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10 September 2020
Department of Justice/Eastern District of Texas Criminally Charging Individuals with CARES Act PPP and Economic Impact Payment FraudRead the Press Release
BEAUMONT, Texas – The Department of Justice Criminal Division announced today that it has charged more than 50 people who allegedly committed fraud to obtain funds from the Paycheck Protection Plan (PPP).
The PPP program is authorized by the CARES Act, which is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act initially authorized up to $349 billion in forgivable PPP loans to small businesses for job retention and certain other expenses, and in April 2020, Congress authorized over $300 billion in additional PPP funding,
In partnership with the Criminal Division, the Eastern District of Texas has played a lead role in pursuing CARES Act fraud and has declared COVID-related fraud a top priority.
“When thieves and fraudsters steal CARES Act funding, they steal from all of us – the corner store, the dry cleaner, and the local grocer. These are not simple or easy cases to investigate and charge. They involve piecing together often-complex financial, payroll, and tax records for individuals and companies. This makes it all the more remarkable that the men and women of the Department of Justice have been able to bring so many cases so quickly — against over 50 defendants in a matter of months — and is a testament to the hard work and dedication of federal prosecutors and agents and our partners across the U.S. government.”
The Eastern District of Texas has charged three individuals with violations related to the improper use of PPP funds. In each case, the individuals fraudulently claimed their businesses had suffered catastrophic losses due to the COVID-19 pandemic and requested assistance in the form of forgivable small business loans through the PPP. In May, Shashank Rai and Samuel Yates were each charged in separate cases with violations of wire fraud, mail fraud, and making false statements to a bank and to the SBA in order to unlawfully obtain millions of dollars in PPP loans. In June, Fahad Shah was indicted and charged with three counts of wire fraud, one count of making a false statement to a bank, and four counts of money laundering. It is alleged that Shah illegally obtained millions of dollars, which he used to purchase multiple Tesla automobiles, to play the stock market, and for personal expenses. When conduct like the kind alleged in these cases occurs, it depletes the pool of available funds for businesses with legitimate needs, such as payroll for workers. According to some reports, as many as 80 percent of loan applicants were turned away due to funds not being available.
In addition to PPP cases, the Eastern District of Texas has also indicted James Mwanza, as well as Dalton Brewer and Emilee Fenton, for identity theft in connection with CARES Act Economic Impact Payments (EIPs). These defendants allegedly used the names, birth dates, and Social Security Numbers of unknowing persons in order to illegally obtain EIP funds. An estimated $300 billion of the CARES Act total was allocated for EIPs. Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
These cases are tremendously important for many reasons, and the speed with which these cases have been investigated and prosecuted is unparalleled. The Department’s efforts began early in the implementation of the CARES Act, as prosecutors and agencies moved quickly to establish law enforcement partnerships, obtain critical data and evidence, and take concrete and affirmative steps to identify CARES Act fraud. This cooperation, in turn, produced immediate results. The Eastern District of Texas partnered with the Criminal Division to bring the very first PPP-related fraud cases within two months of the loan program’s launch
Public awareness and cooperation amongst agencies is critical to fight against COVID-related fraud. In July, U.S. Attorney Stephen J. Cox wrote an opinion editorial, which was published in the Texas Lawyer, pledging to remain vigilant in pursuing those individuals seeking to steal CARES Act assistance from those who truly need it and who it is intended to benefit. As part of that pledge, in August, the Eastern District of Texas entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR) providing for the designation of Assistant U.S. Attorneys in the Eastern District of Texas to assist with SIGPR-related investigations and prosecutions. EDTX plans to work with SIGPR, as well as DOJ’s Criminal Division and our other law enforcement partners to focus on coordinated criminal rings that have engaged in the systematic, organized looting of PPP funds.
Another key component of the Department’s ability to bring these cases so quickly has been the use of public-private partnerships to maximize its awareness and visibility of suspicious conduct and the collection of critical evidence. Many financial institutions have been strong partners in assisting the Department in detecting and investigating potentially fraudulent activity and safeguarding taxpayer dollars by freezing funds and accounts. In the coming weeks, EDTX plans to build partnerships with Texas banks to further our ability to uncover and combat suspected fraud.
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.
Department of Justice Awards Nearly $50 Million in Grants to Improve School SafetyRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $50 million in school safety funding through its School Violence Prevention Program (SVPP). SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds.
“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The 160 awards announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.
In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For more information, please visit: https://cops.usdoj.gov/.
Department of Justice and U.S. Patent and Trademark Office to Host Public Workshop on Promoting Innovation in the Life Science SectorRead the Press Release
The Justice Department’s Antitrust Division (DOJ) and the U.S. Patent and Trademark Office (USPTO) will host a virtual public workshop on Sept. 23rd and 24th, 2020 to discuss the importance of intellectual property rights and pro-competitive collaborations for life sciences companies, research institutions, and American consumers.
“Now more than ever, it is essential that we consider the role of regulation and antitrust enforcement on incentives for innovation in key areas of discovery, such as biotechnology and the life sciences,” said Assistant Attorney General for the Antitrust Division Makan Delrahim. “We look forward to a robust discussion of the current legal climate and its impact on competitiveness, and are honored to collaborate with Director Iancu and his talented team at the PTO in hosting this event.”
The workshop will feature a fireside chat between Assistant Attorney General Delrahim and Under Secretary of Commerce for Intellectual Property and Director of the USPTO, Andrei Iancu. Former Director of the National Institutes of Health, Dr. Elias A. Zerhouni will deliver a keynote address. The workshop will include panel discussions of how patents and copyrights incentivize and reward innovation in the life science sector and the USPTO’s guidance on patentability for life sciences inventions. In addition, panels will discuss how partnerships and collaboration can facilitate the development of complex biologics, and the role of antitrust enforcement and regulation in preserving competition and incentives for innovation among drug developers and their partners. Panelists include leading figures from industry, government agencies, prominent research labs, the non-profit sector, academia, and the broader legal and economic community.
The workshop is free and open to the public, although registration is required, and will be webcast from approximately 1–5 PM Eastern Time each day. A recording of the workshop will be made available on DOJ and USPTO’s websites. Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the USPTO and DOJ event webpages. Members of the press should email Brianna Herlihy at [email protected] to register.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Lakeshia Harley at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Convicted Felon Sentenced to Prison for Possessing an Illegal FirearmRead the Press Release
MACON, Ga. – A convicted felon caught with an illegal firearm and ammunition during the execution of a state search warrant was sentenced to prison this week, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Jonathan Duneil Blash, 29, of Macon was sentenced by U.S. District Judge Tripp Self on Tuesday, September 8 to 27 months in prison followed by three years supervised release after pleading guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
Bibb County deputies executed a state search warrant for illegal drug activity at the defendant’s Macon apartment on February 10, 2019. Blash, who has multiple prior felony convictions, including theft by taking, was found in possession of a Smith & Wesson .38 special revolver and ammunition. Deputies also recovered drugs during the legal search. Blash admitted that he purchased the gun from someone off the street.
“Law enforcement is working hard in Middle Georgia to shut down the underground gun market which feeds criminal activity. Convicted felons caught in possession of illegal firearms will be held accountable at the federal level and will face prison without parole,” said U.S. Attorney Peeler. “I want to thank the Bibb County Sheriff’s Office and the ATF for their work in this case.”
This case was prosecuted 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 and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Macon. Assistant U.S. Attorney Paul McCommon 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.
Colorado Man Going to Prison for Threatening His Former ProfessorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Richter, 42, of Boulder, CO, who was convicted of interstate communication of threat to injure, was sentenced to serve 24 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that in 2002, the defendant was a student in a class that the Victim taught at the University of Buffalo. Around that time, Richter sent bizarre emails to the Victim and followed her to her car after class. When the course was finished, the Victim moved out of the Western District of New York.
In 2007, the defendant started sending post-cards with strange messages to the Victim and leaving harassing voice-mail messages on her work phone. On April 23, 2008, the Niagara County Sheriff’s Office arrested Richter, and the Niagara County District Attorney charged him with Stalking in the Fourth Degree. On June 17, 2009, the defendant pleaded guilty to the charged offense, and was given a fine and an Order of Protection was issued against Richter.
On October 18, 2018, the Victim reported to the Niagara County Sheriff’s Office that she received an envelope addressed to her at her place of employment in the Western District of New York. Around this time, the defendant was living in Colorado, and sent the envelope, which contained a handwritten letter, an article, and three movie DVDs. The Victim received a second package the same day from Richter, which contained a letter, a CD, and five movie DVDs. Between November 1 and November 7, 2018, the defendant repeatedly called the Victim and left harassing voicemail messages on her phone. Richter continued to call and leave similar harassing messages for the Victim in the following days, causing her considerable distress. In particular, she reported that the defendant left a message saying he had, “been arrested 10 years ago and he’s willing to risk it happening again.” As a result, a local court issued a warrant for Richter’s arrest for Stalking in the Third Degree.
On November 26, 2018, the Victim reported that she received an additional 156 voice mail messages and more than 150 e-mails from the defendant. Some of the voice mail messages were threatening and sexual in nature, as Richter specifically stated he was on his way to Western New York and would arrive around Christmas time. One of the defendant’s messages stated, “I can’t stress this enough, when I do show up around Christmas, if you want to live, never leave my (expletive) side.” Some of Richter’s emails indicated that he was traveling from Colorado to New York, including one message in which the defendant said, “I blame you of course, (expletive). I’m stuck in Iowa because of your damn (expletive)…”
On November 29, 2018, the Morris Police Department in Morris, Illinois, encountered the defendant in a vehicle in a Comfort Inn parking lot when responding to a report of a male who was reportedly acting strangely. The responding officer identified the man as Richter, and placed him under arrest due to the active warrant.
The sentencing is the result of an investigation by the Niagara County Sheriff’s Office, under the direction of Acting Sheriff Michael Filicetti, and Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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City of Lynchburg Awarded $632,496 from Department of Justice’s Office of Violence Against WomenRead the Press Release
LYNCHBURG, Va. – The Department of Justice’s Office of Violence Against Women (OVW) announced the awarding of a $632,496 continuation grant to the City of Lynchburg to fund a program aimed at improving criminal justice responses to domestic violence, dating violence, sexual assault, and stalking.
The program aims to enhance victim safety and offender accountability in cases of domestic violence, dating violence, sexual assault, and stalking by encouraging jurisdictions to work collaboratively with community partners to identify problems and share ideas that will result in effective responses to these crimes. An integral component of this program is the creation and enhancement of a coordinated community response that brings together criminal justice agencies, victim service providers, and community organizations that respond to domestic violence, dating violence, sexual assault, and stalking.
“Ending domestic violence requires a multi-faceted approach. Federal prosecution is often not available in these horrific cases, but this grant will go a long way in Central Virginia to aid those on the front lines who are fighting against the scourge of domestic violence,” First Assistant United States Attorney Daniel P. Bubar said today.
The City of Lynchburg, in collaboration with its non-profit, non-governmental victim service provider partner the YWCA of Central Virginia, will use this continuation award to educate stakeholders concerning the challenges and unique dynamics of intimate partner violence, evaluate the overall coordinated response from the standpoint of victim safety, and implement early intervention strategies to address intimate partner violence.
For more information about this grant, contact the Office on Violence Against Women at 202/307-6026 and ask for the Outreach and Communications Division.
Carbondale Post Office Emplyee Indicted for Embezzling MailRead the Press Release
On Tuesday of this week, a federal grand jury for the Southern District of Illinois returned an indictment charging Athens A. Shorey (also known as “Athens A. DeMartini”), 33, of Cobden, Illinois, with embezzling mail.
