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Thursday 23 July 2020
Robbins Pleads Guilty to Securities Fraud, Money Laundering, Convinced Victims to Invest Just over $10 Million in SchemeRead the Press Release
SALT LAKE CITY – Thomas Robbins, 65, of Heber City pleaded guilty to securities fraud and money laundering in U.S. District Court in Salt Lake City Wednesday afternoon, admitting he induced victims to invest in a fraudulent foreign currency day-trading business.
According to the plea agreement, as a part of his efforts to lull investors into a false sense of security about their investments, Robbins told them he had achieved high returns in his foreign day-trading business. In fact, Robbins lost millions of dollars and diverted investor money for his personal use and benefit. He solicited approximately 66 investors to invest around $10,354,700.69 in his scheme.
“This case presents a classic example of a Utah securities fraudster. Lie upon lie, he created an investment opportunity that drew in dozens of investors who ended up losing more than $10 million to Mr. Robbins – who is a swindler rather than a foreign currency day trader. For all intents and purposes, the money is gone and cannot be recovered for victims,” U.S. Attorney John W. Huber said today.
“We have no shortage of fraudsters in Utah waiting to take our money. While my partners and I can deliver justice to the offenders, as we are doing in this case, the key is to avoid victimization in the first place. I encourage everyone to apply healthy skepticism and due diligence before investing their nest eggs,” Huber said.
"Thomas Robbins did not learn his lesson from his past offenses,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “Unfortunately, that’s often the reality in cases like these. Fraudsters are master manipulators and have high rates of recidivism. The FBI and our partners will continue to go after those who steal people’s hard-earned money. Public education and awareness is key. When looking to invest, we urge the public to do their due diligence before investing. Please do things like checking federal court records and the state's White Collar Crime Offender Registry online at utfraud.com.”
“You have heard it before – if something sounds too good to be true, it probably is, and that is exactly what Thomas Robbins promised, something too good to be true. Mr. Robbins defrauded investors with false promises and tales of trading algorithms, all to obtain their cash and property,” said IRS-Criminal Investigation Special Agent Tara Sullivan. “This wasn’t the first time Mr. Robbins has done this. You should always check on anybody who is asking for your money for an investment and make sure you have an independent third party like an accountant, lawyer or financial advisor look over the opportunity.”
Robbins admitted that he made fraudulent representations in his communication with investors in the scheme. The false representations include telling them he had spent 11 years developing an algorithm for foreign currency trading which allowed him to average returns of 5 percent to 30 percent per month; representing to them that he worked for a bank in Germany around 2005 where he was on contract to help the bank develop algorithms for their traders to use; that he used more than 13 different brokerage firms in different countries to facilitate his foreign currency trading program; assuring them that his trading program was compliant with the laws of the Commodities Futures Trading Commission; and promising that people who invested with him would never lose more than 5 percent of the net equity in their trading account due to “stop loss” measures.
He made the false representations knowing he was not providing a legitimate investment; that he had lost nearly all of the investor money; and he was using a portion of the investor money on personal living expenses; and no significant investment returns were generated.
Robbins was charged with securities fraud and money laundering in a Felony Information filed earlier this month. Sentencing in the case is set for Nov. 30, 2020, at 2 p.m. before U.S. District Judge Dee Benson. The potential maximum sentence for securities fraud is 20 years in prison and a fine of $250,000. Money laundering carries a potential 10-year sentence and a fine of $250,000.
This is Robbins’ second federal conviction for a fraud scheme. He was sentenced to 60 months in federal prison in June 2011 and ordered to pay $2,462,207 in restitution to victim investors after pleading guilty to conspiracy in another investment fraud scheme.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special agents of the FBI and IRS-Criminal Investigation are conducting the investigation.
Researchers Charged with Visa Fraud After Lying About Their Work for China’s People’s Liberation ArmyRead the Press Release
UPDATE
The government dismissed all charges alleged in the indictment described in the press release below.
Four individuals have recently been charged with visa fraud in connection with a scheme to lie about their status as members of the People’s Republic of China’s military forces, the People’s Liberation Army (PLA), while in the United States conducting research. Three of these individuals have been arrested and the Federal Bureau of Investigation (FBI) is seeking the fourth who is a fugitive from justice currently being harbored at the Chinese Consulate in San Francisco.
In addition to these arrests, the FBI has recently conducted additional interviews of visa holders suspected of having undeclared affiliation with the Chinese military in more than 25 American cities.
“These members of China’s People Liberation Army applied for research visas while hiding their true affiliation with the PLA,” said Assistant Attorney General for National Security John C. Demers. “This is another part of the Chinese Communist Party’s plan to take advantage of our open society and exploit academic institutions. We will continue to conduct this investigation together with the FBI.”
“The United States welcomes students, academics, and researchers from across the globe. Today’s announcement shows the extreme lengths to which the Chinese government has gone to infiltrate and exploit America’s benevolence," said John Brown, Executive Assistant Director of the FBI's National Security Branch. “In interviews with members of the Chinese People’s Liberation Army in over 25 cities across the U.S., the FBI uncovered a concerted effort to hide their true affiliation to take advantage of the United States and the American people.”
Each defendant has been charged with visa fraud, in violation of 18 U.S.C. § 1546(a). If convicted, each faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. The allegations against each are as follows:
Xin WANG
According to a complaint that was unsealed in the Northern District of California, on June 8, 2020 and court documents filed June 11, Wang entered the United States on March 26, 2019, after receiving a J1 non-immigrant visa in December of 2018. Wang’s visa application stated that the purpose of his visit was to conduct scientific research at the University of California, San Francisco (UCSF). Wang is alleged to have made fraudulent statements on this visa application. Specifically, Wang stated that he had served as an Associate Professor in Medicine in the People’s Liberation Army (PLA), from September 1, 2002 through September 1, 2016.
In reality, when interviewed by officers of Customs and Border Protection (CBP) at LAX on June 7, Wang provided information that he was, in fact, still currently a “Level 9” technician in the PLA, employed by a military university lab. CBP officers also obtained information that this roughly corresponded with the rank of Major. According to court documents, Wang was still employed by the PLA while he was studying in the United States, and he made false statements about his military service in his visa application in order to increase the likelihood that he would receive his J1 visa.
Also according to court documents, Wang provided information to CBP that he had been instructed by his supervisor, the director of his military university lab in the PRC, to observe the layout of the UCSF lab and bring back information on how to replicate it in China. Wang similarly told his supervising UCSF professor that he had duplicated some of the work of that professor at the lab in China. Some of the work of the UCSF lab was funded by grants from the United States Department of Health and Human Services, National Institutes of Health (NIH).
Wang was arrested on June 7, and had his initial appearance on June 8. A grand jury in the Northern District of California returned an indictment on June 22.
Juan TANG
According to court documents unsealed in the Eastern District of California on July 20, Tang, a researcher at the University of California at Davis, applied for a non-immigrant J1 visa on or about Oct. 28, 2019. The visa was issued in November 2019, and Tang entered the United States on or about Dec. 27, 2019. Tang is alleged to have made fraudulent statements on her visa application. Specifically, to the question, “Have you ever served in the military,” Tang responded “No.”
In fact, Tang is a uniformed officer of the PLA Air Force (PLAAF). As set forth in the Complaint, the FBI found a photograph of Tang in a military uniform and references to Tang’s employment at the Air Force Military Medical University, which has also been known as the Fourth Military Medical University. The FBI interviewed Tang on June 20. Although Tang denied having been a member of the military, an additional photograph of Tang in a different PLA military uniform was found on electronic media seized pursuant to a search warrant.
The FBI is seeking to arrest Tang pursuant to an Arrest Warrant and Complaint that were filed on June 26, and unsealed on July 20. Tang has sought refuge at the Chinese consulate in San Francisco, where she remains.
Chen SONG
The allegations describing the crime appear in an affidavit supporting the complaint filed on July 17 and unsealed in the Northern District of California on July 20. According to the affidavit, Song, 38, a Chinese national, applied for a J1 nonimmigrant visa in November 2018. She entered the United States on Dec. 23, 2018. In her visa application, in response to the question, “Have you ever served in the military,” Song stated that she had served in the Chinese military only from Sept. 1, through June 30, 2011. She further stated that her employer was “Xi Diaoyutai Hospital.” Song described herself in her visa application as a neurologist who was coming to the U.S. to conduct research at Stanford University related to brain disease.
The affidavit alleges that these were lies, that Song was a member of the PLA when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA. The affidavit identifies four research articles that she co-authored, which described her as affiliated with institutions subordinate to the PLA Air Force. Specifically, the articles list Song as affiliated with the Air Force General Hospital in Beijing and the Fourth Military Medical University. In addition, as of July 13, a Chinese health care website listed Song as an attending physician of the Department of Neurology of the PLA Air Force General Hospital, and included a photograph of Song wearing what appears to be a military uniform. Further, an article published in 2015 identifies Song as the doctor at the PLA Air Force hospital who performed the autopsy on the former chief physician of the MRI Department at the hospital.
Finally, according to the affidavit, a search of Song’s external hard drive, recovered pursuant to a court-authorized search warrant, found that, on June 21, Song had deleted a folder titled, in Chinese, “2018 Visiting School Important Information.” The search recovered deleted documents from this folder. The affidavit alleges that one of the recovered documents was a letter from Song to the Chinese Consulate in New York, explaining that she was extending her time in the United States for another year, and wrote that her stated employer, Beijing Xi Diaoyutai Hospital, is a false front, which is why she had obtained approval for her extension from the PLA Air Force and FMMU. The letter further allegedly explained that, as these Chinese military approval documents were classified, she could not transmit them online.
Song was arrested on July 18.
Kaikai ZHAO
According to a complaint filed in the Southern District of Indiana on July 17 and unsealed today, Zhao, a graduate student studying machine learning and artificial intelligence at Indiana University, applied for an F1 nonimmigrant visa in June 2018. In response to the question on the visa application, “Have you ever served in the military,” Zhao answered, “No.” As set forth in the Complaint, Zhao served in the National University of Defense Technology, the PLA’s premier institution for scientific research and education, which is directly subordinate to the PRC’s Central Military Commission. Zhao also attended the Aviation University of Air Force (AUAF), which is a Chinese military academy analogous to the U.S. Air Force Academy. AUAF students are active military service members who receive military training. In addition, the FBI located an online photograph of Zhao wearing a PLAAF uniform.
Zhao was arrested on July 18.
Remarks by United States Attorney William M. McSwain Regarding Election Fraud Charges Against Former U.S. Congressman and Philadelphia Political ConsultantRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain released a video on July 23, 2020, with his remarks concerning the criminal charges against former United States Congressman Michael “Ozzie” Myers. The video 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. Below are U.S. Attorney McSwain’s remarks, as prepared for delivery.
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Good morning. I am here to announce that the U.S. Attorney’s Office has unsealed criminal charges against Michael “Ozzie” Myers, a political consultant and former United States Congressman in Philadelphia. Myers has been charged with eight counts: one count of conspiracy to deprive individuals of their civil rights; one count of conspiring to illegally vote in a federal election; two counts of violating the Travel Act, which forbids the use of any facility in interstate commerce (here, a cell phone) with the intent to promote certain illegal activity (here, bribery); two counts of falsification of records; one count of voting more than once in a federal election; and one count of obstruction of justice.
