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25 August 2020
Ames Man Sentenced to Federal Prison for Tax FraudRead the Press Release
Des Moines, Iowa – On August 25, 2020, Scott Donald Griffen, age 57, of Ames, was sentenced by United States District Court Senior Judge Robert W. Pratt to four months in prison for the willful failure to account for and pay over employment taxes, announced United States Attorney Marc Krickbaum. Griffen was ordered to pay restitution in the amount of $150,297.52, with interest.
On November 15, 2019, the United States Attorney’s Office filed a one-count Information that charged Griffen with failure to account for and pay over employment taxes. Griffen pleaded guilty to the offense and admitted he failed to pay employment taxes related to his two Ames businesses, Corner Pocket and DG’s Tap House. Griffen admitted between 2012 and 2016 he failed to pay the IRS more than $150,000 in employment taxes.
“If you don’t pay your taxes, you can go to federal prison. It’s that simple,” said United States Attorney Marc Krickbaum. “Scott Griffen failed to pay employment taxes for four years, and he continued even after he was warned by the IRS. He deserves the prison term imposed today.”
“While operating his business from 2012 to 2016, Mr. Griffen willfully failed to pay over to the IRS any of the employment taxes he had withheld from his employee’s wages; he took them for his own purposes,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation Division in the St. Louis Field Office. “IRS CI will continue to use its financial expertise to investigate those individuals who knowingly and willfully evade their tax obligation.”
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Algona Man Found Passed Out with Loaded Weapons Sentenced to Federal Prison for Gun ChargesRead the Press Release
A man who illegally possessed stolen and loaded guns was sentenced on July 30, 2020 to more than five years in federal prison.
James Patrick Murphy, age 38, from Algona, Iowa, received the prison term after a February 26, 2020, guilty plea to two counts of being a felon, drug user, and domestic abuse misdemeanant in possession of a firearm, and one count of possession of a stolen firearm.
Evidence presented by the United States at the detention, change of plea, and sentencing, hearings revealed Murphy was a felon, recidivist domestic abuser, and drug user. Each of these three facts precluded Murphy from lawfully possessing guns. Murphy’s unlawful possession was discovered when law enforcement received a report of a person who appeared to be sleeping behind the steering wheel of his pickup truck. Law enforcement arrived at the reported location in Algona, Iowa, and recognized the person as Murphy. As law enforcement approached the pickup, they observed an AR-15-style rifle and a semiautomatic pistol on the seat next to the defendant. Murphy was removed from the pickup. Items seized from defendant’s truck included the AR-15 rifle with a fully loaded 20 round magazine, a scope, a Taurus pistol with a fully loaded magazine and a round in the chamber, a small baggie of methamphetamine, a pouch containing a cellophane wrapper with four small pills and four guitar picks, a United States passport for the defendant, and a cellphone. Subsequent investigations revealed that the guns were stolen.
Murphy was sentenced in Sioux City by United Stats Court Chief Judge Leonard T. Strand. Murphy was sentenced to 64 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe 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 its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kossuth County Sheriff’s Office and Algona, Iowa Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3042.
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Albuquerque man makes first appearance in federal court on gun chargesRead the Press Release
Albuquerque, N.M. – Eduardo “Lalo” Aguilar, 31, of Albuquerque, New Mexico, made an initial appearance on gun charges in federal court on August 20 before a detention hearing yesterday, at which the Court concluded that the he must be detained pending trial. Aguilar has been charged with being a felon in possession of a firearm and ammunition.
Agents with the Federal Bureau of Investigation’s Violent Crime Task Force (VCTF), working in conjunction with investigators from the Bernalillo County District Attorney’s Office, arrested Aguilar on August 13. According to a criminal complaint, while executing a warrant to search Aguilar’s apartment, investigators from the VCTF and the District Attorney’s Office located a loaded firearm, which, as felon, Aguilar cannot legally possess.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted as a felon in possession of a firearm and ammunition, he faces up to 10 years in prison.
The case is being investigated by the FBI VCTF and the District Attorney’s Office, and prosecuted by Assistant U.S. Attorney Letitia Simms as part of Operation Legend, a Department of Justice initiative to assist cities with persistently high crime rates. Operation Legend is a sustained and coordinated law enforcement initiative in which the U.S. Attorney’s Office and federal law enforcement agencies work with state and local law enforcement to prosecute gun and dangerous crimes arising in the City of Albuquerque.
Albuquerque man makes court appearance on federal carjacking chargesRead the Press Release
ALBUQUERQUE, N.M. – Elias Bencomo-Morales, 42, of Albuquerque, New Mexico, made an initial appearance in federal court on Friday, August 21, and has been charged federally with carjacking for allegedly using a gun to force a woman and her two minor children out of their vehicle in a Taco Bell drive-thru lane. At a hearing today, the Court ordered that he will remain detained for trial.
A federal indictment and complaint charge Bencomo-Morales also with using, carrying and brandishing a firearm during and in relation to a crime of violence. The Albuquerque Police Department arrested Bencomo-Morales, who was transferred to the Federal Bureau of Investigation Violent Crime Task Force to face federal charges on August 19, 2020.
Bencomo-Morales is accused of approaching a vehicle waiting in the Taco Bell drive-thru lane in southwest Albuquerque on September 17, 2019. He allegedly pulled on the driver's-side door handle before the driver and her two children, 5 and 1 year old, got out of the vehicle at gunpoint. Bencomo-Morales allegedly drove away in the vehicle. The following day, Albuquerque police pulled the SUV over because the license plate was registered to a different vehicle, and Bencomo-Morales was taken into custody.
A criminal complaint or indictment is only an accusation. A defendants is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the FBI Violent Crime Task Force and the Albuquerque Police Department. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
Acting Manhattan U.S. Attorney Announces Securities and Wire Fraud Charges Against Founder and Former CEO of Pharmaceutical CompanyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that SEPEHR SARSHAR was charged this morning with securities fraud and other fraud offenses in connection with SARSHAR’s scheme to provide inside information to his friends and family so they could trade in the securities of a pharmaceutical company SARSHAR founded and of which he was a member of the board of directors.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Sepehr Sarshar, aware of an impending tender offer for his company, tipped off friends and a close relative, enabling them to reap nearly three-quarters of a million dollars in illegal profits. My Office and the FBI remain resolute in our commitment to policing and prosecuting insider trading.”
FBI Assistant Director William F. Sweeney Jr. said: “It seems intuitive that material nonpublic information should never be shared with the public, or traded on, prior to shareholder knowledge. Still, time and time again we see where those privy to a company’s inside information pass it on to family and friends. As alleged today, Sepehr Sarshar, a founder and board member of Auspex Pharmaceuticals, Inc., tipped off his own inner circle to an anticipated tender offer for the company. His associates traded on this information, and profited by the hundreds of thousands. Upsetting the market balance in this way puts all investors at a disadvantage. I think the message here is pretty clear – insider trading is risky business, and it’s a crime that’s typically met with hefty fines or significant jail time.”
According to the Complaint[1] unsealed today Manhattan federal court:
Between in or about January 2015 and March 2015, SARSHAR, a founder, former chief executive officer, and member of the board of directors of Auspex Pharmaceuticals, Inc. (“Auspex”), misappropriated material nonpublic information (“MNPI”) from Auspex relating to an anticipated tender offer for Auspex by Teva Pharmaceutical Industries Ltd. (“Teva”). SARSHAR passed that MNPI on to friends and family – including a college friend, his then girlfriend, another long-time friend, and a close family relative (collectively, the “Associates”) – so they could execute profitable securities trades based on that MNPI, and otherwise caused the Associates to execute trades based on the MNPI he misappropriated. In turn, the Associates’ trading in the shares of Auspex generated an aggregate of more than approximately $700,000 in illicit profits.
To conceal his illegal scheme, SARSHAR later lied to the Financial Industry Regulatory Authority (“FINRA”) in an investigation conducted by FINRA into insider trading in Auspex securities during the period preceding Teva’s tender offer for Auspex. Among other things, SARSHAR falsely stated that he could recall no contact with two of the Associates during the period preceding the tender offer whereas, in truth and in fact, SARSHAR had substantial communications with those individuals, including regarding the forthcoming tender offer.
SARSHAR will be presented later today in federal court in San Diego.
* * *
SARSHAR, 53, of Encinitas, California, is charged with one count of securities fraud, one count of wire fraud, and one count of fraud in connection with a tender offer. The securities fraud count carries a maximum sentence of 25 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The fraud in connection with a tender offer count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and thanked the Philadelphia Regional Office of the SEC, which has filed civil charges against SARSHAR in a separate action. She added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Martin Bell are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
60-Year Old Dubuque Man Who Persuaded Teenager to Send Him Nude Photos Sentenced to Federal PrisonRead the Press Release
A Dubuque man, responsible for persuading a 15-year old girl to send him nude photos and videos, was sentenced today to 15 years in federal prison.
Mark Curtis, Sr., age 60, from Dubuque, Iowa, received the prison sentence after a March 4, 2020 guilty plea to one count of sexual exploitation of a child and one count of receipt of child pornography.
Information disclosed at his plea and sentencing hearings showed that between August 2018 and October 2018, Curtis persuaded a 15-year old girl, who lived outside the state of Iowa, to send him nude photos and videos of herself. She sent the pictures and videos via Facebook. Some images contained the young girl engaging in sexually explicit conduct, which Curtis had asked her to engage in. Curtis knew the girl was a minor. At one point, the girl told Curtis that she was studying to get her learner’s permit, to which Curtis replied he wished she was older. In total, investigators found approximately 44 files containing images sent between the girl and Curtis.
Curtis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Curtis was sentenced to 180 months’ imprisonment. He was ordered to make a payment of $200 to the special assessment fund. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1047.
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33 Inmates and Accomplices Charged with Illegally Obtaining Coronavirus Unemployment BenefitsRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro today announced that 33 individuals, including inmates at eight state and county jails and prisons in western Pennsylvania and their accomplices, have been charged in federal and state criminal complaints for illegally obtaining Coronavirus Aid, Relief, and Economic Security (CARES) Act unemployment benefits that contained false or fraudulent statements, and to which they were not entitled.
U.S. Attorney Brady stated, "The unprecedented scope and audacity of this inmate unemployment compensation fraud is appalling. These benefits were intended to help Pennsylvania workers make it through a difficult time. These inmates and their accomplices took advantage of this national emergency to line their pockets through fraud. Their conduct is despicable at any time, but particularly in a time of a national emergency. As these charges make clear, this conduct will not go unpunished, and my office will continue to work with our federal, state and local law enforcement partners to bring these criminals and their co-conspirators to justice. The message to those who engaged in this fraud is clear: if you submitted a fraudulent application for unemployment benefits, withdraw it. If you got a check or debit card through fraud, return it. If you don’t, expect to hear a knock on your door very soon."
"These defendants took advantage of a public health emergency to cash in on the backs of working people across our Commonwealth. They rip-offed off a program meant for everyday people whose lives were uprooted by COVID-19, some doing so from jail cells in local Pennsylvania prisons," said PA Attorney General Shapiro. "Our work here is not done. We will continue to root out scammers taking advantage of a system put in place to help during a trying time."
