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26 August 2020
Pineville Man Is Sentenced to Prison for Credit Card FraudRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Charles Vincent Brown, 36, of Pineville, N.C., today to 51 months in prison for credit card fraud, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Brown to serve two years under court supervision, and to pay $237,141.41 as restitution.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
On November 4, 2019, Brown pleaded guilty to conspiracy to commit access device fraud. A federal jury convicted Brown’s co-defendant, Robert Nathaniel Johnson III, on July 28, 2020, of conspiracy to commit access device fraud and access device fraud for his role in the fraudulent scheme.
According to filed court documents and today’s sentencing hearing, from September 29, 2018, to October 20, 2018, Brown, Johnson and others used a stolen credit card number to create counterfeit credit cards, which they then used to purchase more than $250,000 of merchandise. According to court records, Brown and Johnson stole the credit card number of an individual identified as Victim #1, whose credit card had a credit limit of $300,000. The co-conspirators created counterfeit credit cards bearing the defendants’ names and the names of other co-conspirators, and used them at multiple retail stores, including at Best Buy, Foot Action, Foot Locker, and Neiman Marcus.
According to court records, Secret Service agents executed a search warrant at Brown’s apartment, and seized more than 560 pairs of high-end sneakers and other footwear, electronics, clothing, gaming equipment, and other items Brown had purchased using the counterfeit credit cards. Agents also seized computers, an embosser, a laminator, and other items used to manufacture counterfeit credit cards and fake identity documents. Court records show that a forensic examination of Brown’s seized cell phones revealed text messages from Brown advising other individuals on how to purchase stolen credit card information, screenshots of dark web searches for stolen credit card information, and receipts for the purchase of dozens of stolen credit card numbers.
Brown is currently in federal custody. A sentencing date for Johnson has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Pike County Man Charged with Production of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerald Ungerer, age 33, of Milford, Pennsylvania, was indicted on August 25, 2020, by a federal grand jury and charged with multiple child exploitation crimes.
According to United States Attorney, David J. Freed, the indictment alleges that on January 16, and February 9, 2017, March 6, and 12, 2020, Ungerer produced multiple videos and images of minors engaged in sexually explicit conduct.
The charges stem from an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Northeast Computer Crimes Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched 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 is 60 years’ 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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Philadelphia Business Owner Indicted for Arson of his North Philly Convenience Store to Collect Insurance ProceedsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Leonardo Dan Almonte-Fernandez, 39, of Philadelphia, PA, was charged by Indictment with one count of malicious damage of a building by means of fire affecting interstate commerce, one count of the use of fire to commit another felony, and three counts of wire fraud.
According to court documents, on April 25, 2020, Almonte-Fernandez allegedly set fire to his business, Chevere Mini Market, at 1443 E. Luzerne Street in Philadelphia. The defendant, who rented the basement, first, and second floors of the building, was behind on his lease payments and had recently been cited by the Philadelphia Department of Public Health for underage tobacco sales. Following the fire, he allegedly submitted fraudulent claims to State Farm Fire and Casualty Company seeking $200,000 in insurance proceeds for damages resulting from the fire, for which he claimed no involvement.
“As alleged in the Indictment, Almonte-Fernandez has a brazen disrespect for the law – and for the safety of his neighbors in this densely-populated residential area,” said U.S. Attorney McSwain. “He put other people’s homes and lives at risk, and then attempted to steal insurance money. Arson is a despicable crime. Together with our federal and local partners, we are committed to doing everything possible to punish and prevent it.”
“Arson is a dangerous crime and a very real threat to our community,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “We routinely work with our partners from the Philadelphia Police Department and Fire Marshal’s Office to build these complex and violent arson cases. Rest assured, ATF along with our law enforcement partners who round out our Arson and Explosives Task Force is dedicated to seeking justice against those who use fire as a weapon.”
“The Philadelphia Fire Marshals Office remains committed to investigating acts of arson throughout the City. We are grateful to the US Attorney’s Office and all of our partners for their ongoing help and support,” said Deputy Chief Fire Marshal Dennis J. Merrigan.
If convicted, the defendant faces a maximum possible sentence of 100 years’ imprisonment, a 10-year mandatory minimum term of imprisonment, up to three years’ supervised release, a $1.25 million fine, and a $500 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Fire Arms and Explosives Arson and Explosives Task Force, the Philadelphia Fire Marshal’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oakland Residents Charged with Illegally Exporting Night Vision Rifle Scopes to the Sultanate of OmanRead the Press Release
SAN FRANCISCO – Fares Abdo Al Eyani and Saba Mohsen Dhaifallah have been charged in a criminal complaint with attempting to ship export-controlled night vision rifle scopes from the United States to the Sultanate of Oman.
The announcement was made by United States Attorney for the Northern District of California David L. Anderson; Assistant Attorney General for National Security John C. Demers; Federal Bureau of Investigation, San Francisco Division, Special Agent in Charge John F. Bennett; and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.
The criminal complaint was filed August 5 and unsealed earlier today. According to the complaint, Al Eyani, 37, and Dhaifallah, 38, of Oakland, worked together to purchase numerous devices with night vision capabilities over the last half of 2019. The defendants then allegedly attempted to send those items and firearms to the Sultanate of Oman in shipping containers departing from the Port of Oakland.
The commercial export of arms, ammunitions, implements of war, and defense articles and services from the United States is governed by the Arms Export Control Act (AECA), 22 U.S.C. § 2778. Under the AECA, the President is authorized, among other things, to identify items deemed critical to the national security and foreign policy interests of the United States and to designate such items as “defense articles.” Further, the AECA authorizes the President to promulgate regulations for, and to require a license for the export of, items deemed defense articles. By executive order, the President has delegated this authority to the United States Department of State, Bureau of Political-Military Affairs, Directorate of Defense Trade Controls (DDTC). The DDTC promulgated regulations, codified at 22 C.F.R. §§ 120-130, known as the International Trafficking in Arms Regulations, or ITAR. Under the ITAR, a defense article includes any item on the United States Munitions List (USML). In addition, under the ITAR, a person who desires to export from the United States an item appearing on the USML must first register with the DDTC and obtain a license for the shipment prior to the export.
According to the complaint, Al Eyani and Dhaifallah were engaged in a scheme to export a set of night vision rifle scopes without a license. The AECA and the ITAR prohibit export of the scopes without a license and registration with the DDTC. The complaint describes how Al Eyani and Dhaifallah allegedly worked together to purchase the rifle scopes from a Bay Area gun store in August and September 2019 and then, in December 2019, attempted to export the rifle scopes by hiding them inside a shipping container at the Port of Oakland. In addition, the complaint alleges the unlawful scheme was thwarted when law enforcement officers searched the container and seized the rifle scopes.
Al Eyani and Dhaifallah were arrested yesterday at their residence in Oakland and made their initial appearance this morning in federal court before U.S. Magistrate Judge Thomas S. Hixson. Magistrate Judge Hixson released Al Eyani and Dhaifallah on a $100,000 bond and with travel restrictions. Al Eyani and Dhaifallah’s next hearing has been scheduled for Friday, August 28, 2020, at 10:30 a.m. before U.S. Magistrate Judge Robert M. Illman, for identification of counsel.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Al Eyani and Dhaifallah both face a maximum sentence of twenty years’ imprisonment and a fine of $1,000,000. In addition, the court may order the defendant to serve an additional period of supervised release and restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The Special Prosecutions Section of the United States Attorney’s office is prosecuting the case in consultation with the Counterintelligence and Export Control Section of the National Security Division at the Department of Justice. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and United States Customs and Border Protection.
North Tonawanda Man Charged with Possession of Child PornographyRead 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 Matthew C. Ostrowski, 48, of North Tonawanda, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the complaint, after receiving a report from the National Center for Missing and Exploited Children, Homeland Security Investigations (HSI) and the North Tonawanda Police Department executed a search warrant at the defendant’s North Tonawanda residence on December 17, 2019.
A total of seven digital items were seized during the search. A forensic examination recovered 12 image files of suspected child pornography on a desktop computer. In total, 4,204 image files of suspected child pornography, and an additional 8,523 image files of child exploitative material, were recovered on the desktop computer. A vast majority of the suspected child pornography files depict minors under the age of 12, approximately 101 images depict infants or toddlers, and another approximately 48 images depict violence against minors. In addition, Google searches for child pornography were also recovered.
Following the execution of the search warrant, Ostrowski turned his iPhone over to investigators. A forensic examination of the defendant’s phone recovered text conversations that appeared to be sexually explicit conversations with minors. The first conversation spanned two days in January 2019. During this conversation, Ostrowski and a minor he believes is 16 years old discuss a sexual relationship the minor is purportedly having with his/her adult teacher. The minor corrected the defendant, telling him that he/she was 17 years old, not 16 as Ostrowski believed. In response, the defendant wrote, “Omg you where [sic] 14 When we started talking and play Im [sic] such a scumbag. A second sexually graphic conversation between Ostrowski and an unidentified individual occurred in March 2019. At one point in the conversation, the defendant references “your fertile teen age womb.”
On February 5, 2020, HSI and the North Tonawanda Police once again executed federal search warrants, seizing a new iPhone the defendant possessed, and a laptop computer. Following a forensic examination, no images of child pornography were found on the phone. However, 178 image files and five videos of suspected child pornography were found on the laptop computer. A vast majority of the suspected child pornography files depict minors under the age of 12.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was released.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the North Tonawanda Police Department, under the direction of Chief Randy Szukala.
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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North Carolina State Legislator Pleads Guilty to Making a False Statement to a BankRead the Press Release
A member of the North Carolina House of Representatives pleaded guilty today to making a false statement to a bank and failing to file an income tax return.
David R. Lewis, 49, of Dunn, North Carolina, pleaded guilty to one count of making a false statement to a bank and one count of failing to file a tax return before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina. A sentencing hearing will be set at a later date.
