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Thursday 2 July 2020
Man Charged in Federal Court for Attempting to Tear Down Statue of Andrew Jackson in Lafayette Square Amid ProtestsRead the Press Release
WASHINGTON – Jason Charter, 25, of Washington, D.C., was arrested and charged by Criminal Complaint today with destruction of federal property, announced Michael R. Sherwin, Acting U.S. Attorney; James A. Dawson, Special Agent in Charge of the Criminal Division of the Washington Field Office of the Federal Bureau of Investigation (FBI); and Gregory T. Monahan, Acting Chief of the United States Park Police (USPP).
The complaint alleges that on June 20, 2020, Charter, together with other individuals, destroyed the Albert Pike statue in Northwest, Washington, D.C., by pulling it from its base and setting it on fire. The complaint alleges that Charter was captured on video dousing the statue with a flammable liquid and then igniting it as it lay on the ground. Charter is depicted on video using the fire to light a cigarette.
The complaint further alleges that on June 22, 2020, Charter, together with other individuals, damaged and attempted to tear down the statue depicting Andrew Jackson at the Battle of New Orleans, located in Lafayette Square. The complaint further alleges that Charter was captured on video climbing up onto the statue and affixing a rope to the statue that was then used to try to pull the statue down. Three other men were previously charged with also destroying the Jackson statue.
The defendant appeared today before United States Magistrate Judge Deborah A. Robinson of the United States District Court for the District of Columbia, where he was released pending further court proceedings. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“While the United States Attorney's Office for the District of Columbia is committed to protecting the First Amendment right of individuals to protest peacefully, today’s additional arrest in connection with the violent destruction of federal property is a testament to our further commitment to prosecuting those criminal offenders who threaten not only property, but ultimately the safety of all through their violent acts,” said Acting U.S. Attorney Michael R. Sherwin.
“These individuals chose to engage in unlawful activity while among fellow citizens who were conducting lawful and Constitutionally protected protest activities,” said James A. Dawson, Special Agent in Charge of the Washington Field Office’s Criminal Division. “The FBI is dedicated to protecting peaceful protesters from those threatening their safety with violence and destruction of property, and where there is a federal nexus, we will investigate and hold the wrongdoers accountable.”
“This arrest is an example of excellent investigative work by the United States Park Police Criminal Investigations and the continued partnership with the FBI and the U.S. Attorney’s Office. The U.S. Park Police remains committed to protecting our icons, memorials, and park resources” said United States Park Police Acting Chief Gregory T. Monahan.
In announcing the charges, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Acting Chief Monahan commended the work of the FBI agents and USPP officers who apprehended the four men and are investigating the incident. This joint investigation was conducted by the United States Park Police and the FBI Washington Field Office’s Violent Crime Task Force. Significant assistance was also provided by the Washington Metropolitan Police Department. The Violent Crime Task Force is charged with investigating acts of violence impacting the District of Columbia. Tips associated with this matter or other acts of violence can be reported to the FBI at 202-278-2000 or tips.fbi.gov.
Madera County Man Charged with Marijuana Cultivation Operation in the Sierra National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against a Madera County man for a marijuana cultivation operation that consisted of over 1,000 marijuana plants grown in the Carter Creek watershed drainage network in the Sierra National Forest in Madera County, U.S. Attorney McGregor W. Scott announced.
The five-count indictment charged Carson Shane Wilhite, 41, of Ahwahnee, with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, possessing firearms in furtherance of drug trafficking, and being a methamphetamine user in possession of firearms. According to the indictment, Wilhite was involved in the marijuana cultivation operation and, in furtherance of his drug trafficking activities, he possessed 12 firearms while using methamphetamine. The cultivation operation is alleged to have caused significant damage to the environment.
This case is the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, and the Madera County Sheriff’s Office. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy and manufacturing offense, Wilhite faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental charge and the charge of being a drug user in possession of firearms carry a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. The charge of possessing a firearm in connection with drug trafficking carries a mandatory minimum prison term of five years and a maximum term of life in prison and a $250,000 fine. The defendant faces a mandatory consecutive prison term of five years. In addition, he may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Louisiana Company Charged with Conspiracy to Defraud Government and Violate the Procurement Integrity ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, was charged on July 2, 2020 in a one-count bill of information with conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.
According to the bill of information, CAJAN WELDING & RENTALS, LTD. conspired with unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve.
If convicted, CAJAN WELDING & RENTALS, LTD. faces a maximum fine of $500,000.00, a term of probation of up to five years, and a special assessment of $400.00.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.
Louisiana Company Charged with Conspiracy to Defraud the Government and Violate the Procurement Integrity ActRead the Press Release
United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, was charged on July 2, 2020 in a one-count bill of information with conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.
According to the bill of information, CAJAN WELDING & RENTALS, LTD. conspired with unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve.
If convicted, CAJAN WELDING & RENTALS, LTD. faces a maximum fine of $500,000.00, a term of probation of up to five years, and a special assessment of $400.00.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.
Loris Armed Robber Sentenced to Five Years in Federal PrisonRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Fuquan Thompson, 52, of Loris, was sentenced to five years in federal prison after pleading guilty to a conspiracy to commit armed robbery.
Evidence presented to the court showed that on March 5, 2018, Thompson entered a store in Loris wearing a black mask, brandished a firearm, and demanded money and car keys. The store clerk gave Thompson some money and the keys to the clerk’s car, and Thompson left the store. Officers, who responded and viewed Thompson on the store’s surveillance video, found Thompson a short distance from the store. In his possession, Thompson had a firearm, as well as the car keys and money he had taken from the store. Thompson ultimately pleaded guilty.
Chief United States District Judge R. Bryan Harwell sentenced Thompson to 60 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department.
This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Long Beach Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Gulfport, Mississippi – David Gray, 39, of Long Beach, Mississippi, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA).
On May 14, 2019, Gray sold over 19 grams of methamphetamine, with a purity of approximately 96%, to an individual. On June 18, 2019, Gray sold over 54 grams of 100% pure methamphetamine to an individual.
On January 15, 2020, Gray was charged in a federal criminal indictment with possession with intent to distribute methamphetamine.
Gray will be sentenced on September 30, 2020, by Judge Guirola, and faces a maximum penalty of life imprisonment and a $10,000,000 fine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Shundral Cole.
Local man who attempted to entice 50 boys gets significant prison sentenceRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has been ordered to federal prison for producing child pornography via social media, announced U.S. Attorney Ryan K. Patrick.
Lucas Antonio Nord pleaded guilty Nov. 5, 2019.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Nord to serve a 200-month sentence. At the hearing, the court heard how Nord used social media to contact minor children for the purposes of having sexual encounters and for requesting nude images of them. Before handing down the sentence, the court heard about two additional victims in other States.
Nord was further ordered to pay $3000 in restitution to a known victim and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In April 2019, law enforcement learned Nord had contact with a 14-year-old minor living in Florida. He had asked the child to send him photographs of his genitalia via social media messaging.
Nord told authorities he also had actual physical sexual contact with at least two children and has attempted to solicit more than 50 boys on various social media platforms.
Nord sent the children photographs and videos of his own genitalia and sexual acts as well as videos containing commercially-produced pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Levy County Man Sentenced to 19 Years in Prison for "Sextortion" of Washington Teen and Possession of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA - Dustin Lee Norman, 23, of Trenton, Florida, was sentenced to 18 years in federal prison after pleading guilty on March 3, 2020, to Sexual Exploitation of a Child, Possessing Child Pornography, and Sending Interstate Transmissions of Extortionate Communications. The Court also ordered lifetime-supervised release following Norman’s prison term and that he register as a sex offender upon his release. United States Attorney Lawrence Keefe for the Northern District of Florida announced the sentence.
“The Justice Department is committed to combating the sexual exploitation of children,” said U.S. Attorney Keefe. “The community plays a critical role in protecting our loved ones as well. We ask that you vigilantly monitor your children’s cell phones and computer activity as well as their social media accounts, and report any suspected offenses to law enforcement. The U.S. Attorney’s Office will continue to do everything within the scope its authority to support our federal, state, and local law enforcement partners as we investigate and prosecute these offenders.”
Beginning in September 2018 through October 2018, Norman persuaded, induced, enticed and coerced a female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. Norman contacted the minor female, who resided in the state of Washington, through a social media site and engaged her in conversations of a sexual nature, during which sexually explicit photographs were sent to him. During the same time, Norman knowingly used his cell phone and the internet to extort the minor female by threatening to post the photographs she had already provided, along with information which would identify her, on Facebook unless she sent him additional, and even more explicit, photographs and videos of herself.
