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Wednesday 29 July 2020
Luzerne County Women Sentenced for Fentanyl Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 24, 2020, Chyvonne Traver, age 28, and Kayla Clark, age 29, both of Swoyersville, Pennsylvania, were sentenced by United States District Court Judge Robert D. Mariani, for fentanyl trafficking and firearms offenses. Judge Mariani sentenced Traver to 36 months’ imprisonment and a four-year term of supervised release, and sentenced Clark to 60 months’ imprisonment and a four-year term of supervised release.
According to United States Attorney David J. Freed, Traver and Clark were convicted of conspiring to distribute between 100 and 300 grams of a fentanyl mixed with acetyl fentanyl, which is equivalent to approximately 50,000 to 150,000 potentially lethal individual doses of fentanyl, in June and July 2018. Traver also was convicted of possessing a firearm as a convicted felon, and Clark also was convicted of possessing a stolen firearm. Judge Mariani ordered the forfeiture of the firearm seized during the investigation.
A codefendant, Jhaquil Moore, previously was convicted of conspiring to distribute fentanyl, and was sentenced to 60 months’ imprisonment and a four-year term of supervised release. Another individual, Corey Foster, was charged in a separate indictment with trafficking fentanyl.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lame Deer man sentenced to prison for assaulting womanRead the Press Release
BILLINGS — A man who admitted injuring a woman by hitting and punching her during a fight in Lame Deer in 2017 was sentenced today to six months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Frank Brent Flying, Sr., 38, of Lame Deer, pleaded guilty in November to assault resulting in substantial bodily injury.
U.S. District Judge Susan P. Watters presided.
In court records filed in the case, the prosecution said that the assault occurred during an argument on Dec. 28, 2017 at a residence in Lame Deer on the Northern Cheyenne Indian Reservation. Flying punched the victim multiple times in the face and strangled her. The victim was treated for substantial injuries.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Illinois Man Sentenced for Failing to Update Sex Offender Registration & Absconding from Federal SupervisionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Raynaldo Mendez, 44, South Beloit, Illinois, was sentenced today by U.S. District Judge William M. Conley to 30 months in federal prison for failing to comply with sex offender registration, and an additional 24 months for revocation of his federal supervised release. This prison term will be followed by 10 years of supervised release.
Mendez was required to comply with sex offender registration requirements as a result of two Illinois sexual assault convictions. At the time Mendez failed to comply with the requirements of this registration, he was serving a term of supervised release in connection to a 2006 federal drug offense.
Mendez is currently serving a prison sentence for sexually assaulting a minor in 2017 in Wisconsin. Judge Conley ordered the sentences imposed today to run consecutively to that prison sentence.
In sentencing Mendez, Judge Conley stated that Mendez presented a continuing danger to the community and had totally ignored conditions of federal supervision. Judge Conley noted that Mendez had absconded from supervision and failed to update his sex offender registration, in part, to elude officers investigating the 2017 sexual assault.
The charge against Mendez was the result of an investigation conducted by the Beloit (Wisconsin) and South Beloit (Illinois) Police Departments, and the U.S. Marshals Service. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Illinois Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on July 28, 2020, a federal grand jury returned a one-count indictment against Javier Vargas (age: 43) of Joliet, Illinois.
The indictment alleges that Vargas possessed in excess of 50 grams of actual methamphetamine with the intent to distribute it to others in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). “Actual” methamphetamine possesses a high level of purity and is commonly known as “crystal” or “ice.” Vargas faces a minimum of ten years to life imprisonment, at least five years of supervised release, and up to a $10 million fine.
This case was investigated by the Manitowoc County Metro Drug Unit, Wisconsin Department of Justice – Division of Criminal Investigation, and Wisconsin State Patrol. It will be prosecuted by Assistant United States Attorney Alexander E. Duros.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Hudson County Felon Admits Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of multiple felonies admitted today to possessing a firearm and ammunition, U.S. Attorney Craig Carpenito announced.
Benorce Duncan, 31, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On May 21, 2019, Duncan knowingly possessed a Röhm .22-caliber RG10 revolver loaded with six rounds of ammunition. At that time, Duncan had previously been convicted in Hudson County Superior Court of aggravated assault and robbery, both of which are felonies.
The charge to which Duncan pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 8, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited the Newark Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Hitting woman with baseball bat sends Busby man to prisonRead the Press Release
BILLINGS – A Busby man who admitted striking a woman with a baseball bat and his fists last year on the Northern Cheyenne Indian Reservation was sentenced today to three years and 10 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Chase Woodenlegs, 30, pleaded guilty in February to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided.
In court records filed in the case, the prosecution said the assault happened on July 23, 2019 at a Busby residence. Woodenlegs hit the victim with his fists and a baseball bat. He also strangled the victim. After the assault, Woodenlegs fled the area. The victim was treated for multiple injuries.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Hawaii man sentenced to five years in prison for possessing child pornographyRead the Press Release
HONOLULU, Hawaii – Tyler Pang, 20, of Honolulu, received a sentence of five years imprisonment from United States District Judge Leslie E. Kobayashi today for possessing child pornography. The defendant also must register as a sex offender in the jurisdiction(s) where he resides, is employed, or is a student.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that according to information produced in court, Pang found a sexually explicit video of a minor female online. After identifying her and finding her social media account, Pang contacted the female with threats to disseminate her sexually explicit video unless she produced more explicit images for him. When she refused to comply with his demands, Pang distributed the explicit video to her friends on social media, and continued to threaten her over the course of months. In addition, Pang admitted possessing a collection of child pornography that he offered for sale on the internet.
“The defendant’s despicable conduct in this case appropriately landed him in federal prison for years, where he can reflect upon the harm he caused the victim. As the prosecution made clear, Pang weaponized a sexually explicit video of a minor in his attempt to satisfy his desire for explicit photos of her. My office will continue to seek justice for victims of this kind of extortion, as well as those who victimize our young people by contributing to the market for child pornography by possessing, distributing, or producing it,” said U.S. Attorney Price.
“Identifying predators who exploit the innocence of a child will always be a top priority for the FBI. Tyler Pang possessed sexual images of children and distributed the images over the internet. Today’s sentencing highlights the hard work of the men and women of the FBI and puts a child predator offline,” said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Morgan Early.
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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two California Women Charged with Health Care Fraud Scheme At Wisconsin Nursing Homes
Lauryn Nelson, 40, San Pedro, California, and Marie De La Torre, 50, Corona, California, are charged with conspiring to commit health care fraud, and De La Torre is also charged with eight additional counts of health care fraud, through a scheme to defraud the Medicare Program administered by the U.S. Department of Health and Human Services. The indictment alleges that the conspiracy operated from February to September 2015.
The indictment alleges that Nelson and De La Torre, both licensed vocational nurses, worked for a company not named in the indictment that did genetic testing of residents in nursing homes to determine how different residents metabolized medication, which might result in changes in medication prescribed to the residents. The indictment alleges that Nelson and De La Torre went into four nursing homes in Wisconsin, located in Milwaukee, Rhinelander, Oshkosh, and Wisconsin Rapids, to do this genetic testing and obtained medical information about residents which they used to create fraudulent wound care supply orders they submitted to Medicare for reimbursement. The indictment alleges that neither Nelson nor De La Torre had any involvement in caring for wounds of the Wisconsin nursing home residents.
The indictment alleges that Nelson and De La Torre directed that fraudulently ordered wound care supplies be shipped to the California office of the company for which they worked, instead of to the Wisconsin nursing homes. The indictment charges that they caused $552,889 to be billed to Medicare for these wound care supplies, of which Medicare paid $431,579.
If convicted, Nelson and De La Torre face a maximum penalty of 10 years in federal prison on Count 1, and De La Torre faces a maximum penalty of 10 years in federal prison for the remaining eight counts in the indictment. The charges against them are the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Zachary J. Corey is handling the prosecution.
Rhinelander Man Charged with Attempting to Entice Child
Richard M. Duellman, 42, Rhinelander, Wisconsin, is charged with using text messages and telephone calls to persuade an individual who had not attained the age of 18 years to engage in sexual activity that would constitute second degree sexual assault of a child under Wisconsin law. The indictment alleges that he attempted to do so on July 21, 2020.
If convicted, Duellman faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Oneida County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Rhinelander Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Burnett County Man Charged with Possessing Child Pornography
Anthony A. Atkins, 47, Webster, Wisconsin, is charged with possessing child pornography. The indictment alleges that on June 15, 2020, he possessed a cellular phone that contained visual depictions of minors engaging in sexually explicit conduct, and at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Atkins faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Burnett County Sheriff’s Office and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Lincoln County Man Charged with Illegally Possessing Firearm
Michael W. Wienandt, 26, Tomahawk, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on May 15, 2020, he possessed a .40 caliber pistol.
If convicted, Wienandt faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Marathon County Sheriff’s Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert A. Anderson is handling the prosecution.
Beloit Man Charged with Gun Crime
Fabian W. Jones, 28, Beloit, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on March 15, 2020, he possessed a .40 caliber handgun.
If convicted, Jones faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Beloit Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
Spooner Man Charged with Possessing Methamphetamine for Distribution
Brian K. Dennis, 50, Spooner, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 29, 2020.
If convicted, Dennis faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Barron and Sawyer County Sheriffs’ Offices and the Drug Enforcement Administration. First Assistant U.S. Attorney Timothy M. O’Shea is handling the prosecution.
La Crosse Man Charged with Drug Crimes Involving Methamphetamine
Lucas Carpenter, 36, La Crosse, Wisconsin, is charged with possessing methamphetamine with the intent to distribute, and with distributing 50 grams or more of methamphetamine. The indictment alleges that he possessed and distributed methamphetamine on November 15, 2019.
If convicted, Carpenter faces a maximum penalty of 20 years in federal prison on the possession with intent to distribute charge, and a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the distribution of 50 grams or more or methamphetamine charge. The charges against him are the result of an investigation by the Prairie du Chien Police Department and the West Central Metropolitan Enforcement Group. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
Four MS-13 Gang Members Indicted in Maryland on Federal Charge of Conspiracy to Destroy and Conceal Evidence in Connection with a MurderRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has indicted four MS-13 gang members today on federal charges in connection with their MS-13 gang activities, specifically for conspiracy to destroy and conceal evidence in connection with a murder. Charged in the three-count indictment are Jose Domingo Ordonez-Zometa, a/k/a “Felon,” age 31, of Landover Hills, Maryland; Jose Rafael Ortega-Ayala, age 28, of Washington, D.C.; Jose Henry Hernandez-Garcia, age 26, of no fixed address; and Kevin Alexis Rodriguez-Flores, age 20, of Stafford, Virginia.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation, Washington Field Office Criminal Division; Special Agent in Charge John Eisert of U.S. Homeland Security Investigations (HSI) Baltimore Office; Interim Chief of Police Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department; and Sheriff David P. Decatur of the Stafford County, Virginia Sheriff’s Office.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Maryland, Virginia, and throughout the United States. Members of MS-13 are expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members are expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Another principal rule of MS-13 is that its members must never cooperate with law enforcement. Violation of this rule results in an order of death for the offender.
According to indictment, the defendants were members and associates of the Los Ghettos Criminales Salvatruchas (“LGCS” or “Ghettos”) clique of MS-13, with Ordonez being the leader of the LGCS clique. MS-13 members and associates met on a regular basis to, among other things, discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Each clique held clique meetings where business specific to that clique was discussed. Any perceived indiscretions by members and associates for violations of MS-13 rules were discussed at clique meetings, and punishments known as “courts” or “violations” were issued. Courts or violations often took the form of beatings by fellow MS-13 members. More serious violations resulted in the issuance of a “greenlight.” A greenlight was an order and/or approval to kill.
The indictment alleges that on March 8, 2019, Ordonez held a meeting for LGCS clique members at his residence to discuss clique matters, including recent contacts that an LGCS member (Victim 1) had with police. During the meeting, Ordonez questioned Victim 1 about his/her recent interaction with police and other matters. As a result of suspicions that Victim 1 was cooperating with police, the defendants and at least one other MS-13 member allegedly assaulted Victim 1 and another LGCS member who attempted to defend Victim 1 from the assault. The assault on Victim 1 continued, with Victim 1 being beaten, cut, and stabbed, and culminated with Ordonez, as LGCS clique leader, allegedly ordering Victim 1 be killed. The indictment alleges that Ortega, Hernandez, Rodriguez, and other LGCS clique members stabbed and murdered Victim 1 on Ordonez’ orders, for reasons including suspicions that Victim 1 had cooperated with law enforcement.