According to documents filed with the court, Lewis has served as a Representative in the North Carolina House of Representatives since 2002, representing District 53. Lewis also owned and operated Lewis Farms, a farming corporation in North Carolina.
On or about Aug. 1, 2018, Lewis opened a bank account in the name of “NC GOP, Inc.” In completing the application to open the account, Lewis falsely certified to the bank that NC GOP Inc. was a corporation formed in North Carolina, of which Lewis was president. In fact, NC GOP Inc. was not a legal entity registered in North Carolina or in any other state. Lewis then used the NC GOP Inc. bank account to misappropriate campaign funds by disguising transfers from his campaign account to the NC GOP Inc. account as lawful contributions to the North Carolina Republican Party (commonly called the NCGOP). NC GOP Inc. had no actual association to the North Carolina Republican Party.
To that end, on or about July 31, 2018, Lewis caused a check to be written in the amount of $50,000 from his campaign account, made payable to NCGOP. Lewis caused this $50,000 expenditure to be reported to the North Carolina Board of Elections as a lawful contribution to the North Carolina Republican Party. Rather than sending the check to the North Carolina Republican Party, however, Lewis deposited the check into the NC GOP Inc. bank account immediately after opening the account on Aug. 1, 2018. The same day, Lewis transferred the majority of the funds in the NC GOP, Inc. account to his bank account for Lewis Farms, and used the remainder to pay rent on his residence.
Additionally, on or about Aug. 15, 2018, Lewis purchased a cashier’s check in the amount of $15,000 from his campaign account, made payable to NC GOP Inc. Lewis caused this $15,000 expenditure to be reported as a lawful contribution to the North Carolina Republican Party. That same day, however, rather than sending the check to the North Carolina Republican Party, Lewis deposited the check into the NC GOP Inc. account and subsequently transferred the funds to his bank account for Lewis Farms.
At a later date, Lewis made two contributions in the amount of $50,000 and $15,000 to the North Carolina Republican Party from one of his personal bank accounts. After using the NC GOP Inc. account to conduct the transactions described above, Lewis closed the account.
Lewis also admitted to willfully failing to file a tax return for calendar year 2018.
This case was investigated by the FBI and IRS-Criminal Investigation. Trial Attorneys Erica O’Brien Waymack and James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William T. Stetzer and Dana O. Washington of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
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.
North Carolina State Legislator Pleads Guilty to Making A False Statement to A BankRead the Press Release
CHARLOTTE, N.C. – A member of the North Carolina House of Representatives pleaded guilty today to making a false statement to a bank and failing to file an income tax return, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
David R. Lewis, 49, of Dunn, North Carolina, pleaded guilty to one count of making a false statement to a bank and one count of failing to file a tax return before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina. A sentencing hearing will be set at a later date.
According to documents filed with the court, Lewis has served as a Representative in the North Carolina House of Representatives since 2002, representing District 53. Lewis also owned and operated Lewis Farms, a farming corporation in North Carolina.
On or about Aug. 1, 2018, Lewis opened a bank account in the name of “NC GOP, Inc.” In completing the application to open the account, Lewis falsely certified to the bank that NC GOP Inc. was a corporation formed in North Carolina, of which Lewis was president. In fact, NC GOP Inc. was not a legal entity registered in North Carolina or in any other state. Lewis then used the NC GOP Inc. bank account to misappropriate campaign funds by disguising transfers from his campaign account to the NC GOP Inc. account as lawful contributions to the North Carolina Republican Party (commonly called the NCGOP). NC GOP Inc. had no actual association to the North Carolina Republican Party.
To that end, on or about July 31, 2018, Lewis caused a check to be written in the amount of $50,000 from his campaign account, made payable to NCGOP. Lewis caused this $50,000 expenditure to be reported to the North Carolina Board of Elections as a lawful contribution to the North Carolina Republican Party. Rather than sending the check to the North Carolina Republican Party, however, Lewis deposited the check into the NC GOP Inc. bank account immediately after opening the account on Aug. 1, 2018. The same day, Lewis transferred the majority of the funds in the NC GOP, Inc. account to his bank account for Lewis Farms, and used the remainder to pay rent on his residence.
Additionally, on or about Aug. 15, 2018, Lewis purchased a cashier’s check in the amount of $15,000 from his campaign account, made payable to NC GOP Inc. Lewis caused this $15,000 expenditure to be reported as a lawful contribution to the North Carolina Republican Party. That same day, however, rather than sending the check to the North Carolina Republican Party, Lewis deposited the check into the NC GOP Inc. account and subsequently transferred the funds to his bank account for Lewis Farms.
At a later date, Lewis made two contributions in the amount of $50,000 and $15,000 to the North Carolina Republican Party from one of his personal bank accounts. After using the NC GOP Inc. account to conduct the transactions described above, Lewis closed the account.
Lewis also admitted to willfully failing to file a tax return for calendar year 2018.
This case was investigated by the FBI in Charlotte and IRS-Criminal Investigation. Trial Attorneys Erica O’Brien Waymack and James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William T. Stetzer and Dana O. Washington of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
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.
New London Man Sentenced to 4 Years in Federal Prison for Distributing Cocaine, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN HERNANDEZ, 37, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing cocaine, and for violating the conditions of his federal supervised release that followed a previous conviction for trafficking cocaine.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. The investigation revealed that Hernandez received cocaine from an identified leader of a drug trafficking organization and distributed the drug to his own customers and other street-level dealers.
On January 17, 2019, New London Police arrested Hernandez after they conducted a traffic stop of Hernandez’s vehicle and found him in possession of approximately 100 grams of cocaine.
At the time of his arrest, and during his criminal conduct in this case, Hernandez was on federal supervised release. On February 26, 2016, Judge Bryant sentenced Hernandez to 48 months of imprisonment and four years of supervised release for his participation in another southeastern Connecticut cocaine trafficking conspiracy.
On March 5, 2019, a grand jury in Hartford returned an indictment charging Hernandez and 23 other individuals with various offenses. On December 9, 2019, he pleaded guilty to one count of conspiracy to distribute and possession with the intent to distribute cocaine.
Judge Bryant sentenced Hernandez to 30 months of imprisonment for the cocaine distribution offense, and an additional 18 months of imprisonment for violating the conditions of his supervised release.
Hernandez has been detained since January 17, 2019.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
New Haven Man Sentenced to 51 Months in Federal Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RONNIE GORDON, also known as “Pop,” 39, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 51 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Between August and November 2017, investigators made six controlled purchases of crack from Butler. A subsequent wiretap investigation revealed that Butler was obtaining bulk quantities of crack from others and distributing the drug through a network of street-level dealers, including Gordon. Butler also conspired with others to distribute oxycodone.
Gordon has been detained since his arrest on February 6, 2018.
On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Butler, Gordon and 17 other individuals with various offenses. All have been convicted.
On August 26, 2019, Gordon guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”).
Gordon’s criminal history includes multiple state convictions for drug, assault and firearms offenses.
On August 10, 2020, Butler was sentenced to 78 months of imprisonment.
This matter has been investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Nevada Man Charged with Using COVID-Relief Funds to Buy HouseRead the Press Release
A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions. He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.
The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks. The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis. The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue. According to the complaint, neither entity has employees nor pays any wages. And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.
According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines. Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.
The 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.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, and SBA-OIG investigated the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
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.
Nevada Man Charged with Using COVID-Relief Funds to Buy HouseRead the Press Release
LAS VEGAS, Nev. – A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office, and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Brandon Casutt, 49, of Henderson, Nevada, is charged in a criminal complaint in the District of Nevada, unsealed Tuesday, with making false statements to a financial institution, wire fraud, bank fraud, concealment money laundering, and engaging in unlawful monetary transactions. He was arrested on Friday and made his initial appearance Tuesday afternoon before U.S. Magistrate Judge Elayna J. Youchah in Las Vegas.
The complaint alleges that Casutt perpetrated a scheme to submit fraudulent EIDL applications to the SBA and PPP loan applications to federally insured banks. The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act also authorizes the SBA to provide an EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
Two of these fraudulent applications received funding: (1) a PPP loan for approximately $350,000 in the name of a business called Sky DeSign; and (2) an EIDL for approximately $150,000 in the name of a charity called Skyler’s C.F. Foundation, which is supposedly devoted to raising awareness about cystic fibrosis. The loan applications indicated that each entity had numerous employees, significant payroll expenses, and substantial revenue. According to the complaint, neither entity has employees nor pays any wages. And Skyler’s C.F. Foundation had nowhere near the $600,000 revenue in 2019 that Casutt listed on the entity’s EIDL application.
According to the complaint, Casutt laundered the PPP funds by writing checks to 23 different people — friends, family members, associates, and himself — each in the amount of $8,330 with “back pay” and “pandemic pay” in the checks’ memo lines. Casutt then had the funds diverted to a bank account in the name of Skyler’s C.F. Foundation and used them, along with the EIDL funds, to purchase a $400,000 house in Henderson, into which he and his family moved at the end of June 2020.
The 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.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, and SBA-OIG investigated the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Mickelson of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
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Nashville Man Sentenced to Federal Prison for Scheme Involving Stolen Tax Refund Checks and Bank FraudRead the Press Release
NASHVILLE, Tenn. – August 26, 2020 – A Nashville man was sentenced today in U.S. District Court for two separate fraud schemes, one involving stolen tax refund checks and the other involving bank fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Charles Burnett, 34, was sentenced to a total of 54 months in prison, to be followed by five years of supervised release.