"An important mission of the Office of Inspector General is to investigate allegations of fraud that threaten the integrity of the Unemployment Insurance program. We will continue to work with our law enforcement partners to investigate this alleged criminal activity," said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
"Defrauding U.S. government programs intended to provide economic relief to disaster victims is not simply a matter of theft of U.S. tax dollars. It is far more: it undermines the security and wellbeing of our most vulnerable communities at a time when they are in the greatest in need of assistance," said Timothy Burke, Special Agent in Charge of the U.S. Secret Service’s Pittsburgh Field Office. "The U.S. Secret Service is committed to working with all of our partners, both in government and in the financial sector, to detect and arrest all those that engage in such crimes."
"The people accused today cooked up this scheme from behind bars to steal unemployment benefits that should’ve gone to families in our area who are out of work and trying to feed their families," said FBI Pittsburgh Special Agent in Charge Michael Christman. "At a time when people across the country are already struggling, this group capitalized on the hardships created by the pandemic. We know there are more out there and we will not stop our investigation until those who thought they could get some free money are brought to justice."
The following individuals were named in 16 separate criminal complaints filed this week in the U.S. Court for the Western District of Pennsylvania:
Levi Stroud, 24, incarcerated at Pennsylvania State Correctional Institution (SCI) -Greene since approximately January 22, 2018, and Christina Marie Weigner, of 389 Steubenville Pike, Burgettstown, PA 15021, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiracy to commit fraud in connection with a major disaster or emergency benefit.
Anthony Lee, 40, incarcerated at Allegheny County Jail since September 29, 2019, and Amara Ramsey (Lee’s girlfriend and claim filer), 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Lamont Wilford, 49, incarcerated at Allegheny County Jail since November 28, 2019; Casey Norrick (Wilford’s girlfriend), 44, of 9 Spruce Street, Natrona Heights, PA; and Amara Ramsey (claim filer) 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Orlando Grandison, 30, incarcerated at Allegheny County Jail since August 7, 2019; Nathaniel Weatherspoon, 28, currently incarcerated at Allegheny County Jail and has been since approximately October 5, 2017; and Andrea Zenmon (claim filer), 24, of 217 Rolling Woods Drive, North Versailles, PA 15137, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Marcenia Massey, 38, of 221 Ormsby Avenue, Pittsburgh, PA 15210, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed in the name of her incarcerated son, Isaiah Sterdivant, who is currently incarcerated at ACJ and has been since approximately March 20, 2019.
Shicon Jordan, 46, an SCI-Greene inmate incarcerated since March 12, 2015; Dennis Hill (aka Dennis Jordan - brother and currently on parole until November 20, 2020) 33, of Philadelphia, PA; and Niya Hill (claim filer), 35, of 511 Lloyd Court, Johnstown, PA 15906, are charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit, and knowingly filing, or aiding and abetting the filing, claims for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Jerome Dockblandi Poole, 33, an inmate at SCI-Greene and Tracy Ann Stankiewicz (ex-girlfriend and claim filer), of 1927 Woodmont Avenue, New Kensington, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Joseph Thomas Gainer, 28, an SCI-Greene inmate; Jonetta Meneffe Davis (friend) of 1410 Franklin Avenue, Pittsburgh, PA; and Joshua Calibe Lowry (aka El Rocco, claim filer), are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious and fraudulent statements; Gainer, Davis and Lowry are also charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit; and Gainer is charged with making a materially false, fictitious, or fraudulent statement or representation to federal agents of the U.S. government.
Amasa Lamont Camp, 23, an inmate at SCI-Fayette, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Camp used Global Tel-Link electronic messages to provide his personal identifiers to a member of his family for the purpose of fraudulently applying for PUA benefits on his behalf.
Izona Punch, of 7403 Race Street, Pittsburgh, PA, is charged with knowingly filing a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements in the name of SCI - Fayette inmate "RP" without his knowledge.
Jerrell Huddleston, who was incarcerated at Lawrence County Jail from approximately March 17, 2020 to July 24, 2020, then transferred to the Northeast Ohio Correction Facility where he is currently located, and Kalaurie Elahdy (claim filer), age, of 101 W. Ridge Ave., Sharpsville, PA 16150, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiring to commit fraud in connection with a major disaster or emergency benefits.
Tylan Huddleston, 25, incarcerated at Lawrence County Jail since June 5, 2020, and Paris Davis (claim filer), 23, of 10 W. Reynolds Street, New Castle, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements; and Huddleston and Davis are also charged with conspiring to commit fraud in connection with a major disaster or emergency benefit.
Clifford Yoders, 40, incarcerated at Butler County Prison since June 11, 2020, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Yoders used a jail phone to direct a relative to file the claim.
Lisa Lutz, 60, of 113 Snow Shoe Lane, Greensburg, Pennsylvania 15601, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed on behalf of her daughter, Terra Rager, an inmate at Westmoreland County Prison. According to the complaint, the funds received were utilized to pay her daughter’s expenses, including her attorney fees and her rent and to make deposits onto her commissary at the Westmoreland County Prison.
Gary Clanton, 33, an inmate at SCI-Fayette since July 3, 2014, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Clanton used Global Tel-Link electronic messages to provide his personal identifiers to an unidentified male for the purpose of fraudulently applying for PUA benefits on his behalf.
Jamelle Fairfax, 32, an inmate at SCI-Fayette since March 30, 2020, and he was still incarcerated at the time of the application filing, and Amanda Fairfax (wife and claim filer), 35, of Uniontown, PA 15402, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements, and with conspiring to commit fraud in connection with a major disaster or emergency benefit.
According the affidavits filed in these cases, the Pandemic Unemployment Assistance program is a new federal program created as part of the CARES Act. The PUA program provides unemployment benefits to workers who have lost their jobs as a result of the coronavirus pandemic. In Pennsylvania, the PUA program is administered by the Pennsylvania Department of Labor & Industry (DLI), but its benefits are funded in large part by the federal government. PUA benefits are paid in connection with the President’s declaration that the COVID-19 pandemic constitutes an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
Individuals are only eligible for PUA benefits if they are both unemployed for reasons related to the COVID-19 pandemic and available to work. In order to receive benefits, an individual must access the PUA website and file a PUA claim. The applicant is required to enter personally identifiable information as well as answer the eligibility questions. Individuals who are serving a sentence of incarceration, or who are detained pending a criminal trial, are neither available for work nor unemployed for reasons related to the COVID-19 pandemic. As a result, they are not eligible to receive PUA benefits for the period of their incarceration.
The criminal complaints detail the defendants’ alleged roles in the acquisition of PUA benefits. In general, the inmates used jail phones or other inmate communications to direct or assist persons outside the prison to file claims online using the inmate’s accurate Personal Identifying Information (PII), including full name, date of birth, and Social Security number, but falsely asserting that the inmate is available to work and is unemployed as a result of the COVID 19 pandemic. The benefits were then directed to the applicants’ on-file addresses outside of the correctional facility. Once approved, applicants were required to provide weekly certifications to continue to receive PUA program benefits.
Several of the federal complaints filed contain transcripts of jail calls or other inmate communications that allege the defendants knew that the statements or representations being made were false, and that financial benefits would be awarded.
Title 18, United States Code, Section 1040(a)(2), prohibits fraud in connection with emergency benefits; Title 18, United States Code, Section 371, prohibits two or more people conspiring to commit a federal crime or defraud the United States; and Title 18 United States Code, prohibits lying to a federal law enforcement agent in the course of an investigation. For a violation of Title 18, United States Code, Section 1040(a)(2), the law provides for a maximum total sentence of 30 years in prison, a $250,000 fine, or both. For violations of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1001, the law provides for a maximum total sentence of five years in prison, a $250,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Brendan McKenna, Jonathon Lusty, Benjamin Risacher, Christopher Cook, and Michael Ivory are prosecuting these cases on behalf of the federal government.
The following individuals were named in criminal complaints filed in the Pennsylvania Courts of Common Pleas and will be arrested this week by the Pennsylvania Office of Attorney
Jessica Rae Conrad and Homer Mizenko of Kiskiminetas Township, PA, have been fraudulently signing people up for PUA benefits who they know are not eligible to receive the benefits. In exchange for signing the people up for benefits, Conrad and Mizenko are being paid by the people they are registering. Typically, $1,000 per person. Conrad and Mizenko are being charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Thaddeus Crumbley and Steven Ashby are incarcerated at Forest State Correctional Institution. The
investigation uncovered that they both falsely filed for PUA benefits and have been fraudulently filing for others at the prison in exchange for drugs and/or money. Crumbly and Ashby are charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Robert Currington is incarcerated in Somerset County Correctional Facility. He, with the help of an unidentified woman outside of prison, filed fraudulent PUA claims for himself and other inmates at the prison. Currington is charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Under Pennsylvania law, they each face up to 20 years in jail and fines and penalties up to $50,000. Ms. Conrad and Mr. Mizenko face 30 years in jail and $75,000 because of additional identity theft charges.
These cases are being prosecuted by Chief Deputy Attorney General Brian Zarallo and Senior Deputy Attorney General Katherine Wymard.
Members of the Western Pennsylvania COVID-19 Fraud Task Force conducted the investigation leading to the charges in these cases. The Task Force was formed in March 2020 to investigate and prosecute coronavirus-related fraud. Task Force members include representatives from the United States Attorney’s Office, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, the United States Secret Service, the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI), U.S. Department of Labor – Office of Inspector General, Social Security Administration – Office of Inspector General, the U.S. Department of Education – Office of Inspector General and the Pennsylvania State Police.
The United States Secret Service played an important role in these prosecutions, as did investigators from the Pennsylvania Department of Corrections and the individual county jails, including the Allegheny County Jail. Investigators from the Allegheny County Jail, who are detectives with the Allegheny County Police, were among the first investigators who uncovered the fraud of Wilford and Norris and brought it to the attention of federal authorities.
United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro urged those who have filed fraudulent claims to withdraw them and further urged those who received a check or debit card as a result of that fraud to return those items. Both Mr. Brady and Mr. Shapiro expect further prosecutions as a result of this fraud.
If you believe you have been a target or victim of coronavirus-related fraud, please report it to the Task Force at:
• Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline:
1-888-C19-WDPA or 1-888-219-9372
• Western Pennsylvania COVID-19 Fraud Task Force’s email address:
• Pennsylvania Attorney General’s price gouging email address:
A criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
20 Year Prison Sentence for Serial Bank RobberRead the Press Release
ATHENS, Ga. – A serial bank robber who went on a crime spree within weeks after being released from a federal prison was sentenced to 20 years in prison for bank robbery, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Frank Douglas, 61, of South Carolina, was sentenced to serve 240 months in prison on Monday, August 24 by U.S. District Judge C. Ashley Royal after pleading guilty to one count of bank robbery. Douglas was released from a federal prison on September 29, 2017 after serving a ten year sentence for bank robbery. Shortly after his release, Douglas robbed three banks in November and December 2017 in Georgia and South Carolina. Douglas’ sentencing was based on the robbery of the Bank of America in Athens, Georgia. In addition to the prison sentence, Judge Royal ordered Douglas pay Bank of America $6,700 in restitution. There is no parole in the federal system.