This prosecution has been a team effort, and before I get into a more detailed description of the allegations, there are several people that I want to recognize and thank. First, from the FBI, Mike Driscoll, who is the Special Agent in Charge of the FBI’s Philadelphia Field Office, as well as Special Agent Carmen DiMario, who is the lead investigator on the case. I want to thank the Public Integrity Section at the U.S. Department of Justice in Washington, and specifically Section Chief Corey Amundson, Deputy Chief John Keller, and the Director of the Election Crimes Branch of the Section, Richard Pilger. I also want to thank Assistant U.S. Attorney Richard Barrett, who is the Chief of our Public Corruption Unit at the U.S. Attorney’s Office, and Assistant U.S. Attorney Eric Gibson, who is the lead prosecutor on the case. And finally, I would like to thank the Pennsylvania State Police for their assistance in this investigation.
Our election system relies on the honesty and the integrity of those involved in the electoral process. If Election Officials are corrupt, the system is corrupt, which creates opportunities for election fraud and for the counting of fake votes. According to the Indictment, the election system in Philadelphia’s 39th Ward, 36th Division was corrupted by Ozzie Myers and his co-conspirators.
Myers held himself out as an effective and successful political operative capable of ensuring his clients' electoral success. Myers allegedly did so by working in a number of ways to exert influence and control over Philadelphia’s 39th Ward. According to the Indictment, Myers distributed cash payments and supported family, friends, and allies for elective office in the 39th Ward, and installed Ward Leaders, Judges of Elections, and Democratic State Committee Persons. Through the alleged scheme, Myers advanced his political and financial interests through fraudulent and corrupt means by engaging in a “ballot stuffing” scheme that enabled him to take credit for the electoral success of his Philadelphia-based clients and preferred candidates. This secured his standing in local party politics that enabled him to control and influence the 39th Ward, and influence the distribution of local patronage jobs.
I would like to take you to the 39th Ward, 36th Division to show you where the action happened. I have two photographs that I am going to share at this point to provide some context about the polling place involved. First, there is a picture of the outside of the polling place, which is adjacent to a bocce ball court. Here is that photo. Then, we go inside the polling place, with a picture of the actual machines on an election day.
As charged, Myers would solicit monetary payments from his clients in the form of cash or checks as “consulting fees.” Myers would then take portions of these funds and make payments to Election Board Officials in return for the officials tampering with the election results. Specifically, Myers gave directions and paid money to Dominick J. Demuro, Judge of Elections in Philadelphia’s 39th Ward, who would illegally add votes for certain Democratic candidates on the primary ballots in 2014, 2015, and 2016. These candidates were individuals running for judicial office whose campaigns had hired Myers, as well as other candidates for various federal, state, and local elective offices who were preferred by Myers for a variety of reasons.
After receiving payments from Myers ranging between $300 to $5,000 per election, Demuro would add fraudulent votes - also known as “ringing up” votes – for Myers’ clients and preferred candidates, thereby diluting the ballots cast by actual voters. Myers would relay instructions to Demuro over a cellphone regarding which candidates Demuro should “ring up” on Election Day. Demuro would add the fraudulent votes by literally standing in the voting booth and voting over and over, as fast as he could, when he thought the coast was clear.
Demuro would then falsely certify the Voting Machine results from the 39th Ward, 36th Division as valid. Myers is also charged with obstruction of justice for instructing Demuro about how best to avoid detection concerning these fraudulent votes. Myers allegedly paid Demuro at specific times to avoid campaign financial reporting requirements, and told Demuro to lie about the reason for those payments if he were ever asked.
These fraudulent votes added up. In May 2014, DeMuro stuffed the ballot box with 27 fraudulent ballots during the primary election. In May 2015, DeMuro padded the ballot box with 40 fraudulent votes; in 2016, it was 46 fraudulent votes. These numbers may sound relatively small, but they made up a significant percentage of the total votes cast at the polling place. In 2014, 118 total ballots were reported in the 36th Division of the 39th Ward. That means that the fraudulent votes accounted for over 22% of the total voting in that Division in 2014. In 2015, the fraud accounted for over 15% of the votes in the Division; in 2016, the fraud accounted for over 17% of the votes. And when it comes to these local elections, these numbers are not insignificant. Local elections can often be decided by hundreds, or at times, dozens of votes. These fraudulent votes had the potential to alter a local election’s final result.
But at the end of the day, the specific number of votes does not really matter. 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. As President Lincoln once said, “Elections belong to the people.” The people. To each and every citizen, who has the right to cast one vote. Elections do not and will never belong to corrupt election officials who attempt to buy elections. Votes are not things to be purchased, and democracy is not for sale.
Demuro, who was charged earlier this year by my Office, has accepted responsibility for his crimes by pleading guilty to all charges and is currently awaiting sentencing. And this election fraud investigation is on-going. My Office is taking every possible step that we can to ensure the integrity of every election in the Eastern District of Pennsylvania in 2020. We will work day and night to make sure that every citizen’s civil rights are protected, whether that is through access to the polls or making every legitimate vote count. If you tamper with anyone’s right to vote or try to fix the results of any election in the Eastern District of Pennsylvania, my Office will hold you accountable. 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. Thank you.
Project Safe Neighborhoods: Two Felons Appear in Federal Court for Gun Crimes in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court this week for gun crimes committed in Charleston, according to United States Attorney Mike Stuart.
Christopher Reed, 29, of Ashland, Kentucky, was sentenced to 15 months in prison for being a felon in possession of a firearm. His prison term will be followed by three years of supervised release. Reed previously admitted that on February 3, 2019, he was operating a vehicle in Charleston when law enforcement officers stopped the vehicle for a traffic violation. A passenger in the vehicle was determined to have an outstanding arrest warrant from Detroit, Michigan for disarming a police officer. Officers searched the vehicle and discovered Reed had a loaded Jimenez Arms J.A. 25 pistol in the console of his vehicle. Reed admitted that he possessed the firearm and that he was a convicted felon. He had previously been convicted in 2013 in Detroit, Michigan for carrying a concealed weapon and in 2014 in Cabell County Circuit Court for conspiracy to possess with the intent to distribute a controlled substance. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Julie White and former Assistant United States Attorney Ryan Saunders handled the prosecution.
Jordan Kinney, 23, of Charleston, pled guilty to being a felon in possession of a firearm. Kinney admitted that on June 14, 2019, he was present at the Go-Mart on Washington Street West in Charleston, and possessed a loaded Taurus 9mm caliber handgun, which he used to shoot approximately six times at another individual. He then fled the location and discarded the handgun in the front yard of a residence a few blocks away. The following day officers with the Charleston Police Department responded to the residence and recovered the same handgun. Kinney was not allowed to possess the firearm because he had previously been convicted of robbery in the second degree. Kinney faces up to 10 years in prison when sentenced on October 19, 2020. The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nowles H. Heinrich is handling the prosecution.
These cases are part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00108 (Reed) and Case No. 2:19-cr-00291 (Kinney).
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Project Guardian: Two Men Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Two Project Guardian defendants appeared in federal court this week on gun charges, according to United States Attorney Mike Stuart.
Brashan Beverly, 32, of Dunbar, was sentenced to 37 months in prison for being a felon in possession of a firearm. Beverly previously admitted that on January 3, 2019, he possessed a SCCY, Model CPX-2, 9mm semi-automatic pistol in Tornado. At the time he possessed the firearm, he knew he was prohibited from possessing firearms because of a prior drug conviction. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Department and the Nitro Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Patrick Napier, 48, of Logan County, pled guilty to being a felon in possession of a firearm. Napier admitted that a United States Probation Officer who was conducting a home inspection found that he had a High Point .40 caliber rifle in his bedroom. At the time, Napier was still on supervised release as a result of his conviction for a federal drug crime. Napier faces up to 10 years in prison and three years of supervised release when he is sentenced on October 13, 2020. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Chris R. Arthur is handling the prosecution.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00066 (Beverly) and Case No. 2:20-cr-00065 (Napier).
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President’s Commission on Law Enforcement and the Administration of Justice Concludes with Final Hearings on Respect for Law Enforcement and Rule of LawRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice held its final hearings, receiving testimony on respect for law enforcement and the rule of law. The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.
On Tuesday, July 21, 2020, the commission heard from Michael Mukasey, the 81st U.S. Attorney General and a former U.S. District Court Judge, who provided an overview of the issues affecting respect for law enforcement and the rule of law. The first panel featured Rafael Mangual, Fellow & Deputy Director of Legal Policy for the Manhattan Institute; Gail Heriot, Professor of Law at the University of San Diego; and Jonathan Turley, J.B. & Maurice C. Shapiro Professor of Public Interest Law at the George Washington University Law School. The panelists spoke about various issues in law enforcement, such as race and technology, specifically biometrics. The hearing concluded with a panel featuring U.S. Attorneys William McSwain of the Eastern District of Pennsylvania; McGregor Scott of the Eastern District of California; and Nick Trutanich of the District of Nevada, where topics included experiences working in districts with progressive prosecutors.
On Wednesday, July 22, 2020, the commission heard first from Pinellas (Fla.) County Sheriff Robert Gualtieri, who offered an overview of the Marjory Stoneman Douglas High School public safety report. The following panel featured Kentucky Deputy Attorney General Barry Dunn; Arkansas Attorney General Leslie Rutledge; Stafford County (Va.) Commonwealth Attorney Eric Olsen; and Essex County (Mass.) District Attorney Jonathan Blodgett, who provided the commission with the state and local prosecutor’s perspective. Five members of law enforcement also provided testimony: Prince George’s County (Md.) Chief (retired) Hank Stawinski; Santa Barbara (Calif.) County Sheriff Bill Brown; National President of the Federal Law Enforcement Officers Association Lazaro “Larry” Cosme; Detroit Police Department Lieutenant Mark Young; and Houston Police Chief Art Acevedo. The hearing concluded with remarks from the 75th Attorney General of the United States Edwin Meese III, who shared his experiences working on the Lyndon B. Johnson’s historic law enforcement commission.
For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.
Audio recordings and transcripts of the hearings will be posted online once available.
Philadelphia man and two Berkeley County residents accused of firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Philadelphia man and two Berkeley County residents were indicted this week on firearms charges, U.S. Attorney Bill Powell announced.
Marcellos Carey Edens, also known as “Camo,” Justin Arthur Davis, and Kristal Rayne Montieth are charged with one count of “Conspiracy” involving the illegal purchase and transfer of firearms from Berkeley County to Pennsylvania in December 2019. According to the indictment, Montieth, 24, of Martinsburg, West Virginia, purchased firearms, making false statements on the ATF form, at the request of Edens, 35, of Philadelphia, Pennsylvania. Davis, 37, of Martinsburg, West Virginia, is accused of transporting the firearms across state lines to Edens in Philadelphia.
Montieth is also facing two count of “False Statement During Purchase of Firearm.”
Edens, Montieth, and Davis each face up to five years of incarceration and a fine of up to $250,000 for the conspiracy. Montieth also faces up to 10 years of incarceration and a fine of up to $250,000 for each of the false statement counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking the forfeiture of several firearms and ammunition connected to this case.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owners Sentenced to Prison for Conspiracy to Commit Health Care Fraud, Conspiracy to Commit Money Laundering and Tax Evasion in $200 Million Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Glenn Doyle Beach, 47, of Sumrall, Mississippi and Hope Thomley, 53, of Hattiesburg, Mississippi were sentenced today by U.S. District Judge Keith Starrett for conspiring to commit health care fraud and conspiring to commit money laundering and tax evasion. Judge Starrett also sentenced Howard “Randy” Thomley, 61, of Hattiesburg, Mississippi for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin, of the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation (IRS-CI), Special Agent in Charge Cynthia Bruce of Defense Criminal Investigative Services (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN).
