the prison walls. Today’s sentence demonstrates that those who seek to profit from these underhanded dealings will soon find themselves among the inmates they formerly enabled.”
In addition to the prison term, Garza was sentenced to one year of supervised release following his imprisonment. The investigation was conducted by the Federal Bureau of Prisons, Department of Justice Office of Inspector General and U.S. Postal Inspection Service, and the case was prosecuted by Assistant United States Attorney Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Mexican Secretary of Public Security Genaro Garcia Luna Charged with Engaging in a Continuing Criminal EnterpriseRead the Press Release
A superseding indictment was returned today in federal court in Central Islip, New York, charging Genaro Garcia Luna, the former Secretary of Public Security in Mexico from 2006 to 2012, with engaging in a continuing criminal enterprise. Luis Cardenas Palomino and Ramon Pequeno Garcia, former high-ranking Mexican law enforcement officials who worked under Garcia Luna, are each charged with three counts of cocaine trafficking conspiracy. In exchange for multimillion-dollar bribes, the defendants allegedly permitted the Sinaloa Cartel to operate with impunity in Mexico. Garcia Luna was arrested on December 9, 2019 by federal agents in Dallas, Texas, and he is presently pending trial in the Eastern District of New York to face these charges. Cardenas Palomino and Pequeno Garcia are presently fugitives.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the superseding indictment.
"As alleged, for nearly two decades Garica Luna betrayed those he was sworn to protect by accepting bribes from members of the Sinaloa Cartel to facilitate their crimes and empower their criminal enterprise,” stated Acting United States Attorney DuCharme. “Through today’s superseding indictment, Garcia Luna and his co-conspirators will face justice for offenses involving the importation and the distribution of massive quantities of dangerous drugs into the United States.” Mr. DuCharme thanked the Drug Enforcement Administration (DEA) offices in New York and Houston for their work on the case.
As set forth in the superseding indictment and other court filings, from 2001 to 2012, while occupying high-ranking law enforcement positions in the Mexican government, Garcia Luna received millions of dollars in bribes from the Sinaloa Cartel in exchange for providing protection for its drug trafficking activities. From 2001 to 2005, Garcia Luna led Mexico’s Federal Investigation Agency, and from 2006 to 2012, he served as Mexico’s Secretary of Public Security, controlling Mexico’s Federal Police Force. Cardenas Palomino and Pequeno Garcia also were high-level Mexican law enforcement officials who worked under Garcia Luna during this time. They each received millions of dollars in bribes from the Sinaloa Cartel.
In exchange for the payment of bribes, between January 2001 and the present, the defendants abused their public positions by allowing the Sinaloa Cartel to obtain safe passage for its drug shipments, and by providing sensitive law enforcement information about investigations into the Cartel, and information about rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States. For example, between 2002 and 2007, Garcia Luna allegedly aided at least six cocaine shipments totaling more than 50,000 kilos of cocaine. Additionally, the defendants placed other corrupt officials in positions of power in certain areas of Mexico controlled by the Sinaloa Cartel. On at least two occasions, the Cartel personally delivered bribe payments to Garcia Luna in briefcases containing millions of dollars.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of the continuing criminal enterprise charge, Garcia Luna faces a mandatory minimum sentence of 20 years’ imprisonment and a maximum of life imprisonment. If convicted of a drug conspiracy charge, Cardenas Palomino and Pequeno Garcia each face a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being prosecuted by the Eastern District’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendants:
GENARO GARCIA LUNA
Age: 51
FloridaLUIS CARDENAS PALOMINO
Age: 51
MexicoRAMON PEQUENO GARCIA
Age: 53
MexicoE.D.N.Y. Docket No. 19-CR-576 (BMC)
Five Central Ohioans charged in conspiracy to kidnap Hilliard couple, impersonate law enforcementRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted a victim’s ex-girlfriend and four of her associates for conspiring and attempting to kidnap her ex-boyfriend and his girlfriend. The indictment was filed today.
Denia I. Avila, 37, of Columbus, and co-conspirators allegedly impersonated federal law enforcement officers and used a Taser while attempting to kidnap the victims.
The four others charged include, Jessica E. Wise, 38, of Columbus; Ellis L. Ray, II, 19, of Canal Winchester; Michael K. Ousley, 43, of Columbus; and Jerry E. McCallister, Jr, 27, of Columbus.
According to court documents, the co-conspirators attempted to kidnap the two individuals on Nov. 25, 2019, and Dec. 4, 2019, near the victims’ residence in Hilliard.