According to the indictment, Ordonez, as LGCS leader, directed Ortega, Hernandez, Rodriguez, and other LGCS clique members and co-conspirators to conceal and destroy evidence of the murder. Specifically, the indictment alleges that Ordonez directed Ortega and other LGCS clique members and co-conspirators to transport the body of Victim 1 from Maryland to a secluded location in Stafford, Virginia; set the body of Victim 1 on fire; and destroy and conceal other evidence of the murder of Victim 1. Further, the indictment alleges that while the body of Victim 1 was being transported from the crime scene, Ordonez, Hernandez, and Rodriguez stayed at the crime scene and attempted to destroy, remove, and conceal evidence of the murder of Victim 1, including Victim 1’s blood. When Ortega returned from disposing of Victim 1’s body, the defendants and others attempted to remove any evidence of the murder, including Victim 1’s blood, from the vehicle used to transport the body.
All of the defendants are currently detained on related state criminal charges.
The defendants face a maximum sentence of 20 years in federal prison. Initial appearances have not yet been scheduled in U.S. District Court.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Robert K. Hur commended the FBI, HSI Baltimore, the Prince George’s County Police Department, the Prince George’s County State’s Attorney’s Office, the Fairfax County, Virginia Police Department, and the Stafford County, Virginia, Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William Moomau and Erin B. Pulice, who are prosecuting the case.
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Fort Edward Man Charged with Attempted Sex Trafficking of a ChildRead the Press Release
ALBANY, NEW YORK – Timothy J. Bush, 49, of Fort Edward, New York, appeared on July 23, 2020 in federal court on charges that he attempted to patronize a child under the age of 14 for a commercial sex act, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the criminal complaint filed in this case, on July 23, 2020, the defendant arranged to pay a woman $100 to have sex with her eleven-year-old daughter. The woman was an FBI agent acting in an undercover capacity. On July 28, 2020, Bush was ordered detained pending further court proceedings.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. If convicted, Bush faces a maximum sentence of life imprisonment, a mandatory minimum sentence of 15 years, a term of supervised release of at least 5 years, and up to life following any term of incarceration, a fine of up to $250,000, and will be required to register as a sex offender.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman. This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former Sheriff's Deputy Going to Prison for Possessing A Gun While Subject to A Domestic Violence OrderRead 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 Michael T. Blajszczak, 54, of Clarence, NY, who was convicted of possession of a firearm by a person subject to a domestic violence order of protection, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on April 27, 2019, a six-month domestic violence order of protection was issued in Cheektowaga, NY, Town Court against the defendant, who was an Erie County Sheriff’s Deputy at the time. As a result of that order, Blajszczak was prohibited from possessing any firearm during the time period for which it was in effect. On May 2, 2019, the defendant knowingly possessed a .22 caliber rifle and 11 rounds of ammunition.
“A just society depends on the shared understanding that all of its members—no matter what they do, the color of their skin, or the uniform that they wear—will be held personally accountable for their actions,” noted U.S. Attorney Kennedy. “Ensuring that all in our District share that understanding—and the responsibility it brings—is a lesson that the tremendous men and women of my Office, through their work, strive to deliver each and every day.”
The sentencing is the result of an investigation by the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Amherst Police Department, under the direction of Chief John Askey; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Former Fresno Businessman Charged with Wire Fraud and Money Laundering for Classic Car Restoration SchemeRead the Press Release
FRESNO, Calif. — A Fresno business owner was arraigned today for a scheme to defraud the customers of his classic car business, U.S. Attorney McGregor W. Scott announced.
On July 23, a federal grand jury returned a 22-count indictment against Jeffrey Scott Hedges, 48, currently residing in Irvine, charging him with wire fraud and money laundering.
According to court documents, Hedges owned and operated West Coast Chassis LLC. Between November 2015 and January 2019, Hedges advertised his business online as one dedicated to the restoration of classic cars likes Corvettes, Camaros, and others. However, instead of providing the promised chassis and modifications to the vehicle frames that his customers sent him, Hedges kept the money and failed to provide the promised product. Hedges allegedly defrauded his customers out of more than $600,000.
Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at 916-746-7000.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Hedges faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Employee of Birmingham Area Psychology Clinic Pleads Guilty to Defrauding State Medicaid Agency by Filing False Claims for CounselingRead the Press Release
BIRMINGHAM, Ala. — A former Birmingham area psychology clinic that defrauded the Alabama Medicaid Agency of at least $1.5 million by billing for counseling services that were never provided pled guilty today, announced U.S. Attorney Prim Escalona, Alabama Attorney General Steve Marshall and U.S. Department of Health and Human Services -OIG Special Agent in Charge Derrick Jackson.
Heidi Robertson, 35, pleaded guilty to one count of conspiracy to commit healthcare fraud for her role in filing false claims to the Alabama Medicaid Agency for individual and group counseling services for at-risk youth while she was employed as the primary insurance biller for Capstone Medical Resources, LLC. The owner of the facility, former Birmingham psychologist Sharon D. Waltz, pleaded guilty in 2019 to defrauding Medicaid of at least $1.5 million.
An investigation was initiated by the Program Integrity Division of the Alabama Medicaid Agency after an audit showed that billings submitted by Capstone for counseling services had increased from $99,000 in 2015 to more than $2 million in 2017. The Program Integrity Division referred its findings to the Attorney General’s Medicaid Fraud Control Unit after Waltz submitted falsified records during the Program Integrity Audit.
A subsequent investigation was conducted by the Medicaid Fraud Control Unit and the Office of Investigations of the U.S. Department of Health and Human Services Office of Inspector General. This investigation determined that the majority of claims submitted by Capstone during 2016 through 2018 were fraudulent. Robertson’s role in the scheme included submitting claims using the Medicaid identifications of the children of friends and family members for counseling services that never took place. Waltz paid Robertson a 10 percent commission for all claims paid by Medicaid. Robertson was employed by Waltz from 2016 through late 2017.
“The defendant’s actions demonstrated reckless disregard for at-risk youth,” U.S. Attorney Prim F. Escalona said. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to protect the members of our community that are the most vulnerable, our children.”
Attorney General Steve Marshall said, “This defendant engaged in an illegal and immoral scheme to profit at the expense of children in need by claiming payment for services that were never provided. As Attorney General, I stand committed with the U.S. Attorney and the Department of Health and Human Services to punish those who plunder the public treasury and betray the at-risk youth they were entrusted to serve.”
“Let this be a warning to medical billers around the State of Alabama that if you facilitate the submission of fraudulent claims, you will be held accountable for your actions,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Together with our partners at both the state and federal level, the OIG will continue to identify and hold accountable those responsible for such schemes.”
The U.S. Department of Health and Human Services OIG, the Alabama Attorney General’s Medicaid Fraud Control Unit, and the Program Integrity Division of the Alabama Medicaid Agency investigated the case. Assistant U.S. Attorney J.B. Ward and Assistant Attorney General Bruce Lieberman, working as a Special Assistant U.S. Attorney is prosecuting the case.
Former Dayton agency director sentenced to prison for accepted cash bribesRead the Press Release
DAYTON – The former director of Dayton’s Minority Business Assistance Center was sentenced via videoconference in U.S. District Court today to six months in prison and two years of supervised release for accepting a thing of value in connection with a local government.
According to court documents, RoShawn Winburn, 46, disclosed internal information regarding minority-owned, woman-owned and small disadvantaged business contracts to a local business owner who hoped to obtain contracts with the City of Dayton.
Between July 2015 and July 2016, Winburn accepted cash payments totaling more than $6,500 from the individual in exchange for internal City of Dayton documents with restricted public access.
Winburn met the individual at a downtown Dayton bar to provide information regarding contracts and receive cash.
Winburn pleaded guilty in February 2020.
Clayton Luckie, Brian Higgins, Steve Rauch, Joyce Cameron and James Cameron have also been charged in connection to this case. Luckie was sentenced in November 2019 to four months in prison for mail fraud. Williams was sentenced in January 2020 to 12 months in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the sentence imposed today by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.
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Former Construction Executive Pleads Guilty to Tax Evasion in Connection with Bribery SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RONALD OLSON, a vice president and deputy operation manager for Turner Construction Company (“Turner”), pled guilty today to charges of evading taxes on more than $1.5 million in bribes he received from building sub-contractors. OLSON is scheduled to be sentenced on December 9, 2020, at 11:00 a.m., before United States District Judge P. Kevin Castel. In related proceedings, co-conspirator Michael Campana, a subordinate construction manager at Bloomberg, LLC (“Bloomberg”), was sentenced last Friday, July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in the same scheme. In addition, two managers of a construction contractor – Anthony Guzzone and Vito NiGro – were respectively charged on July 14 and July 22, 2020, for evading taxes on more than $1.4 million and $1.8 million in bribes that they respectively received in the same scheme.[1]
Acting U.S. Attorney Audrey Strauss said: “When bribery is coupled with tax evasion, both the bribery victims and the taxpaying public are forced to bear the hidden, unfair costs of corruption. This investigation has resulted in charges of such conduct by four defendants, one of whom pled guilty today, one of whom previously pled guilty and was sentenced last week, and the other two of whom were charged earlier this month.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2011 and 2017, GUZZONE was a construction project manager for Bloomberg, a global financial firm that was engaged in various building projects in New York City and elsewhere, while OLSON and NIGRO were executives at Turner, which performed construction projects for Bloomberg. For most of that time, beginning in 2013, CAMPANA was also a construction manager at Bloomberg. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.
In all, the defendants are charged with failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction labor and materials for work on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included charges related to CAMPANA’s 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon, as well as Super Bowl tickets worth almost $8,000 provided to GUZZONE. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged OLSON, CAMPANA, GUZZONE, NIGRO, and 10 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering. On November 19, 2019, CAMPANA pled guilty in the State court case to money laundering in the third degree for his participation in the bribery scheme. (New York v. Guzzone, et al., case no. 04037-2018 (N.Y. Sup. Ct.), count 44). He is awaiting sentencing in that case, while the State charges remain pending against OLSON, GUZZONE, and NIGRO.
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OLSON, 53, of Massapequa, New York, pled guilty today to a single count of tax evasion for the tax years 2011 through 2017. That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CAMPANA, 34, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced last week, on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes (which he has repaid), and a fine of $10,000.
GUZZONE, 51, and NIGRO, 59, both of Middletown, New Jersey, were each charged in criminal informations, respectively on July 14 and 16, 2020, with a single count of tax evasion. The charges against GUZZONE pertained to the tax years 2010 through 2017, while the charges against NIGRO pertained to 2011 through 2017. Those charges carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judges.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Assistant Chief of the Criminal Appeals & Tax Enforcement Policy Section of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have been charged in New York State Supreme Court for their participation in the underlying bribery scheme, where CAMPANA has pled guilty in that case and is awaiting sentencing.
Former Cemetery Owner Sentenced for Defrauding CustomersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arminda Martin, age 49, formerly of York County, Pennsylvania, was sentenced on July 28, 2020, to 12 months’ and one day imprisonment to be followed by two years of supervised release, by Chief District Court Judge John E. Jones, III, for conspiring to commit mail fraud. The sentence represents a downward adjustment of approximately 32 months to account for prison time that Martin has served for a related fraud scheme in Ohio.
According to United States Attorney David J. Freed, Martin, along with her husband, Theodore Martin, owned and operated Suburban Memorial Gardens Cemetery in Dover, Pennsylvania. The Martins previously pleaded guilty to conspiring to defraud hundreds of their customers out of approximately $500,000. The Martins admitted that instead of applying customer payments to cemetery services and products, they embezzled the money for their own personal gain, including for gambling.
Theodore Martin was sentenced earlier this year to 13 months’ imprisonment.
The case was investigated by the United States Department of Veterans Affairs Office of Inspector General, the Federal Bureau of Investigation, and the Northern York County Regional Police Department. Assistant U.S. Attorneys Carlo D. Marchioli and Joseph J. Terz prosecuted the case.
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Former Baltimore Delegate Cheryl Glenn Sentenced to Two Years in Federal Prison for Soliciting and Accepting Bribes in Exchange for Official Actions Taken on Legislation Related to Medical Marijuana, Opioid Therapy Clinics, and Liquor LicensesRead the Press Release
Baltimore Maryland – U.S. District Judge Catherine C. Blake today sentenced former Maryland State Delegate Cheryl Diane Glenn, age 68, of Baltimore, Maryland, to two years in federal prison, followed by three years of supervised release, for federal honest services wire fraud and bribery. Judge Blake also ordered Glenn to forfeit and to pay restitution in the amount of $18,750 each.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Cheryl Glenn solicited and accepted more than $33,000 in bribes in exchange for official actions instead of doing her duty and putting the interests of the public above her own,” said U.S. Attorney Robert K. Hur. “We expect our elected officials to serve the public, not to use their positions of authority to line their own pockets. As this case demonstrates, we will work with our law enforcement partners to hold accountable those who betray the public trust. Cheryl Glenn will now pay the price for her greed by serving time in federal prison.”
“Elected officials owe the taxpayers of Baltimore their honest services and as today's sentence shows, there are serious consequences for violating that trust,” said Special Agent in Charge Jennifer Boone. “The FBI is dedicated to rooting out corruption so that the citizens we serve can feel secure that their elected leaders are putting the public good over their own personal profits.”