Shorey worked as a letter carrier for the Carbondale Post Office. The indictment charges that on
May 23, 2020, and again on May 27, 2020, Shorey embezzled mail that had been entrusted to her for delivery. According to the indictment, Shorey embezzled ten pieces of mail on May 23, 2020, and three additional pieces of mail on May 27. The indictment charges that two of the three pieces of mail embezzled on May 27 were sent by banks.After the alleged embezzlements were discovered, Shorey voluntarily resigned from her position with the Postal Service.
The indictment contains two counts of embezzlement of mail by a Postal Service employee.
Each charge carries a maximum sentence of five years in prison and a fine of up to $250,000.The arraignment for Shorey will be conducted on Sept. 28, 2020, at 10:45 a.m. at the federal courthouse in Benton, Illinois.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charges until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by agents from the United States Postal Service – Office of the
Inspector General, and officers of the Carbondale, Illinois, Police Department. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.Canada resident sentenced for attempting to smuggle firearms from United States into CanadaRead the Press Release
GREAT FALLS — A Canada resident today was sentenced to one year and one day in prison and one year of supervised release after he admitted trying to smuggle firearms into Canada from the United States, U.S. Attorney Kurt Alme said.
Colby Stephan Skolseg, 44, of Alberta, was arraigned, pleaded guilty to attempted illegal export as charged in a superseding indictment and was sentenced during the hearing.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents filed in the case that in September 2010, Skolseg and an accomplice attempted to illegally export eight handguns from Montana into Canada. The firearms had obliterated serial numbers and were hidden in an aquarium cooler. The plan was to resell the handguns in Canada. Canadian law enforcement was able to restore the serial numbers.
Two years later, Skolseg and his accomplice resumed their handgun smuggling and used websites instead of making personal trips to the United States. The pair illegally exported 25 additional handguns from West Virginia into Calgary through varying shipments.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Department of Homeland Security, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the Montana Department of Justice, Department of Motor Vehicle Licensing Services; the Canada Border Service and the Royal Canadian Mounted Police forensic lab and investigations divisions.
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Buffalo Man Sentenced for Cocaine ConspiracyRead 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 Wa1demar Martinez, a/k/a Crazy, 44, of Buffalo, NY, who was convicted of conspiracy to distribute 500 grams or more of cocaine, was sentenced to serve five years in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Meghan Leydecker and Charles J. Volkert, Jr., who handled the case, stated that between December 2015 and June 7, 2016, the defendant conspired with others to distribute over 500 grams of cocaine in the Buffalo area. Martinez used a residence at 275 Tonawanda Street in furtherance of his drug trafficking activities. On June 7, 2016, the defendant sold cocaine to an individual working with the Drug Enforcement Administration.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bridgeport Police Chief and Personnel Director Charged with Fraud, False Statements in Connection with City’s Hiring of the Police ChiefRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, and David Sundberg, Special Agent-in-Charge, New Haven Division, Federal Bureau of Investigation (“FBI”), announced the arrest of ARMANDO J. PEREZ, the Chief of Police of the City of Bridgeport, Connecticut (the “City”), and DAVID DUNN, the City’s acting personnel director, for defrauding the City by rigging the 2018 police chief examination, mandated by the City’s Charter, to ensure PEREZ would be selected for the position. PEREZ and DUNN were also charged with making false statements to federal agents in the course of the investigation. Both defendants are expected to appear before U.S. Magistrate Judge William I. Garfinkel in Bridgeport federal court this afternoon.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Chief Perez and Personnel Director Dunn schemed to rig the purportedly impartial and objective search for a permanent police chief to ensure the position was awarded to Perez, and then repeatedly lied to federal agents in order to conceal their conduct. Bridgeport’s citizens and police officers deserve leaders with integrity who are committed to enforcing, not breaking, the law, and we thank the FBI for their partnership in investigating and uncovering the scheme alleged.”
FBI Special Agent-in-Charge David Sundberg said: “I would like to express my deepest gratitude to the members of the United States Attorney’s Offices in both the Southern District of New York as well as Connecticut for their professionalism and invaluable assistance in this case. Today’s arrest of city officials including a high ranking, long-time law enforcement officer is a stark reminder that the betrayal of public trust and community members by a public servant is not only unethical but often illegal. We recognize these arrests are not a reflection on the Bridgeport Police Department as a whole, but it is our responsibility to root out injustice and corruption by any and all elected and appointed officials entrusted to protect and serve with honor. We at the FBI will continue to aggressively pursue all those engaged in matters of public corruption throughout Connecticut.”
According to the allegations contained in the Complaint unsealed upon the defendants’ arrest, and publicly available information:[1]
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
The charges alleged in the Complaint arise from a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with DUNN, who is and was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent Chief of Police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. DUNN, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. DUNN and PEREZ then manipulated that examination process in multiple ways: DUNN stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; DUNN had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and DUNN attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout of more than $300,000 to PEREZ for accrued leave.
False Statements by PEREZ and DUNN
PEREZ and DUNN were each voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal their conduct, during those interviews they both lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance DUNN and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by DUNN. DUNN falsely denied requesting an exam panelist ensure that PEREZ was scored as one of the top three candidates.
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PEREZ, 64, of Trumbull, Connecticut, and DUNN, 72, of Stratford, Connecticut, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum penalty of 20 years in prison. PEREZ is also charged with two counts of false statements to federal investigators, and DUNN is charged with one count of false statements to federal investigators, each of which carries a maximum penalty of five years in prison.
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 a judge.
Ms. Strauss praised the outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Billings man admits strangulation of woman on Crow Indian ReservationRead the Press Release
BILLINGS – A Billings man accused of strangling a woman at a Crow Agency residence admitted assault charges today, U.S. Attorney Kurt Alme said.
Sean Evan Thomas Bad Bear, 29, pleaded guilty to assault by strangulation of an intimate partner and dating partner. Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Bad Bear was released pending further proceedings.
The prosecution said in court documents that the assault occurred on Feb. 19, 2019 at a Crow Agency residence on the Crow Indian Reservation. Bad Bear assaulted the victim and placed her in a choke hold. The victim lost consciousness because she could not breathe.
Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI.
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Bend Man Sentenced to Federal Prison for Placing Hoax Bomb at Deschutes County CourthouseRead the Press Release
EUGENE, Ore.—A Bend, Oregon man was sentenced to federal prison today for placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019, announced U.S. Attorney Billy J. Williams.
Jonathan Tyler Allen, 24, was sentenced to 18 months in federal prison and three years’ supervised release. As part of his sentence, Allen was also ordered to pay $43,620 in restitution to the Deschutes County Circuit Court, Deschutes County District Attorney’s Office, First Interstate Bank in Bend, and Bend Fire & Rescue.
According to court documents, on or about July 28 to July 29, 2019, Allen and co-conspirator Kellie Cameron, 31, also of Bend, conspired with one another to shut down the Deschutes County Courthouse in Bend by planting a fake bomb and calling in a bomb threat. Around the same time, Cameron constructed a fake bomb using batteries, wiring, a circuit board, and a fuel filter, among other materials.
On July 29, 2019, Allen and Cameron drove to the courthouse and placed the hoax device on a ramp near the building. At approximately 7:18am the same day, Cameron, who was with Allen, used a cell phone to call 911. He told the operator, “I just want to let you know that there are two bombs, one’s in the courthouse and good luck finding the other one.” Less than an hour later, with Allen again present, Cameron called 911 a second time to repeat his threat. Allen later threw one of the phones used into a canal to avoid being caught.
On August 7, 2019, Allen and Cameron were charged by criminal complaint with conspiring to make a threat regarding explosive materials and conveying false information and hoaxes. On June 5, 2020, Allen pleaded guilty to the same charge.
Cameron made his first appearance in federal court on August 21, 2019. He entered a not guilty plea and was ordered detained. Cameron remains in federal custody awaiting trial.
This case was investigated by the FBI, the Deschutes County Sheriff’s Office, and the Bend Police Department, and is being prosecuted by Nathan J. Lichvarcik and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.
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.
Belle Plaine Man Charged with Distributing, Receiving, and Accessing Child PornographyRead the Press Release
Jared Daily, age 34, of Belle Plaine, Iowa, has been charged with distribution, receipt, and accessing of child pornography. The charges are contained in an Indictment unsealed on September 3, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, between January and June 2020, Daily knowingly distributed child pornography, received child pornography, and accessed child pornography on a cell phone.
If convicted, Daily faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine, $102,300 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Daily appeared on September 9, 2020, in federal court in Cedar Rapids for a detention hearing and was released on bond. Daily’s next appearance for trial is set for November 2, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-73.
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Beaumont Couple Sentenced for Falsifying Tax ReturnsRead the Press Release
BEAUMONT, Texas –A Beaumont, Texas business owner and his wife have been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
In February 2020, Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted by a jury of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014. Today, the Brocatos were each sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone. They were also ordered to pay restitution in the amount of $617,762 to the IRS and fines of $15,000 each.
According to information presented in court, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated as an S Corporation for tax purposes. The Brocatos were the sole shareholders of the company, and Judith Brocato served as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity. The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocatos cashed numerous checks from customers instead of depositing them into the company accounts. They then underreported the income by failing to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls and John B. Ross.
Baton Rouge Man Indicted for Fraud Scheme and Money Laundering Related to Financial Aid FraudRead the Press Release
A federal grand jury recently returned a fourteen-count indictment charging Elliott Sterling, age 32, of Baton Rouge, Louisiana, with wire fraud, financial aid fraud, and engaging in monetary transactions involving property derived from specified unlawful activity. Sterling appeared for his arraignment yesterday and pled not guilty to the pending charges.
According to the indictment, between September 2017 and November 2019, Sterling engaged in a scheme to defraud the United States, wherein he enrolled individuals into classes at Baton Rouge Community College (“BRCC”) and illegally obtained federal financial aid funds on their behalf. In order to accomplish this, Sterling filed Free Applications for Federal Student Aid (“FAFSAs”) on behalf of each individual and misrepresented their prior education history, income, and dependents. Sterling also withheld his identity as the preparer of the FAFSAs. The indictment alleges that out of the over 250 individuals that Sterling secured funds on behalf of, only 32 had earned the requisite high school diploma or GED to qualify for those funds. In addition, Sterling obtained financial aid funds on behalf of individuals he knew were incarcerated.
Sterling used false information to execute Master Promissory Notes on behalf of the individuals and withheld the fact that the source of funds were loans that would need to be repaid by the individuals. When asked for documentation by BRCC, Sterling assisted the students with providing false information, including fake diplomas and/or transcripts. On occasion, Sterling would present himself as a student and paid others to impersonate students at BRCC.
After securing the financial aid funds, usually into his personal account or the account of his entity, Sterling Educational Consulting, LLC, Sterling issued a portion of the funds to the individuals and, without their knowledge, retained at large portion of the total refund for his own personal enrichment.
Sterling is also charged with one count of money laundering relating to a $256,000 withdrawal of fraud proceeds from his personal bank account for conversion into a bank check.
This matter is being investigated by the Federal Bureau of Investigation, the Louisiana Office of Inspector General, and the United States Department of Education – Office of the Inspector General and is being prosecuted by Assistant United States Attorney Jessica Jarreau.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore Career Offender Sentenced to 11 Years in Federal Prison for Distributing FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Davon Nelson, age 35, of Baltimore, today to 11 years in federal prison, followed by three years of supervised release, for distribution of fentanyl and conspiracy to distribute fentanyl. Nelson, a career offender, had numerous prior state conviction for drug related offenses.