An affidavit details that during the first attempt, two males wearing all black with black face masks approached the victims as they entered a vehicle around 5:30am. They Tased the male victim’s neck and attempted to remove him from his vehicle. The female victim screamed and the male victim was able to push the attacker back, causing both men to flee on foot.
In the second incident, also before 5:30 a.m., the female victim attempted to leave their residence in the male’s vehicle but was blocked in by the suspect’s vehicle.
It is alleged that two males – wearing black jackets with “Police” jacket patches and holding a photograph of the male victim – approached the truck yelling “Police, open the door.” They attempted to open the truck door, but the victim began honking her horn and drove over a curb to escape the area.
Detectives discovered two videos in which Avila and Wise discuss plans for kidnapping and injuring the victims. A Taser and leg shackles are shown in the videos. Throughout the videos, the two women allegedly discuss disposing of the victims’ vehicles, locking the male victim in a hotel room, leaving the female victim beaten in a remote location, and various ways to evade law enforcement.
In the videos, Avila allegedly states she knows the victims would be too fearful to go to the authorities because she helped smuggle the male victim back into the United States after he was deported, and therefore she knew he was here illegally.
Receipts show the co-conspirators also purchased “Immigration” patches. Avila’s work cell phone had a screenshot on “how ICE (Immigration and Customs Enforcement) makes arrests” and searches including “ICE Federal Agent Halloween Costume.”
“In what some might think is a plot line for a movie, these individuals allegedly devised an elaborate scheme involving the impersonation of federal law enforcement agents to kidnap someone,” said Vance Callender, HSI special agent in charge for Michigan and Ohio.
“Not only did the alleged perpetrators try and fail to kidnap the victim, they tried a second time and failed,” said Keith Barwick, ICE Office of Professional Responsibility special agent in charge. “The suspects left a wide trail of evidence that agents and detectives were able to collect, follow, and use to arrest multiple coconspirators.”
The five defendants were charged by criminal complaint on July 15.
Conspiracy to commit kidnapping is a federal crime punishable by up to life in prison. Attempted kidnapping is punishable by up to 20 years in prison. Conspiring to impersonate an Officer of the United States carries a maximum sentence of up to five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Keith Barwick, Special Agent in Charge, ICE Office of Professional Responsibility; and Hilliard Division of Police Chief Robert Fisher announced the charges. The Department of Homeland Security Office of Inspector General and ICE Office of Professional Responsibility also assisted in the case.
“The outcome of this case could have been very tragic without the exhaustive initial investigation by our detectives, and the ongoing and thorough collaboration with federal agencies,” said Hilliard Chief of Police Robert Fisher. “Hilliard citizens can feel reassured knowing the individuals who put this disturbing plan in place will be held accountable for their actions.”
Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Federal grand jury indicts Ohio House Speaker enterprise in federal public corruption racketeering conspiracy involving $60 millionRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted the Ohio Speaker of the House in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout. The 43-page indictment was returned on July 29 and filed today.
Larry Householder, 61, of Glenford, Ohio, four other individuals and 501(c)(4) entity Generation Now were previously charged by a criminal complaint that was unsealed on July 21.
It is alleged that the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
The four other individuals indicted include:
- Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
- Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
- Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
- Juan Cespedes, 40, of Columbus, a multi-client lobbyist.
Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.
According to court documents, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.
The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.
As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit. When asked how much money was in Generation Now, Clark said, “it’s unlimited.”
The affidavit filed in support of the criminal complaint also alleges:
- In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election. The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents. Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.
- Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.
- Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.
- The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.
“Dark money is a breeding ground for corruption. This investigation continues,” U.S. Attorney David M. DeVillers said.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.
The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.
If you have information related to the public corruption alleged in this case, please contact the FBI at 614-849-1777.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Federal Grand Jury Returns Indictment Charging Tennessee State Senator Katrina Robinson for Theft and Embezzlement Involving Government Programs and Wire FraudRead the Press Release
Memphis, TN – Tennessee State Senator Katrina Robinson, 39, has now been indicted for theft and embezzlement involving government programs and wire fraud. Robinson was previously charged in this matter by a federal criminal complaint that was unsealed on Wednesday, July 29, 2020. On Thursday, July 30, 2020, a federal grand jury in Memphis returned a 48-count indictment against Robinson, charging her with 24 counts of theft and embezzlement involving government programs, and 24 counts of wire fraud. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, Katrina Robinson is the Director of The Healthcare Institute (THI), a provider of educational and training programs for jobs in the healthcare field. She is also a Tennessee State Senator, having been elected to represent the 33rd District in Shelby County in 2018.