According to her plea agreement, until her resignation on December 18, 2019, Glenn was a Maryland State Delegate representing District 45, which covered portions of Baltimore. During her tenure, Glenn served as the Chair of the Banking, Consumer Protection, and Commercial Law Subcommittee of the Economic Matters Committee; the Vice Chair of the Rules and Executive Nominations Committee; and the Chair of the Baltimore City Delegation, among other roles.
As detailed in her plea agreement, from at least March 4, 2018 through February 11, 2019, Glenn defrauded the citizens of Maryland of the right to her honest services by soliciting and accepting bribes in exchange for her official actions. Specifically, Glenn accepted five bribes totaling $33,750 from an associate in exchange for voting in favor of a bill to increase the number of medical marijuana grower and processing licenses that were available to an out-of-state company; promising to lead the effort to change the law in order to provide a preference for Maryland residency to in-state medical marijuana license applicants; introducing legislation that decreased the number of years of experience required to be a medical director of an opioid maintenance therapy clinic; and introducing legislation that created a class B alcohol and liquor license in District 45.
Glenn admitted that after a meeting on March 5, 2018 with an associate and two businesspersons, she agreed to use her position as a state legislator to vote for a bill which could favor Company 1 in its pursuit of a medical marijuana license, in exchange for $3,000 in cash, which would be used to pay an outstanding tax bill on her residence. Glenn subsequently voted for the bill after its Third Reading on March 8, 2018, and again on April 7, 2018, after amendments from the Senate. The bill passed and on April 20, 2018, the associate provided Glenn with $3,000 in cash during a meeting at a restaurant in Baltimore County.
According to the plea agreement, on June 7, 2018, Glenn and her associate met with another businessperson at a restaurant in Baltimore to discuss medical marijuana licenses. During the conversation, Glenn told the businessperson that people had asked her how a medical marijuana company had been awarded a medical marijuana growing license without having any high-priced lobbyists. Glenn responded, “… they know God and Cheryl Glenn.” A few weeks later, Glenn followed up with the associate to see if the businessperson was “lookin’ for [Glenn] to help him or something?” The associate confirmed that the businessperson did want Glenn’s help and Glenn asked “… is he going to be makin’ a donation or something?” On August 10, 2018, the associate told Glenn that the businessperson had offered the associate $10,000 to get Maryland law changed so that local businesses would be given priority for medical marijuana licenses. The associate offered to split the $10,000 with Glenn, who agreed to introduce legislation to get the law changed in exchange for a payment of $5,000. In order to get the businessperson to make the $10,000 payment, Glenn subsequently sent the associate an e-mail pledging to take the lead in the effort to get the law changed so that Maryland residents received a preference for medical marijuana licenses. On August 23, 2018, the associate gave Glenn $5,000 in cash during a meeting at a Baltimore restaurant.
Further, Glenn admitted that on October 18, 2018, she pre-filed legislation to reduce the required experience for medical directors at opioid maintenance therapy clinics in order to receive another $5,000 payment from the businessperson. The payment was provided on October 22, 2018, and Glenn subsequently introduced the bill on January 9, 2019. Glenn also agreed to introduce legislation to obtain a liquor license for a restaurant that the businessperson wanted to open in Glenn’s district, in exchange for $20,000, with the initial payment of $5,000 to be made up front and the remaining $15,000 payment when the legislation was introduced. As stated in the plea agreement, Glenn received the $5,000 payment on December 10, 2018. On January 28, 2019, Glenn introduced the bill to obtain the liquor license and on February 11, 2019, received a bribe payment of $15,000.
Glenn took steps to conceal her illegal activities, including: agreeing not to deposit bribe payments in her bank account; agreeing to meet in person to discuss the details of bribes rather than discussing them over the phone; and creating a false loan note for the $15,000 bribe payment, falsely stating that the money was a gift and was in no way connected to her position as a State Delegate. On at least two occasions, Glenn texted an associate who was providing the bribe payments on behalf of the businesses and falsely advised the associate that the bribe payments were short a total of $750, which the associate subsequently provided to Glenn.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case, along with former Maryland Assistant U.S. Attorney Derek Hines.
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Foreign National Taken into Custody After Being Indicted in Fraudulent Ticket ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOSEPH GATT, age 75, a citizen of Canada and Malta, was arrested on July 26, 2020, in Los Angeles, California after previously being indicted by a federal grand jury sitting in the Eastern District of Louisiana with ten counts of wire fraud, in violation of 18 U.S.C. '' 1343, for conducting a lengthy scam related to the sale of sporting event tickets. Although GATT was indicted in June 2018, the indictment was unsealed only after GATT was taken into custody.
According to the indictment, between about 2009 and October 2014, GATT resided in the New Orleans area. He purported to sell tickets to spectator professional sporting events, including Union of European Associations (UEFA) Champions League and Federation Internationale De Futbol Association (FIFA) World Cup matches. Specifically, GATT falsely claimed to have connections with FIFA and, through those connections, could purchase tickets to World Cup games at or below face value before the tickets went on sale to the general public. GATT sought investors for his fraudulent business enterprise in which he claimed to be able to purchase World Cup tickets at face value and then sell them at a higher price to individuals and groups who wished to attend the games. GATT recruited individuals, including Investor A and Investor B, to enter into a fraudulent business arrangement in which they would give him money to purchase tickets and then split the resulting profits. Together, Investor A and Investor B gave GATT over $52,000. In fact, GATT used the money for personal purchases. When confronted, GATT wrote investors checks, ostensibly as repayment for the investments, when he knew that the account on which the checks were drawn had insufficient funds to cover the checks.
If convicted, GATT faces a maximum term of twenty (20) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
Florida Man Sentenced to Three Years in Prison for Obstructing the IRSRead the Press Release
A Florida man was sentenced to 36 months in prison today for corruptly obstructing the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.
According to evidence presented at trial, since 1999, Dennis J. Nagle, 67, refused to voluntarily pay federal income taxes. As a result, by 2014, he had an outstanding tax balance of more than $400,000. When the IRS attempted to collect Nagle’s unpaid taxes by filing liens and levying his paychecks and pension, Nagle obstructed the IRS’s collection efforts. Nagle submitted false forms to his employer claiming he was exempt from federal tax withholding, attempted to pay off his tax debts with checks written on a closed bank account, and threatened to file criminal complaints against IRS collection officers. In total, Nagle sent the IRS at least 15 worthless payments, purportedly totaling more than $1.9 million dollars.
A jury convicted Nagle on Jan. 30, 2020.
In addition to the term of imprisonment, U.S. District Judge Paul G. Byron ordered Nagle to serve one year of supervised release and to pay approximately $221,502 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Archer of the Tax Division and Assistant U.S. Attorney Karen Gable, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Florida Man Charged with COVID Relief Fraud, Health Care Fraud and Money LaunderingRead the Press Release
A Florida man has been charged regarding allegations that he fraudulently obtained a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL), and that he orchestrated a conspiracy to submit false and fraudulent claims for reimbursement to Medicare and CareCredit, and to defraud his own patients by charging them thousands of dollars for chiropractic services under false pretenses.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Omar Perez Aybar of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG), and Special Agent in Charge Kevin Kupperbuschof the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Dennis Nobbe, 63, of Miami, Florida, was charged by criminal complaint, unsealed today upon his arrest, in the Southern District of Florida with wire fraud; health care fraud; conspiracy to commit health care fraud and wire fraud; making false statements to a financial institution; money laundering; and conspiracy to commit money laundering. He is expected to make his initial appearance before U.S. Magistrate Judge John O’Sullivan at 1 p.m. EST today.
The complaint alleges that Nobbe, a chiropractor, orchestrated a scheme to exploit his patients for financial gain through a credit card program intended to help patients pay for out-of-pocket medical expenses. To conceal his role in the scheme, Nobbe paid bribes to other physicians to open credit card merchant accounts in their names. Nobbe then encouraged patients at his chiropractic business, Dynamic Medical Services Inc., many of whom were low-income and did not speak English, to apply for the credit cards.
According to the complaint, Nobbe charged thousands of dollars to these credit cards for services that he never, or only partially, rendered, leaving patients saddled with debt. In addition, Nobbe bribed a physician to submit claims to Medicare on Nobbe’s behalf because Nobbe, as a chiropractor, was ineligible to submit the claims himself, and would not have been able to receive reimbursement for the claimed services. Nobbe and other physicians also allegedly conspired to launder the proceeds from these schemes.
As stated in the complaint, Nobbe instructed the physicians to conceal Nobbe’s involvement in the scheme, and sought to conceal the purpose of large wire transfers he received, through the use of shell companies and sham contracts.
The complaint further alleges that Nobbe obtained over $200,000 in PPP and EIDL loans intended to provide COVID relief, and that Nobbe transferred portions of the proceeds to shell companies under his control and to pay personal expenses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by SBA-OIG, the FBI’s Miami Field Office, and HHS-OIG. The Department of Justice also thanks the U.S. Attorney’s Office for the Southern District of Florida, and the Florida Department of Revenue for assistance they provided. Trial Attorney Sara Clingan of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Peter Laserna is handling the forfeiture aspects of the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Financial officer of Hawaiian charter school sentenced to imprisonment for embezzling over $600,000 from Big Island charter schoolRead the Press Release
HONOLULU, Hawaii – Kelaukila Estabilio, 40, of Hilo, Hawaii, was sentenced today in federal court by U.S. District Judge Derrick K. Watson to 60 months imprisonment for embezzling funds from the Hawaiian charter school where she worked.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that according to court documents and information presented in court, from 2006 through January 2019, Estabilio worked for the Kua O Ka Lā Public Charter School, formerly located in Pahoa, Hawaii on the Big Island. The charter school also had a non-profit financial support entity, Ho’oulu Lahui. Estabilio was the financial officer of the charter school and responsible for managing the books and records.
For over six years, from at least 2012 through November 2018, Estabilio misused the charter school’s funds to pay for her and her family’s personal credit card bills totaling around at least $628,835. Estabilio used the charter school’s funds to pay off personal bills for extensive interisland and mainland travel; personal care, such as nail salons; pet veterinary care; retail purchases, such as stores like Victoria’s Secret and Zales; entertainment, such as Bruno Mars tickets, MMA, Netflix, and iTunes; living expenses; and restaurant bills. For years, Estabilio falsified the books and records of the charter school to conceal her embezzlement activities from both her subordinates and supervisors.
The charter school’s campus was destroyed by lava from the Kilauea eruption in or around July 2018. Over approximately five months, between July and November 2018, when her fraud was uncovered, Estabilio stole more than $90,000 from the charter school and Ho’oulu Lahui. In sentencing Estabilio, the District Judge imposed a sentence above the range suggested by the U.S. Sentencing Guidelines. At the sentencing hearing, the District Judge characterized Estabilio’s conduct as “reprehensible,” and driven by “greed” and a sense of “entitlement.” The District Judge pointed out that Estabilio’s scheme was revealed ultimately because of the careful attention to detail by staff at the charter school; not a change of heart by Estabilio. The District Judge also stated that Estabilio took advantage of her position of trust within the charter school and her theft impacted the charter school movement as a whole. Because of Estabilio’s “selfish” actions, the District Judge noted that the money the charter school needed for the children it served and to rebuild was not there when it needed it the most.
“This investigation and prosecution brought to light the despicable conduct of Kua O Ka Lā Public Charter School’s former financial officer. While charter schools and other educational institutions work to educate our keiki, unfortunately there are those like Estabilio who undermine those efforts to line their own pockets. As a result of this prosecution, Estabilio will have five years in federal prison to reflect upon the damage her actions caused to the native Hawaiian community, and the plight of those whose lives are so dramatically impacted by her shameful conduct,” said U.S. Attorney Price.
“Today’s sentencing sends a very simple message that these types of financial frauds will not go unpunished—they will be investigated to the fullest extent of the law,” said Trevor Fenwick, Special Agent in Charge of the U.S. Secret Service Honolulu Field Office.
In addition to a term of imprisonment, the Court also imposed three years of supervised release, restitution, and criminal forfeiture.
The case was investigated by the U.S. Secret Service with the assistance of the State of Hawaii Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Rebecca Perlmutter.
Federal Grand Jury Indicts Two for Kidnapping Resulting in DeathRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted two persons for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Separate indictments filed in U.S. District Court charge Patrick Devone Stallworth, 40, and Derick Irisha Brown a/k/a Quentesa Jackson, 29, each with one count of kidnapping and one count of conspiracy to kidnap a minor victim arising out of events which occurred in October 2019.
“This case is an excellent example of the seamless cooperation and coordination by federal agencies and our state and local partners,” Escalona said. “Federal law enforcement stands ready to assist whenever our help is needed.”
