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Friday 24 July 2020
Guilty Verdict for Parolee-Felon in Possession of FirearmsRead the Press Release
United States Attorney Joe Kelly announced that on July 24, 2020, Emmanuel John of Omaha was found guilty following a jury trial before United States District Judge Brian C. Buescher on six counts of being a felon in possession of a firearm. John will be sentenced on October 21, 2020, and faces up to 10 years’ incarceration on each of the six counts. This was the first jury trial in federal court in Nebraska since trials were suspended due to COVID.
Between July 2018 and August 2018, John illegally sold eight guns to a confidential informant during six separate controlled buys. At the time of the events, John, a Trip Set gang member, was out on parole for a robbery conviction. Following his arrest on the federal case, John’s parole was revoked and he was sent back to the Nebraska Department of Corrections where he remained in custody.
As a now three-time convicted felon, John’s arrest was part of a Project Safe Neighborhood initiative and a larger operation to make controlled purchases of firearms and narcotics, which targeted members of the Trip Set and African Pride gangs. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department. Project Safe Neighborhood is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Fort Wayne Man ChargedRead the Press Release
FORT WAYNE – John Clark, age 53, of Fort Wayne, Indiana was charged in a criminal complaint with drug and weapon violations, announced U.S. Attorney Kirsch.
According to documents in this case, Mr. Clark, a convicted felon, was arrested after a search warrant was executed on his residence. The complaint alleges that Clark used his residence to distribute narcotics. During the search, agents found crack cocaine, firearms, other drugs and items used for distribution and cash.
“I wish to commend all the law enforcement agencies on this case for their tireless efforts to reduce drug trafficking in the Allen County area,” said United States Attorney Thomas L. Kirsch II. “Getting illegal guns and drugs off the streets promotes safety for law abiding citizens.”
Assistant Special Agent in Charge, Michael Gannon said, “DEA is committed to working hand and hand with the Allen County Police Department and our state, local and federal partners. We will utilize all available resources to target drug dealers and put them in jail. I commend the exceptional work that was done in this investigation which resulted in the seizure of cocaine, several firearms, and currency.”
The United States Attorney’s Office emphasizes that a Complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The case is being investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Allen County Drug Task Force, comprised of the Allen County Sheriff’s Department and New Haven Police Department. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former U.S. Army Soldier Indicted on Conspiracy to Commit Marriage Fraud, Marriage Fraud, Harboring an Alien for Financial Gain, Visa Fraud, False Statements Under Oath, Theft of Government Property and Criminal Contempt ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment charging a former U.S. Army soldier with conspiracy to commit marriage fraud, marriage fraud, harboring an alien for financial gain, visa fraud, false statement under oath, theft of government property, and criminal contempt.
According to the indictment, Endasia Mahagony East, a U.S. Citizen, knowingly induced a foreign-born national to enter into a sham marriage with her for the purpose of evading United States immigration laws and obtaining lawful permanent residence status for the otherwise inadmissible foreign-born national.
East is charged in a 7-count indictment, if convicted she faces multiple counts of 5 years maximum imprisonment, multiple counts of 10 years maximum imprisonment, a count of 15 years maximum imprisonment, a maximum fine of $250,000 per count, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The case was investigated by the U.S. Army Criminal Investigation Division and the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Homeland Security Investigations.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Sault Ste. Marie Man Sentenced to Seven Years in Prison for Abusive Sexual Contact with A MinorRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that Allen Michael Foster, 29, was sentenced in U.S. District Court to 84 months imprisonment for abusive sexual contact with a minor under the age of 12 years. As part of his sentence, Foster will be on supervised release for six years following his incarceration and be required to register as a sex offender.
The charge arose from an investigation initiated in 2016 that determined that between 2012 and 2014, Foster sexually abused a minor who was residing in his household on the Sault Ste. Marie reservation.
The Door County Sheriff’s Department, Sault Tribe Law Enforcement Department, and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
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Former Rockcastle Deputy Jailer Convicted of Civil Rights ViolationsRead the Press Release
LONDON, Ky. - A Mt, Vernon, Kentucky, man was convicted Thursday by a federal jury in London for violating the civil rights of an inmate under custody.
After seven hours of deliberation, following a four-day trial, the jury convicted 25-year-old Derek Steven Clark, a former Deputy Jailer at the Rockcastle County Detention Center, from Mt. Vernon, Kentucky, of two counts of injuring, oppressing, threatening, and intimidating a victim, an arrestee, and one count of making a false entry in a record or document intending to impede or influence the investigation of the matter within a federal jurisdiction.
According to testimony at trial, Clark and others placed an inmate victim into a restraint chair. Clark then aided and commanded the assault of the victim by another, which resulted in bodily injury. Afterwards, Clark completed an official incident report to document the incident. In completing that report, Clark falsely wrote that after he and others placed the victim in the restraint chair, the victim began spitting at deputy jailers, causing two inmates to intervene. Clark’s false report indicated one inmate instinctively slapped the victim which caused the victim’s lip to bleed, and that the victim then spit blood, causing the inmate to punch the victim.
Evidence at trial established that, in truth, Clark and others placed the victim into the restraint chair, and the victim did not become physically combative or spit at deputies, before being punched by the inmate.
Clark was indicted in December 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the conviction.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorney Hydee Hawkins.
Clark will appear for sentencing on November 18, 2020. He faces a maximum of ten years in prison for Count 1 and 2, and a maximum of 20 years in prison for Count 3. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Howard University Associate Director Pleads Guilty to Defrauding the School Out of More Than $100,000Read the Press Release
WASHINGTON – Doemini Mosley, 35, of Washington, D.C., pled guilty today to defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office Criminal Division.
Mosley pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. Her co-conspirator, Brian Johnson, 35, of Washington, D.C., pled guilty last week to the same offense. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Mosley faces a potential recommended sentence of between 10 and 24 months in prison. The plea agreement calls for Mosley to pay $139,697.75 in restitution and $85,850 in a forfeiture money judgment.
Mosley worked at Howard from 2011 through June 2017, initially in the financial aid office and then ultimately as the Associate Director of the Bursar’s Office. Johnson, a Howard graduate, served as Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, Mosley proposed a scheme to Johnson in which Mosley would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to Mosley. As part of the scheme, Mosley applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, Mosley caused Howard University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with Mosley in the form of cash or electronic payments.
Mosley also separately defrauded the university out of an additional $32,000 in May 2017.
The Honorable Beryl A. Howell accepted Johnson’s guilty plea last Friday and Mosley’s guilty plea today. Johnson is scheduled to be sentenced on September 25, 2020. Mosley is scheduled to be sentenced on October 2, 2020.
This case is part of an ongoing investigation being conducted by the FBI’s Washington Field Office. Assistant U.S. Attorney Kondi Kleinman of the Fraud and Public Corruption Section is prosecuting the case.
Former CEO and Founder of Technology Company Charged in Investment Fraud SchemeRead the Press Release
WASHINGTON – The CEO and co-founder of Trustify Inc. (Trustify), a privately-held technology company founded in 2015 and based in Arlington, Virginia, was charged in an indictment unsealed today for his alleged role in a fraud scheme resulting in millions of dollars of losses to investors.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Daniel Boice, 41, of Alexandria, Virginia, was charged with five counts of wire fraud, one count of securities fraud, and two counts of money laundering.
The indictment alleges that, beginning in 2015, Boice fraudulently solicited investments in Trustify, a privately-held technology start-up company that connected customers with private investigators. Boice allegedly raised approximately $18.5 million from over 90 investors by, among other things, falsely overstating Trustify’s financial performance. The indictment also alleges that Boice made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Washington Field Office is investigating the case. The U.S. Securities and Exchange Commission provided assistance and is also filing a civil complaint against the defendant for related conduct. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Russell Carlberg of the Eastern District of Virginia are prosecuting the case. The department would also like to thank the Virginia State Corporation Commission for its assistance.
Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the Eastern District of Virginia at 703-299-3700 for more information.
Former CEO and Founder of Technology Company Charged in Investment Fraud SchemeRead the Press Release
The CEO and co-founder of Trustify Inc. (Trustify), a privately-held technology company founded in 2015 and based in Arlington, Virginia, was charged in an indictment unsealed today for his alleged role in a fraud scheme resulting in millions of dollars of losses to investors.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Daniel Boice, 41, of Alexandria, Virginia, was charged with five counts of wire fraud, one count of securities fraud, and two counts of money laundering.
The indictment alleges that, beginning in 2015, Boice fraudulently solicited investments in Trustify, a privately-held technology start-up company that connected customers with private investigators. Boice allegedly raised approximately $18.5 million from over 90 investors by, among other things, falsely overstating Trustify’s financial performance. The indictment also alleges that Boice made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Washington Field Office is investigating the case. The U.S. Securities and Exchange Commission provided assistance and is also filing a civil complaint against the defendant for related conduct. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Russell Carlberg of the Eastern District of Virginia are prosecuting the case. The department would also like to thank the Virginia State Corporation Commission for its assistance.
Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the Eastern District of Virginia at 703-299-3700 for more information.
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.
Felon Who Shot at Police During High Speed Chase Sentenced to a Decade in Federal PrisonRead the Press Release
A man who assaulted his girlfriend before leading police on a high-speed chase was sentenced today to ten years in federal prison.
Richard Dale Ogle, II, age 31, from Eden, North Carolina, received the prison term after a November 12, 2019 guilty plea to being a felon in possession of a firearm.
Evidence at the sentencing hearing showed Ogle was on parole after serving a prison term in North Carolina for assault with a deadly weapon which inflected serious injury. Ogle absconded from parole and moved to Iowa to live with his girlfriend. On March 16, 2019, Ogle held a gun to his girlfriend’s head and threatened to kill her. Police responded to the residence and were able to remove the girlfriend from the home. Ogle then left the residence in a vehicle, driving through the town of Cresco. When he was near the high school in Cresco, officers attempted to conduct a traffic stop of his car. Ogle refused to stop and led officers on a high-speed chase through Cresco and continuing into Winneshiek County. The chase took place over the course of fourteen miles and involved speeds in excess of 100 miles per hour. During the chase, Ogle shot his gun six times at police. Ogle eventually stopped his car and was taken into custody by law enforcement.
Ogle was sentenced in Cedar Rapids by United States District Court C.J. Williams. Ogle was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing, Judge Williams noted that, “defendant’s serious violent criminal history and high likelihood at reoffending” warranted the statutory maximum sentence.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Ogle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cresco Police Department, the Federal Bureau of Investigation, Howard County Sheriff’s Office, Winneshiek County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2041.
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Federal Inmate Sentenced to Nearly Five Years in Prison Assault CaseRead the Press Release
OKLAHOMA CITY – ROBERT GONZALEZ, 40, has been sentenced to 57 months in prison for an assault that resulted in serious bodily injury, announced U.S. Attorney Timothy J. Downing.
In September 2019, a federal grand jury indicted Gonzalez for the assault. The indictment alleged Gonzalez assaulted another inmate while serving a term of imprisonment at the Federal Correction Institution (FCI) in El Reno, Oklahoma. He pleaded guilty on October 28, 2019.