Burnett was initially charged in September 2018 with conspiracy to steal government funds and aggravated identity theft after an investigation determined that he conspired with others to steal federal income tax refund checks. Between June 2014 and May 2017, Burnett directed others to open bank accounts and shell entities to deposit the stolen checks. Burnett himself, incorporated CB Entertainment and Marketing, LLC and opened a business bank account for the sole purpose of depositing stolen tax refund checks. Burnett and his co-conspirators stole $636,366.68 in tax refund checks, but they were only successful in obtaining $271,712.04.
Burnett pleaded guilty to this scheme in November 2018 and while awaiting sentencing, in March 2019, he embarked upon another scheme which would defraud local banks. Burnett opened a series of bank accounts, seeded those accounts with money, spent that money or moved it to another account he controlled, and then claimed fraud so the defrauded banks would reimburse him. In February of this year, Burnett was arrested and charged with bank fraud. He pleaded guilty to this scheme in April and has been in custody pending today’s sentencing. Burnett was also ordered to pay $271,712.04 in restitution and to forfeit $252,346.44 in the case involving stolen tax refund checks; and $21,086.46 in restitution and a forfeiture in the same amount involving the bank fraud case.
This case was investigated by the Treasury Inspector General for Tax Administration; the United States Secret Service and the FBI. Assistant U.S. Attorney Robert S. Levine prosecuted the case.
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Nashville Man Facing Federal Charges in Pharmacy RobberyRead the Press Release
NASHVILLE, Tenn. – August 26, 2020 – A criminal complaint was unsealed yesterday charging David Powell, aka Dawud Powell, 29, of Nashville, with armed robbery of a pharmacy and brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the complaint, on the morning of August 19, 2020, an individual later identified as Powell, entered the Walgreens pharmacy on Nolensville Pike, brandished a handgun at the pharmacy counter and demanded that the pharmacist give him all of the Hydrocodone, Oxycodone, and Lortab. The pharmacist complied and the robber placed the bottles of drugs in a white bag and fled the store.
The investigation by responding officers and detectives from the Metropolitan Nashville Police Department led them to the area of West Valley Drive where they observed an individual exiting a vehicle and carrying a white bag. The individual ignored the officer’s commands to stop and fled, jumping a nearby fence. Subsequent investigation by FBI agents identified Powell as the suspect.
Powell was arrested Monday by the FBI Safe Streets Task Force outside of an apartment complex in South Nashville. At the time of his arrest, Powell was in possession of firearms. He will appear before a U.S. Magistrate Judge on Friday for a detention hearing. He is currently on federal supervised release out of the Northern District of Illinois, where he was previously convicted for being a felon in possession of a firearm. If convicted of the charges, Powell faces a mandatory minimum sentence of seven years and up to life in prison.
This case is being prosecuted by Assistant U.S. Attorney Joseph P. Montminy.
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Moss Point Man Sentenced to over 17 Years in Federal Prison under Project EJECT for Heroin and Methamphetamine TraffickingRead the Press Release
Gulfport, Miss – Raphael Donzell Johnson, Jr., 40, of Moss Point, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr, to 210 months in prison, followed by 3 years of supervised release, for possession with intent to distribute heroin and methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi. Johnson was also ordered to pay a $9,000 fine.
In May 2019, Johnson sold heroin and methamphetamine to an individual on two separate occasions. In June, agents executed a search warrant on Johnson’s home where they found over 400 grams of heroin, methamphetamine and two firearms.
Johnson was charged in a federal criminal indictment and pled guilty before Judge Guirola on January 29, 2020.
The Mississippi Bureau of Narcotics and the Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Monterey Park Man Sentenced to Nearly 3 Years in Prison for Role in $62 Million Compounded Medication Scam that Targeted TRICARERead the Press Release
SANTA ANA, California – A San Gabriel Valley man was sentenced today to 34 months in federal prison for fraudulently submitting more than $62 million in claims to the military’s TRICARE health care benefit program for bogus compounded medications prescriptions largely generated by the payment of large referral fees to marketers.
James Chen, 51, of Monterey Park, was sentenced by United States District Judge David O. Carter, who also ordered Chen to pay $28,283,844 in restitution. Chen pleaded guilty in June 2017 to one count of health care fraud.
Chen owned Clevis Management, Inc., a Commerce-based company that did business under the name Haeoyou Pharmacy (HY). HY hired marketers to obtain prescriptions for medications that were billed to TRICARE, a health care benefit program for military members and their families. HY also operated “Healtharchy.com,” a “telemedicine” website through which individuals could seek prescriptions for medications without being examined by a physician.
Under Chen’s supervision, HY paid referral fees to outside businesses, including Mission Viejo-based Trestles RX LLC and Trestles Pain Management Specialists LLC, and to his own in-house marketers to obtain compounded medications prescriptions. The referral fees constituted more than 50 percent of the net reimbursements that HY received from TRICARE.
Compounding medication is a practice where a physician or pharmacists alters the ingredients of a drug or multiple drugs to create a medication tailored to an individual patient, such as if a patient is allergic to a specific ingredient in a medication approved by the Food and Drug Administration.
Chen knew that none of the prescriptions arose from a bona-fide physician-patient relationship, as required by TRICARE rules. Chen also knew that a substantial number of the prescriptions were sent to HY from marketers, not physicians, though the claim forms falsely indicated otherwise. HY never attempted to collect copayments from patients, who were selected at random and denied ever seeking the compounded medications, which were of questionable medical value. All the medications were for generic pain, scarring, stretch marks, erectile dysfunction, or “metabolic general wellness” (vitamins), according to court documents.
During 2013, Chen submitted zero claims to TRICARE for reimbursement for filling compounded medication prescriptions. In December 2014, his company submitted 31 such claims to TRICARE for $81,401. During the first five months of 2015, HY submitted 2,798 such claims to TRICARE seeking a total of $62,654,938.
The claims HY submitted to TRICARE for each compounded medication prescription were astronomical compared to previous claims that HY typically submitted for reimbursement. A claim to TRICARE for a single compounded medication prescription caused TRICARE to pay HY $194,707.
Chen and his co-schemers targeted TRICARE because few, if any, insurance carriers at the time would honor reimbursement claims for similar prescriptions.
This matter was investigated by the Defense Criminal Investigative Service; the FBI; Amtrak’s Office of Inspector General; IRS Criminal Investigation, the Office of Personnel Management’s Office of Inspector General; the U.S. Department of Health and Human Services – Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the California Department of Insurance.
This case was prosecuted by Assistant United States Attorney Mark Aveis of the Major Frauds Section.
Missouri Man Sentenced to 46 Months for Unlawful Possession of a FirearmRead the Press Release
The Honorable Chief Judge Rodney W. Sippel of the U.S. District Court for the Eastern District of Missouri sentenced Freddie Doyle, 32, to 46 months of imprisonment for violating 18 U.S.C. § 922(g), in relation to an attempted assault on patrons of a LGBTQ-community bar in St. Louis, Missouri.
Doyle previously pleaded guilty and admitted that on June 27, 2019, he drove to Rehab Bar and Grill, a LGBTQ-community bar located in St. Louis, Missouri, with a Bushmaster Firearms AR-15 style automatic rifle (AR-15), bipod, scope, tactical light, four full rifle magazines, and approximately 160 rifle rounds in his vehicle. Doyle stayed at the bar for a number of hours until the bar closed at 3:00 a.m. Shortly thereafter, Doyle approached an African-American man, who had just exited a different LGBTQ establishment in the area, and invited that man back to his car. Doyle retrieved his rifle from his car and immediately aimed it at the African-American man. Doyle then chased the man as he ran away, told a bystander that he wanted to “get” the man, yelled racial and homophobic slurs at him, and fired his rifle once above the man’s head. When the St. Louis Metropolitan Police Department apprehended Doyle and placed him into custody, Doyle continued to yell slurs at the man, including referring to him as a “fag.”
“All people in this nation have the right to enjoy themselves at a bar and grill without fearing that they will be threatened, shot, and seriously injured or killed by bigoted criminals,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will not tolerate this kind of hateful violence. The Civil Rights Division strives to protect all Americans from acts of aggression and violence based on their race, color or sexual orientation.”
This case was investigated by the FBI. First Assistant U.S. Attorney Carrie Costantin of the U.S. Attorney’s Office, Eastern District of Missouri, and Trial Attorneys Janea Lamar and Laura Gilson of the Civil Rights Division, Criminal Section, prosecuted the case.
Mission Man Indicted on Meth and Ammunition ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession With Intent to Distribute Methamphetamine and Possession of Ammunition by a Prohibited Person.
Kevin Bordeaux, age 21, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 20, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 3, 2020, Bordeaux did knowingly and intentionally possess with the intent to distribute methamphetamine. On March 4, 2020, a search warrant was executed on Bordeaux’s residence wherein several rounds of ammunition were seized.
The charges are merely accusations and Bordeaux is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Bordeaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Indicted on Kidnapping and Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Kidnapping and Assault by Strangulation and Suffocation.
Steven McDaniel, a/k/a Steven McDaniels, age 33, was indicted on December 17, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 20, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 6, 2019, and June 7, 2019, McDaniel kidnapped and held a woman in Mission, and unlawfully assaulted her by strangling and suffocating her.
The charges are merely accusations and McDaniel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
McDaniel was released on bond pending trial. A trial date has not been set.
Minneapolis Woman Pleads Guilty to Attempting to Provide Material Support to Al-Qa’idaRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the District of Minnesota Erica H. MacDonald today announced the guilty plea of Tnuza Jamal Hassan, 22, to attempting to provide material support to a designated foreign terrorist organization (al-Qa’ida). Hassan entered her guilty plea this morning before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March of 2017, while a freshman student at St. Catherine University (SCU) in St. Paul, Minnesota, Hassan drafted a letter encouraging others to join a designated foreign terrorist organization, namely, al-Qa’ida (AQ), and anonymously delivered the letter to two other students at SCU for the purpose of recruiting those individuals to join AQ. During a subsequent interview with FBI agents, Hassan denied authoring or delivering the recruitment letter.