“The kidnapping of a child is one of a parent’s biggest fears.” First Assistant United States Attorney Lloyd C. Peeples said. “Despite their best efforts, federal, state, and local law enforcement were not able to bring the 3-year old victim home to her family. However, we hope that today’s charges will be a step towards bringing justice for her and her family.”
If proven that death resulted from the charges alleged in the indictments, Stallworth and Brown, would face a minimum sentence of life in prison, or death.
The Federal Bureau of Investigation, the Birmingham Police Department, and the United States Marshals Service all participated in this investigation. First Assistant U.S. Attorney Lloyd C. Peeples and Assistant U.S. Attorneys Robin Mark and Blake Milner are prosecuting the cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Father and Son Sentenced to Federal Prison for Drug DealingRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Christopher Gloster, Sr. (57, Fort Myers), aka “OG,” to seven years in federal prison for conspiring to distribute crack cocaine. Gloster’s son, Christopher Gloster, Jr. (30, Fort Myers), aka “Jitt,” was sentenced to five years in federal prison earlier this year for the same offense.
According to court documents, in April 2019, the Glosters approached a woman with a plan to establish a residence in Lee County from which she could use to sell their crack cocaine. Gloster, Jr. advised the woman on suitable locations and how to run the “trap house.” Over the course of the next month, the father-and-son team supplied the woman with approximately $7,000 in crack cocaine, often meeting her in busy parking lots, where they also gave her pointers on generating more business and avoiding law enforcement. The plan collapsed within a month.
Gloster, Sr. was arrested on May 15, 2019, during a search of his apartment. His son quickly confessed. In total, law enforcement seized nearly one pound of the duo’s drugs.
This case was investigated by the Drug Enforcement Administration and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Execution Rescheduled for Federal Inmate Convicted of Brutally Murdering a Grandmother and her Nine-Year-Old GranddaughterRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to reschedule the execution of Lezmond Mitchell, a federal death-row inmate who was convicted more than 17 years ago of the brutal murders of a grandmother and her nine-year-old granddaughter. The execution, initially scheduled for last December, is now scheduled to occur on August 26, 2020, at the U.S. Penitentiary in Terre Haute, Indiana.
In October 2001, Mitchell murdered Alyce Slim, a 63-year-old grandmother, and her nine-year-old granddaughter as part of a carjacking in Arizona. After getting a ride from Slim in her pickup truck, Mitchell and an accomplice stabbed her 33 times and threw her body into the backseat beside her granddaughter. Mitchell then drove the truck 30-40 miles into the mountains, ordered the girl “to lay down and die,” slit her throat twice, and crushed her head with rocks. Mitchell and his accomplice proceeded to sever the heads and hands of the victims’ bodies and burn their clothes. Mitchell later confessed to the murders. In May 2003, a jury in the U.S. District Court for the District of Arizona found him guilty of numerous federal crimes — including first-degree murder, felony murder, and carjacking resulting in death — and he was sentenced to death. His convictions and sentence were affirmed on appeal, and his claims for collateral relief were denied by every court that considered them.
Mitchell’s execution was initially scheduled for December 2019, but the U.S. Court of Appeals for the Ninth Circuit entered a stay of execution while it resolved an additional appeal by Mitchell. The court of appeals unanimously rejected Mitchell’s claim in April 2020 and denied his request for full-court rehearing earlier this month. When the Ninth Circuit stay formally concludes, no legal impediments will bar the execution, and it can occur without further delay.
Eleven Individuals Charged with Social Security Fraud in Operation Dead RingerRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of federal charges against 12 individuals in Operation Dead Ringer. The individuals are charged in 11 separate cases, with cumulatively stealing more than $700,000 in benefits paid by the Social Security Administration on behalf of beneficiaries who were actually deceased. If convicted, each faces a maximum penalty of 10 years’ imprisonment on each count.
Operation Dead Ringer, initiated in the Middle District of Florida, aggressively targets individuals who steal Social Security benefits inadvertently paid to deceased beneficiaries. According to an information and the respective indictments:
Donald Stevenson (51, Orlando) was charged with theft of government funds. According to his plea agreement, from June 2016 through April 2019, Stevenson fraudulently collected approximately $48,750 in Social Security benefits and $3,501 in benefits from the Pension Benefit Guarantee Corporation following his mother’s death on June 17, 2016.
Jacque Rathburn (64, Punta Gorda) was charged with theft of government funds. Between February 2013 and June 2019, Rathburn fraudulently collected approximately $78,164 of her mother’s Social Security benefits following her mother’s death on February 18, 2013.
Glenn Frank (70, Largo) was charged with theft of government funds. From September 2016 through February 2019, Frank fraudulently collected approximately $28,895 of his mother’s Social Security benefits following her death on September 17, 2016.
Louis Rozzero (62, Clearwater) was charged with theft of government funds. Between October 2014 and April 2019, Rozzero fraudulently collected approximately $57,332 of his partner’s Social Security benefits following his partner’s death on October 21, 2014.
Scott Eads (56, Indianapolis) was charged with theft of government funds and aggravated identity theft. From February 2016 through April 2018, Eads fraudulently collected approximately $30,547 in Social Security benefits following the death of a Social Security beneficiary on February 6, 2016.
Ronald Harshman (53, St. Cloud) was charged with theft of government funds. From August 2013 through May 2019, Harshman fraudulently collected approximately $62,341 of his father’s Social Security benefits following his father’s death on August 11, 2013.
Sandra Polder (79, Orlando) was charged with theft of government funds and false statement to a federal agency. From January 2013 through May 2019, Polder fraudulently collected approximately $49,299 of her son’s Social Security benefits following his death on January 15, 2013.
Rosemary Freeman (75, Summerfield) was charged with theft of government funds. From January 2013 through April 2019, Freeman fraudulently collected approximately $83,488 of her boyfriend’s Social Security benefits following his death in January 2013.
Bruce Griffin (58, Dunnellon) was charged with theft of government funds. From June 2013 through July 2019, Griffin fraudulently collected approximately $50,963 of his wife’s Social Security benefits following her death in May 2013.
Madelin Caridad Ifrim (61, Fort Myers) and Marian Ifrim (53, Fort Myers) have been charged with theft of government funds. From April 2013 through February 2019 Madelin Caridad Ifrim and Marian Ifrim fraudulently collected approximately $100,762 in Social Security benefits following the death of a Social Security beneficiary in May 2013.
Robert Lee West Jr. (71, Fort Myers) was charged with theft of government funds. From November 1995 through February 2019, West fraudulently collected approximately $118,186 in Social Security benefits following the death of a Social Security beneficiary in November 1995.
“As these charges demonstrate, stealing from SSA on behalf of a deceased beneficiary is a federal crime. We work closely with SSA and other government agencies to identify Social Security fraud and stop improper payments,” said Gail S. Ennis, Inspector General of Social Security. “I thank the United States Attorney’s Office and Special Assistant U.S. Attorney Suzanne Huyler for their continuing support of our investigations, and our law enforcement partners for their vital assistance in bringing these individuals to justice.”
An information and an indictment are merely formal charges that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The cases are being investigated by the Social Security Administration – Office of the Inspector General, with assistance from other federal and local law enforcement agencies, including the Pension Benefit Guarantee Corporation – Office of the Inspector General. Special Assistant United States Attorney Suzanne Huyler is coordinating the Operation. She, along with Assistant United States Attorneys Yolande Viacava and Tyrie Boyer, will be prosecuting the above cases.
El Salvadorian National Sentenced to Eight Months for Felony Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that MARLON TORRES-HERRERA, an El Salvadorian national, age 50, was sentenced to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) by U.S. District Judge Sarah Vance. He was originally arrested on November 14, 2019 by federal immigration authorities and had served over (8) eight months in jail prior to being sentenced today. He will be deported once again.
According to the indictment, MARLON TORRES-HERRERA (“TORRES”), a citizen of El Salvador reentered the United States after he was previously deported on May 16, 2011. TORRES faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. He pled guilty on June 24, 2020.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Eight People in Kenosha and Chicago Charged with Heroin Trafficking OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today federal charges against eight defendants associated with a drug trafficking organization operating in Southeastern Wisconsin and Chicago. The co-conspirators are members and associates of the Black Disciples Street Gang.
The defendants are: James Allen, a.k.a. “Jimmy,” (52), Eric Bradley, a.k.a. “Too Too,” (52), Joanna Johnson, (25), James Smith, (36) John Gaston, a.k.a. “Ike,” (50), Richard Wadlington (69), Latonya Webster, (20), and Lance Woodward, (41).
A federal grand jury returned an indictment charging six of the defendants with conspiring to distribute 1 kilogram or more of heroin. If convicted of this conspiracy charge, those six defendants face a mandatory minimum term of ten years in prison. Two other defendants were charged with distribution of heroin.
On July 28 and 29, 2020, federal, state, and local law enforcement officers arrested four defendants in a coordinated enforcement operation. Throughout the course of the investigation, officers recovered approximately one kilogram of heroin and a firearm.
“The Justice Department is committed to confronting violent drug trafficking organizations that possess firearms and pedal deadly opioids,” said United States Attorney Krueger. “Kudos to the excellent cooperation among the law enforcement agents and officers from multiple agencies, led by the FBI, to build this case.”
Federal Bureau of Investigation (“FBI”) Special Agent in Charge Robert E. Hughes stated, “I commend the work of the Southeastern Wisconsin Regional Gang Task Force. Successful collaborative law enforcement partnerships from Racine to Chicago brought this violent drug trafficking operation to an end. The FBI has a long reach across states to bring violent offenders to justice, as demonstrated in this successful investigation by the FBI Milwaukee and Chicago Divisions.”
The defendants were charged based on joint investigation by law enforcement officers from the FBI’s Southeastern Wisconsin Gang Task Force, Kenosha Drug Operations Group, Racine County Metro Drug Unit, City of Racine Police Department Drug Unit, and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Bridget J. Schoenborn.
Multiple law enforcement agencies participated in the arrests yesterday, including the FBI’s Southeastern Wisconsin Gang Task Force, FBI Chicago, Chicago Police Department, Kenosha Drug Operations Group, Racine County Metro Drug Unit, City of Racine Police Department Drug Unit, and the Drug Enforcement Administration.
The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Eight Indicted for Criminal Activity During May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH – Eight Pittsburgh-area residents have been charged in six separate indictments for criminal activity perpetuated during a civil disorder in the City of Pittsburgh, United States Attorney Scott W. Brady announced today. The alleged criminal acts occurred while Pittsburgh Police officers were engaged in responding to the violent demonstration in downtown Pittsburgh on May 30, 2020 at the same time that many other citizens were lawfully protesting over the death of George Floyd in Minneapolis, Minnesota. The indictments were returned under seal on July 22, 2020, and the final two indictments were unsealed today.
"Throwing IEDs and bricks at police officers, throwing projectiles at and striking police horses, and setting police cruisers on fire are not the protected First Amendment activities of a peaceful protest; they are criminal acts that violate federal law," said U.S. Attorney Brady. "We will continue to identify and prosecute these agitators, whose acts of violence hijacked a lawful protest and undermined a message of equality with one of destruction."
"The actions of the accused were uncalled for and prevented law enforcement officers from carrying out their duties to protect and serve our community," said FBI Pittsburgh Special Agent in Charge Michael Christman. "The FBI respects the rights of people to peacefully exercise their First Amendment freedoms but will not stand by and let those with a violent agenda take over peaceful protests. We, alongside the Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives, worked around the clock to uncover the faces behind the destruction and obstruction of law enforcement. We are not done. We continue to use all of our investigative resources to find each person who chose to start a violent confrontation."
"The defendants in this case posed as protesters to hijack otherwise peaceful demonstrations," said John Schmidt, acting Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms and Explosives’ Philadelphia Field Division. "ATF supports every citizens’ constitutional right to peaceably protest, and we are committed to rooting out those who use the current situation for their own nefarious intentions. Rest assured we will continue to work with our local and state partners to investigate violent acts committed during these unprecedented times until the criminal offenders are brought to justice."
"I would like to thank our law enforcement partners with FBI Pittsburgh, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office, plus the Damage Assessment and Accountability Taskforce for continuing to seek justice in these matters. The lawlessness we saw on May 30 cannot be tolerated. We appreciate the support to hold accountable those who committed violent acts in the City of Pittsburgh," Public Safety Director Wendell Hissrich said.
"The Pittsburgh Bureau of Police is committed to serving every resident, every visitor, and every person who works in the city of Pittsburgh. We have a track record of assuring the public’s First Amendment rights, and we will continue to protect those rights. But when protests turn violent, we have an obligation to protect everyone—including business owners, peaceful protesters, and law enforcement officers who are attacked for simply doing their jobs," Pittsburgh Police Chief Scott Schubert said.