“Violent crimes will not be tolerated in our communities, and we will do our part to hold violent criminals accountable. This serial bank robber has continually demonstrated he is unable to abide by the basic laws that govern our society, and he is facing a stiff sentence as a result,” said U.S. Attorney Charlie Peeler. “I want to thank the FBI and the Athens-Clarke County Police Department for their work investigating this case and providing a measure of justice to the hardworking bank employees and customers who this defendant has terrorized.”
"Ten years in federal prison was apparently not a teaching moment for Douglas because within weeks of being released, he went right back to his bank robbing ways," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Thanks to the assistance of our partners with the Athens-Clarke County Police Department, he'll have 20 more years to think about what he'll do the next time he is released from prison.”
Douglas admitted that he robbed three banks in 2017 while he was on federal supervised release, having served ten years in federal prison after confessing to robbing five banks. Douglas, wearing a stocking cap and glasses, entered the Bank of America in Athens on December 5, 2017. He passed the teller a note that read, “ALL LARGE BILLS I HAVE A GUN I WILL SHOOT.” No witnesses saw a gun, but Douglas repeatedly told the teller he had one and would shoot her. He escaped with $6,702.00 in cash. Douglas also admitted to robbing the BB&T bank in Conyers, Georgia on November 20, 2017 and the South State Bank in North Augusta, South Carolina on November 27, 2017. Douglas was taken into custody on December 12, 2017 in Greenville County, South Carolina.
The case was investigated by the FBI and the Athens-Clarke County Police Department. Assistant U.S. Attorneys Kimberly Easterling and Tamara Jarrett 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.
24 August 2020
Zimmerman Woman Pleads Guilty to Disability FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ANNAMARIE GREEN, 60, to one count of disability fraud. GREEN, who was indicted on January 8, 2020, entered her guilty plea this afternoon before Judge Nancy E. Brasel in U.S. District Court in Minneapolis, Minnesota.
According to GREEN’s guilty plea and documents filed with the court, in October of 2014, GREEN applied for disability benefits from the Social Security Administration (SSA), which approved her application in August of 2015. On multiple occasions from August 2015 through 2018, GREEN intentionally failed to disclose her work activities to the SSA, because she knew these activities would impact her eligibility to receive SSA benefits. Specifically she failed to disclose that she engaged in substantial work activities for Select Home Care, Inc., a company which GREEN owned and operated. As a result, GREEN received at least $40,000 in social security disability benefits that she knew she was not entitled to receive. As part of the plea agreement, GREEN agreed to pay restitution of the benefits she wrongfully received.
This case is the result of an investigation conducted by the Social Security Administration Office of the Inspector General.
Special Assistant U.S. Attorney Lindsey E. Middlecamp and Assistant United States Attorney Jordan L. Sing are prosecuting the case.
Defendant Information:
ANNAMARIE GREEN, 60
Zimmerman, Minn.
Convicted:
- Title II Disability Fraud, 1 count
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Young man convicted of bomb threat against federal buildingRead the Press Release
BROWNSVILLE, Texas - A 19-year-old resident of Harlingen made an appearance in federal court today and admitted he was responsible for threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.
Joel Hayden Schrimsher pleaded guilty to conveying false or misleading information through the internet concerning the potential destruction of a federal building.
On June 6, 2019, authorities learned of an online threat made via Twitter from the username @HaydenJool displayed as @Hayden Ter(rawr)ist. They quickly identified Schrimsher as the source. The investigation also revealed a post on his account relaying a family conversation which ended with “Me: I’m gonna mail a bomb to the Federal Reserve.”
Law enforcement executed a search warrant for Schrimsher’s home in Harlingen on June 6, 2019. At that time, they discovered physical and documentary evidence in his room consistent with the message he sent about the Federal Reserve building. After Schrimsher’s arrest, authorities also found a photo in his cellphone of a fake certificate declaring him as “Most Likely to Damage Federal Property.”
Schrimsher admitted to having the account @HaydenJool and name Hayden Ter(rawr)ist as well as making a tweet about bombing and damaging a Federal Reserve building. He claimed he was being “edgy” when he made the threats.
U.S. District Judge Fernando Rodriguez will impose sentencing Nov. 30 at 8:30 a.m., at which time Schrimsher faces up to five years in prison and a $250,00o maximum possible fine. He has been and will remain in custody pending that hearing.
The FBI, Cameron County District Attorney’s Office, Harlingen Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.
Wilmington Man Sentenced to 111 Months for Drug Trafficking and Firearms OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Keenan Gibson, 41, of Wilmington, was sentenced last week to more than 9 years in prison after a jury convicted Gibson of gun and drug charges in June 2019.
According to court documents, Gibson was charged with possession of heroin with the intent to distribute, as well as possession of a firearm in furtherance of drug trafficking. Gibson’s charges arose from a search of a Wilmington apartment during which officers discovered more than 1,100 bags of heroin, along with marijuana and methamphetamine. Gibson was found hiding in the bathroom, with his phone in the bathtub and a gun under the sink. Evidence at trial included multiple text messages on Gibson’s phone that referenced selling heroin and other drugs. The jury convicted Gibson in under three hours.
U.S. Attorney Weiss stated, “This defendant decided to sell heroin in the middle of an opioid crisis and to use a firearm in furtherance of his drug-trafficking activity in a community plagued by gun violence. Like others who engage in such conduct, he got caught and now will spend nearly a decade behind bars.”
“Any instance of criminals trafficking drugs creates opportunities for violence and puts communities at risk. This defendant increased that likelihood of violence by using a firearm to further his criminal activities,” said ATF Baltimore Field Division Special Agent in Charge Timothy Jones. “ATF and our law enforcement partners in the Wilmington Police Department, as well as the U.S. Attorney’s Office, are focused on getting anyone who uses guns to commit crime off the street so Delaware neighborhoods can thrive.”
"This sentencing marks the culmination of an investigation into drug and weapon offenses - crimes that plague communities across the country and disturb the quality of life of our residents," said Wilmington Police Chief Robert J. Tracy. "The outcome also accentuates the strong partnership our agency has with our colleagues in the U.S. Attorney's Office and the ATF, and the shared commitment we have to making our community safer."
The case was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Christopher de Barrena-Sarobe and Christopher Howland prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 16-CR-46.
West Virginia Man Sentenced to Life in Prison for Sex Trafficking, Distributing Fatal Doses of FentanylRead the Press Release
HARRISONBURG, VIRGINIA – Kendall Demarko Wysinger, a Martinsburg, West Virginia, man who used heroin as a means to control numerous women he trafficked as part of a commercial prostitution ring that operated in the Western District of Virginia and elsewhere, was sentenced today to life in prison. United States Attorney Thomas T. Cullen, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, and Jesse Fong, Special Agent in Charge of the DEA’s Washington Field Office made the announcement today following Wysinger’s sentencing hearing.
“Sex traffickers enslave and traumatize their victims for financial gain. This is why the Department of Justice has made these cases a top priority.” First Assistant United States Attorney Daniel P. Bubar said today. “Today’s sentence shows our office’s commitment to investigating and prosecuting anyone who commits these awful crimes. I am grateful to the FBI, DEA, and the numerous state and local agencies involved with the I-81 Human Trafficking Task Force who worked tirelessly to bring justice to the victims in this case.”
“We are very thankful for our DEA Washington Division DEA agents and intel analysts who worked this case, and for the teamwork of our federal and local partners in keeping our community safer from horrific human sex trafficking and violent drug crime, such as this,” Special Agent in Charge Fong said today. “This case is a great example of how we work, every day, alongside our law enforcement and community partners to bring such egregious criminals to justice.”
“The investigation of human trafficking is a high priority for the FBI. Through the FBI's I-81 Human Trafficking Task Force, law enforcement in the tristate area leverages resources, identifies perpetrators and assists victims with recovery and the rebuilding of their lives,” SAC Archey said today. “The sentencing today of Mr. Wysinger is the culmination of the work and dedication of the task force and the Department. We encourage anyone who is a victim of trafficking or suspects someone is being trafficked to contact law enforcement and seek assistance through victim services immediately.”
According to evidence presented at Wysinger’s January 2019 jury trial, the defendant operated a prostitution ring with at least six victims in Virginia, West Virginia, and Maryland. Through the course of the conspiracy, Wysinger used heroin to coerce his victims into engaging in commercial sex and employed threats and intimidation to ensure he maintained power and control over those victims. Wysinger routinely advertised these victims for commercial sex using online classified ads in Winchester, Virginia, Shenandoah County, Virginia, and cities in West Virginia and Maryland, and used social media accounts to target and recruit women into his sex-trafficking operation. The defendant demanded his victims provide him nearly all of the money they received from commercial sex in order to pay their drug debts, his charges for posting ads online, and transporting them to prostitution dates.
On one occasion, the heroin Wysinger distributed resulted in two overdoses. Wysinger gave what he said was heroin to one victim of his sex trafficking ring and her friend. The substance was actually fentanyl, a far more powerful synthetic opioid, and both victims overdosed after ingesting it. One victim died as a result of fentanyl poisoning. Wysinger was with both victims when they overdosed and left the victims unconscious in a Winchester motel room.
The investigation of the case was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation’s I-81 Human Trafficking Task Force (I-81 HTTF), the Luray Police Department, and the Northwest Virginia Regional Drug and Gang Task Force (NWRDGTF). Assistant United States Rachel Swartz prosecuted the case for the United States.
The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland; prosecuting those responsible; and, providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland and Lord Fairfax Community College.
The NWRDGTF uses the combined efforts of local, state, and federal agencies to actively pursue those groups or individuals who manufacture, distribute, or sell illegal narcotics. The NWRDGTF is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Clarke County Sheriff’s Office.
Waterloo Man Charged with Theft and Unlawful Possession of a HandgunRead the Press Release
Dalyn Jamil Culp, age 18, from Waterloo, Iowa, has been charged with theft of a firearm from a federally licensed firearms dealer and possession of a firearm by a drug user. The charges are contained in an Indictment filed on August 18, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 27, 2020, Culp knowingly stole a Smith and Wesson 9 mm pistol from a federal firearms licensee. The Indictment also alleges that Culp was an unlawful user of marijuana at the time he possessed the firearm.
If convicted on all charges, Culp faces a sentence of up to 20 years’ imprisonment, a fine of up to $500,000, and up to six years of supervised release following any imprisonment.
Culp appeared on August 24, 2020, in federal court in Cedar Rapids and was held without bond. Culp’s trial is scheduled for October 26, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Liz Dupuich and was investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2041.
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Warren County man sentenced to 10 years in prison for possessing hundreds of images of child rapeRead the Press Release
DAYTON – Garry Weatherbie, 65, of Franklin, Ohio, was sentenced in U.S. District Court today to 10 years in prison and 10 years of supervised release for possessing child pornography after being convicted of prior sex offenses.
According to court documents, on Feb. 6, 2019, Weatherbie possessed more than 600 images of child sexual abuse on his tablet.
At the time, Weatherbie was on parole after being released from the Chillicothe Correctional Institution, where he served an eight-year sentence for pandering sexual material involving a minor. Weatherbie was previously convicted in Hamilton County Common Pleas Court.
A federal complaint affidavit details that investigators took Weatherbie into custody in February 2019 on allegations of sexual assault. While searching the defendant’s residence, they discovered the child pornography on his tablet.