According to the defendant’s guilty plea and documents filed in court, on Sept. 18, 2017, Hassan purchased a round-trip airline ticket from Minneapolis/St. Paul International Airport (MSP) to Dubai, United Arab Emirates, and purchased a second round-trip ticket from Dubai to Kabul, Afghanistan. Hassan later admitted that she planned to travel from Dubai to Kabul where she hoped to join AQ and that she had no intentions of returning to the United States. On Sept. 19, 2017, Hassan boarded a flight and traveled from MSP to Dubai, but was prevented from traveling to Kabul because she failed to secure a travel visa allowing her to enter the country.
According to the defendant’s guilty plea and documents filed in court, on Jan. 17, 2018, Hassan, who at that time was living in a SCU dorm lounge without the university’s permission, attempted to set several fires on the SCU campus. Hassan admitted that she attempted to burn SCU buildings as a retaliatory act against the United States for its opposition to AQ in Afghanistan.
Hassan has been charged in Ramsey County District Court with one count of first-degree arson.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, St. Paul Police Department, and arson investigators from the St. Paul Fire Department.
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Minneapolis Woman Pleads Guilty to Attempting to Provide Material Support to al-Qa’idaRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of TNUZA JAMAL HASSAN, 22, to attempting to provide material support to a designated foreign terrorist organization (al-Qa’ida). HASSAN entered her guilty plea this morning before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March of 2017, while a freshman student at St. Catherine University (SCU) in St. Paul, Minnesota, HASSAN drafted a letter encouraging others to join a designated foreign terrorist organization, namely, al-Qa’ida (AQ), and anonymously delivered the letter to two other students at SCU for the purpose of recruiting those individuals to join AQ. During a subsequent interview with FBI agents, HASSAN denied authoring or delivering the recruitment letter.
According to the defendant’s guilty plea and documents filed in court, on September 18, 2017, HASSAN purchased a round-trip airline ticket from Minneapolis/St. Paul International Airport (“MSP”) to Dubai, United Arab Emirates, and purchased a second round-trip ticket from Dubai to Kabul, Afghanistan. HASSAN later admitted that she planned to travel from Dubai to Kabul where she hoped to join AQ and that she had no intentions of returning to the United States. On September 19, 2017, HASSAN boarded a flight and traveled from MSP to Dubai, but was prevented from traveling to Kabul because she failed to secure a travel visa allowing her to enter the country.
According to the defendant’s guilty plea and documents filed in court, on January 17, 2018, HASSAN, who at that time was living in a SCU dorm lounge without the university’s permission, attempted to set several fires on the SCU campus. HASSAN admitted that she attempted to burn SCU buildings as a retaliatory act against the United States for its opposition to AQ in Afghanistan.
HASSAN has been charged in Ramsey County District Court with one count of first-degree arson.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, St. Paul Police Department, and arson investigators from the St. Paul Fire Department.
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Defendant Information:
TNUZA JAMAL HASSAN, 22
Minneapolis, Minn.
Convicted:
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization (al-Qa’ida), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Middle Tennessee Probation Service Operator Pleads Guilty to Tax ChargesRead the Press Release
NASHVILLE, Tenn. – August 26, 2020 – A Dickson, Tennessee woman who owns and operates a private probation service pleaded guilty today in U.S. District Court to three counts of failing to file a federal tax return, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Shannon C. Monzon, 48, was charged in July with failing to file tax returns for the years 2016-2018. Monzon is the owner and operator of Misdemeanor Offenders Program (“MOP”), a private probation service that supervised probationers out of the Humphreys County General Sessions Court, the Municipal Court of McEwen, the Municipal Court of New Johnsonville, the Dickson County General Sessions Court, and the Dickson Municipal Court.
According to court documents, MOP was contracted by the counties and municipalities to provide probationary services for offenders referred to them. MOP charged probationers a fee to be supervised, and the probationers paid MOP directly by cash, money order, official checks, or personal checks. MOP also received payments from the contracting municipalities and counties.
Between 2013 and 2018, MOP received over $708,000 in deposits into the business account. Additionally, during that time, Monzon and her husband received over $617,000 in cash deposits into their joint personal bank account and were required by the IRS to file personal federal income tax returns.
As part of the plea agreement, Monzon admitted that she willfully did not file tax returns for tax years 2008-2018 and caused a tax loss to the IRS in the amount of $396,002 and agrees to pay restitution in that amount.
Monzon faces up to one year in prison and a fine of up to $100,000 on each count when she is sentenced on January 6, 2021. This case was investigated by the IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Kathryn Booth.
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Miami Neighbors Charged with Covid-Relief Fraud After Falsely Claiming to be FarmersRead the Press Release
Miami, Fl. -- Two Florida neighbors were charged in a complaint unsealed today with wire fraud and false statements for their alleged participation in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG), and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, Florida, were charged in a complaint filed in the Southern District of Florida with wire fraud and false statements. Both individuals were arrested this morning and appeared today before U.S. Magistrate Judge Alicia M. Otazo-Reyes in Miami.
The complaint alleges that Stanley and Philus submitted four fraudulent applications for over $1.1 million. In her PPP application, Stanley claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. In the EIDL application, Stanley claimed to generate over $800,000 in income and employed five individuals from a farm based in the yard of her Miami home. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In his EIDL application, Philus claimed to generate $400,000 in income and employed ten individuals from a farm located in the yard of a small residential home.
In actuality, the complaint alleges that Stanley and Philus employed no one and the farms did not exist. Stanley and Philus, who are neighbors, allegedly worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds before their schemes were uncovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Assistant U.S. Attorney Brooke Watson for the Southern District of Florida and Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and 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.
Miami Neighbors Charged with COVID-Relief Fraud after Falsely Claiming to be FarmersRead the Press Release
Two Florida neighbors were charged in a complaint unsealed today with wire fraud and false statements for their alleged participation in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG), and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, Florida, were charged in a complaint filed in the Southern District of Florida with wire fraud and false statements. Both individuals were arrested this morning and appeared today before U.S. Magistrate Judge Alicia M. Otazo-Reyes in the Southern District of Florida.
The complaint alleges that Stanley and Philus submitted four fraudulent applications for over $1.1 million. In her PPP application, Stanley claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. In the EIDL application, Stanley claimed to generate over $800,000 in income and employed five individuals from a farm based in the yard of her Miami home. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In his EIDL application, Philus claimed to generate $400,000 in income and employed ten individuals from a farm located in the yard of a small residential home.
In actuality, the complaint alleges that Stanley and Philus employed no one and the farms did not exist. Stanley and Philus, who are neighbors, worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds before their schemes were uncovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brooke Watson for the Southern District of Florida 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.
Mexican Man Who Possessed a Fraudulent Social Security Card Sentenced to PrisonRead the Press Release
A Mexican man who possessed false identification documents was sentenced today to five months in federal prison.
Gandhi Rojas-Lopez, age 33, a citizen of Mexico illegally present in the United States and living in West Liberty, Iowa, received the prison term after a guilty plea to one count of unlawful possession of identification documents.
In a plea agreement, Rojas-Lopez admitted that in February 2016, he possessed and used a fraudulent social security card and a fraudulent permanent resident card, also known as a “green card,” when completing paperwork to obtain employment in Stanwood, Iowa. The account numbers on the identification documents were assigned to other people.
Rojas-Lopez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Rojas-Lopez was sentenced to five months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rojas-Lopez [was released on the bond previously set and is to surrender to the United States Marshal on September 9, 2020.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-76.
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McKeesport Felon Subject to PFA Charged with Federal Drug and Gun CrimesRead the Press Release
PITTSBURGH, Pa. - A McKeesport, Pennsylvania, resident has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on August 26 and unsealed today, named Jermaine Curry, age 35, as the sole defendant.
According to the Indictment, on or about December 18, 2019, Curry, a convicted felon who was on parole and subject to a Protection from Abuse Order (PFA), knowingly and unlawfully possessed 10 firearms and ammunition. A PFA in Pennsylvania provides that a person shall not "abuse, harass, stalk, threaten, or attempt or threaten to use physical force against" the persons protected by the order, including intimate partners and children. Federal law prohibits anyone who is subject to a PFA and anyone who has been convicted by crimes punishable by a year or more in prison from lawfully possessing a firearm or ammunition. Law enforcement officials seized quantities of fentanyl, acetyl fentanyl, heroin, crack cocaine, drug packaging supplies, and $1,173 in United States currency from the defendant’s residence. As such, the indictment also charges Curry with possession with intent to distribute the narcotics, and possessing the firearms in furtherance of his drug trafficking crimes.
"This prosecution is part our of commitment to protect victims and survivors of domestic and intimate partner violence," said U.S. Attorney Brady, who has been a member of Attorney General William Barr’s Domestic Violence Working Group since June of 2019. "We know that where a firearm is present, the likelihood of a domestic violence-related homicide increases by 500%. Our goal, simply stated, is to save lives. One way we are doing that is by federally prosecuting domestic abusers who illegally possess firearms."
The law provides for a maximum total sentence of life prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant has been detained pending the resolution of the case.
Assistant United States Attorney Nicole Vasquez Schmitt, who serves as the office’s Domestic Violence Coordinator, is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Probation Office, and the McKeesport Police conducted the investigation leading to the indictment of Curry.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man guilty of filing false corporate income tax returnRead the Press Release
HOUSTON – A man has admitted he filed a tax return alleging there were no taxes owed, announced U.S. Attorney Ryan K. Patrick.
Gilberto Parada-Arevalo pleaded guilty today to one count of filing a false 2011 U.S. corporate income tax return for Tamaleria Panaderia Y Pupuseria La Roca Inc. In that return, he falsely claimed the corporation owed no income taxes for 2011.