The first indictment charges George Allen, 31, of Pittsburgh, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Allen knowingly and willfully caused damage to a police officer’s police vehicle by throwing a projectile through the front passenger window of the vehicle, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A second indictment charges Nicholas Lucia, 25, of Pittsburgh, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Lucia knowingly and willfully threw an object at uniformed police officers that appeared to be an explosive device, which landed on an officer’s vest, was quickly pulled off by another officer, and thereafter exploded when it hit the ground, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A third indictment charges Andrew Augustyniak-Duncan, 25, of Carnegie, Pennsylvania, with one count of obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Augustyniak-Duncan knowingly and willfully threw projectiles at several police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
A fourth indictment charges Raekwon Dac Blankenship, 24, of Pittsburgh, Pennsylvania with obstruction of law enforcement during civil disorder. According to the Indictment, on or about May 30, 2020, Blankenship knowingly and willfully caused damage to a police officer’s unmarked police vehicle by hitting, kicking and stomping on various parts of that vehicle, knowingly and willfully caused damage to a police officer’s marked vehicle by throwing a projectile into the windshield, and poked and struck multiple police horses, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties
The grand jury also returned a two-count indictment charging Devin Montgomery, 24, and Brandon Benson, 29, each of Pittsburgh, Pennsylvania, with malicious destruction or damage by fire of a vehicle of an organization receiving federal financial assistance and bank burglary. According to the Indictment, on May 30, 2020, Devin Montgomery maliciously damaged and destroyed by fire a police vehicle leased and possessed by the City of Pittsburgh Bureau of Police. The indictment further alleges that on May 30, 2020, Devin Montgomery and Brandon Benson entered and attempted to enter the Dollar Bank, located at 537 Smithfield Street in Pittsburgh, with the intent to take property, money or thing of value. The bank’s deposits were then insured by the Federal Deposit Insurance Corporation.
Finally, the grand jury returned a four-count indictment that named Da’Jon Lengyel, 22, of McKees Rocks, Pennsylvania, and Christopher West, 35, of Pittsburgh, Pennsylvania, as defendants. Counts one and two of the indictment allege that on or about May 30, 2020, Da'Jon Lengyel and Chrisopher West knowingly conspired to and did maliciously damage and destroy by fire a police vehicle leased and possessed by the City of Pittsburgh Bureau of Police, an organization receiving federal financial assistance. In addition, Counts three and four of the indictment allege that on May 30, 2020, Lengyel and West, respectively, knowingly and willfully caused damage to a police officer’s vehicle by hitting, kicking and stomping on various parts of the vehicle and by joining others to destroy the vehicle by fire. The indictment alleges this conduct resulted in the obstruction, impediment and interference of a law enforcement officer engaged in the lawful performance of his official duties.
For Allen, Lucia, Duncan and Blankenship, the law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. For Montgomery, the law provides for a mandatory minimum of five years and a maximum of 25 years in prison, a fine of $500,000, or both. For Benson, the law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. For Lengyel and West the law provides for a mandatory minimum of five years and a maximum of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
U.S. Attorney Brady credited the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police for the investigation leading to these indictments.
Assistant United States Attorneys Shaun E. Sweeney and Jonathan D. Lusty are prosecuting these cases for the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dubuque Man Pleads Guilty to Conspiring to Distribute Opioids that Caused Three DeathsRead the Press Release
A man who sold three deadly doses of opioids in April and May of 2019 pled guilty today in federal court in Cedar Rapids.
Travis Gordon Jones, age 38, from Dubuque, Iowa, was convicted of one count of conspiring to distribute controlled substances near a protected location resulting in death.
At the plea hearing, Jones admitted that he conspired with others to distribute the opioids in Dubuque in April and May 2019. Jones also admitted that he personally sold mixtures of heroin, fentanyl, and a synthetic opioid called valeryl fentanyl that were used by three individuals who then died of overdoses. One of the individuals died on April 24, 2019 after using drugs Jones had distributed. Another individual died on May 20, 2019, after using drugs Jones had distributed.
The third victim died on May 27, 2019. Evidence at prior hearings showed that Jackie Birch drove her boyfriend, Mateusz Syryjczyk, and the third victim to Jones’s home in Dubuque during the early morning of May 27, 2019. Birch and the third victim went into the home, where they purchased what was purported to be heroin from Jones. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The third victim began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch would occasionally perform CPR on the third victim to restore some breathing function, though the victim never regained consciousness. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. The third victim never recovered.
Birch previously pled guilty to aiding and abetting the distribution of a controlled substance. Syryjczyk pled guilty to misprision of a felony. Both Birch and Syryjczyk are awaiting sentencing.
Sentencing for Jones before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Jones remains in custody of the United States Marshal pending sentencing. Jones faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number for Jones is 19-CR-1037-CJW-MAR. The case file number for Birch is 19‑CR‑1041‑CJW-MAR. The case file number for Syryjczyk is 19‑CR‑1042‑CJW‑MAR.
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Delaware Man Pleads Guilty to Defrauding Federal Government of Hundreds of Thousands of Dollars in Small Business Fraud CaseRead the Press Release
WILMINGTON, Del. – A Delaware man pleaded guilty today to wire fraud in connection with false representations that he made in a final report to the United States Air Force.
Pengcheng Lv is a co-owner of AlphaSense, Inc. (“AlphaSense”), a small technology company located in Wilmington, Delaware. Starting as early as 2008 and continuing through at least 2016, AlphaSense, through Lv, voluntarily and intentionally made false representations in grant proposals and payment requests to United States government agencies, including the United States Department of Energy (DOE), Air Force, Navy, and Army, the Defense Advanced Research Projects Agency, the National Science Foundation (NSF), and the National Aeronautics and Space Administration (NASA), seeking funds for scientific research. The total loss attributable to Lv’s conduct is between $250,000 and $500,000. As part of Lv’s plea, he also agreed to enter into a civil settlement to pay $700,000 in damages to the government for violations under the False Claims Act.
Lv’s grant applications were submitted to the government agencies in connection with grants or contracts that were administered through the Small Business Innovation Research (“SBIR”) and Small Business Technology Transfer (“STTR”) programs. The SBIR and STTR programs encourage domestic small businesses to engage in federal research and development that has the potential for commercialization. These funding programs are highly competitive and require a showing of adequate and qualified staffing and, in some cases, industry support.
Lv’s scheme included forging letters from university professors and industry professionals and including such letters in his proposals to the government as evidence of capability, support, or interest; representing that AlphaSense had employees with impressive experience and education, when many of those individuals had never worked for AlphaSense; and, pocketing money that had been earmarked through the government awards to others, including “ghost” employees.
“Lv deceived numerous government agencies into awarding federal grants or contracts that should have gone to honest, qualified, and deserving small businesses,” said U.S. Attorney David C. Weiss. “Fraud in the award process serves to undermine public trust and confidence in such programs, and harms deserving small businesses looking to commercialize their ideas. With our agency partners, we will continue to identify and punish those who use the federal funding process to line their own pockets and we will disgorge bad actors of any ill-gotten gains.”
"The SBIR/STTR program is a valuable tool in advancing NSF's mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program," commented Allison Lerner, the Inspector General for NSF. "The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney's Office and our investigative partners for their strong support in this effort."
“I commend the outstanding investigative efforts of our law enforcement partners and the work of the USAO for the District of Delaware in reaching this plea,” said NASA Inspector General Paul K. Martin. “Their teamwork resulted in ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees.”
“Protecting research and development programs funded by the U.S. Department of Defense is a priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “The defendant’s guilty plea is the result of a joint effort and this case demonstrates the DCIS’ ongoing commitment to work with the USAO-DE and its law enforcement partners to investigate and prosecute individuals who defraud the SBIR and STTR programs.”
“The SBIR and STTR programs are critically important in the generation of scientific breakthroughs and technological innovations. Those who defraud our programs are a threat to our nation. The Department of Energy, Office of Inspector General will continue to work with our law enforcement partners to hold all who violate the integrity of our Nation's scientific programs accountable,” said Department of Energy Inspector General Teri L. Donaldson. “Thank you to the U.S. Attorney's Office and our law enforcement partners on this joint investigation.”
Lv faces a maximum penalty of 20 years imprisonment, 3 years supervised release, a fine equal to the greater of $250,000 or twice the gross loss, and a $100 special assessment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the Offices of Inspectors General at NASA, NSF, and DOE, the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service, with assistance from United States Citizenship and Immigration Services and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Laura D. Hatcher and Elisabeth Christensen, Special Assistant U.S. Attorney, from the National Science Foundation Office of Inspector General.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. Case 1:20-cr-00021-MN.
Decatur Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
BIRMINGHAM, Ala. – A Decatur man pled guilty today to filing a false tax return, announced United States Attorney Prim F. Escalona and Internal Revenue Service, Criminal Investigations Special Agent in Charge James E. Dorsey.
According to court documents, Jerry Wayne Scott, Jr., 47, owned and operated Advanced Roofing in Decatur, Alabama. In 2013, Advanced Roofing worked on several large projects for which it was paid approximately $750,083. In October 2014, Scott filed a 2013 tax return that reported gross receipts of $392,250 for Advanced Roofing. For the preparation of the return, Scott provided a hand-written document to the tax preparer that listed the business income as $392,250, but failed to provide any other documentation to the tax preparer, such as bank statements, ledgers, or Forms- 1099.
“Filing a false tax return is not a victimless crime - it affects all Americans,” said Escalona. “The U.S. Attorney’s Office and IRS Criminal Investigation will continue to aggressively pursue those who choose to cheat the tax system.”
“The license to run a business is not a license to avoid paying taxes,” said IRS Criminal Investigation Special Agent in Charge James Dorsey. “Mr. Scott’s filing of false tax returns, cheated all Americans, since we all share the responsibility to pay our fair share tax for the government services and protections that we enjoy.”
The maximum penalty for filing a false tax return is three years in prison and a $100,000 fine.
Internal Revenue Service- CID investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
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.
Charleston Man Pleads Guilty to Three Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty today to federal charges related to three drug transactions, announced United States Attorney Mike Stuart. Levi Kennith Carter, 30, pled guilty to two counts of distribution of heroin, fentanyl and methamphetamine, and one count of distribution of methamphetamine.
“A three-time felon – two prior drug convictions and now again,” said United States Attorney Mike Stuart. “Carter’s two prior drug convictions didn’t help him see the error of his ways. Maybe this conviction will. Maybe not. Regardless, he’ll have plenty of time to consider his future.”
Carter admitted that on February 28, 2020 and March 3, 2020, he met with a confidential informant working with the Charleston Police Department at an apartment complex on Renaissance Circle in Charleston. On each occasion, he sold the informant a mixture of heroin, fentanyl and methamphetamine. Carter admitted that he again met with a confidential informant working with the Charleston Police Department on March 5, 2020, also at the same apartment complex, and sold the informant a quantity of methamphetamine. Each transaction was monitored by law enforcement officers.
Carter has two prior federal convictions from the Southern District of West Virginia for felony offenses tied to drug dealing activity. On October 12, 2010, he was convicted of aiding and abetting the possession with intent to deliver crack cocaine, and on October 2, 2015, he was convicted of distribution of heroin.
Carter faces up to 20 years in prison when sentenced on October 29, 2020.
The Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00073.
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California Man Charged with Making Interstate Threat to Bomb Charlottesville Public School BuildingsRead the Press Release
CHARLOTTESVILLE, VIRGINIA – Lucas Isaiah Newton-Grant, a California man who previously lived in the City of Charlottesville, was arrested yesterday in California and charged with threatening to bomb Charlottesville City School buildings. United States Attorney Thomas T. Cullen and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
Newton-Grant, 27, of Rancho Mirage, Calif., was arrested yesterday morning and charged via a federal criminal complaint with one count of communicating interstate threats. Newton-Grant appeared before a magistrate judge in California late yesterday evening. He will now be transported to the Western District of Virginia for additional court proceedings.
According to court documents, on July 7, 2020, as Charlottesville City Schools were discussing re-opening plans for the fall, Newton-Grant, using the Facebook screenname, “Lucas Newton-Grant” threatened to become the next “serialbomber” and wanting to “blow those building up.”
After being warned by someone online about making threatening comments, Newton-Grant responded, “I want them to come after me. They’ll be in for a pleasant surprise.” He further posted that “people will (expletive) die.”
The investigation of the case is being conducted by the Federal Bureau of Investigations. Assistant United States Attorney Ronald M. Huber is prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Bridgeton Man Indicted for Armed Carjacking that Resulted in the Death of Female VictimRead the Press Release
St. Louis – A federal grand jury returned an indictment charging Anthony D. Jones, Jr., 28, of Bridgeton, Missouri, for his role in the May 4, 2019 carjacking and death of victim Jessica Vinson. The indictment charges Jones with carjacking resulting in death, possession of a firearm in furtherance of a crime of violence resulting in death, felon in possession of ammunition, felon in possession of a firearm, and witness tampering.
