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26 August 2020
Fashion District Outfit and Company Owner Agree to Plead Guilty to Customs Violations, Tax Offenses and Pay Nearly $118 MillionRead the Press Release
LOS ANGELES – Federal prosecutors have filed charges against a Fashion District clothing importer and the company’s owner in a scheme to undervalue imported garments and avoid paying millions of dollars in duties to the United States. The cases also allege a tax fraud scheme in which the company’s owner failed to report on tax returns millions of dollars derived from cash transactions.
In conjunction with the criminal charges filed late Tuesday, prosecutors also filed plea agreements in which Ambiance Apparel and company owner Sang Bum “Ed” Noh agreed to plead guilty to felony offenses and pay a total of $117,897,708, which includes nearly $36 million in cash seized from Ambiance and Noh in 2014.
Noh, 66, of Bel Air, agreed to plead guilty to one count of conspiracy and one count of subscribing to a false tax return, charges that carry a statutory maximum penalty of eight years in federal prison.
Ambiance Apparel – the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A., Inc. – agreed to plead guilty to eight counts, including conspiracy, money laundering, and customs offenses.
Court documents outline separate schemes involving Ambiance and Noh, which came to an end in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses.
In the customs fraud scheme, Ambiance imported clothing from Asian countries and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments and allowed Ambiance to avoid paying the full amount of tariffs owed on the imports, according to court documents. At Noh’s direction, the Asian manufacturers prepared two invoices for the clothing ordered by Ambiance – one that usually reflected 60 to 70 percent of the actual price and was paid by letter of credit, and one that reflected the balance of the actual price and was paid by wire transfer. The first invoice, which fraudulently reduced the value of the shipment, was submitted to CBP and was used to calculate the tariffs due on the imports. As a result of this scheme, over the course of just over 4½ years, Ambiance undervalued imports by about $82.6 million and failed to pay more than $17.1 million in tariffs. In the plea agreement filed today, Ambiance and Noh have agreed to pay U.S. Customs and Border Protection a total of $18.42 million, which includes the unpaid tariffs and interest accrued through 2014.
In the second scheme outlined in a statement of facts filed Tuesday, Ambiance admitted it failed to file reports with the Secretary of the Treasury that documented cash transactions of more than $10,000. Ambiance employees received approximately 364 payments of more than $10,000 over a two-year period – which totaled more than $11.1 million – and the company failed to file a single Form 8300 to alert federal authorities to the cash transactions.
In conjunction with these cash transactions, Ambiance used two sets of books to record sales, one of which documented only cash transactions and was not reported to Ambiance’s outside accountants. Noh also directed some of the second set of transactions to be underreported to the accountants. The lower sales figures were reported on 2011 and 2012 tax returns filed by Noh. Noh admitted that he failed to report income for those two years and now owes the Internal Revenue Service a total more than $16.8 million, which includes unpaid taxes, penalties and interest.
Noh and Ambiance will be summonsed to appear for arraignments on September 14 in United States District Court.
Once the guilty pleas are entered on behalf of Ambiance, the company expects to be placed on probation for five years, during which time it will implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor.
The case against Ambiance and Noh was investigated by Homeland Security Investigations, IRS Criminal Investigation, U.S. Customs and Border Protection, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department.
This matter is being prosecuted by Assistant United States Attorney Lucy B. Jennings of the International Narcotics, Money Laundering, and Racketeering Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section is also working on this case. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force.
Fairfax Man Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Ryan Michael Kannett appeared in federal court today on a criminal complaint alleging that he possessed child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations Special Agent in Charge Tatum King.
An affidavit filed by an HSI agent in connection with the criminal complaint alleged that Kannett, 36, of Fairfax, used the handle “Sir Sicko,” among others, to engage online with an individual whom he believed to be interested in child pornography, but who in fact was an undercover agent. Kannett allegedly provided the agent with several videos and images depicting sexual acts with minors. Agents then traced the IP addresses from which those files were sent and found the IP addresses were linked to Kannett’s residence in Fairfax. Agents executed a search warrant at that residence and recovered a tablet device that allegedly contained approximately 454 videos depicting child pornography, including videos depicting minors forced to engage in bestiality and bondage. One video in particular was approximately 8 minutes long, and showed an adult female sexually and physically abusing a girl who appeared to be approximately 2 to 5 years old.
Kannett was arrested on December 17, 2019 in Fairfax, Calif., and made his initial appearance in federal court in San Francisco this morning before the Honorable U.S. Magistrate Judge Thomas S. Hixson. Kannett is currently detained pending further proceedings. His next scheduled appearance is at 10:30 a.m. on October 12, 2020, for status before U.S. Magistrate Judge Thomas S. Hixson.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years, and a fine of $250,000, plus restitution for each violation of Title 18 United States Code § 2252. 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.
Assistant U.S. Attorney Molly A. Smolen is prosecuting the case with the assistance of Senna Milstead. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations.
Dubuque Man Pleads Guilty to Illegally Possessing a Firearm Following New Year’s Day ShootingRead the Press Release
A man who was involved in a shooting in Dubuque, Iowa, during the early morning hours of New Year’s Day pled guilty on August 25, 2020, in federal court in Cedar Rapids.
Katwan Montez Brown, age 27, from Dubuque, Iowa, was convicted of being a felon and domestic abuser in possession of a firearm.
Evidence at a prior hearing showed that Brown handed a pistol to another person after that person had been in an argument in the street during the early morning hours of New Year’s Day 2020. Video evidence showed that, shortly after Brown gave this person the pistol, that person shot multiple times from the doorway of a home, striking one individual. After the shooting, Brown left the house and ran to an alleyway behind it, returning moments later. Dubuque police officers later found a pistol in the alleyway, as well as a cell phone and identification belonging to Brown. Brown’s fingerprints were found on the magazine inside the pistol. Brown had previously been convicted of felony forgery and felony possession with intent to distribute marijuana in 2013 and felony possession of contraband in a correctional facility in 2018. He was also convicted of domestic abuse assault with strangulation and domestic abuse assault causing bodily injury in 2015, and domestic abuse assault causing bodily injury, second offense, in 2017.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Brown remains in custody of the United States Marshal pending sentencing. Brown faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR‑1013‑CJW‑MAR.
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Drug-trafficking gang member sentenced to prison for leading narcotics distribution conspiracyRead the Press Release
SAVANNAH, GA: A Liberty County man who brought kilos of methamphetamine to the community for redistribution has been sentenced to more than 20 years in federal prison.
Stacey White, 33, of Hinesville, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 246 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. White also must serve five years of supervised release after completion of his prison term. There is no parole in the federal system.
“Methamphetamine is a dangerous, highly addictive drug that destroys lives and damages communities, and Stacey White is responsible for distributing it throughout the Southern District,” said U.S. Attorney Christine. “Thanks to the dedicated work of our law enforcement partners, his days of spreading poison are over.”
According to court documents and testimony, starting as early as July 2016 through December 2018, White made multiple trips each month to the Atlanta area to obtain up to two kilograms at a time of methamphetamine from a supplier. He then would return to the Southern District where he recruited other defendants to assist him in selling the drugs.
White, a certified member of the violent Bloods criminal street gang, was arrested along with another conspirator in December 2018 while retrieving stolen methamphetamine in Florida. Of the other five members of the conspiracy who were indicted with White in February 2019, three are serving prison terms after entering guilty pleas, while two are in custody and awaiting trial.
White’s criminal record includes multiple arrests over the past decade, with three prior felony convictions in state court. He was on probation on state charges at the time of his arrest.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The successful results of this investigation should let criminals who flood our communities with methamphetamine know that DEA and its law enforcement partners will not hesitate to use all its resources to destroy their drug distribution networks. These defendants will no longer be able to feed the addicts who struggle with this toxic substance.”
“Illegal drugs and gangs have no place in Georgia,” said GBI Director Vic Reynolds. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations that threaten the safety of our communities.”
This drug-trafficking conspiracy was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and the Liberty County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Jenna Solari.
District Court Enters Permanent Injunction Shutting Down Telecom Carriers Who Facilitated Hundreds of Millions of Fraudulent Robocalls to Victim Consumers in the United StatesRead the Press Release
WASHINGTON – The U.S. District Court for the Eastern District of New York has permanently barred two individuals and two companies that transmitted massive volumes of fraudulent robocalls from operating as intermediate voice-over-internet-protocol (VoIP) carriers conveying telephone calls into the U.S. telephone system, the Department of Justice announced today. The consent decree entered yesterday by United States District Judge Eric R. Komitee resolves a civil complaint brought by the United States Attorney’s Office for the Eastern District of New York and the Department’s Consumer Protection Branch.
As alleged in a civil complaint filed earlier this year, in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of internet based calls every day from other entities, often located abroad. The defendants transmitted those calls first to other carriers within the United States, and ultimately to the phones of individuals, knowing that the calls were fraudulent government and business-imposter robocalls.
Many of the robocalls were made by individuals impersonating government investigators conveying false and alarming messages, such as the victim recipient’s social security number or other personal information had been compromised or otherwise connected to criminal activity, the recipient faced imminent arrest, the recipient’s assets were being frozen, the recipient’s bank and credit accounts had suspect activity, the recipient’s benefits were being stopped, and the recipient faced imminent deportation – each designed to frighten the recipient into paying large sums of money. Often the numbers that appeared as the originating or caller-ID numbers were “spoofed” to make it appear that they originated from legitimate government or business offices in the United States when in fact they were made by overseas scammers, often located in India. The defendants also sold to foreign call centers toll-free and other U.S. numbers that were left in fraudulent robocall messages on victims’ phones to deceive them into believing that the calls were legitimate and originated in the United States. These calls led to significant financial losses to victims throughout the United States and the Eastern District of New York, many of whom were elderly and vulnerable.
“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” stated Acting United States Attorney Seth D. DuCharme.
“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard earned savings,” stated Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “The Department will prosecute both those who place fraudulent robocalls, and those who knowingly facilitate such calls for profit. The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”
“The Court's decision sends a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” stated Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network. I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”
Under the terms of the consent decree entered yesterday, the defendants agreed to be permanently barred from using the U.S. telephone system to deliver prerecorded messages through automatic means, carrying VoIP calls destined for phones in the United States, and providing any U.S. phone numbers to other individuals or entities. In addition, the defendants are permanently barred from serving as employees, agents or consultants to any person or entity engaged in these activities.
This case was handled by Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the United States Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service. Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service. The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
District Court Enters Permanent Injunction Shutting Down Telecom Carriers Who Facilitated Hundreds of Millions of Fraudulent Robocalls to Consumers in the United StatesRead the Press Release
WASHINGTON – The U.S. District Court for the Eastern District of New York entered a consent decree imposing a permanent injunction barring two individuals and two companies that transmitted massive volumes of fraudulent robocalls from conveying any telephone calls into the U.S. telephone system, the Department of Justice announced today.
As alleged in a civil complaint filed earlier this year in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of fraudulent internet-based calls every day from other entities, often located abroad. Those calls were then transmitted, initially to other carriers within the United States and ultimately, to the phones of individuals. The defendants are alleged to have knowingly allowed numerous foreign-based individuals and entities to transmit fraudulent government- and business-imposter robocalls through defendants’ network and on to victims in the United States. These fraudulent robocalls included millions of calls impersonating the Social Security Administration, threatening the recipients of the calls with arrest or asset seizure if they did not immediately transfer funds to the caller. The defendants also sold U.S. telephone numbers to foreign entities, which were used as victim call-back numbers as part of massive robocalling fraud schemes, to give the impression that the fraudsters were located in the United States. These calls led to massive financial losses to elderly and other vulnerable victims throughout the United States.
“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard-earned savings,” said Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “The Department will pursue not only those who place fraudulent robocalls, but also those who knowingly facilitate such calls. The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”
“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” said Acting U.S. Attorney Seth D. DuCharme.