Glenn Doyle Beach was sentenced to 156 months in federal prison followed by three years of supervised release; Hope Thomley was sentenced to 168 months in federal prison followed by three years of supervised release; and Randy Thomley was sentenced to 96 months in federal prison followed by three years of supervised release.
Beach was ordered to pay a monetary judgment of $9,109,872 along with restitution in the amount of $185,407,641.75. Hope Thomley was ordered to pay a monetary judgment of $29,249,018.51 along with restitution in the amount of $189,200,787.75. Randy Thomley was ordered to pay a monetary judgment of $3,651,173.19, along with the restitution in the amount of $3,651,173.19.
Beach and Thomley were both owners of Advantage Pharmacy in Hattiesburg, and Thomley also owned and operated a compound prescription distributor for Advantage Pharmacy. Beach and Hope Thomley were involved in a scheme to defraud health care benefit programs, including TRICARE, by dispensing, distributing, and marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients.
Through Advantage Pharmacy, Beach formulated and mass-produced compounded medications without regard to the individual needs of patients, but instead in order to increase reimbursements paid by the health care benefit programs. Hope Thomley had knowledge of Beach and other co-conspirators formulating the compounded prescriptions with the ultimate goal being to increase reimbursements. Hope Thomley benefited from that activity because her marketing company received nearly 50 percent of the reimbursements that Advantage Pharmacy obtained from compounded medications. Hope Thomley also obtained prescribers’ signatures on blank prescription forms and then filled out the forms in the names of her children and TRICARE beneficiaries that she and her husband, Randy Thomley, had recruited. From April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million.
Beach and Hope Thomley were also sentenced for their role in a money laundering and tax evasion scheme that was used to conceal the fraudulent proceeds of the compounded medications scheme and evade taxes.
Randy Thomley owned and operated a company called Advantage Marketing Professionals, which marketed medications for Advantage Pharmacy. For each prescription submitted to Advantage Pharmacy for compounded medications, he received a percentage of revenue. He recruited TRICARE beneficiaries and paid them a percentage of the revenue for each prescription in order to induce the beneficiaries to accept millions of dollars of compounded medications. Randy Thomley also filled out pre-signed prescriptions for the TRICARE beneficiaries, knowing that prescribers had not examined the beneficiaries.
The FBI, IRS-CI, DCIS and MBN investigated the case with assistance from U.S. Postal Service Office of Inspector General (OIG) and Office of Personnel Management OIG. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Omro Man Sentenced to Federal Prison for Possessing Two Firearms as Convicted Felon, Including a Loaded Handgun Obtained in Trade for MethamphetamineRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 22, 2020, U.S. District Judge William C. Griesbach sentenced Colin H. Coffin (age: 26) to five years’ imprisonment and three years’ supervised release after Coffin pled guilty to two counts of Possessing a Firearm as a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).
On September 8, 2019, Oshkosh Police Officers found Coffin passed out in his vehicle, which was parked illegally on a city street. Investigation revealed that Coffin was in possession of drug paraphernalia related to his methamphetamine use, and a 12-gauge shotgun with an obliterated serial number. Coffin had been previously convicted of multiple felonies and served time in state prison.
Then, on November 9, 2019—while on bail from the shotgun incident—Grand Chute Police Officers arrested Coffin for lying about his identity during a traffic stop. A search revealed that Coffin was carrying a loaded 9-mm handgun in his waistband. He admitted trading methamphetamine for the handgun, saying that he needed it for protection.
Possessing a firearm as a convicted felon is a felony punishable by up to ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
This case was investigated by the Oshkosh Police Department, Grand Chute Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact: Public Information Officer Kenneth Gales,
(414) 297-1700
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Omaha Woman Sentenced to 74 Months in Prison for Distributing MethRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Thursday, July 16, 2020, United States District Court Chief Judge John A. Jarvey sentenced Kimberly Ann Jacobsen, age 54, of Omaha, to 74 months in prison for distribution of methamphetamine. Jacobsen was ordered to serve a period of supervised release of four years to follow her prison term and pay a $100 special assessment to the Crime Victims' Fund. There is no parole in the federal system.
In October of 2019, Jacobsen sold 97 grams of methamphetamine in two undercover law enforcement operations. Jacobsen pleaded guilty to the offense on March 6, 2020. This is Jacobsen's second federal felony methamphetamine conviction.
This matter was investigated by the Council Bluffs Police Department, the Southwest Iowa Narcotics Task Force, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Nigerian Citizen Sentenced to Federal Prison for Stealing over $260,000 from Dozens of Victims, Including the ElderlyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Damilola Bamidele Isaac Samuel, 22, a Nigerian citizen, has been sentenced for using fraudulent ATM bank cards to steal $260,726.09 from over two dozen Regions Bank customers, including elderly victims.
On July 20, 2020, Chief U.S. District Judge S. Maurice Hicks Jr. ordered Samuel to serve 33 months in federal prison. Judge Hicks also sentenced Samuel, who pled guilty to conspiracy to commit bank fraud on December 10, 2019, to pay $276,790.39 in restitution. Following his release from prison, Damilola Samuel will be subject to deportation proceedings.
According to court documents, Samuel conspired with others to steal $260,726.09 from Regions Bank customers using fraudulently obtained ATM debit cards. Samuel carried out an account takeover scheme whereby he fraudulently set up accounts in legitimate bank customer’s names then transferred money from the customer’s legitimate account into those fraudulently created accounts. On multiple occasions, Samuel was captured on surveillance cameras utilizing ATM cards associated with the fraudulent checking accounts.
The U.S. Department of Homeland Security, U.S. Postal Inspection Service, and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors, including this case in the Western District of Louisiana.
The National Elder Fraud Hotline provides services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Menominee Man Indicted for Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury returned a one-count indictment against a man allegedly involved in an assault that resulted in injury to a tribal police officer. The indictment named Martin W. Penass a/k/a “Ap Hawpetoss” (age: 38) of Neopit, which is on the Menominee Indian Reservation.
The indictment charged Penass with Assault with a Dangerous Weapon in violation of 18 U.S.C. § 113(a)(3). If convicted, Penass faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about June 26, 2020, officers with the Menominee Tribal Police Department were investigating an incident involving Penass when Penass assaulted one of the officers with a knife, causing the officer to suffer cuts on his arm.
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact:
Public Information Officer Kenneth Gales, (414) 297-1700
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Man Who Sold Party Drugs He Bought on the Dark Web Sentenced to Federal PrisonRead the Press Release
A man who bought drugs on the dark web and sold them in eastern and central Iowa was sentenced July 21, 2020, to more than six years in federal prison.
Jack Arthur Stumberg, age 22, from Grundy Center, Iowa, received the prison term after a December 27, 2019 guilty plea to conspiring and possessing with intent to distribute LSD, MDMA, and psilocybin mushrooms.
Evidence at the sentencing showed that, between about 2016 and 2019, Stumberg ordered large quantities of the party drugs over the “dark web.” The drug packages were delivered to Stumberg through the mail, disguised to look like common household items. Stumberg then sold the drugs in various communities in Iowa. He also took the drugs to sell at various music festivals. The sentencing judge found that Stumberg recruited and directed the activities of an accomplice into the drug conspiracy.
Stumberg was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Stumberg was sentenced to 78 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Stumberg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the United States Postal Service and Grundy County Sheriff’s Office and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00090-CJW-MAR.
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Man Sentenced for Theft of Military PropertyRead the Press Release
RALEIGH, N.C. – A Louisiana man was sentenced today to 25 months in prison and ordered to pay $250,000 in restitution to the United States Army for theft of property belonging to the United States military, and for aggravated identity theft.
According to court documents, Bryan Allen, 35, used his position as property book officer for the 4th Battalion, 3rd Special Forces Group at Ft. Bragg, North Carolina, to steal items, and then cover the thefts by decreasing the electronic inventory, which reduced the number of those items expected to be located in a physical inventory. On at least one occasion, Allen forged the signature of another soldier to cover his theft. The stolen property included 43 enhanced night vision goggles, a U.S. military sensitive item made to military specifications, which require “demilitarization” and disposal/destruction in accordance with Department of Defense policies.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. Defense Criminal Investigative Service, U.S. Army Criminal Investigative Division, and the Department of Homeland Security, Investigations investigated the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-305-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Menomonee Falls, Wi, Doctor Sentenced for Illegal Opioid PrescribingRead the Press Release
United States Attorney Matthew D. Krueger announced today that Steven Kotsonis (38), a medical doctor of Menomonee Falls, Wisconsin, was sentenced in federal district court to 12 months and 1 day of confinement for unlawfully distributing Oxycodone outside of a professional medical practice and not for a legitimate medical purpose. The conviction resulted from Kotsonis executing a drug-trafficking conspiracy and pill mill operation, motivated by greed.
Over the course of approximately eight months, Kotsonis orchestrated and engaged in a conspiracy to illegally distribute narcotics by issuing illegitimate prescriptions, primarily for Oxycodone and other opioids, in exchange for cash. Kotsonis was the co-owner and operator of Compassionate Care Clinic (“CCC”). Kotsonis’s partner was his office manager and one of his patients. Even though Kotsonis’s partner was not a licensed health care provider and had no medical training, Kotsonis instructed her to write out the prescriptions and have Kotsonis sign them without Kotsonis actually seeing the patients. The investigation revealed that prescriptions were written for large quantities of Oxycodone, particularly Oxycodone 30mg (an average of 150-180 tablets per month). Individuals frequently obtained prescriptions at CCC without being examined or having their vitals (height, weight, blood pressure) taken during their visit. At least two CCC patients overdosed on Oxycodone and died.
“The opioid crisis continues to rage, with hundreds of overdoses occurring in Wisconsin this year,” said United States Attorney Krueger. “For many, the road to opioid addiction began with prescription drugs like the ones that Kotsonis dealt. To enrich himself, Kotsonis exploited individuals’ addictions and dealt drugs for cash. As indicated by the United States’ recommended sentence of four years in federal prison, Kotsonis deserves significant punishment. The Justice Department remains committed to holding accountable anyone who abuses their prescribing privileges.”
“Today’s sentencing demonstrates the value of local and federal law enforcement working alongside prosecutors to hold rogue practitioners accountable for their actions. Every day the men and women of DEA work to improve public health and safety and bring to justice those responsible for the illicit trade and diversion of DEA controlled substances,” remarked Drug Enforcement Administration Assistant Special Agent in Charge Paul E. Maxwell, Jr.
This case was prosecuted by Assistant United States Attorneys Matthew Jacobs and Laura S. Kwaterski.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lincoln County Felon Sentenced to 30 Months for Possessing Firearms & AmmunitionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that today Daniel E. Boldt, 46, Town of Corning, Wisconsin, pleaded guilty and was sentenced by U.S. District Judge William M. Conley to 30 months in federal prison for unlawfully possessing five firearms and ammunition, as a convicted felon.
On August 24, 2019, a citizen assisted a female who was walking on a county highway. She told the citizen that her boyfriend, Boldt, beat her up. The citizen drove the female to the hospital, where investigators interviewed her. Among other things, she said that Boldt was a felon and that he had guns.