This case is part of a federal-state initiative to combat the fentanyl crisis in Maryland. Under this initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office is prosecuting more cases involving fentanyl as a result of this program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; State’s Attorney for Baltimore City Marilyn Mosby; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution under the fentanyl SOS program,” said United States Attorney Robert K. Hur. “The cooperation of the U.S. Attorney’s Office, the Office of the State’s Attorney for Baltimore City, the DEA, and the Baltimore Police Department in reviewing every fentanyl case to determine those cases appropriate for federal prosecution is just one example of the efforts we are making to reduce the number of opioid overdose deaths in Maryland. As a result of this collaboration, Davon Nelson will now spend 11 years in federal prison, where there is no parole—ever.”
According to Nelson’s plea agreement, on September 5, 2018, a Baltimore Police Department officer observed Nelson distribute a baggie containing 200 fentanyl gel capsules to co-defendant Terrell Perry. The BPD officer called in an arrest team and Perry was arrested. A search of Perry recovered the baggie of 200 fentanyl gel caps. At the time Perry was arrested, Nelson had left the block on foot. Law enforcement obtained a search warrant for Nelson’s van and recovered an additional 200 gel caps of fentanyl powder. The total amount of fentanyl recovered was at least 32 grams, but no more than 40 grams, which is enough fentanyl to kill at least 16,000 people.
Following his arrest, Nelson called his girlfriend from pre-trial detention facilities and directed her to move “the white stuff” from underneath his tub and to give it to an associate so that person could sell it. Further, Nelson directed his girlfriend to lie to the police if they came to interview her about Nelson and directed his girlfriend to also have her mother lie to police, if she were interviewed. Under the terms of his plea agreement, Nelson admitted that his calls to his girlfriend were an attempt to obstruct justice.
Terrell Perry, age 36, of Baltimore, previously pleaded guilty and was sentenced to 30 months in prison.
United States Attorney Robert K. Hur commended the Office of the State’s Attorney for Baltimore City, the DEA, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christopher M. Rigali, who prosecuted the case.
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Attorney General William P. Barr and DEA Acting Administrator Timothy J. Shea Announce Results of Operation Crystal ShieldRead the Press Release
Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.
At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.
“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr. “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities. Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”
“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea. “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued. Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States. The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”
DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis. Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019. Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.
Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent.
Associate of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Nine Years in Federal Prison and Two Others Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Egan Davis, age 40, of Nottingham, Maryland, pleaded guilty today and co-defendant Amin Boyd, age 42, of Baltimore, Maryland, pleaded guilty on September 8, 2020, to federal drug distribution charges related to their participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander sentenced co-defendant, Andre Lemon, age 40, of Baltimore, yesterday to nine years in federal prison, followed by three years of supervised release, for his role in the conspiracy.
The guilty pleas and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, Davis supplied drugs to the Montford and OTM drug trafficking organizations, among others and Boyd was a wholesale drug customer of members of the conspiracy. Investigators identified Lemon as an associate of a source of supply also charged in the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including powder and crack cocaine, heroin, and fentanyl, among others.
Law enforcement executed search warrants at residences associated with Davis and Lemon in January and May 2019, respectively, recovering over two kilograms of cocaine; drug paraphernalia, including digital scales, and packaging materials; more than $51,300 in cash, believed to be drug proceeds; and a fully loaded .410 caliber “the Judge” handgun, along with additional .410 caliber ammunition, which Lemon admitted he possessed in connection to his drug trafficking activities. Lemon is prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Throughout the course of their involvement, it was reasonably foreseeable to Davis and Lemon, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Boyd, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 500 grams but less than two kilograms of cocaine, as well as quantities of cocaine base, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Davis, Boyd and the government have agreed that, if the Court accepts their plea agreements, Davis and Boyd will be sentenced to 10 years and seven years in federal prison, respectively. Judge Hollander has scheduled sentencing for Davis and Boyd on December 8, 2020.
Of the 25 defendants indicted in this case, eleven—including Lemon, Davis, and Boyd—have pleaded guilty. The remaining defendants have trial dates in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Asphalt Contractor to Pay $4.25 Million to Settle Claims That It Misled the Government as to the Materials Used to Pave RoadRead the Press Release
Dave O’Mara Contractor Inc. (DOCI), an Indiana-based asphalt contractor, has agreed to resolve allegations that it violated the False Claims Act by misrepresenting to the government the materials that it was using to pave federally-funded roads in the state of Indiana, the Department of Justice announced today. Under the settlement agreement, DOCI has agreed to pay over $4.25 million over a period of four years.
“Today’s settlement demonstrates our commitment to hold accountable companies that provide false information to obtain government contracts,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division. “Misrepresenting the materials that will be used to pave federally-funded roads not only defrauds the government but potentially endangers the lives of motorists.”
“The safety and security of the citizens of Indiana are paramount to this office,” stated Josh Minkler, U.S. Attorney for the Southern District of Indiana. “To risk the safety of the motoring public for the sake of saving money cannot be tolerated. This recovery sends the message that contractors must comply with various applicable state and federal regulations when billing the U.S. Government, or they will face the consequences of their choices.”
“It is important to ensure that taxpayers get what they pay for so that the quality of products used in highway transportation projects is not compromised,” stated Andrea M. Kropf, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General. “Today’s settlement sends a message that putting the safety of the travelling public at risk for personal gain is an unacceptable way of conducting business.”
The settlement resolved allegations that in applying for government contracts, DOCI falsely represented the materials it would use to pave roads that are funded in part by the Federal Highway Administration. Specifically, the government alleged that DOCI claimed that its hot mix asphalt mixture contained a sufficient amount of binder or glue to hold the mix together when, in fact, DOCI frequently failed to meet the minimal levels of binder required to pave the roads. DOCI thereby allegedly created the false impression that its mixture met the contract requirements and that the roads would last a reasonable period of time before they would develop cracks and become unsafe for driving.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Indiana, and the Chicago Office of the Office of Inspector General for the U.S. Department of Transportation. The U.S. Government also received significant assistance in this matter from Indiana’s Department of Transportation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Antitrust Division Announces Updates to Civil Investigative Demand Forms and Deposition ProcessRead the Press Release
Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division announced today that the Antitrust Division has implemented two uniform updates to its Civil Investigative Demand (CID) forms and deposition process:
First, all CIDs issued by the Antitrust Division — including CIDs for documentary material, written interrogatories, oral testimony, or any combination thereof — will now provide notice to all recipients that their documents, answers to interrogatories, and/or testimony may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings. Specifically, CIDs issued by the division will now include the following notice:
The information you provide may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings. Individuals may refuse, in accordance with the rights guaranteed to them by the Fifth Amendment to the Constitution of the United States, to produce documents and/or answer any question that may tend to incriminate them.
Second, division attorneys taking oral testimony pursuant to a CID will ask the deponent questions on the record at the outset of every deposition to confirm that the deponent understands the ways in which the information they provide can be used by the Department of Justice.
These updates are consistent with long-standing division policies and aim to further promote transparency in antitrust investigations.
Another Crew Member Pleads Guilty in Historic, 20-Ton Cocaine BustRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Aleksandar Kavaja, 27, of the Balkan country Montenegro, pleaded guilty before United States District Court Judge Harvey Bartle III to charges of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
In 2019, Kavaja, a crew member who worked on board the shipping vessel MSC Gayane as the ship’s electrician, conspired with others to engage in bulk cocaine smuggling. On multiple occasions during the MSC Gayane’s voyage at sea, crew members, including Kavaja, helped load huge quantities of cocaine onto the ship from speedboats that approached under cover of darkness, traveling at high speeds. Crew members used the Gayane’s crane to hoist cargo nets full of packaged cocaine onto the vessel and then stashed the drugs in various shipping containers.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in the Port of Philadelphia and seized approximately 20 tons of cocaine on the ship -- with a street value of over $1 billion. This was one of the largest drug seizures in U.S. history.
“This momentous drug bust sent a clear message to criminals around the world that our city is not a safe harbor for their deadly drug trafficking,” said U.S. Attorney McSwain. “Prosecutors in my Office, in conjunction with our partner agencies, have been working non-stop for over a year to pursue justice in this case. And now another member of the conspiracy has been convicted and held accountable.”
“Protecting the Homeland against transnational crime is a top priority of Homeland Security Investigations,” said Brian A. Michael, Special Agent in Charge of Homeland Security Investigations Philadelphia. “Mr. Kavaja’s guilty plea is yet another example of HSI, our law enforcement partners, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania working hand in hand to safeguard our community against transnational drug smuggling.”
“Mr. Kavaja’s guilty plea is the logical result from his participation in what remains a record cocaine seizure for CBP,” said Casey Durst, CBP’s Director of Field Operations in Baltimore. “Successful prosecutions reinforce the notion that suspects caught smuggling illegal drugs through our communities face severe, life-changing consequences.”
The defendant faces a maximum possible sentence of lifetime imprisonment.
The case is being investigated by United States Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Albuquerque man facing charges under Operation Legend for firearms possession and assaulting a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Guillermo Medel, 38, of Albuquerque made an appearance in federal court today on charges of being a felon in possession of a firearm and ammunition and assaulting and resisting a federal officer. Medel will remain in custody pending trial.
According to a federal criminal complaint, on Aug. 25, Medel allegedly assaulted a federal agent while attempting to avoid arrest. At the time of the arrest, Medel allegedly possessed a firearm. Medel previously was convicted of possession of a machine gun and being a felon in possession of a firearm and ammunition. As a previously convicted felon, Medel cannot legally possess a firearm or ammunition.
If convicted, Medel faces up to eight years in prison for assaulting and resisting a federal officer and up to 10 years for being a felon in possession of a firearm.
A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case in conjunction with the U.S. Marshals Service and the Albuquerque Police Department. Assistant U.S. Attorney Sarah J. Mease is prosecuting the case as part of Operation Legend, a Department of Justice initiative to assist cities with persistently high crime rates. Operation Legend is a sustained and coordinated law enforcement initiative in which the U.S. Attorney’s Office and federal law enforcement agencies work with state and local law enforcement to prosecute gun and dangerous crimes arising in the City of Albuquerque.
Aggravated Felon Arrested for Illegal Reentry After Previous DeportationRead the Press Release
Ocala, FL – U.S. Attorney Maria Chapa Lopez announces the arrest of Jose Merced Sanchez De La Torre (age 43) on a federal criminal complaint alleging illegal re-entry into the United States by an alien with a prior aggravated felony conviction. If convicted of the offense, Sanchez De La Torre faces up to 20 years in federal prison.
According to court documents, on August 31, 2020, the Federal Bureau of Investigation received a tip that a residence in Ocala contained illegal aliens and firearms. The FBI requested the assistance of U.S. Customs and Border Protection (CBP). CBP researched the address and determined that one of the residents, Sanchez De La Torre, was an illegal alien from Mexico who had previously been deported from the United States in 2015, following federal convictions for an aggravated felony—unlawful possession of a firearm—and seven counts of structuring financial transactions. On September 8, 2020, Border Patrol agents executed an arrest warrant at Sanchez De La Torre’s Ocala residence and took him into custody.
This case was investigated by the FBI, CBP, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Tyrie Boyer.
Attorney General William P. Barr and Acting Administrator Timothy J. Shea Announce Results of Operation Crystal ShieldRead the Press Release
WASHINGTON – Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.
At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.