“We are pleased that all five companies named by the Department of Justice in this civil matter are now permanently enjoined from facilitating Social Security scam calls. The facts clearly show these companies, and their owners, knowingly did business with government imposter telephone scammers, resulting in financial and emotional harm to unsuspecting consumers,” said Inspector General Ennis. “I want to thank DOJ’s Consumer Protection Branch, the U.S. Postal Inspection Service, and our other law enforcement partners who provided assistance and support throughout this investigation.”
In a written opinion issued in March of this year, the District Court found that, despite being warned more than 100 times of specific instances of fraudulent calls being transmitted through their network, the defendants never severed their business relationship with any entity they learned was associated with fraudulent call traffic prior to the United States’ filing of its lawsuit. The Court held that “at the very least… defendants’ failure to take meaningful action in response to these complaints demonstrates reckless indifference to the fraud they were enabling. Over time, it became increasingly clear that they knew or should have known the complaints evidenced a widespread pattern of fraudulent calls being transmitted over their network.”
Under the terms of the consent decree entered today by the District Court, the defendants agreed to be permanently barred from, among other things, using the U.S. telephone system to: deliver prerecorded messages through automatic means, carry voice-over internet protocol calls destined for phones in the United States, and not to provide any U.S. phone numbers to other individuals or entities. In addition, the defendants are permanently barred from serving as employees, agents, or consultants to any person or entity engaged in these activities.
This case was handled by Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service. Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service. The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Developer Admits to Working with Bank Executives to Defraud First NBC Bank Out of over $123 MillionRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that GARY R. GIBBS (“GIBBS”), age 66, a resident of Niceville, Florida, pled guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2010 through April 2017, GIBBS had a banking relationship with First NBC Bank, individually and through various corporate entities he controlled. During that time, GIBBS and his entities were regularly unable to pay existing loans or overdrafts on First NBC Bank accounts. Bank President Ashton Ryan Jr., Chief Credit Officer William Burnell, and Executive Vice President Robert Calloway, who were all charged on July 10 in a 46-count indictment, disguised GIBBS’s and his entities’ true financial condition by making new loans to pay GIBBS’s existing loans and to cover his overdrafts. They falsely stated in loan documents that GIBBS was able to pay his loans with cash generated by his businesses, and they hid from the First NBC Bank Board of Directors, auditors, and examiners that GIBBS was only making his existing loan payments by getting new loans from First NBC Bank. Ryan, Burnell, and Calloway hid the fact that they actually made loans to GIBBS to keep him and his entities off of month-end reports to the Board, auditors, and examiners. These month-end reports listed borrowers who were not paying their loans or whose accounts were overdrawn. By keeping GIBBS and his entities off of those reports, Ryan, Burnell, and Calloway were able to hide their scheme to keep lending to GIBBS despite his inability to pay his loans.
When GIBBS told Ryan and Calloway that he was considering filing bankruptcy or not paying his loans, Ryan told GIBBS that First NBC Bank could not afford for GIBBS to default on the loans. After that, Ryan, Burnell, and Calloway continued to make false statements and material omissions in loan documents to hide from the Board, auditors, and examiners that the purpose of the new loans was to keep GIBBS and his entities from defaulting and that, in reality, GIBBS was not able to make his payments to the bank without receiving proceeds from new loans. Neither Ryan nor Calloway ever disclosed to the Board, auditors, or examiners that GIBBS was considering defaulting on his loans or filing bankruptcy, because that would have revealed that GIBBS did not generate enough cash to pay his loans.
To hide their scheme, Ryan directed GIBBS to inflate certain financial statements that GIBBS provided to First NBC Bank, by falsely increasing the income of GIBBS’s entities to hide the amount of money these entities were losing. Ryan did not tell the Board, auditors, or examiners that GIBBS inflated his financial statements at Ryan’s direction. Calloway also made false statements to First NBC Bank’s external auditors about GIBBS and his loans. By the time First NBC Bank failed in April of 2017, GIBBS and his entities owed the bank over $123 million.
“Today’s guilty plea demonstrates the FDIC OIG and our law enforcement partners will not tolerate criminals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Laurie Younger, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. This guilty plea should be a deterrent to others who would attempt to manipulate the nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We are committed to working with our law enforcement partners in holding accountable wrongdoers whose fraudulent actions materially impact financial institutions regulated and supervised by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
GIBBS pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed at sentencing are thirty years in prison; a fine of the greater of twice the gain to GIBBS or twice the loss to any victim; and up to five years of supervised release.
Judge Jane Triche Milazzo set GIBBS’s sentencing for December 2, 2020.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
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Department of Justice Requesting Data from Governors of States that Issued COVID-19 Orders that May Have Resulted in Deaths of Elderly Nursing Home ResidentsRead the Press Release
Today the Justice Department requested COVID-19 data from the governors of states that issued orders which may have resulted in the deaths of thousands of elderly nursing home residents. New York, New Jersey, Pennsylvania, and Michigan required nursing homes to admit COVID-19 patients to their vulnerable populations, often without adequate testing.
For example, on March 25, 2020, New York ordered: “No resident shall be denied re-admission or admission to [a nursing home] solely based on a confirmed or suspected diagnosis of COVID-19. [Nursing homes] are prohibited from requiring a hospitalized resident who is determined medically stable to be tested for COVID-19 prior to admission or readmission.”
“Protecting the rights of some of society’s most vulnerable members, including elderly nursing home residents, is one of our country’s most important obligations,” said Assistant Attorney General for Civil Rights Division Eric Dreiband. “We must ensure they are adequately cared for with dignity and respect and not unnecessarily put at risk.”
According to the Centers for Disease Control, New York has the highest number of COVID-19 deaths in the United States, with 32,592 victims, many of them elderly. New York’s death rate by population is the second highest in the country with 1,680 deaths per million people. New Jersey’s death rate by population is 1,733 deaths per million people – the highest in the nation. In contrast, Texas’s death rate by population is 380 deaths per million people; and Texas has just over 11,000 deaths, though its population is 50 percent larger than New York and has many more recorded cases of COVID-19 – 577,537 cases in Texas versus 430,885 cases in New York. Florida’s COVID-19 death rate is 480 deaths per million; with total deaths of 10,325 and a population slightly larger than New York.
The Department of Justice’s Civil Rights Division is evaluating whether to initiate investigations under the federal “Civil Rights of Institutionalized Persons Act” (CRIPA), which protects the civil rights of persons in state-run nursing homes, among others. The Civil Rights Division seeks to determine if the state orders requiring admission of COVID-19 patients to nursing homes is responsible for the deaths of nursing home residents.
On March 3, 2020, the Attorney General announced the Justice Department’s National Nursing Home Initiative. This is a comprehensive effort by the department, led by the Elder Justice Initiative and in strong partnership with the U.S. Department of Health and Human Services that uses every available tool to pursue nursing homes that provide substandard care to their residents. As announced on April 10, 2020, the department is also investigating the Soldiers’ Home in Holyoke, Massachusetts, where COVID-19 has taken the lives of at least 76 residents. https://www.justice.gov/opa/pr/federal-investigation-conditions-nursing-home-veterans-massachusetts-announced
The data requests and Soldiers’ Home investigation are not accusations of fault or wrongdoing by the states or any other individual or entity, and the department has not reached any conclusions about these matters.
Department of Justice Announces Rules Furthering Lawfulness and Transparency in the Regulatory ProcessRead the Press Release
The Department of Justice has taken another significant step today to ensure that its regulatory activity is performed lawfully and transparently, announcing a pair of interim final rules imposing procedural requirements on the Department’s issuance and modification of guidance documents. The rules also codify preexisting Department guidance practices and implement the interagency reforms of Executive Order 13891, Promoting the Rule of Law Through Improved Agency Guidance Documents (EO 13891). More than just carrying out the Department’s obligations under EO 13891, these rules implement innovative new internal accountability mechanisms, such as requiring Department entities to comply with the rule’s procedural requirements in order to claim judicial deference to interpretations contained in guidance documents.
The first rule, “Prohibition on the Issuance of Improper Guidance Documents Within the Justice Department,” codifies the general prohibition on the use of guidance documents to create rights or impose obligations on persons outside of the executive branch, originally set forth in the Department’s 2017 “Sessions Memo.” The Department’s issuance of the Sessions Memo was one of the administration’s first actions to curb the use of guidance documents as a backdoor tool to reading new expansive, substantive regulatory obligations into policy documents outside of the established procedural requirements set forth in the Administrative Procedure Act (APA). Similar, and expanded, limitations were subsequently imposed administration-wide in 2019 through EO 13891.
The second rule, “Processes and Procedures for Issuance and Use of Guidance Documents,” codifies Department limitations, first generally set forth in the 2018 “Brand Memo,” on the use of guidance documents in criminal and civil enforcement actions and implements robust Department-wide procedures governing the review, clearance, and issuance of guidance documents. The rule also creates a process for the public to petition the Department to withdraw or modify existing guidance documents. In addition, under the rule, Department components must post every currently effective guidance document on the Department’s public Guidance Portal.
“Some guidance can be helpful to regulated parties, but backdoor regulation by guidance document is improper,” Deputy Attorney General Jeffrey A. Rosen said. “With these new rules, the Department of Justice has formalized its procedures for ensuring that guidance documents will not be used to impose novel legal requirements as a shortcut around the rulemaking process.”
Beth A. Williams, Assistant Attorney General for the Office of Legal Policy, praised the benefits the rules will have for the public: “The new rules accomplish an unprecedented degree of transparency and public involvement in the Department’s guidance document processes. For the first time, the public will have a robust process available to petition the government to withdraw or modify a guidance document that may be outdated or raise other concerns.”
The Department of Justice is committed to regulatory reform that enhances good government. Earlier this month, the Department published a landmark report on the need to modernize agency procedures to increase accountability and transparency through amendment of the APA, enacted in 1946 and not substantially updated since that time. The report incorporates proposals raised by government officials, members of the private sector, and legal academics at DOJ’s December 2019 APA reform summit. The report’s submission to congressional members and committees provided a formal Department recommendation that Congress pursue legislative APA reform, building on Administration efforts such as EO 13891 to improve government responsiveness in the evaluation of regulations. The report is available here.
Cuban fugitive facing drug charges caught after allegedly trying to flee US by boatRead the Press Release
CORPUS CHRISTI, Texas – A Cuban national has made another appearance in federal court following the return of a superseding indictment related to the distribution of cocaine, announced U.S. Attorney Ryan K. Patrick.
Osvaldo Iglesias Ruiz, 34, is charged with one count of possession with intent to distribute more than 10 kilograms of cocaine.
Ruiz was originally charged by criminal complaint in March. He made an initial appearance on those charges, but was granted release upon posting bond. Shortly thereafter, authorities caught him as he was allegedly attempting to flee the United States in a boat off the coast of Florida heading towards Cuba. He appeared in court today and ordered into custody pending further criminal proceedings.
According to the criminal complaint, on March 14, Ruiz approached the Javier Vega Jr. checkpoint in Sarita traveling northbound. He was allegedly driving a tractor-trailer, but without an attached trailer. The complaint alleges he provided authorities inconsistent answers pertaining to the direction he was traveling. A K-9 also alerted to the rear differential of the vehicle, according to the charges.
He was then referred to secondary inspection where authorities allegedly discovered multiple cocaine bundles weighing more than 10 kilograms.
The drugs have an estimated street value of $250,000.
If convicted, Ruiz faces up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection, U.S. Marshals Service and U.S. Coast Guard. 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.