Weatherbie pleaded guilty to the federal charge in February 2020.
“This case is a reminder that possessing child pornography is not a victimless crime,” U.S. Attorney David M. DeVillers said. “Even if you do not create the child pornography, you can face significant time in federal prison.”
“Today’s significant sentencing removes from the community a repeat child predator, who shockingly continued his predatory behavior while on parole for similar crimes,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “There is no place in our society for those who prey on children. HSI and its partners will continue to aggressively target those who exploit children.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); and Franklin, Ohio Police Chief Russ Whitman announced the sentence imposed today by U.S. District Court Judge Walter H. Rice. Assistant United States Attorney Andrew J. Hunt is representing the United States in this case.
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Veterinarian Residing in Truckee Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Jack Ray Snyder, 63, of Truckee, pleaded guilty today to one count of tax evasion, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Snyder failed to report significant income for tax years 2011, 2012, 2013 and 2014. Each year, Snyder underreported his income to his tax preparer and took deductions for expenses that were not deductible business expenses. For the 2011 tax year, Snyder earned outside income as an equine veterinarian in addition to his salary as a professor at the University of California, Davis. He endorsed outside client payment checks to directly pay credit card bills. He failed to report $212,953 in income for the 2011 tax year. According to the plea agreement, the additional tax due for 2011, 2012, 2013, and 2014 tax years was $134,497.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Roger Yang is prosecuting the case.
Snyder is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 16. Snyder faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney Announces MOU with Special Inspector General for Pandemic RecoveryRead the Press Release
BEAUMONT, Texas – United States Attorney Stephen J. Cox and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“The COVID-19 pandemic has taken a devastating toll on American lives across the country, and the economic fallout is similarly widespread,” Cox said. “Congress has provided vital financial relief to the public, and many people and companies are staying afloat thanks to those valuable resources.” Cox said. “That fraudsters have sought to steal these taxpayer funds is unfortunately a reality that we have seen firsthand in the Eastern District. That’s why we are committed to detecting, investigating, and prosecuting those wrongdoers who exploit the pandemic for profit, and we are eager to partner with Special Inspector General Miller in this fight against fraud.”
In response to the widespread economic harm caused by the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals. The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute wrongdoing involving the making, purchase, management, and sale of loans, loan guarantees, and other investments by the Secretary of the Treasury under Division A of the CARES Act, and the management by the Secretary of any program established under Division A of the CARES Act. This partnership will make efficient use of limited resources and help ensure coordination with regulators and law enforcement so that just results can be achieved, while at the same time taking care not to stymie legitimate businesses acting in good faith to access the important financial resources that Congress made available through the CARES Act.
“I look forward to working with U.S. Attorney Stephen Cox and his team in the Eastern District of Texas to identify fraud, waste and abuse of the money provided under the CARES Act,” said Brian D. Miller, Special Inspector General for Pandemic Recovery. “We will bring to justice those who would steal CARES Act money, and recover money for the taxpayers. Taxpayers should expect nothing less.”
Two Assistant U.S. Attorneys (AUSA) – one from EDTX’s Criminal Division and one from EDTX’s Civil Division – will serve as liaisons to the EDTX-SIGPR partnership. These AUSAs will be direct points of contact for case-related inquiries from SIGPR. Additionally, a criminal paralegal will be designated to assist with SIGPR-referred investigations and prosecutions. EDTX will also provide forensic audit support for civil enforcement matters.
The MOU also calls for EDTX to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
Two South Dakota Men Sentenced to Federal Prison for CarjackingRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men convicted of Carjacking Resulting in Serious Bodily Injury, Discharge of a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person were sentenced on August 13, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Moses Crowe, age 27, was convicted by a jury of all three charges and was sentenced to a total of 22 ½ years in federal prison as to the Carjacking conviction. Crowe was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund.
Ranson Long Pumpkin, age 33, was convicted by the same jury of Aiding and Abetting, Carjacking Resulting in Serious Bodily Injury, and Discharge of a Firearm During a Crime of Violence. Long Pumpkin was sentenced to a total of 20 years in federal prison. Long Pumpkin was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $200 in special assessments to the Federal Crime Victims Fund.
Saul Crowe earlier pleaded guilty on January 25, 2019, to Carjacking and Discharge of a Firearm During a Crime of Violence, and was sentenced on June 21, 2019, to serve just over 20 years in federal prison.
Evidence at trial established that Moses Crowe, Long Pumpkin, and Saul Crowe carjacked an occupied van by force on October 13, 2017. Together, the men held the victim at gunpoint and repeatedly strangled him to unconsciousness. The men drove the victim to an isolated area north of Rapid City, where they pistol-whipped and severely beat him. Using two different semi-automatic pistols, Moses Crowe and Saul Crowe each fired multiple rounds near the victim, while Long Pumpkin continued to physically assault him.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Unified Narcotics Enforcement Team; the Rapid City Police Department; the Pennington County Sheriff’s Office; the South Dakota Division of Criminal Investigation; and the RCPD/PCSO Special Response Team. Assistant U.S. Attorneys Heather Sazama and Gina Nelson prosecuted and tried the case. ATF Special Agent Riley Cook was the lead case agent.
Crowe and Long Pumpkin were immediately turned over to the custody of the U.S. Marshals Service.
Topeka Man Sentenced to 7 Years for Attempting to Rob a Liquor StoreRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to seven years for an attempted robbery in which he and a juvenile armed with a gun tried to rob a liquor store, U.S. Attorney Stephen McAllister said.
Joseph Bryant Toole, III, 37, Topeka, Kan., pleaded guilty to one count of attempted robbery of a commercial business. In his plea, he admitted that on Nov. 2, 2018, he and a juvenile male accomplice attempted a robbery at Lynn’s Liquor, 3335 SW Gage Blvd. in Topeka. They were wearing blue bandanas and the juvenile was carrying a firearm. However, the door was locked and they were unable to enter the business.
Investigators were able to identify a vehicle parked near the liquor store, which led them to the defendant.
McAllister commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
Texas professor and NASA researcher arrested on charges related to China’s Talents ProgramRead the Press Release
HOUSTON – A criminal complaint has been unsealed charging a 53-year-old College Station man for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m. in Houston. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“Once again we have witnessed the criminal conflicts that can arise from participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to illuminate the darkness around these talent programs and expose the exploitation of our nation and our prized research institutions.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.
China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Sturgis Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 4, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Conner Harmon, age 22, was sentenced to 5 years in federal prison, followed by 8 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2018 Sturgis Motorcycle Rally, targeting internet predators. Harmon was arrested and federally indicted following multiple chats and text messages with a person Harmon believed to be a 14 year-old girl, but who was in fact an undercover agent. Harmon proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Harmon went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Harmon was immediately remanded to the custody of the U.S. Marshals Service.
Shreveport Man Sentenced for Stealing Items from Shreveport Police Department VehicleRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Kiandrew McFan, 23, of Shreveport, was sentenced today by U.S. District Judge S. Maurice Hicks, Jr. for Illegal Possession of Stolen Explosives Material. McFan was sentenced to 24 months in prison, followed by 3 years of supervised release. McFan pled guilty to the charge in United States District Court on September 25, 2019.
According to evidence introduced in court, on February 17, 2019, a member of the Shreveport Police Department S.W.A.T. Unit reported that his unmarked vehicle was burglarized in front of his Shreveport residence. A flash bang, which is a small explosive device utilized by the S.W.A.T. during a dynamic entry of a dwelling to distract and disorient subjects in the dwelling, was stolen. The flash bang produces a loud audio explosion and an intense flash of light when detonated. On February 22, 2019, Shreveport Police Department officers obtained a warrant and discovered the flash bang at McFan’s residence. McFan admitted to the theft and possession of the explosive material.
The ATF 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 Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Sacramento Couple Pleads Guilty to Conspiring to Commit Tax FraudRead the Press Release
SACRAMENTO, Calif. — A Sacramento couple pleaded guilty today to conspiring to defraud the United States by submitting false claims for income tax refunds to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.
According to court documents, between March 29, 2012 and Feb. 14, 2015, William Bennett, 42, and Christina Bennett, 38, conspired with Bridget Coilton, 50, also of Sacramento, to defraud the IRS by submitting false claims for income tax refunds for themselves and for others.
According to the plea agreements, Coilton allegedly provided William Bennett with personally identifying information (PII) of other people, and he would file tax returns for those people claiming false, inflated tax refunds based on false statements he added to the returns. The false returns usually fell into similar categories and contained similar false claims. For example, the tax returns filed as a part of the conspiracy contained false and fraudulent statements regarding employment, income, withholdings from income, and dependency exemptions. Some of the federal tax returns also sought tax credits to which the individuals on the returns were not entitled, such as the American Opportunity Credit.
The fraudulent statements resulted in refunds that were often directed to be deposited into bank accounts the Bennetts or Coilton controlled. After the IRS issued the refunds, the co‑conspirators divided the proceeds amongst themselves, sometimes providing the tax filer with a small portion of the refund. If the refund was deposited into one of the Bennett’s bank accounts, Christina Bennett would often withdraw some of the tax refunds deposited in cash and then deliver the withdrawals to Coilton.
The charges against Coilton are pending. She is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
William Bennett and Christina Bennett are scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 7. They each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Registered sex offender pleads guilty to producing child pornographyRead the Press Release
Tacoma - A registered sex offender currently jailed in Skamania County pleaded guilty today in U.S. District Court in Tacoma to production of child pornography, announced U.S. Attorney Brian T. Moran. STEVEN LEE McBRIDE, 51, faces a mandatory minimum 15-years in prison when sentenced by U.S. District Judge Benjamin H. Settle on October 26, 2020. Under the terms of the plea agreement, prosecutors will recommend no more than 25-years in prison, and the defense will recommend no less than 18 years in prison. Judge Settle is not bound by the recommendations and can impose any sentence up to the maximum of 30 years in prison.
According to records filed in the case, in 2007, McBRIDE was convicted in Idaho of molesting two children under the age of 16 and was required to register as a sex offender following a state prison term of up to 15-years. Upon release from prison, McBRIDE moved to a residence in Skamania County. There he moved next door to a distant relative and befriended that neighbor’s child. Between September 2017 and May 2019, McBRIDE made sexually explicit images of the child by hiding a camera in the bathroom, molesting the child while the child slept and ultimately by posing as a school friend of the child online to demand the child send sexually explicit images. McBRIDE threatened to kill the child’s family if the child did not continue to provide the photos.
Law enforcement learned of the production of child pornography when investigators in Queensland, Australia became aware of McBRIDE providing sexually explicit images online in their jurisdiction. An undercover officer contacted McBRIDE and got additional information about the identity of the victim from McBRIDE. The Vancouver Police Department and Homeland Security Investigations moved quickly to alert the victim’s parent and arrest McBRIDE on June 7, 2019.
McBRIDE is charged in Skamania County Superior Court for the hands-on molestation. Under the terms of the plea agreement his state and federal sentences will run concurrently.