“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr. “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities. Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”
“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea. “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued. Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States. The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”
U.S. Attorney Kurt Alme, for the District of Montana, expressed support for Operation Crystal Shield. "Much of Montana's meth comes through these hubs cities and is driving our violent crime. Stopping these large quantities in California and Arizona will make meth harder to get and more expensive in Montana. When meth traffickers do get through, law enforcement officers across our state are committed to arresting and prosecuting them to the full extent of the law," U.S. Attorney Alme said.
Recent Montana cases include:
- A Mesa, Arizona man was sentenced in July 2019 to 10 years in prison on meth trafficking charges after law enforcement seized 34 pounds of meth in a suitcase he brought to Billings.
- A Billings resident was sentenced in August to eight years in prison on trafficking charges afer law enforcement found six pounds of meth in her home and another residence. The defendant admitted that she and another person had just returned from Phoenix and Las Vegas where they had picked up the meth.
- A Florida man pleaded guilty on Sept. 9 to trafficking charges after a traffic stop west of Billings led to 78 pounds of meth being seized from his vehicle, which had been rented in Las Vegas, NV.
DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis. Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019. Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.
Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent.
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18 charged in Youngstown-Warren area for distribution of narcotics, including fatal fentanyl overdoseRead the Press Release
U.S. Attorney Justin Herdman announced today that 18 individuals were charged for their roles in a drug trafficking conspiracy which involved the illegal distribution of cocaine, crack, heroin, fentanyl, fentanyl analogues and other drugs in the Youngstown-Warren area, including providing a substance that led to the fatal overdose of one person. Law enforcement operations arrested 14 individuals today, while four remain at large. The charges were made public in four indictments unsealed today in federal court.
“Because of today‘s operation, 14 drug traffickers in the Youngstown and Warren areas accused of dealing deadly narcotics and opioids are now off the streets,” said U.S. Attorney Justin Herdman. “These drug traffickers charged and arrested today are accused of brazenly selling all types of lethal drugs, including one instance that led to a fatal overdose, according to the indictment. I want to thank all of our dedicated law enforcement partners involved in this successful operation who work tirelessly to keep harmful narcotics and opioids out of our comminutes.”
“This group of individuals brought danger, illegal drugs, and violence to our communities,” said FBI Special Agent in Charge Eric B. Smith. “Law enforcement will continue to identify, disrupt and hold accountable drug trafficking organizations conducting their unlawful activities on our neighborhood streets.”
“Through this collaborative effort with our law enforcement partners, these drug traffickers have been taken off the streets,” said DEA Special Agent in Charge Keith Martin. “We remain committed to pursuing anyone pushing illegal narcotics and spreading violence in our communities.”
The following is a breakdown of the charges:
Charged in a 92-count indictment detailing a broad range of criminal activity including use of a communications facility in furtherance of a drug trafficking crime, felon in possession of firearm and ammunition, possession of a firearm in furtherance of a drug trafficking crime and various charges of trafficking heroin, fentanyl carfentanil, crack cocaine and more are:
- Vincent Richardson, 28, of Warren, Ohio.
- Del’reno Armstrong, 22, of Warren, Ohio.
- Marcus Williams, 27, of Warren, Ohio. Williams remains at large.
- Randall Morgan, 34, of Warren, Ohio.
- Sean King, 33, of Warren, Ohio.
- William Crenshaw, 35, of Warren, Ohio. Crenshaw remains at large.
- Kvonn Watson, 26, of Warren, Ohio. Watson remains at large.
- Matthew Cavin, 30, of Warren, Ohio.
- Stashon Williams, 35, of Niles, Ohio. Williams remains at large.
- Jalissa Morgan, age 38, of Warren, Ohio.
- Aubrey Adams, 38, of Warren, Ohio.
Charged in a 14-count indictment for conspiracy to distribute cocaine, use of a communications facility in furtherance of a drug trafficking crime and possession with intent to distribute cocaine are:
- Vincente R. Turner, age 43, of Youngstown, Ohio.
- Christopher J. Anderson, age 36, of Mineral Ridge, Ohio.
- Nicholas A. Anderson, age 33, of Mineral Ridge, Ohio,
- Kenneth P. Mazurkiewicz, age 53, of Youngstown, Ohio.
Charged in a nine-count indictment for conspiracy to distribute cocaine, possession with intent to distribute cocaine, distribution of cocaine, possession with intent to distribute crack cocaine, possession with intent to distribute Oxycodone and possession of a firearm in furtherance of a drug trafficking crime are:
- Williams L. Stubbs, age 41, of Youngstown, Ohio.
- EC Robinson, age 35, of Sharon, Pennsylvania.
Charged in a five-count indictment for distribution of fentanyl resulting in a death and distribution of heroin, fentanyl, and carfentanil are:
- Tyron T. Scott, age 23, of Youngstown
- Kenneth P. Mazurkiewicz, age 53, of Youngstown, Ohio.
According to court documents, from March 2019 to February 2020, defendant Vincent Richardson operated a drug trafficking organization in the Youngstown-Warren areas with other members listed in the indictment. The indictment states that Richardson supplied the narcotics and other members of the drug trafficking organization conspired together to facilitate their drug distribution in the areas. The drug trafficking organization allegedly distributed detectable amounts of fentanyl, fentanyl analogues, crack cocaine, heroin and other drugs in the area during this time. On one occasion, the indictment alleges that defendant Vincent Richardson possessed a firearm during a drug trafficking crime.
In addition, court documents state that on October 15, 2019, defendants Tyron T. Scott and Kenneth P. Mazurkiewicz, members of the drug trafficking organization, allegedly distributed a substance containing a detectable amount of fentanyl that led to a fatal overdose.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictments was conducted by the DEA, FBI, Mahoning Valley Law Enforcement Task Force, Mahoning Valley Violent Crimes Task Force, Trumbull Action Group, Trumbull County Sheriff’s Office, Warren Police Department and Youngstown Police Department. This case is being prosecuted by Assistant U.S. Attorney David Toepfer. The U.S. Attorney’s Office for the Northern District would like to acknowledge and thank the Pennsylvania Office of the Attorney General for their assistance with this matter.
14 Defendants Arrested Following Drug Trafficking Investigation and RoundupRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration and Diane L. Upchurch, Special Agent in Charge of the FBI, announced that 14 individuals were arrested today by federal, state, and local law enforcement as part of a roundup following an over year-long investigation into methamphetamine trafficking in Sebastian, Crawford, and Logan Counties in Arkansas.
“This investigation has dealt a serious setback to drug trafficking organizations that endanger not only our communities in the Western District of Arkansas but also other communities throughout the nation,” stated First Assistant U.S. Attorney David Clay Fowlkes, “The indictments and arrests in this case were only made possible due to the unprecedented cooperation between Federal, State and Local Agencies.
“Today, DEA, in collaboration with our Federal, State and Local law enforcement partners, took down a violent methamphetamine trafficking organization, with direct ties to Mexico and the Jalisco New Generation Cartel, and whose tentacles extended beyond Arkansas to many other states,” stated DEA Special Agent in Charge Brad L. Byerley. “These violent offenders not only sold large quantities of methamphetamine, but also used firearms and committed acts of violence in furtherance of their crimes. Because of persistent and collaborative efforts of multiple law enforcement agencies in the area, a major supplier of methamphetamine to this region of Arkansas is out of business.”
“The individuals arrested today enriched themselves off the misery and sufferings of others,” stated Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office. “Working alongside the DEA and our tremendous Arkansas law enforcement partners, we are committed to dismantling criminal organizations who flood our communities with dangerous narcotics and create violence in our neighborhoods. We urge anyone with information about Arkansas criminal organizations to contact our FBI office.”
In August 2020, a federal grand jury returned an Indictment charging several individuals in the Fort Smith, Arkansas area with a large-scale, multi-state drug trafficking and money laundering conspiracy. The indictment included fifteen counts, all of which involved the distribution of methamphetamine or laundering of money earned from the distribution of methamphetamine.
This Indictment is directly related to a previous Indictment issued in July 2020, in which four (4) additional defendants were charged in a similar methamphetamine distribution scheme. The four individuals were arrested on August 5, 2020, and are identified as Emmanuel Miranda, Israel Miranda-Zapata, Brenda Golden Day, and Alexis Tirado.
The defendants who were arrested today will be scheduled to appear in the United States District in Fort Smith before United States Magistrate Judge Mark Ford in the coming days.
This prosecution is part of the Western District of Arkansas’ Operation Bear Mountain Bingo, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF operation is a joint investigation between the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Fort Smith Police Department, the Crawford County Sheriff’s Office, the Logan County Sheriff’s Office, the Sebastian County Sheriff’s Office, the Greenwood Police Department, the Paris Police Department and the Arkansas State Police. Assistant United States Attorney Brandon Carter is prosecuting the case for the Western District of Arkansas.
An indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
The individuals arrested today are: Manuel “Chuy” De Jesus Perez-Echeverria, Humberto “Beto” Acosta-Martinez, Julio Ivan Enriquez-Munoz, Alberto Ledesma, Efrain Maciel-Martinez, Traye Everett Martin, Julie Ann Pyles, Ezequiel Rodriguez, Paula Lynne Rider, Ronal Salinas, Benjamin “Ben” Valdez, Amber Renee Vance, Emily Elizabeth Williams, and Michael Dean Wilson.
9 September 2020
York County Receives Federal Grant to Promote Law Enforcement Mental Health and WellnessRead the Press Release
PORTLAND, Maine: United States Attorney Halsey B. Frank today announced that the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) has awarded the York County Sheriff’s Office with a grant of $111,603 for the office’s Peer Support Project.
The funding is part of $4.5 million in grants for the Law Enforcement Mental Health and Wellness Act Program across the nation. These program funds are used to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, implementation of promising practices related to peer mentoring mental health and wellness, and suicide prevention programs.
“I am very pleased to announce the federal funding for this very important initiative,” Frank said. “Every day, our law enforcement officers are under an enormous amount of stress on the job in their heroic efforts to keep our communities safe. We simply cannot ignore the fact that these officers are human, too, and we must ensure that their mental health needs are being met.”
Good mental and psychological health is just as essential as good physical health for law enforcement officers to be effective in keeping our communities safe from crime and violence. As part of the Law Enforcement Mental Health and Wellness Act of 2017, Congress authorized the COPS Office to establish peer mentoring mental health and wellness pilot programs within state, tribal, and local law enforcement agencies. The 41 awards announced today meet the goals of the 2017 Act and support the Department of Justice and the Administration’s commitment to law enforcement. The full list of awards is available here:
https://cops.usdoj.gov/pdf/2020AwardDocs/lemhwa/Award_List.pdf.
In addition to the grants announced today, the COPS Office recently published two reports regarding officer mental health and wellness. Those reports are available here:
Law Enforcement Mental Health and Wellness Act Report to Congress
Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.
William M. Kelly, M.D., Inc. and Omega Imaging, Inc. Agree to Pay $5 Million to Resolve Alleged False Claims for Unsupervised and Unaccredited Radiology ServicesRead the Press Release
RIVERSIDE, California - William M. Kelly Inc. and Omega Imaging Inc., together, operate 11 radiology facilities in Southern California, have agreed to pay the United States $5 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly submitting claims to Medicare and the military healthcare program, TRICARE, for unsupervised radiology services and services provided at unaccredited facilities, the Department of Justice announced today.
“Today’s settlement demonstrates the department’s unrelenting commitment to protect the public fisc and patient safety,” said Acting Assistant Attorney General Jeffrey Clark of the Department of Justice’s Civil Division. “The department will aggressively pursue unscrupulous healthcare providers who cut corners that could jeopardize the health and safety of Medicare and TRICARE beneficiaries.”