Between 2015 and 2019, The Healthcare Institute received over $2.2 million in federal grants from the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services. During that same time period, Robinson stole in excess of $600,000 from THI by compensating herself in excess of what was allowed under the terms of the HRSA grant and by using Institute funds for payments and purchases for her own personal benefit and that of her immediate family.
Payments and purchases included a vehicle for her daughter; clothing, accessories, and hair and beauty products; expenses related to her wedding and honeymoon, and later, legal fees for her divorce; payments on her personal debts, including credit cards, store charge cards, student loans, and other personal loans; travel and entertainment for herself and her family; improvements to her personal residence; expenses related to a body aesthetics business she owned and a snow cone business operated by her children; and an event for her State Senate campaign.
If convicted, Robinson faces a possible sentence of up to 20 years in federal prison, 3 years supervised release, and a $250,000 fine. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury and federal grant programs against theft, fraud, waste, and abuse is a top priority of this office and the Department of Justice. We commend the FBI and the HHS-OIG for their diligent and thorough investigation in this case."
"Anyone who seeks to take advantage of government programs will be vigorously investigated by the FBI, regardless of who they are or any position they hold," said Acting Special Agent in Charge Jermicha L. Fomby of the Memphis Field Office of the Federal Bureau of Investigation. "The public should know that the FBI will continue to work diligently with our law enforcement partners to identify and investigate those who seek to exploit government programs and line their own pockets."
This case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Department of Health and Human Services –Office of the Inspector General (HHS-OIG).
Assistant U.S. Attorney Christopher E. Cotten is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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FBI Arrests San Antonio Man for Distribution of Child PornographyRead the Press Release
Today, federal authorities arrested 62–year-old Juan Benavidez of San Antonio and filed a federal criminal complaint charging him with distributing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
FBI agents executed a search warrant today at the defendant’s address and seized his cell phone. A preliminary examination of the iPhone revealed the presence of multiple image files depicting minors engaged in sexually explicit activity as well as the use of the mobile messaging application named Kik to receive and distribute files depicting child pornography between April and June of this year.
Benavidez remains in federal custody pending a detention hearing anticipated for next week. Upon conviction, Benavidez faces between five and 20 years in federal prison.
The FBI’s San Antonio Crimes Against Children Task Force is investigating this case. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Ennis pharmacist pleads guilty to opioid distributionRead the Press Release
MISSOULA – An Ennis pharmacist accused of diverting opioids today admitted to unlawfully dispensing an opioid and obtaining personal opioid prescriptions by fraud or forgery, U.S. Attorney Kurt Alme said.
Bradley John Stoick, 70, of Hailey, Idaho, pleaded guilty to dispensing a controlled substance by a practitioner and to acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. Stoick faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Stoick was released pending further proceedings. Sentencing was set for Nov. 19.
"It is critical that pharmacists and other licensed providers comply with the law when dispensing all drugs, especially opioids. When a health care professional, like Mr. Stoick, abuses his position to divert and steal opioids, he will be prosecuted," U.S. Attorney Alme said.
The prosecution said in court records that Stoick was the pharmacist-in-charge of Ennis Pharmacy in Ennis. In 2019, Drug Enforcement Administration investigators conducted a routine administrative inspection of Ennis Pharmacy and discovered numerous prescriptions for Stoick for Norco 10-325mg, a drug which contains Hydrocodone, a powerful opioid and a Schedule II controlled substance. Stoick filled those prescriptions for himself as the on-duty pharmacist. The doctor whose name and signature were on those prescriptions never saw Stoick as a patient and did not issue any of those prescriptions.
In addition, computer records at the pharmacy showed that Stoick altered a prescription for a friend. He modified the strength of the prescription from Norco 5-325mg up to Norco 10-325mg, which contains twice as much Hydrocodone. He also increased the amount of the prescription from 45 pills to 120 pills. Stoick then filled the prescription himself and mailed it to his friend in Utah.
In a separate civil case settled earlier this month, Ennis Pharmacy agreed to pay a $125,000 fine and make several changes to its operating procedures.
Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by the DEA.
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East Lake Man Convicted on Six Counts of VandalismRead the Press Release
RALEIGH, N.C. – Richard Gregory Perrot appeared in federal court before Chief United State District Judge Terrence W. Boyle, and was found guilty on 6 counts of vandalism to two separate motor vehicles. Perrot is awaiting sentencing, which is scheduled in Raleigh on September 14, 2020.