The case was investigated by Homeland Security Investigations with assistance from the Vancouver Police Department and the Queensland Australia Police.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Damian Buchholz, age 34, was sentenced on August 14, 2020, to 2 years in federal prison, followed by 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Buchholz, a previously convicted felon who is prohibited from possessing firearms, possessing a Springfield Armory 9mm semi-automatic pistol and a Smith & Wesson .38 special caliber revolver, both with obliterated serial numbers, which were found after Buchholz came into contact with Rapid City police officers in September 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Buchholz was immediately remanded to the custody of the US Marshals Service.
Rapid City Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 14, 2020, by Jeffrey L. Viken, U.S. District Court Judge.
Kenneth Williamson, age 52, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Williamson was arrested and federally indicted following multiple chats and text messages with a person he believed to be a 15 year-old girl, but who was in fact an undercover agent. Williamson requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Williamson went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Williamson was immediately remanded to the custody of the U.S. Marshals Service.
Private Security Employee Arrested on Criminal Complaint Alleging He Falsely Impersonated a Federal Law Enforcement AgentRead the Press Release
SANTA ANA, California – A private security employee at an Orange County retirement community was arrested today on a criminal complaint alleging he pretended to be a federal agent.
Donovan Pham Nguyen, 34, of Riverside, is charged with one count of false impersonation of a federal officer or employee, according to a criminal complaint unsealed today. He is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit filed with the complaint, Nguyen for years pretended to be a special agent with Homeland Security Investigations (HSI) and used the false title to obtain things of value. Nguyen never worked for HSI, although he previously was a privately contracted security guard at a Department of Homeland Security (DHS) facility. He left that job in 2015 after an internal investigation was launched resulting from allegations that he printed fake HSI identification documents, the affidavit states.
In May 2019, while employed for a private security company at a retirement community in Orange County, Nguyen allegedly claimed his false title to agents with the U.S. Department of State’s Diplomatic Security Service (DSS) preparing to execute an arrest warrant.
In June 2020, Nguyen discussed a potential criminal investigation with members of the Riverside County District Attorney’s Office after an introduction from a mutual friend. At the meeting, Nguyen again purported to be an HSI employee, according to the affidavit. Following the meeting, Nguyen informed the District Attorney’s Office that, after discussing the matter with his supervisor, HSI could not assist the district attorney in the investigation.
Nguyen allegedly used a false DHS identification to purchase firearms, which allowed him to avoid taking and paying for certain firearm safety courses required by California law. He also used his purported duties as an HSI special agent to excuse his frequent absences from work at a private security firm.
His coworkers at the private security firm reported seeing an HSI badge, a DHS plaque, and various tactical gear, including a ballistic shield, inside of Nguyen’s office. They also reported that Nguyen’s personal vehicle had been equipped with red and blue lights and a siren, the affidavit states. Nguyen also handed out HSI memorabilia, mugs and coins to people at that office.
Nguyen’s LinkedIn social media profile posted his current employment as “Department of Homeland Security Agent,” indicating he was employed with DHS since June 2008. Nguyen also appeared in a YouTube video that purports to be an interview of him as a long-time HSI special agent discussing immigration policies, according to the affidavit.
A complaint 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, Nguyen would face a statutory maximum sentence of three years in federal prison.
Homeland Security Investigations and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility investigated this matter. These DHS agencies received assistance from the Riverside County District Attorney’s Office, the U.S. Department of State’s Diplomatic Security Service, and the Orange Police Department.
This case is being prosecuted by Assistant United States Attorneys John A. Balla and Jerry C. Yang of the Riverside Branch Office.
Philadelphia Tax Preparer Sentenced to Five Years for FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Principal Deputy Assistant Attorney General of the Tax Division Richard E. Zuckerman, announced that Nvahbulai “Kosh” Quisiah, 44, of Philadelphia, PA was sentenced to five years in prison, three years of supervised release and ordered to pay $215,941 in restitution by United States District Court Judge Nitza I. Quiñones Alejandro for multiple fraud and tax offenses.
In February 2020, the defendant was found guilty after a jury trial on charges of preparing false tax returns, aggravated identity theft, wire fraud and engaging in a conspiracy to defraud the United States.
According to evidence presented at trial, Quisiah was the owner and operator of First Premier Tax Service (also d/b/a Kosh & Associates), a Philadelphia-based tax preparation business on Woodland Avenue. From 2010 through 2017, the defendant prepared tax returns for clients that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents for tax years 2009 through 2016. This resulted in inflated tax refunds for his clients to which the clients were not entitled. Quisiah also bought and sold the personal identifying information of children in order to falsely claim the children as dependents on tax returns.
“Today’s sentence is an appropriate reminder to tax preparers that attempting to defraud the federal government will result in serious consequences,” said U.S. Attorney McSwain. “And here, the defendant’s actions will have ramifications for years to come because he stole the identities of children as part of his fraud. My Office will continue to work with our federal partners here and in Washington D.C. to prioritize the investigation and prosecution of tax crimes.”
“As today’s sentencing makes clear, corrupt tax preparers who falsify tax returns, and particularly those who exploit stolen minors’ identities to do so, will not go unpunished,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.
“When return preparers put honest taxpayers and unsuspecting individuals at risk for a quick dollar, they can count on IRS-CI being on their tail,” said Don Fort, Chief, IRS Criminal Investigation. “Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers like Quisiah, who falsely told taxpayers they were eligible for inflated tax refunds that they were not entitled to receive.”
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Philadelphia Return Preparer Sentenced to Five Years in Prison for Tax FraudRead the Press Release
A Philadelphia, Pa, tax return preparer was sentenced to 60 months in prison today for conspiring to defraud the United States, preparing false client tax returns, wire fraud, and identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
“As today’s sentencing makes clear, corrupt tax preparers who falsify tax returns, and particularly those who exploit stolen minors’ identities to do so, will not go unpunished,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.
“Today’s sentence is an appropriate reminder to tax preparers that attempting to defraud the federal government will result in serious consequences,” said U.S. Attorney McSwain. “And here, the defendant’s actions will have ramifications for years to come because he stole the identities of children as part of his fraud. My office will continue to work with our federal partners here and in Washington D.C. to prioritize the investigation and prosecution of tax crimes.”
According to the evidence presented at trial, Nvahbulai Quisiah owned and operated First Premier Tax Service, a tax return preparation business in Philadelphia. From 2010 through 2017, Quisiah falsified clients’ tax returns by claiming false dependents based on stolen minors’ identities, as well as false itemized deductions and business losses in order to increase the refunds paid by the IRS.
In February 2020, a federal jury found Quisiah guilty on all counts.
In addition to the term of imprisonment, U.S. District Judge Nitza I. Quiñones Alejandro ordered Quisiah to serve three years of supervised release and to pay $215,941 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ann M. Cherry of the Tax Division and Assistant U.S. Attorney Anthony Wzorek, who prosecuted the case.
Owners of South Bay Businesses Sentenced to Prison for Investment Fraud Conspiracy and Related CrimesRead the Press Release
SAN JOSE –Jennifer Yang was sentenced to 46 months in prison for her role—and Daniel Wu, her business partner, was sentenced to 24 months in prison for his role—in a conspiracy to commit mail fraud and visa fraud along with a number of related crimes, announced United States Attorney David L. Anderson; U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman; and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following a trial in which the defendants were found guilty of crimes related to a scheme to defraud foreign investors in connection with the United States’ “EB-5” immigrant visa program. The EB-5 program allows individuals to apply for permanent residence in the United States if they invest a substantial sum of money in a new commercial enterprise, enabling that business to create at least ten jobs in this country.
After the four-week trial in this case, the jury found that Yang, 52, of Palo Alto, and Wu, 56, of Las Vegas, submitted to the government fraudulent visa applications that claimed they had used investor money to create the required number of jobs when, in fact, the defendants had misused investor money and failed to create the jobs that they claimed.
“The EB-5 program is intended to create jobs and spur investment. The investors in this program should not suffer fraud,” U.S. Attorney Anderson stated. “Yang and Wu broke their promises to investors and lied to the government. They will now spend time in prison to pay for their crimes.”
“The Diplomatic Security Service (DSS) is pleased with this successful prosecution. These hard-fought convictions send a clear message that criminals who attempt to exploit the U.S. visa process for illegal profit will be punished,” said Special Agent in Charge Perlman. “DSS, alongside our federal partners, is committed to rooting-out and prosecuting criminal enterprises involving U.S. travel documents.”
“Fraudulent schemes like these threaten our National Security and public safety,” said Special Agent in Charge King. “They also have substantial impacts on the victims of these callous crimes. HSI special agents work diligently to not only protect National Security interests, but also the victims of fraud.”
Evidence at trial showed that Yang, a lawyer and licensed member of Bar of the District of Columbia, held herself out as a legal specialist for persons interested in applying for EB-5 visa benefits. Yang and Wu solicited six- and seven-figure investments from foreign individuals interested in lawful permanent residency in the United States, promising those individuals that their investments would be used to create jobs and qualify them for EB-5 visas. Nevertheless, instead of using the investors’ money to create jobs as promised, the evidence at trial showed that the defendants diverted the money for other purposes including personal expenditures such as the purchase of cars, stays in luxury hotels, college tuition for a family member, and the cash purchase of a $2.5 million house for Yang and her family. When it came time to submit visa applications on behalf of the investor victims, Yang and Wu falsely represented that the money had been used properly and the jobs had been created. In some cases, the false information about bogus job positions was created using the personal identifying information of third parties without those individuals’ knowledge or consent. Between 2007 and 2016, the defendants filed fraudulent EB-5 visa petitions for at least seven foreign investors who supplied Yang and Wu with approximately six million dollars intended for use as EB-5 investments.
A federal grand jury indicted Yang and Wu on October 19, 2017, charging both with one count of conspiracy to defraud the United States and to commit visa fraud, mail fraud, and aggravated identity theft, all in violation of 18 U.S.C. § 371; three counts of visa fraud, in violation of 18 U.S.C. § 1546(a); two counts of mail fraud, in violation of 18 U.S.C. § 1341; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. In addition, Yang was charged with two counts of money laundering, in violation of 18 U.S.C. § 1957. The jury convicted Yang and Wu of mail fraud, visa fraud, and conspiracy to commit these and other offenses.
In addition to the prison terms, Judge Koh ordered the defendants to pay $5,951,813.00 in restitution and to serve three years of supervised release following their prison terms.
Assistant U.S. Attorneys Patrick Delahunty and John Bostic are prosecuting the case with the assistance of Lakisha Holliman, Mimi Lam, Susan Kreider, and Tong Zhang. The prosecution is the result of an investigation by the United States Department of State, Diplomatic Security Service, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Citizenship and Immigration Services Fraud Detection and National Security Office.
Operation Shutdown Corner Update: Beckley Man Sentenced to More Than 7 Years for Federal Drug and Gun CrimesRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced to federal prison for his participation in a drug trafficking organization (DTO) operating between California and Raleigh County, announced United States Attorney Mike Stuart. Christopher Redden, 31, of Beckley, was sentenced to 87 months in prison, to be followed by three years of supervised release, for conspiring to distribute a quantity of methamphetamine and for being an unlawful user in possession of a firearm.
“Operation Shutdown Corner took down 17 drug traffickers who were spreading their poisons across southern West Virginia,” said United States Attorney Mike Stuart. “One by one they are being sent to prison for their crimes.”