As part of the plea agreement, Parada-Arevalo agreed the relevant conduct - total intended tax loss - for purposes of sentencing is between $100,000 and $250,000. He has agreed to pay more than $74,000 in restitution to the IRS.
U.S. District Judge George Hanks accepted the plea and set sentencing for Nov. 16. At that time, Parada-Arevalo faces up to three years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS – Criminal Investigation conducted the investigation0n. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference TodayRead the Press Release
CHARLESTON, W.Va. – Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference today at 3 p.m., regarding law enforcement actions.
Where: Robert C. Byrd United States Courthouse (in front of the courthouse)
300 Virginia Street East
Charleston, WV 25301When: Wednesday, August 26, 2020 at 3 p.m.
*Note: Please wear masks.
Follow us on Twitter: SDWVNews and USAttyStuart
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Leader of local cocaine distribution cell headed to prisonRead the Press Release
HOUSTON – A 37-year-old Houston man has been handed a significant sentence following his conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.
Ernesto Martinez pleaded guilty Sept. 25, 2019.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 200-month sentence to be followed by five years of supervised release.
In handing down the sentence, the court found Martinez ran a large-scale cocaine distribution network that spanned more than four years. During that time, Martinez and his associates distributed more than 50 kilograms of cocaine to a large number of cocaine distributors based throughout the country to include cities in Texas, Ohio, Florida and Arkansas.
The judge found Martinez to be a leader and organizer in the drug operation who dealt directly with cartel members in Mexico.
Martinez also possessed a firearm when trafficking cocaine on one occasion and maintained a residence in Houston used to stash cocaine and drug proceeds.
To date, seven others have been convicted for their respective roles in the drug trafficking organization.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Harris County Sheriff’s Office led the investigation as part of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.
Lawrence Resident Pleads Guilty to Sexual Exploitation ChargesRead the Press Release
BOSTON – A Lawrence resident pleaded guilty today to sexually exploiting two children under four years of age.
Jakob Nieves, who also goes by the name Dakota, 20, pleaded guilty to two counts of sexual exploitation of children, one count of distribution of child pornography and one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 16, 2020. In September 2019, Nieves was indicted and has been detained since being arrested on Aug. 14, 2019.
As part of an investigation into the use of Kik messenger for the trade of child pornography, an undercover agent communicated with Nieves via Kik. During the course of those communications, Nieves sent the undercover agent images and videos that Nieves produced, depicting Nieves sexually abusing a child.
When law enforcement executed a search warrant at Nieves’ home on Aug. 14, 2019, Nieves admitted to distributing images and videos of child pornography to a user Nieves “met” in a Kik group geared toward individuals interested in pedophilia. Forensic analysis of Nieves’ cell phone revealed pornographic images and videos of two children known to Nieves, both of whom were under the age of four, as well as thousands of child pornography images depicting victims personally unknown to Nieves.
The charge of sexual exploitation of children provides for a minimum mandatory sentence of 15 years and up to 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a fine of up to $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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Coordinator and member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Kittanning Man Indicted on Drug ChargesRead the Press Release
PITTSBURGH, PA – An Armstrong County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Charles Blystone, age 49, of Kittanning, Pennsylvania, as the sole defendant.
According to the Indictment, on or about January 28, 29, and 30, 2020, Blystone possessed with the intent to distribute and distributed quantities of fentanyl.
The law provides for a maximum total sentence, at each count, of not more than 60 years in prison, a fine of $3,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Announces New Federal-Tribal Partnerships to Combat Domestic Violence in Oklahoma and Other StatesRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) announced today that it will dedicate $2,250,000 to continue a successful approach among tribal and federal authorities to hold violent offenders accountable for crimes they commit in Indian Country. U.S. Attorneys Trent Shores for the Northern District of Oklahoma, U.S. Attorney Brian Kuester for the Eastern District of Oklahoma, and U.S. Attorney Timothy Downing of the Western District of Oklahoma helped make the announcement for at a press conference in Tulsa.
The Tribal Special Assistant United States Attorney (Tribal SAUSA) Initiative, financed through a partnership between OVW and the Bureau of Justice Assistance (BJA), trains cross-deputized tribal prosecutors in federal law and procedure and investigative strategies so they can pursue domestic or sexual violence cases in tribal court, federal court, or both. “A victim’s safety and freedom from her abuser should not hinge on the jurisdictional boundaries around the crime scene. These new awards continue the Department’s commitment to equipping tribal prosecutors with the tools they need to curb domestic violence no matter where it occurs,” said OVW Principal Deputy Director Laura Rogers.
Owing to the funds contributed by BJA, the five tribes receiving SAUSA awards have enhanced resources to prosecute not only domestic violence, sexual assault, and stalking cases, but also other serious offenses including homicides, robberies, and cybercrimes. The recipient tribes are:
• Chickasaw Nation (Western District of Oklahoma)
• Southern Ute Tribe (District of Colorado)
• Pueblo of Laguna (District of New Mexico)
• Oglala Sioux Tribe (District of South Dakota)
• Mississippi Band of Choctaw Indians (Southern District of Mississippi)
“The rate of violent victimization is staggeringly high in American Indian and Alaska Native communities. We have to do more to bring this rate down and make more justice solutions available to our tribal partners. The new SAUSA awards are a big step in that direction,” remarked R. Trent Shores, United States Attorney for the Northern District of Oklahoma and Co-Chair of the Native American Issues Subcommittee.
“Working closely with the Chickasaw Nation to ensure justice is served for crimes committed on Chickasaw land is a priority for my office,” said Timothy J. Downing, United States Attorney for the Western District of Oklahoma. “These new grant funds fill help fill critical resource gaps, ensuring we can take a robust approach to safeguarding victims and their families from further harm.”
“Prosecuting domestic abusers before their violence turns lethal is critical to ensuring victims can survive the harm done to them, but so too are services that support victims’ recovery. Those services are what these grant funds provide,” noted Brian J. Kuester, United States Attorney for the Eastern District of Oklahoma.
The SAUSA project with the Chickasaw Nation is part of a $12 million grants package that OVW will award this year to bolster efforts in Oklahoma to combat domestic violence, which has reportedly increased in Tulsa and Oklahoma City in recent months. This new funding will reach rural and tribal communities throughout the state that also struggle with a growing need for justice solutions and victim services. Other specific grants are as follows:
Specific grants to Tulsa County and City of Tulsa:
• A $449,948 grant to the Tulsa County District Court to establish a docket for monitoring compliance among domestic violence offenders, and develop policies and training for court personnel and community partners on firearms surrender following a domestic violence conviction or issuance of a final protection order.
• A $750,000 award to the City of Tulsa to support domestic violence investigations, victim-witness services, and a new, specialized domestic violence prosecution unit.
The City of Tulsa, whose work OVW is proud to support again this year, recently reported that its grant funding has been critical to addressing high-risk domestic violence cases, fostering coordination among prosecutors and law enforcement on evidence collection, and connecting victims to advocates who can help them navigate the justice process and obtain services to help them rebuild their lives. Recognizing that ending domestic violence in Oklahoma requires partnerships among federal, tribal, and local justice agencies, OVW is pleased to invest in collaborative strategies that put safety in reach for victims in cities and on reservations throughout the state.
Specific grants to Oklahoma Tribes:
• A $407,000 grant to the Absentee Shawnee Tribe to update its tribal codes, policies, and procedures in preparation for exercising special domestic violence criminal jurisdiction under the Violence Against Women Act.
• Over $3 million under OVW’s Tribal Governments Program is slated to go to four tribes in Oklahoma—the Choctaw Nation of Oklahoma, the Pawnee Nation, the Iowa Tribe of Oklahoma, and the Delaware Tribe of Indians—to support coordinated community responses to violence against women.
Other awards that will be issued to organizations and government agencies in Oklahoma include:
• A $597,849 grant to the Native Alliance Against Violence, in Norman, to provide legal services for domestic violence and sexual assault victims in tribal communities. This organization will also receive $353,615 in formula funding to provide education, support, and technical assistance to tribes and tribal victim services providers.
• A $243,619 grant to the Oklahoma Coalition Against Domestic Violence and Sexual Assault to coordinate victim services and collaborate with federal, state, and local entities on addressing violence against women in Oklahoma.
• $2,019,340 in formula funds that support law enforcement, prosecutors, victim services providers, and courts in working collaboratively to respond to domestic and sexual violence.
Jury Finds Little Rock Felon Guilty of Possessing AmmunitionRead the Press Release
LITTLE ROCK—After a two-day trial, a federal jury has found Anthony Obi, Jr., 29, guilty of being a felon in possession of a firearm. The jury returned their verdict Tuesday evening after trial began on Monday and continued with testimony on Tuesday. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Obi, of Little Rock, at a later date.
“Felons with guns are a threat to the safety of our communities,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “This defendant fired a gun into a car full of people. We will not tolerate this reckless, dangerous behavior. This guilty verdict should signify to felons with firearms that we will investigate and prosecute them for the havoc they attempt to wreak in our society.”
Testimony during the trial established that in June 2019, police responded to a call in Southwest Little Rock. Officers made contact with four victims who stated that Anthony Obi had shot at their vehicle four or five times, striking the vehicle at least once and causing slight injuries when the glass from the driver’s side window broke. Obi was arrested shortly thereafter, wearing clothing that matched the description from the victims. He did not have a gun at the time of arrest, so he was charged with possessing the spent .45 caliber ammunition casings that were found at the scene.
Because Obi is a felon, having been convicted of possession of a controlled substance with intent to distribute in 2008, it is illegal for him to possess ammunition. A grand jury indicted Obi on one count of being a felon in possession of ammunition in November 2019.