“Patients rightly expect that medical providers follow the proper procedures and protocol when administering complex treatments to ensure patient safety,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners we remain steadfast in our commitment to uphold the integrity of government health programs.”
The settlement resolves allegations that the defendants submitted claims for CT scans and MRIs involving contrast injections that were not properly supervised by a physician. Applicable program rules require a physician to be present in the office suite when a patient undergoes an examination that involves the administration of intravenous contrast material. The defendants allegedly performed and billed for these procedures when no supervising physician was present in the office suite. The settlement also resolves allegations that a certain number of the defendants’ facilities lacked accreditation.
Contemporaneous with the settlement, William M. Kelly, Inc. and Omega Imaging Inc. entered into a three-year Integrity Agreement (IA) with the Department of Health and Human Services Office of Inspector General requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The IA requires training, auditing, and monitoring designed to address the conduct alleged in the case.
The settlement, which was based on the defendants’ ability to pay, resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the FCA by Syd Ackerman, who was formerly employed by the defendants. The FCA permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The FCA permits the United States to intervene in such a lawsuit, as it did in part here. Mr. Ackerman will receive approximately $925,000 of the settlement proceeds.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Central District of California; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; and the Defense Health Agency Office of General Counsel. The qui tam case is captioned United States ex rel. Syd Ackerman v. William M. Kelly, M.D., Inc. and Omega Imaging, Inc., No. EDCV 13-02195 JGB (DTBx) (C.D. Cal.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
William M. Kelly, M.D., Inc and Omega Imaging, Inc. Agree to Pay $5 Million to Resolve Alleged False Claims for Unsupervised and Unaccredited Radiology ServicesRead the Press Release
William M. Kelly Inc. and Omega Imaging Inc., together, operate 11 radiology facilities in Southern California, have agreed to pay the United States $5 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly submitting claims to Medicare and the military healthcare program, TRICARE, for unsupervised radiology services and services provided at unaccredited facilities, the Department of Justice announced today.
“Today’s settlement demonstrates the department’s unrelenting commitment to protect the public fisc and patient safety,” said Acting Assistant Attorney General Jeffrey Clark of the Department of Justice’s Civil Division. “The department will aggressively pursue unscrupulous healthcare providers who cut corners that could jeopardize the health and safety of Medicare and TRICARE beneficiaries.”
“Patients rightly expect that medical providers follow the proper procedures and protocol when administering complex treatments to ensure patient safety,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners we remain steadfast in our commitment to uphold the integrity of government health programs.”
The settlement resolves allegations that the defendants submitted claims for CT scans and MRIs involving contrast injections that were not properly supervised by a physician. Applicable program rules require a physician to be present in the office suite when a patient undergoes an examination that involves the administration of intravenous contrast material. The defendants allegedly performed and billed for these procedures when no supervising physician was present in the office suite. The settlement also resolves allegations that a certain number of the defendants’ facilities lacked accreditation.
Contemporaneous with the settlement, William M. Kelly, Inc. and Omega Imaging Inc. entered into a three-year Integrity Agreement (IA) with the Department of Health and Human Services Office of Inspector General requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The IA requires training, auditing, and monitoring designed to address the conduct alleged in the case.
The settlement, which was based on the defendants’ ability to pay, resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the FCA by Syd Ackerman, who was formerly employed by the defendants. The FCA permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The FCA permits the United States to intervene in such a lawsuit, as it did in part here. Mr. Ackerman will receive approximately $925,000 of the settlement proceeds.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Central District of California; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; and the Defense Health Agency Office of General Counsel. The qui tam case is captioned United States ex rel. Syd Ackerman v. William M. Kelly, M.D., Inc. and Omega Imaging, Inc., No. EDCV 13-02195 JGB (DTBx) (C.D. Cal.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
West Virginia Hospital Agrees to Pay $50 Million to Settle Allegations Concerning Improper Compensation to Referring PhysiciansRead the Press Release
WASHINGTON – Wheeling Hospital, Inc., an acute care hospital located in Wheeling, West Virginia, has agreed to pay the United States a total of $50,000,000 to resolve claims that it violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti-Kickback Statute, the Justice Department announced today.
The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti-Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
"Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided," said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. "The department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making."
In this case, the United States alleged that, from 2007 to 2020, under the direction and control of its prior management, R&V Associates, Ltd. and Ronald Violi, Wheeling Hospital systematically violated the Stark Law and Anti-Kickback Statute by knowingly and willfully paying improper compensation to referring physicians that was based on the volume or value of the physicians’ referrals or was above fair market value.
"Medicare and Medicaid beneficiaries trust that their healthcare providers will make decisions based on sound medical judgment," said Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania. "Our office will take decisive action against any medical providers which betray that trust and make medical decisions based on their own financial interests. Our seniors deserve nothing less."
"Our office is committed to ensuring that health care providers in the Northern District of West Virginia abide by the law," said Bill Powell, United States Attorney for the Northern District of West Virginia. "We are pleased this settlement will enable Wheeling Hospital to resolve these prior False Claims Act violations and continue to provide a full range of healthcare services to patients in the area."
"Improper inducements made to physicians can interfere with medical decision-making and undermine the public’s trust in the health care system," said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General. "Our agency will continue to investigate those who seek to improperly enrich themselves at the expense of public safety and federal health care programs."
The settlement announced today stems from a whistleblower complaint filed in 2017 by a former Executive Vice President of Wheeling Hospital, Louis Longo, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Longo’s allegations. Longo will receive $10,000,000 of the settlement.
The United States’ intervention and settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Western District of Pennsylvania and Northern District of West Virginia, the Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States of America ex rel. Louis Longo v. Wheeling Hospital, Inc. et al., No. 19-cv-192 (N.D.W. Va.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
West Virginia Hospital Agrees to Pay $50 Million to Settle Allegations Concerning Improper Compensation to Referring PhysiciansRead the Press Release
WASHINGTON – Wheeling Hospital, Inc., an acute care hospital located in Wheeling, West Virginia, has agreed to pay the United States a total of $50,000,000 to resolve claims that it violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute, the Justice Department announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making.”
In this case, the United States alleged that, from 2007 to 2020, under the direction and control of its prior management, R&V Associates, Ltd. and Ronald Violi, Wheeling Hospital systematically violated the Stark Law and Anti-Kickback Statute by knowingly and willfully paying improper compensation to referring physicians that was based on the volume or value of the physicians’ referrals or was above fair market value.
“Our office is committed to ensuring that health care providers in the Northern District of West Virginia abide by the law,” said Bill Powell, United States Attorney for the Northern District of West Virginia. “We are pleased this settlement will enable Wheeling Hospital to resolve these prior False Claims Act violations and continue to provide a full range of healthcare services to patients in the area.”
“Medicare and Medicaid beneficiaries trust that their healthcare providers will make decisions based on sound medical judgment,” said Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania. “Our office will take decisive action against any medical providers which betray that trust and make medical decisions based on their own financial interests. Our seniors deserve nothing less.”
“Improper inducements made to physicians can interfere with medical decision-making and undermine the public’s trust in the health care system,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General. “Our agency will continue to investigate those who seek to improperly enrich themselves at the expense of public safety and federal health care programs.”
The settlement announced today stems from a whistleblower complaint filed in 2017 by a former Executive Vice President of Wheeling Hospital, Louis Longo, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Longo’s allegations. Longo will receive $10,000,000 of the settlement.
The United States’ intervention and settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Northern District of West Virginia and Western District of Pennsylvania, the Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States of America ex rel. Louis Longo v. Wheeling Hospital, Inc. et al., No. 19-cv-192 (N.D.W. Va.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
West Virginia Hospital Agrees to Pay $50 Million to Settle Allegations Concerning Improper Compensation to Referring PhysiciansRead the Press Release
Wheeling Hospital Inc., an acute care hospital located in Wheeling, West Virginia, has agreed to pay the United States a total of $50,000,000 to resolve claims that it violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute, the Justice Department announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making.”
“Our office is committed to ensuring that health care providers in the Northern District of West Virginia abide by the law,” said Bill Powell, U.S. Attorney for the Northern District of West Virginia. “We are pleased this settlement will enable Wheeling Hospital to resolve these prior False Claims Act violations and continue to provide a full range of healthcare services to patients in the area.”
“Medicare and Medicaid beneficiaries trust that their healthcare providers will make decisions based on sound medical judgment,” said Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania. “Our office will take decisive action against any medical providers which betray that trust and make medical decisions based on their own financial interests. Our seniors deserve nothing less.”
“Improper inducements made to physicians can interfere with medical decision-making and undermine the public’s trust in the health care system,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General. “Our agency will continue to investigate those who seek to improperly enrich themselves at the expense of public safety and federal health care programs.”
In this case, the United States alleged that, from 2007 to 2020, under the direction and control of its prior management, R&V Associates Ltd. and Ronald Violi, Wheeling Hospital systematically violated the Stark Law and Anti-Kickback Statute by knowingly and willfully paying improper compensation to referring physicians that was based on the volume or value of the physicians’ referrals or was above fair market value.
The settlement announced today stems from a whistleblower complaint filed in 2017 by a former Executive Vice President of Wheeling Hospital, Louis Longo, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Longo’s allegations. Longo will receive $10,000,000 of the settlement.
The United States’ intervention and settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Northern District of West Virginia and Western District of Pennsylvania, the Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States of America ex rel. Louis Longo v. Wheeling Hospital, Inc. et al., No. 19-cv-192 (N.D.W. Va.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Virginia Man Pleads Guilty to Using Stolen Identity in Attempt to Secure Loan from Worcester Credit UnionRead the Press Release
BOSTON – A Virginia man pleaded guilty today in federal court in Worcester to making a false statement on a loan application and aggravated identity theft. At the time of the offense, he was on supervised release for a previous conviction.
Rashad Al-Terek Walker, 39, of Hampton, Va., pleaded guilty to one count of making a false statement on a loan application and one count of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 7, 2021. Walker was charged by criminal complaint in April 2020.
In November 2019, Walker attempted to obtain a loan using a stolen identity from a Worcester-area credit union. Walker provided employees of the credit union several fraudulent records, including a counterfeit license, employer pay record and utility bill. Employees of the credit union immediately reported the matter to law enforcement authorities, who responded to the credit union and arrested Walker.
Walker was previously convicted of bank fraud in U.S. District Court in the Eastern District of Virginia and was on supervised release for that offense when he committed the crimes in Worcester.
The charge of false information on a loan application provides for a sentence of up to 30 years in prison, three years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed and one year of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
U.S. Attorney Michael Dunavant Announces Preliminary Results from First Month of Operation LeGend in MemphisRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant announced today that a total of 302 arrests have been made by local and federal law enforcement officers so far as part of Operation LeGend.
Between August 6 and September 8, 2020, federal and local law enforcement agencies in the Operation LeGend Task Force have worked cooperatively to arrest 106 people on new state and federal charges. Ninety of those arrests were for state charges and 16 of the arrests were for federal violations.
In addition to the 106 arrests, several seizures were made during Operation LeGend activities. The seized items include:
• 85 firearms;
• 6.3 kilograms of methamphetamine and 4 kilograms of heroin; and
• $191,645 in U.S. currency.
The seizure of the firearms is significant since the available information demonstrates that firearms are used in a high percentage of murders and aggravated assaults committed in Memphis.
