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3 September 2020
Newport Optometry Practice Settles ADA ComplaintRead the Press Release
LEXINGTON, Ky. – The federal government and a Newport-based optometry practice have reached a settlement agreement under the Americans with Disabilities Act (ADA), to remove barriers to access for patients with disabilities.
The settlement results from an investigation that was initiated by a complaint from a patient, who was unable to enter exam rooms during her appointment at Opticare Vision Centers in Newport, Kentucky, because she was using a wheelchair. As part of the settlement, Opticare has agreed to construct a new exam room that will be accessible to patients using wheelchairs. The ADA prohibits places of public of accommodation, including the professional offices of health care providers, from discriminating against individuals with disabilities and requires them to remove architectural barriers to access.
“Investigations of ADA complaints are critical tools in preventing impediments to people’s access to public spaces, especially their access to healthcare services and facilities,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We will continue our efforts to protect proper access to public spaces, and we appreciate Opticare’s assistance in resolving this complaint and investigation.”
This matter was handled by Assistant United States Attorney Carrie Pond as part of the office’s civil rights program and the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on the critical area of health care for individuals with disabilities.
The year 2020 marks the 30th anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
The Department has a number of publications available to assist entities to comply with the ADA, including publications specific to health care providers, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line, at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email, by sending them to [email protected].
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New York Hedge Fund Founder Arrested and Charged with Fraud, Extortion, and Obstruction of Justice in Connection with Neiman Marcus BankruptcyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DANIEL KAMENSKY, the founder and manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, extortion, and obstruction of justice. KAMENSKY’s alleged criminal acts occurred in connection with his scheme to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. KAMENSKY then attempted to persuade the rival bidder to cover up the scheme. KAMENSKY was arrested today and is expected to be presented before Magistrate Judge James L. Cott this afternoon.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Daniel Kamensky disregarded his fiduciary responsibility to unsecured creditors of Neiman Marcus – and broke the law – when he attempted to coerce a competitor to withdraw a higher bid for assets of the bankruptcy estate. As further alleged, acknowledging the illegality of his actions, Kamensky then attempted to obstruct an investigation by trying to persuade the competitor to change his account of the coercion, telling the competitor that otherwise ‘this is going to the U.S. Attorney’s Office.’ As today’s charges show, Kamensky was right about that.”
FBI Assistant Director-in-Charge William F. Sweeney said: “As alleged, Kamensky intentionally violated his fiduciary duty as a member of the Official Committee of Unsecured Creditors in the Neiman Marcus bankruptcy by preventing the sale of securities to an investment bank so he could acquire the same securities at a significantly lower price for his own fund. In a conversation with an employee of the investment bank, Kamensky went as far as to say, ‘Maybe I should go to jail.’ Today, we’ve removed the ‘maybe,’ and forced him to answer for his conduct.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies. Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.
The Neiman Marcus Bankruptcy
Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020. At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee. As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.
During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate. In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer 20 cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.
KAMENSKY’s Fraudulent Scheme
On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in New York, New York (the “Investment Bank”) had informed the Committee that it was interested in bidding a price between 30 and 40 cents per share – substantially higher than KAMENSKY’s bid – to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.
That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”). During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities. KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.
The Investment Bank thereafter decided to not make a bid to purchase MYT Securities, and informed the legal adviser to the Committee of its decision. The Investment Bank further told the legal adviser they made that decision because KAMENSKY – a client of the Investment Bank – had asked them not to.
Advisers to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisers that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious. Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities. KAMENSKY said at the outset of the call, in substance, “this conversation never happened.” During the call, KAMENSKY asked IB Employee-1 to falsely say that IB Employee-1 had been mistaken and that KAMENSKY had actually suggested that the Investment Bank bid only if it were serious, and made comments including the following: “Do you understand…I can go to jail?” “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.” “But I’m telling you…this is going to the U.S. Attorney’s Office. This is going to go to the court.” “[I]f you're going to continue to tell them what you just told me, I'm going to jail, okay? Because they're going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I'm asking you not to put me in jail.”
During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”
After this series of events, Marble Ridge resigned from the Committee and has advised its investors that it intended to begin winding down operations and returning investor capital.
* * *
KAMENSKY, 47, of Roslyn, New York, is charged with one count of fraud in the offer or sale of securities, which carries a maximum sentence of five years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of extortion and bribery in connection with a bankruptcy, which carries a maximum sentence of five years in prison, and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation. She added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
New Jersey Attorney Charged with Fraudulently Obtaining $9 Million in Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
A New Jersey attorney was arrested today and charged with fraudulently obtaining approximately $9 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito of the District of New Jersey.
Jae H. Choi, 48, a licensed attorney of Cliffside Park, New Jersey, was charged by criminal complaint, unsealed today upon his arrest, in the District of New Jersey with three counts of bank fraud and one count of money laundering.
The complaint alleges that Choi submitted three fraudulent PPP loan applications to three different lenders on behalf of three different businesses that purportedly provided educational services. The complaint also alleges that Choi fabricated the existence of hundreds of employees, manipulated bank and tax records, and falsified a driver’s license on the applications.
Choi allegedly falsely represented to the lenders that the companies controlled by him had hundreds of employees and paid over $3 million in monthly wages. Based on Choi’s alleged misrepresentations, each lender funded each of the three businesses with an approximately $3 million PPP loan. As a result, the complaint alleges that Choi received a total of nearly $9 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Choi allegedly used the fraudulently-obtained PPP loan proceeds to pay for numerous personal expenses, including to buy, among other things, a nearly one million-dollar residential home in Cresskill, New Jersey, to fund approximately $30,000 in remodeling and other improvements, and to invest millions more in the stock market through an account held in the name of his spouse.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by IRS – Criminal Investigation, the U.S. Postal Inspection Service, the Small Business Administration Office of the Inspector General, and the Social Security Administration – Office of the Inspector General. Trial Attorney Andrew Tyler and Assistant U.S. Attorney Andrew Macurdy of the District of New Jersey are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Multi-Convicted Felon with Stolen AR-15 Rifle Facing More Than 10 Years in Federal PrisonRead the Press Release
Ocala, Florida – Christopher Maurice McCallum, Jr. (28, Ocala) has pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. In a related case, McCallum also admitted to violations of his federal supervision for possessing the same firearm. He could receive an additional two years in federal prison for these violations. A sentencing date has not yet been set.
According to the plea agreement, on May 25, 2020, City of Ocala police officers responded to a shooting in a local neighborhood. The officers observed McCallum attempting to flee the area in a vehicle. McCallum was apprehended after a short pursuit after he abandoned the vehicle and tried to run on foot. Officers recovered a stolen AR-15 rifle, loaded with ammunition, from the driver’s side floorboard of the vehicle. McCallum, a multi-convicted felon, was on supervision for a federal weapons offense. As such, he is prohibited from possessing firearms or ammunition under federal law.
On June 7, 2020, officers again arrested McCallum on several outstanding federal warrants relating to this conduct. At the time of his arrest, McCallum had barricaded himself inside an apartment. A subsequent search of the apartment revealed two more loaded firearms—a stolen handgun and another AR-15 rifle—along with illegal drugs and paraphernalia.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Middlesex Man Charged with Conspiring with Brooklyn Men to Defraud New Jersey BanksRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and two Brooklyn, New York, men were charged today with bank fraud and identity theft, U.S. Attorney Craig Carpenito announced.
Benjamin Rich, 40, of Edison, New Jersey, and Frank Ambrosio, 35, and Felix Alamo, 59, both of Brooklyn, are each charged by complaint with conspiracy to commit bank fraud and aggravated identity theft. Rich and Alamo are scheduled to appear today by videoconference before U.S. Magistrate Judge James B. Clark III. Ambrosio remains at large.
According to the documents filed in this case and statements made in court:
Rich, Ambrosio, and Alamo, and others, allegedly conspired to defraud banks across New Jersey, and elsewhere, by using the personal identification information (PII) of victims to open fraudulent bank accounts in order to deposit fraudulently obtained checks. Rich would obtain checks that were either stolen or counterfeited. He would then create sham businesses with names closely resembling those of the payees appearing on the stolen or counterfeited checks. For example, if defendant Rich obtained a check made payable to “ABC Corp.,” he would create a sham business called “ABC LLC.” Rich would later provide Ambrosio, Alamo, and other conspirators, with fraudulent identification documents bearing their photographs and the victims’ PII and business opening documents in order to open the fraudulent bank accounts for the sham businesses. The conspirators would deposit the fraudulently obtained or counterfeited checks into those fraudulent bank accounts and then withdraw the funds before anyone could detect the fraud.
The charge of bank fraud carries a maximum of 30 years in prison and a maximum fine of $1 million, or twice the gain derived or loss caused by the offense, whichever is greater. The charge of aggravated identity theft carries a statutory minimum term of imprisonment of two years in prison, which must run consecutively to any other term of imprisonment imposed, and a fine of $250,000, or twice the gain derived or loss caused by the offense.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Medical Assistant Admits Role in Genetic Testing Kickback and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania medical assistant today admitted participating in a conspiracy to receive bribes and kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced.
Amber Harris, 28, of Lake Ariel, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with one count of conspiring to violate the anti-kickback statute.
Harris is the first of several defendants to plead guilty in long-running bribery and kickback schemes involving doctors and medical employees in the Scranton, Pennsylvania, area.
According to documents filed in this case and statements made in court:
Harris worked as a medical assistant for Yitzachok “Barry” Kurtzer, a primary care physician with offices in the Scranton area. From at least 2018, Kurtzer and his wife, Robin Kurtzer, accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Kurtzer’s offices.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued with their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a cell phone money transfer app.
Harris and another employee, Shanelyn Kennedy, also participated in the scheme. They both helped collect the DNA swabs in exchange for also receiving kickbacks and bribes, both in cash and later using the money transfer app.
As a result of the scheme, Medicare paid $755,241 for genetic tests generated from Kurtzer’s practice.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for Jan. 5, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges against and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Marina del Rey Man Agrees to Plead Guilty to Wire Fraud Charge that His Forex Trading Business Instead Was $3.3 Million Ponzi SchemeRead the Press Release
LOS ANGELES – An accountant has agreed to plead guilty to a federal charge that he ran a $3.3 million Ponzi scheme that falsely promised generous returns for foreign exchange currency investors, and he facilitated the scheme in part with money he embezzled from his former employer, the Justice Department announced today.
Steven F. Brown, 52, of Marina del Rey, agreed to plead guilty to a one-count criminal information charging him with wire fraud. The criminal information and a related plea agreement were filed on August 28 in United States District Court in downtown Los Angeles, where Brown is scheduled to make his initial court appearance on September 15.