“The Bureau of Alcohol, Tobacco, Firearms, and Explosives, in this joint effort, will continue to focus on repeat offenders like Anthony Obi, Jr., who is prohibited from possessing firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “Reducing firearm related crimes and keeping our neighborhoods and communities safe is the top priority for ATF.”
The statutory penalty for being a felon in possession of ammunition is not more than 10 years imprisonment, not more than three years of supervised release, and not more than a $250,000 fine. The investigation was conducted by the Little Rock Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the case was prosecuted by Assistant United States Attorneys Bart Dickinson and Amanda Fields.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Indictment: Investigation Began at Grocery StoreRead the Press Release
KANSAS CITY, KAN. – A Kansas man was indicted today on federal firearms and drug trafficking charges, U.S. Attorney Stephen McAllister said.
Pablo Martinez, 42, Kansas City, Kan., was charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of possession with intent to distribute marijuana.
Court documents allege the investigation began when law enforcement received a complaint from Balls Food Inc. that one of its employees was distributing marijuana. Investigators identified Martinez as the employee’s supplier.
When the Kansas Highway patrol stopped Martinez’s car for a traffic violation, a trooper found a .45 caliber handgun and more than a quarter pound of marijuana in the car. Martinez denied selling marijuana. He told investigators he himself smoked about a quarter pound of marijuana every five days.
If convicted, he could face a penalty not less than five years in federal prison on the charge of unlawful possession of a firearm in furtherance of drug trafficking, up to 10 years and fine up to $250,000 on the other firearm charge and up five years and a fine up to $250,000 on the marijuana charge. The FBI, the Kansas City, Kan., Police Department and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
OTHER INDICTMENTS
Dantay Ray Williams, 19, Topeka, Kan., is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred June 17, 2020 in Topeka.
If convicted, he could face a penalty of not less than five years in federal prison on firearm charge and up to five years and a fine up to $250,000 on the marijuana charge. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Anthony Contreras, 22, Overland Park, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon, one count of distributing fentanyl and one count of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 22, 2020, in Wyandotte County, Kan.
If convicted, he could face a penalty of not less than 20 years and a fine up to $1 million on the charge of distributing fentanyl, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the other firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Fermin Ramirez Bueno, 27, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 5, 2010, in Johnson County, Kan.
If convicted, he could face a penalty up to 10 years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien from Honduras Sentenced for Human SmugglingRead the Press Release
Gulfport, Miss. – Selvin Geovani Velazquez-Villanueva, 33, an illegal alien from Honduras, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to 24 months in federal prison, followed by 3 years of supervised release, for smuggling other illegal aliens, announced U.S. Attorney Mike Hurst, and Gilbert Trill, Acting Special Agent-in-Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans.
On February 11, 2020, a Harrison County Sheriff’s Deputy was patrolling Interstate 10 and observed a Chevrolet Trailblazer driving recklessly. The deputy initiated a traffic stop of the vehicle and a U.S. Border Patrol Agent arrived on the scene to assist. The deputy and the Border Patrol Agent encountered the driver, Selvin Geovani Velazquez-Villanueva, and detected numerous signs of smuggling. They determined that Velazquez-Villanueva and his five passengers did not have proper documents to be legally in the U.S., and all vehicle occupants were transported to the Border Patrol station in Gulfport for processing.
Velazquez-Villanueva and each of his five passengers had their fingerprints scanned into a U.S. Department of Homeland Security computerized records database which automatically matches fingerprints from prior immigration encounters. Velazquez-Villanueva was positively identified as an adult alien to the United States, who had been previously deported or removed from the U.S. Additionally, three of his passengers were confirmed to be illegal aliens who had been previously deported or removed from the U.S. and had knowingly returned without lawful permission.
Velazquez-Villanueva pled guilty before Judge Guirola on June 10, 2020. The three previously-deported illegal alien passengers being smuggled by Velazquez-Villanueva pled guilty and were sentenced for unlawful return by an alien after removal: Martinez-Torres, 32, of Mexico, pled guilty on July 23, 2020, and was sentenced to “time served;” Gerver Gudiel Vicente-Perez, 23, of Guatemala, pled guilty on June 29, 2020, and was sentenced to “time served;” and Jonathan Alexander Zamora-Amaya, 21, of El Salvador, pled guilty on June 4, 2020 and was sentenced to “time served.” All three of the passengers were also sentenced to a term of 1 year of supervised release and will undergo Department of Homeland Security removal proceedings to remove them back to their home nations.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houstonian on state bond ordered into federal custodyRead the Press Release
HOUSTON – A 20-year-old man has made an appearance in federal court and ordered detained on charges relating to sexual exploitation of a child, announced U.S. Attorney Ryan Patrick.
A federal grand jury returned the indictment against Javon Opoku Aug. 19. Authorities took him into custody Aug. 24.
Today, he appeared before U.S. Magistrate Judge Andrew M. Edison who found Opoku was a danger to the community and ordered him detained pending further criminal proceedings.
The court heard that Opoku had been pulled over for a traffic violation in February. According to testimony, Opoku was on a bond for capital murder, evading arrest and unlawful carrying of a weapon charges at the time of the stop. Law enforcement seized his cellphone and took him into custody. He was later released again on bond.
According to testimony today, Opoku had been on bond for eight different charges that stemmed from alleged activities on four different dates.
At the hearing, the court also heard that law enforcement conducted a search of his seized phone and discovered three videos that appeared to be child pornography. The videos all allegedly depict Opoku vaginally penetrating a 16-year-old female.
Common conditions of bond generally include that individuals not possess weapons, refrain from narcotics and not commit new offenses, according to testimony. The court heard Opoku had done some or all of this while out on his previous bond.
If convicted, Opoku faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine as well as restitution.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about 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."
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Holyoke Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke man pleaded guilty yesterday in federal court in Springfield to distributing heroin.
Luis Garcia-Figueroa, 20, pleaded guilty to eight counts of distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 22, 2020.
Garcia-Figueroa possessed with the intent to distribute and distributed heroin on eight occasions between October 2019 and Jan. 15, 2020.
The case was the result of an investigation into heroin trafficking in Holyoke.
The charging statute provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine $1 million on each count. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Hinton Man to Federal Prison for Child Pornography ConvictionRead the Press Release
On August 25, 2020, Shayne Yates, 49, from Hinton, Iowa, pled guilty to possessing child pornography and was sentenced to more than 2 years in federal prison.
Evidence at the hearing showed that from August 2017 through February 2019, Yates possessed over 150 images of child pornography on a Kindle Fire Tablet. The pornography contained visual depictions of minors engaged in sexually explicit conduct, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age.
Yates was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Yates was sentenced to 33 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Yates is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4092.
Follow us on Twitter @USAO_NDIA.
Harrison County Man Sentenced to 5 Years in Prison on Gun ChargeRead the Press Release
Gulfport, Miss – Benjamin Joseph Butler, 39, of Gulfport, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 60 months in prison, followed by 5 years of supervised release, for possessing a firearm in furtherance of drug trafficking, announced U.S. Attorney Mike Hurst and Kurt H. Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Butler was also ordered to pay a $5,000 fine.
Between August and October 2019, Butler sold marijuana to an individual on four separate occasions. Agents executed a search warrant on Butler’s home where they found marijuana, LSD, THC oil, Psilocybin mushroom, methamphetamine, 17 firearms, multi rounds of ammunition and two silencers.
Butler was charged in a federal criminal indictment and he pled guilty before Judge Guirola on June 4, 2020.
The Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Hampton Defense Contractor and Employees Indicted on Fraud ChargesRead the Press Release
NEWPORT NEWS, Va. – Federal charges were unsealed today in a case involving a Hampton-based business, its owner and employees, and their alleged involvement in an extensive procurement fraud scheme involving millions of dollars in government contracts targeting the Department of Defense and other federal government agencies.
According to allegations in the unsealed indictment, from at least 2011 through at least 2018, Iris Kim, Inc., (aka I-Tek), owner Beyung S. Kim, 61, of Newport News, and employees Seung Kim, 30, of Newport News, Dongjin Park, 53, of Yorktown, Chang You, 61, of Yorktown, Pyongkon Pak, 53, of Toano, and Li-Ling Tu, 57, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.
Based on the invoices submitted related to the contracts in this indictment, the United States paid I-Tek approximately $8.1 million from around January 2012 through about December 2018. The United States paid I-Tek approximately $24 million for the entirety of the contracts I-Tek supplied during this same time period, with over $20 million in revenue resulting from contracts where I-Tek obtained goods from China.
According to the indictment, these government contracts had certain set-aside preferences and source of good requirements. The indictment alleges that the defendants acted to defraud the United States by fraudulently importing goods into the United States that were made in China, in violation of the terms of these contracts. The defendants then falsely relabeled these goods as if they were made in the United States. The indictment further alleges that the defendants acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for certain set-aside contracts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement. Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Matthew Mattis are prosecuting the case.
The U.S. Small Business Administration’s Office of the Inspector General and the U.S. Department of State provided significant assistance to this 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. 4:20-cr-57.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Habitual Domestic Violence Offender Gets Maximum Sentence for Assaulting Pregnant VictimRead the Press Release
United States Attorney Joe Kelly announced that Clayton Bertucci, age 32, of Macy, Nebraska, was sentenced today to 60 months in prison by United States District Court Judge Brian C. Buescher for Domestic Assault by a Habitual Offender. This is the statutory maximum possible punishment that Bertucci could have received. There is no parole in the federal system. Upon his release from prison, Bertucci will serve 3 years of supervised release.
On December 22, 2018, the victim and Bertucci became involved in a domestic dispute at Bertucci’s mother’s house on the Omaha Indian Reservation. The victim left the residence and Bertucci pursued her and when he caught up to the victim, Bertucci hit the victim in the back of the head and knocked her to the ground. Bertucci continued to kick and hit the victim while she was still on the ground. Bertucci knew that the victim was pregnant at the time of the assault. Bertucci only stopped the assault when he saw a police car coming up the street and he fled the scene. Bertucci has two prior convictions for domestic abuse against this same victim from 2017 and 2018.