In the first month of Operation LeGend in Memphis, a total of 16 defendants have been charged with new federal crimes:
• 9 defendants have been charged with federal firearms violations;
• 4 defendants have been charged with violating federal drug laws; and
• 3 defendants have been charged with federal violent crimes such as bank robbery, carjacking, and the robbery of a business engaged in interstate commerce.
Illustrative federal cases include the following examples:
United States v. DeQuan Johnson - DeQuan Johnson, of Memphis, was charged on August 25, 2020, with unlawful possession of a firearm by a drug user. According to the charging document, in January 2020, the ATF assisted the USMS with the arrest of Johnson, who was wanted by police for reckless endangerment with a deadly weapon and aggravated assault stemming from a shooting incident that occurred on November 24, 2019.
It is alleged that on November 24, 2019, Memphis Police Department officers responded to a shooting in which victims reported that two men approached the back porch of their residence and began firing shots into the residence, which was filled with 12 people. One of the victims reported hearing approximately 15 gunshots coming from the back of the residence, and local police subsequently collected 15 spent cartridge casings from the scene. The investigation led to Johnson, who was positively identified by one of the victims.
On January 22, 2020, members of the USMS Fugitive Task Force made contact with Johnson at his residence in Memphis. During a protective search of Johnson’s home, law enforcement located a loaded Smith & Wesson, Model SD40 VE, .40 caliber pistol; an extended magazine containing 20 .40 caliber rounds of ammunition; and marijuana. Because Johnson had active warrants out for his arrest, he was taken into custody.
United States v. Robert Michael Durham- The defendant in this case committed a series of robberies on July 30, 2020, and is charged with robbing the City of Memphis Credit Union. In addition, Durham, as set out in the federal criminal complaint, confessed to robbing the credit union and attempting to rob a CVS Pharmacy, two nurses at a local hospital, and a second bank. Durham, who has a prior federal conviction for bank robbery, was apprehended on August 5, 2020, in Southaven, Mississippi, where he was also charged with driving a stolen vehicle and drug-related charges.
United States v. Jarvis Warren - Warren was wanted on outstanding warrants for carjacking, aggravated robbery and extortion. When officers tried to arrest him, he was driving a stolen BMW. Warren eventually crashed into a fire hydrant and was arrested. He was found to be in possession of a stolen handgun loaded with 30 rounds of ammunition, marijuana, and digital scales. Warren was charged with federal narcotics and firearms offenses.
Also, as part of the Operation LeGend effort nationally, an emphasis has been placed on arresting individuals who have outstanding arrest warrants for violent crimes. This effort has resulted in the arrest of 196 fugitives on pending warrants by the USMS since July 15, 2020, including 47 individuals wanted for homicide charges and 36 identified gang members apprehended in the Memphis area.
U.S. Attorney D. Michael Dunavant said, "Operation LeGend is leveraging our collaboration between federal, state, and local law enforcement, and is already making a difference in our collective fight against violent crime in Memphis. With these new arrests, federal charges, and seizures, we are interrupting the shooting cycle, holding dangerous offenders accountable, reducing violent crime rates, and ultimately saving lives. As violent gun crime and homicide spike up, we will meet that threat with urgency to attack the real violent crime drivers in our community: gangs, guns, and drugs."
Operation LeGend, which began in Memphis on August 6, 2020, is a sustained, systematic, and coordinated national law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime in 9 American cities with increased violent crime rates, including Memphis.
As part of Operation LeGend, Attorney General Barr has directed the ATF, FBI, DEA, HSI and U.S. Marshals Service (USMS) to significantly increase resources into Memphis to help state and local officials fight high levels of violent crime, particularly homicide, aggravated assault, and gun violence. Local agencies participating include the Memphis Police Department; the Shelby County Sheriff’s Office; the Multi-Agency Gang Unit (MGU), and the Shelby County District Attorney General’s Office. The ultimate goal of Operation LeGend is to reduce violent crime through focused and aggressive enforcement of state and federal laws, including federal firearms, narcotics, and violent crime statutes.
The details contained in the cases above are merely allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney Justin Herdman and Police Chief Kral announce results of Operation Red-ZoneRead the Press Release
U.S. Attorney Justin Herdman and Toledo Police Chief George Kral announced the results of Operation Red-Zone over the holiday weekend in the city of Toledo:
- 7 individuals were investigated for firearms violations
- 3 were referred for federal prosecution and
- 6 firearms were seized
In addition to these firearm investigations, the number of persons shot in the city of Toledo decreased by 83% compared to the same time as last year and no homicides were reported.
“Any firearm carried illegally is a firearm that could potentially cause serious harm or end a life,” said U.S. Attorney Justin Herdman. “Each illegal firearm and offender we get off the streets makes the community a safer place to live. I want to thank Chief Kral and the Toledo Police for their partnership in this endeavor and look forward to further cooperation and success. We need the help of everyone in law enforcement and the greater community to help end violent crime. ”
“As cities across the nation work towards stopping the escalation in gun violence, I am proud of the teamwork displayed this weekend amongst Toledo Police and Federal Agents,” said Toledo Police Chief George Kral. “The cases referred for federal prosecution will set an example to those who illegally carry firearms and disrupt the peace in our city that it will not be tolerated in Toledo. As TPD and Federal Agents continue to work together to arrest these dangerous criminals, it is my hope that as a community we work towards a feasible solution to eliminate gun violence.”
Operation Red-Zone was a combined federal, state and local partnership aimed at reducing gun violence over the Labor Day weekend. In addition, Operation Red-Zone seeks to pursue federal charges, where applicable, against individuals who are prohibited under federal law from possessing firearms, or who otherwise use firearms in a violent crime or drug trafficking offense.
U.S. Attorney Issues Scam Alert: Beware of Imposters Claiming to Be with the Justice Department, Preying on the ElderlyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray issued an alert today, warning the public of potential scammers seeking to obtain personal information by claiming to be with the Justice Department.
In making today’s announcement, U.S. Attorney Murray warned, “Watch out for imposters claiming to be Justice Department representatives, attempting to obtain personal information that can be used to perpetrate fraud. It is particularly disturbing that scammers appear to be targeting older adults, though everyone can be potentially victimized. I caution the public to remain extra vigilant against these imposter schemes. If you are contacted, do not disclose any personal information and report the scam by calling the Department of Justice’s Elder Fraud Hotline at 1-833-Fraud-11, or 1-833-372-8311.”
Reports to the National Elder Fraud Hotline indicate these scammers falsely represent themselves as Department of Justice investigators or employees, and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs callers to a recorded menu that matches the recorded menu for the Justice Department’s main phone number. Eventually, the caller reaches an “operator” who steers the caller to someone claiming to be an investigator. That “investigator” then attempts to gain the caller’s personal information.
Those who receive imposter calls are cautioned against providing any personal information. If contacted, please file a report with:
- The Justice Department’s Elder Fraud Hotline at 1-833-Fraud-11 (1-833-372-8311).
- The Federal Trade Commission (FTC) via their website or by calling 877–FTC–HELP (877-382-4357).
- The FBI, for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.
The National Elder Fraud hotline was created for the public to report fraud against individuals who are age 60 or older. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.
Two Defendants Charged with Civil Disorder for Attacking Police During September 5th Violent Protests in the City of RochesterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that two defendants have been arrested and charged in separate complaints with civil disorder for their roles in violent weekend protests in the City of Rochester. Adam Green, 20, of Dansville, NY, and Dallas Williams-Smothers, 20, of Rochester, NY, each face five years in prison if convicted.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the criminal complaints, there were two nights of violent protests in Rochester following the public disclosure on September 2, 2020, of Daniel Prude’s death on March 30, 2020, one week after an encounter he had with RPD police officers. Those violent protests resulted in property damage and physical injury to several Rochester Police Department (RPD) police officers.
As alleged, during the evening of September 5, 2020, a group of approximately 1,500 protesters gathered at the intersection of Broad Street and Exchange Boulevard, located a block north of RPD headquarters. The protestors blocked all lanes of traffic on Broad Street and all lanes of traffic on Exchange Boulevard between Broad Street and Main Street. The group extended from the intersection of Broad Street and Exchange Boulevard to the intersection of State Street and Main Street. As a result, law enforcement officers shut down Exit 14 on Interstate 490 in Rochester for approximately eight hours and the State Street exit on the Inner Loop in the City of Rochester for approximately one hour. Protestors were repeatedly asked by an RPD sound truck to leave the area on the sidewalks or be subject to arrest for Disorderly Conduct for impeding traffic. Several members of the group disregarded those messages, remained in the streets, and continued to block the intersection. Defendant Green – who was wearing a black helmet and carrying a makeshift wooden shield – was part of the group that refused to disperse.
Thereafter, RPD declared an unlawful assembly because of the criminal activity, which included protestors hurling rocks, bottles, lit fireworks and other objects, shining flashlights, and pointing lasers at police officers. In an effort to clear the intersection, RPD officers approached the remaining members of the crowd who refused to leave. As one officer approached defendant Green, he swung the wooden shield that he was carrying, striking the officer in the forehead portion of his helmet. After being told he was under arrest, Green resisted and fought with the officer and another officer who was assisting. Green was eventually handcuffed and arrested. The officer suffered a cut and abrasion on the bridge of his nose from being struck in the head by the wooden shield.
At approximately 11:20 p.m. that night, an RPD officer observed Williams-Smothers ignite a mortar-style, commercial grade firework and throw it at a line of uniformed RPD officers as they attempted to address a crowd at the intersection of State Street and Main Street. The firework detonated in the immediate vicinity of the officers, causing a loud explosion and creating a risk of serious injury to the officers. Williams-Smothers then fled the area on foot. After a physical description of the defendant was communicated to RPD personnel, he was apprehended and arrested in the area of 4 Commercial Street. At the time of his arrest, officers searched several pouches that were attached to a belt Williams-Smothers was wearing. Inside one of the pouches, officers recovered two mortar-style, commercial grade fireworks, each of which was three inches long and one inch wide, shaped like a light bulb, and had a fuse protruding from the stem.
The complaints are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the New York State Police, under the direction of Acting Major Barry Chase; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Brighton Police Department, under the direction of Chief David Catholdi; the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci; the Dansville Police Department, under the direction of Sergeant Shannon Griese; and the United States Marshal’s Service, under the direction of United States Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Convicted Felons Who Possessed Firearms Each Sentenced to 180 Months in Federal PrisonRead the Press Release
LITTLE ROCK-Two multi-convicted felons will spend the next 180 months in federal prison for illegally possessing a firearm. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the sentences, which were handed down today in federal court. Demarcus King, 35, of North Little Rock, was sentenced by United States District Judge Kristine G. Baker, and Larry Anthony Smith, 49, of Little Rock, was sentenced by Chief United States District Judge D.P. Marshall, Jr.
Both King and Smith are considered armed career criminals, which means their criminal histories include at least three prior convictions for a violent felony, serious drug offense, or both. As armed career criminals, each defendant was subject to a 15-year mandatory minimum sentence, which is what each received. King admitted prior convictions for delivery of cocaine, residential burglary, possession of drug paraphernalia, and possession of cocaine and alprazolam (Xanax) with purpose to deliver. Smith admitted prior convictions for 2nd degree murder, theft by receiving, 2nd degree battery (twice), forgery, simultaneous possession of drugs and firearms, possession of firearms by certain persons, and possession of cocaine. Both defendants were sentenced to three years of supervised release to follow their 15-year prison sentences.
“These two cases are perfect examples of how we can use the federal system to target the most violent offenders,” stated U.S. Attorney Hiland. “These career criminals will spend 15 years in prison, where they will no longer create chaos and danger in our communities. Violent felons should take note that we can and will seek these lengthy sentences for those who make a career out of committing violent crime.”