“The heinous acts of this defendant will have an impact on his victim for the rest of her life,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “He not only abused and exploited a vulnerable child, but he re-victimized her over and over again through the online circulation of her image. The FBI will continue to do everything in its power to find justice for innocent victims like her, but we must also work to stop child exploitation. I encourage parents and guardians to set aside time to teach their kids how to identify potential online predators and report them to law enforcement. Together, we can prevent other innocent children from being victimized.”
The case was investigated by the Federal Bureau of Investigation and the Levy County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Justin M. Keen.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release U.S. v. Dustin Lee NormanKilleen Woman Faces Federal Charge in Connection with the Disappearance of U.S. Army Specialist Vanessa GuillenRead the Press Release
Today, federal authorities filed a criminal complaint against 22-year-old Cecily Aguilar in connection with the disappearance of U.S. Army Specialist Vanessa Guillen, announced U.S. Attorney John F. Bash, U.S. Army Criminal Investigative Command (USACID) Special Agent in Charge Vanessa Neff at Fort Hood, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The criminal complaint charges Aguilar with one count of conspiracy to tamper with evidence. According to the complaint, 20-year-old U.S. Army Specialist Aaron Robinson told Aguilar that he killed a female soldier by striking her in the head with a hammer while on Ft. Hood on April 22, 2020. Robinson further admitted to Aguilar that he transferred the woman’s body off of Ft. Hood to a remote site in Bell County. Subsequently, Robinson enlisted the help of Aguilar in disposing of the dead female’s body. The complaint further alleges that at a later time Aguilar recognized the deceased, whom she helped Robinson mutilate and dispose of, as Vanessa Guillen. The remains found in Bell County have yet to be formally identified by authorities.
The complaint further states that earlier this week, Robinson shot and killed himself when confronted by police.
Upon conviction, Aguilar faces up to 20 years in federal prison and a maximum $250,000 fine. She remains in custody at this time awaiting her Initial Appearance in federal court in Waco. The hearing is expected to take place early next week.
Agents and investigators from USACID, FBI, Texas Rangers, Bell County Sheriff’s Office, Killeen Police Department, Belton Police Department, Texas Parks and Wildlife and the U.S. Marshals Service are continuing to investigate this case. Assistant U.S. Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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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.
KC Man Pleads Guilty to Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to receiving a large quantity of methamphetamine shipped to his residence and to illegally possessing firearms.
Danny Sanchez, 38, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of possessing methamphetamine with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime.
Federal investigators intercepted a 23-pound package shipped from San Diego, California, on Aug. 10, 2018, that was addressed to Sanchez’s residence. Officers conducted a controlled delivery of the package, which contained more than 5.4 kilograms of methamphetamine. After removing a portion of the methamphetamine, an officer posing as a delivery driver left the package on Sanchez’s front porch. When Sanchez carried the package inside, officers executed a search warrant and entered his residence.
Inside the residence, officers found the partially opened box next to an I.O. Inc. 7.62 x 39 caliber semi-automatic rifle. Officers also found a Glock 9mm semi-automatic handgun in Sanchez’s vehicle.
Sanchez told officers that he received other packages containing methamphetamine, which he delivered for $2,000 per package.
Under federal statutes, Sanchez is subject to a mandatory minimum sentence of up to 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Drug Enforcement Administration and the Missouri Western Interdiction and Narcotics Task Force (MoWIN).
Justice Department Settles Lending Discrimination Lawsuit with Maryland Used Car DealershipRead the Press Release
The Justice Department today announced a settlement of its race discrimination lawsuit against Guaranteed Auto Sales, a used car dealership in Glen Burnie, Maryland. The agreement also settles the United States’ claims against the dealership’s owner and manager, Kelly Ann West and Robert Chesgreen.
The settlement resolves claims that Guaranteed Auto Sales discriminated against African Americans in violation of the Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars. The agreement, which is subject to court approval, was filed today in the U.S. District Court for the District of Maryland.
The settlement requires the dealership to implement a number of specific practices to ensure that loan terms are offered to customers on a nondiscriminatory basis. Specifically, defendants will develop written policies to govern financing decisions, including how down payment amounts are calculated and whether the down payments may be made in more than one installment; post and distribute nondiscrimination notices to potential purchasers; attend training on the requirements of the Equal Opportunity Act; and engage in ongoing record keeping and reporting to the United States.
“When people borrow money to buy a car, a house, or anything else, they have a right to be treated fairly and without regard to their race,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The U.S. Department of Justice will not tolerate anyone who discriminates against people because of their race in deciding whether, and under what conditions, to lend them money. Our common humanity, our nation’s sense of decency, and federal law make this kind of race discrimination both un-American and illegal. Today’s settlement should send a clear message that car dealerships and other lenders must never make credit decisions based on a customer’s race. By entering into this agreement, the defendants have committed to take the steps necessary to ensure that they will provide equal treatment for borrowers of all races.”
This lawsuit, filed in September 2019, was based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices. The complaint alleged that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments.
The federal Equal Credit Opportunity Act prohibits lending discrimination based on race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing.
Jersey City Police Officer Charged with Fraud Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A Jersey City police officer was charged today with conspiring to defraud Jersey City by obtaining compensation for off-duty work that she did not perform, U.S. Attorney Craig Carpenito announced.
Gicella Sanchez, 36, of Jersey City, is charged by complaint with one count of conspiracy to defraud a local government. She is expected to appear today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
Private contractors and businesses sometimes require the services of off-duty Jersey City police officers for certain projects, including work that could obstruct the flow of traffic. The off-duty assignments were made by a Jersey City Police Department-designated coordinator for the district in which the assignment was to be carried out. Officers receiving these off-duty assignments were required to complete and provide to the coordinator a voucher that indicated, among other things, the hours worked on particular off-duty assignments.
From November 2014 through June 2016, Sanchez conspired with another Jersey City police officer who was authorized to assign off-duty work and sign vouchers. That officer – with Sanchez’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Sanchez had completed certain off-duty assignments that she never actually performed. As a result, Sanchez was compensated well over $5,000 for off-duty work she never performed.
Sanchez faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to today’s charge.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Indictment Charges 9 Individuals Connecticut to Statewide Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Norwich Police Chief Patrick J. Daley today announced that a federal grand jury in Hartford has returned an indictment charging nine individuals with narcotics offenses related to their alleged involvement in a statewide drug ring.
The indictment was returned on June 30 and unsealed yesterday after six of the defendants were arrested.
This matter stems from a joint investigation led by the FBI and the Norwich, New London and Hartford Police Departments into a narcotics distribution network that stretched from southeastern Connecticut to the Hartford, New Britain and Waterbury areas. The investigation has included court-authorized wiretaps, surveillance, search warrants, and seizures of cocaine and crack cocaine.
The four-count indictment charges each of the following individuals with conspiracy to distribute, and to possess with intent to distribute, various quantities of cocaine and/or cocaine base (“crack cocaine”):
LUIS CARRASQUILLO, a/k/a “Cuchi,” 49, of Hartford
JASHUA CARASQUILLO, a/k/a “Chuy,” 25, of Hartford
AARON CLAYTON, a/k/a “Ace,” 52, of New Britain
DARRICK SHELBY, a/k/a “Butch, and “Butchy Brown,” 60, of Norwich
HECTOR UMPIERRE, 57, of Waterbury
DARRIN HARRIS, 44, of Norwich
JERMAINE NEWELL, 34, of Waterbury
FRANK BIGGS, 62, of Hamden
KELLY MCGILL, 50, of NorwichThe indictment alleges that, between November 2019 and March 2020, each defendant conspired to distribute various narcotics. If convicted of this charge, based on the type and quantity of narcotics involved, seven of the nine defendants face a mandatory minimum term of imprisonment of at least five years. Based on his criminal history, Luis Carrasquillo faces a mandatory term of imprisonment of 15 years. Harris and Newell face a maximum term of imprisonment of 20 years.
On March 17, 2020, law enforcement conducted court-authorized searches of the residences of Luis Carrasquillo, Jashua Carrasquillo and Aaron Clayton and seized approximately three kilograms of cocaine and nearly $100,000 in cash. No arrests were made at the time due to concerns related to the COVID-19 pandemic.
Luis Carrasquillo, Jashua Carrasquillo, Clayton, Shelby, Umpierre and Newell were arrested yesterday. Harris, Biggs and McGill are being sought by law enforcement.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation, and the Norwich, New London and Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Maria del Pilar Gonzalez.
Independence Day Message from U.S. Attorney William M. McSwainRead the Press Release
To the Residents of the Eastern District of Pennsylvania:
I wanted to wish you and your families a wonderful holiday weekend, as we celebrate the birth of our nation on July 4th. The last four months have been a time for critical thinking about a lot of things, including our values. Self-examination is a good thing: it helps us, individually and as a nation, to improve. And putting that sort of meaningful, critical thinking into action is only possible in a free and democratic society like ours. It is one of the defining characteristics of America.