Court documents detail that, as a result of the assault, the victim inmate sustained fractures to his left orbit and nasal bone, damage to the retina, and lost consciousness. On Wednesday, July 22, 2020, U.S. District Judge Scott L. Palk sentenced Gonzalez to serve 57 months in prison, followed by three years of supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the assault.
Public records further indicate that Gonzalez was convicted in the Southern District of Texas for conspiracy to transport undocumented aliens. When this assault occurred, he was serving a term of imprisonment of 18 months in that case. He was previously scheduled to be released from the custody of the Federal Bureau of Prisons on September 20, 2019.
This case is the result of investigations by FCI El Reno Special Investigative Services and the Federal Bureau of Investigation Oklahoma City Field Office. Assistant United States Attorney Ashley L. Altshuler prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Federal Inmate Sentenced for Murdering CellmateRead the Press Release
BEAUMONT, Texas – A federal inmate has been sentenced for murdering his cellmate in a Federal Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Carroll Ellis Hayes, 40, of Mobile, AL, pleaded guilty on Jan. 27, 2020 to 2nd degree murder and was sentenced to 360 months in federal prison today by U.S. District Judge Marcia A. Crone today.
According to information presented in court, Hayes was serving a sentence for federal firearms violations and was in the Special Housing Unit (SHU) at the Federal Correctional Complex’s Medium Facility in Beaumont, Texas. On Feb. 9, 2018, another prisoner moved into the same cell as Hayes, and within an hour, a correctional officer discovered the new cellmate motionless on the floor—he had been beaten and strangled. Correctional officers attempted CPR before the cellmate was taken to a local hospital, where he was pronounced dead.
This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Michael Anderson.
Drug trafficking ring leader sentenced to 504 months in federal prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Reggie M. Balentine, 43, Kokomo, Ind., and Perry O. Jones, 45, Kokomo, Ind. were sentenced for their role in a large drug trafficking ring operating in Kokomo, Ind. Balentine was sentenced to 504 months in federal prison and Jones was sentenced to 260 months in federal prison.
“Shutting this drug trafficking organization down was a big victory for the law abiding citizens of Kokomo and the entire Hoosier state.” said Minkler. Investigations like this where drug dealers are arrested, held without bond, convicted at trial and sentenced to a lengthy federal prison sentence will restore some peace to the citizens of Kokomo.”
From the fall of 2017 to May 1, 2018, Drug Enforcement Administration (DEA) Indianapolis District Office, Internal Revenue Service (IRS) Criminal Investigation, and the Kokomo Police Department conducted an extensive investigation that resulted in the federal arrest of 15 Kokomo, Indiana residents including Balentine and Jones.
The investigation revealed that Balentine was coordinating drug shipments from co-conspirator, Pierre Riley, in Atlanta, GA for further distribution in the Kokomo area by Michael Jones, who was earlier sentenced to 35 years, as well as other co-conspirators, to include his roommate, Perry Jones. Balentine would utilize female couriers to travel between Kokomo and Georgia to deliver controlled substances to Balentine and deliver drug proceeds to his supplier Pierre Riley in Georgia. These couriers would travel by bus or vehicle to complete this task.
Throughout the conspiracy, many of the conspirators possessed firearms in relation to their drug trafficking activities, in order to protect themselves, their drugs, and their drug proceeds. Investigators were also able to arrest two hitmen that were hired by the organization to travel from Atlanta, Georgia to Kokomo to murder a Kokomo resident.
During the investigation, agents seized approximately 17 pounds of methamphetamine, 2 pounds of cocaine, 2 ounces of heroin, 122 grams of fentanyl, $37,000 in drug proceeds and 24 firearms.
In October 2019, Balentine plead guilty to the following federal offenses: conspiracy to possess with intent to distribute and to distribute controlled substances, distribution of 50 grams or more of methamphetamine, conspiracy to use interstate commerce in the commission of murder-for-hire, felon in possession of a firearm, attempted possession with intent to distribute 50 grams or more of methamphetamine, and possession with intent to distribute 50 grams or more of methamphetamine.
Jones also plead guilty to the following federal offenses: conspiracy to possess with intent to distribute and to distribute controlled substances, felon in possession of a firearm, and possession of a firearm as a previously convicted felon.
This case was the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Kokomo Police Department.
DEA Assistant Special Agent in Charge, Michael Gannon said, “The 42 year sentence for Mr. Balentine and the 21 year sentence of Mr. Jones is a big win for the fine citizens of Kokomo. Mr. Balentine headed a violent drug trafficking organization that utilized fear and violence to fuel the illicit distribution of methamphetamine, fentanyl, heroin, and cocaine in the Kokomo area. The DEA and their local, state, and federal partners are committed to targeting the most violent individuals who are wreaking havoc in our communities. Mr. Balentine was clearly that person.
According to Assistant United States Attorney Michelle Brady, who prosecuted this case for the government, Balentine must also serve five years of supervised release and Jones must serve ten years supervised release following their sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to target, investigate, and prosecute organizations that distribute methamphetamine and or heroin. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 3.1 and 3.3
Danbury Man Admits $1.1 Million Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY TEIXEIRA, 50, of Danbury, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez to a fraud offense related to $1.1 million embezzlement scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, for more than 25 years, Teixeira was employed by Joseph Merritt & Company (“JMC”), a Hartford-based printing company. Teixeira most recently oversaw the JMC branch located in Danbury. Between approximately January 2012 and February 2019, Teixeira defrauded JMC and its customers by presenting sales orders, or test sales orders, to customers as though they were actually invoices. Customers, believing they were paying JMC for the work, then delivered payments into accounts that Teixeira controlled. Teixeira also stole printing-related inventory from JMC inventory and sold it online, but manipulated invoices to deceive JMC’s systems into thinking the company had sold the inventory. The loss attributable to Teixeira through these schemes is approximately $1.1 million.
Teixeira pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 12, 2020.
Teixeira was arrested on a federal criminal complaint on December 12, 2019, and he was subsequently released on a $50,000 bond. He has been detained since June 1, 2020, after Judge Bryant determined that Teixeira had violated the conditions of his release and revoked his bond. An investigation revealed that Teixeira spent more than $48,000 while released on bond, in violation of court-imposed restrictions on his financial activity.
This investigation is being conducted by the Federal Bureau of Investigation and Danbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Amanda S. Oakes.
Convicted Sex Offender from Underhill Charged with Possessing Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ryan Beaulieu, 43, of Underhill, Vermont, was arrested today and charged with possession of child pornography. Beaulieu appeared today before the Honorable John M. Conroy, United States Magistrate Judge, and was ordered detained pending a detention hearing.
According to court records, the Vermont Internet Crimes Against Children Task Force (VT-ICAC) received information from a social media company and the Federal Bureau of Investigation that Beaulieu was distributing child pornography over the internet. This morning, Special Agents of the Department of Homeland Security and investigators with the Vermont Attorney General’s Office executed a search warrant at Beaulieu’s residence in Underhill, Vermont. In interviews with law enforcement, Beaulieu admitted to having accessed child pornography on his electronic devices. Investigators discovered numerous images and videos of child pornography on Beaulieu’s devices, including recordings of video-chat sessions in which Beaulieu coached prepubescent female children, directing them to display their genitalia on camera while he masturbated.
In 2013, Beaulieu was convicted of Lewd and Lascivious Conduct in Washington County District Court for conduct related to the sexual abuse of a child.
If convicted of the new charge, Beaulieu faces a maximum of ten years of imprisonment. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of the Department of Homeland Security, the Vermont Attorney General’s Office, Vermont Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Beaulieu was represented by the Office of the Federal Public Defender for the purposes of his initial appearance, and has not yet retained counsel.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Convicted Felon Sentenced to 15 Years in Federal Prison for Illegally Possessing Loaded Gun on South Side of ChicagoRead the Press Release
CHICAGO — A convicted felon has been sentenced to 15 years in federal prison for illegally possessing a loaded handgun in the Avalon Park neighborhood of Chicago.
ANTOINE JACKSON, 31, of Chicago, illegally possessed the loaded gun in the 8200 block of South Woodlawn Avenue on March 4, 2018. Jackson initially ran from Chicago Police officers who attempted to handcuff him, but he was apprehended a short time later. The semiautomatic handgun had a 16-round magazine and was capable of accepting an even larger capacity magazine.
Jackson was not legally allowed to possess a firearm after previously being convicted in the Circuit Court of Cook County for armed robbery and attempted armed robbery.
Jackson pleaded guilty earlier this year in the federal case to one count of illegal possession of a firearm by a felon. U.S. District Judge Joan Humphrey Lefkow imposed the 15-year sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Despite being a convicted felon, just three years after getting paroled on his state cases, Jackson was again in possession of a firearm on the streets of Chicago,” Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum. “Jackson’s criminal record and offense conduct demonstrate a continued disrespect for the law.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district.
Cleveland man indicted for robbery and evidence tampering during May 30 demonstrations in Downtown ClevelandRead the Press Release
Justin Herdman, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury sitting in Cleveland has returned a two-count indictment charging Tandre Buchanan, Jr., age 22, of Cleveland, with one count of interference with commerce by means of robbery and one count of tampering with evidence.
“This indictment is part of the Department of Justice’s commitment to identify, arrest and prosecute those who participated in the widespread looting and damaging of downtown Cleveland on May 30th,” said U.S. Attorney Justin Herdman. “As I’ve said all along in this process, where we have jurisdiction, federal charges will be brought against those who abused a constitutionally-protected assembly to commit acts of destruction and violence in the downtown Cleveland neighborhood.”
“The right to engage in peaceful protest is a cornerstone of our Republic and the United States Constitution,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue to work with our state and local partners and protect our citizen’s right to protest peacefully, but we will not let those who engaged in violence and destruction to go unchecked.”
According to the indictment, on or about May 30, 2020, the defendant did and aided and abetted others in the unlawful obstruction of commerce by means of robbery. The defendant is accused of obtaining property in the custody, possession, and presence of Colossal Cupcakes employees in downtown Cleveland. The defendant did so against the will of the employees by means of actual and threatened force, violence, and fear of immediate injury.
Furthermore, the defendant is alleged to have tampered with evidence by disposing of the clothing that he wore during the commission of these offenses. The indictment states that the defendant did so with the intention of impairing the use and availability of the object in an official proceeding.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
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 this indictment was conducted by the FBI with the help of the Cleveland Police Department. This case is being prosecuted by Assistant United States Attorney Scott C. Zarzycki.
California Man Charged with Unlawfully Importing MosaicRead the Press Release
A California man was charged today with one count of unlawfully affecting the entry of goods into the United States upon false classification as to quality and value.
Acting Assistant Attorney General Brian C. Rabbitt of the Criminal Division, U.S. Attorney Nicola T. Hanna for the Central District of California, Special Agent in Charge David Prince of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles and Special Agent in Charge Voviette D. Morgan of the FBI’s Los Angeles Field Office, Criminal Division made the announcement.