Based on her account, law enforcement decided to arrest Boldt. Later that day, law enforcement stopped Boldt while he was driving. During the traffic stop Boldt raised a shotgun and did not comply with officers’ commands to drop it. As a result, a sheriff’s deputy shot Boldt in the shoulder. In addition to the shotgun, a 9mm handgun was also found in the vehicle.
Law enforcement subsequently executed a search warrant at Boldt’s residence and recovered a .32 caliber pistol, a .22 caliber rifle, a .22 caliber pistol and .22 caliber ammunition.
Boldt's prior felony convictions are a 1992 second degree sexual assault of a child under 16; a 1992 burglary of a building/dwelling; and a 1993 second degree sexual assault of a child under 16.
The charge against Boldt was the result of an investigation conducted by the Lincoln County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Lexington Woman Sentenced to 300 Months for Production of Child PornographyRead the Press Release
LEXINGTON, KY- A Lexington, Kentucky, woman, Paige Cagle, 26, was sentenced in federal court on Thursday to 300 months in prison, by U.S. District Judge Karen Caldwell, after previously admitting using a minor to engage in explicit conduct for the purpose of producing child pornography.
According to Cagle’s plea agreement, on March 1, 2019, officers were informed from a third party that he had received pornographic images from Cagle involving children. Cagle admitted to officers that on 4 to 5 occasions, she had sexually abused a minor child from the age of 9 months to approximately 1.5 years old. Cagle further admitted that she made two videos of the sexual abuse while in Joplin, Missouri, and three videos of the sexual abuse while in Clark County, Kentucky. Cagle admitted to sharing the videos she made with others via Dropbox. Cagle further admitted that she possessed additional images of child pornography, specifically images of female children ages 4 to 13 years of age, in her Dropbox account and admitted that she would give out her Dropbox password, so that others could upload images into her account.
Cagle pleaded guilty in January 2020.
“The defendant’s production of child pornography was particularly heinous, and the sentence imposed was well justified by the facts of this case,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.
Under federal law, Cagle must serve 85 percent of her prison sentence and upon release from prison will be under the supervision of the U.S. Probation Office for life.
United States Attorney Duncan; Jerry Templet, Special Agent in Charge for Homeland Security Investigations; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the guilty plea.
The investigation was directed by Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Lauren Tanner Bradley.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lexington Businessman Sentenced to 12 Months for Obstructing JusticeRead the Press Release
FRANKFORT, Ky. - A Versailles, Kentucky, man, Timothy Wayne Wellman, 66, was sentenced in federal court on Thursday, to 12 months and one day in federal prison, by U.S. District Judge Greg Van Tatenhove, after previously being convicted of 11 counts involving obstructing justice, aiding and abetting the obstruction of a federal grand jury, and aiding and abetting individuals in making false statements to the FBI.
According to testimony at trial, Wellman requested that multiple employees of CRM Companies (CRM) donate money to the campaigns of two city council members and then reimbursed them for their donation. He later asked the employees to give false information to the FBI, who was conducting an investigation into public corruption allegations, by encouraging the employees to lie about reasons for the reimbursement checks and, in some instances, asking them to create false documents (including ledgers and tax forms) to support their false stories.
Wellman was convicted in February 2020 after a five-day jury trial.
“A jury convicted the defendant of obstructing justice by counseling others to lie and create false documents, and hiding the truth from federal investigators and a federal grand jury,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Obstructing federal law enforcement and grand jury investigations undermines the foundation of our criminal justice system. We will continue to prioritize the investigation and prosecution of these important cases.”
Under federal law, Wellman must serve 85 percent of his prison sentence and upon his release will be under the supervision of the U.S. Probation Office for three years. In addition to his prison sentence, Wellman must also pay fine of $10,000.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge for the FBI, Louisville Field Office, jointly made the announcement.
The investigation was directed by the FBI. The United States was represented by Assistant U.S. Attorneys Erin Roth and Ken Taylor.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Leaders of Houston stash house ring head to prisonRead the Press Release
HOUSTON – Three men have been ordered to federal prison following their convictions for transporting and harboring illegal aliens in locked and boarded-up trailers in Houston, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) – Houston.
Albino Vargas-Hernandez, 49, a Mexican citizen who resided in Houston, and Rene Camacho, 47, Houston, pleaded guilty Dec. 12, 2019, to conspiracy to transport and harbor illegal aliens. A third man – Mexican national Hiram Lamarca-Gonzalez, 22, who also resided in Houston - entered his guilty plea Dec. 4, 2019.
Today, U.S. District Judge Alfred H. Bennett handed Camacho a 36-month sentence to be immediately followed by two years of supervised release. Vargas-Hernandez and Lamarca were previously sentenced to 42 and 36 months, respectively. At the hearings, the court heard evidence as to the extensive nature of the smuggling venture which included multiple drivers to smuggle aliens, money transmitters and smuggling ledgers documenting over $1.4 million in smuggling proceeds. While imposing the sentences, Judge Bennett noted this was a serious large-scale smuggling operation. Not U.S. citizens, Vargas and Lamarca are expected to face removal proceedings following their incarceration.
At Camacho’s sentencing, the court also received evidence about a residence in North Houston purchased using $130,000 in proceeds from the conspiracy. Judge Bennett ordered the residence forfeited to the United States. Previous forfeitures include $224,774.86 in cash and cashier’s checks.
“These three individuals operated a vast human smuggling network that preyed on the desperation of foreign nationals hoping to get into the United States,” said Dawson. “In just the last year, they are responsible for smuggling more than 1,000 people into the country. With today’s sentencing, we have sent a resounding message that HSI is committed to aggressively target human smugglers and smuggling organizations who seek to undermine our nation’s immigration laws and victimize people for profit.”.
The investigation revealed that from approximately July 9, 2018, through on or about Aug. 22, 2018, multiple suspected aliens had arrived and departed trailers in Houston, which were locked and had boards on the windows. On several occasions, Vargas left his residence, picked up illegal aliens from the stash house and delivered them to others.
Law enforcement obtained search warrants on the Vargas residence as well as the stash houses. During that time, authorities found Vargas and Camacho inside one of the trailers along with 12 undocumented aliens. The aliens identified Vargas and Camacho as leaders of the smuggling organization, in charge of documenting alien information in ledgers and collecting payments for the those smuggled into the country. They also recovered multiple firearms, “pollo” lists (alien smuggling ledgers keeping track of alien and payment information), money service wire receipts and approximately $224,000 in cash.
Authorities also arrested Lamarca for guarding the aliens at the stash house.
Vargas and Lamarca have been and will remain in custody. Camacho was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Richard Bennett prosecuted the case. AUSA Stephanie Bauman handled the forfeiture matters.
Keshena Man Indicted after Prohibited Possession of Firearms, Pointing Firearm at Tribal Police OfficerRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury returned a three-count indictment against a man allegedly involved in firearms offenses during an incident at a residence on the Menominee Indian Reservation. The indictment charged Lowell V. Reed (age: 44) of Keshena as follows:
COUNT
CHARGE
PENALTY
One
Felon in Possession of a Firearm, 18 USC §§ 922(g)(1) and 924(a)(2)
Up to 10 years in prison.
Two
Assault with a Dangerous Weapon, 18 USC §§ 113(a)(3) and 1153(a)
Up to 10 years in prison
Three
Brandishing a Firearm During a Crime of Violence, 18 USC § 924(c)
Mandatory minimum 7 consecutive years in prison, up to life in prison.
If convicted, Reed faces the imposition of fines and a term of supervised release in addition to the imprisonment listed above.
According to the indictment, on or about June 26, 2020, Reed possessed two firearms at a residence on the Menominee Indian Reservation, despite knowing he was prohibited from doing so. During an incident that day, he allegedly pointed a shotgun at a tribal police officer.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact:
Public Information Officer Kenneth Gales, (414) 297-1700
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Justice Department Settles Immigration-Related Discrimination Claims Against Law Firm and Legal Staffing AgencyRead the Press Release
The Department of Justice announced today that it reached a settlement with Arnold & Porter Kaye Scholer LLP (Arnold & Porter), a national law firm, and Law Resources Inc. (Law Resources), a Washington, D.C.-based legal staffing company, resolving claims that the companies engaged in hiring discrimination based on citizenship status.
The settlement resolves claims that Law Resources, at Arnold & Porter’s direction, screened out U.S. citizens with dual citizenship and non-U.S. citizens with work authorization from a document review project because of their citizenship status, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). The settlement also resolves claims that Law Resources retaliated against an affected worker when she objected to the citizenship status restriction.
“The United States of America is the land of opportunity, and the United States government remains committed fully to the fundamental principle that in this country, all people authorized by law to work should be able to pursue happiness by earning a living without suffering the indignity of discrimination because of where they came from. Our law protects this ideal in many ways, including by prohibiting unlawful citizenship status restrictions in hiring,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Law Resources and Arnold & Porter to ensure their hiring procedures fully comply with the Immigration and Nationality Act’s prohibition against citizenship status discrimination in employment.”
The department began its investigation after a U.S. citizen with dual citizenship filed a discrimination complaint against Law Resources, which led the department to open an independent investigation of Arnold & Porter.
Under the INA’s anti-discrimination provision, it is generally unlawful for employers to discriminate in hiring because of citizenship status unless required by a law or government contract. The department determined that neither Arnold & Porter nor Law Resources had a legal basis for the citizenship hiring restrictions. The INA’s anti-discrimination provision also prohibits employers from retaliating against workers because they opposed unlawful employer conduct or conduct that they reasonably believed was unlawful discrimination.
The investigations concluded that Arnold & Porter and Law Resources implemented a policy of excluding dual citizens and work-authorized non-U.S. citizens when recruiting and hiring temporary employees to staff an Arnold & Porter document review project in the fall of 2018. In its investigation, the department found that Arnold & Porter improperly interpreted the requirements of the International Traffic in Arms Regulations. The investigations also concluded that after the complainant objected to the citizenship status restriction, Law Resources separately retaliated against her by placing her on a list of people not to be hired in the future.
Under the terms of the settlement agreement, Arnold & Porter and Law Resources will pay a civil penalty of $56,500 for the citizenship status discrimination claims. Law Resources will separately pay an additional civil penalty of $3,000 and offer $11,875 in back pay to the affected worker to resolve the retaliation claim. The companies will jointly offer a $55,000 back-pay fund to other affected workers, train relevant employees about the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring for two years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. Members of the public can also report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Reaches Settlement with Bank of America to Resolve Claims of Disability Discrimination and Compensate VictimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York today filed a civil complaint and proposed settlement agreement to resolve claims that Bank of America, N.A. (Bank) engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act. The settlement agreement is subject to approval by the federal district court.
The department alleges in its complaint that for several years beginning in January 2010, the Bank maintained a policy of denying mortgage and home equity loans to adults with disabilities who were under legal guardianships or conservatorships. The Bank changed this policy in 2016 for mortgage loans and in 2017 for home equity loans.
“No one in this free country should be denied access to the American dream merely because of a disability. The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” said Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York. “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships. The terms of the settlement require the Bank to pay $4,000 per loan to eligible loan applicants who were affected by the Bank’s prior discriminatory policies, and we anticipate that the payments will total approximately $300,000. The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policies and train its employees on the new policies. In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Lending discrimination can be reported to the Civil Rights Division at https://civilrights.justice.gov.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.
In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.