Redden previously admitted that between January 2019 and September 17, 2019, he participated in the DTO by working with others to distribute methamphetamine and heroin in the Southern District of West Virginia. During this time period, Redden admitted to obtaining approximately 50 grams of methamphetamine a month and a quantity of heroin that he intended to redistribute. Redden admitted that at times he was fronted the drugs, or given drugs without paying for them, and then sold the drugs for profit to pay back the supplier. Other times he admitted to paying for the drugs up front. Additionally, Redden admitted that on September 18, 2019, when he was arrested, he was in possession of a Taurus, model G2C, 9mm semi-automatic pistol that he had received as payment for methamphetamine. He also admitted that at the time he possessed the firearm he knew he was an unlawful user of controlled substances and therefore prohibited from possessing any firearms.
Operation Shutdown Corner was a joint investigative effort of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess 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. 5:19-cr-00312 and Case No. 5:19-cr-00237.
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Oklahoma City Man to Serve 15 Years in Federal Prison for Operating Illegal Marijuana Trafficking OrganizationRead the Press Release
Oklahoma City - TOMMY SAVANH NAMMIXAY, 41, of Oklahoma City, has been sentenced to serve a federal prison term of 180 months for conspiracy to distribute marijuana and money laundering, announced U.S. Attorney Timothy J. Downing.
According to an Indictment filed on June 19, 2019, Nammixay was charged with conspiring with others to distribute marijuana, possession with intent to distribute marijuana, maintaining a drug involved premises, money laundering, and being a convicted felon unlawfully in possession of a firearm. It was alleged that Nammixay was the head of an organization that illegally imported marijuana from illegal grow operations in Colorado Springs to Oklahoma City where it was further illegally distributed across Oklahoma. The organization maintained stash houses in south Oklahoma City where the marijuana was brought for repackaging and re-distribution. When Nammixay and other co-defendants were arrested on May 20, 2019, agents seized marijuana 100 pounds of marijuana, over $100,000 in cash, and 45 firearms.
On January 13, 2020, Nammixay pleaded guilty to drug conspiracy and money laundering. In addition, Nammixay agreed to the forfeiture of the 45 firearms and cash along with a house located on N.W. 14th Street and multiple vehicles used by the organization. As part of the plea agreement, Nammixay also stipulated that he was responsible for importing between 1,000 and 3,000 kilograms of marijuana during the course of the conspiracy.
Earlier today, U.S. District Court Judge Scott L. Palk sentenced Nammixay to serve 180 months in prison, followed by four years of supervised release when he completes his prison term. In announcing Nammixay’s sentence, Judge Palk emphasized Nammixay’s prior criminal history, which included a prior federal drug trafficking conviction, as well as his role as the leader and organizer of the group.
Eight of Nammixay’s co-defendants have already been sentenced:
- Terry Browne, 34, of Cleveland, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
- Lawrence Harden, 34, of Broken Arrow, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
- Johnnie Vinavong, 42, of Oklahoma City, was sentenced to 37 months in prison on June 3, 2020.
- Adam Barnhart, 37, of Oklahoma City, was sentenced to 24 months in prison on June 5, 2020.
- Nathan Belcher, 23, of Norman, was sentenced to 12 months and one day in prison, on June 5, 2020.
- Iliana Macias, 30, of Oklahoma City, was sentenced to 12 months and one day in prison, on June 5, 2020.
- Ralph Golden, 60, of Oklahoma City, was sentenced to 60 months probation on June 5, 2020.
- Andrew Eaves, Sr., 49, of Purcell, was sentenced to 36 months probation on July 23, 2020.
This case is the result of an investigation by the Drug Enforcement Administration’s Oklahoma City District Office, with assistance from the City of Norman Police Department, IRS Criminal Investigations Division, Canadian County Sheriff’s Department, Homeland Security Investigations Oklahoma City Office, District 21 Task Force, Oklahoma Highway Patrol, and DEA offices in Colorado Springs and Tulsa. Assistant United States Attorneys’ Thomas Snyder and David Petermann prosecuted the case.
Ohio Woman Sentenced to Five Years for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – An Ohio woman was sentenced to federal prison for her role in a drug trafficking ring, announced United States Attorney Mike Stuart. Danielle Seagraves, 43, was sentenced to 60 months in prison, followed by four years of supervised release, for possessing methamphetamine with the intent to distribute.
“An Ohio woman and 33 grams of meth. This investigation removed a large amount of meth from Jackson County,” said United States Attorney Mike Stuart. “We always have and we always will hold drug dealers accountable.”
Seagraves previously admitted that on April 18, 2017, she had in her possession approximately 33 grams of methamphetamine that she intended to sell to individuals in and around Ripley. Before she could complete any drug transaction, officers with the Jackson County Sheriff’s Department and the Drug Enforcement Administration (DEA) arrested Seagraves and seized the methamphetamine.
The Jackson County Bureau of Investigation, comprised of deputies from the Jackson County Sheriff's Department and officers with the Ravenswood and Ripley Police Departments, worked closely with the West Virginia State Police, the Parkersburg Narcotics Task Force and the Drug Enforcement Administration (DEA) to conduct the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Kristin F. Scott 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-00104.
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O'Fallon, IL Bookkeeper Indicted for Defrauding Client Out of More Than $1 MillionRead the Press Release
A federal grand jury for the Southern District of Illinois has returned a ten-count indictment charging Kathleen M. Dvorak, 60, of O’Fallon, Illinois, with conducting a large, multi-year fraud scheme. The indictment alleges that from 2012 through 2019, while working as a private bookkeeper, Dvorak embezzled more than $1 million from her client-victim in two primary ways: (1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and
(2) by taking large amounts of cash back for herself when she deposited checks payable to the victim into his bank accounts. According to the indictment, Dvorak concealed her fraud from the victim by making false entries into his QuickBooks accounting program.The indictment charges Dvorak with five counts of wire fraud and five counts of bank fraud. Each wire fraud count carries a maximum sentence of 20 years in prison and a fine of up to
$250,000. The bank fraud charges each carry a maximum prison sentence of 30 years in prison and a fine of up to $1 million. The indictment also requests that a forfeiture judgment be entered against Dvorak in the amount of $1,523,719.08.The arraignment for Dvorak will be conducted on September 10, 2020, at 10:00 a.m. at the federal courthouse in East St. Louis, Illinois.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by agents from the FBI Springfield Division, Fairview Heights
Resident Agency. The case is being prosecuted by Assistant United States Attorney Scott
A. Verseman.Norwalk Man Sentenced to 2 Years in Federal Prison for Role in Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DONALD LAWLOR, 40, of Norwalk, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by one year of supervised release, for his role in a southern Connecticut drug trafficking organization.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, resulted in federal charges against 19 defendants and the seizure of narcotics, items used to process and package drugs for street sale, eight firearms, and more than $360,000 in cash.
Lawlor was intercepted numerous times on recorded calls assisting the drug trafficking activities of an associate who, from at least January 2017 until November 2019, was distributing heroin, fentanyl, oxycodone, other opioids, cocaine and crack in and around Bridgeport.
Lawlor was arrested on November 8, 2018. On September 11, 2019, he pleaded guilty to one count of use of a telephone to facilitate a narcotics trafficking offense.
Lawlor, who is released on a $100,000 bond, is required to report to prison on September 30, 2020.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty.
Nigerian National Pleads Guilty in Romance Fraud and Grant Fraud SchemeRead the Press Release
LEXINGTON, Ky. - A Nigerian National residing in Indianapolis, Ismaila Fafunmi, pleaded guilty in federal court on Friday, before U.S. District Judge Karen Caldwell, to money laundering charges related to a romance fraud and grant fraud scheme.
According to his plea agreement, Fafunmi admitted that, beginning in June 2018, he worked in conjunction with others, who communicated through online chats, about a scheme to defraud U.S. citizens through a romance scheme. In furtherance of this scheme, Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members. Fafunmi’s co-conspirators would engage in conversations with victims, typically women older than 50, through the dating website, making the victims believe they were in a romantic relationship with the individual in the fictitious profile.
Fafunmi and his co-conspirators would then convince these unsuspecting women to send money for various reasons. One victim of the scheme lived in Kentucky, and sent more than $200,000 to a person she believed to be her boyfriend. In another scheme, Fafunmi received funds from another female over 50, who believed she was being awarded a large grant and had to pay fees up front in order to receive her award.
In either scam, if the victims sent money by bank deposit, the conspirators would create bank accounts, in various names, to retrieve the fraudulent funds. Fafunmi and others would retain a portion of the victim funds, and then converted the remainder to wires transfers, to be sent back to co-conspirators in Nigeria. Victims also sent money in the form of postal money orders to addresses belonging to Fafunmi and his co-conspirators. Fafunmi and his co-conspriators had to convert those funds to wires to be sent back to co-conspirators in Nigeria as well.
Fafunmi was indicted in October 2019.
“Internet-based romance scams and grant fraud scams, like the ones perpetrated here, prey on vulnerable individuals and frequently consist of nothing more than promises that are too good to be true and despicable efforts to cheat people out of their money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, these scams remain prevalent; so all of us need to remain vigilant when communicating online, especially if we are asked to send money to someone we do not really know. The outstanding work of FBI personnel led to the capture and conviction of the defendant, and allows us to hold these fraudsters accountable for their crimes.”
“Nothing is as painful as a broken heart which makes romance scams particularly egregious,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “Fraudsters who target our most vulnerable citizens online will continue to draw the full attention of the FBI.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Kate Anderson.
Fafunmi is scheduled to be sentenced on November 19, 2020. He faces up to 20 years in prison and a maximum fine of $500,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation. The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation. Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.
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NASA Researcher Arrested for False Statements and Wire Fraud in Relation to China’s Talents ProgramRead the Press Release
A criminal complaint has been unsealed today, charging Zhengdong Cheng, 53, of College Station, Texas, for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 10 a.m. in Houston, Texas. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“Once again, we have witnessed the criminal consequences that can arise from undisclosed participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to bring participation in these talent programs to light and to expose the exploitation of our nation and our prized research institutions.”
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“As alleged, Zhengdong Cheng knowingly deceived NASA officials about his association with Chinese owned companies and universities, willingly accepted U.S. government funding, and defrauded his university,” said Assistant Director Alan Kohler, Jr. of the FBI’s Counterintelligence Division. “The FBI is committed to aggressively pursuing those individuals who try and undercut our U.S. research institutions and government agencies by concealing their participation in Chinese talent recruitment programs and to hold them accountable for their actions.”
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program. China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
The FBI-Bryan Resident Agency and NASA-Office of Inspector General conducted the investigation with the assistance of TAMU. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Minneapolis Man Pleads Guilty to CyberstalkingRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JEFFREY COLIN PURDY, 28, to cyberstalking. PURDY entered his guilty plea this afternoon before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
According to PURDY’s guilty plea and documents filed with the court, between August 30, 2017, and February 29, 2020, PURDY used various means of interstate commerce to communicate threats to injure and kidnap. Specifically, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from PURDY, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from PURDY and eventually blocked PURDY from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, PURDY used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent, violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to PURDY. On February 29, 2020, during an interview at the Mankato Department of Public Safety, PURDY admitted to sending all the Silent Witness Reports.
This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Defendant Information:
JEFFREY COLIN PURDY, 28
Minneapolis, Minn.