Two years ago, I reflected on the meaning of the American experiment at my investiture, and here is what I said:
“I love this country. I love what she stands for. The history of the world is largely a history of tribal warfare, monarchy, grinding poverty and misery. And then . . . there’s America. America is the greatest force for good in the history of the world. It is a country founded on ideas. And not just any ideas, but the right ideas – ideas that have unlocked human potential and enabled human flourishing. Self-government, freedom, liberty, individual rights, freedom of speech, freedom of thought, freedom of religion, free markets, capitalism, economic opportunity, and equality under the law.”
Those words were true then, they are true today, and they will remain true as we embrace the future. We have a lot of important work left to do to make our country better. We cannot be complacent. But this holiday weekend is an appropriate time to focus on what unites us as Americans. God Bless you and your families, and God Bless the United States of America.
Sincerely,
Bill McSwain
Howe Man Sentenced to 36 Months Probation, $150,000 Restitution for Conversion of Mortgaged PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronald Justin Johnson, age 38, of Howe, Oklahoma was sentenced to 3 years of probation and ordered to pay restitution in the amount of $150,117.68 for Conversion Of Mortgaged Property, in violation of Title 18, United States Code, Section 658. The charges arose from an investigation by the United States Department of Agriculture – Office of Inspector General (“OIG”).
The Indictment alleged that from April 1, 2016 through July 14, 2016, the defendant knowingly and with intent to defraud, willfully disposed of and converted to his own use certain property, to-wit: thirty-two (32) head of cattle, said property having a value in excess of $1,000.00, and which was at the time of said disposition and conversion, mortgaged, pledged to and held by the United States Department of Agriculture – Farm Service Agency.
United States Attorney Brian J. Kuester said, “People who receive the benefits of federal loan programs through the Farm Service Agency do so with the knowledge and understanding that they have certain obligations that must be fulfilled as part of the loan agreement. Failure to fulfill those obligations jeopardizes programs intended to assist those in need of funding to support agricultural businesses. I commend the Department of Agriculture OIG for its diligence in identifying and investigating these crimes in Eastern Oklahoma.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Ben Gifford represented the United States.Harrisburg Woman Sentenced for Stealing from Credit UnionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brooke Shaeffer, age 24, of Harrisburg, Pennsylvania, was sentenced on June 30, 2020, by the Honorable Jennifer P. Wilson to five years of probation for stealing from Members 1st Federal Credit Union.
According to United States Attorney David J. Freed, Shaeffer previously pleaded guilty to the crime and admitted that in March 2017, she stole approximately $19,599 while employed as a teller at the credit union’s branch in Hummelstown, Pennsylvania.
Full restitution in the amount of $19,599 was made prior to sentencing.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Hammond Man Sentenced to PrisonRead the Press Release
HAMMOND – Devon Gibson, age 24, of Hammond, Indiana was sentenced by United States District Court Judge Philip P. Simon upon his plea of guilty to a bank fraud scheme in which he forged checks, deposited them at area ATMs, and withdrew funds, announced U.S. Attorney Kirsch.
Mr. Gibson was sentenced to 48 months in prison. The sentence includes a two-year mandatory minimum sentence for aggravated identity theft.
“We appreciate the work of the FBI and Hammond Police Department in resolving this case,” said U.S. Attorney Thomas L. Kirsch. “These types of crimes are not victimless and our law enforcement partners will continue to investigate, and we will prosecute offenses like this one.”
According to documents in this case on March 3, 2020, Gibson pled guilty to one count of bank fraud and one count of aggravated identity theft. Gibson’s bank fraud scheme spanned 18 months. During that time, he created forged checks, deposited them, and withdrew as much money as the bank allowed. He recruited others to provide him with bank accounts that he could use to deposit fraudulent checks or with identity information of unknowing persons that Gibson could use to open bank accounts. Investigators were able to identify 200 fraudulent checks and over three dozen bank accounts linked to the scheme.
This case was investigated by the Federal Bureau of Investigation GRIT Task Force and the Hammond Police Department. It was prosecuted by Assistant U.S. Attorney Alexandra McTague.
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Glenwood Man Sentenced to 15 Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Jacob Anzaldua, age 39, of Glenwood, Arkansas, was sentenced today to 180 months in federal prison followed by five years of supervised release for one count of being a Felon In Possession of a Firearm. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
On or about May 4, 2018, around 3:00 a.m., Anzaldua broke into the John Pylar's Home Center located in Glenwood, Arkansas. Anzaldua was captured on surveillance footage and was observed operating a distinct 1998 Ford pick-up truck. On or about May 5, 2018, around 9:00 p.m., a Special Agent with the ASP observed the distinct 1998 Ford pick-up truck, operated by Anzaldua and attempted to stop it. Anzaldua failed to stop the vehicle and fled from the officer. Ultimately, Anzaldua's vehicle underwent a mechanical failure and came to a stop. Anzaldua was placed under arrest and his vehicle was searched. The search resulted in officers locating a loaded defaced handgun behind the center console.
Anzaldua was indicted by a federal grand jury in August 2019, and entered a guilty plea in October of 2019.
This case was prosecuted as a part of the Department of Justice=s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by the Arkansas State Police and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney Bryan Achorn and Special Assistant United States Attorney (SAUSA) Trent Daniels prosecuted the case for the United States.
Ghislaine Maxwell Charged in Manhattan Federal Court for Conspiring with Jeffrey Epstein to Sexually Abuse MinorsRead the Press Release
Additionally Charged With Perjury in Connection With 2016 Depositions
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that GHISLANE MAXWELL was arrested this morning and charged with enticing a minor to travel to engage in criminal sexual activity, transporting a minor with the intent to engage in criminal sexual activity, conspiracy to commit both of those offenses, and perjury in connection with a sworn deposition. The Indictment unsealed today alleges that between at least in or about 1994 through 1997, MAXWELL and co-conspirator Jeffrey Epstein exploited girls as young as 14, including by enticing them to travel and transporting them for the purpose of engaging in illegal sex acts. As alleged, knowing that Epstein had a preference for young girls, MAXWELL played a critical role in the grooming and abuse of minor victims that took place in locations including New York, Florida, and New Mexico. In addition, as alleged, MAXWELL made several false statements in sworn depositions in 2016. MAXWELL is expected to be presented this afternoon in the in federal court in New Hampshire. This case is assigned to U.S. District Judge Alison J. Nathan.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Ghislaine Maxwell facilitated, aided, and participated in acts of sexual abuse of minors. Maxwell enticed minor girls, got them to trust her, and then delivered them into the trap that she and Jeffrey Epstein had set. She pretended to be a woman they could trust. All the while, she was setting them up to be abused sexually by Epstein and, in some cases, Maxwell herself. Today, after many years, Ghislaine Maxwell finally stands charged for her role in these crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “Preserving the innocence of children is among the most important responsibilities we carry as adults. Like Epstein, Ms. Maxwell chose to blatantly disregard the law and her responsibility as an adult, using whatever means she had at her disposal to lure vulnerable youth into behavior they should never have been exposed to, creating the potential for lasting harm. We know the quest for justice has been met with great disappointment for the victims, and that reliving these events is traumatic. The example set by the women involved has been a powerful one. They persevered against the rich and connected, and they did so without a badge, a gun, or a subpoena - and they stood together. I have no doubt the bravery exhibited by the women involved here has empowered others to speak up about the crimes of which they've been subjected.”
NYPD Commissioner Dermot Shea said: “The heinous crimes these charges allege are, and always will be abhorrent for the lasting trauma they inflict on victims. I commend our investigators, and law enforcement partners, for their continuing commitment to bringing justice to the survivors of sexual assault, everywhere.”
If you believe you are a victim of the sexual abuse perpetrated by Jeffrey Epstein, please contact the FBI at 1-800-CALL FBI, and reference this case.
According to the Indictment[1] unsealed today in Manhattan federal court:
From at least 1994 through at least 1997, GHISLAINE MAXWELL assisted, facilitated, and participated in Jeffrey Epstein’s abuse of minor girls by, among other things, helping Jeffrey Epstein to recruit, groom, and ultimately abuse victims known to MAXWELL and Epstein to be under the age of 18. The victims were as young as 14 years old when they were groomed and abused by MAXWELL and Epstein, both of whom knew that their victims were in fact minors. As a part and in furtherance of their scheme to abuse minor victims, MAXWELL and Epstein enticed and caused minor victims to travel to Epstein’s residences in different states, which MAXWELL knew and intended would result in their grooming for and subjection to sexual abuse.