King pleaded guilty to one count of being a felon in possession of a firearm on January 17, 2020. At that hearing, King admitted that on December 4, 2017, he reported to his state parole officer for a scheduled office visit. The parole officer decided to conduct a routine parole search, as King had a signed search waiver on file as part of his probation. On the way to the residence, King suddenly became unresponsive and was transported by ambulance to a hospital. Other officers proceeded to King’s residence, where his mother provided consent for them to enter and search. His mother identified King’s room and told officers that no one else used that bedroom. Inside King’s bedroom, officers found a nine-millimeter Glock pistol, which was loaded with 14 rounds of ammunition and one in the chamber.
Smith pleaded guilty to one count of being a felon in possession of a firearm on March 3, 2020. At that hearing, Smith admitted that on July 12, 2018, police were called due to a disturbance at a residence. When officers arrived, Smith came to the door holding a black .38 caliber revolver, which was loaded with four live rounds. Smith provided a false name and birthdate to police and was eventually taken into custody.
These cases are part of Project Safe Neighborhoods, a Department of Justice initiative designed to create and foster safer neighborhoods through a sustained reduction in violent crime, including addressing criminal gangs and the felonious possession and use of firearms. The program has been effective in reducing violent crime because of the ongoing coordination, cooperation, and partnerships of local, state, and federal law enforcement agencies.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Spencer Woman to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced September 3, 2020, to more than 6 years in federal prison. Shana Mull, 33, from Spencer, Iowa, received the prison term after a March 19, 2020, guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that between June 2019 through August 2019, Mull and others conspired to distribute over 10 pounds of methamphetamine in the Iowa Great Lakes area. Mull was responsible for the distribution of smaller (sub ounce) quantities of methamphetamine. Mull further admitted her association with and assistance to a larger methamphetamine dealer in the acquisition of ten pounds of methamphetamine and one pound of cocaine. In late August 2019, on two separate occasions, Mull engaged in extremely reckless conduct in her attempts to elude law enforcement, causing substantial property damage while erratically operating a motor vehicle at excessive speeds. During the time period of the conspiracy Mull associated with others who possessed firearms. Mull was ultimately captured in Okoboji, Iowa, in a self-storage unit where she and her boyfriend were temporarily residing.
Mull was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mull was sentenced to 82 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Mull is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Okoboji Police Department, Milford Police Department, Dickinson County Sheriff’s Office, Spencer Police Department, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4075. Follow us on Twitter @USAO_NDIA.
South Carolina Man Sentenced to 240 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - A Blacksburg, South Carolina man, Joe Barlow Owens, 44, was sentenced to 240 months in federal prison on Wednesday, before U.S. District Judge Claria Horn Boom, for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
In his prior guilty plea, Owens admitted that he committed both offenses on February 25, 2019, in Knox County. According to his guilty plea agreement, law enforcement officials searched his vehicle and found over 700 grams of methamphetamine, cash, and a loaded firearm, which Owens admitted was to protect his drugs and drug proceeds. Owens also admitted that he knew he had a prior felony conviction, for possession with intent to distribute methamphetamine.
Owens pleaded guilty in March 2020.
Under federal law, Owens must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 10 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Sheriff Mike Smith, Knox County Sheriff’s Department, jointly made the announcement.
The investigation was directed by DEA and the Knox County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Duncan coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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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Sioux Falls Man Charged with Receipt, Distribution, and Transportation of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography and Transportation of Child Pornography.
Joshua Lynn Lugert, age 37, was indicted on September 1, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 8, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between December 1, 2018, and July 30, 2020, Lugert knowingly received and distributed, and attempted to receive and distribute child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The Indictment also alleges that on or about March 12, 2019, and March 6, 2020, Lugert knowingly transported child pornography using the internet. Lugert uploaded graphic image and video files depicting one or more minors engaged in sexually explicit conduct into a Google e-mail account.
The charges are merely accusation and Lugert is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security, the Division of Criminal Investigation, Office of the Attorney General, the Sioux Falls Police Department, and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Lugerg was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sentences, multiple indictments highlight Project Guardian’s collaborative law enforcement strategyRead the Press Release
SAVANNAH, GA: Two men have been sentenced to prison and more than a dozen defendants charged in separate cases in the Southern District of Georgia relating to illegal possession of firearms.
While many of the charges target drug trafficking, all of the indictments include previously convicted felons who are prohibited from possessing firearms, several of them on felony probation for state charges at the time of their arrest, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The sentences and indictments are under the umbrella of Project Guardian, the Department of Justice initiative targeting illegal firearms, and in coordination with the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF).
“We continue to make our community safer by identifying and removing offenders who illegally possess and use firearms,” said U.S. Attorney Christine. “Along with our law enforcement partners, we are committed to keeping guns out of the hands of criminals.”
Two men were sentenced to federal prison for crimes involving illegal firearms possession:
- Janard James Coney, 26, of Port Wentworth, was sentenced to the maximum 120 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Possession of a Firearm by a Convicted Felon. Coney, while on state probation for a domestic assault charge, was arrested in July 2019 after fleeing from a Port Wentworth home where he was reported as trespassing. He was later found hiding in the attic of his mother’s residence, and also faces multiple state charges.
- James Chapman, 31, of Savannah, was sentenced to 78 months in federal prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to Possession of a Stolen Firearm. Chapman, who has multiple prior convictions on state felony charges, was found in possession of a pistol after his arrest in August 2019 by Pooler Police.
Those named in federal indictments from the September term of the U.S. District Court grand jury include:
- Treyvious Jean Baptiste, 29, of Birmingham, Ala., charged with Possession With Intent to Distribute Fentanyl and Eutylone (Bath Salts); Possession With Intent to Distribute Cocaine, Crack Cocaine and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon. The charges are a result of a items found in Baptiste’s vehicle during a May 2, 2020 traffic stop in Laurens County by Laurens County Sheriff’s deputies, and a May 19, 2020 Georgia State Patrol investigation into Baptiste’s crash of his car in Laurens County. Baptiste faces a sentence of up to life in prison.
- Maurice Diggs, 41, of Augusta, charged with Possession with Intent to Distribute Methamphetamine, Heroin and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon. Diggs was implicated when Richmond County Sheriff’s deputies found drugs, cash, and drug distribution paraphernalia, along with four firearms, during a search of an apartment where Diggs was present. Diggs faces up to 40 years in prison.
- David Alexander Harris, 40, of Augusta, charged with Possession with Intention to Distribute Eutylone (Bath Salts) and Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon. Harris, who faces up to 40 years in prison, came to the attention of Richmond County Sheriff’s deputies in March 2020 when he was discovered with a pistol in his lap while asleep behind the wheel of a vehicle at a traffic light.
- William Austin Hunter, 24, of Martinez, Ga., charged with Possession of an Unregistered Firearm and Possession of a Firearm by a Prohibited Person; and Patrick Allen Scott, 27, of Martinez, Ga., charged with Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies went to Hunter’s residence in February 2020 while investigating a drive-by shooting at another location. As deputies were questioning Hunter, they noticed Scott climbing over a backyard fence while in possession of a bag containing a sawed-off shotgun, an SKS rifle, ammunition and magazines. A search of the residence discovered another sawed-off shotgun, a shortened rifle and a pistol. Each of the charges carry a penalty of up to 10 years in prison.
- Michael Jerry Nasworthy, 30, of Martinez, Ga., and Ivey Elizabeth Clements, 26, of Martinez, Ga., both charged with Conspiracy to Possess with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine. Nasworthy also is charged with Possession of Ammunition by a Convicted Felon. Nasworthy and Clements were both on probation for prior state felony convictions and subject to search when officers from the Georgia Department of Community Supervision visited their residence along with agents from the ATF. Both were taken into custody when the search discovered drugs and bullets. The charges carry a penalty of up to 20 years in prison.
- Letrail Jerome West, 42, of Augusta, charged with Possession of Cocaine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon. West was arrested by Richmond County Sheriff’s deputies in July 2019 after he fled from an attempted traffic stop. In a subsequent search of his hotel room, investigators found drugs and an SKS rifle with a high-capacity magazine. Because of prior felony convictions on state charges involving narcotics, West faces up to 30 years in prison.
- Carlos Terrell Keith, 29, of Augusta, charged with Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies found Keith in possession of a pistol during an August 2019 traffic stop. He faces up to 10 years in prison.
- Devonta Armon Stallings, 27, of Augusta, charged with Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies spotted Stallings when he ran from a group loitering in a known drug area and tossed a pistol before being captured. Stallings, who was on state probation at the time of his arrest, faces up to 10 years in prison.
- Travis Dennon Palmer, 29, of Savannah, charged with Possession of a Firearm by a Convicted Felon. Palmer was arrested in March 2019 when the Savannah Police Department and U.S. Marshals searched for him in a section of apartments while responding to a report of a man with a gun. Palmer was taken into custody after falling through an attic ceiling, and officers found three firearms. Palmer faces up to 10 years in prison.
- Delvon Brown, 34, of Savannah, charged with Possession of a Firearm by a Convicted Felon in September 2019 after Savannah Police officers found him in possession of a pistol during a traffic stop and brief foot chase. Brown, who was on probation on a state conviction for illegal firearms possession, faces up to 10 years in prison.
- Sundiadaa Miller, 32, of Savannah, charged with Possession of Firearm by a Convicted Felon. Miller was arrested in January 2020 by Savannah Police officers. The charge carries a penalty of up to 10 years in prison.
- Matthew Moore, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon. Moore was arrested in June 2019 after running from Savannah Police officers responding to a report of an armed man threatening people at a hotel. He was found in possession of a bag containing three pistols, and faces up to 10 years in prison.
- Darryl Kinloch, 29, of Savannah, charged in February 2020 when Savannah Police officers found two pistols in his car during a traffic stop. He faces up to 10 years in prison.
- Darnell Miller, 21, of Savannah, charged with Possession of a Firearm by a Convicted Felon. Miller was arrested in September 2019 when Savannah Police officers found him in possession of a pistol during a traffic stop. Miller faces up to 10 years in prison.
In another firearms-related case, Christian Eduardo Flores-Garcia, 31, of Honduras, is charged by Information with Possession of a Firearm by an Illegal Alien, and with Illegal Reentry After Deportation. Flores-Garcia was arrested after a traffic stop in January 2020 by Richmond County Sheriff’s deputies investigating a disturbance at a restaurant. Flores-Garcia has been deported from the United States on two prior occasions, and faces up to 10 years in prison.
Criminal indictments and Informations contain only charges; defendants are presumed innocent unless and until proven guilty.
“The value of these types of cases can be measured in human lives,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “These cases involve illegally possessed firearms in the hands of criminals. They demonstrate the cooperation that exists between ATF and our state, local and federal law enforcement partners.”
The cases are investigated under Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws, and the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for prosecuting crimes.
In addition to the ATF, agencies involved in investigation of the cases include the Drug Enforcement Administration, Homeland Security Investigations, the FBI, the U.S. Marshals Service, the Georgia State Patrol, the Georgia Department of Community Supervision, the Savannah Police Department, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Laurens County Sheriff’s Office, and the Port Wentworth Police Department.
The cases are being investigated for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys including Project Guardian Coordinator Henry W. Syms; Alejandro V. Pascual IV; Marcela C. Mateo; Joseph McCool; Joshua S. Bearden; Patricia G. Rhodes; Channell Singh; Steven Lee; Tara Lyons; Jennifer Stanley; and Special Assistant U.S. Attorneys Darron Hubbard, Edwin Caban and Noah Abrams.