According to the indictment, Mohamad Yassin Alcharihi, 53, of Palmdale, California, claimed he was importing a shipment of items valued at $2,199, when in fact he was importing a mosaic worth more than that amount, and he misrepresented the quality of the mosaic, including what the mosaic depicted.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Art and Antiquity Investigations group and HSI’s Los Angeles Public Safety Group. The case was prosecuted by Trial Attorney Ann Marie Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Mark A. Williams and Matthew W. O’Brien of the Central District of California.
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.
Caldwell Man Sentenced to Prison on Federal Gun ChargesRead the Press Release
BOISE – Edgar Flores-Moreno, 36, of Caldwell, Idaho, was sentenced to 41 months in federal prison for unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced today. A federal grand jury indicted Flores-Moreno on August 14, 2019.
According to court records, in July 2019, agents arrested Flores-Moreno in Nampa, Idaho for being an alien unlawfully present in the United States after deportation. Subsequent investigation revealed that Flores-Moreno possessed eleven firearms at his residence in Caldwell. This included two semi-automatic rifles with high-capacity magazines. Flores-Moreno is prohibited from possessing firearms due to his status as an alien unlawfully present in the United States, as well as prior felony convictions for statutory rape and attempted illegal reentry into the United States after deportation.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Nampa Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit: https://www.justice.gov/projectguardian.
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Buffalo Man Sentenced for Using A Controlled Substance While Possessing FirearmRead 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 Keyon Miller, 27, of Buffalo, NY, who was convicted of being an unlawful user of a controlled substance in possession of a firearm, was sentenced to serve 24 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorneys Meghan E. Leydecker and Joseph M. Tripi, who handled the case, stated that prior to September 25, 2018, the defendant had posted videos of himself to social media holding what appears to be a chrome revolver. On September 25, 2018, the ATF and Buffalo Police Department executed a federal search warrant at 45 Easton Avenue in Buffalo. As law enforcement prepared to execute the search warrants, the Buffalo Police Swat team was utilized to make safe entry into the residence. At the rear of the house, investigators observed an object being thrown from a rear upper window. The object was identified as loaded .357 caliber revolver. As SWAT members made entry into the upper, they encountered co-defendant Kevin Miller and his mother. Defendant Keyon Miller was located coming out of the room from which the firearm was thrown out the window. DNA of both Keyon Miller, and a second co-defendant Kaylen Miller, was located on the revolver.
Keyon Miller admitted that he is an unlawful user of marijuana, having used marijuana for a period of years, such that he is prohibited from possessing firearms and ammunition.Kaylen Miller was previously convicted and sentenced. Kevin Miller was also previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
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Boston Man Charged with Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Boston man was charged yesterday with being a felon in possession of firearms and ammunition.
Tevin Abercrombie, 25, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition. Abercrombie is currently detained on a supervised release violation and will make an initial appearance in federal court in Boston at a later date.
According to the criminal complaint, on April 16, 2020, Abercrombie possessed a black Taurus 9mm pistol with an obliterated serial number, loaded with one round in the chamber and an additional seven rounds of 9mm ammunition in the magazine. In 2016, Abercrombie was convicted in federal court of being a felon in possession of a firearm and ammunition and conspiracy to distribute cocaine base, cocaine and heroin and sentenced to 60 months in prison. Abercrombie was on federal supervised release at the time of this offense.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney John Dawley of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Arizona Woman Arrested for Attempting to Provide Material Support to Al QaedaRead the Press Release
John C. Demers, Assistant Attorney General for National Security, Michael Bailey, the U.S. Attorney for the District of Arizona, Jill Sanborn, Assistant Director of the FBI’s Counterterrorism Division, and Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office, announced that on July 22, 2020, Jill Marie Jones was arrested for attempting to provide material support to al Qaeda, a designated foreign terrorist organization.
According to the criminal complaint, the defendant was in communication with two FBI undercover employees, one of whom she believed to be a member of al Qaeda. During her conversations with the purported al Qaeda member, Jones agreed to send the employee money to purchase scopes for rifles that would be used by al Qaeda to kill American soldiers. In May 2020, Jones gave the purported al Qaeda member $500 using a prepaid gift card.
The communications with the undercover employees also revealed Jones’ desire to travel overseas to assist al Qaeda. Thereafter, Jones purchased tickets to fly overseas to join al Qaeda in Afghanistan, but due to airport closures, she changed her flights to go to Turkey instead. Jones planned to then travel on to Syria. On July 22, 2020, Jones traveled to Phoenix Sky Harbor Airport in Arizona to board a flight to begin her travel to join al Qaeda. FBI agents arrested Jones after she checked in for her flight at the airport.
The prosecution is being handled by Lisa Jennis, Assistant U.S. Attorney in the District of Arizona and Katie Sweeten, Trial Attorney with the National Security Division’s Counterterrorism Section.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Antitrust Division Announces Agenda for Workshop on Competition in the Licensing of Public Performance Rights in the Music IndustryRead the Press Release
The Department of Justice has released a final agenda for the Antitrust Division’s July 28-29 public workshop on competition in the licensing of public performance rights in the music industry. The workshop will provide a venue for industry stakeholders to further weigh in on the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI) consent decrees and their implications for antitrust law enforcement and policy as music distribution continues to evolve through technological innovation.
“We are fortunate to hear from some of the greatest talents and some of the most experienced executives in the music industry at our workshop. I anticipate an interesting and productive discussion among our esteemed panelists,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “While the ASCAP and BMI consent decrees have governed licensing of performance rights for more than 75 years, the music industry has changed significantly in the meantime. We look forward to our panelists and speakers sharing their views on whether these decrees still offer songwriters and musicians the benefit of robust competition today.”
The released agenda includes remarks from Assistant Attorney General Makan Delrahim and distinguished panelists with a wide variety of perspectives on the ASCAP-BMI consent decrees. Special keynotes will be delivered by LeAnn Rimes, Pharrell and Jon Bon Jovi, who will share their experiences as songwriters within the current licensing system. The announced panel topics will include whether or not certain terms of the ASCAP and BMI consent decrees should be modified, and whether the decrees are inhibiting innovative business models that may hurt consumers or artists. The panels will include views from the performance rights organizations, songwriters, music publishers, music licensees, legal and economic experts, and other industry stakeholders.
The final agenda and more information on the event, including registration and instructions on accessing the webcast, can be found on the Competition in Licensing Music Public Performance Rights event page. The workshop is free and open to the public, and will be webcast from 12:30pm to 5:00pm on Tuesday July 28, and from 12:30pm to 4:00pm on Wednesday July 29. After the workshop concludes, a recording will be available on the Division’s website. Members of the press should email [email protected] to register.
The Department of Justice invited public comments from the public on these topics on June 5, 2019 and the comments can be found on the Antitrust Consent Decree Review Public Comments 2019 page.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division 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.
Public Workshop on Competition in Licensing Music Public Performance Rights
July 28-29, 2020
Workshop Agenda
July 28, 2020
12:30 p.m.Opening Remarks
Makan Delrahim, Assistant Attorney General for Antitrust, U.S. Department of Justice
12:40 p.m.Songwriter Keynote
LeAnn Rimes
12:55 p.m.Session 1: Remarks from Stakeholders on the Consent Decrees
David Israelite, President and CEO, National Music Publishers’ Association (NMPA)
Michelle Lewis, Executive Director, Songwriters of North America (SONA)
Elizabeth Matthews, CEO, American Society of Composers, Authors, and Publishers (ASCAP)
Michael O’Neill, President and CEO, Broadcast Music Inc. (BMI)
The Honorable Gordon Smith, President and CEO, National Association of Broadcasters (NAB)
DOJ Moderator: Karina Lubell, Assistant Chief, Competition Policy and Advocacy Section, Antitrust Division, U.S. Department of Justice
1:55 p.m.Session 2: Public Performance Licensing Alternatives
Panelists will discuss the use and viability of alternatives to blanket licenses, including direct, adjustable-fee, per-program, and per-segment licenses under the Decrees. They will also address the use and viability of source and through-to-the-audience licenses and whether those types of licenses should be limited or expanded. Finally, the panel will discuss whether these alternatives present a “genuine choice” to music users or whether the genuine choice provision of the Decrees should be modified.
Panelists
Jackie Brenneman, General Counsel, National Association of Theatre Owners
Ted Cohen, Managing Partner, TAG Strategic
David Kokakis, Chief Counsel, Universal Music Publishing Group
Janet McHugh, Executive Director, TV Music License Committee
Mike Steinberg, Executive Vice President of Creative and Licensing, BMI
DOJ Moderator: Yvette Tarlov, Assistant Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice
3:15 p.m.Songwriter Keynote
Pharrell
3:30 p.m.Session 3: Competition Between PROs for Songwriters and Publishers
The third session will discuss competition between the PROs for artists. Panelists will discuss the membership provisions of the ASCAP/BMI decrees, including provisions relating to eligibility to join a PRO, resignations, the maximum terms of membership agreements and music licenses, the use and transparency of licenses-in-effect, and member audit rights.
Panelists
Danielle Aguirre, Executive Vice President and General Counsel, NMPA
Jordan Bromley, Board Member, Music Artists Coalition
Bart Herbison, Executive Director, Nashville Songwriters Association International
Golnar Khosrowshahi, CEO, Reservoir Music Publishing
Clara Kim, Executive Vice President and General Counsel, Business and Legal Affairs, ASCAP
Jack Kugell, Board Member, SONA
DOJ Moderator: Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice
July 29, 2020
12:30 p.m.Opening Remarks
Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice
12:35 p.m.Songwriter Keynote
Jon Bon Jovi
12:50 p.m.Session 4: Licensing Music to Users
The fourth session will discuss the licensing of music to end-users. Panelists will discuss potential modifications to the Decrees including the “similarly situated” and interim fee provisions of the Decrees. The panel also will address if there is a need for more robust disclosure of ASCAP’s and BMI’s repertoires to licensees and potential impediments to such disclosure. Finally, the panel will consider whether the Decrees are effective or ineffective, create efficiencies or inefficiencies, or inhibit innovative business models.
Panelists
John Bodnovich, Executive Director, American Beverage Licensees
Peter Brodsky, General Counsel and Executive Vice President, Business Affairs, Sony/ATV Music Publishing
Rick Kaplan, General Counsel and Executive Vice President, Legal and Regulatory Affairs, NAB
Stuart Rosen, Senior Vice President and General Counsel, BMI
Tres Williams, Executive Vice President, Business Affairs, iHeartMedia, Inc.
DOJ Moderator: Ben Matelson, Trial Attorney, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice
2:15 p.m.Session 5: Economists’ Views and Wrap-up
The last session will provide a venue for economists to discuss the economic effects of the Decrees. Panelists will debate ASCAP’s and BMI’s market power and any constraints on that market power. Additionally, the panel will discuss whether the emergence of new PROs and new technologies, including streaming digital music and movie services, has made the Decrees obsolete.