As alleged, MAXWELL enticed and groomed minor girls to be abused in multiple ways. For example, MAXWELL attempted to befriend certain victims by asking them about their lives, taking them to the movies or taking them on shopping trips, and encouraging their interactions with Epstein. MAXWELL also acclimated victims to Epstein’s conduct simply by being present for victim interactions with Epstein, which put victims at ease by providing the assurance and comfort of an adult woman who seemingly approved of Epstein’s behavior. Additionally, to make victims feel indebted to Epstein, MAXWELL would encourage victims to accept offers of financial assistance from Epstein, including offers to pay for travel or educational expenses. MAXWELL also normalized and facilitated sexual abuse by discussing sexual topics with victims, encouraging them to massage Epstein, and undressing in front of a victim.
As MAXWELL and Epstein intended, these grooming behaviors left minor victims vulnerable and susceptible to sexual abuse by Epstein. MAXWELL was then present for certain sexual encounters between minor victims and Epstein, such as interactions where a minor victim was undressed, and ultimately MAXWELL was present for sex acts perpetrated by Epstein on minor victims. That abuse included sexualized massages during which a minor victim was fully or partially nude, as well as group sexualized massages of Epstein involving a minor victim where MAXWELL was present.
As alleged, minor victims were subjected to sexual abuse that included, among other things, the touching of a victim’s breasts or genitals, placing a sex toy such a vibrator on a victim’s genitals, directing a victim to touch Epstein while he masturbated, and directing a victim to touch Epstein’s genitals. MAXWELL and Epstein’s victims were groomed or abused at Epstein’s residences in New York, Florida, and New Mexico, as well as MAXWELL’s residence in London, England.
Additionally, in 2016, while testifying under oath in a civil proceeding, MAXWELL repeatedly made false statements, including about certain specific acts and events alleged in the Indictment.
* * *
GHISLAINE MAXWELL, 58, is charged with one count of enticing a minor to travel to engage in illegal sex acts, which carries a maximum sentence of five years in prison, one count of conspiracy to entice a minor to travel to engage in illegal sex acts, which carries a maximum sentence of five years in prison, one count of transporting a minor with the intent to engage in criminal sexual activity, which carries a maximum sentence of 10 years in prison, one count of conspiracy to transport a minor with the intent to engage in criminal sexual activity, which carries a maximum sentence of five years in prison, and two counts of perjury, each of which carries a maximum sentence of five years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and the NYPD.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller, Alison Moe, and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
Former Massachusetts Resident Involved in New Haven-Based Drug Ring Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SHAVAR BELLAMY, also known as “Lil B,” “LB” and “Little Black,” 34, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 60 months of imprisonment, followed by four years of supervised release, for trafficking crack cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Bellamy, who resided in Fitchburg during the investigation, regularly received crack cocaine from co-conspirators in Connecticut and distributed the drug in the Fitchburg area. He also wire-transferred proceeds of his drug sales to his Connecticut associates.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Bellamy and 24 other individuals with various offenses.
Bellamy has been detained since May 30 2019, when he was arrested on state drug charges in Massachusetts. On November 22, 2019, he pleaded guilty in federal court to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
Bellamy’s criminal history includes multiple convictions.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
Former Hoosick Falls Resident Charged with Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – William Hines, age 42, formerly of Hoosick Falls, New York, appeared in court today on charges of receiving and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A criminal complaint alleges that in January 2017, in Rensselaer County, Hines downloaded child pornography from a foreign website and possessed numerous images of child pornography on his cell phone and a computer. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
Hines was arrested on April 20, 2020 in Hudson, Florida, and then transported to the Northern District of New York. Today, Hines was ordered detained pending further proceedings.
If convicted of all charges in the complaint, Hines faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HSI with the assistance of the Hoosick Falls Police Department and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia G. Suarez.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Florence Man Sentenced to 156 Months for Armed Drug TraffickingRead the Press Release
COVINGTON, Ky. - A Florence, Kentucky man, Dylan G. Roland, 29, was sentenced on Thursday, to 156 months in federal prison, by U.S. District Judge David Bunning, for distribution of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, Roland admitted to distributing methamphetamine in April 2019, in Boone County. Roland further admitted that officers conducted a vehicle stop of two men who had just left his residence, discovering 30 grams of methamphetamine and a firearm. Roland’s residence was then searched, where officers located 14 grams of methamphetamine, 30 grams of marijuana, drug paraphernalia, approximately $2,500 in cash, and two firearms.
Under federal law, Roland must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Division, jointly made the announcement.
The investigation was directed by the FBI. The United States was represented by Assistant U.S. Attorney Wade Napier.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Federal Inmates Withdraw COVID-19 Class Action Lawsuit After Failing to Show BOP Violated Their Constitutional RightsRead the Press Release
RALEIGH, N.C. – Eleven inmates housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) voluntarily dismissed their lawsuit against Federal Bureau of Prisons (“BOP”) officials seeking release from prison as a result of the threat of the COVID-19 pandemic.
According to court documents, the federal inmates, who are represented by several advocacy groups, filed a petition for writ of habeas corpus, temporary restraining order and preliminary injunction on behalf of themselves and a purported class of current and future medically vulnerable inmates. The inmates alleged violations of their Eighth Amendment rights related to FCC Butner's response to the COVID-19 crisis, and sought relief including mass release or transfer of inmates from FCC Butner in order to facilitate social distancing. BOP officials filed substantial responses detailing the significant steps BOP and FCC Butner have taken to manage the crisis at FCC Butner.
On June 11, 2020, United States District Court Judge Louise W. Flanagan denied the inmates’ motion for a temporary restraining order and preliminary injunction, finding that the BOP officials made reasonable efforts toward the goals of preventing unnecessary illness and death and slowing the spread of the virus, that the claims were not appropriate under a habeas petition, and even if they were, the inmates failed to show a likelihood of success on the merits or that equity and public interests favor a temporary restraining order. (See attached order). On Monday, the inmates filed a stipulation of dismissal essentially withdrawing their remaining claims.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina commented: “Effectively managing prisons is a complex and difficult job on any day, but especially so in the midst of a global pandemic which affects so many people both inside and outside of the prison system. We are gratified that the court, in its ruling denying the inmates’ request for a temporary restraining order and preliminary injunction, recognized the efforts that officials at FCC Butner have made to minimize the risk of virus infection to the prisoners while doing their usual excellent job at maintaining order and ensuring the safety of the public in operating these critical facilities. I fully support the professional way in which that the FCC Butner officials continue to maintain the safety and security of the individuals housed within their institutions and the responsible manner in which they are managing the COVID-19 crisis.”
Special Assistant U.S. Attorneys Michael Bredenberg, Genna D. Petre, Christina Kelley, Mallory Brooks Storus, and Assistant U.S. Attorney Joshua Rogers defended the case on behalf of the BOP officials.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-HC-02088-FL.
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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.
Federal Authorities Seize over $80,000 in Funds Tied to COVID-19 Unemployment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Federal authorities have seized $80,661.05 in funds held at bank accounts allegedly used to perpetuate COVID-19 unemployment fraud, announced U.S. Attorney Andrew Murray. The federal seizure warrant was executed by U.S.
Picture of COVID-19 Fraud Hotline 866-720-5721 or justice.gov/DisasterComplaintFormSecret Service agents and was unsealed in federal court today. Earlier this week, the U.S. Attorney’s Office announced the seizure of $48,742.50, also allegedly tied to a COVID-19 unemployment fraud scheme.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
The affidavit filed in support of the federal warrant alleges that the funds were seized as part of an ongoing investigation of a COVID-19 unemployment fraud scheme that implicates bank accounts purportedly opened by individuals in the Western District of North Carolina. As alleged in court documents, the bank accounts identified in the seizure warrant were allegedly used to transfer to scammers funds fraudulently obtained from federal and state unemployment benefit programs put in place to provide financial assistance to qualifying individuals impacted by the coronavirus outbreak. The warrant alleges that scammers have targeted these programs and have exploited them for their benefit.
Court documents allege that the scammers carried out the fraud by using identity theft victims’ Personally Identifiable Information (PII) to apply for unemployment benefits online. Then, at the direction of the fraudsters, bank account holders were directed to receive the fraud proceeds and to conduct financial transactions with those proceeds, or to transfer the money to other bank accounts, often located overseas. In many instances, the bank account holders that received or made transactions with the stolen funds were not aware they were being exploited to carry out financial fraud. Rather, as the filed affidavit alleges, in many instances, the individuals who opened the bank accounts used to perpetuate the fraud were led to believe they were involved in online romantic relationships with the fraudsters.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Secret Service for their investigative work in this case and for their ongoing efforts to combat fraud related to COVID-19. He also thanked financial institutions in Western North Carolina for their cooperation and their efforts to detect and report COVID-19 financial fraud.
Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal warrants.
U.S. Attorney Murray also urged the public to remain alert in detecting COVID-19 fraud and to report suspicious activity to the local authorities, or by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator at the U.S. Attorney’s Office.