In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jacksonville Man Indicted for Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Richard Earl Jenkins, Jr. (43, Jacksonville) with three counts of production of child pornography. If convicted, Jenkins faces a minimum mandatory term of 15 years, and up to 30 years, in federal prison for each count.
According to the indictment, between October 2015 and March 2019, Jenkins produced child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Internal Revenue Service Wrapped up the 'Dirty Dozen' List of Tax Scams for 2020; IRS Criminal Investigation and U.S. Attorney's Office Urge Taxpayers to Watch Out for These Tax ScamsRead the Press Release
The Internal Revenue Service wrapped up its annual ‘Dirty Dozen’ list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of Missouri urge taxpayers to be vigilant to these tax scams.
This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey.
“Fraud schemes harm everyone, especially those which defraud the IRS and members of our community,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “As we stand ready to investigate anyone who would put a taxpayer at risk for a quick profit, we urge everyone to watch out for these tax scams all the time.”
Tax scams tend to rise during tax season or during times of crisis. “This years’ list of tax scams should serve as a stark reminder to everyone to be vigilant to these threats during the current pandemic and its aftermath,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri. “Please safeguard your personal and financial information, and refrain from engaging potential scammers online or on the phone.”
Taxpayers are encouraged to review the ‘Dirty Dozen’ list in a special section on IRS.gov and be on the lookout for these scams throughout the year.
For official information year round, taxpayers can visit IRS.gov
Indianapolis check scam leader sentenced to 134 monthsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Frank Powell a/k/a “Bread”, 29, Indianapolis, Ind., was sentenced to 134 months in federal prison for orchestrating a large-scale fraud ring, bank fraud, and aggravated identity theft.
“Mr. Powell’s career of lies, deceit and fraud are over,” said Minkler. “Nothing says that louder than the sound of a federal prison door slamming shut on a 12 year sentence. This prosecution should remind those out there who defraud local businesses and banks – particularly those with lengthy criminal histories of theft, fraud, and deception – that they will face real consequences.”
From 2017 through April 2018, Powell and others presented and used fraudulent checks at Indianapolis Kroger stores and in at least 12 other states, to purchase gift cards and merchandise. Powell recruited and trained over 20 “runners” to cash checks at Kroger stores nationwide, including co-conspirators Javonte Wright, Anthony Duerson, and Antionne Brewster.
Powell printed the fraudulent checks and distributed them to the “runners”, and received a cut of the profits. The scope of this retail scheme was far-reaching, touching on at least 12 states with more than 5,000 fraudulent checks, resulting in losses exceeding $300,000.
In addition to the retail scheme, Powell attempted to defraud a local bank and car dealership when he tried to obtain financing to purchase a Cadillac Escalade using the identity of another person. Without the knowledge or authorization of the victim, Powell used a fraudulent Illinois driver’s license along with the name, address and social security number of the victim during the loan application process, which was ultimately stopped by the dealership.
Co-conspirators Wright and Duerson were previously sentenced to 30 months and 24 months respectively. Co-conspirator Brewster has not yet been sentenced.
This case was investigated by the Federal Bureau of Investigation, Fishers Police Department, Hamilton County Prosecutor’s Office, Carmel Police Department, Johnson County Sheriff’s Department, Indianapolis Metropolitan Police Department, U.S. Postal Inspection Service, and Kroger’s Organized Retail Crime Investigators, Central Division.
"This sentence should send a clear message to anyone contemplating financial fraud, or any criminal activity, that the FBI will aggressively investigate those committing illegal acts and bring those activities to a grinding halt,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “It also highlights the strong relationships we have with our law enforcement partners in pursuit of those who take advantage of others through their illegal and criminal behavior.”
Kroger praised its lead investigator for his “tenacious efforts” to help stop this group. Spokesman Eric Halvorson said, “Kroger is pleased with the outcome of the case and appreciates the hard work of law enforcement officers and prosecutors. Their diligence in combatting fraud and theft is an important strategy to help keep prices low for our customers.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Powell must also serve five years of supervised release following his 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 partner with federal and local law enforcement agencies to prosecute complex and large-scale fraud schemes that undermine faith in the markets, as well as to prosecute sophisticated identity fraud organizations. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 4.5 and 5.1)
Hattiesburg Man Pleads Guilty under Project EJECT to Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Amos Blanks, 40, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst, Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (“DEA”), and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On February 11, 2019, Blanks distributed approximately 224 grams of methamphetamine to another drug dealer, who then sold the drugs to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 98% pure.
Blanks was indicted for this offense on January 15, 2020. He will be sentenced by Judge Starrett on November 18, 2020 at 9:30 a.m.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Harrah Man Indicted for Two Murders That Occurred Within the External Boundaries of the Yakama NationRead the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury returned an Indictment on July 21, 2020, charging Edward Charles Robinson, Jr. with two counts of first degree murder, and one count of assault with a dangerous weapon. FBI agents arrested Robinson today and the United States will seek his detention pending a trial.
According to allegations in the Indictment, Robinson stabbed two people to death, and attacked a third person with a knife. The crimes occurred within the external boundaries of the Yakama Nation. As to each count of first degree murder, if convicted, Robinson faces a mandatory minimum sentence of life imprisonment, a fine of up to $250,000, a special assessment of $100.00, and restitution obligations. As to the assault with a dangerous weapon, if convicted, Robinson faces a maximum penalty of up to ten years imprisonment, a fine of up to $250,000, and no more than three years supervised release, a special penalty assessment of $100.00, and restitution obligations.
United States Attorney William D. Hyslop said, “Violent crime occurring within the external boundaries of the Yakama Nation is exceedingly concerning. The tragic and horrific death of the two residents here is intolerable. We will prosecute Mr. Robinson for his alleged responsibility and we will seek justice for the victims’ families and their loved ones.”
FBI Assistant Special Agent in Charge Mark Nichols said, “The details of this case can only be described as senseless and disturbing. While the prosecution of this individual will not bring back the victims, it will hopefully provide some level of comfort for the families and the community as a whole.”
The charges contained in the Indictment are merely allegations. Robinson is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.
The charges contained in the Indictment are the result of an investigation by the Federal Bureau of Investigation, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, Yakima County Emergency Management, and the Washington State Patrol. The case is being prosecuted by Richard Barker and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Harlan Man Sentenced to Prison for Drug User in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – United States Attorney Marc Krickbaum announced on Tuesday, July 14, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Blake Edward Cooper, age 51, of Harlan, to 60 months in prison after he pleaded guilty to drug user in possession of a firearm. Cooper was ordered to serve a period of supervised release of three years to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On July 29, 2019, the Shelby County Sheriff’s Office was advised that Cooper made threats to kill law enforcement officers and innocent civilians. Specifically, Cooper sent a text message to a person he knew, which read:
There gonna come for me: I bet this week. Collateral damage is key to whether or not people get informed as to how rigged the whole family law system is. It’s sad to say, but I need as much collateral damage as possible. If a cop gets shot -in the leg while serving a warrant, that’s local news. If 6 cops get killed, 4 wounded and several innocent civilians get killed or severely wounded, then it becomes national news. And that’s the only way anything is ever gonna get stuff changed. And now that my whole plan had to be revealed to you, you will be an accessory.
Cooper also sent the same person a photo of a box along with the following message: “Package came today; 50lbs of -ammonia nitrate. Google that.” In addition, Cooper sent an order confirmation email showing that he purchased 50 pounds of ammonium nitrate on July 25, 2019. Law enforcement executed a search warrant at Cooper’s residence on July 30, 2019. They found 21 firearms, ammunition, 50 pounds of ammonium nitrate, and materials that could be used to make an explosive device. They also found methamphetamine and drug paraphernalia. Cooper admitted to being a regular user of methamphetamine.
This investigation was conducted by the Iowa State Fire Marshal, Shelby County Sheriff’s Office, and the Bureau for Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.German Citizen Charged with Orchestrating Mail Fraud Scheme Defrauding Elderly and Vulnerable Victims of over $10 MillionRead the Press Release
NEWARK, N.J.– A federal grand jury today indicted a German man with orchestrating a massive mail fraud scheme targeting elderly and otherwise vulnerable victims with false and fraudulent psychic solicitations, U.S. Attorney Craig Carpenito announced.
Georg Ingenbleek, 54, a citizen of Germany, is charged with two counts of mail fraud, four counts of money laundering, and one count of obstruction of justice. Ingenbleek was associated with and used a company, Regency Direct Marketing AG, located in Switzerland, for his mass mailing campaigns.
According to the Indictment:
From at least 2011 through 2016, Ingenbleek created numerous direct mail solicitations supposedly from world-renowned psychics, falsely and fraudulently claiming that the recipients were being contacted because they had been the subject of specific visions by the psychics, including visions that the recipients were going to receive large sums of money and good fortune. Many of the letters falsely promised that the psychic services or objects being offered were free of charge. In fact, the letters were mass-produced using software and information provided by Ingenbleek to a direct mail marketing services company, Company-1, located in Piscataway, New Jersey, that Ingenbleek retained to print and mail the solicitations.
Ingenbleek directed a second company, Company-2, to send fraudulent billing notices to the same victims which stated that the victims owed money for psychic services, which in many cases had been offered free of charge. The fraudulent billing notices were labeled “collection notices” and “invoices,” falsely representing that the victims owed late payment fees, and falsely stating that a psychic or astrology organization would refer the victim to a “collection agency” and take legal action if the recipient did not send a check, usually for $20 to $50. Through his fraudulent psychic mailing campaign, Ingenbleek obtained more than $10 million dollars from the victims.
In September 2016, Ingenbleek directed representatives of Company-1 and Company-2 to destroy all materials related to his fraudulent psychic mailings in response to federal criminal investigations into his conduct and the conduct of other participants in the scheme. In one email, dated Sept. 23, 2016, Ingenbleek told a representative of Company-2, “You cannot wait! I advise you urgently to get rid of the material! Use your own car, rent a truck, start today, work all weekend.”
The mail fraud and obstruction counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the money instrument or funds involved in the transportation, transmission, or transfer of funds.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of HSI New York, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit and Special Assistant U.S. Attorney Benjamin Teich.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ft. Thompson Woman Sentenced on Fentanyl Overdose ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Ft. Thompson, South Dakota, woman convicted of Distribution of a Controlled Substance Resulting in Death was sentenced on July 20, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Renita Faye Taylor, age 39, was sentenced to 240 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Taylor was indicted by a federal grand jury on October 16, 2019. She pled guilty on July 20, 2020.
The conviction stemmed from an incident that occurred on or about August 6, 2019, where Taylor knowingly and intentionally distributed pills containing Fentanyl and that distribution resulted in the death of an adult male on the Crow Creek Indian Reservation.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency, the Northern Plains Safe Trails Drug Enforcement Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Taylor was immediately turned over to the custody of the U.S. Marshals Service.
Fresno Man on Federal Supervised Release Indicted on Drug and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Elias Muhammad, 23, of Fresno, charging him with attempted possession of cocaine with the intent to distribute and two counts of being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, Muhammad was arrested after a vehicle stop on May 5. He was in possession of a firearm and .40 caliber ammunition after having suffered two prior felony convictions. He posted bail on that offense on May 10 and was released from custody. On June 25, Muhammad was again arrested for being a felon in possession of a firearm, attempting to possess cocaine with the intent to distribute, and for being in violation of his federal supervision resulting from a 2019 conviction for being a felon in possession of a firearm.