According to court documents, on May 4, 2019, Ms. Vinson’s body was recovered near the 5300 block of Vernon Avenue in St. Louis City. Investigation revealed that she had been shot. Her car, a 2015 Dodge Charger, was missing and her home in the 4300 block of Maffitt Avenue had been burglarized.
On May 6, 2019, St. Louis Metropolitan Police Department (SLMPD) officers attempted to conduct a traffic stop of Ms. Vinson’s vehicle, which fled at a high rate of speed and eventually crashed near an exit ramp at I-70 and Grand Avenue. Anthony Jones fled from the driver’s seat of the vehicle and a female fled from the front passenger seat. Police located Jones, who was hiding, and arrested him. Officers also recovered a pistol from the vehicle. The investigation also revealed that Jones sent electronic communications threatening to harm individuals who were aware of his violent conduct related to Ms. Vinson.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating these current charges.
The case was handled by Special Assistant United States Attorney (SAUSA) Jen Szczucinski as part of the Safer Streets Initiative. The initiative was launched by Attorney General Schmitt and U.S. Attorney Jeff Jensen in January of 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis. Since April 2019, lawyers from the Attorney General’s Office sworn in as SAUSAs have filed over 200 charges.
If convicted, carjacking resulting in death and possession of a firearm in furtherance of a crime of violence resulting in death carries a maximum penalty of life imprisonment or death; felon in possession of ammunition and felon in possession of a firearm carries a maximum penalty of 10 years imprisonment and a fine of $250,000; and witness tampering carries a maximum penalty of 20 years and a fine of $250,000 on each count.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Bay St. Louis Man Sentenced to 8 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Rico Laneaux, 38, of Bay St. Louis, was sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr. to serve 96 months in federal prison, followed by three years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Judge Guirola also ordered Laneaux to pay a $15,000 fine.
On February 8, 2018, Bay St. Louis Police Department officers and DEA agents responded to the Hollywood Casino Hotel in Bay St. Louis regarding a narcotics complaint. A casino staff member located a large amount of suspected methamphetamine in the safe of a hotel room rented by Laneaux. Laneaux was held by casino security in the lobby of the casino prior to the arrival of law enforcement officers, but he fled from security and left the property before officers arrived. The suspected methamphetamine and a scale were found in Laneaux’s hotel room safe. The DEA crime lab determined that the methamphetamine weighed 26.78 grams and was 95% pure.
Laneaux pled guilty before Judge Guirola on September 3, 2019.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Shundral H. Cole.
Aurora Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Scott Lynn Garland, age 55, of Aurora, Colorado, was sentenced to serve 120 months (10 years) in federal prison followed by 5 years on supervised release for possession of child pornography. He was also ordered to pay $15,000 in restitution to identified victims. Garland appeared at the sentencing hearing in custody and was remanded at its conclusion. The Denver office of the FBI joined in this announcement.
Garland first came to the attention of law enforcement when the National Center for Missing and Exploited Children (NCMEC) received information from Internet Service Providers (ISPs) showing that accounts associated with Garland were involved in obtaining child pornography.
FBI agents conducting the subsequent investigation determined that Garland used a number of internet-based programs to communicate with others interested in child pornography. He also used these services to distribute and receive child pornography. Agents then obtained access to Garland’s online accounts as well as his personal devices. They reviewed the content and found child pornography depicting abuse of very young children.
In total, law enforcement determined that Garland possessed 1,917 still images and 843 video files of child pornography. Agents determined that he started his collection in approximately 2008.
The child pornography from Garland's devices was sent to NCMEC, which maintains a database of child pornography depicting identified child victims. NCMEC reported that 182 of the videos and 394 of the still images from Garland's collection reflect already identified child victims.
“Mr. Garland used images and videos of very young children with no regard for the carnage his actions caused,” said U.S. Attorney Jason Dunn. “While the facts of this case are extremely difficult to comprehend, it is important that parents know we’re working to protect their children, and that child predators know we are coming for them.”
“Today’s sentencing of Scott Garland demonstrates the FBI’s commitment to investigating cases of child sexual abuse material to protect our children from those who engage in this type of activity,” said FBI Denver Special Agent in Charge Michael Schneider. “The teamwork between our agents and law enforcement partners on the Child Exploitation and Human Trafficking Task Force ensured there is one less predator victimizing the most innocent and vulnerable members of our community.”
The sentence was pronounced by U.S. District Court Christine M. Arguello on July 29, 2020. Garland was charged by indictment on August 8, 2019, and pleaded guilty on December 19, 2019. The Denver office of the FBI and their Child Exploitation and Human Trafficking Task Force conducted this investigation. The defendant was prosecuted by Assistant U.S. Attorney Patricia W. Davies.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-361.
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.
Atlanta City Councilman Antonio Brown has been Indicted for Attempting to Defraud Several Financial InstitutionsRead the Press Release
ATLANTA – Atlanta City Councilman Antonio Brown has been indicted on multiple fraud charges in connection with Brown’s attempts to defraud several financial institutions by taking out loans and making credit card purchases – and then falsely claiming that he was the victim of identity theft and was not responsible for the charges or repaying the loans.
"For years, Antonio Brown allegedly sought to defraud a number of banks and credit card companies by falsely claiming that he was the victim of identity theft," said U.S. Attorney Byung J. "BJay" Pak. "Brown’s scheme was eventually brought to light, resulting in his indictment by the grand jury."
"This investigation is another example of the power of partnerships in combating financial fraud and identity theft," said Tommy D. Coke, Postal Inspector in Charge of the Atlanta Division. “Postal Inspectors are dedicated to pursuing individuals who seek to defraud for their own financial gain.”
"We are committed to working with our Federal law enforcement partners to aggressively pursue those who falsely claim their identity was stolen in an attempt to defraud financial institutions," said Gail S. Ennis, Inspector General of Social Security. "I thank the U.S. Postal Inspection Service and IRS Criminal Investigation for their efforts in this case, and the United States Attorney’s Office for bringing these charges."
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in 2012, Antonio Brown opened a number of credit cards, which he then used to make thousands of dollars’ worth of purchases for his own personal benefit. Brown also obtained over $60,000 in automobile loans to finance the purchases of a Mercedes C300 and a Range Rover. Despite opening and using these credit cards and despite taking the money for the two automobile loans, Brown allegedly falsely claimed that his identity had been stolen and that someone else had made the credit card purchases or had taken out these loans.
The indictment further alleges that Brown provided false information to Signature Bank when applying for a $75,000 loan in August 2017. During the loan application process, Brown provided a personal financial statement falsely claiming that he earned $325,000 per year and had $200,000 in available cash or assets. Brown allegedly knew this information was false because he had recently submitted other loan applications reporting far less income and available cash or assets. For instance, in a July 2017 loan application to another bank, Brown submitted a 2016 federal income tax return reporting that he earned $125,000 per year (which was $200,000 less than what he represented that his income was to Signature Bank). Further, in an August 2017 loan application to yet another bank, Brown claimed he had an annual salary of $175,000 (which was $150,000 less than what he told Signature Bank), and only had $25,000 in available cash and assets (which was $175,000 less than what he told Signature Bank).
U.S. Attorney Pak noted that the charges in the indictment all relate to conduct that occurred before Brown was elected to the Atlanta City Council.
On July 29, 2020, the Grand Jury charged Antonio Brown, 35, of Atlanta, Georgia, with wire fraud, mail fraud, bank fraud, and making false statements on a bank loan application.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, and the Internal Revenue Service – Criminal Investigation Division are investigating this case.
Assistant U.S. Attorneys Thomas J. Krepp and Jeffrey W. Davis, Chief of the Public Corruption and Special Matters Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alton Woman Sentenced for Cashing Dead Mother's Social Security ChecksRead the Press Release
This morning, in federal court in East St. Louis, Mia Lynn Cousett, 33, of Alton, Illinois, was
sentenced to three years of probation for her conviction on twelve felony counts of theft of
government funds. The funds stolen were social security checks payable to Cousett’s mother, who
died in April 2017.When she pled guilty to these offenses on Feb. 7, 2020, Cousett admitted that for twelve months
after her mother passed away, she continued to cash her mother’s social security checks and then
used those funds for her own expenses. Cousett forged her dead mother’s signature on the backs of
each of those checks, deposited the checks into her mother’s bank account, and then accessed those
funds using her mother’s debit card. The total of the social security checks stolen by Cousett was
$15,601. Cousett also admitted that she used her dead mother’s driver’s license number to conceal
and perpetuate her thefts.In addition to the three years of probation, the court also ordered Cousett to pay full restitution
of $12,849.06. This figure represents the $15,601 that was stolen, less $2,751.94 that was
recovered prior to the sentencing hearing. Cousett was also ordered to pay $1,200 in special
assessments.At the time of the offenses, Cousett was employed as a letter carrier for the post office in Alton,
Illinois. As part of her plea agreement, Cousett voluntarily resigned from her position at the post
office.The investigation was conducted by agents from the Social Security Administration, Office of the
Inspector General, Chicago Field Division, the United States Postal Inspection Service, Chicago
Division, St. Louis Field Office, and the Alton Police Department. The ca e was
prosecuted by Assistant United States Attorneys Scott A. Verseman and Luke J. Weissler.
Alleged Chicago Gang Leader Among 23 Defendants Charged in Federal Drug and Gun InvestigationRead the Press Release
CHICAGO — The alleged leader of the Black Disciples street gang in Chicago is among 23 individuals facing criminal charges as part of a federal investigation into drug and gun trafficking on the city’s South Side.
During the multi-year investigation, law enforcement seized 24 firearms, more than 13 kilograms of cocaine, more than a kilogram of heroin, approximately 1,350 grams of heroin laced with fentanyl, approximately 750 grams of fentanyl or fentanyl analogue, approximately 378 grams of crack cocaine, $52,595 in suspected illicit cash proceeds, and distribution quantities of suspected MDMA pills. Much of the alleged drug and gun trafficking occurred in the Englewood neighborhood on the South Side of Chicago.
Indictments and criminal complaints unsealed this week in U.S. District Court in Chicago charge 22 of the defendants with various drug or firearm offenses, while one defendant faces bank fraud charges. The defendants were arrested Tuesday and have begun making initial appearances in federal court.
Included among the defendants is DARNELL MCMILLER, also known as “Murder,” who is described in the charges as the current leader of the Black Disciples street gang in Chicago. Several other alleged high-ranking members of the Black Disciples were also charged and arrested, including CLARENCE JANUARY, who allegedly leads the gang’s “Dog Pound” faction, and KENNETH BROWN, who allegedly supplied the gang with drugs for distribution in Chicago. CHARLES KNIGHT, an alleged high-ranking member of the Gangster Disciples street gang, is charged as part of the probe with supplying narcotics to McMiller’s crew.
The investigation was led by the FBI and Chicago Police Department, with assistance from ATF, DEA, IRS Criminal Investigation Division, the Chicago High Intensity Drug Trafficking Task Force (HIDTA), and the FBI Windy City Task Force.
The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; David Brown, Superintendent of CPD; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Kathy A. Enstrom, Special Agent-in-Charge of IRS-CI in Chicago. Assistant U.S. Attorneys Andrew J. Dixon, Esther Mignanelli, Tobara Richardson, and Jasmina Vajzovic represent the government.
Valuable assistance in the probe was provided by the U.S. Attorney’s Office for the Eastern District of Wisconsin, which unsealed an eight-person indictment this week charging heroin trafficking offenses that are related to this investigation.
The Black Disciples are a national street gang that is prevalent throughout Chicago and the surrounding suburbs. According to the charges, members of the Black Disciples have been distributing narcotics and guns in the Englewood neighborhood and other parts of Chicago. The charges describe more than 50 illicit transactions in which alleged Black Disciples members sold guns or drugs to individuals who were cooperating with law enforcement. In many instances, the cooperating individuals surreptitiously video-recorded the transaction at the direction of law enforcement.
The complaint against McMiller, 34, of Chicago, accuses him of conspiring with Knight, 56, of Riverdale, to distribute fentanyl-laced heroin to a cooperating individual on Sept. 30, 2019. The transaction occurred in the 7000 block of South Lowe Avenue in Chicago, the complaint states.
Brown, 59, of Chicago, is charged with conspiring with alleged Black Disciple member TERRENCE MORRIS, 48, of Chicago, to distribute heroin in March 2019. During the investigation, law enforcement carried out a court-authorized search of a South Side storage unit rented by Brown and discovered 13 kilograms of cocaine, which were individually wrapped in sealed packages, the charges state.
January, 27, of Chicago, is accused of trafficking three handguns in the summer of 2019. He had previously been convicted of a felony firearm offense in the Circuit Court of Cook County and was not lawfully allowed to possess the guns. Several other convicted felons were also charged with unlawfully possessing firearms, including rifles and a shotgun furnished to members of the Black Disciples.