Durham Man Sentenced to 8 Years in Prison for Transportation of Child PornographyRead the Press Release
WINSTON-SALEM, N.C. – A man who pleaded guilty to transportation of child pornography was sentenced today to eight years in prison, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
BRIAN ROBERT ACKERMAN, 39, of Durham, North Carolina, pleaded guilty on December 13, 2019, to one count of transportation of child pornography. He was sentenced by Chief United States Chief District Judge Thomas D. Schroeder to 96 months of imprisonment followed by 15 years of supervised release.
ACKERMAN came to law enforcement’s attention following a report to the Orange County Sheriff’s Office and an illicit chat conversation with an undercover FBI agent, during which ACKERMAN condoned and encouraged the undercover FBI agent to sexually abuse his purported 9-year-old daughter. Further, ACKERMAN sent child pornography to at least three individuals: an Orange County woman, the undercover FBI agent, and a person purporting to be a 16 year-old girl. The files depicted the sexual abuse of prepubescent children and at least one toddler. At the time of his arrest, investigators found ACKERMAN in possession of 41 images and 49 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force and the Durham Police Department with assistance from the Orange County Sheriff’s Office. All are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorneys Eric L. Iverson and Whitney N. Shaffer. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Deltona Man Sentenced for Theft of Government FundsRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Bobby Morlen (54, Deltona) to two years in federal prison for theft of government funds. As part of his sentence, the court also entered a money judgment of $131,457.16, the amount of proceeds from the offense, and ordered Morlen to pay restitution. A federal jury had found Morlen guilty on January 22, 2020.
According to evidence presented at trial, Morlen’s mother was receiving benefits from the Social Security Administration (SSA) and the Department of Veterans Affairs (VA). Morlen’s mother died on August 18, 2014. Her death was not reported to the SSA or the VA, and the agencies continued to make benefit payments into her bank account. Morlen was a joint accountholder on the account into which his mother’s benefits were being deposited. He used the funds deposited after her death for his own personal expenses. In total, Morlen stole approximately $131,457.
This case was investigated by the Social Security Administration Office of the Inspector General and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Defendant Charged in Connection with Fraudulent Silver Trading Program Pleads Guilty to Money LaunderingRead the Press Release
SALT LAKE CITY – Denise Gunderson Rust, one of three individuals charged in connection with an alleged scheme to defraud investors by inducing them to purchase investments in a fraudulent silver trading program, pleaded guilty to money laundering in federal court late last week.
Gaylen Rust owned and managed Rust Rare Coin, Inc. (RRC), R Legacy Entertainment LLC, R. Legacy Racing Inc., R Legacy Investments LLC, R Legacy Ranch, and Legacy Music Alliance. Denise Rust was listed as the secretary of RRC and had signatory authority on several RRC bank accounts. Joshua Rust was manager of RRC from 2004 to Nov. 15, 2018. He also had signatory authority on several RRC bank accounts and managed the day-to-day operations of the RRC coin shop.
The silver trading program was offered and sold to around 700 investors throughout the United States. The defendants collected approximately $200 million.
Denise Gunderson Rust, 60, of Layton was charged in the case along with Gaylen Dean Rust, 59, of Layton and Joshua Daniel Rust, age 37, of Draper. Cases against the two men are pending.
“Denise Rust participated in one of largest and most financially destructive frauds Utah has ever seen. Based on this conduct, we have secured a conviction against her for laundering investor money for her own personal benefit,” U.S. Attorney John W. Huber said. “We remain committed to seek justice for the nearly 700 victims who have suffered catastrophic economic consequences from this fraud.”
“We are pleased at these first steps toward justice in this matter,” said Thomas Brady, Director of the Utah Division of Securities. “The U.S. Attorney’s Office has done exemplary work.
“Instead of doing the right thing, Denise Rust helped perpetuate a multi-million dollar Ponzi scheme that duped investors for more than 20 years,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “This case shows just how convincing fraudsters can be. We urge due diligence when looking to invest and immediately report fraud to the FBI.”
“Denise Rust knew that the millions of dollars of investors’ money she diverted into another business was from a Ponzi scheme,” said Las Vegas Field Office Special Agent in Charge Tara Sullivan. “People who create schemes that have no purpose other than to mislead others and defraud the IRS run the very high risk of prosecution."
Denise Gunderson Rust pleaded guilty to a Felony Information charging one count of money laundering. As a part of her plea agreement, she admitted that she conducted a money transaction using proceeds derived from unlawful activity.
She admitted that by that date, she was aware that Gaylen Rust had collected millions of dollars by offering and selling a silver trading program to many investors located throughout the United States. She admitted knowing that Rust had misrepresented to investors that their money would be used to purchase and trade significant amounts of physical silver bullion.
On Oct. 17, 2018, Denise Gunderson Rust admitted she transferred $12,000 from a bank account in Utah, where investor money was pooled, to her daughter in Alaska. The payment to her daughter was unrelated to the silver trading program.
The plea agreement includes an agreement that the Court will impose a sentence of between five years’ probation and 18 months in prison. The stipulated sentencing range is subject to the approval of the Court. She has also agreed to pay restitution in the approximate amount of $1,774,357.93. The exact amount of restitution and the schedule of payments will be determined during the sentencing hearing. She also agreed to forfeit $12,000 in money she acquired traceable to the criminal conduct. A sentencing date has not been set. Denise Rust is not in custody.
The indictment charging the Rusts alleges that from around 1996 and continuing to Nov. 15, 2018, the defendants conspired to defraud investors and potential investors by offering and inducing them to purchase investments in a silver trading program. According to the indictment, Gaylen Rust, who offered and sold investments in the program, made false and fraudulent statements regarding his scheme, both directly and indirectly, to investors and potential investors through various means including meetings, phone calls, mailings, and emails.
Among other things, the indictment alleges the defendants failed to disclose to investors that their funds would be used for purposes other than to invest in silver and trading silver; that Gaylen Rust was not licensed to sell securities, trade commodities or operate a commodity pool; that investor funds were being laundered through transfers in and out of the defendants’ personal accounts; and that investment account statements provided to investors were false and not based on actual silver trades.
In order to convince investors that their investments were profitable and to convince potential investors that the silver program was earning money, the defendants operated the trading program as a Ponzi scheme. The defendants used investment money from later investors to pay the promised returns to earlier investors, creating the false impression that the silver trading program was profitable, the investments were safe and secure, and that the promised returns were being generated. Ponzi payments of approximately $150 million were made to investors, representing those payments as profits from the operation of the silver trading program.
Gaylen Rust and Joshua Rust are charged with wire fraud and money laundering conspiracy in the case. Gaylen Rust also faces two counts of securities fraud and Joshua Rust is charged with one count of money laundering.
The potential maximum penalties for wire fraud conspiracy, securities fraud and money laundering conspiracy are up to 20 years in federal prison per count. Securities fraud has a 20-year maximum sentence sand money laundering has a potential 10-year sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in Salt Lake City are prosecuting the case. Special agents with the Utah Division of Securities, the FBI, and IRS-Criminal Investigation are investigating the case. The Securities Exchange Commission, the Commodity Futures Trading Commission, and the Utah Attorney General’s Office have filed related cases.
Cocaine and Crack Dealer Involved in Shootout Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 16 years in prison for his role in trafficking five kilograms or more of cocaine and 280 grams or more of crack cocaine and for possessing with intent to distribute at least 28 grams of crack cocaine.
“Charles Algernon Boomer III has a criminal history that includes nearly 100 criminal charges, and more than 40 total convictions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In this case, Boomer trafficked wholesale amounts of powder and crack cocaine from two Portsmouth drug premises, one across the street from an elementary school. Boomer is precisely the type of defendant that has the full attention of this office and our investigative partners as we work together to rid our streets of criminals who pose a great danger to the safety of our communities.”
According to court documents, Boomer, 44, a 13-time felon with three drug-trafficking convictions, operated a drug premises across the street from an elementary school. That residence was the subject of a botched armed robbery in which Boomer's co-conspirator, who was providing security, exchanged gunfire with the would-be robbers and sustained gunshot wounds. Police caught Boomer trying to escape in a car while sitting on wholesale amounts of crack cocaine, powder cocaine, and marijuana, bundles of cash, and a gun loaded with an extended magazine was on the floorboard next to him. When Boomer exited the car, the arresting officer observed more cash falling out of Boomer's pant legs and recovered from Boomer's pockets even more cash and another magazine matching the gun.
Officers searched Boomer’s residence and observed more crack, powder cocaine, and marijuana in the kitchen sitting next to drug packaging and manufacturing materials, a bag of crack sitting in the driveway, and another bag of crack sitting in the backseat of a vehicle parked in front of the residence. They also recovered dozens of spent shell casings that were scattered throughout the inside and outside of the residence and observed bullet holes in the walls, furniture, and even the refrigerator.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Promotional Deceit. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-191.