According to his plea agreement, Brown controlled and operated Alpha Trade Analytics, Inc., a financial consulting and investment company he largely ran out of his home. Neither Brown nor Alpha Trade was a registered broker or dealer in securities. Brown also served as the accountant for a non-profit organization providing dance and theater arts education to children and young adults in Los Angeles, and had access to its bank accounts.
From April 2014 to May 2018, Brown solicited investments in Alpha Trade, including from people he encountered through his position with his employer, and through his relationship with its executives and employees, which afforded him access to high-net-worth individuals.
To encourage those individuals to invest with Alpha Trade, Brown falsely promised that their investments would only be used for foreign exchange (Forex) currency trading and that they would receive guaranteed monthly payouts of around 10%. He also falsely represented that he had extensive experience in Forex investing, regularly made profitable trades, and achieved substantial and growing rates of return that exceeded the industry average.
Contrary to his representations to investors, Brown only used a small portion of the total amount invested in Alpha Trade for Forex trading, mostly in 2015. Instead, he routinely used investor funds for other purposes, including his rent, car payments, restaurant and retail expenses, and lulling payments to other investors, the plea agreement states.
In order to induce investors to maintain or supplement their investments with Alpha Trade and to conceal his scheme, Brown periodically provided investors with account statements that reflected fabricated investment returns that often showed steady, significant gains.
Brown admitted he made some of the promised recurring payouts and provided demanded refunds, not based on any Forex investment returns, but instead from money stolen from new investors and through funds he embezzled from the dance academy through unauthorized wire transfers, credit card advances, and cash withdrawals he was able to make by virtue of his position as the dance academy’s accountant.
In total, Brown caused losses of approximately $3,313,346 to more than 10 victims, including nearly $700,000 in losses to his former employer based on the money he embezzled from it, according to the plea agreement.
When Brown enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison.
The Securities and Exchange Commission today announced a settlement agreement with Brown in relation to his Ponzi scheme.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorney Kristen A. Williams of the Major Frauds Section.
Man Tat Le Sentenced to 84 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
SALT LAKE CITY – Man Tat Le, aka Asian Le, pleaded guilty to distribution of methamphetamine Wednesday morning and was sentenced to 84 months in federal prison. U.S. District Judge Dale A. Kimball imposed the sentence.
Le, 45, of West Valley City, was charged with distribution of methamphetamine in January after law enforcement officers received information indicating Le was engaged in narcotics trafficking. Special agents of the Utah State Bureau of Investigation (SBI), in conjunction with the FBI’s Safe Street Task Force, conducted a controlled purchase of methamphetamine from Le on Jan. 22, 2020, utilizing a confident human source (CHS). Le sold the CHS approximately 3 ounces of methamphetamine.
Le was arrested in January after leading members of the law enforcement officers on a chase. A West Valley City police officer tried to pull Le over. Le sped away from the officer and a 20-minute chase began. He was taken into custody in Salt Lake City after officers spiked his tires, he crashed his car, and officers captured him as he attempted to flee the scene.
This is Le’s third federal conviction for possession of methamphetamine with intent to distribute. Previous convictions were in June 2012 and September 2018.
Le is affiliated with the Oriental Laotian Gang in Utah. Federal prosecutors, partnering with local, state, and federal law enforcement agencies and county attorneys in Utah, have filed 476 gang cases since January 2018. A substantial majority of these cases include multiple defendants.
“Far too many offenders cannot leave their criminal conduct behind and continue to negatively impact the peace and safety of Utah communities. This conviction and prison sentence will ensure a seven year respite from this offender’s reckless actions that orbit around gang affiliation and drug distribution,” U.S. Attorney John W. Huber said today. “He will be out of our state since there are no federal prisons in Utah, and there is zero chance of parole in the federal system.”
"The public shouldn't have to deal with violent offenders like Man Tat Le, who repeatedly brought dangerous drugs into our communities," said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. "The purpose of the FBI's Safe Streets Task Force is to keep our communities safe from criminals like Le, who mistakenly believe they are above the law and won't face tough consequences for their crimes."
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Agents and officers with the FBI’s Safe Streets Task Force, Utah SBI, and West Valley City and Salt Lake City police departments are investigating the case.
Los Banos Man Sentenced for Poly-drug Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Oscar Rene Marrot-Garcia, 27, of Los Banos, was sentenced today to 6.5 years in prison for conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced.
His sentence follows his guilty plea earlier this year. In pleading guilty, Marrot-Garcia acknowledged that he rented a residence in a rural location in Madera for the purpose of manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied residence in Madera. He also acknowledged that he assisted in packaging the drugs for distribution. According to his plea agreement, at the end of January 2019, detectives of the Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET) executed a search warrant at the residence and found Marrot-Garcia along with Francisco Alcantar-Miranda, 31, and Jose Monge-Ponce, 31, both of Mexico. The detectives found over 10 pounds of methamphetamine in crystallized form and in liquid, 4 pounds of heroin, 1 pound of cocaine, and 25 pounds of marijuana. U.S. District Judge Dale A. Drozd also ordered Marrot-Garcia to forfeit a handgun and approximately $18,000 in cash, which officers located at the residence.
Alcantar-Miranda previously entered a guilty plea and was sentenced to 10 years in prison. Monge-Ponce is scheduled for a Status Conference on Nov. 30. The charges against Monge-Ponce are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by MADNET and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol-Fresno, the Sheriffs’ Offices of Tulare and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Justice Department Reaches Settlement with City of San Antonio for Illegally Auctioning Servicemembers' VehiclesRead the Press Release
The Justice Department today announced that it has reached an agreement with the City of San Antonio, Texas to resolve allegations that the city violated the Servicemembers Civil Relief Act (SCRA) by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining court orders.
Under the agreement, San Antonio must pay $47,000 to compensate two servicemembers who complained that the city unlawfully auctioned off their cars while they were in military service. The city must also establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated and pay a $62,029 civil penalty to the U.S. Treasury.
The agreement, which is subject to court approval, resolves a suit filed today by the Department of Justice in the U.S. District Court for the Western District of Texas.
“Servicemembers who serve our country honorably should not have to come home to find that that their only means of transportation and its contents have been auctioned off to the highest bidder,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that the city has worked cooperatively with the department to reach a settlement that will compensate all the servicemembers who lost their vehicles and will provide additional protections for the thousands of servicemembers stationed in and around San Antonio.”
“I am proud that our office was able to reach a settlement with the City of San Antonio to protect servicemembers who are deployed overseas,” said U.S. Attorney John Bash for the Western District of Texas. “When servicemembers are fighting for our country, they should not have to worry that their vehicles will be gone when they return home.”
The department launched its investigation after receiving a complaint from U.S. Air Force Staff Sergeant Paula Rangel, alleging that the city had towed and auctioned her vehicle while she was deployed to Afghanistan. After learning that her vehicle had been impounded at the city’s Growdon Road Vehicle Storage Facility, Staff Sergeant Rangel and her military legal assistance attorney called the facility on several occasions to try to arrange for the release of her vehicle. During these phone calls, they identified Staff Sergeant Rangel as an active duty servicemember who was deployed overseas. Despite these efforts, employees at the storage facility refused to release the vehicle to members of Staff Sergeant Rangel’s military unit and would not allow them to remove her personal property and military equipment from the vehicle. On Sept. 21, 2016, the city, through its contractual agent, UR Vehicle Management Solutions, sold the vehicle at auction for $6,600, without obtaining the court order required by the SCRA.
The department’s investigation revealed that between 2011 and 2019, San Antonio auctioned at least 227 vehicles registered to SCRA-protected servicemembers without obtaining the required court orders. In some cases, the city auctioned vehicles that listed the name of a military installation as a part of the registered owner’s address. The settlement requires San Antonio to adopt new procedures to investigate the military status of any registered owner prior to auctioning a vehicle. The city will also be required to obtain a court order or a valid SCRA waiver prior to auctioning a vehicle owned by a protected servicemember.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.
Justice Department Issues Modernized Merger Remedies ManualRead the Press Release
The Department of Justice issued today the Merger Remedies Manual, which provides a framework for the Antitrust Division to structure and implement appropriate relief that preserves competition in merger cases. The Merger Remedies Manual updates the Antitrust Division’s 2004 Policy Guide to Merger Remedies.
“The modernized Merger Remedies Manual reflects our renewed focus on enforcing obligations in consent decrees and reaffirms the Division’s commitment to effective structural relief,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “It will provide greater transparency and predictability regarding the Division’s approach to remedying a proposed merger’s competitive harm.”
The Merger Remedies Manual is the first revision of the Antitrust Division’s remedies manual in nearly a decade and reflects important changes in the merger landscape over that time. The modernized document includes new sections explaining the approach that the division takes with consummated transactions and upfront buyers. In addition, the Merger Remedies Manual outlines certain “red flags” that in the division’s experience increase the risk that a remedy will not preserve competition effectively. Finally, the manual reflects important principles implemented in recent Antitrust Division consent decrees, such as when it may be appropriate to name the divestiture buyer as a party to the consent decree or when it may be appropriate that the divestiture include assets beyond the overlapping relevant markets.
The manual reflects the key elements of the Division’s approach to merger remedies.
Commitment to Effective Structural Relief. The Merger Remedies Manual emphasizes that structural remedies are strongly preferred in horizontal and vertical merger cases because they are clean and certain, effective, and avoid ongoing government regulation of the market. The manual also describes the limited circumstances in which conduct remedies may be appropriate: (1) to facilitate structural relief, or (2) if there are significant efficiencies that would be lost through a structural divestiture, if the conduct remedy would completely cure the competitive harm, and if it can be enforced effectively.
Renewed Focus on Enforcing Consent Decree Obligations. The principles outlined in the Merger Remedies Manual describe how the Antitrust Division will ensure that consent decrees are fully implemented. The manual describes several standard consent decree provisions designed to improve the effectiveness of consent decrees and the Antitrust Division’s ability to enforce them. In addition, the Manual highlights the role of the newly created Office of Decree Enforcement and Compliance, which oversees the Antitrust Division’s decree compliance efforts.
The Merger Remedies Manual also outlines the following key principles that apply to structuring and implementing remedies in all the Antitrust Division’s merger cases, both horizontal and vertical:
- Remedies must preserve competition.
- Remedies should not create ongoing government regulation of the market.
- Temporary relief should not be used to remedy persistent competitive harm.
- The remedy should preserve competition, not protect competitors.
- The risk of a failed remedy should fall on the merging parties, not on consumers.
- The remedy must be enforceable.
The Merger Remedies Manual is the culmination of a process first announced by Assistant Attorney General Delrahim in September 2018, when the division withdrew the 2011 Policy Guide to Merger Remedies and announced that the 2004 Policy Guide to Merger Remedies would be in effect pending the release of an updated policy.