Convicted:
- Cyberstalking, 1 count
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Mexican National Arrested for Being an Alien in Possession of A Firearm During Denver ProtestsRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Aurora resident and Mexican national Felix Missael Alva has been charged with being an alien in possession of a firearm. Alva made his initial appearance this afternoon where he was advised of his rights and the charge pending against him. The Denver ATF and the Denver Police Department joined in this announcement.
According to the affidavit in support of the criminal complaint, on May 30, 2020, a Denver Police detective was working in downtown Denver during demonstrations when a white Jeep stopped nearby him. The detective was approximately 10 feet from the Jeep when he saw a male passenger produce a large black semi-automatic handgun, and from the open passenger window, heard him say, “This ain't no peaceful protest.” The male pointed to the sky with his left hand and then opened fire into the air while a Denver Police Department helicopter and a news media helicopter were flying overhead. The detective heard approximately 6 to 10 gun shots. Another Denver detective and an officer were near the Jeep during this shooting and observed the passenger fire his weapon into the air. The driver of the Jeep then sped off.
On June 2, 2020, law enforcement went to an address where the white Jeep was found. The vehicle was impounded and searched pursuant to a search warrant for the Jeep. The technicians observed protest signs in the vehicle as well as a large box of artillery shell fireworks. Then on June 4, 2020, the Aurora SWAT Team executed a search warrant at Alva’s residence. The Denver detective who observed the shooting on May 30th approached Alva and recognized him as the individual who fired a handgun into the air on May 30, 2020. During the search, officers located a firearm and firearm accessories in a shed behind the residence. The firearm found on June 4, 2020 has an appearance consistent with the black semi-automatic handgun that the detective observed being fired into the air on May 30, 2020.
Law enforcement record checks revealed that Alva was not a native or citizen of the United States and that he had previously been deported from the United States. In February 2010, he was deported from the United States to Mexico pursuant to a removal order. It was determined that Alva had not made any lawful entries to the United States, and on May 30, 2020, he was present in the United States illegally. As he was not in the United States legally, he was prohibited from possessing weapons.
This case was investigated by the Denver ATF and the Denver Police Department. The defendant is being prosecuted by Special Assistant U.S. Attorney Dorothy DiPascali. The defendant is presumed innocent unless and until proven guilty.
This case is 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-mj-114.
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.
Metairie Man Sentenced to Thirty Seven Months for Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that on August 20, 2020, LEVI HERMAN (HERMAN), age 33, was sentenced by Judge Carl Barbier to (37) thirty-seven months on a one-count Indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a). Additionally, HERMAN was ordered to pay $1,900 in restitution, serve (2) years of supervised release and pay a 100.00 special assessment fee.
According to court documents, HERMAN robbed the Capital One Bank located in New Orleans, Louisiana on December 4, 2019. HERMAN presented a hand written demand note to the bank teller demanding cash and stating that he had a gun. HERMAN escaped with approximately $1,900 dollars in U.S. currency and was apprehended the next day, December 5, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Melrose Man Indicted for Unemployment Insurance ScamRead the Press Release
BOSTON – A Melrose man has been indicted in connection with his role in an unemployment insurance fraud scheme.
Alan Neal Scott, 68, was indicted on four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft. Scott was arrested and charged by criminal complaint in July 2020.
According to the charging documents, over the course of the last six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits as they were incarcerated at the time of the claims and could not have been employed as reported. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, it is alleged that the DUA sent unemployment benefits funds to several addresses connected to Scott and that the funds were deposited into accounts he controlled. The indictment also alleges that Scott submitted fraudulent pandemic unemployment insurance claims in the names of others.
The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The aggravated identity theft charges provide for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; and Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Margaret Hunter Sentenced to Eight Month’s Punitive Home Detention; Judge Recognizes her Substantial Assistance in Obtaining Husband’s Guilty PleaRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738; W. Mark Conover (619) 546-6763; and Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – August 24, 2020
SAN DIEGO – Because of her quick admission of guilt and her substantial assistance in the corruption case against her husband, Margaret E. Hunter was sentenced in federal court today to eight months of punitive home detention to be served as part of three years of probation.
The sentencing of Hunter, wife of former Congressman Duncan D. Hunter, concludes the long-running scandal in which the couple used almost $250,000 in campaign funds as their personal bank account and spent lavishly for items as inconsequential as fast food, movie tickets and sneakers; as trivial as video games, Lego sets and Playdoh; as mundane as groceries, dog food, and utilities; and as self-indulgent as luxury hotels, overseas vacations, and plane tickets for themselves, their family members, and their pet rabbits, Eggburt and Cadbury.
U.S. District Judge Thomas Whelan noted Margaret Hunter’s “remarkable cooperation” in handing down the unusual sentence. For the home detention portion of the sentence, he restricted all movement outside the home except for employment, education, religious services, mental health and substance abuse counseling, and court proceedings. He banned her from seeking employment with fiduciary responsibility.
“Margaret Hunter promptly accepted responsibility for her role in this campaign finance fraud,” said Assistant U.S. Attorney David Leshner, chief of the Criminal Division at the U.S. Attorney’s Office. “Her sentence reflects her lesser culpability relative to her husband, the important part she played in securing her husband’s guilty plea, and her role in reinforcing the bedrock principle underlying our democracy that the politicians who write our laws do not stand above them.” Leshner praised prosecutors Phil Halpern, Emily Allen and Mark Conover as well as the Federal Bureau of Investigation for their tireless pursuit of justice in this case.
“Public corruption is a mission priority for the FBI,” said Omer Meisel, Acting Special Agent in Charge of the FBI San Diego Field Office. “We are dedicated to focusing our efforts, resources and expertise to these complex and sensitive investigations because public officials who use their position for private gain undermine the integrity of government and erode the public’s trust in the very framework of our democracy. Today's sentencing marks the end of a four-year FBI investigation which resulted in felony convictions of former Congressman Duncan Hunter and his wife, Margaret Hunter, for lying and stealing from Hunters’ constituents and undermining the public's trust.”
In recommending punitive home detention, federal prosecutors contrasted Margaret Hunter’s case with that of her husband – who received an 11-month custodial sentence. They noted that rather than admit guilt and resign his seat in April 2016 when his conduct was originally questioned, Duncan Hunter initially sought to deny the misconduct, and then to blame his wife for his own misdeeds. After the latter tactic garnered almost universal condemnation, Duncan Hunter then began his relentless and unceasing attacks on the justice system in general, and the Department of Justice and the FBI in particular.
By contrast, government prosecutors noted that Margaret Hunter admitted her guilt early, quickly entered a guilty plea, and cooperated with the United States in its investigation into her husband’s criminal conduct. According to the government’s sentencing memo, in doing so, she “did much to establish that the rule of law triumphed over dangerous tropes that the Department of Justice was falsely targeting political figures.”
The sentencing recommendation also accounted for the fact that Margaret Hunter’s substantial cooperation came at a great cost to herself and her family. The prosecution observed that her decision to cooperate against her husband (the father of her three children) was a wrenching and difficult one, which effectively pitted herself against the rest of the extended Hunter family. The personal cost of this decision resulted in severe psychological and emotional consequences, including a fractured marriage, intense public scrutiny, and the arduous of task of rebuilding her life as a single mother in a hostile family environment.
Finally, the United States remarked in its sentencing memo that the individual most responsible for the instant offense was undeniably Duncan Hunter. Although Margaret Hunter admitted that she played an active and very substantial role in the theft of campaign funds, she did so only with the concurrence, encouragement, and support of the then-Congressman. Apart from Duncan Hunter’s own theft of campaign funds, it remains uncontested that—time and time again, over many years—he placed his wife in a position to steal campaign funds with full knowledge that she would use those funds to support a lifestyle that their family otherwise could not afford. As early as December 2009, he directed his campaign treasurer to get his wife a campaign credit card, even though at the time she had absolutely no official role with the campaign. And, after receiving multiple warnings from multiple sources that his wife was stealing campaign funds, Hunter allowed her illegal conduct to escalate.
DEFENDANT Case Number 18cr3677-W
Margaret E. Hunter Age: 45 La Mesa, CA
SUMMARY OF CHARGE
Conspiracy to Steal Campaign Funds – Title 18, U.S.C., Sec. 371
Maximum Penalty: Five years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Man Arrested on Federal Criminal Charge for Allegedly Robbing Delivery Truck in Oak ParkRead the Press Release
CHICAGO — A man has been arrested on a federal criminal charge for allegedly robbing a United Parcel Service delivery truck in Oak Park last week.
DARIUS D. YOUNG was one of three individuals who robbed the UPS truck on the afternoon of Aug. 21, 2020, according to a criminal complaint filed in U.S. District Court in Chicago. The driver of the truck had parked in the 1100 block of South Highland Avenue to make a delivery when a vehicle pulled up behind it, the complaint states. The driver heard a male voice approach him from behind and state words to the effect of, “Get on the ground, stay down,” the complaint states. The driver laid face down in the street behind the truck, looking up long enough to observe what appeared to be the handle of a handgun in the waistband of one of the offenders, the charges allege. Young and the two others allegedly removed numerous boxes from the UPS truck and drove off.
Young, 24, of Berwyn, is charged with one count of robbery. He is scheduled to appear for a detention hearing on Friday at 11:00 a.m. before U.S. Magistrate Judge Sheila M. Finnegan.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and LaDon Reynolds, Chief of the Oak Park Police Department. The government is represented by Assistant U.S. Attorneys Albert Berry III and Charles W. Mulaney.
The federal charge was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in the Chicago area to help state and local officials fight violent crime, particularly firearm-related offenses.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Macon Firearms Trafficker Enters Guilty Plea in Project Guardian InvestigationRead the Press Release
MACON, Ga. – Two Macon-area convicted felons went before a federal judge this week, charged in separate Project Guardian cases, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Donta Booze, 39, of Macon was sentenced to 63 months on Wednesday, August 19 by U.S. District Judge Tilman “Tripp” Self after pleading guilty to one count possession of a firearm by a convicted felon. Keon Hendley, 35, of Macon entered a guilty plea to one count possession of a firearm, which carries a maximum ten years in prison, and one count possession of cocaine, which carries a maximum twenty years in prison, on Thursday, August 20 before Judge Self. A sentencing date for Hendley has not been scheduled. There is no parole in the federal system.
ATF agents, working with a confidential informant (CI), negotiated the purchase of large amounts of firearms from Hendley, a convicted felon, on four separate occasions in 2019 at various locations across Macon. In total, 23 firearms were obtained from Hendley during this operation, along with methamphetamine and cocaine. In a separate case, Booze was taken into custody on April 28, 2018, after Bibb County Sheriff’s Officers attempted to stop Booze for speeding and an improper tag. Booze threw a stolen firearm out of the vehicle before eventually stopping. It is illegal for Booze, who has a lengthy criminal history, to possess a firearm.
“Project Guardian is the Department of Justice’s smart strategy to enforce federal firearms laws and ultimately reduce gun violence in our communities. Our office is working closely with our federal and local law enforcement partners to crack down on convicted felons in possession of firearms, ensuring those found breaking federal law are prosecuted and held accountable,” said U.S. Attorney Charlie Peeler. “I want to thank the ATF for their excellent work investigating gun trafficking and illegal firearm cases in Macon and across our district.”