FBI Omaha Special Agent in Charge Kristi Johnson said, “The FBI is committed to its work in Indian Country. Domestic violence on tribal lands demands our attention. We will continue to find justice for every victim of this vicious crime.”
This case was investigated by the Macy Police Department and the Federal Bureau of Investigation.
Ghanaian Citizen Extradited in Connection with Prosecution of Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
Memphis, TN – A Ghanaian citizen residing in Tamale, Ghana, has been extradited to stand trial for an indictment charging him with wire fraud, money laundering, computer fraud and aggravated identity theft.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.
On Aug. 23, 2017, a federal grand jury in the U.S. District Court for the Western District of Tennessee indicted Maxwell Peter, 27, whose given name is Maxwell Atugba Abayeta, and others with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud and aggravated identity theft. Following his extradition, Peter’s initial appearance was made Tuesday before U.S. Magistrate Judge Charmiane G. Claxton for the Western District of Tennessee.
The indictment alleges that various Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business-email compromise, or BEC, this aspect of the scheme caused hundreds of thousands of dollars in losses to companies and individuals in Memphis. The defendant is specifically alleged to have directed the transfer of funds from a June 2016 BEC to a co-conspirator in Africa.
U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud often involve foreign nationals and others who hide behind technology, the cases are difficult – but not impossible – to investigate. With this extradition, this foreign defendant will now face justice in an American courtroom here in Memphis."
In addition to BEC, the defendant is also charged with perpetrating romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendant is specifically alleged to have created and used the alias "Sandra Lin" in furtherance of these crimes. From May through June of 2017, Peter is alleged to have communicated with an FBI agent acting in an undercover capacity to receive the proceeds of fraud. Along with his coconspirators over the life of the conspiracy, the defendant is believed to have caused millions of dollars in losses to victims across the globe.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seven other individuals have pleaded guilty to being involved in these schemes. Benard E. Okorhi, 41, was extradited in March 2020 from Canada, and is detained pending trial. Two others, Olufalojimi Abegunde, 33, and Javier Luis Ramos-Alonso, 30, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Abegunde received a 78-month sentence and Ramos-Alonso received a 31-month sentence for their roles in the scheme. Several individuals remain at large.
The FBI led the investigation. The Justice Department’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, FBI’s Money Laundering, Forfeiture, and Bank Fraud Unit of the Criminal Investigative Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of the Attorney-General & Ministry of Justice, and Ghana’s Economic and Organised Crime Office.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Ghanaian Citizen Extradited in Connection with Prosecution of Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
A Ghanaian citizen residing in Tamale, Ghana, has been extradited to stand trial for an indictment charging him with wire fraud, money laundering, computer fraud and aggravated identity theft.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.
On Aug. 23, 2017, a federal grand jury in the U.S. District Court for the Western District of Tennessee indicted Maxwell Peter, 27, whose given name is Maxwell Atugba Abayeta, and others with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud and aggravated identity theft. Following his extradition, Peter’s initial appearance was made Tuesday before U.S. Magistrate Judge Charmiane G. Claxton for the Western District of Tennessee.
The indictment alleges that various Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business-email compromise, or BEC, this aspect of the scheme caused hundreds of thousands of dollars in losses to companies and individuals in Memphis. The defendant is specifically alleged to have directed the transfer of funds from a June 2016 BEC to a co-conspirator in Africa.
In addition to BEC, the defendant is also charged with perpetrating romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendant is specifically alleged to have created and used the alias “Sandra Lin” in furtherance of these crimes. From May through June of 2017, Peter is alleged to have communicated with an FBI agent acting in an undercover capacity to receive the proceeds of fraud. Along with his coconspirators over the life of the conspiracy, the defendant is believed to have caused millions of dollars in losses to victims across the globe.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seven other individuals have pleaded guilty to being involved in these schemes. Benard E. Okorhi, 41, was extradited in March 2020 from Canada, and is detained pending trial. Two others, Olufalojimi Abegunde, 33, and Javier Luis Ramos-Alonso, 30, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Abegunde received a 78-month sentence and Ramos-Alonso received a 31-month sentence for their roles in the scheme. Several individuals remain at large.
The FBI led the investigation. The Justice Department’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, FBI’s Money Laundering, Forfeiture, and Bank Fraud Unit of the Criminal Investigative Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of the Attorney-General & Ministry of Justice, and Ghana’s Economic and Organised Crime Office.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
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.
Fourth Person Admits Trafficking High-Dosage Oxycodone Pills Related to Gloucester City Drug RingRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted buying and reselling high-dosage oxycodone pills in Gloucester City, New Jersey, U.S. Attorney Craig Carpenito announced.
Kenneth Rushworth, 59, of Gloucester City, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone. He is the fourth individual to plead guilty for his role in drug trafficking operations based in Gloucester City and Camden.
According to documents filed in this case and statements made in court:
In communications that were intercepted during a wiretap investigation led by the FBI, Rushworth asked Rocco DePoder to provide Rushworth with $1,100 for high-dosage oxycodone pills on Jan. 25, 2020. Rushworth and DePoder then met in Gloucester City and, in exchange for the $1,100, Rushworth sold DePoder a quantity of 60 mg. oxycodone pills, which Rushworth had purchased from another individual for $900. Rushworth was aware that DePoder intended to re-distribute those high-dose pills.
On July 7, 2020, Wayne Muse pleaded guilty to his involvement in the drug trafficking operations with DePoder and Erick Bell. DePoder, Bell, and others were charged in criminal complaints in March 2020. On Aug. 11, 2020, Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey, pleaded guilty before Judge Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone. On Aug. 12, 2020, Steven Walker, 47, of Camden, pleaded guilty before Judge Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of oxycodone and one count of distributing and possessing with intent to distribute a quantity of oxycodone. The individuals who have pleaded guilty await sentencing.
The count of distributing and possessing with intent to distribute a quantity of oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Rushworth’s sentencing is scheduled for Jan. 4, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea. He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch and Sara F. Merin of the Newark Office.
The charges against DePoder and Bell remain pending, and they are presumed innocent unless and until proven guilty.
Former fugitive and alleged gang member charged with trafficking fentanylRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment against a former Texas top 10 fugitive and alleged member of the Aryan Brotherhood of Texas, announced U.S. Attorney Ryan K. Patrick.
The indictment was unsealed today charging Tyral Glenn Turner, 34, of Mathis. He had been in state custody on related charges. He is expected to appear in Corpus Christi federal court before U.S. Magistrate Judge Jason B. Libby Sept. 2.
The indictment charges Turner with one count of possession with intent to distribute over 350 grams of fentanyl and one count of unlawful possession of a firearm by a felon.
Authorities apprehended Turner June 26 as part of Operation Triple Beam, a collaboration of federal, state and local authorities targeting alleged violent gang members in the gulf coast region. At the time of his arrest, law enforcement allegedly seized over 350 grams of fentanyl packaged for distribution.
The charges further allege he also had a loaded 9 mm glock model 19 in his possession. Turner is a convicted felon. As such, he is prohibited by federal law of possessing a firearm or ammunition.
If convicted of the drug charges, he faces up to 40 years in federal prison and a possible $5 million maximum fine. The gun charge carries a 10-year-maximum possible penalty.
The U.S. Marshals Service and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former South Dakota Attorney Indicted for Fraud and Money LaunderingRead the Press Release
United States Attorney Ron Parsons announced that a Vale, South Dakota, woman was charged in federal district court with thirty counts of Wire Fraud, ten counts of Money Laundering, and one count of Bank Fraud.
Rena M. Hymans, age 48, was indicted by a federal grand jury on August 20, 2020. Hymans appeared before U.S. Magistrate Judge Daneta Wollmann on August 24, 2020, and pleaded not guilty to the charges. The maximum penalty on each count of wire fraud is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty on each count of money laundering is 20 years in federal prison and/or a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty for bank fraud is 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between June 2017 and January 2020, Hymans, in her capacity as a South Dakota licensed attorney, devised a scheme to fraudulently obtain money by transferring it from a client trust account – where she was holding it for the benefit of a client – to her own business and personal accounts and then using the money for her personal benefit.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case. The charges are merely accusations and Hymans is presumed innocent until and unless proven guilty.
Hymans was released pending trial. A trial date has not been set.
Former Head of St. Louis-Area Charter School Pleads Guilty to $2.4 Million FraudRead the Press Release
St. Louis, MO – Michael Malone, 44, of St. Louis, MO, pled guilty to three counts of wire fraud connected to a scheme to defraud and obtain education funds from the State of Missouri relative to the operation of the St. Louis College Prep Charter School from 2011 through 2018. Malone appeared today before U.S. District Judge Audrey Fleissig, who accepted his plea and set sentencing for November 30, 2020.
According to the plea agreement and statements made in Court, The St. Louis College Prep Charter School (“SLCP”) was a Missouri Charter School located in St. Louis, Missouri. From April, 2011 through June, 2015 it operated out of leased premises at 2900 South Grand Avenue, at which time it purchased a building at 1224 Grattan Street, where it operated until the school’s closing in May, 2019. During its final school year of 2018-2019, SLCP served students in grades six through twelve. As a Missouri Charter School, SLCP was tuition free and funded by Missouri and federal education funds. SLCP received its state funding through Missouri’s Department of Elementary and Secondary Education (“DESE”) based upon SLCP’s reported student attendance. Per-student funding is based on average daily attendance, or how often students are reported to be in the school, rather than enrollment. Malone founded SLCP and served as the Executive Director of SLCP from the school’s inception during 2011 until his resignation on November 1, 2018. Malone was actively involved in the day-to-day management and administration of SLCP, maintained his office in the primary school building and was responsible for reporting the SLCP student attendance numbers to DESE in order for DESE to calculate SLCP’s state funding.