Ithaca Man Sentenced to Five Years of Probation for Filing a False Tax ReturnRead the Press Release
SYRACUSE, NEW YORK – William Harrell, age 58, of Ithaca, New York, was sentenced yesterday to five years of probation for filing a false tax return, announced Acting United States Attorney Antoinette T. Bacon and Jonathan D. Larsen, Special Agent in Charge of Internal Revenue Service-Criminal Investigation, New York Field Office.
As part of his previous guilty plea, Harrell admitted that in October 2016, he filed a tax return for the year 2015 in which he knowingly and willfully underreported revenue he received through his construction and remodeling business. Harrell also admitted to underreporting revenue for the years 2012-14, and 2016. Harrell failed to report approximately $3,994,866 in income, as result of which he avoided paying $422,843 in federal incomes taxes.
The court also ordered Harrell to pay restitution to the IRS in the amount of $907,669.75, which included unpaid taxes, interest, and penalties.
This case was investigated by Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Investigation into Theft at Winnfield Firearms Store Leads to Guilty Plea in Federal CourtRead the Press Release
ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that a Winnfield man pleaded guilty today to stealing firearms from a local store.
Joe Louis Anderson, 53, of Winnfield, Louisiana, pleaded guilty before United States District Judge Dee D. Drell to one count of theft of firearms from a federal firearms dealer. Evidence introduced at the hearing established that during the early morning hours of July 25, 2019, Anderson unlawfully entered the Governor’s Affair store and stole five firearms from the firearm display case. The store had surveillance video of Anderson stealing the firearms and leaving the store with them.
Anderson has a lengthy criminal history, with previous convictions for second degree burglary and possession of stolen vehicle (1991); possession of stolen vehicle and larceny (1992); second degree burglary and knowingly concealing stolen property (1995); larceny of an automobile (1997); and possession of contraband in penal institution (1998).
Anderson faces 10 years in prison, not more than three years of supervised release and a $250,000 fine. The court set the sentencing date for December 4, 2020 at 11:00.
The ATF and Winnfield Police Department investigated the case. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
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International money laundering, drug trafficking and illegal wildlife trade operation dismantledRead the Press Release
Operation Apex imageSAVANNAH, GA: An international conspiracy that profited from drug trafficking and the illegal wildlife trade and conspired to hide the illegal nature of the proceeds has been shut down in a multi-agency law enforcement operation.
Initiated by the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, Operation Apex brought together multiple agencies under the umbrella of the Organized Crime Drug Task Forces (OCDETF) to target two businesses, in Florida and California, and a dozen individual defendants whose activities included international trade in illegal wildlife products, trafficking in marijuana, and a money laundering conspiracy to disguise the massive proceeds of the unlawful activities that spanned at least a 10-year period, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Following the unsealing of an indictment in U.S. District Court for the Southern District of Georgia, agents from the U.S. Fish and Wildlife Service (USFWS), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the U.S. Marshals Service arrested 12 defendants and conducted 22 federal search warrants from coast to coast, including the Southern District of Georgia, the Northern District of Georgia, the Northern District of Florida, the Eastern District of Michigan, the Central District of California, and the Northern District of California.
“Fearless and aggressive law enforcement brought an end to this sprawling, transnational conspiracy. In the end, the size of the conspiracy was overwhelmed by a coordinated law enforcement effort to infiltrate, document and dismantle it,” said U.S. Attorney Christine. “United with our partner agencies, we have shut down an operation that fed a seemingly insatiable overseas appetite for illegally traded wildlife, and seized ill-gotten assets derived from that despicable criminal enterprise.”
The indictment in Operation Apex charges 12 defendants and two businesses with Mail and Wire Fraud Conspiracy; Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; and Money Laundering Conspiracy. The charges carry potential penalties of up to life in federal prison, where there is no parole.
As alleged in the 37-page indictment, conspirators in multiple locations in the United States, including the Southern District of Georgia, and in Hong Kong, Mexico, Canada, and elsewhere, were involved in the Wu transnational criminal organization that engaged in wildlife trafficking, shark finning, drug trafficking and money laundering.
The indictment alleges that the conspiracy began as early as 2010 as members of the conspiracy submitted false documents and used sham businesses and dozens of bank accounts to hide proceeds from the illegal activities. The indictment states that members of the conspiracy would deposit bulk cash from illegal activities, including wildlife trafficking and drug trafficking, into third-party business accounts that dealt in gold, precious metals, and jewels, to hide the illegal activities. Conspirators also deposited millions of dollars from illegal activities into third-party business accounts located in the United States, Mexico, and Hong Kong, in an effort to hide the illegal profits.
Shark finning is the barbaric practice of catching sharks at sea, cutting off their fins and throwing the injured shark back into the ocean to die. Shark finning is aimed at supporting the demand for shark fin soup, an Asian delicacy. Certain species of sharks are protected wildlife under federal and state law to ensure their continued sustainability.
During the arrests of the defendants and searches of their homes and workplaces, agents seized more than $3.9 million in multiple bank accounts; approximately $3 million in gold, silver, and other precious metals, along with $1 million in diamonds; approximately 18,000 marijuana plants and 34.5 pounds of processed marijuana; multiple firearms; and documented the harvest of more than six tons of shark fins. Agents also seized 18 totoaba fish bladders, a delicacy in Asia harvested illegally from an endangered species. Defendants charged in the case are:
- Serendipity Solutions LLC, of San Bruno, Calif.;
- Phoenix Fisheries LLC, of Southport, Fla.;
- Terry Xing Zhao Wu, 45, of Burlingame, Calif.;
- Natalie Ye Man Chan Wu, 38, of Burlingame, Calif.;
- Woonjin Lam, 43, of San Francisco;
- Anthony Wu, 24, of San Francisco;
- Billy Chen, 61, of Walnut, Calif.;
- Ying Le Pang, 47, of San Lorenzo, Calif.;
- Mark Leon Harrison, 59, of Southport, Fla.;
- Heather Huong Ngoc Luu, 46, of Westminster, Calif.;
- Lam Phuoc Quang, 47, of Pasadena, Calif,;
- Kevin Chinh Nguyen, 40, of Tucker, Ga.;
- Elias Samuel Castellanos, 54, of Scottsdale, Ariz., and,
- Terry Louis Shook, 56, of Grosse Pointe Park, Mich.
“The Trump Administration believes in law enforcement and tackling wildlife trafficking. By successfully dismantling this criminal operation, we are unveiling the true nature of criminal syndicates, in which species like sharks and totoaba are the silent victims,” said Aurelia Skipwith, Director of the U.S. Fish and Wildlife Service. “I applaud and thank our partners at the U.S. Department of Justice, U.S. Drug Enforcement Administration, U.S. Marshals Service, U.S. Postal Inspection Service and Homeland Security Investigations for their assistance with this case. Together, we will continue to protect imperiled species for future generations.
“Removing dangerous drugs from the streets and hitting drug traffickers in their ‘pockets’ are both integral parts of dismantling sophisticated drug distribution networks, as was the case in this investigation,” said the Special Agent in Charge of DEA’s Atlanta Field Division Robert J. Murphy. “Their money is their lifeline and without it, their drug distribution activities cannot survive. This investigation was a success because of the investigative efforts by a collection of federal, state and local law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office.”
“Transnational criminal organizations continue to pose a significant threat to national and international security,” said Christopher Kennally, Savannah CBP Area Port Director. “Our officers’ expertise, along with the utilization of available tools, and valuable partnerships resulted in the arrest of these criminals. Our communities can feel safer knowing that the men and women of CBP are securing their borders.”
“It’s a sad day when not even the sharks in the ocean are safe from the greed of criminal organizations,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta is a proud to have been a part of this operation and to work alongside our federal, state, and local partners to protect our communities and oceans.”
“The United States Postal Inspection Service stands ready and committed to assist its local, state and federal law enforcement partners in any type of investigation,” said USPIS-Miami Division Inspector in Charge Antonio Gomez. “This case highlights the great working relationships between all of the involved agencies, and serves as a reminder that criminal activity involving the mail will be identified and prosecuted to the fullest extent of the law.”
An indictment is only a charge and is not evidence of a crime. Defendants are presumed innocent unless and until convicted in a court of law.
Operation Apex is an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Agencies conducting the investigation include the U.S. Fish and Wildlife Service Special Investigations Unit, the U.S. Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, and Homeland Security Investigations, in conjunction with state and local agencies including the Georgia Department of Natural Resources.
The case is being prosecuted for the United States by Assistant U.S. Attorneys E. Greg Gilluly Jr., Tania Groover, Xavier Cunningham, and Joshua Bearden, with assistance from Trial Attorney Joseph Palazzo and the Money Laundering and Asset Recovery Section of the U.S. Department of Justice.
Idaho Falls Man Sentenced to over Five Years in Federal Prison for Possession of Child PornographyRead the Press Release
POCATELLO – Arnulfo Gonzales-Torres, 23, of Idaho Falls, was sentenced in U.S. District Court to 63 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Gonzales-Torres to serve 15 years of supervised release following his prison sentence. Gonzales-Torres pleaded guilty to the charge on February 25, 2020.
According to court records, between May and July 2019, a detective with the Idaho Internet Crimes Against Children (ICAC) Task Force downloaded several files of child pornography that were made available by Gonzales-Torres’ computer via a peer-to-peer network. Law enforcement obtained a search warrant for Gonzales-Torres’ Idaho Falls residence. ICAC Task Force members executed the search warrant and seized a desktop computer from Gonzales-Torres’ residence. A forensic examination of this device revealed approximately 1,251 images and 15 videos of child pornography. Gonzales-Torres admitted to detectives that he had downloaded and viewed child pornography through a peer-to-peer network and had stored child pornography on his computer.
Chief Judge Nye also ordered Gonzales-Torres to pay $6,000 in restitution to the victims in the images that he possessed. As a result of his conviction, Gonzales-Torres will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children Task Force, with assistance from Homeland Security Investigations in Idaho Falls, Idaho Falls Police Department, Rexburg Police Department, and Bonneville County Sheriff’s Office.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Guatemalan Man Illegally Entered U.S. 14 Times in 20 YearsRead the Press Release
RICHMOND, Va. – A Guatemalan man was sentenced today to 21 months in prison for illegal reentry of an immigrant after a felony conviction.
“Over the past 22 years, Diego Tino-Calvo has illegally entered the United States at least 14 times, and has been convicted of multiple drunk driving offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This recidivist behavior reflects a blatant disregard for our nation’s laws and borders, and represents a clear threat to public safety. The Department of Justice is committed to prioritizing criminal immigration enforcement, and this case reflects that continuing commitment.”