“ATF is committed to working with our local, state, and federal partners to investigate, arrest and prosecute those individuals who use, or unlawfully enable others to use, firearms in the commission of violent crimes,” said Assistant Special Agent in Charge Brent Quinn. “Project Guardian is directly in line with ATF’s core mission and we are proud to be a part of it.”
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Will R. Keyes prosecuted the Booze case and Assistant U.S. Attorney Charles Calhoun is prosecuting the Hendley 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.
Lumberton Man Sentenced to 10 Years for Drug and Gun CrimesRead the Press Release
RALEIGH, N.C. – A Lumberton man was sentenced today to 120 months in prison for possessing with the intent to distribute crack cocaine and cocaine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
According to court documents, James Calvin Breeden, 33, who is a convicted felon, was the passenger of a vehicle stopped by deputies with the Robeson County Sheriff’s Office as they were attempting to serve an outstanding warrant. When deputies approached the vehicle, they observed Breeden in possession of a Crown Royal bag that contained approximately 80 grams of crack cocaine and 38 grams of cocaine. He also possessed a loaded handgun inside of his waistband.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated the case and Assistant U.S. Attorneys Chad Rhoades and Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00117-BR.
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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.
Lauderdale County Man Sentenced to 10 Years for Possession of Meth and GunRead the Press Release
Memphis, TN – Daniel Heatherly, 39, of Ripley, Tennessee, has been sentenced to 120 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm in the commission of a drug trafficking crime. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, the Lauderdale County Sheriff’s Office was investigating Heatherly for distribution of methamphetamine. On February 11, 2019, a Lauderdale County Sheriff's deputy stopped Heatherly as he was driving. The deputy was aware that Heatherly’s license was revoked due to a prior DUI conviction. The deputy asked to search the vehicle, and Heatherly consented.
The center console compartment contained a loaded handgun, meth pipe, two clear plastic baggies with meth rocks inside, and scales. Additional methamphetamine was found behind the passenger seat, along with 176 grams of marijuana. Heatherly denied knowing anything about the items.
The methamphetamine was sent to the Drug Enforcement Administration (DEA) for analysis and testing, the results of which confirmed a total weight of 9.5 grams of methamphetamine with a 100% purity level.
On August 20, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Heatherly to 120 months in federal prison followed by four years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "This offender presented a double threat of serious bodily injury and death: a drug dealer in possession of a loaded firearm while distributing a highly addictive substance on the streets. Meth distribution+gun=a federal prison sentence that protects the community by incapacitating a dangerous offender, and achieves justice by providing proper punishment without the sanctuary of parole."
The Drug Enforcement Administration (DEA) and the Lauderdale County Sheriff’s Office investigated this case.
Special Assistant U.S. Attorney Sean Hord prosecuted this case on behalf of the government.
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Knox County Man Convicted of Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Corbin, Ky., man was convicted Friday, by a federal jury sitting in London, of armed methamphetamine trafficking and possession of a firearm by a convicted felon.
After two hours of deliberation, following a three-day trial, the jury convicted John Helton of conspiracy to distribute 50 grams or more of methamphetamine, possessing a firearm in furtherance of that conspiracy, possessing with the intent to distribute 50 grams or more of methamphetamine, and possessing a firearm by convicted felon. The jury acquitted Helton of possessing a firearm found at his mother’s residence.
The evidence at trial established that, on June 9, 2019, deputies with the Knox and Laurel County Sheriff’s Offices searched the residence that Helton shared with his wife, Anita, seizing over 300 grams of crystal methamphetamine and four firearms, including three that were loaded. Helton then directed his wife to go to his mother’s residence, to get money to bond him out of jail. When law enforcement searched that residence, they found over $8,000 secreted in a closet. A search of a child’s playhouse on the property revealed over 800 grams of additional crystal methamphetamine and another firearm. The Kentucky State Police had previously made a controlled purchase of methamphetamine that was arranged with Helton but delivered by his wife.
Anita Helton previously pled guilty to conspiring with Helton to distribute methamphetamine and possessing firearms in furtherance of that offense. Her sentencing is scheduled for November 17, 2020.
Helton is scheduled to be sentenced on January 5, 2021. He faces a statutory minimum of 20 years in prison. Under federal law, Helton must serve 85 percent of his sentence. Helton’s minimum sentence was enhanced as a result of a previous felony conviction for manufacturing methamphetamine.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; Rodney Brewer, Commissioner, Kentucky State Police; Sheriff Mike Smith, Knox County Sheriff’s Department; and Sheriff John Root, Laurel County Sheriff’s Department, jointly announced the verdict.
The investigation was conducted by the DEA, KSP, the Knox County Sheriff’s Office, and the Laurel County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Kenner Man Sentenced to 60 Months for Violating the Federal Controlled Substances Act and the Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On August 20, 2020, United States District Judge Carl Barbier sentenced JAMES CALLERO, age 33, a resident of Kenner, to (60) sixty months in the Bureau of Prisons for conspiring to distribute heroin and conspiring to possession firearms in furtherance of drug trafficking, announced U.S. Attorney Peter G. Strasser.
CALLERO was charged in a six-count indictment with a conspiring to distribute heroin and various firearms offenses. He pleaded guilty to the heroin conspiracy and a firearms conspiracy, admitting that he was distributing heroin with his co-defendant, DOMINIC LEE, and that they shared firearms to protect their drug trafficking activities. CALLERO will serve 60 sixty months in prison to be followed by (4) four years of supervised release
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
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Kankakee Liquor Store Owners Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
URBANA, Ill. – A Bourbonnais, Ill., couple, Raymond and Angie Adamee, owners of a Kankakee liquor store, were each sentenced today to 12 months in prison, followed by 12 months of home confinement for under-reporting income in filed tax returns. Both were ordered to pay restitution to the IRS and the Illinois Department of Revenue in the amount of $642,736.
The court ordered that Raymond Adamee, 53, serve his sentence first and was ordered to surrender to the federal Bureau of Prisons on Dec.1, 2020. Angie Adamee, 51, was ordered to report to the federal Bureau of Prisons on Jan. 4, 2022.
The couple each pleaded guilty on Feb. 10, 2020, to under-reporting gross receipts of their business, Kankakee Plaza Liquors, 1623 E. Court St., Kankakee, Ill., for the calendar years 2012 through 2016, by approximately $1.6 million.
The couple has operated the retail liquor store, predominately as a cash business, since 1989. The under-reporting of the approximate $1,621,779 in income received by the business and its owners, resulted in their failure to pay $409,117 in federal income tax that was due and owing. The under-reporting also resulted in failure to pay $233,619 in income tax, replacement tax, and sales and use tax to the State of Illinois.
In 2017, the IRS uncovered the tax fraud when the couple used a business broker to list KPL for sale for $600,000. An IRS-Criminal Investigation Division undercover agent contacted the broker to request more information about KPL and learned that KPL’s reported income to the IRS was substantially lower than represented in the sale advertisement. When IRS-CI agents executed a search warrant at the couple’s home and business location on Nov. 29, 2017, they found tens of thousands of dollars in cash kept in a safe at the their residence.
The Internal Revenue Service, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
International Sex Trafficker Sentenced to More Than 17 Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MICHAEL MORRIS 66, to 208 months in prison for his role in operating a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States. MORRIS was sentenced by Senior Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota.
Following a six-week trial, on December 12, 2018, a federal jury convicted MORRIS and four other defendants for their roles in operating the sex trafficking enterprise. Thirty-one defendants pleaded guilty prior to the 2018 trial. To date, 29 defendants have been sentenced.
“Sex trafficking continues to be a repugnant local, national, and international crime that preys on vulnerable populations,” said United States Attorney Erica H. MacDonald. “This case demonstrates the dedication and relentlessness of law enforcement across multiple jurisdictions to bring those who commit these crimes to justice.”
As proven at trial, the sex trafficking organization coerced hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle, and Austin. The trafficking victims were forced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand. Once in the United States, the victims were sent to houses of prostitution, including the three that MORRIS ran in southern California, where they were forced to have sex with strangers – every day –having sex with up to ten men a day. The victims were isolated from the outside world, and their families in Thailand were threatened.
As proven at trial, the organization also engaged in widespread visa fraud to facilitate the international transportation of the victims and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization.
Multiple agencies assisted in this investigation over the past five years including: Homeland Security Investigations; the Criminal Investigation Division of the IRS; the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section; the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit; the St. Paul Police Department; the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force; the Anoka County Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the State Department Diplomatic Security Service; and the International Organized Crime Intelligence and Operations Center (IOC-2). United States Attorney MacDonald also thanks the Thai Community Development Center for the support and advocacy they have done on behalf of the victims of this sex trafficking organization.
Assistant United States Attorneys Melinda Williams, Laura Provinzino, and Craig Baune are prosecuting the case.
This case is filed as United States v. Michael Morris, et al., 17-cr-107 (DWF/TNL) and United States v. Sumalee Intarathong, et al., 16-cr-257 (DWF/TNL).
Defendant Information:
MICHAEL J. MORRIS, 66
a/k/a “Bill”
Seal Beach, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
Sentenced:
- 208 months in prison
- 5 years supervised release
- $750,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Indictment: Kansas Man Planted Poppies in Effort to Manufacture HeroinRead the Press Release
TOPEKA, KAN. – A Kansas man was charged in a federal indictment unsealed today with growing thousands of poppy plants at his home in Clay County in an effort to manufacture heroin, U.S. Attorney Stephen McAllister said.
Matthew Pfeiffer, 43, Morganville, Kan., is charged with one count of attempting to manufacture opium, one count of manufacturing thebaine (a constituent of opium) and one count of using a telephone in furtherance of drug trafficking.
The indictment alleges that the investigation began when the Drug Enforcement Administration and the Riley County Police Department received information that Pfeiffer was growing poppies and planning to manufacture heroin. On June 4, 2020, law enforcement officers served a search warrant at Pfeiffer’s home in Morganville, where they seized more than 4,000 poppy plants. The poppies were identified as Papaver somniferum, a plant from which opium is derived.
“Opium poppies are an unfamiliar sight in Kansas,” McAllister said, “and we want to keep it that way. It is unlawful to grow poppies for the purpose of producing opiates.”
“The cultivation of poppy plants, for the purpose of making opium paste for heroin production is extremely rare in the United States,” said Special Agent in Charge William J. Callahan, head of the St. Louis Division, which covers Kansas. “The DEA along with our law enforcement partners, thwarted this attempt to produce heroin, and we will continue to stand in the way of violators who seek to harm our communities. This case should serve as an example and a warning that the DEA is as committed to preventing further harm caused by the opioid crisis in rural America, as we are in major cities.”
If convicted, Pfeiffer could face a penalty of up to 20 years in federal prison and a fine up to $1 million on the charges of attempting to manufacture controlled substances, and up to four years and a fine up to $250,000 on the telephone count.
The Drug Enforcement Administration and the Riley County Police Department led the investigation with assistance from the Clay County Sheriff’s Department, the Kansas Bureau of Investigation, the Jackson County Sheriff’s Department, the Shawnee County Sheriff’s Department and the Kansas Highway Patrol and the U.S. Marshals Service.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.