This case is the product of an investigation by the Clovis Police Department, the Multi-Agency Gang Enforcement Consortium (MAGEC) and the Bureau of Alcohol. Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Muhammad faces 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 defendant is 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.
Fresno Man Sentenced to 30 Years in Prison for Distributing Fentanyl Resulting in Two Overdose Deaths in Fresno and Madera CountiesRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Darnell Pearson, 42, of Fresno, today to 30 years in prison for two counts of distribution of fentanyl resulting in death and serious bodily injury, U.S. Attorney McGregor W. Scott announced.
“This defendant sold what his customers thought was cocaine that was, in fact, fentanyl and caused the deaths of two people and serious injury to two others,” U.S. Attorney Scott stated. “These two deaths were the first reported fentanyl overdose deaths in Fresno and Madera Counties. As they demonstrate, fentanyl is extremely dangerous and is a serious public health threat in our area and the nation as a whole. Even trace amounts of this drug can be lethal, and it poses serious risks to those who come into contact with it, including first responders. We will continue to work with our state and federal partners to target those who distribute this poison in our communities.”
“Fentanyl is man-made and potent in the smallest amounts. A few grains of the substance can lead to overdose, and we are increasingly seeing it sold as other illicit drugs. The message has been sent, if you distribute drugs that result in death and serious bodily injury, we will use every tool available to ensure that justice is served,” stated Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. “I applaud the collaborative efforts and good old fashioned police work that led to the successful prosecution of this investigation.”
According to court documents, on Jan. 7, 2019, law enforcement officers responded to a call concerning an overdose in Fresno and found three individuals on the ground with faint or no pulse. All three individuals were transported to Community Regional Medical Center for treatment. One of the individuals was pronounced dead on Jan. 10, 2019. A toxicology report determined that the cause of death for the individual was overdose from fentanyl. The other two individuals survived and were later released from the hospital.
On Jan. 24, after a four-day trial, a jury found that the death resulted from the use of the fentanyl distributed by Pearson, and it caused the other two victims to suffer serious bodily injury. Pearson was convicted of a second count of distribution of fentanyl resulting in death of a victim in Madera, and the jury found the death of this victim resulted from the use of the fentanyl distributed by Pearson. On Jan. 7, 2019, the victim, the mother of Pearson’s children, was found motionless on the floor of her bathroom by family members. Officers and paramedics were unable to revive her and she was pronounced dead that evening.
During the sentencing hearing, Judge Drozd found that Pearson had obstructed justice during the investigation by deleting text messages between himself and the Madera victim in an effort to frustrate law enforcement. Additionally, Judge Drozd found that during the trial, Pearson obstructed justice by testifying falsely in an effort to mislead the jury resulting in an increased sentence. Even though Pearson may not have known he was distributing fentanyl and that his actions would cause the deaths of two people and serious bodily injury to two additional people, that was immaterial Judge Drozd said while imposing the sentence for Pearson’s distribution of drugs that had tragic results.
This case was the product of an investigation by the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Fresno Police Department, and the Madera Police Department. Assistant U.S. Attorneys Laurel Montoya and Michael Tierney prosecuted the case.
Fresno Man Charged with Conspiring to Break into a Mail Truck and Other ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against a Fresno resident, charging him with conspiracy, obstruction of correspondence, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Joaquin Velasco, 22, and another individual conspired to steal mail from a mail truck. On Feb. 26, they broke into a mail truck while the mail carrier was using the vehicle to deliver mail on a mail route. They removed multiple bags of mail and a white tray of mail and fled the area with the stolen mail in their vehicle. Velasco took the mail, before it was delivered to the person to whom it was directed, with the intent to obstruct the correspondence.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alexandre Dempsey is prosecuting the case.
If convicted, Velasco faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Frankfort Man Pleads Guilty to Attempting to Entice a Minor OnlineRead the Press Release
FRANKFORT, Ky.- A Frankfort, Ky., man, Ricky Joe Cornish Jr., 33, pleaded guilty in federal court on Thursday, before U.S. District Judge Gregory F. VanTatenhove, to using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity. .
According to his plea agreement, on May 16, 2019, Cornish contacted an individual who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the MeetMe/Skout messenger application over the Internet, on his cellular telephone. The person Cornish contacted was, in reality, an adult male investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch (“the UC”). The UC indicated that her 17-year-old female cousin was with her, and Cornish expressed interest in having sex with the 17-year-old.
Later on May 16, 2019, Cornish drove to an agreed upon hotel, in order to meet the UC and engage in criminal sexual activity. When Cornish arrived at the agreed-upon meeting place in Franklin County, he was arrested by law enforcement. Law enforcement examined his cell phone, which revealed the conversation with the UC, as well as a similar conversation with another presumably minor female.
Cornish was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the conviction.
The investigation was conducted by United States Secret Service and Kentucky Attorney General’s Cyber Crimes Branch. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Marye.
Cornish is scheduled to be sentenced on December 8 in Lexington. He faces a minimum of 10 years and a maximum of life in prison, and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Forsyth man sentenced for attempted attack on the White HouseRead the Press Release
ATLANTA - Hasher Jallal Taheb has been sentenced for attempting an attack upon the White House. Taheb also planned attacks on the Statue of Liberty, Washington Monument, Lincoln Memorial, and a synagogue.
“Taheb painstakingly planned an attack on the White House that potentially jeopardized the lives of White House employees and visitors,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful to members of our community and our federal and state law enforcement partners who identified Taheb’s scheme and worked cooperatively to bring him to justice.”
“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers. “And that was just one of the iconic American landmarks he wanted to target. Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has now been sentenced for his planned terrorist attack.”
“Because of a tip from the public, the FBI Atlanta Joint Terrorism Task Force and our law enforcement partners began a year-long investigation that resulted in Taheb's arrest and potentially saved many lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The phrase 'If you see something, say something' may seem trite, but our citizens are our eyes and ears in our communities, one of our most important weapons in fighting terrorism, and this case exemplifies that.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI. The community member reported that Taheb had become radicalized and was making plans to travel abroad. During an undercover operation conducted by the FBI, federal investigators learned that Taheb, in fact, applied for a passport and planned to travel overseas. At the same time, Taheb had begun planning domestic attacks in the United States. His targets initially included the White House and the Statue of Liberty. In December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.
During undercover meetings with Taheb in January 2019, Taheb provided sketches of the White House and described the types of weapons and explosives he intended to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on January 16, 2019, after Taheb arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.Federal investigators searched Taheb’s computer following his arrest and found a video that he made. In the video, Taheb addressed “. . . America, its allies, its president, and its people.” He recounted his grievances with American policy and proclaimed that America would not see peace unless it changed its foreign policy, as he was a man who loved death more than Americans love life. He also encouraged other Muslims to fight. After entering his guilty plea, Taheb said that he intended “to carry out a martyrdom operation as a tactic of jihad against America.”
Hasher Jallal Taheb, 23, of Cumming, Georgia, has been sentenced by U.S. District Judge Mark H. Cohen to 15 years in prison to be followed by three years of supervised release. Taheb pleaded guilty to these charges on April 1, 2020.
This case was investigated by the FBI Atlanta Joint Terrorism Task Force. Investigators included the U.S. Secret Service, Homeland Security Investigations, U.S. Customs and Border Protection, Diplomatic Security Service, U.S. Army, Cobb County Police Department, Gwinnett County Police Department, and the FBI. The Forsyth County Sheriff's Office also provided assistance.
The case was prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Matthew Carrico, Deputy Chief of the Organized Crime and Gangs Section, and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Forsyth Man Sentenced for Attempted Attack on the White HouseRead the Press Release
Hasher Jallal Taheb, 23, of Cumming, Georgia, has been sentenced to 15 years in prison for attempting an attack upon the White House. Taheb also planned attacks on the Statue of Liberty, Washington Monument, Lincoln Memorial, and a synagogue.
“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers. “And that was just one of the iconic American landmarks he wanted to target. Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has now been sentenced for his planned terrorist attack.”
“Taheb painstakingly planned an attack on the White House that potentially jeopardized the lives of White House employees and visitors,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful to members of our community and our federal and state law enforcement partners who identified Taheb’s scheme and worked cooperatively to bring him to justice.”
“Because of a tip from the public, the FBI Atlanta Joint Terrorism Task Force and our law enforcement partners began a year-long investigation that resulted in Taheb's arrest and potentially saved many lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The phrase 'If you see something, say something' may seem trite, but our citizens are our eyes and ears in our communities, one of our most important weapons in fighting terrorism, and this case exemplifies that.”
According to the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI. The community member specifically alerted law enforcement that Taheb had become radicalized and was making plans to travel abroad.
During an undercover operation conducted by the FBI, federal investigators learned in October 2018 that Taheb, in fact, applied for a passport and planned to travel overseas. At the same time, Taheb had begun planning domestic attacks in the United States as part of his desire to engage in “jihad.” His targets initially included the White House and the Statue of Liberty. Later in December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.
During undercover meetings with Taheb in January 2019, Taheb produced sketches of the White House and described the types of weapons and explosives he intended to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on Jan. 16, 2019, after Taheb arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.Federal investigators searched Taheb’s computer following his arrest and found a video that he made. In the video, Taheb addressed “. . . America, its allies, its president, and its people.” He recounted his grievances with American policy and proclaimed that America would not see peace unless it changed its foreign policy as he was a man who loved death more than American’s love life. He also encouraged other Muslims to fight.
Hasher Jallal Taheb has been sentenced by U.S. District Judge Mark H. Cohen to 15 years in prison to be followed by three years of supervised release. Taheb pleaded guilty to these charges on April 1, 2020.
This case was investigated by the FBI’s Joint Terrorism Task Force, which includes the U.S. Secret Service. The Forsyth County Sheriff Office and Gwinnett County Police Department also provided assistance.
The case was prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Matthew Carrico, Deputy Chief of the Organized Crime and Gangs Section, and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division.
Former West Virginia University professor pleads guilty to wire fraud and tax fraudRead the Press Release
CLARKSBURG – Dr. Qingyun Sun, of Morgantown, West Virginia, has admitted to defrauding West Virginia University and filing a false tax return, both offenses arising out of his official travel to China, U.S. Attorney Bill Powell announced.
Sun, age 58, pleaded guilty to a two-count information charging him with wire fraud and filing a false tax return. Sun was a Chinese National employed by WVU as an associate professor and the associate director of the United States-China Energy Center at the University. As a part of his employment at WVU, through the West Virginia Development Office, he also acted as the Governor’s assistant for China affairs. He was also employed by Synfuels Americas Corporation, an energy conversion technology provider of coal-to-liquids and gas-to-liquids processes located in Sterling, Virginia, but headquartered in Beijing, China. From July 2011 to May 2015, Peabody Energy Generation Holding Company based in St. Louis, Missouri, paid consulting fees to Energy United LC, a consulting business Sun established in 2005. The scheme involved Sun’s operation of his consulting business through Energy United.
In 2015, Sun traveled to China on behalf of WVU and the WV Development Office to prepare for an upcoming visit to China by WVU representatives and to lead a West Virginia industrial delegation for a coal expo in Beijing. Sun booked both a coach flight and a business class flight for this trip, submitting a request for reimbursement to WVU for the coach flight, and submitting a request for reimbursement to Synfuels Americas for the business flight. Sun only used the business class ticket for his trip.