According to court documents, Diego Tino-Calvo, 45, first illegally entered the United States more than 20 years ago in 1998. Since then, Tino-Calvo illegally reentered the country at least 14 times. He has twice been convicted of illegal reentry of an immigrant in two separate federal courts. First, here in the Eastern District in 2011, and then later, in the District of Arizona in 2017. While in the United States, Tino-Calvo was convicted of multiple other crimes including several instances of Driving While Intoxicated. Tino-Calvo most recently came to the attention of immigration officials after he was arrested in November 2019 for Driving While Intoxicated in Richmond.
“Tino-Calvo is an illegal alien who has proven that he’s a public safety threat to communities across the country, as he repeatedly got behind the wheel while intoxicated,” said Matthew Munroe, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Washington, D.C. “ICE will reinstate his prior order of removal and return him to his home country upon completion of his prison sentence.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew Munroe, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Katherine Lee Martin prosecuted the case
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-1.
Greenfield Man Sentenced to 85 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Ira Weeks, 40, of Greenfield, was sentenced to 85 months in federal prison for participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Weeks conspired with others to distribute and possess with the intent to distribute fentanyl. Weeks obtained the fentanyl from a source of supply in Methuen, Massachusetts. As part of the investigation, in December 2017 the Drug Enforcement Administration (“DEA”) intercepted phone communications between Weeks and his co-conspirator wife in which the couple ordered quantities of fentanyl from their Methuen drug source. DEA subsequently surveilled Weeks in Methuen meeting with the drug source on approximately four occasions. The DEA and the New Hampshire State Police arranged to conduct motor vehicle stops on Week’s vehicle after observing him meet with his drug source. These stops resulted in the seizure of over 175 grams of fentanyl.
Weeks previously pleaded guilty on May 27, 2020. His wife, Shelley Weeks, was also indicted in the conspiracy. She pleaded guilty on March 26, 2020 and is awaiting sentencing.
“Interstate fentanyl traffickers make a deadly drug available for sale in our state,” said U.S. Attorney Murray. “The results have been disastrous. The substantial prison sentence imposed in this case should serve as a warning to those would choose to involve themselves in this dangerous business.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
Agencies participating in this investigation are part of 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.
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Gilmer County man sentenced to 14 years for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Waitman Larry Frederick, of Glenville, West Virginia, was sentenced today to 168 months of incarceration for his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Frederick, also known as “Cornbread,” age 43, pled guilty to one count of “Conspiracy to Distribute Methamphetamine,” one count of “Aiding and Abetting Possession with Intent to Distribute 50 Grams or More of Methamphetamine ,” one count of “Aiding and Abetting Maintaining Drug-Involved Premises ,” and one count of “Unlawful Possession of a Firearm” in November 2019.
Frederick admitted to working with others to distribute large quantities of crystal methamphetamine, also known as “ice,” from July 2018 to November 2018 in Gilmer County and elsewhere. Frederick also admitted to operating a residence located at 18 East Main Street, Apartment C in Glenville for the purpose of distributing the drug. He also was illegally in possession of 10 different firearms.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gilmer County man sentenced for role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah Lee Carr, of Glenville, West Virginia, was sentenced today to six months of incarceration to be followed by six months of home detention for his involvement in a methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Carr, age 33, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine in Proximity to a Protected Location” in August 2019. Carr admitted to selling methamphetamine near Glenville State College in September 2018 in Gilmer County.Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gilmer County man sentenced for role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Chet Atkins Massey, of Sand Fork, West Virginia, was sentenced today to six months of incarceration to be followed by six months of home detention for his involvement in methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Massey, age 51, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine in Proximity to a Protected Location” in September 2019. Massey admitted to selling methamphetamine near Gilmer County High School in September 2018 in Gilmer County.Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Fugitive Captured in Hampton Roads Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A North Carolina man was sentenced today to five years in prison for being a felon in possession of a firearm.
According to court documents, in January 2018, witnesses allegedly saw Japree Lortez Brooks, 36, Ahoskie, shoot two people, killing one, outside a club in Gates, North Carolina. Brooks, who is a Bloods gang leader, fled the state and was arrested on a fugitive warrant hiding out in Hampton Roads in possession of a handgun that he had traded for the murder weapon. Brooks is a convicted felon and therefore prohibited from possessing a firearm. During his arrest, Brooks attempted to bribe several of the arresting officers, offering $100,000 to cut him loose. The bribe was recorded on one of the arresting officer’s body-worn cameras.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-139.
Former Tacoma resident pleads guilty to production of images of child rape and abuseRead the Press Release
(Tacoma) - A former Tacoma resident, who was residing in South Bend, Indiana, at the time of his arrest, pleaded guilty today in U.S. District Court in Tacoma to production of child pornography, announced U.S. Attorney Brian T. Moran. SAMUEL PHILLIPS, 27, faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge Benjamin Settle on December 7, 2020.
According to the plea agreement, in March 2018, PHILLIPS was residing in a Tacoma apartment with a child under the age of 5, when he made video recordings of the sexual abuse. PHILLIPS relocated to Indiana in early 2019. His spouse discovered the videos on his phone. PHILLIPS was arrested by South Bend Police, who alerted the Tacoma Police Department. PHILLIPS was charged federally with production of child pornography on April 30, 2019. He is charged in state court with sexual abuse of the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.justice.gov/psc.
The case was investigated by the Tacoma Police Department and FBI, with assistance from the South Bend, Indiana, Police Department.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Former Executive Director and Three Contractors of the Mississippi Department of Education Charged with Conspiracy, Federal Bribery, Wire Fraud and Money LaunderingRead the Press Release
Jackson, Miss. – Cerissa Renfroe Neal, 45, of Madison County, David B. Hunt, 54, of Jackson, Tennessee, Joseph Kyles, 51, of Memphis, Tennessee, and Lambert Martin, 59, of Memphis, Tennessee, have been charged in a federal indictment with conspiracy, wire fraud, money laundering and bribery, announced United States Attorney Mike Hurst, Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi, Special Agent in Charge Neil E. Sanchez with the U.S. Department of Education, Office of Inspector General, and Mississippi State Auditor Shad White.
The indictment, returned by a federal grand jury on February 25, 2020, and recently unsealed by a federal court, charges Cerissa Renfroe Neal, the former Executive Director of the Mississippi Department of Education (“MDOE”), along with her co-defendants Joseph B. Kyles, David B. Hunt, and Lambert Martin, with one count of conspiracy to commit wire fraud and seven counts of wire fraud. The indictment also charges Neal and Kyles with one count of money laundering. Finally, Neal and Kyles are each also charged with three counts of bribery.
“Those who defraud the public’s trust will find themselves standing before a court of law to answer for their wrongs. Public corruption erodes faith in our democracy and decays the very soul of our form of government. Bringing to justice corrupt public officials has always been and remains a high priority of this office, and a personal mission of mine, and we will continue to pursue corruption wherever it may lead,” said U.S. Attorney Hurst.
According to the indictment, Cerissa Neal was the Executive Director of the Mississippi Department of Education during 2013-2016, when she conspired with the three named defendants and other conspirators, to defraud the State of Mississippi and the United States by bid-rigging, false quotes, and altered purchase orders, in order to make money and profit by defrauding the Mississippi Department of Education into awarding contracts and purchase orders at inflated prices, directed to conspirators and their businesses.
The indictment alleges that Neal, using her position within the Mississippi Department of Education, would split contract requests from one contract into multiple, smaller contracts, in order to avoid threshold amounts that would trigger a formal, competitive bidding process. Neal would entertain and advocate for a bid for the contract from one of the three conspirators’ businesses, including The Kyles Company in Memphis, Tennessee (Joseph Kyles), Doc Imaging (also d/b/a as “Hunt Services”) in Jackson, Tennessee (David Hunt), and Educational Awareness in Memphis, Tennessee (Lambert Martin). To meet the Department of Education requirement that such an informal bid have at least two competing vendor quotes for comparison, Neal would obtain false and inflated quotes, by herself and from the other conspirators, designed to make the intended conspirator’s business the lower bid, and to guarantee the award of the contract.
The indictment alleges that conspirators coordinated their submissions to the Department of Education as well as the sharing of the resulting contract payments. After the Department of Education made payment on the rigged contract to the conspirator-owned business, the winning bidder shared some of the money with conspirators, in return for their assistance in rigging the bid and winning the Department of Education contract. In this manner, Neal received more than $42,000 directly or indirectly from her conspirators. Kyles, Hunt, and Martin, through their respective businesses, garnered over $650,000 from the State of Mississippi, including federal funds granted by the U.S. Department of Education to Mississippi.
Hunt, Kyles and Martin will appear for arraignment September 10, 2020, before United States Magistrate Judge F. Keith Ball in Jackson at 2:30 p.m. Neal appeared in court for her arraignment on August 19, 2020, and was released on conditions of bond pending trial.
If convicted, each defendant faces maximum penalties of 20 years in prison for each count charged for conspiracy and wire fraud, and 10 years in prison for each count of money laundering and bribery. Each count also can merit a fine of up to $250,000.
The case has been assigned to Senior U.S. District Judge Tom S. Lee for trial.
U.S. Attorney Hurst commended the work of the Special Agents of the FBI’s Jackson Division and the Office of the Inspector General, United States Department of Education, as well as the Mississippi State Auditor’s Office and the Mississippi State Attorney General’s Office, who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Florida Man Pleads Guilty to Stealing Van from New York Hospital, Burglarizing Connecticut Post OfficeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEON CLINEDINST, 37, formerly of Ocala, Florida, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of burglary of a U.S. Post Office, and one count of interstate transportation of a stolen vehicle.
According to court documents and statements made in court, on the morning of Saturday, January 25, 2020, Clinedinst was discharged from Mount Sinai Hospital in New York City. Shortly after his discharge, Clinedinst stole a hospital van from the Mount Sinai garage and then drove the van to the U.S. Post Office located at 317 West Avenue in Stamford. He then entered the post office, which was closed at the time, through a mail chute. After Clinedinst’s actions triggered the security alarm, a responding law enforcement officer observed Clinedinst exit the front entrance with a large rolling bin filled with unopened packages. Clinedinst was detained, and a search of is person revealed several keys belonging to the post office. A subsequent search of the post office revealed a second large rolling postal bin filled with packages, and damage to the video surveillance security system.
At sentencing, which is not yet scheduled, Clinedinst faces a maximum term of imprisonment of 15 years.
Clinedinst has been detained since January 25, 2020.