Covington Man Charged with Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that PENH KANG (“KANG”), age 41, of Covington, Louisiana, was charged by a bill of information on August 25, 2020 with Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to the bill of information, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Penh Kang, No.17-12431, by submitting a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions, in that KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, KANG faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Corrupt Judge’s Request for Resentencing DeniedRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 24, 2020, U.S. District Court Judge Christopher C. Conner upheld the 28-year sentence imposed in 2011 of the former President Judge of the Luzerne County Court of Common Pleas, Mark A. Ciavarella, age 70, for accepting millions in bribes and kickbacks from the owner of privately held juvenile detention facility.
According to U.S. Attorney David J. Freed, Ciavarella was convicted after an 11-day jury trial in February 2011 and in August 2011, the late U.S. District Court Judge Edwin M. Kosik sentenced Ciavarella to 28 years’ imprisonment. Yesterday’s decision upheld that sentence.
After his conviction was affirmed on appeal, Ciavarella claimed that his trial attorneys were ineffective because they should have argued to the jury that some of the crimes he was convicted for were barred by the statute of limitations. The case was reassigned to U.S. District Court Judge Christopher C. Conner to decide if Ciavarella’s attorneys were ineffective.
Judge Conner found Ciavarella’s attorneys were ineffective and vacated certain counts of conviction, including the charges of racketeering conspiracy and money laundering conspiracy. Ciavarella then claimed he was entitled to be resentenced on the remaining convictions.
Yesterday’s opinion by Judge Conner held that resentencing was not required and the original 28 year sentence would remain in place.
“This decision reinforces this office’s long standing commitment to bring justice to those victimized by these corrupt state judges,” said U.S. Attorney Freed. “They betrayed their community and deserve the substantial punishments they received.”
Ciavarella and his co-defendant, Michael Conahan, who also served as President Judge of the Court of Common Pleas of Luzerne County, were initially charged in January 2009. The charges were the result of a federal investigation of alleged corruption in the Luzerne County court system. The inquiry began in 2007 and expanded to include county government offices, state legislators, school districts and contractors in Northeastern Pennsylvania. Conahan pleaded guilty to racketeering conspiracy in April 2010 and is serving a 17-year sentence. Conahan was recently released from federal custody to home confinement due to the COVID-19 pandemic.
The judicial scandal, described as the worst in Pennsylvania's history, and the federal prosecutions have had major consequences: Ciavarella and Conahan resigned from the bench in 2009. The Supreme Court of Pennsylvania vacated thousands of juvenile convictions in Luzerne County as a result of Ciavarella's conduct as a Juvenile Court Judge. A State Interbranch Commission on Juvenile Justice recommended changes aimed at safeguarding the constitutional rights of juveniles and improving the oversight and disciplinary process for judges in Pennsylvania. In June 2011, a committee of the American Bar Association reviewed and made recommendations to improve procedures in the state's Judicial Conduct Board. A procedure was established in Luzerne County for compensation of victims of the activities of Ciavarella and Conahan.
Ciavarella is scheduled to be released from federal prison in 2035.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation.
The post-trial litigation was handled by Assistant United States Attorneys Carlo Marchioli, William S. Houser and Michael A. Consiglio.
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Convicted Terrorist on Supervised Release Indicted by Federal Grand Jury on Charges of Selling Pounds of MethamphetamineRead the Press Release
RIVERSIDE, California – A federal grand jury today indicted an Orange County man for allegedly selling pound quantities of methamphetamine while he was on supervised release following a 2009 terrorism conviction.
Ahmed Binyamin Alasiri, also known as Kevin Lamar James, a 44-year-old Garden Grove resident, was charged in an indictment with two counts of distribution of methamphetamine.
Alasiri was arrested in this case on August 21, pursuant to a criminal complaint that accused him of narcotics trafficking. At a hearing on August 24, he was ordered detained pending the outcome of the case.
According to court documents, on July 24, Alasiri sold approximately one pound of methamphetamine – which later was determined to be 96 percent pure – to a buyer for $3,700. On August 6, Alasiri allegedly again sold one pound of methamphetamine to the same buyer for $3,700. Laboratory analysis of the second purchase showed that the methamphetamine was 98 percent pure.
Alasiri is currently on supervised release after completing a 16-year federal prison sentence for conspiracy to levy war against the United States through terrorism. Alasiri’s co-conspirators committed numerous armed robberies of gas stations to raise money for attacks Alasari had planned on U.S. military operations and Israeli and Jewish facilities in Southern California. Alasiri completed his prison sentence in September 2019.
Alasiri is scheduled to be arraigned on the indictment on September 14.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each count of distribution of methamphetamine carries a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
This case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF) in Orange County, with assistance from the following JTTF agencies and other partners: the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the United States Probation Office, the United States Bureau of Prisons, the California Department of Corrections and Rehabilitation, the Garden Grove Police Department, the Drug Enforcement Administration, the Orange County Sheriff’s Department, the California Highway Patrol, the United States Department of Defense, and the Orange County Intelligence Assessment Center.
This case is being prosecuted by Assistant United States Attorney Dennise D. Willett of the Terrorism and Export Crimes Section.
Centralia Man Sentenced to 14 Years for Trafficking Heroin and Meth, Gun PossessionRead the Press Release
David Herron, 49, of Centralia, Illinois, has been sentenced to 14 years in federal prison for trafficking heroin and methamphetamine and a concurrent 10-year prison term for unlawful gun possession. Herron entered a guilty plea last September to a three-count indictment charging him with participating in a drug trafficking conspiracy, possession with intent to distribute methamphetamine, and unlawful possession of a firearm by a convicted felon. The charged conspiracy took place from March 12, 2018, to April 24, 2019, in Centralia.
In handing down the sentence, Chief United States District Judge Nancy J. Rosenstengel observed that a majority of the court’s criminal docket now comes from Centralia.
The case arose after an FBI task force investigated Herron’s narcotics trafficking activities for several months in early 2019. During that time, Herron was on bond for two separate drug- related cases in Marion County. Herron sold methamphetamine and heroin from a Centralia residence on North
Elm and from a mobile home on North Sycamore. On April 24, 2019, task force members arrested Herron as he left his home on Hardin Street and found him in possession of methamphetamine and heroin packaged for sale. A search of his home revealed over 200 grams of 98% pure methamphetamine and a loaded gun. Herron has a prior felony conviction that prohibits him from knowingly possessing a firearm or ammunition.Herron has been in custody since his arrest. As part of his sentence, he was ordered to serve a five-year term of supervised release and pay a $600 fine. Several of Herron’s alleged co- conspirators were charged in a separate case. Danny Lee DeShane, 45, was sentenced in June to 54 months imprisonment. Earlier this month, Curtis Phelps, 38, was sentenced to 10 years imprisonment for his role in the conspiracy. A third man, Cloyd “Rick” Culver, 69, has pleaded not guilty but is scheduled for a change of plea hearing tomorrow.
The FBI’s task force continues its investigation into drug trafficking and related activities in the Marion-Clinton-Washington County areas. Law enforcement agencies participating in the task force include the Centralia Police Department, the Carlyle Police Department, and the Marion, Clinton, and Washington County Sheriffs’ Offices.
Career Criminal from Philadelphia Sentenced to over Six Years in Prison for Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Saunders, 34, of Philadelphia, PA, was sentenced to over six years in prison (80 months), and three years of supervised release by United States District Court Judge John M. Younge for illegally possessing a firearm as a felon. Saunders was also on Pennsylvania state parole at the time of the offense.
The defendant pleaded guilty in March 2020 to one count of possession of a firearm by a convicted felon. During his plea hearing, Saunders admitted that he carried a firearm with an obliterated serial number and fled from Philadelphia police officers while carrying the gun on July 18, 2019. During that foot chase in the Logan neighborhood, Saunders grabbed the firearm from his waistband and pointed it at the pursuing officers before falling to the ground, after which police recovered the weapon.
According to court documents, Saunders was previously convicted of numerous felony offenses in the Philadelphia County Court of Common Pleas, including violations of the Uniform Firearms Act in 2005 and 2011 and possession with intent to distribute a controlled substance in 2010. Further, in 2004, the defendant was arrested for carrying a firearm without a license and endangering the welfare of a child. In that case, Saunders not only illegally possessed a gun, but also shot his two-year-old daughter with it. After pleading guilty, the defendant was sentenced to two to five years in Pennsylvania state prison.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is running rampant,” said U.S. Attorney McSwain. “Saunders has been living a life of crime for the better part of twenty years now, and has repeatedly demonstrated his disrespect for the law. The answer to Philadelphia’s violent crime crisis is to get criminals like Sanders off of the streets, which is exactly what the U.S. Attorney’s Office is focused on.”
“As a convicted felon in possession of a firearm, Kenneth Saunders presented a real danger to the community and to law enforcement officers alike,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “Despite being prohibited from possessing a firearm, he was armed when encountered by law enforcement. The federal prosecution of this crime demonstrates ATF’s dedication to working alongside our local, state and federal partners, in this case the Philadelphia Police Department and the U.S. Attorney’s Office, to ensure violent individuals like Saunders are deprived of the ability to terrorize our community.”
“It is going to take an aligned and sustained collaborative effort with all of our law enforcement partners in order to combat the crisis of violence in our neighborhoods,” said Philadelphia Police Commissioner Danielle Outlaw. “Individuals like Mr. Saunders need to know that illegally carrying weapons on our streets will have serious and consistent consequences. I would like to thank our federal partners for helping us work towards our common goal of making our communities safer places to live and work.”
The case was investigated by the Bureau of Alcohol, Tobacco, Fire Arms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Capital Region Gang Member Sentenced to over 16 Years in Prison for Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Darrell Chapman, also known as “Bishop” and “Sly Foxx,” age 40, was sentenced today to 198 months in prison for narcotics and gun offenses.
The announcement was made by United States Attorney Grant C. Jaquith, New York State Police Superintendent Keith Corlett, and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chapman is a self-described founder of the East Bishop Family, a set of the Bloods operating in the Capital Region. In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area. In addition to Albany, Chapman’s drug-distribution operations reached as far as Rochester, New York, and to Pennsylvania.
In the early-morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin. Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer. In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales. Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition. Chapman admitted he used the guns to protect his drugs and drug proceeds.
In 1997 and 1998, Chapman was convicted in state court of robbery, attempted robbery, and criminal sale of a controlled substance, and was on parole at the time of his arrest on October 18, 2017.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 5-year term of supervised release, to begin after Chapman is released from prison. The terms of Chapman’s supervise release prohibit him from associating with any member, associate, or prospect of the Bloods, or any other criminal gang, club, or organization.
This case was investigated by the New York State Police and FBI, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Camden County Man Admits Role in Government Benefits Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden, New Jersey, man today admitted his role in a scheme that netted tens of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.
Jose Garcia, 53, pleaded guilty by videoconference before U.S. District Court Judge Renée Marie Bumb to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP).
Garcia and his co-defendants, Luciano Estevez, 51, also of Camden; Octavio Rodriguez, 51, of Pennsauken, New Jersey; and Juan Melo, 57, of Woodlynne, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP. Estevez, Rodriguez, and Melo all previously pleaded guilty to participating in the conspiracy and defrauding SNAP.
SNAP, formerly known as the food stamp program, is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
According to documents filed in this case and statements made in court:
Garcia, Estevez, Rodriguez, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were often then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of tens of thousands of dollars in government funds.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania. to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Through this terminal, the scheme netted an additional approximately $110,000 in SNAP funds.
The conspiracy count to which Garcia pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The SNAP fraud offense to which Garcia pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Garcia’s sentencing is scheduled for Jan. 4, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture-Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the FBI Philadelphia Field Office, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the Camden County Police Department, under the direction of Chief of Police Joseph D. Wysocki, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.
California Man to Federal Prison for Violating Federal Firearms Law While in IowaRead the Press Release
A man who was prohibited from possessing a gun was sentenced on August 25, 2020, to 7 years in federal prison.