Perrot was arrested and charged with 4 counts of vandalism on August 11, 2019, after he vandalized a vehicle by puncturing its tires at Ramp 23 within Cape Hatteras National Seashore. Additionally, Perrot was charged with two counts of vandalism of a motor vehicle by puncturing tires in an incident at Coquina Beach on August 9, 2019. Each of these charges carries up to a 6 months’ imprisonment, a $5,000 fine, up to one-year supervised release, and /or up to 5 years’ probation.
According to the investigation, between July and August of 2019, U.S. Park Rangers responded to 18 separate incidents of vehicles having their tires slashed. In several incidents, Perrot and/or his vehicle were observed in the same parking lot as the vandalized vehicles.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Terrence W. Boyle accepted the verdict. The U.S. National Park Service and the U.S. Fish and Wildlife Service investigated the case and Assistant U.S. Attorney Aakash Singh 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.2:19-mj-01070-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
East Idaho Man Pleads Guilty to Knowingly and Fraudulently Concealing Assets in a Bankruptcy ProceedingRead the Press Release
POCATELLO - Andrew Welch, 46, of Idaho Falls, pleaded guilty to knowingly and fraudulently concealing assets in a bankruptcy proceeding and agreed to immediately forfeit $25,000 to the United States, U.S. Attorney Bart M. Davis announced today. Welch was indicted by a federal grand jury in Pocatello on August 27, 2019. Sentencing is set for October 14, 2020, before U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
According to court records, Welch, a former pharmacist in Ketchum, Idaho, filed a voluntary Chapter 7 bankruptcy petition and supporting documents on April 3, 2014, and listed general unsecured debts totaling $273,840.88. Welch, however, signed the petition and supporting documents under the penalty of perjury, falsely stating he did not own any real property and that he only had personal property worth $13,564.60.
Welch knowingly and fraudulently failed to disclose in the bankruptcy petition and supporting documents the transfer of more than $250,000 of his own funds to an investment account held in the name of another individual. Those transfers occurred through cashier’s checks, cash deposits, wire transfers, and money orders between September 2012 and January 2015, and Welch made all the transfers to conceal such funds.
Welch also knowingly and fraudulently failed to disclose his purchase of real property in Idaho Falls for $123,500 in January 2012, or the ensuing fraudulent transfer of the real property to a second individual, who did not provide Welch with any value for the real property. In addition, Welch falsely testified under oath during the bankruptcy proceedings that he had no interest in the aforementioned investment account or real property, which in truth and fact, he did.
Welch faces up to five years in federal prison, a maximum fine of $250,000, and one year of supervised release.
This case was investigated by the Internal Revenue Service Criminal Investigation.
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Eagle Butte Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Larceny was sentenced on July 29, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Yesica Rose Lara, age 34, was sentenced to time served through July 29, 2020, 3 years of supervised release, restitution in the amount of $2,119.42, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lara was indicted by a federal grand jury on March 9, 2020. She pled guilty on July 29, 2020.
The conviction stemmed from incidents that occurred between July 29, 2018, and September 11, 2018, when Lara did unlawfully forge checks from closed bank accounts, and passed and attempted to cash them at multiple locations in Eagle Butte.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Lara was immediately released.
Drug delivery man handed 27-year sentence for selling methRead the Press Release
HOUSTON – A 26-year-old man has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute meth in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Carlos Solorio aka Christian Hernandez, Santa Rosa, California, pleaded guilty Dec. 13, 2019.
Today, U.S. District Judge Sim Lake handed Solorio a 324-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard about Solorio’s significant activity related to drug trafficking – distribution in the Houston area, maintenance of a property to distribute the narcotics and remitting funds to Mexico in support of cartel activity. In handing down the sentence, Judge Lake noted that Solorio came to Houston from California to distribute narcotics and that his conduct warranted the significant sentence.
In May 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor. The agent ordered three kilograms of the narcotics which were expected to be delivered to the Spring Branch area of Houston just north of the Katy Tollway. Solorio delivered the drugs.
Law enforcement then followed him back to his stash house. They conducted a search which resulted in the location and seizure of approximately 80 kilograms of meth.
Solorio has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and High Intensity Drug Trafficking Areas task force conducted the investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Dominican National Pleads Guilty to Distributing FentanylRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to distributing fentanyl.
Jose Guerrero-Soto, 26, pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 21, 2020. Guerrero-Soto was initially charged by criminal complaint and has been in custody since Sept. 12, 2019.