This matter is being investigated by the U.S. Postal Inspection Service, the Stamford Police Department, and the New York City Police Department. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Federal Grand Jury Indicts Buffalo Man on Felon in Possession ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Denzel Robinson, a/k/a Sparks, 26, of Buffalo, NY, with being a felon in possession of a firearm and ammunition. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorneys Michael J. Adler and Charles E. Watkins, Jr., who are handling the case, stated that according to the indictment and a previously filed complaint, on April 28, 2020, the Buffalo Police Department executed a search warrant at the defendant’s Sun Street residence. During the search, investigators recovered quantities of suspected cocaine and marijuana; a .22 caliber rifle and ammunition; 9mm caliber ammunition; and 12 gauge ammunition.
In April 2018, Robinson was convicted of Bail Jumping in the Second Degree in Erie County Court. As a result, the defendant is legally prohibited from possessing a firearm and ammunition.
The indictment is the result of an investigation by the Buffalo Police Department, under the direction of commissioner Byron Lockwood; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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FBI Seeking Potential Victims in Jeffrey Pierce InvestigationRead the Press Release
KANSAS CITY, MO. – The FBI is asking for the public’s assistance to identify potential victims in the case of U. S. v Jeffrey Pierce. Pierce, a high school basketball coach at Seaman High School in Topeka, KS, was charged Sept. 2, 2020, with sexually exploiting minors. Using social networking platforms, Pierce is alleged to have contacted his victims while pretending to be a female teenager. He would then solicit explicit photos or videos from the juvenile victims.
Pierce used the following user/vanity names when contacting his victims through Instagram, Snapchat, KiK, and Grinder:
Instagram : addie8651, addiestrode111, Addie Strode, Kennedy Addison Strode
Snapchat : jp131780 (Addilyn), Jordan_reh (Kennedy), Kennedy Lacrone, Jordy Rey Rey, jacy townsend
KiK: jordyreyrey (Addie Strode) (Kennedy)
Grinder: Discreet
Pierce, a 40-year-old U.S. citizen, is currently in federal custody and is charged in the United States District Court for the District of Kansas with two counts of producing child pornography and one count of possessing child pornography.
If you have reason to believe you or your child may be a victim, please email [email protected]. Your response is voluntary but would be useful in the federal investigation and to identify you as a potential victim. Based on the response provided, you may be contacted by the FBI and asked to provide additional information.
The FBI is legally mandated to identify victims of federal crimes that it investigates and provide these victims with information, assistance services, and resources.
Eighth Person Sentenced as A Result of Major Black-Market Marijuana InvestigationRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Fudong Wu, age 40, of Aurora, and a Chinese national and legal permanent resident of the United States, was sentenced to serve 15 months in federal prison, followed by 2 years on supervised release, for maintaining a drug-involved premises. Wu appeared at the sentencing hearing remotely. Wu will voluntariy surrender to the U.S. Bureau of Prisons by October 7, 2020. The Denver Division of the DEA joined in today’s announcement.
According to the stipulated facts in his plea agreement, during the investigation agents learned that an address in Aurora used wattage which was far in excess of normal. They determined that the residence was in Wu and his wife’s name, and had been using excessive electricity from May 2018 to September 2018, indicating that the marijuana grow was present in the home during that period.
On October 10, 2018, agents executed a search warrant at the Aurora residence. Both Wu and co-defendant Hanli Yang lived at the residence since they purchased it in March 2018. Wu and Yang were present when agents entered the residence. The two are married with two children in the home.
In the basement, agents found a marijuana grow with 1,121 marijuana plants in various stages of maturity. Additionally, law enforcement found two pounds of dried marijuana and a notebook with grow notes. The grow was established by Wu, who was primarily responsible for cultivating the marijuana plants. The marijuana was intended for distribution.
Also during the search, agents located a storage locker invoice addressed to Wu. Wu consented to a search of the locker where agents seized $72,081 in cash and additional grow notes. The seized cash was derived from the sale of marijuana cultivated at the residence.
Co-defendant Hanli Yang was previously sentenced to serve 24 months on probation. In total, eight individuals, including Wu, have been sentenced as part of this investigation.
“This sentence is just one of many we expect to result from the investigation that began in 2017 and is still on-going,” said U.S. Attorney Jason Dunn. “These are large-scale commercial growers hiding in plain sight in hundreds of neighborhoods across Colorado. We will continue to search for them, and when we find them we will prosecute to the full extent of the law.”
“This case was part of a larger illicit marijuana distribution network and is another example of how the DEA and our law enforcement partners will not rest while criminals continue to exploit Colorado’s marijuana laws for profit,” said DEA Special Agent in Charge Deanne Reuter. “I want to make it clear that when criminals break the law in our community, the DEA will investigate and prosecute them wherever they’re found.”
The prosecution of Mr. Wu is part of a significant operation into the production and distribution of black market marijuana, first announced on May 24, 2019. (https://www.justice.gov/usao-co/pr/forty-two-individuals-arrested-one-largest-black-market-marijuana-takedowns-colorado)
The sentence was pronounced by U.S. District Court Judge William J. Martinez on September 2, 2020. The guilty plea was entered on December 18, 2019. Wu was indicted by a federal grand jury on February 21, 2019. This case was investigated by the DEA. The defendants were prosecuted by Assistant U.S. Attorney Aaron Teitelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-083.
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.
Duluth Souvenir and T-Shirt Store Owner Charged with Tax Evasion, Failure to Pay Employment TaxRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging SHIMON SHAKED, 56, with tax evasion, failure to file a tax return, and failure to account for and pay employment tax. SHAKED made his initial appearance today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment and documents filed with the court, SHAKED owned and operated several t-shirt and souvenir shops in Duluth’s Canal Park tourist zone, including I Love Duluth, I Love Duluth 2, Up North-The Good Life, and the Lake Life (the “Duluth Stores”). SHAKED operated the Duluth Stores under a holding company called ALMS18, LLC, which he formed in 2012. Although SHAKED owned, operated, and controlled ALMS18, LLC, he listed his then 18-year old daughter as the nominal owner in order to hide and evade taxes on income he received from the company.
According to the allegations in the indictment and documents filed with the court, SHAKED did not report the revenue and income he earned from the Duluth Stores on his tax returns from 2013-2015; instead, he reported the revenue and income on his daughter’s income tax returns. SHAKED further evaded the assessment of taxes on the income he earned through the Duluth Stores by failing to report the full revenue and income to the Internal Revenue Service (IRS). Specifically, SHAKED reported the credit card sales for the Duluth Stores, but failed to report or pay taxes on the majority of the cash sales on both his daughter’s returns or on his own tax returns. SHAKED used the company’s bank account to pay for personal expenses including child support, an apartment in Duluth, costs associated with attempting to open an alligator farm in Florida, and other personal loans.
According to the allegations in the indictment and documents filed with the court, in 2017 and 2018, SHAKED opened two more souvenir stores, I Love Marquette and I love Frankenmuth, both in Michigan. SHAKED did not file a 2018 tax return. In all, SHAKED failed to report more than $4 million in income from 2013 through 2018. SHAKED evaded and avoided paying more than $800,000 in federal income taxes.
According to the allegations in the indictment and documents filed with the court, SHAKED hired both American and international students to work at both the Duluth Stores and the Michigan Stores. The international students were in the United States on J-1 exchange-visitor visas. J-1 visas are non-immigrant visas for individuals approved to participate in programs that promote cultural exchange, especially to obtain medical or business training within the United States. SHAKED regularly paid some or all of his employees’ wages in cash. In doing so, SHAKED failed to account for and pay over to the IRS some or all of the required federal payroll taxes due and owing for those employees.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant U.S. Attorney Joseph H. Thompson and Angela M. Munoz are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
SHIMON SHAKED, 56
Duluth, Minn.
Charges:
- Tax evasion, 5 counts
- Failure to file a tax return, 1 count
- Failure to Account for and Pay Over Employment Tax, 14 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Dominican National Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for distributing fentanyl.
Yokasta Aybar-Soto, 27, was sentenced by U.S. District Court Judge William G. Young to 13 months in prison and one year of supervised release. Aybar-Soto will face deportation proceedings upon completion of his sentence. In June 2020, Aybar-Soto pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. Aybar-Soto was initially charged by criminal complaint and has been in custody since September 12, 2019.
With a companion, Aybar-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
Disbarred Attorney Charged in White Plains Federal Court for Stealing 9/11 Victim Compensation FundsRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Kenneth R. Dieffenbach, Special Agent in Charge of the Fraud Detection Office of the Department of Justice Office of the Inspector General (“DOJ-OIG”), announced today the unsealing of a Complaint charging a disbarred attorney with theft of government funds. GUSTAVO L. VILA, the defendant, allegedly stole approximately $1 million that the Department of Justice’s 9/11 Victim Compensation Fund had awarded to the defendant’s client, a 9/11 first responder. The defendant was arrested today and presented in White Plains federal court before United States Magistrate Judge Paul E. Davison.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Gustavo Vila stole money awarded to his client – an NYPD officer and 9/11 first responder – by the 9/11 Victim Compensation Fund. Vila allegedly lied to his client, telling the client for more than three years that the money Vila stole had yet to be released by the Fund. Further, Vila lied to his client about his standing, continuing to hold himself out as an attorney even after he had been disbarred. Now Gustavo Vila has been charged with theft of government funds.”
DOJ-OIG Fraud Detection Office Special Agent in Charge Kenneth R. Dieffenbach said: “Vila allegedly attempted to profit off of the suffering of a retired NYPD officer who risked his life at Ground Zero. Because of Vila’s alleged greed, the victim never received about $1 million he was awarded from the 9/11 Victims Compensation Fund.”
As alleged in the Complaint unsealed today in White Plains federal court[1]:
In the wake of the September 11 terrorist attacks, Congress created the September 11th Victim Compensation Fund (“VCF”) to provide compensation with federal government funds to any individual who suffered physical harm or was killed as a result of the terrorist attacks, or as a result of the debris removal efforts that took place in the immediate aftermath of those attacks. The original VCF operated from 2001-2004. President Obama and President Trump reactivated the VCF, authorizing it to operate through October 2016, and December 2020, respectively. Claimants seeking compensation from the VCF were authorized to work with an attorney and have the attorney, on the claimant’s behalf, submit a claim to, and receive the claimant’s award from, the VCF. An attorney’s fees were limited to 10% of a VCF award.
From at least in or about 2012 through at least in or about 2019, GUSTAVO L. VILA, the defendant, represented a retired New York City Police Department Officer (“Victim-1”) in connection with Victim-1’s claim for compensation from VCF. Victim-1 was diagnosed with, and suffered from, serious, life-threatening medical conditions, including cancer, as a result of rescue and recovery work he performed at Ground Zero. Throughout his representation of Victim-1, VILA held himself out as an attorney to Victim-1 and to VCF, despite the fact that in 2015, VILA was disbarred.