Career Criminal Sentenced to 20 Years for Armed Robbery and Gun ChargesRead the Press Release
CHATTANOOGA, Tenn. – Dale Clark, 47, of Shelbyville, was sentenced to 20 years in federal prison for Hobbs Act robbery, possessing a firearm as a convicted felon, and using a firearm during a federal crime of violence before the Honorable Travis R. McDonough in the U.S. District Court for the Eastern District of Tennessee at Chattanooga. The convictions and sentence resulted from a plea agreement between Clark and the United States.
Court documents reflect that after 10 p.m., on July 21, 2019, Clark entered the Chally Wally convenience store in Shelbyville, and pointed a handgun at the clerk while demanding money. Clark then went behind the counter, grabbed the clerk violently by the hair, and pointed the gun at her head while forcing her to the ground. The clerk handed the money over, and was forced into a backroom. Clark threatened to "blow her head off," before striking her in the head and leaving the store with the stolen money.
Following a successful investigation, Shelbyville police officers obtained arrest and search warrants for Clark and his residence. During the search, a K-9 officer was able to locate and remove Clark from the attic, where he was hiding. In the home, officers found clothing, a mask, and a gun that all matched the robber’s from surveillance footage obtained from the convenience store. The stolen money was not recovered, as Clark admitted to using the money to pay off drug debts.
At the time of the offense, Clark was a convicted felon and was prohibited from possessing a firearm. Court records show that due to Clark’s prior lengthy criminal history, he qualified to be sentenced as an armed career criminal.
Assistant United States Attorney Joe DeGaetano represented the United States.
The case resulted from an investigation by the Shelbyville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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Bench Trial Guilty Verdict in SWGA Meth Distribution CaseRead the Press Release
ALBANY, Ga. – A Moultrie, Georgia drug dealer repeatedly caught in possession of large quantities of methamphetamine with intent to distribute the drugs was found guilty of his crimes, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Louis Sands pronounced Samuel Howard, 26, of Moultrie, guilty of two counts of possession with intent to distribute methamphetamine. Howard choose a bench trial before Judge Sands, which was held on September 23-24, 2019. Judge Sands rendered his verdict late yesterday afternoon. Howard faces a mandatory minimum ten years in federal prison, up to a maximum life imprisonment. Howard’s sentencing has not been scheduled. There is no parole in the federal system.
Howard was first arrested in possession of 82.5 grams of “ice” methamphetamine on October 11, 2016. According to facts presented at trial, a confidential source notified a Thomas County-Thomasville Narcotics agent that a man known as “Cruze” would be delivering a large quantity of methamphetamine to a person on North Church Street in Meigs, Georgia within the hour. Agents discovered Howard with the packaged methamphetamine, as well as a scale with methamphetamine residue, numerous empty plastic sandwich bags and $1,819.00 in cash. Howard was again arrested on April 26, 2018, this time with 225 grams of “ice” methamphetamine. A confidential source texted Howard to meet him at a McDonald’s restaurant in Adel, Georgia to purchase methamphetamine. Howard was taken into custody at that McDonald’s in possession of methamphetamine.
“This defendant acted brazenly, continuing to push more and more methamphetamine into our communities even after his first arrest. Criminal drug dealers face severe punishment in the federal system, including life without parole,” said U.S. Attorney Charlie Peeler. “I want to thank the DEA, the GBI and the Thomas County-Thomasville Narcotics Unit for their excellent work in this case.”
“The severe punishment this defendant will face correctly reflects the criminal activities he engaged in. He continuously poisoned the community with “Ice” methamphetamine despite having been arrested previously for “Ice” distribution. The guilty verdict removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to distribute this insidious drug,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA, its law enforcement partners and the United States Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Mr. Howard.”
This case was investigated by the Drug Enforcement Administration (DEA), the Georgia Bureau of Investigation (GBI) and the Thomas County-Thomasville Narcotics Unit. Assistant U.S. Attorney Leah McEwen is prosecuting 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.
Bay Area Resident Sentenced to Two Years in Prison for Conspiring to Commit Mail Fraud in Connection with Disability Fraud SchemeRead the Press Release
SAN FRANCISCO - Linda Nguyen was sentenced to two years in prison for her role in a multi-million dollar mail fraud conspiracy, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett. The sentence was handed down by the Hon. Phyllis J. Hamilton, Chief U.S. District Judge.
Nguyen pleaded guilty to the charge on July 17, 2019. According to the plea agreement, Nguyen, 68, of Union City, engaged in a scheme to defraud California’s State Disability Insurance (SDI) program. The SDI program is designed to provide partial wage replacement benefits to eligible California workers who are unable to work due to a non-work-related illness, injury, or pregnancy. To receive SDI benefits, a claimant must file a claim for benefits supported by a Physician/Practitioner Certification attesting to the claimant’s disability. According to the plea agreement, Nguyen admitted that from January 2013 until January 2019, she agreed with a licensed physician and others to commit mail fraud by defrauding California’s SDI program. Specifically, Nguyen admitted she helped non-disabled persons prepare and submit fraudulent applications and certifications for SDI benefits. In exchange for her services, Nguyen charged the non-disabled SDI applicants a fee equal to 10% of the SDI benefits that they received. In addition, she paid the physician for each certification he completed for the fraudulent application.
Nguyen’s plea agreement contains four examples of individuals for whom she completed fraudulent applications. The agreement further describes how Nguyen paid a physician to complete and sign the practitioner disability certifications even though the applicants were never treated by the physician. Nguyen acknowledged in the agreement that the total loss attributable to the fraudulent scheme in which she participated is estimated to be between $3,500,000 and $9,500,000.
A federal grand jury indicted Nguyen on January 29, 2019, charging her with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, and one count of substantive mail fraud, in violation of 18 U.S.C. § 1341. Nguyen pleaded guilty to the conspiracy count and the substantive mail fraud count was dismissed at sentencing.
In addition to the prison term, Chief Judge Hamilton ordered Nguyen to serve a three year term of supervised release, to begin at the end of the prison term, and to pay restitution.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Alice Pai. The prosecution is the result of an investigation by the FBI with assistance from the Social Security Administration, Office of Inspector General and the California Employment Development Department.
Armed Trafficker Sentenced to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lazaro Aguilar, 20, of Rochester, NY, who was convicted of possessing with intent to distribute heroin and fentanyl, and possessing a firearm in furtherance of a drug trafficking crime, was sentenced to serve 81 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that Aguilar was arrested on February 16, 2018, after officers from the Rochester Police Department, who were patrolling the area of Murray Street and Lyell Avenue, saw the defendant driving a vehicle with excessively tinted windows in violation the New York State Vehicle and Traffic Law. After officers pulled the vehicle over, they identified Aguilar as the driver but he did not have a valid driver’s license. After ordering the defendant to exit the vehicle, officers searched Aguilar and found 32 small bags containing a mixture of heroin and fentanyl in his pocket. Officers also recovered a loaded pistol from the defendant’s pocket. Aguilar stated that he had the handgun for his protection, and that he had been shot at earlier.
Aguilar was again arrested on September 30, 2019, with 23 additional bags of fentanyl, and over $5,000 in United States currency.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Office.
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Activity in the United States Attorney's OfficeRead the Press Release
Sentences
Federal District Court Judge Nancy D. Freudenthal sentenced THERESA KAY FULLERTON, 46, of Mills, Wyoming on June 29, 2020 for possession of stolen mail. Fullerton appeared pursuant to a writ. She received thirty-six months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $1500.00 fine, restitution in the amount of $150.00 and a $100.00 special assessment. The U.S. Postal Service Investigative Service investigated this case.
Federal District Court Judge Alan B. Johnson sentenced IVAN ARMANDO GARCIA, 22, of Los Angeles, CA, on July 1, 2020 for possession with intent to distribute approximately 10 pounds of heroin. Deputy Henderson of the Sweetwater County Sheriff’s Office arrested Garcia in August of 2019. Garcia received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $300.00 and a $100.00 special assessment. The U.S. Drug Enforcement Administration and Sweetwater County Sheriff’s Office investigated this case.
PLEAS
CHARLES PATRICK JEFFERY, Jr., 43, of Kinnear, Wyoming entered a plea of guilty to one count of aggravated sexual abuse of a child in United States District Court on July 1, 2020. Jeffery was indicted by a grand jury in July of 2019 on allegations that on several occasions between November of 2015 and July of 2016 he engaged in sexual acts with a minor child on the Wind River Indian Reservation. The grand jury added additional charges pertaining to two additional victims in a superseding indictment on November 21, 2019. On July 1, 2020, Jeffery entered his guilty plea to count one of the superseding indictment before Chief Federal District Court Judge Scott W. Skavdahl. Judge Skavdahl set Jeffery’s sentencing hearing for September 9, 2020 in the Ewing T. Kerr Federal Courthouse in Casper. The Federal Bureau of Investigation investigated this case in conjunction with officials in Natrona and Campbell counties.