Charged with federal drug offenses are: McMiller; Knight; Brown; Morris; ALONZO BROOKS, 49, of Chicago; SHONGO COLLIER, 48, of Riverdale; LAWRENCE DRAUS, 41, of Crestwood; FREDRICK STEWART, 47, of Chicago; TONY REDDING, 44, of Chicago; RAMONT AUSTIN, 39, of Chicago; FRANKLIN REDDING, 46, of Chicago; BARRY MICKIEL, 49, of Chicago; BRIAN BILLUPS, 40, of Plainfield; JOSEPH ANDERSON, 43, of Chicago; and SANTANA STEELE, 36, of Chicago.
Charged with federal firearm offenses are January; ANTOINE MCDANIELS, 44, of Chicago; DEANDRE MARTIN, 32, of Chicago; WILLIE ALFORD, 45, of Chicago; TRAVIS WASHINGTON, 24, of Chicago; WENDALL KEMP, 55, of Chicago; and SHAWN HUDSON, 48, of Harvey.
Charged with bank fraud is JOHN ECTOR, 47, of Chicago.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The U.S. Attorney’s Office holds gun offenders accountable through Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. The U.S. Attorney’s Office has deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms. Additional federal law enforcement resources were recently allocated to Chicago under Operation Legend, which will enhance existing efforts by federal law enforcement agencies working in conjunction with state and local law enforcement offices to fight violent crime.
Additional Charge, for Child Sexual Exploitation, Filed Against Las Vegas Man Who Allegedly Sought to Exploit Protests in Las Vegas and Incite ViolenceRead the Press Release
LAS VEGAS, Nev. – Stephen Thomas Parshall, aka “Kiwi,” 35, of Las Vegas — who was charged last month with violations of federal and state law for conspiracy to cause destruction during protests in Las Vegas, and possession of an unregistered destructive device (specifically, an improvised incendiary device commonly known as a Molotov cocktail) — was charged earlier today by a separate criminal complaint with one count of sexual exploitation of children, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department. Parshall’s initial appearance in federal court on the new criminal complaint has not yet been scheduled.
According to court documents, Parshall was arrested on May 30, 2020. Law enforcement had learned of Parshall’s alleged participation in a conspiracy to cause destruction during protests that evening in Las Vegas, and of his alleged membership in the “Boogaloo” movement, a term used by extremists to signify a coming civil war and/or collapse of society. When law enforcement officers executed search warrants after the arrest, they located 10 images of child pornography, as well as numerous images of child erotica, on Parshall’s cellular phone
The minimum statutory penalty for the offense of sexual exploitation of children is 15 years in prison, and the maximum statutory penalty is 30 years in prison and a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only.
A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
If you have information regarding possible child sexual exploitation, please make a report to the National Center for Missing and Exploited Children by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
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 U.S. Attorney’s Offices and the Department of Justice’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.justice.gov/psc.
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Acting U.S. Attorney Announces Arrest of 65-Year-Old Pastor for Receipt of Child PornographyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of FRANCIS HUGHES. HUGHES, 65, a pastor at a religious institution in Queens, New York, is charged with receiving images of child pornography via text from a 15-year-old minor in Westchester, New York, with whom Hughes was engaging in sexually explicit text communications. HUGHES was arrested this morning and will be presented later today before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
Acting U.S. Attorney Audrey Strauss said: “The allegations against Francis Hughes are chilling and frightening to any parent. A person who, by the nature of his profession, is presumed to be trustworthy allegedly victimized a child. Thanks to the FBI, Hughes now faces a serious federal charge.”
FBI Assistant Director William F. Sweeney Jr. said: “We expect adults, especially those in positions of trust like Francis Hughes, to protect our children, not victimize them. Sadly, these allegations demonstrate there are still predators out there who abuse this trust. If you or anyone you know may have been a victim of Rev. Hughes, we are asking you contact us at 1-800-CALL-FBI. If you are a parent or guardian, please take a moment to have a discussion with your children about protecting themselves and about how they can report the type of predatory behavior that is alleged here today.”
According to the Complaint[1] filed today in White Plains federal court:
On February 16, 2020, HUGHES communicated by text messages with a 15-year-old boy (“Minor-1”). During the course of the text communications, among other things, Minor-1 sent HUGHES three images of Minor-1’s penis. Upon receiving one of the images, HUGHES responded, among other things, “Yummmmm I will suck you so much” and “Make you cum.” During the communications, HUGHES told Minor-1 that he was a part-time college professor and a counselor.
There may be more victims of this alleged conduct. If you have information to report, contact the Federal Bureau of Investigation at 1-800-CALL-FBI.
* * *
HUGHES, 65, of Glendale, New York, is charged with one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the efforts of the FBI and its Westchester County Safe Streets Task Force, and thanked the Greenburgh Police Department for its assistance. She added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charge in the Complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
106 Month Prison Sentence for Parolee Caught with Stolen GunRead the Press Release
MACON, Ga. – A parolee caught with a stolen firearm was sentenced to federal prison this morning for his crime, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
LeKanderick Pitts, 39, of Macon, was sentenced to 106 months in prison and three years supervised release by U.S. District Judge Marc Treadwell after pleading guilty to one count possession of a stolen firearm. There is no parole in the federal system.
Law enforcement with the Bibb County Sheriff’s Office and Georgia Department of Community Supervision conducted a parole search on September 28, 2018, of the motel room where Pitts was residing, as well as his vehicle. Officers confiscated baggies of cocaine, 14 rounds of ammunition and a stolen Hi-Point, Model C9, 9mm semi-automatic pistol. Pitts admitted he was in possession of the stolen firearm.
“The punishment is steep for possessing a stolen gun. This defendant’s decision to possess a stolen gun landed him in federal prison for more than eight years, where there is no parole,” said U.S. Attorney Charlie Peeler. “We are working closely with our local law enforcement partners to identify criminal gun cases that warrant federal prosecution, as part of our shared commitment through Project Safe Neighborhoods to reduce violent crime in Macon and across the Middle District. I want to thank Bibb County Sheriff’s Office, Georgia Department of Community Supervision, GBI and ATF for their work in this investigation.”
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office, the Georgia Department of Community Supervision, GBI and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Tuesday 28 July 2020
Woman Sentenced to 18 Months in Prison for Assaulting Customs and Border Protection OfficerRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – July 27, 2020
SAN DIEGO – Barbara Ross was sentenced in federal court today to 18 months in prison for assaulting a Customs and Border Protection Officer at the San Ysidro Port of Entry on August 2, 2019.
Ross, 39, was convicted by a federal jury following a two-day trial in January. According to evidence presented at trial, Ross attempted to enter the United States through a vehicle lane with her husband and two minor children in her car. When Customs and Border Protection Officer Robert Barragan attempted to ask Ross standard questions regarding her international travel, Ross became aggressive and threatening.
Ross screamed profanities at Officer Barragan and refused to answer questions. Officer Barragan referred her to a secondary inspection lot where other officers could speak with Ross without causing delays in the vehicle lane. As Ross’s husband drove their car to the secondary inspection lot, Ross continued to scream profanities. Upon arriving in the lot, Ross jumped out of the car and when Customs and Border Protection Officer Moises Perez contacted her, Ross repeatedly slapped at Officer Perez with enough force that she broke the skin on his hand and drew blood.
At sentencing today, the Court heard about Ross’s history of aggressive behavior towards law enforcement going back to 2003. The Court also heard about multiple prior incidents at the San Ysidro Port of Entry, including an incident in August 2018 where Ross refused to obey an officer’s orders, which caused officers to have to deploy a “stop stick” in order to stop her car.
“Our courageous federal officers put their lives on the line every day to protect our country, and when they are attacked, we will respond appropriately,” said U.S. Attorney Robert Brewer. “This defendant assaulted multiple officers without provocation. That kind of violence is unacceptable. We are committed to vigorously prosecuting these cases.” Brewer commended the work of prosecutor Michael Deshong and agents from HSI and CBP for their excellent work.
“Homeland Security Investigations (HSI) is committed to investigating and bringing to justice any assault against a law enforcement officer, specifically our federal partners within the Department of Homeland Security,” said Cardell Morant, Special Agent in Charge for HSI in San Diego. “The message is very simple, if you become violent with a federal law enforcement officer performing their duties, you can expect swift and severe charges in federal court.”
“CBP officers serve their country with honor, vigilance and professionalism, and as part of their national security duties they face significant risks. We are extremely appreciative of the diligent work of U.S. Homeland Security Investigations (HSI) special agents and the U.S. Attorney’s Office Southern District of California in bringing this case to justice,” said Pete Flores, CBP Director of Field Operations in San Diego.
DEFENDANTS Case Number 19cr3350-W
Barbara L. Ross Age: 39 San Diego, CA
SUMMARY OF CHARGES
Assault on a Federal Officer with Physical Contact, in violation of Title 18, United States Code, Section 111(a)(1)
Maximum Penalty: Eight years in prison
AGENCIES
United States Customs and Border Protection
Homeland Security Investigations
West Carrolton man sentenced to 16 years in prison for receiving images of sexual abuse of childrenRead the Press Release
DAYTON – Robert L. Hudson, 36, of West Carrolton, was sentenced in U.S. District Court to 192 months in prison for receiving child pornography.
According to court documents, Hudson used a Kik messenger account to receive and distribute child pornography files from others.
Hudson also used the online account to communicate with other users about child sexual exploitation.
In one such conversation, Hudson stated he had viewed child pornography with babies as young as six months old. Hudson also indicated in the conversation that he had engaged in sexual activities with a 12-year-old boy.
Hudson and the other user discussed options for finding and abusing young boys, including ways to “lure them in.”
Hudson was charged by criminal complaint in March 2019 and pleaded guilty in February 2020.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura Clemmens is representing the United States in this case.
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Utah Man Posing as Medical Doctor to Sell Baseless Coronavirus Cure Indicted on Fraud ChargesRead the Press Release
Utah resident Gordon H. Pedersen has been indicted for posing as a medical doctor to sell a baseless treatment for coronavirus (COVID-19). According to the indictment returned by a federal grand jury in Salt Lake City late last week, Pedersen fraudulently promoted and sold ingestible silver-based products as a cure for COVID-19 despite having no evidence that his products could treat or cure the disease. Pedersen is also alleged to have claimed to be a physician and worn a stethoscope and white lab coat in videos and photos posted on the Internet to further his alleged fraud scheme.
In a related matter, the company Pedersen previously co-owned, My Doctor Suggests LLC (My Doctor Suggests), has agreed to plead guilty to a one-count criminal information related to its false and misleading marketing of ingestible silver products as a drug treatment for COVID-19. The company has severed ties with Pedersen and agreed to cooperate in his prosecution. The criminal information filed Thursday in the U.S. District Court for the District of Utah are part of a global resolution with My Doctor Suggests that also includes a civil consent order requiring the company to cease fraudulently labeling its products and to issue full refunds to affected consumers.
“The Department of Justice will take swift action to protect consumers from those who offer phony cure-alls for the treatment and prevention of COVID-19,” said Acting Assistant Attorney General Ethan Davis. “We will continue to work closely with our partners at the Food and Drug Administration to quickly shut down schemes to promote and sell unlawful products during this pandemic.”
“In addition to the imposition of a civil restraining order that successfully shut down fraudulent claims of a COVID-19 cure-all, Mr. Pedersen now faces criminal charges for his conduct. The federal felony allegations are serious, especially against the backdrop of this pandemic where Americans are yearning for effective relief. If proven, this conduct reveals a scheme where greed was a higher priority than conveying truth to consumers,” said U.S. Attorney John W. Huber for the District of Utah.
The indictment against Pedersen alleges that, beginning in early 2020, he conducted a scheme to defraud consumers throughout the United States, by falsely presenting himself as a medical doctor and promoting and selling silver products on the Internet based on fraudulent claims of protection against, and treatment for, COVID-19, in the midst of a worldwide pandemic.
According to the criminal information filed Friday, My Doctor Suggests made false and misleading claims that the company’s silver-based products could be ingested to protect against COVID-19 and the products lacked the necessary directions for use as a drug product. The information also allege My Doctor Suggests operated without properly registering with the Food and Drug Administration (FDA). It is anticipated My Doctor Suggests will plead guilty to a single misdemeanor count of distributing misbranded drug products in interstate commerce in violation of the Food, Drug, and Cosmetic Act.
“The FDA is actively monitoring the marketplace for fraudulent products represented as preventing, curing, or treating COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “Today’s announcement should serve as a reminder that we will take action against those who jeopardize the health of Americans while taking advantage of a crisis.”
The Department of Justice previously sought and obtained an emergency court order in the U.S. District Court for the District of Utah, alleging in its civil complaint that My Doctor Suggests worked with two co-defendants, Pedersen and his company GP Silver LLC, to fraudulently promote and sell various silver products for the treatment and prevention of COVID-19. Subsequent orders temporarily enjoined Pedersen, GP Silver LLC, and My Doctor Suggests from distributing silver products as well as representing they could cure, mitigate, treat, or otherwise prevent COVID-19 or any other disease. The recent consent order permanently enjoins My Doctor Suggests LLC from making these representations, and it provides a notification and refund process for deceived consumers.