In or about May 2013, GUSTAVO L. VILA, the defendant, submitted a claim to VCF on behalf of Victim-1. VILA also submitted forms to the VCF authorizing the VCF to deposit Victim-1’s compensation award directly into a bank account controlled by VILA’s law firm (the “Bank Account”). On or about September 13, 2016, the VCF authorized an award to Victim-1 of approximately $1,030,622.04.
On or about October 12, 2016, the VCF deposited the full amount of Victim-1’s award into the Bank Account. At that point, VILA was required to distribute all of that money, less 10% for his purported attorney’s fees, to Victim-1. VILA, however, did not distribute any of that money to Victim-1 or otherwise inform Victim-1 about this deposit. Rather, VILA allegedly kept almost the entire amount of that award for himself and used that money for his own personal benefit, including to pay his own taxes. From in or about October 2016 to in or about February 2020, VILA falsely represented to Victim-1 that the VCF had not yet released the majority of Victim-1’s VCF award, when in fact, the entire award had been released for Victim-1’s benefit in October 2016.
* * *
VILA, 62, of Yorktown Heights, New York, is charged with one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2, which carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of DOJ-OIG’s Fraud Detection Office.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Defendants Sentenced to 20 Years in KCK Meth Lab FireRead the Press Release
KANSAS CITY, KAN. – Two defendants who were arrested after their meth lab caught fire were sentenced today to federal prison, U.S. Attorney Stephen McAllister said.
Orlando Cortez-Nieto, 43, Kansas City, Kan. and Jesus Cervantes-Aguiler, 23, Kansas City, Kan., were sentenced to 20 years each.
During a jury trial in July 2019, the defendants were convicted on charges including conspiracy and possession with intent to distribute methamphetamine.
During trial, prosecutors presented evidence that on Dec. 1, 2017, firefighters responded to a house fire at 2739 Cleveland in Kansas City, Kan. They discovered a methamphetamine conversion lab inside the house. Prosecutors introduced evidence tying the defendants to the drug lab, including a blue spiral notebook in which cash transactions were recorded, as well as multiple receipts and corresponding business surveillance videos showing both defendants purchasing items found in the meth lab.
McAllister commended the Drug Enforcement Administration, Assistant U.S. Attorney Kim Flannigan and Assistant U.S. Attorney Trent Krug for their work on the case.
Dansville Man Arrested, Facing Multiple Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Cody Burgess, 29, of Dansville, NY, was arrested and charged by criminal complaint with production, receipt, and distribution of child pornography, and possession of child pornography involving prepubescent minors. The charges carry a minimum penalty of 15 years in prison, and a maximum of 30 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in July 2019, the National Center for Missing and Exploited Children (NCMEC) received a tip that an individual using the e-mail address “[email protected]” and the username “cody428,” had uploaded two images of child pornography in June 2019. Subsequent investigation traced the e-mail address and user name to the defendant.
On July 30, 2019, the New York State Police executed a search warrant at the defendant’s residence on Van Campen Street in Dansville, and seized an Apple iPad Mini. During a review of the iPad Mini, the two images referenced in the tip to NCMEC were recovered. The iPad Mini also contained a video depicting a prepubescent female changing out of a two piece bathing suit, who appeared to have no knowledge of the fact that she was being video recorded. Another 32 images of child pornography were found on the iPad Mini as well as 41 images of child erotica.
The complaint is the result of an investigation by the New York State Police, under the direction of Acting Major Barry C. Chase, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Cresco Man Indicted for Online Child EnticementRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2020, Earnest Lee Pittman, Jr., age 45, of Cresco, Pennsylvania, was indicted by a federal grand jury on online child enticement charges.
According to United States Attorney David J. Freed, the indictment alleges that between August 4-12, 2020, Pittman used the internet, a computer and a cellular telephone in an attempt to entice an individual under the age of 18 to engage in sexual activities.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Kingston Municipal Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Convicted felon sentenced for firearms, ammunition possessionRead the Press Release
HELENA — A Helena man who admitted possessing five firearms and ammunition after having been convicted of a felony was sentenced today to 51 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Colter Joseph Epler, 40, pleaded guilty in June to prohibited person in possession of firearms and ammunition.
U.S. District Judge Sam E. Haddon presided.
In court documents filed in the case, the prosecution said that on June 24, 2019, Epler, a convicted felon on state supervision, possessed five firearms and ammunition at his residence. During a search of Epler's residence by Montana Probation and Parole officers after Epler admitted using alcohol, officers found a firearm in his hamper and four firearms in his garage, along with ammunition of various calibers. Epler was convicted of a felony in Lewis and Clark County in 2013 and was prohibited from possessing firearms and ammunition.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Department of Corrections--Probation and Parole Office.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Convicted Felon with Prior Domestic Violence Conviction Sentenced to Federal Prison for Being in Possession of AmmunitionRead the Press Release
Memphis, TN – Daniel Moore, 33, has been sentenced to 30 months in federal prison for being a convicted felon in possession of ammunition. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 28, 2019, at approximately 10:58 PM, Shelby County Sheriff’s Deputies responded to a call at a McDonald’s restaurant on Houston Levee road.
The restaurant manager observed a male, later identified as the defendant Daniel Moore, exiting a light blue Toyota Camry appear to have a seizure. According to the manager, Moore left the doors to the vehicle open and there appeared to be a child in the backseat with no coat, socks or shoes. When officers arrived on the scene, they observed the Toyota Camry occupied by a crying four-year-old female child in the rear-driver seat. The child was later released to the custody of her grandmother.
Officers also observed a non-responsive adult female, 31, in the front driver’s seat. Law enforcement extracted her from the vehicle and administered CPR and Narcan, at which time she started to breathe.When paramedics arrived on the scene, she was transported to Regional One for medical treatment. She was later arrested for the felony offense of child abuse and neglect; however, that charge was dismissed in state court.
Shortly thereafter Moore entered the McDonald’s restaurant and inquired about his daughter and wife. He admitted to law enforcement on body worn camera footage that he and the adult female had just ingested heroin. Officers asked if he had any more heroin in the vehicle. Moore answered "no." Officers also asked Moore for oral consent to search his vehicle, and he gave consent.
Deputies recovered five boxes (100 rounds) of 5.56 ammunition in the glove compartment, which he was attempting to sell. Officers also recovered a used syringe, a spoon containing a small-dirty cotton ball, an electronic scale and a kit containing cotton, alcohol swabs, and tourniquets.
Moore is a prohibited person with eight prior felony convictions and a conviction for a misdemeanor crime of domestic violence. As a result, he is prohibited by federal law from possession of firearms or ammunition.
On June 1, 2020, Moore pled guilty before U.S. District Court Judge Sheryl H. Lipman. On September 3, 2020, Judge Lipman sentenced Moore to 30 Months imprisonment followed by three years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms or ammunition, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that needs to be held accountable for the safety of the community."
The Shelby County Sheriff’s Office and Project Safe Neighborhoods Task Force investigated this case. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice 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.
Assistant U.S. Attorney Wendy K. Cornejo prosecuted this case on behalf of the government.
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Columbus man sentenced for meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Anthony Hill, Jr., of Columbus, Ohio, was sentenced today to 57 months of incarceration for his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Hill, also known as “Big Mike,” age 25, pled guilty to one count of “Possession With Intent to Distribute 50 Grams or More of Methamphetamine” in November 2019. Hill admitted to distributing more than 50 grams of methamphetamine, also known as “crystal” and “ice,” in November 2018 in Gilmer County. Hill also pled guilty in January 2020 to one count of “Possession With Intent to Distribute 50 Grams or More of Methamphetamine” from a crime that occurred in the Southern District of West Virginia. He was sentenced today for that crime to 57 months of incarceration to run concurrently to the Northern District of West Virginia case.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Colchester Woman Sentenced to Prison for Embezzling $400K from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VICKI MILLER, 57, of Colchester, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to six months of imprisonment, followed by two years of supervised release, for embezzling from her employer.
According to court documents and statements in court today, Miller was employed as a bookkeeper for Greylock Property Group LLC and its owner. Between approximately July 2017 and August 2018, Miller used her access to her employers’ bank accounts to embezzle $413,180 of their money by making withdrawals at ATMs, writing checks to herself, and transferring funds to her own accounts.
Judge Dooley ordered Miller to make full restitution, and to participate in mental health treatment and a gambling addiction treatment program while she is on supervised release.
Miller was arrested on February 13, 2019. On August 23, 2019, she pleaded guilty to one count of wire fraud.
Miller, who is released on a $50,000 bond, is required to report to prison on January 5, 2021.
The investigation was conducted by the Federal Bureau of Investigation with the assistance of the Town of Groton Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan Francis.
California Man Admits to Securities and Tax Offenses Related to $722 Million Bitclub Network Fraud SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted to conspiring to offer and sell unregistered securities and to subscribing to a false tax return in connection with his role in the BitClub Network, a cryptocurrency mining scheme worth at least $722 million, U.S. Attorney Craig Carpenito announced.
Joseph Frank Abel, 50, of Camarillo, California, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to count two of the indictment, charging him with conspiracy to offer and sell unregistered securities. He also pleaded guilty to a separate information charging him with subscribing to a false tax return for the tax year 2017.
Abel and four codefendants – Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks, and Joseph Frank Abel – were charged by indictment in December 2019.
According to documents filed in this case and statements made in court:
From April 2014 through December 2019, the BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Abel operated as a large-scale promoter of the BitClub Network. He promoted and sold shares of BitClub Network despite knowing that the network and its operators did not file a registration statement to register shares with the U.S. Securities and Exchange Commission.
Abel admitted taking money from investors in exchange for shares of the BitClub Network’s purported mining pools. In order to promote shares in the BitClub Network’s mining pools, he created and posted videos to the internet and gave presentations and speeches about the BitClub Network throughout the United States and numerous other countries, including in Asia, Africa, and Europe. As part of the conspiracy, Abel instructed investors in the United States to use a virtual private network, or “VPN,” to hide their U.S.-based IP addresses and evade detection and regulation by U.S. law enforcement.
Abel admitted failing to report on a Form 1040 United States Individual Income Tax Return for the tax year 2017 approximately $1 million in cryptocurrency as income he earned from his promotion of the BitClub Network.
The conspiracy charge to which Abel pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims. The tax charge to which Abel pleaded guilty carries a maximum penalty of three years in prison and a fine of $100,000. Sentencing is scheduled for Jan. 27, 2021.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI Los Angeles Division’s West Covina Resident Agency, under the direction of Acting Assistant Director in Charge John F. Bennett; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the IRS Los Angeles Field Office, under the direction of Special Agent in Charge Ryan L. Korner; the FBI Criminal Investigative Division, under the supervision of Assistant Director Calvin A. Shivers and the Financial Crimes Section, under the leadership of Section Chief Steven Merrill, and members of the Ventura Police Department with the investigation leading to today’s guilty plea.