With a companion, Guerrero-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
Disaster and pandemic scams target Texas residentsRead the Press Release
HOUSTON – Authorities are warning Texans of potential fraud following the landfall of Hurricane Hanna while continuing to remind the public of coronavirus-related scams, announced U.S. Attorney Ryan K. Patrick.
As residents continue to deal with the issues surrounding COVID-19, some have the added burden of surviving in the aftermath of Hurricane Hanna which made landfall in South Texas along the Coastal Bend area over the weekend.
The U.S. Attorney’s Office works with a multitude of federal, state and local agencies to address the varied threats resulting from natural disasters such as Hurricane Hanna as well as scams related to national crises. These disasters often bring out the best in human compassion and spirit, but can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent claims to insurance companies and federal government
- Fraudulent activity related to donations and charitable giving
- Price gouging
- Theft, looting and other violent crime
“Along the Gulf Coast we are well practiced in disaster fraud,” said Patrick. “Anyone who lies, cheats or steals to receive federal benefits they would not otherwise get, will be prosecuted by my office.”
The added issues surrounding the coronavirus pandemic compounds the possible instances of fraud and other types of illegal activity. In addition to the economic payment scams previously reported, several other fraudulent schemes involve masks, personal protection equipment (PPE) and other COVID-19 related items. The public is reminded to exercise increased due diligence and caution when dealing with new suppliers or vendors, especially when using a third-party broker.
As demand for PPE increases, scammers may advertise equipment they do not actually have in attempts to make a quick profit. These PPE products may be counterfeit and mislabeled, and some may not exist at all. Some fraudsters reach out directly to consumers and government entities through email or social media to push their products. Red flags that a seller may be engaging in a scam include:
- Unusual payment terms
- Last-minute price changes
- Last-minute excuses for delay in shipment
- Unexplained source of a large quantity of material
- Evidence of re-packaging or mislabeling
Members of the public are encouraged to contact The National Center for Disaster Fraud (NCDF) to report all types of disaster and COVID-19 fraud. The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also see additional resources and information HERE, where they can also submit complaints of fraud, waste, abuse or mismanagement related to any man-made or natural disaster and criminal activity related to COVID-19.
In addition, Texans can contact the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online if they have encountered scams or price gouging. There are ongoing federal and state prohibitions on charging exorbitant prices for PPE during this time of national emergency.
The NCDF is the result of a partnership between the Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
It was established in 2005 in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. It is the national coordinating agency for all man-made and natural disasters with Gulf Coast headquarters located in Baton Rouge, Louisiana. Since 2005, the NCDF has received over 100,000 complaints.
Defendants Who Orchestrated Straw Purchases of Firearms Sentenced to Prison TimeRead the Press Release
LYNCHBURG, VIRGINIA – Robert Joseph, a.k.a. Ruben Oakes, a convicted felon who conspired with, and directed, straw purchasers to obtain firearms that he would then deliver to a co-conspirator, Harold Gaines, in Maryland, was sentenced today in U.S. District Court here to 27 months in federal prison. United States Attorney Thomas T. Cullen and Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division made the announcement today.
Joseph, 51, previously pleaded guilty to conspiracy to illegally possess firearms and illegal possession of a firearm by a previously convicted felon. Harold Gaines, also previously pleaded guilty to one count of conspiracy to illegally possess firearms and was sentenced to 48 months in prison.
“Eradicating gun violence remains a top priority of this office and we will seek to prosecute all individuals who break federal gun laws, putting guns in the hands of felons,” said First Assistant United States Attorney Daniel P. Bubar. “This prosecution is a product of Project Guardian, and I am proud of the good work of our federal and state team.”
“This case epitomizes the danger of straw purchasing firearms, specifically, providing weapons to felons who clearly intend to use them in the commission of crimes,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “The sentences handed out to both the purchaser and receiver of these illicit firearms is a clear indication that the criminal straw purchasing of weapons will have consequences. We are grateful to U.S. Attorney Cullen and our law enforcement partners for this successful outcome.”
According to court documents, Gaines paid Joseph to supply him with particular firearms and Joseph, in turn recruited, and directed, straw purchasers to obtain firearms from gun stores in the Western District of Virginia. Joseph then delivered the weapons to Gaines in Northern Virginia, Washington D.C., and Maryland. Gaines subsequently sold those weapons to others. Joseph obtained approximately 40 firearms for Gaines during the course of the conspiracy. Both Joseph and Gaines are convicted felons and are prohibited from legally possessing firearms.