Panelists
Dr. Adam B. Jaffe, Brandeis University
Dr. Kevin M. Murphy, University of Chicago
DOJ Moderator: Dr. Jeffrey Wilder, Deputy Assistant Attorney General for Economic Analysis, Antitrust Division, U.S. Department of Justice
3:40 p.m.Closing Remarks
Rene Augustine, Deputy Assistant Attorney General, Antitrust Division, U.S. Department of Justice
Acting U.S. Attorney Hails 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, today hailed the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (“ADA”), which was signed into law by President George H.W. Bush on July 26, 1990. The ADA is a transformative law that prohibits discrimination on the basis of disability in places of public accommodation, including all hotels, restaurants, retail stores, theaters, health care facilities, convention centers, parks, and places of recreation (Title III), in all activities of state and local governments (Title II), and in employment (Title I). The ADA empowers the Department of Justice to investigate, litigate, and resolve complaints of discrimination as well as authorizing the Government to conduct compliance reviews of covered entities.
Acting U.S. Attorney Audrey Strauss said: “Since the passage of the ADA, this Office has taken a leading role in bringing major New York City landmarks into compliance with the ADA to improve access for people with disabilities. As we mark the 30th anniversary of this landmark civil rights law this weekend, and notwithstanding the limitations imposed by COVID, we continue to investigate and litigate significant ADA cases.”
Since the passage of the ADA in 1990, the U.S. Attorney’s Office has brought numerous New York City institutions into compliance with the ADA, through court-approved consent decrees and voluntary compliance agreements. Through hundreds of ADA cases, the Office has required places of public accommodation to eliminate barriers to access, alter or amend policies or procedures, and agree to welcome service animals. In addition, the Office has required state and local governments to make public services and facilities more accessible to people with disabilities and compelled state and local government employers who discriminated against people with disabilities to remedy their conduct and compensate victims. Major accomplishments include:
- THE VESSEL: On December 20, 2019, the Office entered into a voluntary compliance agreement with Related Companies, the developer of Hudson Yards, to increase the accessibility of New York City’s newest public landmark, the Vessel. Because the Vessel is a multi-story, open air structure composed of a network of interconnected stairways, it is inaccessible to individuals with mobility impairments. The settlement requires Related to install a one-of-a-kind platform lift, allowing individuals with disabilities, including those who use wheelchairs, to traverse the stairways and platforms at the top two levels of the Vessel, all on a single platform lift.
- NYC SUBWAYS: On March 6, 2019, the Office prevailed in a motion for partial summary judgment against the Metropolitan Transportation Authority and New York City Transit for their failure to install elevators during the renovation of the Middletown Road subway station in the Bronx. In a landmark decision, the court ruled that the ADA required the MTA to install elevators during the renovation of the station, without regard to cost, unless it was technically infeasible to do so.
- NEW YORK STATE DIABETES GUIDANCE: On May 30, 2017, the Office announced that it had resolved complaints filed by parents of children with diabetes that recently developed guidelines from the New York State Education Department (“NYSED”) interfered with their children’s diabetes treatment while in school, in violation of the ADA. The guidelines prompted schools to reject certain types of orders issued by physicians treating children with diabetes because the orders authorized parents and guardians to be involved in the adjustment of their child’s diabetes medication administered by the school healthcare team. NYSED agreed to amend the guidelines and provided a model form for physicians to use to authorize the involvement of parents and guardians in adjustment decisions where appropriate.
- NEDERLANDER THEATERS: On January 29, 2014, the Office entered into a Consent Decree with the Nederlander Organization, Inc., which owns and operates nine landmarked Broadway theaters: the Brooks Atkinson, the Gershwin, the Lunt Fontanne, the Marquis, the Minskoff, the Nederlander, the Neil Simon, the Palace, and the Richard Rodgers. Under the Consent Decree, the Nederlander Organization agreed to make these theaters accessible to people with disabilities in compliance with the ADA by providing accessible seating, restrooms, and other facilities.
- NYC RESTAURANTS INITIATIVE: In 2013, the Office announced that it had entered into two Consent Decrees with major New York City restaurants to improve compliance with the ADA, particularly with regard to entrances, seating, and restroom facilities. The restaurants were Rosa Mexicano, on January 30, 2013, and Carmine’s, on November 12, 2013. These resolutions were reached as part of the Office’s Restaurants Initiative, which investigated whether NYC’s top 50 Zagat-rated restaurants, some of which had more than one location, complied with the ADA. As a result of the Restaurants Initiative, the Office entered into Consent Decrees with five restaurants, voluntary compliance agreements with 20 restaurants, and letters of resolution with 26 restaurants.
- LINCOLN CENTER: On June 28, 2012, the Office announced a Consent Decree with Avery Fisher Hall, under which that theater agreed to install additional wheelchair and companion seating, renovate restrooms, and remove barriers to access, among other things, to make the venue more accessible to people with disabilities. Similarly, on January 13, 2011, the Office announced a Consent Decree with the Metropolitan Opera, under which the Opera agreed to install additional wheelchair and companion seating, renovate restrooms, and remove barriers to access, among other things, to make the venue more accessible to people with disabilities.
- TIMES SQUARE HOTELS INITIATIVE: On July 26, 2010, the Office marked the 20th anniversary of the ADA by announcing that as a result of a compliance initiative, it had entered into a number of voluntary compliance agreements with Times Square hotels to increase the accessibility of hotel rooms and common areas. As a result of the Hotels Initiative, the Office entered into Consent Decrees with five hotels, and voluntary compliance agreements with 41 hotels.
- YANKEE STADIUM: On April 14, 2009, the Office announced that it had completed its review of the new Yankee Stadium, resulting in an agreement with the Yankees to provide over 500 wheelchair spaces and 500 companion seats, accessible entrances, ticket windows, bars, lounges, restrooms, and other amenities. The Office had joined a lawsuit against the old Yankee Stadium for being inaccessible to people with disabilities; a Consent Decree resolving that suit and bringing the Stadium into closer compliance with the ADA was entered in December 1999.
- MADISON SQUARE GARDEN: On November 5, 2007, the Office entered into a comprehensive Consent Decree with Madison Square Garden, under which the Garden agreed for the first time to provide seating for people with disabilities at a variety of seating areas in the Garden. The Garden further agreed to pay a $55,000 penalty for operating out of compliance with the ADA.
- APOLLO THEATER: On June 28, 2005, the Office entered into a Consent Decree with the historic Apollo Theater, under which the theater, for the first time in its storied history, agreed to provide seating locations for wheelchair users and renovate its entrances, bathrooms, and other amenities so that they would be fully accessible to people with disabilities.
- SHUBERT THEATERS: On September 25, 2003, the Office entered into a Consent Decree with the Shubert Organization, Inc., which owns and operates 16 landmarked Broadway theaters: the Ambassador, the Barrymore, the Belasco, the Booth, the Broadhurst, the Broadway, the Cort, the Golden, the Imperial, the Longacre, the Lyceum, the Music Box, the Plymouth, the Royale, the Shubert, and the Winter Garden. Under the Consent Decree, the Shubert Organization agreed to make these theaters accessible to people with disabilities in compliance with the ADA by providing accessible seating, restrooms, and other facilities.
- RADIO CITY MUSIC HALL: On February 11, 1999, the Office entered into a Consent Decree with Radio City Music Hall, requiring it to provide a wide range of accessibility improvements, including 50 wheelchair and companion seats, 240 assistive listening devices, and accessible restrooms, concession stands, and bathrooms.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov.The Office’s Civil Rights Unit handles complaints of noncompliance with the ADA. Members of the public with a complaint relating to ADA compliance may use the following link to submit a complaint: https://www.justice.gov/usao-sdny/civil-rights
- THE VESSEL: On December 20, 2019, the Office entered into a voluntary compliance agreement with Related Companies, the developer of Hudson Yards, to increase the accessibility of New York City’s newest public landmark, the Vessel. Because the Vessel is a multi-story, open air structure composed of a network of interconnected stairways, it is inaccessible to individuals with mobility impairments. The settlement requires Related to install a one-of-a-kind platform lift, allowing individuals with disabilities, including those who use wheelchairs, to traverse the stairways and platforms at the top two levels of the Vessel, all on a single platform lift.
18 Arrested, Facing Federal Charges After Weeknight Protests at Federal Courthouse in PortlandRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that 18 people have been arrested and are facing federal charges this week for their roles in recent weeknight protests at the Mark O. Hatfield U.S. Courthouse in Portland.
According to court documents, since May 26, 2020, protests in downtown Portland have been followed by nightly criminal activity including assaults on law enforcement officers, destruction of property, looting, arson, and vandalism. The Hatfield Federal Courthouse has been a nightly target of vandalism during evening protests and riots, sustaining extensive damage.
U.S. Marshals Service deputies and officers from the Federal Protective Service, Homeland Security Investigations, and U.S. Customs and Border Protection working to protect the courthouse have been subjected to nightly threats and assaults from demonstrators while performing their duties.
Five people have been charged for alleged criminal conduct during a protest beginning July 20, 2020 and continuing into the early morning hours of July 21, 2020. Jennifer Kristiansen, 37, is charged with assaulting a federal officer; Zachary Duffly, 45, is charged with creating a disturbance; Wyatt Ash-Milby, 18, is charged with trespassing on federal property; and Caleb Ehlers, 23, and Paul Furst, 22, are charged with failing to comply with a lawful order.
Seven people have been charged for alleged criminal conduct during a protest beginning July 21, 2020 and continuing into the early morning hours of July 22, 2020. Jerusalem Callahan, 24, is charged with willfully damaging government property; Joseph Ybarra, 21, is charged with arson; Marnie Sager, 27, and Ella Miller, 26, are charged failing to comply with a lawful order; and Taylor Lemons, 31; Giovanni Bondurant, 19; and Gabriel Houston, 22, are charged with assaulting federal officers.
Six people have been charged for alleged criminal conduct during a protest beginning July 22, 2020 and continuing into the early morning hours of July 23, 2020. Joseph Lagalo, 37; Baily Dreibelbis, 22; Nicholas Kloiber, 26; David Hazan, 24; Hailey Holden, 30; and Cameron Knuetson, age unknown, are charged with failing to comply with a lawful order.
All defendants are presumed to be local residents.
All 18 defendants have made their first appearances in federal court and were ordered released pending jury trials or other follow-up court proceedings.
These cases are being jointly investigated the U.S. Marshals Service and Federal Protective Service. They are being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Criminal complaints and informations are only accusations of a crime, and defendants are presumed innocent unless and until proven guilty.
Aftermath of fire lit near perimeter fencing of Hatfield Federal Courthouse Pile of debris thrown at federal law enforcement at Hatfield Federal Courthouse Water bottles used as projectiles piled near entrance to Hatfield Federal Courthouse Water bottles used as projectiles piled near entrance to Hatfield Federal Courthouse Water bottles used as projectiles piled near entrance to Hatfield Federal Courthouse
Thursday 23 July 2020
Watertown Man Sentenced to 70 Months in Federal Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ORLANDO MARTINEZ, also known as “Bolo,” 52, of Watertown, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 70 months of imprisonment, followed by five years of supervised release, for distributing heroin and fentanyl.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale. After Nestor Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The investigation revealed that Martinez purchased bulk quantities of heroin and fentanyl from a member of the organization who distributed narcotics from the Corner Mini market at 52 East Farm Road in Waterbury. Martinez then sold the drugs to his own customer base.
Sixteen individuals were charged as a result of this investigation.