Wednesday 1 July 2020
Worcester Man Sentenced for Tax EvasionRead the Press Release
BOSTON – A Worcester man was sentenced today for tax evasion and failing to file tax returns, thereby defrauding the IRS of $400,000.
Leonard Ngunjiri a/k/a Leonard Gitonga, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison, one year of supervised release and ordered to pay restitution to the IRS in the amount of $406,407. In February 2020, Ngunjiri pleaded guilty to one count of tax evasion and five counts of failure to file a tax return.
Since approximately September 2012, Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others and using accounts in other individuals’ names for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2012 through 2017 despite making income in excess of the minimum filing requirements. In total, Ngunjiri defrauded the IRS of approximately $400,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.
West Hills Man Arrested on Federal Arson Charge for Allegedly Starting Fire in Santa Monica Restaurant during Civil DisturbanceRead the Press Release
LOS ANGELES – A West Hills man was arrested this morning on federal charges alleging he started a fire that caused substantial damage to the Sake House by Hikari in Santa Monica on May 31.
Micah Tillmon, 19, was arrested without incident this morning by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers with the Santa Monica Police Department. Tillmon is expected to make his initial court appearance this afternoon in United States District Court in downtown Los Angeles.
Tillmon was arrested pursuant to a criminal complaint filed on June 25 and unsealed after his arrest. The complaint charges Tillmon with one count of arson, a felony offense that carries a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years.
According to the affidavit in support of the criminal complaint, security video from the restaurant shows Tillmon removing “a red tube-shaped object from his jacket, which he placed behind the reception desk area of the restaurant before walking away. Within seconds of that action, smoke and fire appeared from the area….”
Investigators with the Santa Monica Fire Department determined that the fire was caused by red object that Tillmon allegedly placed in the restaurant, which is at the corner of Santa Monica Boulevard and 4th Street.
Tillmon was identified by detectives with the Santa Monica Police Department, who reviewed numerous security videos and social media posts. Tillmon was also linked to the fire when investigators uncovered a video showing his white Ford Explorer parking next to the Sake House four minutes before the fire started and then reversing across the street soon after the fire started, according to the affidavit. That same video allegedly shows the Explorer parking about 500 feet away from the Sake House, and Tillmon exiting the vehicle and looting a nearby business.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
This matter is being prosecuted by Assistant United States Attorney Shawn Andrews of the Violent and Organized Crime Section.
Wellington man charged with possession and transportation of child pornographyRead the Press Release
William D. Schaffer, age 52, of Wellington was arrested this week on a federal criminal complaint filed in the Northern District of Ohio, charging him with possession/access with intent to view child pornography and transportation of child pornography. The defendant was last employed as a Firefighter/EMT/Driver-engineer with the Elyria Fire Department.
“According to the allegations in the complaint, this defendant held a position of public trust and was simultaneously contributing to the online exploitation of children,” said U.S. Attorney Justin Herdman. “Our office will continue to work with law enforcement at every level to ensure that we continue to hold our public servants accountable for their actions.”
“Allegations of child exploitation crimes are troubling enough, but even more disturbing is when the suspect is employed in a position that demands the public's trust as a firefighter,” said Vance Callender, special agent in charge of HSI Detroit. “HSI will take swift action against suspects in any public trust position to save children and ensure the community’s confidence in those employed in such jobs.”
According to the affidavit in support of the complaint, on April 30, 2020, the defendant used an email account to upload approximately 355 files of apparent child pornography over the Yahoo mail platform. On June 30, 2020, law enforcement agents executed a search warrant at Wellington address listed for the defendant. An iPhone, laptop computers, and external storage media were seized. The defendant told investigators that they would find images of child pornography on his computer and that he has viewed other files depicting child exploitation in the past.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation is being conducted by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Weld County Man Pleads Guilty to Smuggling Gun Parts Out of the United States and Possessing Unregistered FirearmsRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Michael John Suppes, age 46, of Weld County, Colorado, pleaded guilty earlier this week to smuggling gun parts out of the United States and possessing unregistered firearms. Homeland Security Investigations (HSI) joined in this announcement.
According to the stipulated facts contained in the Suppes’ plea agreement, Suppes, who was not a licensed firearm dealer or manufacturer, willfully engaged in the business of manufacturing and dealing in firearms. He exported firearm parts to buyers in other countries without obtaining an export license. Furthermore, he possessed short-barreled rifles that were not registered under the National Firearms Registration and Transfer Record as required by law.
Suppes operated a business, MJS Performance LLC, that sold firearm parts and motorcycle muffler parts. Between January 25, 2015, and November 5, 2018, he, through his business, shipped over 1,200 domestic and international packages. The defendant came to the attention of Homeland Security Investigations (HSI) after it learned of multiple packages that contained concealed gun parts destined for other countries, including Saudi Arabia, India, and Cambodia. The gun parts required an export license, which Suppes did not obtain.
Between December 2018 and April 2019, Suppes communicated with individuals who said they wanted to smuggle firearms into Mexico. In April 2019, he agreed to sell one of the individuals 30 AR-15 and 20 AK-47 rifles as well as magazines and ammunition. Suppes was arrested on his way to meet with the individual; he had the 50 rifles, magazines, and ammunition with him. Most of the firearms were short-barreled rifles.
Suppes also agreed to a substantial forfeiture of assets that totaled nearly $300,000. He also agreed to forfeit 123 firearms as well as firearm parts and ammunition.
He faces not more than 10 years in federal prison, followed by up to 3 years on supervised release. He also faces up to a $250,000 fine.
Suppes was prosecuted by Assistant U.S. Attorney Emily Treaster. Assistant U.S. Attorney Tonya Andrews handled the asset forfeiture portion of this prosecution. This case was investigated by Homeland Security Investigations (HSI), with assistance from the United States Postal Inspection Service (USPIS), the Weld County Sheriff’s Office, and the Colorado State Patrol (CSP).
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; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-291.
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.
Wyoming’s Largest Drug Bust Leads to Two Decades in PrisonRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced ARNOLD DEVONNE BUTLER, 54, today in Casper. Butler was convicted on January 17, 2020 after a 4-day jury trial and found guilty on all counts, including possession with intent to distribute and conspiracy to distribute methamphetamine, heroin, cocaine, and fentanyl. Butler received two hundred forty months of imprisonment, to be followed by one hundred twenty months of supervised release, and was ordered to pay a $500.00 special assessment.
Butler was initially stopped for a commercial vehicle inspection by the Wyoming Highway Patrol on Interstate 80 in Laramie County on May 15, 2019. He was driving a rollback style commercial tow truck and transporting a sedan. During the inspection, the Trooper became suspicious of Butler’s activities and called for a drug detection dog. The dog alerted on the towed vehicle and officers found 46 pounds of methamphetamine, two and a half kilograms of cocaine, a kilogram of synthetic fentanyl, and three kilograms of heroin hidden in a compartment built between the rear seat and trunk of the vehicle.
Further investigation of this case following Butler’s arrest led agents to uncover connections with other drug trafficking activity outside Wyoming. “The Butler investigation has been and continues to be a multi-agency, multi-jurisdictional investigation that identified, disrupted and dismantled a drug trafficking organization that has been responsible for the importation and distribution of hundreds of pounds of illegal narcotics across the United States.”, stated DEA Resident Agent in Charge, David A. Tyree. “The outstanding investigative efforts from the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation, working with the DEA and FBI in Wyoming and California developed a highway interdiction of illegal drugs into an investigation that resulted in several arrests and additional drug seizures in California and elsewhere.”
“While I am gratified with the result and commend the great detection and investigative effort of our Troopers and agents, we know that Mr. Butler is just the tip of the iceberg. Every day across Wyoming and elsewhere, drug couriers like Mr. Butler are using our highways to move these dangerous substances across the country and into our communities,” said US Attorney Mark Klaassen. “We will continue to do what we can as law enforcement to identify and stop these criminals, but our communities must also work to find ways to reduce demand and address the addiction that drives this criminal activity.”
Villanova Businessman Sentenced to a Year and a Day in Prison for False Statements, Concealment of Assets in Bankruptcy FilingsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Scott Korn, 57, of Villanova, Pennsylvania, was sentenced to one year and one day in prison, three years of supervised release and a $50,000 fine by United States District Judge Eduardo C. Robreno for false statements and financial fraud.
In August 2019, Korn pleaded guilty to an Indictment charging him with concealment of assets in a bankruptcy proceeding, and swearing a false oath or account. Those charges arose from the following set of facts. In 2009, a lawsuit was filed against the defendant and several of his companies for breach of contract among other issues. In April 2014, the case proceeded to trial in the Philadelphia Court of Common Pleas and the jury returned a verdict against Korn and his companies in the amount of approximately $2.4 million.