As part of his scheme, Malone falsely inflated SLCP students’ average daily attendance in his reports to DESE. For four of the seven school years between 2011-2012 and 2017-2018, Malone reported students’ average daily attendance in excess of SLCP’s actual enrollment. For example, during the 2013-2014 school year, Malone reported average daily attendance of 220, when actual enrollment at SLCP was only 191 students. During the 2016-2017 school year, Malone reported average daily attendance of 326, when actual enrollment at SLCP was only 290 students. These falsely inflated average daily attendance numbers reported by Malone to DESE resulted in increased state funding to SLCP.
SCLP operated on a year-long school schedule and an extended school day with no summer school and no remedial classes. However, as part of his scheme, Malone inflated student attendance numbers by falsely claiming regular school days and hours as summer school or remedial hours, increasing the state funding received from DESE. Malone also falsely inflated actual student daily attendance. For example, during the 2016-2017 school year, Malone inflated the daily attendance records of 81 out of 333 students, or 24% of the actual SLCP student body. During the 2017-2018 school year, Malone inflated the daily attendance records of 188 out of 319 students, or 59% of the actual SLCP student body. Inflated hours totaled approximately 10,044 hours for the 2016-2017 school year and approximately 13,255 hours for the 2017-2018 school year.
Malone used the fraudulently obtained increase in state funding, approximately $2,400,000, to maintain SLCP’s ongoing operations during a period when costs to operate the school were increasing significantly. Malone also used the increased state funding to give SLCP a competitive advantage over St. Louis Public Schools and other St. Louis Charter Schools when recruiting students. As Missouri state funding follows the student, each St. Louis resident student successfully recruited to SLCP meant an increase in funding for SLCP and a decrease in funding for St. Louis Public Schools. The additional funds provided to SLCP were used to pay for resources which were not equally accessible to St. Louis Public Schools and other St. Louis Charter Schools.
United States Attorney Jeff Jensen stated, “What the former headmaster did through his deception, repeatedly over many years, was take advantage of the Missouri taxpayers, while obtaining an unfair advantage over the St. Louis Public Schools and other area charter schools. This was not a mistake. Evidence proved Michael Malone’s actions were intentional and, unfortunately he got away with it for years.”
"Michael Malone failed more than just students and staff at St. Louis College Prep Charter School," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "By siphoning $2,400,000 from a finite pool of education dollars, he robbed students at other public and charter schools of additional resources they should have received."
Each charge of wire fraud carries a maximum possible penalty of twenty years imprisonment, a fine of $250,000 or both imprisonment and a fine. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of the Missouri Department of Elementary and Secondary Education and the Missouri State Auditor’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
Former Director of Tribal Development Entity Pleads Guilty to BriberyRead the Press Release
United States Attorney Ron Parsons has announced the following plea, identified below, brought by the Guardians Project, a collaborative federal law enforcement initiative in the District of South Dakota designed to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those responsible for adversely affecting those living in South Dakota’s tribal communities.
Guilty Plea for Bribery Related to Programs Receiving Federal Funds
Daniel Thomas White, age 44 of Peever, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 24, 2020, and pleaded guilty to bribery concerning programs receiving federal funds.
At the time of the bribery scheme, White served as the Director of the Dakota Nations Development Corporation (DNDC), an entity of the Sisseton-Wahpeton Oyate Sioux Tribe. White’s duties included, among other things, overseeing housing and construction projects of the DNDC.
DNDC, by and through the tribe, received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018. DNDC established an entity called the SWO Elderly Village Limited Partnership. The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land. On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex. The tribe also committed nearly $3,000,000 to the project.
On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679. According to documents filed with the Court, on or about November 6, 2017, White corruptly solicited, demanded, and agreed to accept a thing of value from a person or persons working for and on behalf of Tatanka Contracting, intending to be influenced and rewarded in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
A sentencing date of May 24, 2021, has been set.
Florida Man Sentenced to 105 Months in Prison for Role in $16 Million Miami Health Care Fraud and Wire Fraud SchemeRead the Press Release
Miami, Fl. – A federal judge in Miami sentenced Roberto Murillo, 44, of North Port, Florida, to 105 months in prison for his role in a massive health care fraud and wire fraud scheme involving fraudulent physical therapy claims. Senior U.S. District Judge Patricia A. Seitz imposed the sentence, which came after a Miami jury found Murillo guilty in January 2020 of all counts charged, including conspiracy to commit health care fraud and wire fraud, and several counts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
The evidence at trial revealed that during the illegal scheme, Murillo had a legitimate job at a Miami telecommunications call center, and he received private insurance coverage through that job. As part of the fraud, Murillo used his position to recruit dozens of his colleagues, many of whom who he knew were suffering various financial and personal hardships, to Friv MD, PLLC, a fraudulent Miami physical therapy clinic in exchange for cash bribes. Murillo also forced family members living under his roof to allow Murillo and his co-conspirators to use their insurance information to submit additional fraudulent claims. The clinic, in turn, submitted over $16 million in claims to United Healthcare for services that were not performed or not medically necessary.
Trial evidence established that Murillo’s role in the lengthy scheme did not stop at recruiting others to Friv MD. Murillo also instructed the recruited “patients” to fill out paperwork for dates they did not receive services, to describe ailments they did not have to the therapists at the clinic, and to lie when questioned by investigators about the illegal scheme. In some instances, Murillo also failed to pay the cash that he had promised to give recruited “patients” in exchange for their signatures, keeping it instead for himself.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Anne P. McNamara and Fraud Section Trial Attorney Drew Bradylyons. Assistant U.S. Attorney Adrienne E. Rosen handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under Case No. 19-CR-20436-PAS.
Federal Jury Convicts Two Individuals for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Birmingham, Ala. – A federal jury today convicted two individuals for conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, announced U.S. Attorney Prim Escalona, Homeland Security Investigations Special Agent in Charge Robert Hammer, and Secretary of the Alabama Law Enforcement Agency Hal Taylor.
The jury returned its guilty verdict against Isiah Thomas, 36, of Bessemer and Tavara Gissendanner, 36, of Newville after three days of testimony before Chief U.S. District Judge L. Scott Coogler.
“This verdict serves as notice to every individual involved in illegal narcotics distribution,” Escalona said. “My office remains committed to working with our law enforcement partners to bring to justice those who deal this deadly poison in our communities.”
“The success of this multi-faceted investigation would not have been possible without our ALEA partners and the assistance of the Alabama DOC,” Homeland Security Investigations Special Agent in Charge Robert Hammer. “Law enforcement partnerships at the federal, state, and local levels are key to ensuring public safety. We are extremely proud to have been a part of the team of law enforcement professionals that brought these individuals to justice.”
Secretary of the Alabama Law Enforcement Agency Hal Taylor said, “This conviction demonstrates our continued determination and dedication to completely eliminate and end this horrible epidemic caused by drug trackers; that not only faces our state but the entire nation. The Alabama Law Enforcement Agency is fully committed to our partnership with federal and local law enforcement agencies to ensure the safety of all Alabama citizens.”
Evidence at trial proved that in early 2019 Gissendanner directed a network of associates in trafficking quantities of narcotics – including heroin, methamphetamine, and fentanyl – and money across the state. Gissendanner orchestrated the drug trafficking while in Alabama Department of Corrections custody, in part through the use of contraband cellular phones he obtained in prison. One of his associates, Thomas, was arrested in April 2019 when he received a shipment of two kilograms of heroin and a drug press orchestrated by Gissendanner. Investigators intercepted the shipment before it was delivered to Thomas and substituted the actual heroin with mock narcotics in similar packaging. The intercepted heroin was worth an estimated $150,000. Additional seizures in the case included quantities of methamphetamine, cocaine, heroin-fentanyl mixtures, and cash.
The maximum penalty for conspiracy to possess with intent to distribute and distribution of over one kilogram or more of heroin is life in prison.
The investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Homeland Security Investigations and the Alabama Law Enforcement Agency investigated the case with the assistance of the Alabama Department of Corrections. Assistant U.S. Attorneys Austin Shutt and Allison Garnett prosecuted the case.
Federal Judge in Waco Hands Down Prison Terms to Project Safe Childhood DefendantsRead the Press Release
In Waco, U.S. District Judge Alan Albright sentenced two men to lengthy federal prison terms for possession of child pornography, announced U.S. Attorney John F. Bash.
Today, Judge Albright sentenced 34-year-old Derek Loyd Ward of Whitney, TX, to 240 months in federal prison followed by ten years of supervised release. Judge Albright also ordered that Ward pay $10,000 in restitution. On October 8, 2019, Ward pleaded guilty to one count of possession of child pornography. On May 30, 2019, authorities executed a search warrant at the defendant’s residence and seized his personal computer and related media. A forensics review of the seized materials revealed the presence of approximately 550 videos and 875 images depicting minors engaged in sexually explicit conduct.
Yesterday, Judge Albright sentenced 28-year-old Tyler Christopher Benson of Killeen, TX, to 110 months in federal prison followed by five years of supervised release. On October 15, 2019, Benson pleaded guilty to one count of possession of child pornography. On October 26, 2017, authorities executed a search warrant at the defendant’s residence and seized his laptop computer and cellular telephone. A forensics review of the computer and cell phone revealed the presence of approximately 775 videos and 360 images depicting minors engaged in sexually explicit conduct.
“Those who possess child pornography sustain the market for the abuse of children. Today’s sentence was richly deserved,” stated U.S. Attorney Bash.
The Child Exploitation Division of the Texas Attorney General’s Office investigated these cases. Assistant U.S. Attorney Greg Gloff prosecuted these cases on behalf of the government.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.