Martinez and several of his codefendants were arrested on October 29, 2019. In association with the arrests, law enforcement officers executed five search warrants at locations in Waterbury, including the Bishop Street apartment and the Corner Mini Market, and seized approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.
Martinez has been detained since his arrest. On February 27, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute 100 grams or more of heroin and fentanyl.
Martinez’s criminal history includes five convictions for narcotics offenses, and he was on special parole with the state at the time of his federal arrest.
Sosa-Ortiz pleaded guilty and awaits sentencing.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Lauren Clark and Brendan Keefe.
Washington Tech Executive charged with COVID-Relief fraud and money launderingRead the Press Release
WASHINGTON – A Washington tech executive was taken into custody today and charged with fraudulently seeking over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, announced Acting Assistant Attorney General Brian C. Rabbitt at of the Justice Department’s Criminal Division and U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged by criminal complaint, unsealed today after he was taken into custody, in the Western District of Washington with one count of wire fraud and one count of money laundering. He is expected to make his initial appearance before U.S. Chief Magistrate Judge Brian A. Tsuchida at 2 p.m. PDT today.
The complaint alleges that Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. The complaint alleges that, in support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
The complaint also alleges that, in further support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
The complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Federal Deposit Insurance Corporation – Office of Inspector General. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
mohan_complaint.pdfWashington Tech Executive Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
A Washington tech executive was taken into custody today and charged with fraudulently seeking over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, announced Acting Assistant Attorney General Brian C. Rabbitt at of the Justice Department’s Criminal Division and U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged by criminal complaint, unsealed today after he was taken into custody, in the Western District of Washington with one count of wire fraud and one count of money laundering. He is expected to make his initial appearance before U.S. Chief Magistrate Judge Brian A. Tsuchida at 2 p.m. PDT today.
The complaint alleges that Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. The complaint alleges that, in support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
The complaint also alleges that, in further support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
The complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Federal Deposit Insurance Corporation – Office of Inspector General. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wagoner Woman Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jonie Lee Welsh, a/k/a Jonie Lee Welsch, age 36, of Wagoner, Oklahoma entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about May 22, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Adair County Sheriff’s Office, the United States Marshal Service Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States at the change of plea hearing.
Vice President of Investment Firm Arrested for Running Multimillion-Dollar Ponzi Scheme Targeting Afghanistan-Based BankRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Special Inspector General John F. Sopko, of the Special Inspector General for Afghanistan Reconstruction (“SIGAR”), and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that NAIM ISMAIL, 60, a native of Afghanistan and a United States citizen, was arrested Wednesday evening in Los Angeles in connection with his participation in various investment schemes that defrauded victims of over $15 million.
The case has been assigned to U.S. District Judge Analisa Torres. ISMAIL is expected to be presented today before United States Magistrate Judge Alicia G. Rosenberg of the Central District of California.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Naim Ismail defrauded investors of more than $15 million through false promises about how investors’ money would be invested and what kind of return they could expect on their investment. Now Ismail is in U.S. custody and facing serious federal charges.”
Special Inspector General John F. Sopko said: “Afghanistan is a country struggling to create strong financial institutions and a viable economy after decades of war. The last thing it needs is to have one of its banks victimized in a Ponzi scheme. This scheme also targeted many U.S. victims. I’m proud that SIGAR special agents and our partners at HSI, the FBI and the Southern District of New York are working hard to bring justice in this case.”
Special Agent-in-Charge Peter C. Fitzhugh said: “As alleged in the indictment which was unsealed today, Ismail defrauded individual and corporate victims out of approximately $15 million dollars. Investors were allegedly duped into investing large amounts of money for investment and real estate projects that did not exist. Instead of investing the money and delivering returns, Ismail allegedly engaged in a Ponzi s scheme to fund his own lavish lifestyle. The law enforcement partnerships under HSI New York’s El Dorado Task Force are integral in combatting complex financial frauds and it is with these continued partnerships that we are able to bring individuals like Ismail to justice, to hold him accountable for his criminal acts and seek restitution for the victims.”
According to the allegations in the Indictment unsealed today in Manhattan federal court,[1] and other publicly filed documents:
From February 2007 through July 2016, ISMAIL fraudulently induced individual and corporate victims – including the New York-based subsidiary of an Afghanistan-based bank – to loan large sums of money to entities operated by ISMAIL and others. ISMAIL did so by claiming that these funds would be used in a particular investment strategy as well as several real estate development projects. ISMAIL promised investors a generous fixed annual rate of return and promised to return the investors’ principal on a specified timeline. In fact, ISMAIL and his companies did not invest these funds as promised, nor did ISMAIL repay many of his victims. Instead, ISMAIL used investor funds to pay the so-called interest payments due to earlier investors in the scheme, as well as for his own personal expenses and investments.
During the course of the fraudulent scheme, ISMAIL deprived the scheme’s victims of over $15 million.
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ISMAIL, 60, most recently of Los Angeles, California, is charged with one count each of bank fraud, wire fraud affecting a financial institution, and conspiracy to commit bank and wire fraud. Each charge carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of SIGAR and HSI on this investigation. She also thanked the Federal Bureau of Investigation for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Jonathan E. Rebold are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
United States Files Complaint to Forfeit More Than $2.37 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit $2,372,793 associated with four companies, announced the Acting U.S. Attorney for the District of Columbia Michael R. Sherwin, Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office, and Steven Cagen, Special Agent in Charge of the HSI Denver Field Office.
The complaint alleges that the four companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The four companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (Velmur), which the Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (Dandong Zhicheng), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sale to purchase items for North Korea, including nuclear and missile components; and multiple cover branches of North Korea’s Foreign Trade bank, which the Treasury Department sanctioned for facilitating transactions on behalf of actors linked to its North Korea’s proliferation network.
“The Department of Justice has repeatedly disrupted North Korea’s illicit attempts to access the U.S. financial system,” said Assistant Attorney General for National Security John C. Demers. “We will continue to do so as long as the North Korean government maintains its destabilizing, dangerous WMD activities.”
“This complaint illuminates how a global money laundering network coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said Acting U.S. Attorney Sherwin. “This case demonstrates that we will use all tools in our Threat Finance Unit’s portfolio to target companies that harm U.S. national security, regardless of where they are doing business.”
“The FBI, along with our domestic and international partners, will continue to prioritize and dedicate the necessary resources to investigate and combat those who are assisting North Korea in evading sanctions by providing illegal access to the U.S. financial system, contrary to our national security interests,” said Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office.
“The discovery of this transnational criminal organization is the result of international law enforcement agencies working together in the interest of national security,” said Eric Balliet Deputy Special Agent in Charge, HSI Denver. “HSI will continue to leverage our unique international authority to protect the U.S. from companies who do business with North Korea.”
The complaint was filed on July 23, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks used the four companies to make and receive U.S. dollar payments to/from North Korean front companies.
The United Nations Panel of Experts reported that North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks adapt by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity. The complaint alleges activity by the four companies that tracks this paradigm.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Chicago Field Office and HSI’s Colorado Springs Office are investigating the case. Assistant U.S Attorneys Zia M. Faruqui and Brian P. Hudak, and National Security Division Trial Attorney David C. Recker are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick.
United States Files Complaint to Forfeit More Than $2.37 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
The United States has filed a complaint to forfeit $2,372,793, announced the Department of Justice.
The complaint alleges that four companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The four companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (Velmur), which the Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (Dandong Zhicheng), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sale to purchase items for North Korea, including nuclear and missile components; and multiple cover branches of North Korea’s Foreign Trade bank, which the Treasury Department sanctioned for facilitating transactions on behalf of actors linked to North Korea’s proliferation network.
“The Department of Justice has repeatedly disrupted North Korea’s illicit attempts to access the U.S. financial system,” said Assistant Attorney General for National Security John C. Demers. “We will continue to do so as long as the North Korean government maintains its destabilizing, dangerous WMD activities.”
“This complaint illuminates how a global money laundering network coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said Acting U.S. Attorney Sherwin. “This case demonstrates that we will use all tools in our Threat Finance Unit’s portfolio to target companies that harm U.S. national security, regardless of where they are doing business.”
“The FBI, along with our domestic and international partners, will continue to prioritize and dedicate the necessary resources to investigate and combat those who are assisting North Korea in evading sanctions by providing illegal access to the U.S. financial system, contrary to our national security interests,” said Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office.
“The discovery of this transnational criminal organization is the result of international law enforcement agencies working together in the interest of national security,” said Eric Balliet Deputy Special Agent in Charge, HSI Denver. “HSI will continue to leverage our unique international authority to protect the U.S. from companies who do business with North Korea.”
The complaint was filed on July 23, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks used the four companies to make and receive U.S. dollar payments to/from North Korean front companies.
The United Nations Panel of Experts reported that North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks adapt by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity. The complaint alleges activity by the four companies that tracks this paradigm.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Chicago Field Office and HSI’s Colorado Springs Office are investigating the case. Assistant U.S Attorneys Zia M. Faruqui and Brian P. Hudak, and National Security Division Trial Attorney David C. Recker are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick.
U.S. Attorney’s Office and FBI Team with AARP for Tele-Town Hall on COVID Scams Targeting SeniorsRead the Press Release
BOSTON – The U.S. Attorney’s Office and the Boston Division of the Federal Bureau of Investigation have partnered with AARP to educate senior citizens in Massachusetts about COVID-19 scams and other fraud targeting the aging population.
Through AARP’s Fraud Watch Network, approximately 5,600 Massachusetts seniors participated in the hour-long tele-town hall event yesterday with U.S. Attorney Andrew E. Lelling, federal prosecutors from the U.S. Attorney’s Office and the FBI. During the tele-town hall, federal officials discussed the types of schemes currently being reported, provided tips and tools on how to avoid becoming a victim and answered callers’ questions.
“As communities undertake efforts to stem the spread of COVID-19, scammers are using the pandemic as an opportunity to prey on public fear and take advantage of vulnerable members of our communities,” said United States Attorney Andrew E. Lelling. “Over recent months, we’ve seen a surge of scams including counterfeit medical supplies, bogus treatments and fake vaccines, and scams attempting to gain access to personal financial information. We are committed to finding and prosecuting those who perpetrate these scams as well as educating individuals about how to protect themselves from becoming victims of crime.”
“Scammers targeting seniors are a growing concern here in Massachusetts. Last year alone, more than $11.2 million in losses were reported to us by elderly victims, and we know for a fact these crimes are grossly underreported because of shame and embarrassment,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Fraudsters are using the uncertainty surrounding the COVID-19 pandemic to their advantage and that’s why we need to work together to put them out of business for good. Educating ourselves, as well as our aging family members and friends through tele-town halls like this one, is crucial to avoid becoming a victim.”
Throughout the current health crisis, federal investigators and prosecutors have continued to fulfill the Justice Department’s critical mission of protecting public safety. Federal authorities have prioritized the disruption, investigation and prosecution of crimes related to COVID-19, including fraud schemes, unapproved treatments and scams related to stimulus money and unemployment.
Massachusetts residents who believe they are victims of fraud or other criminal activity related to the pandemic should contact the U.S. Attorney’s Office at [email protected] or call 1-888-221-6023. Members of the public can also contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.