Meher Aboolian, 32, from Glendale, California, pled guilty on March 17, 2020, to possession of a firearm by a prohibited person. Aboolian was previously convicted of crimes which prohibited him from possessing guns. These crimes included Burglary, False Checks, and Felony Possession of a Controlled Substance for Sale.
At the plea and sentencing hearings, evidence showed that on November 3, 2019, the vehicle Aboolian was driving was stopped by law enforcement. During a search of Aboolian, officers found drug paraphernalia and pills, which Aboolian admitted he did not have a prescription for, concealed under his hat. A search of the vehicle revealed additional drug paraphernalia, and items to mask the smell of illegal drugs. Officers also located a stolen gun, namely a Smith & Wesson Model 669, 9mm pistol, with no visible serial number, and a loaded magazine.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Aboolian was sentenced to 84 months’ imprisonment. He must also serve a term of 3 years of supervised release following imprisonment. There is no parole in the federal system. Aboolian is being held in the US Marshals custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4003.
Follow us on Twitter @USAO_NDIA.
Buffalo Woman Pleads Guilty to Assault for Spitting on Postal Employee and Claiming to Have the CoronavirusRead 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 Melissa C. Daniels-Johnson, 39, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to assaulting a federal officer. The charges carry a maximum penalty of one year in prison, and a $100,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on March 19, 2020, at approximately 6:50 p.m., the defendant drove her vehicle into the parking lot of the Cheektowaga Branch Post Office by traveling the wrong way through an exit driveway. A USPS Letter Carrier (Letter Carrier) collecting mail from the mailboxes in the parking lot advised Daniels-Johnson that she had entered the parking lot through the exit driveway. In response, the defendant shouted profanities at the Letter Carrier and threatened to cough on him to give him the Coronavirus. The manager of the Cheektowaga Branch Post Office came out to the parking lot and attempted to calm Daniels-Johnson down. The defendant subsequently drove her vehicle out of the parking lot, passing by the Letter Carrier, who had resumed collecting mail from the mailboxes. As she passed the Letter Carrier, Daniels-Johnson stopped her vehicle and told the Letter Carrier her husband was going to beat him up, and then spit on the Letter Carrier, hitting the Letter Carrier in the leg.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local, and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. The Department is also committed to preventing hoarding and price gouging for critical supplies during this crisis. To address this, Attorney General Barr created the COVID-19 Hoarding and Price Gouging Task Force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
Sentencing is scheduled for November 30, 2020, at 1:00 p.m. before Judge Roemer.
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Bosnian National Charged with Robbery and Firearms Offenses in Connection with Attack on New York City Police OfficersRead the Press Release
An indictment was returned today in federal court in Brooklyn charging Dzenan Camovic with robbery and firearms offenses for his June 3, 2020 knife and firearm attack on multiple New York City Police Department (NYPD) police officers in Brooklyn. As set forth in the court filings, the defendant, a Bosnian national in the United States illegally, was motivated to attack the officers because of his interest in and support for violent Islamist extremism. The defendant is currently in state custody and will be arraigned at a later date.
The indictment charges Camovic with Hobbs Act robbery, using and discharging a firearm during that robbery, theft of a firearm that moved in interstate commerce and unlawful possession of a firearm as an illegal alien.
William P. Barr, Attorney General; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“Dzenan Camovic, an illegal alien and Bosnian national, is alleged to have used the cover of chaos during recent civil unrest in New York City to launch a premeditated and cowardly attack from behind against two New York City Police officers, brutally slashing one with a knife, stealing his weapon and opening fire, and injuring several responding officers,” stated Attorney General Barr. “We know that Camovic repeatedly yelled, ‘Allahu Akbar’ during his attack. We know that he possessed a significant volume of materials that demonstrates his interest in and support for violent Islamist extremism, including materials related to the Islamic State of Iraq and al-Sham (ISIS). But the defendant’s access to the dark web and his use of encrypted communication platforms has created evidentiary roadblocks to fully learning his plans and who he discussed them with. This is the second violent Islamist extremist attack on our land in the last nine months where the attacker used encrypted technology that can help cover his tracks and mask his communications. If not for the heroism and bravery of the responding NYPD officers who returned fire and took the assailant down early in the attack, untold additional officers and innocents could have been killed or injured.
“As we have alleged in the indictment and set forth in related filings, just before midnight on June 3, 2020, the defendant launched a surprise attack on police officers standing post on the streets of Brooklyn, nearly ending their lives. After stabbing a police officer in the neck, the defendant ripped a 9mm service pistol away from an officer and shot at the officers while perversely invoking religion,” stated Acting U.S. Attorney DuCharme. “Despite engaging in technical tradecraft that covered some of his tracks, this defendant cannot escape the reach of the investigators and prosecutors who are committed to making sure that he faces justice for his extremely serious crimes.” Mr. DuCharme expressed his grateful appreciation to the New York Joint Terrorism Task Force as well as the Kings County District Attorney’s Office for their outstanding work.
“Two New York City police officers, who swore an oath to protect and serve, were heinously ambushed in the line of duty at the hands of Dzenan Camovic as alleged in today’s indictment,” stated FBI Director Wray. “As fellow Americans were exercising their rights to demonstrate, these brave law enforcement officers were brutally attacked to further a violent agenda associated with ISIS and al-Qaeda in the Arabian Peninsula. This case demonstrates that the FBI remains steadfast in our fight to protect the U.S. from extremists who wish to harm our citizens and fellow law enforcement officers.”
“Several days into protests that erupted in New York City and throughout the country, we allege Dzenan Camovic, motivated by ISIS-inspired ideology, ambushed three NYPD officers on the streets of Brooklyn and caused serious injury to those officers. As he commenced his attack, the NYPD officers were doing what the citizens of our city ask them to do every day - to stand watch and protect their fellow New Yorkers. Mr. Camovic's alleged behavior has no place in our community. His assault on the officers was an attack against the entire New York City community. Our society has never tolerated this type of behavior, and today's federal charges will ensure Mr. Camovic isn't a threat to society again,” stated FBI Assistant Director-in-Charge Sweeney.
“Dzenan Camovic, as outlined in the indictment, was a consumer of terrorist propaganda and calls for violence by groups like al-Qaida and ISIS. His premeditated ambush of two New York City police officers can never be accepted. As the investigation continues into his motives, these significant federal charges reinforce the notion that an attack against police officers is an attack against society,” stated NYPD Commissioner Shea.
On the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, the defendant allegedly carried out his attack on NYPD police officers who were assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:30 p.m., Camovic walked past two uniformed police officers on foot patrol and appeared to crouch for several minutes watching them. Security footage shows that Camovic then moved around the block in an apparent effort to approach the two police officers from behind.
At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (“Officer 1”) in the neck with a knife. After stabbing the first officer (“Officer 1”), Camovic chased the second officer (“Officer 2”), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who had responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers were wounded during Camovic’s attack and robbery, including Officer 2 who was shot in the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks. The government’s investigation has revealed that, prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Camovic faces a maximum sentence of life in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
DZENAN CAMOVIC
Age: 20
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Bosnian National Charged with Robbery and Firearms Offenses in Connection with Attack on New York City Police OfficersRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Dzenan Camovic with robbery and firearms offenses for his June 3, 2020, knife and firearm attack on multiple New York City Police Department (NYPD) police officers in Brooklyn. As set forth in the court filings, the defendant, a Bosnian national in the United States illegally, was motivated to attack the officers because of his interest in and support for violent Islamist extremism. The defendant is currently in state custody and is scheduled to be arraigned at a later date.
The indictment charges Camovic with Hobbs Act robbery, using and discharging a firearm during that robbery, theft of a firearm that moved in interstate commerce and unlawful possession of a firearm as an illegal alien.
William P. Barr, Attorney General; Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“Dzenan Camovic, an illegal alien and Bosnian national, is alleged to have used the cover of chaos during recent civil unrest in New York City to launch a premeditated and cowardly ambush against two New York City Police officers, brutally slashing one with a knife, stealing his weapon and opening fire, and injuring several responding officers,” said William P. Barr, U.S. Attorney General. “We know that Camovic repeatedly yelled, ‘Allahu Akbar’ during his attack. We know that he possessed a significant volume of materials that demonstrates his interest in and support for violent Islamist extremism, including materials related to the Islamic State of Iraq and al-Sham (ISIS). But the defendant’s access to the dark web and his use of encrypted communication platforms have created evidentiary roadblocks to fully learning his plans and potential co-conspirators. This is the second violent Islamist extremist attack on our land in the last nine months where the attacker used encrypted technology that can help cover his tracks and mask his communications. If not for the heroism and bravery of the responding NYPD officers who returned fire and took the assailant down early in the attack, untold additional officers and innocents could have been killed or injured.”
“As we have alleged in the indictment and set forth in related filings, just before midnight on June 3, 2020, the defendant launched a surprise attack on police officers standing post on the streets of Brooklyn, nearly ending their lives. After stabbing a police officer in the neck, the defendant ripped a 9mm service pistol away from an officer and shot at the officers while perversely invoking religion,” stated Acting U.S. Attorney DuCharme. “Despite engaging in technical tradecraft that covered some of his tracks, this defendant cannot escape the reach of the investigators and prosecutors who are committed to making sure that he faces justice for his extremely serious crimes.” Mr. DuCharme expressed his grateful appreciation to the New York Joint Terrorism Task Force as well as the Kings County District Attorney’s Office for their outstanding work.
“Two New York City police officers, who swore an oath to protect and serve, were heinously ambushed in the line of duty at the hands of Dzenan Camovic as alleged in today’s indictment,” stated FBI Director Wray. “As fellow Americans were exercising their rights to demonstrate, these brave law enforcement officers were brutally attacked to further a violent agenda associated with ISIS and al-Qaeda in the Arabian Peninsula. This case demonstrates that the FBI remains steadfast in our fight to protect the U.S. from extremists who wish to harm our citizens and fellow law enforcement officers.”
“Several days into protests that erupted in New York City and throughout the country, we allege Dzenan Camovic, motivated by ISIS-inspired ideology, ambushed three NYPD officers on the streets of Brooklyn and caused serious injury to those officers. As he commenced his attack, the NYPD officers were doing what the citizens of our city ask them to do every day - to stand watch and protect their fellow New Yorkers. Mr. Camovic's alleged behavior has no place in our community. His assault on the officers was an attack against the entire New York City community. Our society has never tolerated this type of behavior, and today's federal charges will ensure Mr. Camovic isn't a threat to society again,” stated FBI Assistant Director-in-Charge Sweeney.
“Dzenan Camovic, as outlined in the indictment, was a consumer of terrorist propaganda and calls for violence by groups like al-Qaida and ISIS. His premeditated ambush of two New York City police officers can never be accepted. As the investigation continues into his motives, these significant federal charges reinforce the notion that an attack against police officers is an attack against society,” stated NYPD Commissioner Shea.
On the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, the defendant allegedly carried out his attack on NYPD police officers who were assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:30 p.m., Camovic walked past two uniformed police officers on foot patrol and appeared to crouch for several minutes watching them. Security footage shows that Camovic then moved around the block in an apparent effort to approach the two police officers from behind.
At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (Officer 1) in the neck with a knife. After stabbing the first officer (Officer 1), Camovic chased the second officer (Officer 2), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who had responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers were wounded during Camovic’s attack and robbery, including Officer 2 who was shot in the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks. The government’s investigation has revealed that, prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Camovic faces a maximum sentence of life in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
Birmingham Man Indicted on Conspiracy and Fraud Charges for Making Unapproved Drug Products in His Kitchen and Warehouse and Marketing and Selling Them as a Cancer TreatmentRead the Press Release
BIRMINGHAM, Ala. – A twenty-eight-count indictment filed today in U.S. District Court charges a Birmingham man with conspiracy and other fraud charges related to his purchase, manufacture, and distribution of drug products that had never been reviewed or approved by the FDA, but that he claimed were effective cancer treatments, announced U.S. Attorney Prim F. Escalona and FDA Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
PATRICK CHARLES BISHOP, 54, is charged with conspiracy, fraudulently introducing adulterated drugs into interstate commerce, and fraudulently introducing misbranded drugs into interstate commerce. Bishop is also charged with fraudulently obtaining pre-retail medical products, creating false documentation for those products, and knowingly possessing and trafficking in pre-retail medical products that he obtained by fraud.