The consent order specifically requires that My Doctor Suggests LLC permanently stop any fraudulent promotions, clearly and conspicuously disavow any statement that its silver products treat or prevent COVID-19 in future marketing materials and consumer notices, implement robust compliance measures to prevent a reoccurrence, and provide full refunds upon request to any customer who purchased its silver products under fraudulent pretenses. Affected customers can contact My Doctor Suggests LLC at (1-866- 660-9868) or [email protected].
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
The criminal action is being prosecuted by Assistant U.S. Attorney Jacob Strain from the U.S. Attorney’s Office for the District of Utah with assistance from Trial Attorney Matt Lash from the Department of Justice, Civil Division’s Consumer Protection Branch and James Smith from the FDA’s Office of Chief Counsel. The criminal case was investigated by the FDA’s Office of Criminal Investigations and the FBI’s Utah Field Office.
The civil enforcement action was handled by Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joel A. Ferre, with support from FDA’s Office of Criminal Investigations.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
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.
Utah Man Posing as Medical Doctor to Sell Baseless Coronavirus Cure Indicted on Fraud ChargesRead the Press Release
SALT LAKE CITY – Utah resident Gordon H. Pedersen has been indicted for posing as a medical doctor to sell a baseless treatment for coronavirus (COVID-19). According to the indictment returned by a federal grand jury in Salt Lake City late last week, Pedersen fraudulently promoted and sold ingestible silver-based products as a cure for COVID-19 despite having no evidence that his products could treat or cure the disease.
Pedersen is also alleged to have claimed to be a physician and worn a stethoscope and white lab coat in videos and photos posted on the Internet to further his alleged fraud scheme.
In a related matter, the company Pedersen previously co-owned, My Doctor Suggests LLC (My Doctor Suggests), has agreed to plead guilty to a one-count criminal information related to its false and misleading marketing of ingestible silver products as a drug treatment for COVID-19. The company has severed ties with Pedersen and agreed to cooperate in his prosecution. The criminal information filed Thursday in the United States District Court for the District of Utah is part of a global resolution with My Doctor Suggests that also includes a civil consent order requiring the company to cease fraudulently labeling its products and to issue full refunds to affected consumers.
“In addition to the imposition of a civil restraining order that successfully shut down fraudulent claims of a COVID-19 cure-all, Mr. Pedersen now faces criminal charges for his conduct. The federal felony allegations are serious, especially against the backdrop of this pandemic where Americans are yearning for effective relief. If proven, this conduct reveals a scheme where greed was a higher priority than conveying truth to consumers,” U.S. Attorney John W. Huber said.
“The Department of Justice will take swift action to protect consumers from those who offer phony cure-alls for the treatment and prevention of COVID-19,” said Acting Assistant Attorney General Ethan Davis. “We will continue to work closely with our partners at the Food and Drug Administration to quickly shut down schemes to promote and sell unlawful products during this pandemic.”
The indictment against Pedersen alleges that, beginning in early 2020, he conducted a scheme to defraud consumers throughout the United States, by falsely presenting himself as a medical doctor and promoting and selling silver products on the Internet based on fraudulent claims of protection against, and treatment for, COVID-19, in the midst of a worldwide pandemic.
According to the criminal information filed Friday, My Doctor Suggests made false and misleading claims that the company’s silver-based products could be ingested to protect against COVID-19 and the products lacked the necessary directions for use as a drug product. The information also allege My Doctor Suggests operated without properly registering with the Food and Drug Administration (FDA). It is anticipated My Doctor Suggests will plead guilty to a single misdemeanor count of distributing misbranded drug products in interstate commerce in violation of the Food, Drug, and Cosmetic Act.
“The FDA is actively monitoring the marketplace for fraudulent products represented as preventing, curing, or treating COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “Today’s announcement should serve as a reminder that we will take action against those who jeopardize the health of Americans while taking advantage of a crisis.”
The Department of Justice previously sought and obtained an emergency court order in the United States District Court for the District of Utah, alleging in its civil complaint that My Doctor Suggests worked with two co-defendants, Pedersen and his company GP Silver LLC, to fraudulently promote and sell various silver products for the treatment and prevention of COVID-19. Subsequent orders temporarily enjoined Pedersen, GP Silver LLC, and My Doctor Suggests from distributing silver products as well as representing they could cure, mitigate, treat, or otherwise prevent COVID-19 or any other disease. The recent consent order permanently enjoins My Doctor Suggests LLC from making these representations, and it provides a notification and refund process for deceived consumers.
The consent order specifically requires that My Doctor Suggests LLC permanently stop any fraudulent promotions, clearly and conspicuously disavow any statement that its silver products treat or prevent COVID-19 in future marketing materials and consumer notices, implement robust compliance measures to prevent a reoccurrence, and provide full refunds upon request to any customer who purchased its silver products under fraudulent pretenses. Affected customers can contact My Doctor Suggests LLC at (1-866- 660-9868) or [email protected].
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
The criminal action is being prosecuted by Assistant U.S. Attorney Jacob Strain from the U.S. Attorney’s Office for the District of Utah with assistance from Trial Attorney Matt Lash from the Department of Justice, Civil Division’s Consumer Protection Branch and James Smith from the FDA’s Office of Chief Counsel. The criminal case was investigated by the FDA’s Office of Criminal Investigations and the FBI’s Utah Field Office.
The civil enforcement action was handled by Trial Attorneys Speare I. Hodges and Sarah Williams of the Department of Justice, Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joel A. Ferre, with support from FDA’s Office of Criminal Investigations.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
United States Reaches $200,000 Settlement with Siskiyou County Pharmacy for Controlled Substances Act ViolationsRead the Press Release
SACRAMENTO, Calif. — KJL Consultants Inc., doing business as Luke’s Yreka Drug, and owner Lucas Walsh have agreed to pay $200,000 to resolve allegations that the pharmacy committed multiple violations of the Controlled Substances Act’s strict recordkeeping requirements, U.S. Attorney McGregor W. Scott announced.
The pharmacy permanently ceased operations in December 2018, and a key term of the settlement agreement included the pharmacy’s surrender of its DEA registration for cause.
The settlement relates to a DEA administrative audit and inspection of Luke’s Yreka Drug in September 2016 during which the DEA identified more than 150 Controlled Substances Act violations including failing to maintain the archived DEA-E-222 form for orders of controlled substances from a distributor, to properly document the quantity and/or date of controlled substances received from a distributor, and to conduct a complete and accurate biennial inventory.
“To prevent diversion of opioids and other dangerous drugs and avoid harm to the public from abuse of these powerful substances, it is critical that all pharmacies, whether they be large national chains or small local stores like Luke’s, ensure that their drug transactions are properly documented, tracked and inventoried,” U.S. Attorney Scott said. “This settlement emphasizes the importance of proper and diligent recordkeeping and the significant penalties to pharmacies that fail to do so.”
“Failure to ensure proper record keeping and accurate inventories of controlled substances allows for potential diversion of powerful prescription drugs,” stated DEA Special Agent in Charge, Daniel Comeaux. “DEA is committed to keeping our communities safe by holding companies like KJL accountable for such deficiencies.”
This settlement resulted from joint efforts of the U.S. Attorney’s Office for the Eastern District of California and the DEA. It was handled by Assistant U.S. Attorney Lynn Trinka Ernce.
The claims resolved by this settlement are allegations only.
U.S. Attorney’s Office Settles ADA Claim with Hinsdale Plastic Surgeon over Alleged HIV DiscriminationRead the Press Release
CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois announced today that, as part of continued efforts to enforce the Americans with Disabilities Act, it has reached a settlement with Midwest Plastic Surgery in Hinsdale to resolve claims of discrimination against a 47-year-old woman with HIV.
The U.S. Attorney’s Office found that Midwest Plastic Surgery discriminated against the patient when its plastic surgeon unlawfully refused to perform a breast reduction surgery due to the patient’s HIV status. The patient had been living with HIV for more than 25 years, but this was the first time she had been refused medical treatment because of the virus. The U.S. Attorney's Office’s investigation revealed that Midwest Plastic Surgery’s actions were not based on, or consistent with, current medical knowledge. Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking medical care.
Under the terms of the settlement agreement and consistent with penalties available under the ADA, Midwest Plastic Surgery will pay $25,000 to the victim of discrimination. In addition, Midwest Plastic Surgery must train its employees on the requirements of the ADA, implement an antidiscrimination policy, and report to the U.S. Attorney’s Office every time a person is not accepted as a patient, with a written justification for the decision. The U.S. Attorney’s Office waived the civil fine in recognition of the remorse expressed by the plastic surgeon for his misconduct and Midwest Plastic Surgery’s cooperation during the investigation.
This settlement is the second HIV-related discrimination case the U.S. Attorney's Office has resolved in recent months. In December 2019, the office reached a settlement with Downers Grove Tattoo Company, which had unlawfully refused to give a customer a tattoo because she was HIV-positive. Under the terms of that settlement agreement, the Downers Grove Tattoo Company paid $10,000 to the victim for violating the ADA. In addition, Downers Grove Tattoo Company was required to train its employees on the requirements of the ADA and implement an antidiscrimination policy.
“Physicians, tattoo artists, and others should understand that individuals seeking medical treatment or other physical care should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “These settlements should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”
Title III of the ADA prohibits public accommodations, such as doctor’s offices and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, advantages and accommodations provided. For more information regarding the Department of Justice’s efforts to combat HIV discrimination, please visit https://www.ada.gov/hiv/ada_hiv_discrimination.htm.
The ADA was signed into law 30 years ago this week. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY), or log on to the ADA website at www.ada.gov.
U.S. Attorney’s Office Observes 30th Anniversary of the Americans with Disabilities ActRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine is proud to commemorate the 30th anniversary of the signing of the Americans with Disabilities Act (ADA). This landmark legislation was signed into law on July 26, 1990, and is the nation’s preeminent civil rights law for providing access and equal opportunity for people with disabilities. The Department of Justice and the U.S. Attorney’s Office are committed to this work.
“Since its passage thirty years ago, the ADA has dramatically improved the lives of people with disabilities, ensuring them equal opportunity to fully participate in mainstream life without discriminatory barriers,” U.S. Attorney Frank said. “We are proud of our efforts in safeguarding the civil rights of persons with disabilities, but we recognize that our work is far from complete, and we still see unlawful barriers that prevent individuals with disabilities from fully participating in many aspects of society. As we mark the 30th anniversary of this historic civil rights law, the U.S. Attorney’s Office remains committed to enforcing the ADA.”
The promise of the ADA is its wide-ranging efforts to eliminate disability discrimination across the range of services, programs, and activities that most Americans take for granted, but for too long were largely inaccessible to individuals with disabilities. Whether in employment, areas of civic life, or in the day-to-day activities and access to goods and services that we all enjoy, the ADA requires that we take those steps necessary to ensure access for all.
Over the past 30 years, our country has undertaken the hard work of changing attitudes about disability, tearing down barriers to equality, and dismantling the systems that have historically excluded people with disabilities. Today, we commemorate the many ways that the ADA has transformed our society—by replacing exclusion with access, segregation with integration, and limitations with self-determination. The ADA has advanced the promise of the American dream, ensuring that people with disabilities can write their own stories. And as a society, we are better and stronger because of the contributions that people with disabilities make.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/. For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
U.S. Attorney’s Office Commemorates 30th Anniversary of Americans with Disabilities ActRead the Press Release
BIRMINGHAM, Ala. – The U.S. Attorney’s Office for the Northern District of Alabama is proud to play a critical role in the Department of Justice’s enforcement efforts under the Americans with Disabilities Act (ADA). The ADA was signed into law 30 years ago by President George H.W. Bush, and is the landmark law that prohibits discrimination on the basis of disabilities. The ADA empowers the Department of Justice to investigate, litigate, and resolve complaints of discrimination as well as authorizing the Government to conduct compliance reviews of covered entities.
“As the United States Attorney for the Northern District of Alabama, I am committed to continuing the important work of enforcing the ADA on behalf of our local citizens,” said Escalona. “I am proud of the work our office has done throughout our district to ensure that individuals with disabilities have equal access in our society.”
Since the passage of the ADA, the U.S. Attorney’s Office has brought numerous institutions into compliance with the ADA. The district has undertaken wide-ranging efforts to eliminate disability discrimination across a broad range of services, programs, and activities that most Americans take for granted, but for too long were largely inaccessible to individuals with disabilities. For instance, as part of the Justice Department’s ADA Voting Initiative, the U.S. Attorney’s Office has worked collaboratively with local governments to increase accessibility at polling places. Whether in employment, areas of civic life, or in the day-to-day activities and access to goods and services that we all enjoy, the ADA requires that we take those steps necessary to ensure access for all.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/. For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).