The straw purchasers Joseph utilized, individuals whose lack of criminal history enabled them to purchase and possess firearms, were able to obtain the weapons on his behalf by falsely claiming on ATF Firearm Transaction Form that they were the actual transferee/buyer of the firearm(s) when in fact they were not. For their role in this offense, Jazzmine Irvin, Janika Barksdale, and Ashley Gunter each were convicted of conspiracy to make false statements on a firearms form. Irvin and Barksdale were sentenced to 45 days in prison and a period of home confinement thereafter. Gunter received a sentence of 45 days home confinement. All defendants in this conspiracy were also sentenced to a term of supervised release.
The investigation of the case was conducted by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Danville Police Department, and the Lynchburg Police Department. Assistant United States Attorney Coleman Adams prosecuted the case for the United States.
This case was brought as 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.
Danvers Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A Danvers man was sentenced today for possession of child pornography.
Joseph Corbett, 51, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and five years of supervised release. In March 2020, Corbett pleaded guilty to possession of child pornography.
During a search of Corbett’s home on June 14, 2019, an iPhone belonging to him was located. Corbett provided the iPhone’s passcode to authorities and an onsite forensic review revealed images and videos of child pornography. Further review of the iPhone revealed approximately 35 images and approximately seven videos of child pornography, including prepubescent minors. In addition, conversations between Corbett and others on the Kik Messenger application were located that included messages with attached images and videos of child pornography.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Danvers Police Chief Patrick M. Ambrose; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted 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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Dallas Police Officer Charged with Child Sexual ExploitationRead the Press Release
A Dallas Police Officer has been charged with uploading sexually explicit images of children using the City of Dallas’ employee internet, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old senior corporal assigned to DPD’s Auto Theft Unit, was charged via criminal complaint with one count of transportation of child pornography.
“Law enforcement officers take an oath to protect and serve,” said U.S. Attorney Erin Nealy Cox. “This defendant allegedly undermined that vow, preying upon our most vulnerable. The Department of Justice will not tolerate the exploitation of children – especially by our public servants.”
According to court documents, Mr. Collins allegedly uploaded sexually explicit photos of prepubescent girls to his various Google accounts via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department. In the report, they noted that one of the profiles included a photo of a man in a police uniform, later determined to be Mr. Collins.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
In an interview with federal agents, Mr. Collins allegedly admitted to accessing the Google accounts and saving child pornography.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Collins – who has been placed on administrative leave by the police department pending the results of an internal investigation – is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Crown Point Man Sentenced to 60 Months ImprisonmentRead the Press Release
HAMMOND-Leonardo Verduzco, 26, of Crown Point, Indiana, was sentenced by United States District Court Judge Theresa L. Springmann to 60 months in prison and 3 years of supervised release following his guilty plea to distribution of crack cocaine, announced U.S. Attorney Kirsch.
According to documents in the case, during the summer of 2019, law enforcement made purchases of crack cocaine, methamphetamine, and a firearm from Verduzco. During a subsequent search of Verduzco’s residence, law enforcement recovered drug packaging materials, empty gun cases, gun magazines, ammunition, and $11,240 in cash. In his plea agreement, Verduzco consented to forfeiture of the cash because it was connected or traceable to his drug crime, admitted responsibility for 28 grams of crack and 171 grams of methamphetamine as drug-involved conduct, and admitted that he had assisted another individual in illegally purchasing a firearm for him. Verduzco, who has prior misdemeanor convictions for battery, theft, and marijuana possession, was on probation at the time of this federal offense.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Area Task Force and Schererville Police Department. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Nicholas J. Padilla.
Covington Woman Charged with FEMA FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KELLY GAUTHIER, age 48, a resident of Covington, Louisiana, was charged on July 28, 2020 with theft of government funds.
According to the Bill of Information, GAUTHIER filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about March 14, 2016, following severe storms and flooding across Louisiana. GAUTHIER claimed that she needed assistance due to her ownership and occupancy of a home where she was living. In order to show her purported ownership of the home, GAUTHIER submitted fraudulent supporting documentation. GAUTHIER was issued a total of $29,075.56 in FEMA assistance, including assistance for home repairs, rental assistance, transportation, and personal property.
GAUTHIER is charged in the Bill of Information with one count of theft of government funds, in violation of Title 18, United States Code, Section 641. The maximum penalties that may be imposed upon conviction are up to ten years imprisonment; a fine of $250,000; up to three years of supervised release; and a $100 mandatory special assessment.
U.S. Attorney Peter G. Strasser praised the work of the Department of Homeland Security, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.