The charges in the indictment center on Bishop’s purchase, manufacture, labeling, marketing, sale, and distribution of drug products purportedly containing a peptide called PNC-27. PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer. Nor has PNC-27 undergone clinical trials in the United States on human beings to determine its efficacy, safety, or potential risks or side effects.
“The public must have confidence that the products they are receiving are safe and properly labeled,” Escalona said. “The U.S. Attorney’s Office will continue to investigate and prosecute those who jeopardize the health and safety of the public.”
“The FDA’s requirements are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved, adulterated, and misbranded drugs to vulnerable Americans will not be tolerated,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office. “Today’s announcement serves as a reminder of FDA’s continued focus on protecting the public health of the nation.”
The indictment alleges that Bishop obtained the peptide from GL Biochem, a manufacturer based in China. He paid the manufacturer more than $600,000 in 2015 and 2016 for peptide product he received. According to the indictment, Bishop repeatedly assured that manufacturer that he would use the peptide solely for laboratory research purposes. In fact, he and others used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham. The facilities were not sterile, and did not comply with current good manufacturing practices. Customers who purchased suppositories from Bishop reported finding pieces of hair in their suppository packs.
According to the indictment, Bishop and others marketed the PNC-27 drug products to alternative-medicine doctors, cancer patients, and others as an effective treatment for cancer. Bishop sold PNC-27 drug products to Hope4Cancer, a holistic cancer treatment center with clinics in Mexico. Bishop would ship the products to a location in California, and Hope4Cancer would use the products to treat patients at its Mexico clinics. Bishop also sold PNC-27 drug products to patients and others in the United States, and shipped those products directly to locations in the United States and elsewhere.
The indictment alleges that Bishop and others took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from GL Biochem, and he used the business name Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort, and made false representations to FDA personnel and others to the same effect.
The maximum punishment for conspiracy is five years in prison and a $250,000 fine. The maximum punishment for the adulteration and misbranding charges is three years’ imprisonment for each count and a $250,000 fine. The maximum punishment for each count of pre-retail medical product fraud is fifteen years’ imprisonment and a $250,000 fine.
The FDA investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Benton Man Sentenced to 12+ Years in Federal Prison for Possession of MethamphetamineRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Willie Player, 40, of Benton, Louisiana, was sentenced today on a charge of Conspiracy to Possess with Intent to Distribute Methamphetamine. United States District Judge Elizabeth E. Foote sentenced Player to spend 151 months (12 years, 7 months) in prison, followed by 3 years of supervised release.
While conducting a narcotics investigation in 2018, law enforcement agents set up surveillance of Willie Player and others who were known to be distributing large amounts of methamphetamine in the Shreveport/Bossier City area. Phone conversations between Player and other co-conspirators were intercepted and they were found to be arranging transactions to sell methamphetamine in various quantities. Between April and June 2018, law enforcement agents observed Player travelling from the Western District of Louisiana to Waskom, Texas to purchase various amounts of methamphetamine.
On June 13, 2018, after purchasing methamphetamine in Waskom, Texas, Player was travelling back to the Shreveport area. Caddo Parish Sheriff’s deputies attempted to stop the vehicle Player was driving near West 70th and Pines Road but rather than stopping, Player continued travelling at a high rate of speed. Player ran a red light and his vehicle was grazed on the rear passenger side by a truck travelling through the intersection. Player then lost control of the vehicle and struck utility poles before crashing into a fence surrounding an apartment complex. Law enforcement officers found methamphetamine in the vehicle with Player and he was arrested. Player pleaded guilty to the charge on November 14, 2019.
The DEA and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
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Bay Area Man Sentenced to Six Years in Prison for Attempted Receipt of Child PornographyRead the Press Release
OAKLAND – John Vicencio Vinoya was sentenced today to six years in prison, to be followed by twenty years of supervised release, for attempted receipt of child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr.
Vinoya, 48, of Richmond, California, pled guilty to the charge on September 30, 2019. According to the plea agreement, Vinoya admitted that, in July 2018, when he was 46 years old, he texted a girl that he knew to be fourteen years old. When he learned that the minor was about to take a shower, he requested that she send him a “half body pic.” Vinoya admitted that he hoped and intended that the minor would send him a naked photograph that would have constituted child pornography.
Vinoya further admitted that, two weeks later, he sent sexually explicit text messages to the minor’s cell phone. He attempted to persuade and entice the minor to have sexual intercourse with him. On August 2, 2018, Vinoya drove to the minor’s home at a time when he believed that her parents were out of town. He brought condoms and lubricating oil with him to the meeting. He was stopped by law enforcement when he reached the minor’s home.
Vinoya was indicted by a federal grand jury on December 13, 2018. He was initially charged with online enticement of a minor, in violation of 18 U.S.C. § 2422(b). He ultimately pled guilty to a violation of 18 U.S.C §§ 2252(a)(2) and (b), attempted receipt of child pornography. Vinoya has been in custody since his arrest by officers of the El Cerrito Police Department on August 2, 2018.
Katherine Lloyd-Lovett is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of the collaborative investigative efforts of the El Cerrito Police Department, the Silicon Valley Internet Crimes Against Children Task Force, and Homeland Security Investigations HSI.
Baltimore Man Indicted on Federal Charges Related to Possessing A Handgun with an Extended Magazine in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland returned an indictment yesterday charging Jimmie Martin, aka Doodles, of Baltimore City, Maryland, with possession of a firearm by a prohibited person; possession with the intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; State’s Attorney Marilyn Mosby of the State’s Attorney’s Office for Baltimore City; and Maryland Attorney General Brian Frosh.
According to the three-count indictment, on March 6, 2020, Martin, who was previously convicted of a felony offense, knowingly possessed a handgun and an extended magazine with the capacity to hold 30 cartridges of ammunition, and 29 cartridges of ammunition. The firearm and ammunition were in and affecting interstate and foreign commerce. Martin also possessed cocaine with the intention to distribute.
If convicted, Martin faces a maximum sentence of life in federal prison for possessing a firearm in furtherance of a drug trafficking crime. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; 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.
United States Attorney Robert K. Hur commended the ATF, BPD, the Office of the State’s Attorney for Baltimore City, and the Maryland Attorney General’s Office for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorney Daniel Loveland, Jr. and Special Assistant U.S. Attorney Richard Gallena, who are prosecuting the case.
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Athens Convicted Felon Sentenced to Prison for Illegally Possessing A FirearmRead the Press Release
MACON, Ga. – A convicted felon living in Athens, Georgia was sentenced to serve more than nine years in prison for illegally possessing a firearm, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Anthony Holloway, 28, of Athens was sentenced by U.S. District Judge C. Ashley Royal on Monday, August 24 to serve 110 months in prison after he pleaded guilty in June to one count possession of a firearm by a convicted felon. There is no parole in the federal system.
Police executed a search warrant at an Athens apartment in August 2019 for distribution of heroin and other drug trafficking. Holloway was inside the residence and had a loaded semi-automatic pistol. Police also found cocaine and other drug paraphernalia, as well as cash. Holloway, a convicted felon, admitted that the firearm belonged to him and that he knew it was illegal for him to possess the Ruger, model LCP, .380 semi-automatic pistol.
“It is illegal for convicted felons to possess firearms and the consequence is prison. Let me be very clear to those who are breaking this law: Our office will prosecute felons caught in possession of guns,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “Removing firearms from the hands of convicted felons is part of a common sense strategy to reduce violent crime and make our communities safer. I want to thank the Athens-Clarke County Police Department and the Northeast Georgia Regional Drug Task Force for their work in this case.”
This gun cases are part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The gun cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
This case was investigated by the Athens-Clarke County Police Department and the Northeast Georgia Regional Drug Task Force. Assistant U.S. Attorney Kimberly Easterling prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Allen Woman Charged in MurderRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, woman was charged in federal district court with First Degree Murder.
Jonnie Fineran, age 18, was charged on August 4, 2020. Fineran appeared before U.S. Magistrate Judge Daneta Wollmann on August 12, 2020, and pled not guilty to the charge.
The maximum penalty upon conviction is mandatory life in federal prison and a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Fineran killing a man by stabbing him on July 24, 2020, at Manderson. The charge is merely an accusation and Fineran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Fineran was detained pending trial. A trial date has not been set.
Akron Man Sentenced to Prison for Transporting Methamphetamine into West VirginiaRead the Press Release
CHARLESTON, W.Va. – An Akron man was sentenced to prison today for a federal drug offense, announced United States Attorney Mike Stuart. Sharief Rayshaun El-Amin, 25, was sentenced to 36 months in prison on a conviction for possession with intent to distribute methamphetamine. Following his release from prison, El-Amin will serve five years of supervised release.
“Five pounds of meth and heroin, not to mention a gun. Too many poison peddlers have destroyed the lives of too many good West Virginians,” said United States Attorney Mike Stuart. “We are working closely with and building unprecedented cooperation among all federal, state and local law enforcement teams to aggressively protect our citizens from the peddlers of these deadly drugs. Our citizens are our focus. We have their backs. The results are unprecedented in the history of West Virginia.”
El-Amin previously admitted that on May 27, 2019, he was driving a vehicle when it was pulled over along Interstate 77 in Jackson County. During the traffic stop, officers smelled the odor of marijuana and El-Amin gave conflicting stories as to where he was heading. A police K-9 was deployed on the vehicle and provided a positive indication for the presence of controlled substances. Officers located more than five pounds of methamphetamine, approximately one ounce of heroin and a loaded semi-automatic pistol in the trunk of the vehicle. El-Amin admitted that he was being paid $400 to drive the vehicle to Charleston from Akron. Although El-Amin did not load the vehicle or otherwise know the precise nature of what he was transporting, he admitted that he knew it to be some quantity of controlled substances. The methamphetamine was sent to the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory and found to be 96% pure.
The Jackson County Sheriff’s Office and the Drug Enforcement Administration (DEA) conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00210.
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Acting U.S. Attorney Announces Federal Charges and International Operation to Dismantle Online Piracy GroupRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of indictments charging UMAR AHMAD a/k/a “Artist,” GEORGE BRIDI, and JONATAN CORREA, a/k/a “Raid,” with copyright infringement, and as to BRIDI, wire fraud, for their involvement in the Sparks Group, an international piracy group involved in illegally distributing movies and television shows on the Internet. BRIDI, a citizen of the United Kingdom, was arrested on Sunday in Cyprus on an INTERPOL Red Notice based on the U.S. criminal charges. The United States will seek BRIDI’s extradition to stand trial in the United States. CORREA was arrested yesterday in Olathe, Kansas, where he will be presented in federal court. AHMAD, a citizen of Norway, remains at large. The case is assigned to United States District Judge Richard M. Berman.
In coordination with law enforcement authorities in 18 other countries and supported by Eurojust and Europol, dozens of servers controlled by the Sparks Group were taken offline today around the world, including in North America, Europe, and Asia. The Sparks Group utilized these servers to illegally store and disseminate copyrighted content to members around the globe.