In 2014, Sun filed a joint income tax return with his wife, grossly overstating his business-related travel expenses, when a large sum of those travel expenses were paid for by a State Purchasing Card, or reimbursed to him by WVU and Peabody Energy. He also failed to state any financial interest in, or authority over, a financial account in a foreign country. Sun had an interest in numerous financial accounts in China.
As a part of the plea agreement, Sun has agreed to pay restitution in the amount of $6,233.12 in full to WVU. Sun is no longer employed by WVU.
Sun faces up to 20 years of incarceration and a fine of up to $250,000 for wire fraud and faces up to three years of incarceration and a fine of up to $250,000 for tax fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The FBI and the Internal Revenue Service investigated. WVU cooperated in the investigation of this case.
U.S. Magistrate Judge Michael John Aloi presided.
Former Supervisory Committee Member of Municipal Credit Union Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department (“NYPD”) officer and former member of the supervisory committee (the “Supervisory Committee”) of Municipal Credit Union (“MCU”), a non-profit financial institution, was sentenced today in Manhattan federal court to 27 months in prison for abusing his leadership position at MCU to embezzle more than $400,000. Guagliardo previously pled guilty to defrauding a federally insured credit union before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “For years, Joseph Guagliardo betrayed the trust of MCU’s members, who elected him to supervise and protect MCU, by abusing his position to steal hundreds of thousands of dollars. Guagliardo did so with the complicity of the now imprisoned former CEO of the credit union, whom he provided with a steady stream of painkillers. Guagliardo will now serve a substantial prison sentence for his crime.”
According to the allegations contained in the Complaint, the Information, other filings in Manhattan federal court, statements made in court, and publicly available documents:
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York State governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
GUAGLIARDO is a former officer with the NYPD and a former Supervisory Committee member of MCU, a volunteer position. In or about 1993, GUAGLIARDO joined the Supervisory Committee, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board of Directors in or about 2008.
Under New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board of Directors and officers. MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”
From 2009 through May 2018, in violation of MCU policy and his fiduciary duty as a member of the Supervisory Committee, GUAGLIARDO engaged in a scheme to obtain money from MCU to which he knew he was not entitled, and took steps to conceal his efforts. Among other things, GUAGLIARDO caused MCU to direct more than $250,000 to a security company created and controlled by GUAGLIARDO, but operated in another’s name, and then directed that money from that company be paid to him and to his family members. GUAGLIARDO also over-billed MCU more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled.
In addition, during substantially the same period in which GUAGLIARDO was committing these offenses, GUAGLIARDO unlawfully distributed controlled substances to the former chief executive officer of MCU, Kam Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a different doctor affiliated with the NYPD.
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In addition to his prison term, GUAGLIARDO, 63, of Brooklyn, New York, was sentenced to two years of supervised release, and was ordered to forfeit $425,514, and to pay $468,189 in restitution to MCU and a fine of $10,000.
Ms. Strauss praised the outstanding work of the Special Agents of the United States Attorney’s Office. Ms. Strauss also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance. She noted that the investigation is ongoing.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance of Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.
Former Smartbank Vice President of Loan Operations Sentenced for Embezzlement SchemeRead the Press Release
KNOXVILLE, Tenn. – On July 22, 2020, Connie S. Clabo, 54, of Sevierville, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of her plea agreement, Clabo pleaded guilty to an information in November 2019. The information charged Clabo with one count of embezzlement and one count of filing a false tax return. Clabo was sentenced to 15 months in prison, followed by four years of supervised release. Clabo was also ordered to pay restitution of $516,630.06.
From 2013 through February 2018, SmartBank employed defendant as its vice president of loan operations. During that time, Clabo abused her position of private trust with SmartBank by misusing her general-ledger and loan-operations oversight authority to steal, embezzle, misapply, and conceal the theft, embezzlement, and misapplication of more than $600,000 of Smartbank’s money, funds, and credits. Clabo’s conduct was not isolated, but reflected a pattern of repeated deceptive conduct over many years. Clabo abused her managerial position at SmartBank and used her knowledge of SmartBank’s internal controls for personal advantage intending to defraud SmartBank.
In addition to embezzling and the misapplication of funds from SmartBank, Clabo filed false tax returns for 2014 through 2017 that failed to include as income the money she embezzled from her employer, resulting in additional income tax owed of over $89,000.
This prosecution was the result of a joint investigation by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, the Office of Inspector General for the Federal Housing Finance Agency, Federal Bureau of Investigation, and IRS Criminal Investigations.
Assistant U.S. Attorney Trey Hamilton represented the United States.
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Former SCANA Executive Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Stephen A. Byrne, 60, former Executive Vice President of SCANA, pleaded guilty in federal court to conspiracy to commit mail and wire fraud.
Today’s plea is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the U.S. Securities and Exchange Commission (SEC), the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division (SLED). The plea agreement requires that Byrne cooperate with law enforcement officials and includes an agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief.
“This office will always protect the people of South Carolina and hold accountable those who seek to use positions of trust and responsibility to bilk taxpayers,” said U.S. Attorney McCoy. “As noted in the record, the Defendant conspired with others to lie about the progress of the V.C. Summer Nuclear Station so SCANA could wrongly increase rates on hard-working South Carolinians and qualify for up to $1.4 billion in tax credits. We will not allow this conduct to go unpunished. I also want to thank our federal and state partners for their invaluable contribution to this investigation.”
“This conspiracy to defraud SCANA customers is breathtaking in scope and audacity,” said FBI Special Agent in Charge Jody Norris. “The FBI remains committed to ensure all those responsible for this crime, which only served to enrich a few by robbing families and communities within South Carolina, are held accountable. I thank SLED for its assistance in this complex and extensive investigation.”
“I appreciate the efforts of this joint federal and state investigation,” said South Carolina Attorney General Alan Wilson. “We’ve long argued that the law allowing SCANA to charge customers billions of dollars for a nuclear plant that wasn’t even operating was unconstitutional. Now, a former SCANA executive is being held criminally accountable for his part in the project.”
Evidence presented to the court showed that this case arises out of the failed nuclear project at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina. In 2008, SCANA Corporation and its subsidiary South Carolina Electric & Gas Company (SCE&G) announced their intention to build two new nuclear units with their minority partner, the South Carolina Public Service Authority, a state-owned public power and water utility commonly known as Santee Cooper.
Byrne, who served as SCANA’s Executive Vice President and SCE&G’s President of Generation and Transmission and Chief Operating Officer, oversaw all nuclear operations for SCANA, including the construction of the two new nuclear units.
From its inception, substantial delays and cost overruns plagued the project. In late 2015 and early 2016, Byrne and others in SCANA’s executive leadership were aware that without extraordinary progress, the project was at risk of not completing the construction of both units in time to qualify for the federal nuclear production tax credit, which will expire on December 31, 2020, and was worth up to $1.4 billion. In or around June 2016, Byrne became aware that efforts to improve the pace and productivity of the project were insufficient to meet the nuclear production tax credit deadline.
At that time he joined a conspiracy with other senior SCANA executives to defraud customers of money and property through material false and misleading statements and omissions. In furtherance of the conspiracy, Byrne and his coconspirators made false and misleading statements to the South Carolina Public Service Commission (PSC), the Office of Regulatory Staff (ORS), and the public. Byrne and his coconspirators used both wires and mails in furtherance of their scheme to defraud.
For example, on July 1, 2016, Byrne submitted written testimony to the PSC representing that “SCE&G’s construction experts have reviewed [the consortium’s] schedule and found that its scope and sequencing is logical and appropriate” and that “SCE&G has carefully reviewed and evaluated all information that is available related to the project and schedule and finds it to be reasonable.” In truth, at the time of this statement, Byrne believed that the schedule was unreliable and unlikely to be achieved.
Further, Byrne testified that SCE&G’s contractors “have a reasonable construction plan in place to achieve the [guaranteed substantial completion dates]” such that “the construction schedule . . . is a reasonable and prudent schedule for completing the units.” In truth, Byrne believed that those dates – and therefore the production tax credit deadline that closely followed – were unlikely to be achieved.
Contrary to his and others’ public statements, Byrne was aware in June 2016 that the project construction schedule and completion dates were unrealistic and unlikely to be achieved, and both units of the project were unlikely to be completed in time to qualify for up to $1.4 billion in federal nuclear production tax credits. His false and misleading statements, among others made by his coconspirators, allowed SCANA to obtain rate increases imposed on SCANA’s rate-paying customers and used to finance the project.
Byrne faces a maximum penalty of five years in federal prison. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence him after receiving and reviewing a sentencing report prepared by the United States Probation Office. Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, and Emily Limehouse are prosecuting the case.
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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 Congressman Charged with Ballot Stuffing, Bribery, and ObstructionRead the Press Release
A former U.S. Congressman was charged Tuesday in an indictment unsealed today, with conspiring to violate voting rights by fraudulently stuffing the ballot boxes for specific candidates in the 2014, 2015, and 2016 primary elections, bribery of an election official, falsification of records, voting more than once in federal elections, and obstruction of justice.
Michael “Ozzie” Myers, 77, of Philadelphia, Pennsylvania, is charged with conspiring with and bribing the former Judge of Elections for the 39th Ward, 36th Division, Domenick J. Demuro. Demuro, who pleaded guilty previously in federal court in Philadelphia, was responsible for overseeing the entire election process and all voter activities of his division in accord with federal and state election laws.
“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.”
“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 William M. McSwain of the Eastern District of Pennsylvania. “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.”
“Transparent and fair elections are integral to the proper functioning of our democracy,” said Special Agent in Charge Michael J. Driscoll 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.”
Myers is charged with bribing Demuro to illegally add votes for certain candidates of their mutual 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 whom 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 in return for tampering with election results.
After receiving payments ranging from between $300 to $5,000 per election from the consultant, the court papers allege 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 about the circumstances of the bribes and the ballot-stuffing scheme to investigators.
This case is being investigated by the FBI with assistance from the Pennsylvania State Police. It is being prosecuted by Richard C. Pilger, Director of the Elections Crimes Branch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric L. Gibson.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Woman Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 35-year-old St. Petersburg, Florida woman has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Erica Ann Lang pleaded guilty on Feb. 10, 2020, to conspiracy to distribute and possess methamphetamine and was sentenced to 37 months in federal prison today by U.S. District Judge Marcia A. Crone. Ryan Andrew Davis, 35, of Clearwater, Florida pleaded guilty to the same charge on Jan. 16, 2020, and was sentenced to 162 months in federal prison on July 9, 2020.
According to information presented in court, on Oct. 24, 2019, Lang and Davis were stopped for a traffic violation on Interstate Highway 10 East in Beaumont, Texas. A certified narcotics detection dog alerted on the car and a search was performed revealing approximately one kilogram of methamphetamine hidden in the trunk of the vehicle.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
Five-Time Felon Sentenced for Illegal Possession of Firearm in Connection with December 2016 GunfightRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Antoni Peralta, 34, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 78 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and associated ammunition, in connection with a December 2016 gunfight in a residential neighborhood. Peralta was found guilty following a three-day federal jury trial in September 2019.
According to evidence presented at trial, on the evening of Dec. 16, 2016, Peralta had a confrontation with a man in an Anchorage bar. Peralta then got into his vehicle and left the bar, turning onto Donna Road, out of suspicion that the man had followed him. He saw a black SUV and a white SUV, and gunshots rang out down the residential street. Peralta reached for his Smith & Wesson .40 caliber pistol and Federal .40 caliber ammunition and shot at the SUVs. Peralta, injured by gunfire, crawled from his vehicle to the steps of a nearby home while the SUVs left the area.