Anyone who believes they may be a victim can find more information about the case, including a questionnaire for victims to fill out and submit, at: www.justice.gov/usao-nj/bitclub or the Department of Justice’s large case website www.justice.gov/largecases.
The government is represented by Unit Chief David W. Feder, Assistant U.S. Attorneys Jamie L. Hoxie and Anthony P. Torntore of the Cybercrime Unit, and Unit Chief Sarah Devlin and Assistant U.S. Attorney Joseph Minish of the Asset Recovery and Money Laundering Unit, of the U.S. Attorney’s Office in Newark.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Bridgeport Man Charged with Robbery, Firearm and Carjacking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Stratford Police Chief Joseph McNeil today announced that a federal grand jury in New Haven has returned an indictment charging TYIESE WARREN, also known as “Loose Screw,” 20, of Bridgeport, with robbery, firearm and carjacking offenses.
The indictment was returned yesterday and unsealed today after Warren was arrested. Warren appeared before U.S. Magistrate Judge William I. Garfinkel via videoconference and entered a plea of not guilty to the charges. Warren is detained pending a detention hearing that is scheduled for September 15.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals, Bridgeport Police and other local police departments are actively investigating members of multiple Bridgeport-based groups, including members of the Original North End (“ONE”), a group based in the Trumbull Gardens area of Bridgeport.
It is alleged that, on March 25, 2020, Warren and an accomplice stole a car that was in front of the Citgo 6M Service Station and Quik Mart located at 2000 Barnum Avenue in Stratford. During the theft, they dragged the car’s driver, who was trying to stop the theft and was hanging onto the car, several hundred yards before he let go. Warren and an accomplice then engaged in a carjacking involving a Toyota Corolla in Bridgeport, holding the owner at gunpoint and ultimately driving away in the car. Minutes later, Warren and an accomplice committed a gunpoint robbery of the Citgo in Stratford, taking cash from the store and a cellphone from a store employee. Stratford Police arrested Warren later that night after he crashed another stolen car he was driving on an I-95 on-ramp and then ran from police.
The indictment charges Warren with one count of interference with commerce by robbery, which carries a maximum term of imprisonment of 20 years; one count of brandishing, carrying and using a firearm during and relation to a crime of violence, which carries a mandatory consecutive term of imprisonment of at least seven years; and one count of carjacking, which carries a maximum term of imprisonment of 15 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Warren investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, and the Stratford, Stamford, Milford, Waterbury and Bridgeport Police Departments, with the assistance of the ATF, DEA and U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Rahul Kale, Peter D. Markle and Jocelyn C. Kaoutzanis.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Bridgeport Man Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an indictment yesterday charging ASANTE GAINES, 23, of Bridgeport, with possession of a firearm by a convicted felon.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals, Bridgeport Police and other local police departments are actively investigating members of multiple Bridgeport-based groups, including members of the “Greene Homes Boys” or “Hots” (“GHB/Hots”), a group based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End. On August 5, 2020, the grand jury returned an indictment charging Gaines and four associates with multiple offenses related to their alleged involvement in a shooting in front of the state courthouse in Bridgeport on January 27, 2020.
The indictment returned yesterday charges Gaines with illegally possessing a loaded Glock 19, 9 millimeter handgun on February 15, 2018. Gaines was arrested on state charges on that date.
It is alleged that Gaines’ criminal history includes state felony convictions for possessing a firearm without a pistol permit, and failure to appear. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The charge of possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.
Gaines is currently detained.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle and Karen L. Peck.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Boston Man Charged with Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Boston man was charged yesterday with being a felon in possession of a loaded semi-automatic pistol.
Tyrone Goforth, 40, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition. Following an initial appearance in federal court in Boston today, Goforth was returned to state custody.
According to the criminal complaint, on July 31, 2020, Goforth possessed a black Sig Sauer P938 9mm semi-automatic pistol, loaded with five rounds of 9mm ammunition. Due to a prior conviction, Goforth is prohibited from possessing firearms, and does not possess a federal license to sell firearms.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney John Dawley of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bergen County Attorney Charged with Fraudulently Obtaining $9 Million in Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, attorney was arrested today and charged with fraudulently obtaining approximately $9 million in Paycheck Protection Program (PPP) loans, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, announced.
Jae H. Choi, 48, of Cliffside Park, New Jersey, is charged by complaint with three counts of bank fraud and one count of money laundering. He is expected to make his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
Choi allegedly submitted three fraudulent PPP loan applications to three different lenders on behalf of three different businesses that purportedly provided educational services. The complaint also alleges that Choi fabricated the existence of hundreds of employees, manipulated bank and tax records, and falsified a driver’s license on the applications.
Choi allegedly falsely represented to the lenders that the companies controlled by him had hundreds of employees and paid over $3 million in monthly wages. Based on Choi’s alleged misrepresentations, each lender funded each of the three businesses with an approximately $3 million PPP loan. As a result, the complaint alleges that Choi received a total of nearly $9 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Choi allegedly used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to buy, among other things, a nearly $1 million home in Cresskill, New Jersey, to fund approximately $30,000 in remodeling and other improvements, and to invest millions more in the stock market through an account held in the name of his spouse.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The charges and allegations in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; the Small Business Administration Office of the Inspector General; and the Social Security Administration – Office of the Inspector General.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the District of New Jersey and Trial Attorney Andrew Tyler.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Bend Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
EUGENE, Ore.—A Bend, Oregon man has pleaded guilty to distributing child pornography, announced U.S. Attorney Billy J. Williams.
On September 2, 2020, Pierce Matthew Morrow, 24, waived indictment and pleaded guilty to one count of distribution of child pornography, a charge punishable by up to twenty years in prison, with a 5-year mandatory minimum sentence; a $250,000 fine; and a life term of supervised release.
According to court documents, Morrow participated in an online chat room that involved the exchange of child pornography, and posted images of prepubescent girls and boys engaged in sexually explicit conduct. The FBI executed a search warrant at Morrow’s Bend residence in January 2018. A subsequent search of his phone revealed hundreds of images and videos of child pornography. Morrow admitted to posting child pornography online.
On January 18, 2018, Morrow was charged by criminal complaint with possession, distribution, and receipt of child pornography. He will be sentenced on December 3, 2020 by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI and is being prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beaverton Woman Charged with Civil Disorder After Targeting Police Officers with High-Powered LaserRead the Press Release
PORTLAND, Ore.—Eva Warner, aka Joshua Warner, 25, of Beaverton, Oregon, has been charged by criminal complaint with civil disorder, a felony, after targeting the eyes of multiple law enforcement officers with a high-powered laser during an August 8, 2020 riot in North Portland.
According to court documents, in the late evening on August 8, 2020, a riot was declared at the Portland Police Association office on North Lombard Street in Portland after individuals broke windows and set fire to the office. The crowd also used vehicles and dumpsters to illegally block nearby vehicle traffic.
Oregon State Police officers notified the Portland Police Bureau’s Rapid Response Team that Warner had directed a high-powered, green laser into the eyes of numerous law enforcement officers attempting to disperse the riot. Warner resisted arrest, prompting officers to use force. Officers found a black, pen-style laser pointer on Warner’s person. Warner was taken into custody and later released.
On September 2, 2020, Warner was arrested by the U.S. Marshals Service in a southeast Portland apartment without incident.
Warner appeared in federal court today before a U.S. Magistrate Judge and was released pending further court proceedings. If convicted, Warner faces a maximum sentence of five years in federal prison.
This case was investigated by the FBI with assistance from the U.S. Marshals Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Attorney General William P. Barr Announces the Designation of Antoinette T. Bacon as Acting U.S. Attorney for the Northern District of New YorkRead the Press Release
Attorney General William P. Barr announced today that Antoinette T. Bacon has been designated as the Acting U.S. Attorney for the Northern District of New York, pursuant to 5 U.S.C. § 3345(a)(3). Bacon will replace U.S. Attorney Grant C. Jaquith, who announced his resignation upon his appointment as a Judge on the U.S. Court of Appeals for Veterans Claims.
As Acting U.S. Attorney, Bacon will serve as the Northern District of New York’s chief federal law enforcement officer, supervising an office of approximately 49 Assistant U.S. Attorneys, 49 support staff, and 15 contract support staff. Bacon will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased that the President has designated Toni Bacon as Acting U.S. Attorney for the Northern District of New York,” said Attorney General William P. Barr. “Her contributions to the initiatives she oversaw while working for the Office of the Deputy Attorney General are a testament to her relentless commitment to protect and serve all Americans. I know the Northern District will find Toni to be an exceptional prosecutor and dedicated leader.”
“I’m honored and humbled to be designated as the Acting U.S. Attorney for the Northern District of New York. I look forward to working tirelessly with my fellow federal, state, local, and tribal law enforcement partners to continue the effort to make the community safe for all,” said Acting U.S. Attorney Antoinette T. Bacon. “I thank Grant Jaquith, a fellow career prosecutor, for his three decades in the U.S. Attorney’s Office and wish him well in his new role on the U.S. Court of Appeals for Veterans Claims. His selfless service is truly inspiring.”
Prior to her appointment, Bacon served as the Department’s National Elder Justice Coordinator. During her tenure, Bacon spearheaded three of the largest sweeps of Elder Fraud cases, expanded the Department’s efforts to dismantle Transnational Criminal Organizations targeting older Americans, and launched the Money Mule Initiative and National Nursing Home Initiative to protect older Americans from fraud schemes and abuse.
As an Associate Deputy Attorney General, she assisted the Deputy Attorney General in formulating and implementing policies, including the landmark, bipartisan Criminal Justice Reform Legislation – The First Step Act.
Bacon is a seasoned and recognized litigator, most notably for leading prosecutions of fraud, waste, abuse, and corruption as an Assistant U.S. Attorney for the U.S. Attorney’s Office for the Northern District of Ohio (NDOH). In the NDOH, she earned her reputation for her commitment to root out corruption. She successfully prosecuted nearly 100 targets and led one of the largest corruption cases in this country’s history. Dubbed the Cuyahoga County Corruption Case, this nine-year investigation involved the prosecution of 60+ public officials and business executives, including a County Commissioner, a County Auditor, a Cleveland City Council member, two sitting judges, nine attorneys including five former prosecutors, two union leaders, and two senior hospital executives. The prosecution inspired an overhaul in Cuyahoga County government.