Acting U.S. Attorney Audrey Strauss said: “As alleged, the defendants were members of an international video piracy ring that was sophisticated and widespread. The group allegedly circumvented copyright protections on nearly every movie released by major production studios, as well as television shows, and distributed them by way of a worldwide network of servers. Thanks to the efforts of HSI, the Postal Inspection Service, Eurojust, Europol, and our law enforcement partners in 18 countries on three continents, key members of this group are in custody, and the servers that were the pipeline for wholesale theft of intellectual property are now out of service.”
HSI Special Agent-in-Charge Fitzhugh said: “As alleged, Sparks Group members reproduced and disseminated hundreds of movies and television shows prior to their retail release date, including nearly every movie released by major production studios, causing millions of dollars in losses to the film and television industry. This investigation shows – in high definition – that despite the online platform and international nature of this scheme, we are committed to stop those who use the cyber world for illicit gain. HSI New York’s El Dorado Task Force, in collaboration with the U.S. Postal Inspection Service, leveraged their global network of law enforcement partners to shut down this criminal organization’s cyber piracy network and arrest those allegedly responsible.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Copyright criminals have come a long way from bootlegging movies in local theaters and selling inferior quality videos and DVD’s on the streets of New York City for $5.00. The movies and TV shows allegedly stolen by these defendants not only represent a body of work ripped off from those who spent years developing their craft and working their way to stardom, but deprives the studios and actors of the fruits of their labor.”
Ladislav Hamran, President of Eurojust, said: “This case is an excellent example of what can be achieved if we work together across borders and continents. Thanks to the long-standing partnership between the U.S. and the European authorities, we managed to deal a significant blow to online piracy. My sincere congratulations go out to all countries involved in yesterday’s joint action day.”
According to the allegations contained in the Indictments[[1]] unsealed yesterday in Manhattan federal court:
Between 2011 and the present, UMAR AHMAD a/k/a “Artist,” GEORGE BRIDI, JONATAN CORREA, a/k/a “Raid,” and others known and unknown were members of the Sparks Group, a criminal organization that disseminated on the Internet movies and television shows prior to their retail release date, including nearly every movie released by major production studios, after compromising the content’s copyright protections.
In furtherance of its scheme, the Sparks Group fraudulently obtained copyrighted DVDs and Blu-Ray discs from wholesale distributors in advance of their retail release date by, among other things, making various misrepresentations to the wholesale distributors concerning the reasons that they were obtaining the discs prior to the retail release date.
Sparks Group members then used computers with specialized software to compromise the copyright protections on the discs, a process referred to as “cracking” or “ripping,” and to reproduce and encode the content in a format that could be easily copied and disseminated over the Internet. They thereafter uploaded copies of the copyrighted content onto servers controlled by the Sparks Group, where other members further reproduced and disseminated the content on streaming websites, peer-to-peer networks, torrent networks, and other servers accessible to the public. The Sparks Group identified its reproductions by encoding the filenames of reproduced copyrighted content with distinctive tags, and also uploaded photographs of the discs in their original packaging to demonstrate that the reproduced content originated from authentic DVDs and Blu-Ray discs.
AHMAD and BRIDI arranged for discs to be picked up, mailed, or delivered from distributors located in Manhattan, Brooklyn, and New Jersey to other members of the Sparks Group, including CORREA, prior to their official release date. AHMAD, BRIDI, and CORREA then reproduced, and aided and abetted the reproduction of, these discs by using computer software that circumvented copyright protections on the discs and reproducing the copyrighted content for further distribution on the Internet.
The Sparks Group has caused tens of millions of dollars in losses to film production studios.
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AHMAD, 39, BRIDI, 50, and CORREA, 36, are each charged with copyright infringement conspiracy, which carries a maximum penalty of five years in prison. BRIDI is also charged with wire fraud conspiracy, which carries a maximum penalty of 20 years in prison, and conspiracy to transport stolen property interstate, which carries a maximum penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of HSI and USPIS. She also thanked Europol and Eurojust as well as law enforcement authorities in the following countries for their assistance in the investigation: Canada, Cyprus, Czech Republic, Denmark, France, Germany, Italy, Republic of Korea, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, and the United Kingdom.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Mollie Bracewell, and Christy Slavik are in charge of the prosecution. The U.S. Department Justice’s Office of International Affairs (OIA) of the Department’s Criminal Division provided significant and ongoing assistance with facilitating the execution of dozens of mutual legal assistance requests in 18 different countries necessary for taking down servers and gathering evidence. OIA also provided critical support in working with Eurojust and Europol in planning the coordinated operation yesterday.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the description of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.
Acting U.S. Attorney Announces Extradition of Ghanaian National for Multimillion-Dollar Fraud Scheme Involving Business Email Compromises and Romance Scams Targeting ElderlyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that DEBORAH MENSAH, a Ghanaian citizen, was extradited from the Republic of Ghana (“Ghana”) to the United States on August 21, 2020. MENSAH was arrested on January 16, 2020, in Accra, Ghana for charges in connection with a fraud conspiracy based in Ghana involving the theft of over $10 million through business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018. MENSAH is the eighth defendant charged in the case. MENSAH was presented this morning in Manhattan federal court before U.S. Magistrate Judge Debra Freeman. MENSAH’s case is assigned to U.S. District Judge Denise L. Cote.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Deborah Mensah is alleged to have been a participant in a conspiracy that resulted in the theft of millions of dollars from businesses and vulnerable individuals across the United States, and the laundering of that money through a network of bank accounts in the Bronx to co-conspirators in Ghana. Now she is in the United States and facing charges under U.S. law.”
FBI Assistant Director William F. Sweeney Jr. said: “Ms. Mensah may have believed hiding in Ghana protected her from facing justice for her alleged role in this scheme. She now knows the FBI’s reach is global through our formidable network of law enforcement partners. Others should take heed – we won’t go away simply because it may take time to go get you. If you break our laws, you will pay the price.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As alleged in the criminal complaint, Ms. Mensah’s desire for money drove her to prey upon the vulnerable in our society. Thanks to the financial expertise of IRS-CI special agents working side-by-side with our law enforcement partners, the long arm of the law caught up to Ms. Mensah in Ghana, and she will now face the consequences of her alleged actions.”
According to allegations in the Complaint and the Indictment and other filings in the case[1]:
From at least in or about 2014 through in or about 2018, MENSAH was a member of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York.
The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise. First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties. These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic. The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees. By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including MENSAH.
The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses, such as a shipment of gold or receiving a portion of an investment, to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise. At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise. The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.
MENSAH and her co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise in bank accounts that she and other members of the Enterprise controlled in the Bronx, New York. Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts. Once MENSAH received the fraud proceeds in bank accounts under her control, she withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana. MENSAH also used the name and identity of another person to withdraw or otherwise direct the withdrawal of stolen funds.
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MENSAH, 33, a citizen of Ghana, is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019. Adamu and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Traore pled guilty to one count of conspiracy to receive stolen money. Each of the defendants was sentenced by Judge Cote.
Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI. Ms. Strauss also thanked the United States Marshals Service, the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Office of the Attorney-General & Ministry of Justice of Ghana, and Ghana’s Economic and Organised Crime Office, for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ghana.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Mitzi Steiner are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
25 August 2020
Wheeling man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jeremy Crinkey, of Wheeling, West Virginia, has admitted to having child pornography, U.S. Attorney Bill Powell announced.
Crinkey, 43, pled guilty to one count of “Possession of Child Pornography – Previous Conviction.” Crinkey, having previously been convicted of possession of child pornography in the United States District Court for the Northern District of West Virginia in 2012, admitted to having images of child pornography in his possession in March 2020 in Ohio County.
Crinkey faces at least 10 and up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The U.S. Probation Office and the FBI investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
U.S. Magistrate Judge James P. Mazzone presided.
Washington County Man Possessed Sexually Explicit Videos and Images of MinorsRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jon DeTemple, age 32, of Washington, Pennsylvania, pleaded guilty to one count before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that on October 23, 2019, DeTemple possessed videos and images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Haines scheduled sentencing for December 16, 2020 at 10:00AM. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) conducted the investigation that led to the prosecution of DeTemple.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Union City Man Sentenced to 20 Years in Federal Prison for Meth Distribution and Firearm PossessionRead the Press Release
Jackson, TN – Daniel Nunez, 31, of Union City, Tennessee, has been sentenced to 248 months in federal prison for conspiracy to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on August 1, 2018, law enforcement began an investigation into a drug trafficking organization (DTO) involving members distributing methamphetamine in the Northwest Tennessee region. Law enforcement agents executed a search warrant at a member’s residence which resulted in the seizure of a small quantity of methamphetamine. This led to the arrest of a total of six members of the DTO in August 2018.
Law enforcement arrested Nunez after several recorded phone calls from cooperating sources to purchase a kilogram of methamphetamine. When Nunez arrived at the location in Dyersburg, Tennessee, a camera system inside the residence captured the actions of Nunez. Nunez was seen in possession of a backpack and walking up the driveway of the residence carrying a handgun, which was visible in his waistband. The firearm was a fully loaded Sig Sauer .22 caliber pistol. Investigators recovered approximately 1 kilogram of methamphetamine from the cooperator’s mailbox. After taking Nunez into custody, he waived his Miranda rights and admitted to distributing approximately 20 kilograms of actual methamphetamine (ice).
On June 17, 2019, a federal grand jury sitting in the Western District of Tennessee, Eastern Division returned a four-count superseding indictment against Nunez and other members of the DTO: Ryan Decker, John Paul Henry, Kwantrez Pitts, Nelson Urias and Jimmy Goodman. Count 1 charged Nunez with conspiracy to possess with the intent to distribute and distribution of more than 50 grams of actual methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846. Count 4 charged Nunez with carrying a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c). On January 21, 2020, Nunez pled guilty to counts 1 and 4 of the four-count superseding indictment.
On August 24, 2020, U.S. District Court Chief Judge Thomas Anderson found that Nunez was responsible for the distribution of a total of 15.2 kilograms of actual methamphetamine in furtherance of the conspiracy, and sentenced Nunez to 248 months imprisonment in federal prison followed by 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine continues to destroy individuals, families, and communities in West Tennessee. This defendant’s selfish and reckless criminal behavior includes distribution of large quantities of meth, possession of a firearm, and participation in a drug trafficking organization. This is exactly the type of armed drug dealer that deserves a 20-year sentence, and we are happy to hold him accountable. Nunez has sowed addiction and pain into the rural Northwest Tennessee community, and now he will reap the consequence of a long prison sentence."
The Weakley County Sheriff’s Department, the 27th Judicial District Drug Task Force, the Union City Police Department, the Tennessee Bureau of Investigation, Dyer County Sheriff’s Department, and the Federal Bureau of Investigation (FBI) investigated this case.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Two Charged in $1.8 million Unemployment Insurance ScamRead the Press Release
An employee of the State of Michigan’s Unemployment Insurance Agency and a Detroit Woman were charged in a criminal complaint for their alleged role in a $1.8 million unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service and Jeffrey Frost, Special Fraud Advisor, Unemployment Insurance Agency, Michigan Dept. of Labor and Economic Opportunity.
Charged are Jermaine Rose, 41, and Serenity Poynter 36.
According to the complaint, Jermaine Rose was a Lead Claims Examiner for the State of Michigan Unemployment Insurance Agency. His duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.
Beginning in May, 2020, it is alleged that Rose used his insider access to release payment on hundreds of fraudulent claims. Specifically, Rose is alleged to have used his network credentials to override “fraud stops” on unemployment insurance claims that the State computer system had identified as potentially fraudulent. Rose’s actions resulted in the fraudulent disbursement of over $1.1 million of federal and state funds intended for unemployment assistance during the pandemic. Rose attempted to override another $761,000 in fraudulent unemployment claims, but the State was able to prevent payment on those additional claims.