U.S. Attorney William M. McSwain Announces Election Fraud Charges Against Former U.S. Congressman and Philadelphia Political OperativeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that former U.S. Congressman Michael “Ozzie” Myers, 77, of Philadelphia, Pennsylvania, has been charged by Indictment with multiple counts, including conspiring to violate voting rights by fraudulently stuffing the ballot boxes for specific Democratic candidates in the 2014, 2015, and 2016 Pennsylvania primary elections, bribery of an election official, falsification of records, voting more than once in federal elections, and obstruction of justice. U.S. Attorney McSwain’s video statement providing additional details about this case is available on the Office website here: https://www.justice.gov/usao-edpa/video/us-attorney-william-m-mcswain-announces-indictment-former-congressman-election-fraud.
Specifically, Myers is alleged to have bribed the Judge of Elections for the 39th Ward, 36th Division in South Philadelphia, Domenick J. Demuro, in a fraudulent scheme over several years. Demuro, who was charged separately and pleaded guilty in May 2020, was responsible for overseeing the entire election process and all voter activities of his Division in accord with federal and state election laws.
The voting machines at each polling station, including in the 39th Ward, 36th Division, generate records in the form of a printed receipt documenting the use of each voting machine. This printed receipt, also known as the “results receipt,” shows the vote totals, and the Judge of Elections and other Election Board Officials at each polling place attest to the accuracy of machine results.
Myers is charged with bribing Demuro to illegally add votes for certain candidates of their mutual political party in primary elections. Some of these candidates were individuals running for judicial office whose campaigns had hired Myers, and others were candidates for various federal, state, and local elective offices that Myers favored for a variety of reasons. According to the Indictment, Myers would solicit payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay Demuro and others to tamper with election results.
After receiving payments ranging from between $300 to $5,000 per election from Myers, Demuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for Myers’ clients and preferred candidates, thereby diluting the value of ballots cast by actual voters. At Myers’ direction, Demuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate. Myers is also accused of directing Demuro to lie to investigators about the circumstances of the bribes and the ballot-stuffing scheme.
“Voting is the cornerstone of our democracy. If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that entire election is undermined,” said U.S. Attorney McSwain. “Votes are not things to be purchased and democracy is not for sale. If you are a political consultant, Election Official, or work with the polling places in any way, I urge you to do your job honestly and faithfully. That is what the public deserves, it is what democracy demands, and it is what my Office will enforce.”
“Free and fair elections are the hallmark of our system of government,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice has zero tolerance for corruption of the electoral process, and we will spare no effort in investigating and prosecuting those who would seek an unfair advantage at the polls by bribing state and local officials responsible for ensuring the fairness of our elections.”
“Transparent and fair elections are integral to the proper functioning of our democracy,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Those who seek to corrupt the vote threaten the public’s trust in the process and must be brought to justice. The FBI is determined to protect the integrity of our electoral system.”
“These charges, announced today by the Justice Department, clearly illustrate allegations of absolute disregard for the sanctity of our electoral system,” said Captain Leo D. Hannon Jr., Director of the Special Investigations Division of the Pennsylvania State Police. “As disheartening as this conduct may be for the voting public in Philadelphia and elsewhere, the citizens we serve should be reassured by the fearless and tireless work of the attorneys, agents, and troopers tasked with the continuation of this active investigation. Particularly in the current atmosphere of impending elections, the Pennsylvania State Police prioritize investigations into allegations of voter fraud and public corruption.”
If convicted, the defendant faces a maximum possible sentence of 90 years in prison and two million dollars in fines.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Eric L. Gibson and Richard C. Pilger, Director of Elections Crimes Branch, Criminal Division, Public Integrity Section, U.S. Department of Justice.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Indicted for Fentanyl Trafficking Conspiracy in Placer County and Other Narcotics OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Steven Lawrence Robinson, 34, of Granite Bay, and Nathaniel Opondo Hubbert, 39, of Grass Valley, charging them with a conspiracy to possess and distribute fentanyl and other narcotics offenses, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 2 and June 24, Robinson and Hubbert conspired to distribute fentanyl. Additionally, Robinson is charged with two counts of possession with intent to distribute fentanyl. Hubbert is also charged with possession with intent to distribute methamphetamine and possession with intent to distribute heroin and fentanyl. According to the criminal complaint, the defendants are connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.
This case is the product of an investigation by the Drug Enforcement Administration, the Lincoln Police Department, the Placer County District Attorney’s Office, the Placer County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of the conspiracy count or the counts of possession with intent to distribute fentanyl, or the count of possession with intent to distribute methamphetamine, the defendants face a minimum statutory penalty of five years in prison and a maximum of 40 years in prison and a $5 million fine. The count of possession with intent to distribute heroin and fentanyl carries a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Fresno County Residents Indicted for Firearms OffensesRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Fresno returned indictments in the following cases involving illegal firearms offenses.
Anthony Murillo, 37, of Fresno, was charged today with two counts of being a felon in possession of a firearm. According to court documents, on April 17, Murillo possessed a Kahr Arms 9 mm handgun, and on May 15, Murillo was found to be in possession of a Glock 17 handgun and a Mini Draco AK rifle. Among Murillo’s prior felony convictions, three are for being a felon in possession of a firearm. These prior felonies prohibit him from possessing a firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno County Sheriff’s Office and the Fresno Police Department.
Brandon Castillo, 36, of Laton, was charged today with one count of being a felon in possession of ammunition. According to court documents, on May 25, Castillo was found to be in possession of .223-caliber ammunition. Castillo has prior felony convictions for assault with a deadly weapon and for being a felon in possession, which prohibit him from possessing ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Selma Police Department. Assistant U.S. Attorney Stephanie M. Stokman is prosecuting both cases.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Two Associates of Monument Street Drug Trafficking Organizations in East Baltimore Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Delshawn Harvey, age 41, and Keizye Collins, age 23, both of Baltimore Maryland, pleaded guilty on July 21, 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, Christopher Redd, age 35, of Baltimore, yesterday to three years in federal prison 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, Harvey supplied drugs to the Montford and OTM drug trafficking organizations, among others; Collins was a drug distributor for the OTM drug trafficking organization; and Redd was a wholesale drug customer of members of 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 Harvey and his co-conspirators in January and May 2019, recovering more than two kilos of cocaine; drug paraphernalia, including digital scales, packaging materials, and money counters; more than $34,000 in cash, believed to be drug proceeds; and two semi-automatic pistols and ammunition, which Harvey admitted he possessed in connection to his drug trafficking activities. Harvey is prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Collins admitted that he distributed cocaine, fentanyl, and heroin to an undercover detective on at least four occasions, and provided the undercover detective his contact information for future drug transactions. In addition, in July 2018, Collins handed out free samples of heroin, referred to as “testers,” including to an undercover detective.
Throughout the course of their involvement, it was reasonably foreseeable to Harvey and Redd, 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 Collins that he or other members of the conspiracy would distribute at least 400 grams of fentanyl, as well as quantities of cocaine, cocaine base, and heroin.
Collins faces a maximum of 20 years in prison for the drug conspiracy and for possession with intent to distribute cocaine. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Harvey and the government have agreed that, if the Court accepts the plea agreement, Harvey will be sentenced to 10 years in federal prison. Judge Hollander has scheduled sentencing for Harvey and Collins on September 24, 2020.
Of the 25 defendants indicted in this case, six—including Redd, Harvey, and Collins—have pleaded guilty. The remaining defendants have trial dates in October 2020, or 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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Three Gang Members Charged Federally with Conspiracy to Commit Murder in Aid of Racketeering for Shooting in November that Killed FourRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against three members of the Mongolian Boys Society, charging them with conspiring to commit murder in aid of racketeering for acting as lookouts for a gang shooting that killed four, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fresno residents Pao Vang, 30; Jhovanny Delgado, 19; and Johnny Xiong, 25, were members of the Mongolian Boys Society (MBS), a criminal organization active in Fresno and Visalia.
According to the indictment, on Nov. 17, 2019, members and associates of the MBS held a meeting and conspired to commit a retaliatory murder. They selected a target residence, chose shooters, provided them with guns, and drove to the target location. Vang, Delgado, and Xiong, who attended the meeting, were designated as lookouts. They positioned themselves on street corners near the target residence to report the presence of law enforcement to the shooters or other gang members. Subsequently, the MBS shooters killed four individuals and injured at least six others.
Vang, Delgado, and Xiong were charged by criminal complaint on Jan. 2 and have been detained in federal custody since that date.
Additionally, on Jan. 2, the Fresno County District Attorney’s Office filed a related felony complaint in the Fresno County Superior Court charging Ger Lee, 27; Anthony Montes, 27; Porge Kue, 26; and Billy Xiong, 25, with special circumstances murder, conspiracy to commit murder, multiple counts of attempted murder, as well as enhancements for personally using and discharging firearms in the commission of the offenses and for committing the crimes for the benefit of, at the direction of, or in association with a criminal street gang.
“Federal and local law enforcement are committed to stopping violent criminal organizations like this one,” said U.S. Attorney Scott. “We will continue to work with our state and federal partners to keep our communities safe from gang violence.”
“In conjunction with the ongoing criminal case in the Fresno County Superior Court, today’s news that a federal grand jury returned an indictment is a testament to the hard work of the Fresno Police Department and that of our federal partners,” said Fresno County District Attorney Lisa Smittcamp. “Collaboratively, we will do all we can to hold to account the perpetrators of this horrific offense and to seek justice for the victims and survivors.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the U.S. Marshals Service, the Fresno Police, the Fresno County District Attorney’s Office with assistance from the Fresno County Sheriff’s Office and the Clovis Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Third Defendant Arrested on Federal Arson Charges for Alleged Burning of Salt Lake City Police Patrol CarRead the Press Release
SALT LAKE CITY – A federal complaint unsealed this week charges a third individual with one count of arson for allegedly setting fire to a Salt Lake City Police Department vehicle during May 30, 2020, riots in Salt Lake City.
Christopher Isidro Rojas, 28, of Salt Lake City was taken into custody Friday by members of the FBI’s Joint Terrorism Task Force (JTTF) as he left his apartment. Law enforcement officers executed a traffic stop after he got into a car.
The complaint alleges that on the afternoon of May 30, 2020, a peaceful protest in downtown Salt Lake City transitioned into acts of destruction and violence. Rioters near the Salt Lake City library overturned a Salt Lake City Police Department patrol car. Moments later, rioters set the patrol car on fire. Video footage from the event shows individuals using fire to damage and completely destroy the car. Federal authorities are charging the arson cases.
According to the complaint, video footage from the event shows an individual, later identified by police as Rojas. The complaint alleges Rojas used a cigarette lighter to help another man, holding white fabric, light the fabric on fire. Once the fabric begins to burn, the other man threw the burning fabric toward the overturned police car. According to the complaint, the burning cloth landed partially in the interior of the patrol car and partially on the street. Rojas is later recorded on video at the riot stating “I put the cop car on fire. It didn’t blow up.”
In the weeks after the riot, the Salt Lake City Police Department, according to the complaint, sought help from the public identifying the man who claimed to have “put the car on fire.” The FBI in Salt Lake City also offered a reward of up to $25,000 for information leading to the arrest and conviction of two arson suspects – up to $12,500 per suspect. Law enforcement officers received tips identifying Rojas.