Following her outstanding efforts in NDOH, Bacon went on to serve as the national White Collar Crime Coordinator at the Executive Office for U.S. Attorneys, where she collaborated with prosecutors in all 94 U. S. Attorney’s Offices, federal agencies, law makers, corporate counsel, and other stakeholders to address our nation’s most serious economic crime threats.
Bacon first joined the Department of Justice through the Honors Program, as a Trial Attorney in the Antitrust Division, where she investigated international price fixing cartels. Prior to joining the Antitrust Division, Antoinette clerked for the Honorable Henry Coke Morgan, Jr., U.S. District Judge, Eastern District of Virginia. She earned a J.D. from the University of Virginia and a B.A. in Communications, Law, Economics, and Government from American University.
Armed meth trafficker on Rocky Boy's Indian Reservation sentenced to prisonRead the Press Release
GREAT FALLS —A Box Elder man who admitted possessing a firearm while dealing methamphetamine on the Rocky Boy's Indian Reservation was sentenced today to 11 years and six months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Issac Elias Saenz, 28, pleaded guilty in December to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents that in January 2018, a Rocky Boy's criminal investigator observed a vehicle, which had been reported stolen from Billings, at a residence on the reservation. The investigator saw the vehicle leave the residence, made a traffic stop and detained the driver and Saenz, who was a passenger in the front seat. Law enforcement executed a search warrant on the vehicle and found multiple bags containing a total of 60 grams of meth and a firearm under the front passenger seat. A DNA test determined there was a high likelihood that Saenz's DNA and the DNA of three unknown individuals were on the firearm. The investigation also determined that Saenz trafficked meth in Missoula County and near Box Elder in Hill County.
Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services, the Tri-Agency Drug Task Force, and the Rocky Boy's Drug Task Force.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Attorney General William P. Barr Announces the Designation of Antoinette T. Bacon as Acting U.s. Attorney for the Northern District of New YorkRead the Press Release
WASHINGTON – Attorney General William P. Barr announced today that Antoinette T. Bacon has been designated as the Acting U.S. Attorney for the Northern District of New York, pursuant to 5 U.S.C. § 3345(a)(3). Bacon will replace U.S. Attorney Grant C. Jaquith, who announced his resignation upon his appointment as a Judge on the U.S. Court of Appeals for Veterans Claims.
As Acting U.S. Attorney, Bacon will serve as the Northern District of New York’s chief federal law enforcement officer, supervising an office of approximately 49 Assistant U.S. Attorneys, 49 support staff, and 15 contract support staff. Bacon will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased that the President has designated Toni Bacon as Acting U.S. Attorney for the Northern District of New York,” said Attorney General William P. Barr. “Her contributions to the initiatives she oversaw while working for the Office of the Deputy Attorney General are a testament to her relentless commitment to protect and serve all Americans. I know the Northern District will find Toni to be an exceptional prosecutor and dedicated leader.”
“I’m honored and humbled to be designated as the Acting U.S. Attorney for the Northern District of New York. I look forward to working tirelessly with my fellow federal, state, local, and tribal law enforcement partners to continue the effort to make the community safe for all,” said Acting U.S. Attorney Antoinette T. Bacon. “I thank Grant Jaquith, a fellow career prosecutor, for his three decades in the U.S. Attorney’s Office and wish him well in his new role on the U.S. Court of Appeals for Veterans Claims. His selfless service is truly inspiring.”
Prior to her designation, Bacon served as the Department’s National Elder Justice Coordinator. During her tenure, Bacon spearheaded three of the largest sweeps of Elder Fraud cases, expanded the Department’s efforts to dismantle Transnational Criminal Organizations targeting older Americans, and launched the Money Mule Initiative and National Nursing Home Initiative to protect older Americans from fraud schemes and abuse.
As an Associate Deputy Attorney General, she assisted the Deputy Attorney General in formulating and implementing policies, including the landmark, bipartisan Criminal Justice Reform Legislation – The First Step Act.
Bacon is a seasoned and recognized litigator, most notably for leading prosecutions of fraud, waste, abuse, and corruption as an Assistant U.S. Attorney for the U.S. Attorney’s Office for the Northern District of Ohio (NDOH). In the NDOH, she earned her reputation for her commitment to root out corruption. She successfully prosecuted nearly 100 targets and led one of the largest corruption cases in this country’s history. Dubbed the Cuyahoga County Corruption Case, this nine-year investigation involved the prosecution of 60+ public officials and business executives, including a County Commissioner, a County Auditor, a Cleveland City Council member, two sitting judges, nine attorneys including five former prosecutors, two union leaders, and two senior hospital executives. The prosecution inspired an overhaul in Cuyahoga County government.
Following her outstanding efforts in NDOH, Bacon went on to serve as the national White Collar Crime Coordinator at the Executive Office for U.S. Attorneys, where she collaborated with prosecutors in all 94 U. S. Attorney’s Offices, federal agencies, lawmakers, corporate counsel, and other stakeholders to address our nation’s most serious economic crime threats.
Bacon first joined the Department of Justice through the Honors Program, as a Trial Attorney in the Antitrust Division, where she investigated international price fixing cartels. Prior to joining the Antitrust Division, Antoinette clerked for the Honorable Henry Coke Morgan, Jr., U.S. District Judge, Eastern District of Virginia. She earned a J.D. from the University of Virginia and a B.A. in Communications, Law, Economics, and Government from American University.
3 Santa Clarita Valley Residents Charged in Indictment Alleging $1.7 Million Embezzlement via Sham Diversity Recruitment CompaniesRead the Press Release
LOS ANGELES – Two Santa Clarity Valley residents were arrested today on a federal indictment accusing them of scheming to defraud a company out of more than $1.7 million earmarked for diversity recruitment by using two fake businesses that billed for services that were never performed.
The 17-count grand jury indictment contains wire fraud, mail fraud and conspiracy charges. The two defendants arrested this morning are:
- Judith Fernandez-Adelugba, 43, of Stevenson Ranch, the former human resources manager at Company-1, a Santa Clarita-based business that provided a technical and operations center for high performance racing programs, specializing in the design and development of racing engines and various high-performance automotive parts; and
- Alex Lawrence Wilkison, 47, a.k.a. “Alex Wilkerson,” of Canyon Country, the registered owner of Engineering Talent Connect (ETC), a fictitious business name registered to an address in Mission Hills.
The defendants are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
A third defendant, George Albert Fernandez, 73, also of Stevenson Ranch, the father of Fernandez-Adelugba and the president and chief executive officer of the Stevenson Ranch-based Business Solutions Services (BSS), is currently out of state and is expected to be taken into custody soon.
According to the indictment, Fernandez-Adelugba was responsible for diversity recruitment, which included implementing and managing programs to encourage persons from diverse gender, racial, ethnic, and other backgrounds to apply for jobs with her employer. She also had the authority to approve the payment of invoices of up to $25,000, the indictment states.
From March 2015 until her resignation from Company-1 in February 2018, Fernandez-Adelugba, her father, and Wilkison, who was married to a colleague and friend of Fernandez-Adelugba at Company-1, allegedly used BSS and ETC to embezzle Company-1 funds and divert this misappropriated money for their own personal enrichment.
The defendants allegedly submitted and caused to be submitted to Company-1 fake invoices issued by BSS and ETC that requested payment for diversity recruitment-related services purportedly performed. These “services” included posting job openings, placing job-related advertisements, searching for candidates, and successfully recruiting candidates for Company-1, according to the indictment.
Fernandez-Adelugba approved the fake invoices for payment, delivered them to Company-1’s accounting department, and followed up to request and facilitate payment of the fake invoices, the indictment alleges.
After Company-1 issued payments on the fake invoices, the defendants allegedly used their illicit gains for personal expenditures such as credit card bills, dining at restaurants, items bought at grocery stores, pool supplies, and cash withdrawals.
Between April 2015 and January 2018, based on these fake invoices, the defendants caused Company-1 to transfer $1,562,364 to BSS and $183,600 to ETC. The total loss to Company-1 was $1,745,964, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each charge of mail fraud and wire fraud carries a statutory maximum sentence of 20 years in federal prison. If convicted of all charges, Fernandez-Adelugba would face more than 300 years in federal prison.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section.
2 September 2020
Youngsville Man Sentenced for Running a Million Dollar Investment Fraud and Ponzi SchemeRead the Press Release
MONROE, La. – Acting United States Attorney Alexander C. Van Hook announced that Donnie Laing, Jr., 40, of Youngsville, Louisiana, was sentenced by U.S. District Judge Terry A. Doughty for wire fraud. Laing was sentenced to 36 months in prison, followed by 3 years of supervised release, and was also ordered to pay $918,531 in restitution to the victims of this scheme.
Laing pled guilty in March 2020 to wire fraud in connection with a million dollar Ponzi scheme that he orchestrated through his limited liability company, Capital Energy Investments, LLC (“Capital”). Evidence established that from April through November of 2018, Laing operated a Ponzi scheme through Capital. Laing used Capital to set up a business bank account and solicit money from the victims of his scheme. He represented himself to be the owner of Capital, a purportedly legitimate business that purchased and rented out oil and gas equipment. Investors were led to believe that Capital would use their money to invest in oil and gas equipment, and then lease such equipment to companies engaged in oil and gas exploration activities for a profit, promising investors high rates of return on their investments. Instead, Laing used the victims’ investments for his own personal use.
Throughout the scheme, Laing submitted false proposals and contracts to his victims to persuade them to invest their money with Capital. He also used funds from new investors to make payments to previous investors under the guise that the payments represented legitimate profits and returns on the victims’ investments. These payments allowed the defendant to avoid detection and obtain additional funds from his victims. Laing also used his relationship with a former business associate living in northeast Louisiana to solicit money from investors. Throughout the course of the scheme, Laing defrauded multiple investors and received nine investor payments during the period from April to October 2018.
The FBI investigated the case. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
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Youngstown, Ohio Man Sentenced to Time Served of 366 Days for ID TheftRead the Press Release
PITTSBURGH, PA – An Ohio resident has been sentenced in federal court to time served, three years supervised release and restitution of conspiracy to commit identity theft, and aggravated identity theft, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed a time served sentence on Damari Rodriguez aka "Dee Dee", 29, of 3679 Oakview Drive, Youngstown, OH. Rodriguez served approximately 366 days in federal custody.
According to the information presented to the court, beginning in and around May, 2014 through February, 2017, Rodriguez negotiated counterfeit checks as casinos throughout the East Coast using false identification documents produced with the names of real persons. The estimated fraud loss was approximately $17,808.00
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The U.S. Attorney Brady commended agents from Homeland Security Investigations and the Pennsylvania State Police for the investigation leading to the successful prosecution of Damari Rodriguez.