Law enforcement officers arrived to investigate the shooting and approached Peralta who was still at the steps of a nearby home. He required medical treatment and was hospitalized. During a search of Peralta’s bullet-riddled vehicle, police found a pistol with a live round and a magazine with additional ammunition.
Peralta has five prior convictions within the state of Alaska for crimes including robbery, vehicle theft, felon in possession of a firearm, and failure to stop at the direction of a police officer. As someone previously convicted of a felony offense, Peralta was prohibited from possessing firearms or ammunition.
As part of his 2005 robbery conviction, Peralta was involved in a gang-related shooting that led to the death of a 14-year-old child. During the investigation, Alaska State Troopers approached Peralta and others, who fled to a vehicle. Peralta, a passenger, pushed the driver out of the vehicle, so he could take the wheel and lead the troopers on a high-speed chase. Peralta’s fleeing vehicle stopped only after the troopers successfully used spike strips. There were six people in the car, including an infant.
At today’s sentencing hearing, the Court noted that Peralta’s crime was committed while he was on supervision for his previous felon in possession conviction in 2014. Judge Burgess stated that, “nothing up to this point has shown me that he [Peralta] has changed.”
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from the Alaska Scientific Crime Detection Laboratory, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Karen Vandergaw and Allison O’Leary.
Felon Sentenced to More Than a Decade in Federal Prison for Dealing Heroin While Discharging a FirearmRead the Press Release
OKLAHOMA CITY – TIAHMO LENELL DRAINE, 47, of Oklahoma City, has been sentenced to 130 months in prison for possessing heroin with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Timothy J. Downing.
In October 2019, a federal grand jury indicted Draine, and in January 2020 he was convicted after a federal jury trial. During the trial, the government presented evidence that shortly after midnight, on July 3, 2019, a woman called 911. The woman reported she has been chased by an individual driving a gray truck who had shot at her during an altercation that originated at a convenience store. An Oklahoma City Police Officer responded and pursued the truck as it exited I-44, entered a residential neighborhood, and pulled into a yard. The driver, Draine, exited the truck wearing a backpack. He then hid out of view towards the front of the truck. Draine returned, placed the backpack on the driver’s seat, and ultimately followed commands from the officer to walk towards him with his hands up. After law enforcement detained Draine, they located a .40 caliber semi-automatic pistol under the truck. Inside the backpack, law enforcement found heroin, a digital scale, and drug ledgers. An investigating officer returned to the convenience store where the incident originated and located a spent shell casing near the gas pumps. A firearms examiner later determined the .40 caliber found in Draine’s possession fired the shell casing located near the gas pumps.
At a sentencing hearing earlier this week, Senior U.S. District Judge Stephen P. Friot sentenced Draine to serve 130 months in prison, followed by three years of supervised release. The sentence included 70 months on each of the heroine distribution and firearm possession counts to run concurrently, and 60 months for possessing a firearm in furtherance of a drug trafficking crime to run consecutively to the other two counts. In announcing the sentence, Judge Friot took into account the nature and circumstances of the offense and Draine’s criminal history. Public records reflect Draine held felony convictions for Assault and Battery with a Deadly Weapon With Intent to Kill and Domestic Assault and Battery when the incident occurred.
This case is the result of an investigation by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Ashley L. Altshuler prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The local implementation of these initiatives is through “Operation 922,” which prioritizes the prosecution of federal gun crimes in connection with domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Federal Inmate Sentenced for Escaping from Beaumont FacilityRead the Press Release
BEAUMONT, Texas –A 26-year-old federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Leo Martinez of Miami, Florida, pleaded guilty on March 11, 2020, to escaping from federal custody and was sentenced to an additional 18 months in federal prison by U.S. District Judge Marcia Crone today.
According to information presented in court, on Oct. 11, 2019, the Jefferson County Sheriff’s Office received an anonymous tip alerting them that inmates at the Bureau of Prisons Camp Facility in west Jefferson County were planning to escape from the facility in order to retrieve contraband that had been left for them in a field off Hillebrandt Road. Law enforcement officers surrounded the area in concealed locations and within several hours observed four inmates approaching on foot. All four inmates were apprehended after attempting to flee. After they were captured, a search of the inmates revealed several cellular telephones and a bottle of whisky. All four were indicted by a federal grand jury on Nov. 6, 2019.
Martinez was serving a federal prison sentence for a drug trafficking conviction out of the Western District of Oklahoma. Martinez’s new prison sentence will begin once he has served the remainder of his original prison sentence.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
El Departamento de Justicia Resuelve Acusaciones Relacionadas con la Inmigración contra una Agencia de Contratación Legal y un Bufete de AbogadosRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que había llegado a un acuerdo con Arnold & Porter Kaye Scholer LLP (Arnold & Porter), un bufete de abogados nacional, y Law Resources Inc. (Law Resources), una empresa de contratación legal con sede en Washington, D.C., lo que resuelve acusaciones de que las compañías discriminaban, por motivos de estatus de ciudadanía, en los procesos de contratación.
El acuerdo resuelve acusaciones de que Law Resources, por orden de Arnold & Porter, eliminó a ciudadanos estadounidenses con doble nacionalidad y a individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. como candidatos para un proyecto de revisión de documentos por motivos de su estatus de ciudadanía, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés). Por otra parte, el acuerdo resuelve las acusaciones de que Law Resources tomó represalias contra una trabajadora afectada cuando ella se opuso a la restricción relacionada con el estatus de ciudadanía.
«Estados Unidos de América es la tierra de oportunidades, y el Gobierno de los Estados Unidos sigue plenamente comprometido al principio fundamental que en este país toda persona que cuente con la autorización legal necesaria para trabajar deberá tener la posibilidad de perseguir la felicidad ganándose la vida sin sufrir la humillación de ser discriminada por motivos de lugar de donde proviene. Nuestras leyes protegen este ideal de muchas maneras, entre ellos al prohibir las restricciones ilícitas a la contratación que se basen en el estatus de ciudadanía», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Esperamos colaborar con Law Resources y Arnold & Porter para asegurar que sus procedimientos de contratación cumplen plenamente con la prohibición de la ley de Inmigración y Nacionalidad contra la discriminación en el empleo por motivos de estatus de ciudadanía».
El Departamento inició su investigación después de que una ciudadana con doble nacionalidad presentó una querella de discriminación contra Law Resources, lo que llevó al Departamento a dar pie a una investigación independiente de Arnold & Porter.
Según la disposición antidiscriminatoria de la INA, por lo general, es ilegal para los empleadores discriminar a alguien durante el proceso de contratación por motivos de su estatus de ciudadanía, a no ser que sea obligados a hacerlo por ley o un contrato gubernamental. El Departamento determinó que ni Arnold & Porter ni Law Resources tenían un fundamento jurídico para las restricciones relacionadas con la ciudadanía en su proceso de contratación. Asimismo, la disposición antidiscriminatoria de la INA prohíbe que los empleadores tomen represalias contra trabajadores porque estos se hayan opuesto a una conducta ilícita por parte del empleador o a cualquier otra conducta que ellos crean, por motivos fundados, que constituye discriminación ilícita.
Las investigaciones concluyeron que Arnold & Porter y Law Resources implementaron una política de excluir a personas con doble nacionalidad e individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. a la hora de reclutar y contratar a empleados temporales para trabajar en un proyecto de Arnold & Porter de revisión de documentos en otoño del 2018. La investigación del Departamento halló que Arnold & Porter malinterpretó los requisitos de los Reglamentos para el Tráfico Internacional de Armas. Asimismo, las investigaciones concluyeron que, después de que la querellante se opuso a la restricción que tiene que ver que el estatus de ciudadanía, Law Resources, por su cuenta, tomó represalias en su contra al agregarla a una lista de personas que no serían contratadas en el futuro.
Conforme los términos del acuerdo conciliatorio, Arnold & Porter y Law Resources pagarán una sanción civil que asciende a 56.500 $ por las acusaciones de discriminación por motivos de estatus de ciudadanía. Law Resources pagará por separado una sanción civil de 3.000 $ y ofrecerá 11.875 $ por concepto de pagos retroactivos a la trabajadora afectada con el fin de resolver las acusaciones de represalias. Juntas, las compañías contribuirán 55.000 $ a un fondo de pagos retroactivos para otros trabajadores afectados, capacitarán a los empleados relevantes acerca de la disposición antidiscriminatoria de la INA y se someterán a la supervisión del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; represalias o la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sometidos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery. Miembros del público pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Eighteen Charged in Wide-Ranging Fentanyl, Heroin, Crack, and Cocaine ConspiracyRead the Press Release
BOSTON – Eighteen individuals from Massachusetts and elsewhere were charged in a superseding indictment unsealed today in federal court in Boston on charges related to a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy.
Eight individuals, Pedro Baez, 50, of Fitchburg; Anthony Baez, 31, of Fitchburg; Amanda Ford, 33, of Fitchburg; Monica Troche, 27, of Fitchburg; Branny Taveras, 37, of Fitchburg; Shastaalena Blair, 39, of Fitchburg; Jessica Hughes 28, of Gardner; and Valerie Lucier, 30, of Fitchburg, were previously arrested and charged in a November 2019 indictment. Pedro and Anthony Baez are both detained pending trial. The superseding indictment unsealed today charges eight additional individuals who were arrested: Pablo Vidarte Hernandez, 46, of Fitchburg; Adiangel Paredes, 33, of Leominster; Kevin Martinez, 41, of Fitchburg; Ricky Figueroa, 29, of Fitchburg; Pedro Villot-Santiago, 30, of Fitchburg; Ivan Torres, 30, of Fitchburg; Jonathan Villot, 29, of Fitchburg; and Hector Matos, 29, of Whitinsville. Two other individuals were also indicted and remain at large.
The November 2019 indictment charged the defendants with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of cocaine base (crack). Anthony Baez and Monica Troche were also charged with five counts of distribution and possession with intent to distribute and distribution of fentanyl, heroin, and cocaine.
The superseding indictment adds defendants Pablo Vidarte Hernandez, Adiagel Paredes, Kevin Martinez, Ricky Figueroa, and Pedro Villot-Santiago to count one and alleges the conspiracy involved one kilogram or more of heroin, 280 grams or more of cocaine base, 400 grams or more of fentanyl, and 500 grams or more of cocaine. The superseding indictment charges Pedro Baez and Anthony Baez with distribution and possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine. In addition, the superseding indictment charges Ricky Figueroa, Pedro Villot-Santiago, Ivan Torres, Jonathan Villot, Hector Matos, and two others with conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine.
The charge of conspiracy to distribute one kilogram or more of heroin, 280 grams or more of cocaine base, 400 grams or more of fentanyl, and 500 grams or more of cocaine provides for a sentence of up to life in prison, a term of supervised release of at least three years and up to life, and a fine of up to $10 million. The charge of conspiracy to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine provides for a sentence of up to life in prison, a term of supervised release of at least four years and up to life, and a fine of up to $10 million. The other drug trafficking charges provide for a sentencing range of five years to a lifetime in prison, a term of supervised release of at least four years and up to life, and a fine of between $5 million to $10 million. Due to a previous conviction of a qualifying drug trafficking offense, Pedro Baez faces enhanced mandatory minimum sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.