Rose is alleged to have worked with outside co-conspirators as part of his fraud scheme. One of those alleged co-conspirators is Detroit resident Serenity Poynter. Poynter, an associate of Rose’s, is alleged to have filed at least 25 fraudulent claims seeking over $350,000 in unearned unemployment insurance benefits. Poynter allegedly used variations of her own name and bogus social security numbers to support these fraudulent claims. The State’s automated system identified many of those claims as potentially fraudulent, but Rose is alleged to have overridden many of those fraud-stops, leading to approval of numerous fake unemployment insurance claims.
“At a time when thousands of people in Michigan are out of work because of the pandemic, the defendants are charged with stealing unemployment benefits that should have gone to Michiganders trying to feed their families. Anyone who steals unemployment funds steals from the people of Michigan,” stated United States Attorney Matthew Schneider.
“An important mission of the Office of Inspector General is to investigate allegations relating to unemployment insurance fraud. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”“The defendants in this case took advantage of the good will and generosity of the American people. Out of greed and blatant disregard for those suffering during this pandemic, the perpetrators manipulated the Michigan Unemployment Insurance Agency system for personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring these criminals to justice,” said Douglas J. Zloto, Special Agent in Charge, U.S. Secret Service, Detroit Field Office.
“It’s disheartening that a public servant would abuse the trust of Michiganders because of their own greed, especially during a time when workers need this financial assistance the most. We thank the US Attorney’s office and our other state and federal law enforcement partners for their efforts to protect workers and the integrity of the unemployment system,” stated Jeffrey Frost, Special Fraud Advisor, Unemployment Insurance Agency, Michigan Dept. of Labor and Economic Opportunity.
This is the third unemployment insurance fraud scheme charged by the United States Attorney’s Office in just over a month. On July 17, 2020, State of Michigan contract employee Bandi Hawkins was charged with participating in scheme to defraud the State of Michigan out of approximately $2 million in unemployment insurance funds. Last week, Southfield resident Samuel George Baker was similarly charged with offenses arising out of an unemployment insurance scheme allegedly targeting the States of Michigan and Pennsylvania. Those cases remain pending.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, the United States Secret Service, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Topeka Drug Trafficker Sentenced to More than 7 YearsRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to 94 months in federal prison for dealing drugs, U.S. Attorney Stephen McAllister said.
Anthony Lee Hunter, 51, Topeka, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that when investigators searched his residence in the 700 block of northeast Emmett Street they turned up more than 30 grams of methamphetamine and more than 11 grams of heroin. Hunter told investigators that earlier that week he spent more than $30,000 buying drugs in Kansas City and the drugs they seized were all he had left.
McAllister commended the FBI, the Lawrence Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
Stamford Man Sentenced to 8 Years for Distributing Images of Child Sexual Abuse, Other OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER OLIVEIRA, 32, of Stamford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 96 months of imprisonment, followed by five years of supervised release, for child exploitation offenses.
According to court documents and statements made in court, an FBI special agent working in an undercover capacity communicated with Oliveira on an internet message board and through email. During those conversations, Oliveira discussed his interest in child pornography. On one occasion, Oliveira told the undercover agent that he possessed a “ton of pics & vids of kids ages 4-12,” and then proceeded to send multiple pornographic images of children in that age range to the undercover agent. Oliveira also stated that he would provide the undercover agent with his entire “collection” of child-sex-abuse images in exchange for in-person access to a child.
Oliveira was arrested on March 5, 2019. A search of computer media seized at the time of his arrest revealed approximately 2000 images and videos depicting the sexual abuse of children, including more than 600 images of children who have been identified during the course of this and numerous other child pornography investigations.
The investigation also revealed that, in approximately 2016, Oliveira enticed a 16-year-old girl to send him sexually explicit photos of herself, and then he traveled to New York several times to have sexual intercourse with the same girl. The age of consent in New York is 17.
On October 2, 2019, Oliveira pleaded guilty to one count of distribution of child pornography.
Oliveira, who is released on a $100,000 bond, is required to report to prison on September 24, 2020.
This matter was investigated by FBI Child Exploitation Task Force in New Haven, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
St. Helens Man Sentenced to 13 Years in Federal Prison for Sexually Assaulting MinorRead the Press Release
PORTLAND, Ore.—Gerald Ryan Davis, 37, of St. Helens, Oregon, was sentenced today to 13 years in federal prison and a life term of supervised release for travelling across state lines to repeatedly sexually assault a 14-year-old victim.
According to court documents, Davis used social media to find his victim and, beginning in December 2014, repeatedly traveled across state lines to meet in person and engage in criminal sexual conduct. Davis gave the victim alcohol during these encounters.
Davis, who was 33 years old at the time, had previously been convicted in 2011 of sexually abusing a 17-year-old and was sentenced to probation. While on probation, he repeatedly violated his release conditions by contacting minor victims and was ordered to serve two years in prison. He was released in July 2014, five months prior to sexually assaulting the minor victim in this case.
On January 31, 2017, local police officers arrested Davis after executing a search warrant at his St. Helens home. While in custody, he admitted to sexually assaulting the minor. On March 1, 2019, he waived indictment and pleaded guilty to one count of traveling with intent to engage in criminal sexual conduct with a minor.
This case was investigated by the FBI with assistance from the St. Helens Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
Silver Spring Man Sentenced to 7 Years in Federal Prison for Two Armed RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced William Thompson, age 27, of Silver Spring, Maryland, to seven years, and one day in federal prison, followed by four years of supervised release, for interference with interstate commerce by robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. Judge Grimm also ordered Thompson to pay restitution of $498.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department
According to his guilty plea, on August 9, 2019, Thompson robbed a convenience store in Silver Spring, Maryland, wearing a black mask, distinctive glasses, a jacket, and light colored gloves. Throughout the robbery, which was captured on video surveillance, Thompson brandished a semi-automatic rifle. Thompson pointed the rifle at a store employee and demanded money. Out of fear for his life, the employee gave Thompson approximately $98 of store funds.
The next day, August 10, 2019, Thompson used the same rifle to rob a market located in Silver Spring, Maryland. Thompson pointed the rifle at the two store employees present and demanded money from the cash register. In fear for their lives, the victims gave Thompson approximately $400 of store funds. Thompson then fled the store in a blue four-door Subaru sedan.
A little over three hours later, Thompson was involved in a traffic accident in the Subaru in Rockville, Maryland. A search of the passenger compartment of Thompson’s vehicle led to the discovery of the black mask and gloves that Thompson had used in the robberies, as well a loaded black and gray handgun, in the center console. A search of Thompson’s trunk uncovered the loaded semi-automatic rifle that Thompson had used in the robberies. In addition, numerous additional magazines and hundreds of rounds ammunition were also located in Thompson’s vehicle.
A search warrant executed at Thompson’s residence uncovered more guns and ammunition, along with the jacket and shoes that the Defendant wore during the robberies.
United States Attorney Robert K. Hur commended FBI and Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who prosecuted the case.
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Shreveport Man Attempting to Sell Sexually Explicit Images Through Social Media Platform Sentenced in Federal CourtRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Ryan Joel Shilling, 27, of Shreveport, was sentenced today for Distribution of Child Pornography. United States District Judge S. Maurice Hicks, Jr. sentenced Shilling to spend 168 months (14 years) in prison, followed by 3 years of supervised release. Shilling was also ordered to pay $3,000 in restitution.
According to information presented in court, the U.S. Department of Homeland Security-Homeland Security Investigations received information in July 2019 from an unnamed source that an individual sent him a message using Facebook Messenger offering to sell pictures of a nude girl and sent what appeared to be a selfie image of a nude girl. Law enforcement officers began their investigation into the allegations and learned that Ryan Joel Shilling was the individual who sent the message and sexually explicit image.
Shilling had been arrested by Shreveport Police Department officers on an unrelated matter in July 2019. Officers obtained a state search warrant for the defendant’s cell phone. During their investigation, officers found text messages between Shilling and a girl, who was later determined to be a minor, asking her to take sexually explicit images and send them to him. Shilling offered to pay her for them via CashApp. Federal and local law enforcement officers worked together and confirmed that the image Shilling had sent to the unnamed source through Facebook Messenger was in fact the image of the minor girl he was sending text messages. Shilling pled guilty to the charge in United States District Court on December 12, 2019.
The U.S. Department of Homeland Security-Homeland Security Investigations and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
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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.
Seventh Generic Drug Manufacturer Is Charged in Ongoing Criminal Antitrust InvestigationRead the Press Release
Teva Pharmaceuticals USA Inc. (Teva) has been charged with conspiring to fix prices, rig bids, and allocate customers for generic drugs, the Department of Justice announced today.
According to a superseding indictment filed today in the U.S. District Court for the Eastern District of Pennsylvania, the company participated in three conspiracies from at least as early as May 2013 until at least in or around Dec. 2015.
“Today’s charge reaffirms that no company is too big to be prosecuted for its role in conspiracies that led to substantially higher prices for generic drugs relied on by millions of Americans,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The division will continue to work closely with our law enforcement partners to ensure that companies that blatantly cheat consumers of the benefits of free markets are prosecuted to the full extent of the law.”
Count one charges Teva for its role in a conspiracy that included Glenmark Pharmaceuticals Inc., USA (Glenmark), Apotex Corp. (Apotex), and others. On May 7, Apotex admitted to its role in this conspiracy and agreed to pay a $24.1 million penalty. On July 14, a grand jury returned an indictment against Glenmark for its role in the same conspiracy, which today’s indictment supersedes. According to the charge, Teva, Glenmark, Apotex, and unnamed co-conspirators agreed to increase prices for pravastatin and other generic drugs. Pravastatin is a commonly prescribed cholesterol medication that lowers the risk of heart disease and stroke.
Count two charges Teva for its role in a conspiracy with Taro Pharmaceuticals U.S.A., Inc. (Taro U.S.A.), its former executive Ara Aprahamian, and others. On July 23, Taro U.S.A. admitted to its role in this conspiracy and agreed to pay a $205.7 million penalty to resolve that charge as well as its role in a separate antitrust conspiracy. Aprahamian was indicted in February 2020 for his role in the conspiracy with Teva, among other charges, and is awaiting trial. According to the charge, Teva and its co-conspirators agreed to increase prices, rig bids, and allocate customers for generic drugs including, but not limited to, drugs used to treat and manage arthritis, seizures, pain, skin conditions, and blood clots.
Count three charges Teva for its role in a conspiracy with Sandoz Inc. and others. In March 2020, Sandoz admitted to its role in this conspiracy, as well as in conspiracies with other generic drug manufacturers, and agreed to pay a $195 million penalty. According to the charge, Teva and its co-conspirators agreed to increase prices, rig bids, and allocate customers for generic drugs including, but not limited to, drugs used to treat brain cancer, cystic fibrosis, arthritis, and hypertension.
“During these difficult times, it is absolutely essential that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to artificially increase prices, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General remains committed to investigating those who would engage in this type of harmful conduct.”
“Today’s charges, the latest in a series of law enforcement actions taken against large drug companies, confirm that this kind of criminal behavior in the generic pharmaceutical industry will not be tolerated,” said James A. Dawson, Acting Assistant Director in Charge of the FBI’s Washington Field Office. “Price fixing and bid rigging is a crime, and the American people—who rely on these drugs to treat serious ailments—are the ones who pay the price when companies like Teva conspire to raise their costs. The FBI remains committed to holding companies accountable for their illegal and reprehensible activity.”
“Today’s superseding indictment against Teva is another important step in this ongoing criminal investigation, which has already recovered hundreds of millions of dollars,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “Along with our partners at the Antitrust Division, we remain heavily focused on illegal price fixing and market allocation in generic drugs and on addressing the impact those practices have on federal healthcare programs like Medicare and Medicaid.”