Federal arson charges in the case are pending against Jackson Stuart Tamowski Patton, 26, and Latroi Devon Newbins, 28, both of Salt Lake City, who were charged earlier. Patton remains in custody. Although federal prosecutors requested Newbins be detained as well, he has been released from custody.
A complaint is not a finding of guilt. Individuals charged in a complaint are presumed innocent and entitled to a fair trial. The charge in the complaint has a potential sentence of 20 years in prison with a minimum-mandatory sentence of five years.
U.S. Attorney John W. Huber expressed appreciation for the coordinated effort local, state, and federal law enforcement agencies are providing as a part of the investigation. “Utah law enforcement has a strong history of working together. The investigation surrounding the burning of the patrol car is an excellent example of agencies playing to their strengths, giving us the tools we need to investigate and prosecute this criminal conduct.”
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecuting the case. Investigating agencies include members of the FBI’s JTTF, the Salt Lake City Police Department, the ATF and the Utah Department of Public Safety. U.S. Marshals, who are members of the JTTF, assisted with the arrest of Rojas.
Tennessee Woman Sentenced on Health Care Fraud ChargeRead the Press Release
ABINGDON, VIRGINIA. – A Strawberry Plains, Tennessee woman, who billed Virginia Medicaid for services that were not completed, was sentenced today in U.S. District Court in Abingdon to three years of probation, including three months of house arrest, and 200 hundred hours of community service, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Kathy Marie Patrick, 62, previously pleaded guilty to health care fraud. Patrick was also ordered to pay restitution to the Virginia Medicaid program in the amount of $30,968.
According to court documents, Patrick worked as a services facilitator for Virginia Medicaid from August 2012 through September 2019. Services facilitators are responsible for assisting individuals, who have chosen to receive care at home as an alternative to a nursing facility, by providing home visits, training, assessments, and other services on a regular basis.
Patrick admitted at her guilty plea hearing that on multiple occasions, she billed for training and home visits with Medicaid recipients that had not actually been completed. Some of these visits were alleged to have occurred while Patrick was working her other jobs at the Cumberland Mountain Community Services Board and, later, Dollywood.
The investigation of the case was conducted by the Office of the Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine Myatt is prosecuting the case for the United States.
Tarrant County Man Sentenced for Attempting to Coerce and Entice a ChildRead the Press Release
PLANO, Texas – A 48-year-old Saginaw, Texas man has been sentenced to federal prison for attempted child coercion and enticement in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox and FBI Special Agent in Charge Matthew J. DeSarno today.
Adam Rene Rodriguez was found guilty by a jury on Oct. 18, 2019, of attempted coercion and enticement of a minor and was sentenced to 210 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented at trial, on May 3, 2019, Rodriguez was arrested by members of the FBI Dallas Field Office and the Plano Police Department when he traveled to Plano to engage in sex acts with an individual he believed to be a 14-year old child.
During the 4-day trial, jurors heard that an undercover agent entered a sexually-oriented messaging group that was run by Rodriguez. Between April 10, 2019 and May 3, 2019, Rodriguez engaged in continuing messages with the undercover persona, even after being repeatedly advised of the persona's age. In the messages, Rodriguez (as username "Texasarod") continued to ask for photos of the child, sent the child sexually explicit material, and offered to "train" the child to engage in various sex acts. Evidence presented to the jury also included messages in which Rodriguez instructed the child on how to conceal her online activities and avoid detection by her parents. The exchanges continued until May 3, 2019. On that day, Rodriguez drove to a pre-arranged meeting place with condoms in order to engage in illegal sex acts with the child. Rodriguez testified on his own behalf, contending that he believed that he was communicating with an adult who was role playing or fantasizing about pretending to be a child.
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 Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
Sun Valley Man Indicted on Federal Narcotics Charges and Weapons Offenses, including Possession of Ghost Gun and Grenade LauncherRead the Press Release
LOS ANGELES – A San Fernando Valley man was arraigned this afternoon after being arrested Wednesday night on a series of weapons charges and a drug trafficking offense that alleges he possessed about 3.8 kilograms of heroin for sale.
Edmond Tumasyan, 35, of Sun Valley, pleaded not guilty to charges contained in an 11-count federal grand jury indictment that charges him with possession with intent to distribute heroin and the illegal possession of multiple firearms, including an AR-15-type rifle with no serial number (commonly referred to as a “ghost gun”), machine guns, handguns and silencers, many of them unregistered. The indictment also alleges that Tumasyan illegally possessed an unregistered 40mm grenade launcher.
Tumasyan was taken into custody Wednesday evening by members of the Eurasian Organized Crime Task Force without incident. At today’s arraignment, Tumasyan pleaded not guilty to the charges in the indictment and was ordered to stand trial on September 15.
The firearms seized from Tumasyan’s residence in 2019 were illegally possessed because some allegedly were used in furtherance of drug trafficking and because Tumasyan is a convicted felon, having been previously convicted of crimes involving burglary, false checks and narcotics.
The Task Force opened a federal case targeting Tumasyan in October 2019 following seizures made by the Glendale Police Department and the Los Angeles County Sheriff’s Department.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the 11 charges in the indictment, Tumasyan would face a statutory maximum penalty of life in federal prison.
The case against Tumasyan is the result of an ongoing investigation by the Eurasian Organized Crime Task Force, which is made up of special agents with the FBI, IRS Criminal Investigation and the Department of Health and Human Services’ Office of Inspector General, as well as officers with the Los Angeles County Sheriff’s Department, the Glendale Police Department, and the California Department of Health Care Services.
This case is being prosecuted by Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section.
Stamford Man Sentenced to Federal Prison for Possessing, Selling FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEVIN GENIS, 27, of Stamford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on May 28, 2019, law enforcement conducted a controlled purchase of a Century Arms International 7.62 caliber AK pistol and 10 rounds of ammunition from Genis for $900.
In November 2015, Genis was convicted in state court of three counts of possession with intent to sell narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Genis was on state probation at the time he illegally possessed and sold the firearm.
Genis has been detained since his arrest on June 27, 2019. On February 7, 2020, he pleaded guilty today one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Brendan Keefe.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
St. Charles Man Pleads Guilty and Sentenced to Sixteen Months of Time Served for Threatening U.S. Senator Josh HawleyRead the Press Release
St. Louis, Missouri –United States District Judge Ronnie L. White sentenced Jeremy L. Cawthon, 38, of St. Charles, to 16 months of time already served for threatening U.S. Senator Josh Hawley through Facebook communications. Cawthon has been confined in the St. Louis County Jail for the past 16 months after being criminally charged on April 5, 2019.
According to the plea agreement, in March 2019 and April 2019, Cawthon sent numerous threats via Facebook to Senator Hawley’s account which were received in Washington D.C. Federal agents were able to trace the communications to Cawthon’s residence in St. Charles, Missouri.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office.
Sixth Pharmaceutical Company Charged in Ongoing Criminal Antitrust InvestigationRead the Press Release
Taro Pharmaceuticals U.S.A., Inc. (Taro U.S.A.) has been charged for conspiring to fix prices, allocate customers, and rig bids for generic drugs, the Department of Justice announced today.
A two-count felony charge was filed today in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia, charging Taro U.S.A. with participating in two criminal antitrust conspiracies, each with a competing manufacturer of generic drugs and various executives.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charges against Taro U.S.A., under which the company agreed to pay a $205,653,218 criminal penalty and admitted that its sales affected by the charged conspiracies exceeded $500 million. Under the DPA, Taro U.S.A. has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. As part of the agreement, the parties will file a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the charges filed against the defendant.
“Taro Pharmaceuticals U.S.A.’s unlawful conspiracies to raise the prices of critical drugs robbed consumers at pharmacy counters across America,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Today’s resolution marks another important step toward ensuring that competitively priced generic drugs are available to the millions of American consumers who rely on them.”
“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to artificially increase prices, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”
“Today’s announcement demonstrates the FBI’s commitment to working with our partners to combat price-fixing and antitrust violations that ultimately harm the American public,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “We will continue to pursue these investigations to call attention to this criminal activity in order to ultimately ensure a competitive market and access to generic drugs.”
“The charges filed today in the U.S. Court for the Eastern District of Pennsylvania are indicative of my Office’s ongoing efforts to investigate and charge companies and executives who fix the prices of generic pharmaceuticals,” said U.S. Attorney McSwain. “We and our partners at the Antitrust Division and other federal law enforcement agencies remain heavily focused on price-fixing and illegal market allocation in generic drugs. These charges and the related deferred prosecution agreement, subject to approval by the court, are yet another important accomplishment in that area.”
In the deferred prosecution agreement, Taro U.S.A. admitted to participating in two charged conspiracies between 2013 and 2015. Specifically, Count One charges Taro U.S.A. for its role in a conspiracy with Sandoz Inc., former Taro U.S.A. Vice President of Sales and Marketing Ara Aprahamian, and other individuals, from at least as early as March 2013 and continuing until at least December 2015. Count Two charges Taro U.S.A. for its role in a second conspiracy with a generic drug company based in Pennsylvania and other individuals, from at least as early as May 2013 and continuing until at least December 2015. According to the charge and DPA, Taro U.S.A. and its co-conspirators agreed to fix prices, allocate customers, and rig bids for numerous generic drugs, including medications used to prevent and control seizures and treat bipolar disorder, pain and arthritis, and various skin conditions.
This is the tenth case to be filed in the Antitrust Division’s ongoing investigation into the generic pharmaceutical industry. To date, five of the six companies charged - including Taro U.S.A's co-conspirator Sandoz Inc. - have admitted to their roles in antitrust consipriacies and resolved through DPAs under which they've collectively agreed to pay over $426 million in criminal penalties. In addition, four executives have been charged for their roles in fixing prices of generic drugs. Former Taro U.S.A. executive Ara Aprahamian was indicted in February 2020 and is awaiting trial. The other three executives have pleaded guilty, including a former senior executive at Sandoz Inc.
The charged offense carries a statutory maximum penalty of a $100 million fine per count for corporations, and the maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
This case is the result of an ongoing federal antitrust investigation into price fixing, market allocation, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington and Philadelphia Field Offices, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on price fixing, market allocation, bid rigging, or other anticompetitive conduct related to the pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Shelton Woman Sentenced to Prison for Embezzling $260K from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BARBARA J. BUCHANAN, 60, of Shelton, was sentenced today by U.S. District Judge Janet Bond Arterton to 12 months and one day of imprisonment, followed by three years of supervised release, for embezzling more than $260,000 from her employer. Judge Arterton also ordered Buchanan to serve the first six months of supervised release in home confinement, and to perform 100 hours of community service.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, Buchanan was the payroll manager for a Connecticut company. Between approximately 2014 and September 2019, Buchanan made false entries and adjustments in the payroll system in order to wire company funds into her personal bank account. She also made false journal entries in the company’s tax records in an effort to hide her fraudulent activities. Through the scheme, Buchanan embezzled approximately $220,000 from the company.
Buchanan also used a company American Express card to make approximately $40,000 in personal purchases.