Robeson County Men Sentenced for Heroin DistributionRead the Press Release
RALEIGH, N.C. – Two Robeson County men were sentenced today to federal prison for heroin and fentanyl distribution.
Justin Dwayne Jones, 23, was sentenced to 156 months and Joshua Allen Woods, 29, was sentenced to 63 months imprisonment. Both were engaged in a 2019 conspiracy to sell heroin, fentanyl, and other controlled substances in Robeson County. Investigators were able to link the heroin/fentanyl mixture sold during the course of the conspiracy to several overdose incidents that required emergency medical intervention. A third co-conspirator, Cody Alexander Locklear, was sentenced to 234 months in prison on August 3, 2020 for his role in the conspiracy and for the possession of firearms in furtherance of drug trafficking.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office and Federal Bureau of Investigation investigated the case and Special Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-101-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Response to 911 Call Lands Lawton Man in Federal Prison for Eight Years for Unlawful Possession of Explosives and FirearmsRead the Press Release
OKLAHOMA CITY – PHILIP JAMES HEATH, 52, of Lawton, has been sentenced to serve 96 months in federal prison for possession of illegal explosives and possession of multiple firearms after having been previously convicted of a felony, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
According to court records, on January 30, 2019, Lawton police officers responded to a 911 call and ultimately discovered multiple firearms inside Heath’s residence. Because of additional materials discovered at the scene, the Lawton Police Department was then assisted in the investigation by the Oklahoma Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI Oklahoma City Division’s Joint Terrorism Task Force.
On February 4, 2019, Heath was charged by criminal complaint with being a convicted felon in possession of multiple firearms. On April 3, 2019, a federal grand jury returned a two-count Indictment that alleged illegal possession of firearms and two lengths of detonating cord, an illegal explosive under federal law. The Indictment also sought forfeiture of five firearms, 1,404 rounds of various kinds of ammunition, and the two lengths of detonating cord. On June 6, 2019, Heath pleaded guilty to both counts alleged in the Indictment.
Today, U.S. District Court Judge Scott L. Palk sentenced Heath to serve eight years in federal prison and three years of supervised release following his release from prison. The sentence consisted of 96 months on each count of conviction to run concurrently with each other. Judge Palk also ordered Heath to forfeit the items listed in the Indictment. In announcing Heath’s sentence, Judge Palk emphasized Heath’s criminal history, his conduct related to the possession of the illegal explosives, the need to protect the public from further crimes of Heath, and the need to adequately deter him from engaging in criminal conduct.
This case is a result of an investigation by the Lawton Police Department, the Oklahoma Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI Oklahoma City Division’s Joint Terrorism Task Force. Prosecuted by Assistant U.S. Attorneys Brandon Hale and Travis D. Smith, the case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Reno Man Sentenced to Prison for Possessing Thousands of Images and Videos of Child Sexual AbuseRead the Press Release
RENO, Nev. – A Reno man was sentenced today to 5 years and 3 months in federal prison for possessing thousands of child sexual abuse images and videos, including prepubescent minors involved in sexually explicit conduct and sadistic and masochistic conduct, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Daren Wayne Phillips, 51, pleaded guilty on June 5, 2019, to one count of possession of child pornography. In addition, Chief U.S. District Judge Miranda Du sentenced Phillips to 20 years of supervised release following the term of imprisonment. Under the Sex Offender Registration Notification Act, Phillips will also be required to register as a sex offender.
According to court documents, in April 2018, an individual presented Phillips’ laptop computer to law enforcement and reported finding child pornography on the computer. Investigators found child pornography on Phillips’ computer. Phillips admitted that, starting in 2016 to April 2018, he possessed on his computer: (a) 4,753 images and 538 videos of child pornography; and (b) an additional 17,036 images and 449 videos containing child erotica or nudity. Some of the images depicted prepubescent minors engaging in sexually explicit conduct, including sadistic and masochistic conduct.
The case was investigated by the Northern Nevada Child Exploitation Task Force, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorneys James Keller and Andolyn Johnson prosecuted the case.
To report child sexual abuse and exploitation, please contact the National Center for Missing & Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org/.
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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Registered sex offender admits to child pornography chargeRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Orange Grove man has entered a guilty plea to receiving child pornography, announced U.S. Attorney Ryan K. Patrick.
Authorities had linked Cameron Michael Pittman to an IP address that was sharing child pornography.
The investigation began when the National Center for Missing and Exploited Children alerted authorities that images of child pornography were being uploaded through an IP address originating in Orange Grove. The investigation led Pittman as the one using the e-mail and IP address.
Law enforcement conducted a search, at which time they seized multiple electronic devices from Pittman’s residence. A forensic examination later revealed images and videos of child pornography. Today, Pittman admitted to receiving the images. The large majority of the images and videos located on Pittman’s devices depicted the sexual exploitation of children under the age of 10.
At the time of his arrest, Pittman was a registered sex offender and on probation for the 2nd degree felony offense of indecency with a child.
Sentencing has been set before U.S. District Judge Drew B. Tipton Dec. 11. At that time, Pittman faces a mandatory minimum of 15 years and up to 40 as well as a possible $250,000 maximum fine.
The Corpus Christi Police Department Internet Crimes Against Children Task Force; Jim Wells County Sheriff’s Office and Probation Department; Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sara Popejoy is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Putnam County Library Employee Arrested and Charged with Production of Child Exploitation MaterialRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Kurt Batucan Sheldon (29, Interlachen) has been arrested and charged by federal criminal complaint with production and possession of child exploitation material. Sheldon faces a minimum mandatory penalty of 15 years, and up to 50 years, in federal prison. Sheldon has been detained pending a hearing scheduled for September 10, 2020.
According to the complaint, parents of a minor child made a report to the Clay County Sheriff’s Office about sexually explicit messages being sent by an adult to their daughter on Snapchat and Whisper. The adult referred to himself as “K t.” “K t” was his screen name on Snapchat, but his Snapchat username was “tacticfallout.” “K t” originally began communicating with the child on Whisper and represented himself as a male, between the ages of 25-29. The child told him that she was 15 years old. “K t” told the child that his name was “Kurt” and that he lived in Putnam. The child told “Kurt” she lived with her parents and was in school. Their conversation later moved to Snapchat and “K t” requested child exploitation material—images and videos—from the child and directed the child on how to take the images and how to pose. Approximately 50 images and/or videos were sent to “K t” at his direction.
Further investigation by the Clay County Sheriff’s Office and Homeland Security Investigations identified Sheldon’s residence as the source of the IP address used by the Snapchat account “tacticfallout,” and the Gmail account associated with this Snapchat account.
On September 4, 2020, HSI agents and deputies and detectives with the Putnam County Sheriff’s Office executed a search warrant at Sheldon’s residence. Sheldon admitted there was child sexual abuse material on the computer. He also admitted to asking girls he met on online applications, whom he knew to be underage, to send him nude photographs, including a 15 year-old female.
Any person who was, or knows of someone who may have been, a possible child victim is urged to contact HSI at 1-866-DHS-2ICE or online tip form - http://www.ice.gov/webform/hsi-tip-form.
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Ashley Washington and Kelly Karase.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A criminal complaint is merely an allegation and all criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Prison Sentence for Neopit Man Convicted of Separate Sexual Assaults of a Child and Adult Woman on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that an individual received consecutive sentences totaling 180 months following convictions in separate cases for child sexual abuse and abusive sexual contact. The man, Peter Awonohopay (age: 37), formerly lived in Neopit, which is a community on the Menominee Indian Reservation.
The sentences, imposed on September 8, 2020, by Senior United States District Judge William C. Griesbach, were the result of guilty pleas entered by the defendant on February 12, 2020. Judge Griesbach sentenced the defendant as follows:
CHARGE
STATUTE
PRISON LENGTH
Abusive Sexual Contact
(Case No. 19-CR-208)
18 U.S.C. §§ 2243(a), 1153(a), 2247(a), and 2260A
24 months
Sexual Abuse of a Child
(Case No. 19-CR-220)
18 U.S.C. §§ 2244(b), 1153(a), and 2247(a)
156 months
Following the prison sentences, the defendant will serve the remainder of his life on supervised release.
According to court documents, on June 17, 2019, the defendant had nonconsensual sexual contact with an adult female at her residence in Keshena. The defendant admitted to investigators he entered the woman’s house without her knowledge and attempted to have sexual intercourse with her while she slept.
In the second case, discovered after the June 2019 incident, the defendant engaged in a sex act with a girl who was between 12 and 16 years of age. This abuse occurred in 2018 at the defendant’s residence in Neopit. The defendant admitted engaging in sex acts with the child in June 2018.
In sentencing the defendant, Judge Griesbach noted the crimes the defendant committed were “disgusting” and “horrendous.” Judge Griesbach recognized the courage of the victims for coming forward and reporting the crimes against them, which enabled the government to bring charges, and the court to impose a sentence designed to protect other children from the defendant. Judge Griesbach observed a strong need to protect the public from the defendant, who in 2006 received a 41-month sentence for sex offenses against a minor. Judge Griesbach also remarked upon the need to deter those would might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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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Portland Resident Charged with Civil Disorder After Punching Local Police OfficerRead the Press Release
PORTLAND, Ore.—Laurielle Yvette Aviles, 29, of Portland, has been charged by criminal complaint with civil disorder, a felony, after punching a Portland Police Bureau officer in the face during a declared riot on July 3, 2020.
According to court documents, on July 2, 2020, the Portland Police Bureau’s Rapid Response Team was conducting crowd control duties during a declared riot near the Multnomah County Justice Center and Mark O. Hatfield. U.S. Courthouse in downtown Portland. Individuals in the crowd threw mortars, fireworks, glass bottles, rocks, and other objects at officers; blocked roads, and impeded traffic flow.
In the early morning hours of July 3, 2020, a Portland police officer was executing an arrest of a rioter when Aviles is alleged to have forcibly intervened. Aviles attempted to pull the officer off of the arrestee and punched the officer in the face. The arresting officer tried to gain control of the arrestee and Aviles, but was unable to do so. A second officer observed the struggle and saw Aviles throwing punches. The second officer intervened and was able to place Aviles under arrest. Aviles was later released by state authorities.
On September 8, 2020, Aviles surrendered to the U.S. Marshals Service. Today, Aviles made a first appearance in federal court before a U.S. Magistrate Judge and was released pending further proceedings. If convicted, Aviles faces a maximum sentence of five years in federal prison.
This case was investigated by the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pasco County Couple Arrested for Submitting False Claims for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Christina Lynn Catalano (38, Holiday) with disaster assistance fraud regarding Hurricane Irma. The indictment also charges Catalano and her husband, Joseph Samuel Catalano (54), with making false statements to federal agents to conceal such fraud. If convicted, Christina Catalano faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States. Joseph Catalano faces a maximum penalty of 5 years in federal prison.
According to the indictment, between September 15 and November 20, 2017, Christina Catalano falsified records concerning the alleged destruction to a non-existent travel trailer, which she claimed as her primary residence in Citrus County. The records accompanied an application for assistance to the Federal Emergency Management Agency’s Individuals and Households Program for Hurricane Irma.
The indictment further alleges that on January 31, 2020, Christina and Joseph Catalano made false statements to federal agents from the Department of Homeland Security to conceal the fraudulent claims.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. It was investigated by the Department of Homeland Security – Office of Inspector General with assistance from Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll-free at (866) 720-5721 or complete the online complaint form by visiting www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.