Teva is the seventh company to be charged for its participation in conspiracies to fix prices, rig bids, and allocate customers for generic drugs. Five previous corporate cases were resolved by deferred prosecution agreements, and Teva’s co-conspirator Glenmark is awaiting trial. Four executives have also been charged; three have entered guilty pleas, and one is awaiting trial.
A criminal charge merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Each of the charged offenses carry a statutory maximum penalty of $100 million for companies. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than $100 million.
This case is the result of an ongoing federal antitrust investigation into price fixing, market allocation, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the Federal Bureau of Investigation’s Washington and Philadelphia Field Offices, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Santa Maria Man Charged with Fatally Shooting Elephant SealRead the Press Release
LOS ANGELES – A Santa Barbara County man was charged today with fatally shooting a northern elephant seal on a beach near San Simeon.
Jordan Gerbich, 30, of Santa Maria, is charged in an information with one count of taking a marine mammal.
Northern elephant seals are a protected species under the Marine Mammal Protection Act. They live up and down North America’s Pacific coast and haul out on land in areas called rookeries. These rookeries are typically populated with elephant seals year-round, but populations vary throughout the year based on breeding and molting cycles.
In September 2019, the corpse of a northern elephant seal was found on a beach near San Simeon close to a popular viewing area along California Highway 1 where visitors can observe elephant seals. The animal had been shot in the head. Gerbich is charged with fatally shooting the mammal on September 28, 2019.
An information contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the misdemeanor offense alleged in the information, Gerbich would face a statutory maximum sentence of one year in federal prison.
This matter was investigated by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement with substantial assistance provided by the California Department of Fish and Wildlife.
This case is being prosecuted by Assistant United States Attorney Heather C. Gorman of the Environmental and Community Safety Crimes Section.
Russian National Arrested for Conspiracy to Introduce Malware into a Nevada Company's Computer NetworkRead the Press Release
A Russian national made his initial appearance in federal court Monday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a complaint with one count of conspiracy to intentionally cause damage to a protected computer. He was arrested on Aug. 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, California, who ordered Kriuchkov detained pending trial.
According to the complaint and statements made in court, from about July 15, 2020 to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware – i.e., malicious software programs designed to damage or do other unwanted actions on a computer system – into the company’s computer network. The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov entered the United States using his Russian passport and a tourist visa. He contacted and met with the employee numerous times to discuss the conspiracy. Kriuchkov promised to pay the employee $1 million after the malware was introduced. In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.
After being contacted by the FBI, Kriuchkov drove overnight from Reno, Nevada, to Los Angeles. Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.
The charges and allegations contained in a complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was led by the FBI’s Las Vegas Field Office with assistance from the FBI’s Los Angeles Field Office; the FBI’s Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and C.S. Heath, Senior Counsel of CCIPS, 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.
Russian National Arrested for Conspiracy to Introduce Malware into A Nevada Company's Computer NetworkRead the Press Release
RENO, Nev. — A Russian national made his initial appearance in federal court yesterday for his role in a conspiracy to recruit an employee of a company to introduce malicious software into the company’s computer network, extract data from the network, and extort ransom money from the company, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
“As Nevada’s economy diversifies and evolves into a center for technological innovation, our office will continue to prioritize protecting trade secrets and other confidential information belonging to U.S. businesses,” said U.S. Attorney Trutanich. “Working with our law enforcement partners, we are committed to holding accountable anyone who plots to use malicious cyber tactics to harm American consumers and companies.”
“In this matter, the FBI was once again able to intervene before any damage could occur,” said Special Agent in Charge Rouse. “We will continue to aggressively pursue any person or entity that attempts to inflict damage to American business or enterprise, no matter who or where.”
Egor Igorevich Kriuchkov, 27, a citizen of Russia, was charged in a
complaint with one count of conspiracy to intentionally cause damage to a protected computer. He was arrested on August 22, 2020, in Los Angeles and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon in U.S. District Court in Los Angeles, who ordered Kriuchkov detained pending trial.According to the complaint and statements made in court, from about July 15, 2020 to about August 22, 2020, Kriuchkov conspired with associates to recruit an employee of a company to introduce malware — i.e., malicious software programs designed to damage or do other unwanted actions on a computer system — into the company’s computer network. The malware would supposedly provide Kriuchkov and his co-conspirators with access to the company’s system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov entered the United States using his Russian passport and a tourist visa. He contacted and met with the employee numerous times to discuss the conspiracy. Kriuchkov promised to pay the employee $1 million dollars after the malware was introduced. In furtherance of the conspiracy, Kriuchkov provided the employee with a burner phone, and instructed him to leave the burner phone in airplane mode until after the money was transferred.
After being contacted by the FBI, Kriuchkov drove overnight from Reno to Los Angeles. Kriuchkov asked an acquaintance to purchase an airline ticket for him in an attempt to fly out of the country.
Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI Los Angeles Field Office; the FBI Sacramento Field Office; the Washoe County Sheriff’s Office; and the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS). Assistant U.S. Attorney Richard Casper and Candina Heath, Senior Counsel of CCIPS, are prosecuting the case.
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Rochester Man Going to Prison for His Role in A Series of Bank Robberies by GunpointRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Terrance Rainey, 35, of Rochester, NY, who was convicted of bank robbery by use of a dangerous weapon, was sentenced to serve 240 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay $30,208.00 in restitution.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on May 25, 2016, Rainey and co-defendant Latrell Parson robbed the First Niagara Bank on Winton Road in Henrietta, NY. The two men entered the bank, and Parson approached the teller, pointed an air pistol that appeared to be a semi-automatic handgun at her, handed her a bag and ordered her to fill it with money. At the same time, Rainey held the other bank employees at gunpoint with an air pistol that appeared to be a semi-automatic handgun. The teller complied with Parson’s demand, and Parson and the defendant then exited the bank and drove away in a vehicle. They then set fire to that car in the back parking lot of a bowling alley on Jefferson Road in Rochester.
On July 14, 2016, Rainey and Parson robbed the Chase Bank on State Route 31 in Macedon, NY. The defendant and Parson entered the bank wearing hooded sweatshirts, masks, and gloves, each brandishing a semi-automatic pistol, and ordered bank employees to get on the floor. Parson handed a bag to a teller and demanded that money be placed in the bag. The teller complied and Parson and the defendant then fled the bank in a SUV. Parson and Rainey then abandoned that vehicle behind a plaza adjacent to the bank.
On October 18, 2016, Rainey and Parson robbed the M&T Bank located on Oak Orchard Road in Elba. The two men entered the bank wearing hooded sweatshirts with face coverings and gloves, and pointed handguns at the employees. Parson threw a bag to one of the bank employees, ordering her to fill it with cash. The teller complied, and Parson and the defendant took the money and fled the bank, got into a car, and drove away. They then pulled into a vacant lot, switched vehicles, and left the area.
Latrell Parson was previously convicted and sentenced to serve 141 months in prison.The sentencing is the result of an investigation by the New York State police, under the direction of Acting Major Barry Chase; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr.; the Macedon Police Department, under the direction of Chief John P. Colella; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Registered Sex Offender Detained on Solicitation, Child Pornography ChargesRead the Press Release
PROVIDENCE – A registered sex offender previously convicted in Rhode Island state court for indecent solicitation of a child was arraigned today on new federal charges of enticement of a minor to engage in sexual conduct, and possessing and distributing child pornography.
According to court documents, in January 2020, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force received information from the National Center for Missing and Exploited Children that an individual uploaded an image of child pornography from an IP address in Rhode Island. An investigation by members of the ICAC determined that the IP address belonged to an Internet subscriber in West Warwick.
Further investigation by members of the ICAC determined that Robert H. King, 35, of Cranston, who was staying with a friend in West Warwick, allegedly sent several messages on social media platforms, contacting juveniles and sending them sexual messages. Among the alleged online conversations was a sexually explicit conversation King had with a girl who allegedly informed him that she was twelve years old. It is alleged that King solicited the pre-teen to engage in sexual activity.
On March 26, 2020, members of the ICAC Task Force executed a court-authorized search of the West Warwick residence where King was staying and took possession of his cell phone. A forensic audit of King’s cell phone allegedly revealed approximately 135 images of child pornography.
King, charged previously in Rhode Island state court in this matter, appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained in federal custody on a federal criminal complaint charging him with coercion/enticement of a minor to engage in sexual conduct, possession of child pornography, and distribution of child pornography, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
United States Attorney Aaron L. Weisman thanks the Rhode Island Department of the Attorney General for their assistance in the preparation of this matter for prosecution in federal court.
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Portland Man Charged with Intimidating a Federal Employee Near Hatfield Federal CourthouseRead the Press Release
PORTLAND, Ore.—Dakota Kurtis Means, 20, a resident of Portland, has been charged by criminal information with forcibly assaulting, impeding, and intimidating a federal employee near the Mark O. Hatfield U.S. Courthouse on August 24, 2020, announced U.S. Attorney Billy J. Williams.
According to court documents and information shared in court, at approximately 5:30am on August 24, 2020, an employee was walking to work at the Hatfield Federal Courthouse when Means allegedly began following the employee, yelling obscenities. Means was carrying a black colored paintball rifle and yelled “it’s a paintball gun now, but it’s going to be an AR later,” seemingly referring to an AR-15 assault rifle. Means was arrested a short time later near the courthouse by U.S. Marshals Service deputies.
Means made his initial appearance in federal court on August 24, 2020 before a U.S. Magistrate Judge. He pleaded not guilty and was ordered released to a residential re-entry center pending a one-day jury trial scheduled to begin on October 27, 2020.
Forcibly assaulting, impeding, and intimidating a federal employee while engaged in or on account of the performance of their official duties, a Class A misdemeanor, is punishable by up to one year in federal prison.
The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pittsford Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Luke Vuittonet, 19, of Pittsford, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to production of child pornography. The charge carries carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between August 6 and August 12, 2019, the defendant produced digital photographs depicting a 13-year-old minor victim engaged in prohibited sexual conduct. The images were produced on Vuittonet’s cellular telephone.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
Sentencing is scheduled for December 1, 2020, at 9:30 a.m. before Judge Siragusa.
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Pittsburgh Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of Receipt and Attempted Receipt of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
Michael Riley, age 34, of Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that from January 2, 2020 through March 3, 2020, Riley knowingly received and attempted to receive visual depictions of minors engaging in sexually explicit conduct, namely videos.
Judge Horan scheduled sentencing for October 20, 2020 at 9:30AM. The law provides for a total sentence of not less than five years and not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Riley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pain doctor pays to settle allegations of deceptive Medicare billingRead the Press Release
HOUSTON – A 52-year-old pain management physician from Houston has paid $530,000 to resolve allegations he falsely billed Medicare for the use of electro-acupuncture devices, announced U.S. Attorney Ryan K. Patrick.
From March 1, 2019, to Oct. 31, 2019, Dr. Syed Nasir billed Medicare for the implantation of neurostimulator electrodes–a surgical procedure that usually requires use of an operating room. Medicare pays thousands of dollars for this procedure.
However, Nasir did not perform these surgeries. Instead, he applied a device used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators.
This is the second settlement of its kind involving electro-acupuncture billing the Southern District of Texas has resolved.
The Department of Health and Human Services – Office of Inspector General and the Centers for Medicare and Medicaid Services conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
North Hornell Man Indicted on Federal Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five-count indictment charging Justin Terwilliger, 40, of North Hornell, NY, with filing false tax returns. The charges carry a maximum penalty of three years in prison, and a $250,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, for calendar years 2013 through 2017, the defendant prepared and filed false tax returns with the Internal Revenue Service. These returns falsely reported that Terwilliger had little or no taxable income, even though in fact he had substantial taxable income of approximately $125,000 in 2013, $190,000 in 2014, $201,000 in 2015, $185,000 in 2016, and $249,000 in 2017.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson. Terwilliger is presently in custody serving an unrelated state sentence.
The indictment is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
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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