Buchanan paid restitution of $260,202.52 prior to sentencing.
On March 11, 2020, Buchanan pleaded guilty to one count of wire fraud.
Buchanan, who is released on a $100,000 bond, is required to report to prison on December 1, 2020.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Seven North Carolina Tax Preparers Charged with FraudRead the Press Release
WASHINGTON – A federal grand jury in Charlotte, North Carolina returned an indictment yesterday, charging three Charlotte tax preparers with conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and First Assistant U.S. Attorney William Stetzer for the Western District of North Carolina.
Four additional Charlotte tax preparers also named in yesterday’s indictment previously were charged with conspiring to defraud the United States in separate charging documents filed earlier this week.
According to the indictment, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte, North Carolina. From 2014 through at least 2019, Octave and his employees, including Vonyeda Carson, Wendia Courtois, Whitney Vargas-Medrano, Melissa Greene, Natisha Holloman, and Kimberly Joline allegedly conspired to falsify clients’ tax returns by claiming deductions, business losses, American Opportunity credits, education credits, and earned income tax credits that the clients did not incur, in order to fraudulently increase refunds to be paid by the IRS. The indictment further charges that during some of these years, Carson and Courtois filed false tax returns in their own names.
Octave, Carson, and Courtois were charged in yesterday’s indictment. Joline, Holloman, Greene, and Vargas-Medrano were named in yesterday’s indictment but were separately charged by criminal informations filed on July 20, 2020.
If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge. Octave, Carson, and Courtois additionally face a maximum sentence of three years in prison on each count of aiding and assisting in the preparation of a false tax return. Carson and Courtois also face a maximum sentence of three years in prison for filing their own false tax returns. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and First Assistant U.S. Attorney Stetzer commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Caryn Finley, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Charlotte Tax Return Preparers Are Charged for Conspiring to Defraud the IRSRead the Press Release
CHARLOTTE, N.C. – This week, the U.S. Attorney’s Office has charged seven Charlotte tax return preparers for conspiring to defraud the IRS.
Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join the U.S. Attorney’s Office in making today’s announcement.
A federal grand jury sitting in Charlotte returned a 20-count indictment yesterday, charging Joseph Octave, 47, Vonyeda Carson, 36, and Wendia Courtois, 44, all of Charlotte, with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. The indictment also identifies four other tax preparers who were charged earlier this week by criminal informations with conspiracy to defraud the United States. They are, Melissa Greene, 39, Natisha Holloman, 41, Kimberly Joline 30, and Whitney Vargas-Medrano, 31, also from Charlotte.
According to the filed charging documents, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. The indictment further alleges that Carson and Courtois filed false personal tax returns.
If convicted, the defendants face a maximum sentence of five years in prison on the conspiracy charge. Octave, Carson, and Courtois face a maximum of three years in prison on each of the counts alleging they aided and assisted in the preparation of false income tax returns. Carson and Courtois face a maximum sentence of three years on each of the counts alleging they signed and filed their own false tax returns.
The indictments and informations merely allege that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In making today’s announcement the U.S. Attorney’s Office and Principal Deputy Assistant General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation,
Assistant U.S. Attorney Caryn Finley and Trial Attorney Brian Flanagan of the Tax Division are prosecuting the case.
San Diego Laboratory Admits Fraudulent TRICARE Billing; Agrees to Pay $49 MillionRead the Press Release
Assistant U. S. Attorneys Valerie Chu and Paul Starita (619) 546-6750/7701
NEWS RELEASE SUMMARY – July 23, 2020
SAN DIEGO - San Diego-based clinical laboratory Progenity, Inc. admitted today that it submitted fraudulent bills to TRICARE, the Department of Defense health care benefit program that covers military service members and their dependents, and to the Federal Health Care Employee Benefits Program (FEHBP), for clinical tests that it knew were not covered or properly payable by either program.
In addition, Progenity, formerly known as Ascendant MDx, Inc., and previously headquartered in Carlsbad, California, admitted that it offered improper incentives to patients and doctors to use its laboratory services. To account for its fraud, Progenity has agreed to pay a total of $49 million in civil settlements in federal courts in the Southern District of California (SDCA) and the Southern District of New York (SDNY), as well as to multiple states.
Progenity offered noninvasive prenatal testing (“NIPT”) to pregnant women. NIPT refers to a category of genetic tests that screen for fetal chromosomal abnormalities, through analysis of fetal DNA present in a pregnant woman’s blood. This form of genetic testing, however, did not have FDA approval and was considered by TRICARE as a “laboratory-developed test.” As a result, TRICARE did not cover NIPT tests for its beneficiaries. Therefore, in order to get reimbursed by TRICARE, between April 1, 2013 and April 30, 2016, Progenity falsely and fraudulently used a medical billing code that TRICARE covered, but that Progenity knew did not accurately reflect that the NIPT test.
The U.S. Attorney’s Office for SDCA launched both a criminal probe into Progenity’s fraudulent billing practices and a civil investigation of the false claims Progenity had submitted to TRICARE and the FEHBP. Separately, SDNY initiated its own investigation into misconduct by Progenity relating to the improper incentives provided to patients and doctors to use its laboratory services. SDNY also coordinated with multiple state Attorneys General to investigate Progenity’s miscoding of NIPT to Medicaid programs in New York and several other states.
Progenity’s settlement agreement requires the company to pay $16.4 million to settle the SDCA civil matter, $19,449,316 to settle the SDNY civil matter, and $13,150,684 to settle the state civil allegations. The civil settlements were based on an ability-to-pay, payment-over-time basis, following an analysis of financial condition submissions made by Progenity. In light of Progenity’s remedial efforts, cooperation with the investigation, and payment of restitution to TRICARE and the FEHBP, the criminal investigation was resolved via a non-prosecution agreement, requiring that Progenity admit its misconduct and be subject to additional terms and conditions for up to a 24-month period.
U.S. Attorney Robert Brewer said, “San Diego is known for cutting-edge research and innovation, particularly in the biomedical sciences, that advances fields and improves people’s lives. But in the quest for advancement and profit, companies must still engage in honest and straightforward dealing, and provide the information that allows federal programs to determine whether to pay for new technologies.” Brewer commended the work of the attorneys from the criminal and civil divisions of the office and agents from the FBI and DCIS, who successfully conducted these parallel proceedings and brought to bear the full range of enforcement options to address Progenity’s misconduct.
“Fraudulent billing practices undermines the confidence in our healthcare system and in this case, cheated the TRICARE program serving the men, women and families of our military,” said Omer Meisel, Acting FBI Special Agent in Charge of the San Diego Field Office. “The FBI is committed to working with our partners and the public to stop fraud and ensure that healthcare dollars are used appropriately.”
“The settlement is a significant victory for the American public in that it returns ill-gotten proceeds to the U.S. Government and restores confidence in our healthcare system, including the U.S. military's TRICARE program,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “As in this case, any unprincipled actions by healthcare providers that tarnish and possibly corrupt the integrity of the TRICARE program will be reviewed and vigorously investigated by DCIS and its law enforcement partners.”
“Fraudulent billing is a theft from the FEHBP and the American taxpayer,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management OIG. “I congratulate our investigators and law enforcement partners on this successful outcome. The OPM OIG will always work hard to investigate suspected fraud and abuse of the FEHBP.”
“Protecting and providing top quality health care to service members, veterans and their families is our primary mission at TRICARE,” said Lt. Gen. Ronald Place, USA, director, Defense Health Agency. “We thank the investigators who uncovered this fraudulent billing by a company trying to profit from taking advantage of our men and women on the front lines. We will continue to work with law enforcement and other state and federal agencies to ensure health care providers are held accountable for participating in any fraudulent practices.”
This case was handled by Assistant U.S. Attorneys Valerie Chu, Paul Starita, and Beth Clukey on behalf of the Southern District of California.
DEFENDANT
Progenity, Inc.
San Diego, CA
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Services
Sacramento Federal Grand Jury Indicts Two from Redding and Vacaville for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Sacramento returned indictments in the following cases involving illegal firearms offenses.
Michael James White, 37, of Redding, was charged today with being a felon in possession of a firearm. According to court documents, White was arrested on two separate occasions following traffic stops. On Aug. 10, 2019, officers stopped White’s vehicle for a traffic violation and subsequently found a Megastar .45-caliber handgun; and on Nov. 5, 2019, officers again stopped White’s vehicle following a traffic violation and found a Smith & Wesson .357 Magnum tucked into White’s waistband. White has several prior felony convictions—including prior convictions for illegally possessing firearms—that prohibit him from possessing firearms.
This case is the product of an investigation by the Shasta County District Attorney’s Office, the Redding Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Carlos Biviescas, 28, of Vacaville, was charged on July 9 with one count of being a felon in possession of ammunition. According to court documents, Biviescas has two prior felony convictions and is prohibited from possessing ammunition.
This case is the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
These cases are 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 www.justice.gov/projectguardian.
Rutland Man Sentenced to 72 Months’ Imprisonment for Heroin and Cocaine Base Trafficking and Conspiring to Unlawfully Possess FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Terrance Chipp, 42, of Rutland was sentenced today by U.S. District Court Chief Judge Geoffrey Crawford to 72 months’ imprisonment and three years of supervised release, which follows the term of imprisonment.
Chipp previously pled guilty to possession with intent to distribute heroin and cocaine base, and conspiracy to unlawfully possess a firearm in furtherance of a drug trafficking offense. These offenses each carried a maximum of up to twenty years imprisonment.
U.S. Attorney Nolan stated that “the possession of firearms to protect drug trafficking activities greatly amplifies the already grave risk of harm to the community caused by heroin and crack cocaine distribution. The U.S. Attorney’s Office will continue to vigorously investigate and prosecute drug trafficking crimes involving firearms, working with our partners to deploy the necessary resources to the many hard-hit areas of southern Vermont.”
According to court records, on May 6, 2019, law enforcement executed a state search warrant at Chipp’s residence on Plain Street in Rutland. Inside a safe located in Chipp’s bedroom, law enforcement found about eight grams of heroin, two grams of cocaine base, a SCCY 9 mm pistol, and a loaded magazine. Inside Chipp’s dresser drawer, law enforcement found a Smith & Wesson .40 caliber pistol. Chipp intended to sell the seized controlled substances. In his plea agreement, Chipp admitted that he also traded drugs to another person for about 500 rounds of ammunition and that he “possessed firearms, in part, to protect his drug trafficking operations.”
The government argued in its sentencing memorandum that a long sentence was warranted because Chipp had begun trafficking drugs within a year after having served a three-year state sentence for heroin trafficking: “Three years of imprisonment did little to deter the defendant last time. This time, a sentence of substantially more than that is justified to protect the Rutland community from the defendant. . . . Specific deterrence and protecting the safety of the community are thus compelling factors here. The defendant’s high risk of recidivism is not theoretical but based on his long and frequent criminal history.”
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.prb .
This matter was investigated by the Vermont State Police Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigations (FBI), and the Rutland City Police Department. This case was prosecuted on behalf of the government by Assistant U.S. Attorney Joseph Perella. Chipp is represented by Federal Public Defender David McColgin of Burlington.