Over the course of the next few days following the verdict, Korn purchased a BMW X3, a Porsche 911, a Porsche Cayman, charging all three luxury vehicles to his American Express credit card. Additionally, Korn purchased a cashier’s check for almost $200,000, payable to himself, drawn on his personal bank account. The defendant cashed this check the following day at a check casher, receiving approximately $196,000 in cash and paying a check cashing fee of about $4,000. He then filed for Chapter 11 bankruptcy.
Under the bankruptcy code, debtors must complete financial Schedules, including a schedule listing all of their personal property (assets) , and a Statement of Financial Affairs which discloses all financial data. Debtors must also file a Declaration, under penalty of perjury, that they have read the schedules and summary they are submitting and that all are true and correct to the best of their knowledge. In Korn’s filings, he did not list the recently purchased luxury vehicles among his assets or in his schedule of personal property, but he did include American Express in his schedule of creditors, along with the total debt that he owed American Express – an amount that included the purchase price of the cars – without revealing what was purchased on this credit card. The defendant also did not disclose the recent liquidation of nearly $200,000 in cash from his bank account, instead listing that bank account with an approximate balance of only $9,300. Korn also omitted other assets from his bankruptcy statements including a 21-foot ski boat and two wave runners. At a later proceeding in the bankruptcy, Korn swore an oath under penalty of perjury and testified that he did not own any carsand only had an old motorcycle and a leased Honda.
“Mr. Korn abused the bankruptcy court system in an effort to enrich himself while cheating his creditors,” said First Assistant U.S. Attorney Williams. “He tried to play games to avoid fulfilling his fiduciary obligations, but the dedicated investigators on this case uncovered his lies. Today’s sentence provides justice to those Mr. Korn attempted to swindle.”
“Perjury and concealment of assets in a bankruptcy case are serious crimes,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Scott Korn sought to use the federal courts to defraud his creditors and today’s sentence holds him accountable. It should also serve as a warning to anyone else looking to game the system. Expect to be caught and prosecuted.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Karen Grigsby.
Vanderburgh County Receives High Intensity Drug Trafficking Area (HIDTA) DesignationRead the Press Release
EVANSVILLE – United States Attorney Josh J. Minkler and High Intensity Drug Trafficking Area Director Chuck Porucznik announce the addition of Vanderburgh County to the Indiana HIDTA.
Created by Congress in 1988, the HIDTA task force program, which is under the Office of National Drug Control Policy (ONDCP), creates a mechanism for coordination of federal, state, local and tribal resources to combat drug trafficking in designated regions of the country.
The HIDTA designation for Vanderburgh County will allow access to federal resources to combat drug distribution and increase enforcement efforts. Law enforcement agencies will now access drug trafficking issues and create Vanderburgh County specific initiatives that will laser focus on outcomes and performance. HIDTA provides unprecedented national connectivity to access drug threats and trends throughout the country.
"The HIDTA program in Indiana is another tool available to law enforcement for the purpose of reducing the terrible effects of illicit drugs on our Hoosier communities." said Minkler. "Adding Vanderburgh County to the Indiana HIDTA, will aid law enforcement officers
in southern Indiana by helping to reduce drug distribution networks and other violent crimes associated with illicit drugs."
HIDTA Director Chuck Porucznik said, "The addition of Vanderburgh County to the Indiana HIDTA allows 6 counties in the more populated areas of the state to gain focused attention and federal resources to reduce drug related activity and violence. The goal of the HIDTA program is simple, disrupt the market for illegal drugs by dismantling and disrupting drug trafficking and money laundering organizations through law enforcement coordination."
Assistant Special Agent in Charge Michael Gannon said, "It is an honor for the DEA to oversee the HIDTA initiative for Vanderburgh County. The DEA is committed to working with their state, local and federal counterparts to utilize all available resources provided by the HIDTA to target and dismantle the most violent and dangerous drug trafficking and money laundering organizations in Vanderburgh County and the surrounding area."
U.S. Seeks to Recover Approximately $96 Million Traceable to Funds Allegedly Misappropriated from Malaysian Sovereign Wealth FundRead the Press Release
The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $96 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund. Combined with earlier civil forfeiture complaints filed beginning in July 2016, the United States has sought the forfeiture of more than $1.8 billion in assets traceable to funds embezzled from 1MDB. To date, as a result of these actions, the United States has recovered or assisted Malaysia in recovering nearly $1.1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This case represents the largest action brought under the department’s Kleptocracy Asset Recovery Initiative as well as the largest civil forfeiture action in the Justice Department’s history.
The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings. These assets include luxury real estate in Paris, artwork by Claude Monet and Andy Warhol, and accounts maintained at financial institutions in Luxembourg and Switzerland.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“The complaint filed today seeks to forfeit a range of luxury items — including real estate in Paris, artwork by Monet, Warhol, and Basquiat, and international bank accounts — all of which were allegedly acquired with funds stolen from Malaysia’s sovereign wealth fund,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s action is just the latest demonstration of the Criminal Division’s longstanding commitment to tracing, seizing, and forfeiting assets acquired through grand corruption and, wherever possible, returning those assets to the people from whom they were stolen.”
“The FBI will relentlessly pursue international corruption investigations,” said FBI Assistant Director Calvin Shivers of the Criminal Investigative Division. “As efforts in this case have shown, our dedicated investigators will pursue corruption, uncover proceeds of illicit activity, and return ill-gotten gains to the rightful owners. In this case, to the people of Malaysia.”
“These seemingly endless civil forfeiture complaints associated with the 1MDB scandal are representative of the seemingly endless schemes used to hide and launder money as part of the sophisticated efforts to steal from the Malaysian people,” said Don Fort, Chief, IRS Criminal Investigation. “This latest civil forfeiture complaint would return an extraordinary sum of money to the people of Malaysia where it belongs and where it can finally be used for its original intended purpose - to improve the lives of everyday Malaysians.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the United States and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the United States and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013. The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. Assistant U.S. Attorneys John Kucera and Michael Sew-Hoy of the U.S. Attorney’s Office for the Central District of California provided substantial assistance. The trial team also expresses its gratitude and appreciation to the Criminal Division’s Office of International Affairs for their continued assistance in this matter.
The department also expresses its deep appreciation for the significant assistance provided by the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, and the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, and the Malaysian Anti-Corruption Commission.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
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.
U.S. Attorney J. Douglas Overbey Announces $142,578 Award to Address Covid-19 Pandemic in TennesseeRead the Press Release
KNOXVILLE, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee today announced that Knox County received $142,578 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Other jurisdictions can determine if they are eligible for funds and may apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“As this country continues to fight COVID-19, our office remains committed to deterring, investigating, and prosecuting those who seek to take advantage of the COVID-19 pandemic. This funding will help many of the communities struggling in these trying times and provide some much-needed relief to our district,” said U.S. Attorney Overbey.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude using these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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Three Former Hilo Correctional Officers Indicted for Assaulting an Inmate and Attempting to Cover it UpRead the Press Release
A federal grand jury in Honolulu, Hawaii, returned a six-count indictment against three former correctional officers — Jason Tagaloa, 29, Craig Pinkney, 36, and Jonathan Taum, 48 — for their roles in assaulting an inmate housed at the Hawaii Community Correctional Center and for attempting to cover up their misconduct.
The indictment from June 25, was announced Tuesday by U.S. Attorney Kenji M. Price for the District of Hawaii, Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, and FBI Honolulu Special Agent in Charge Eli S. Miranda.
The indictment alleges that, on June 15, 2015, defendants Tagaloa, Pinkney, and Taum, along with a fourth correctional officer designated “Officer A,” physically assaulted an inmate in the jail’s recreation yard, that Tagaloa later assaulted the same inmate in a holding cell, and that both assaults resulted in bodily injury. The indictment further alleges that the defendants and Officer A conspired to cover up their misconduct by engaging in a variety of obstructive acts, including devising a false cover story to justify their use of force, documenting that false cover story in official reports, and repeating that false cover story when questioned during the ensuing investigation and disciplinary proceedings arising out of the assault.
The maximum penalties for the charged crimes are 10 years of imprisonment for each of the deprivation-of-rights offenses, 20 years of imprisonment for each of the false report offenses, and 5 years of imprisonment for the conspiracy offense.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Craig Nolan of the District of Hawaii is prosecuting the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Civil Rights Division.
Statement by Attorney General William P. Barr on the Restoration of Law and Order in SeattleRead the Press Release
Attorney General William P. Barr has issued the following statement:
“I commend Police Chief Carmen Best for her courage and leadership in restoring the rule of law in Seattle. For the past several weeks, the Capitol Hill area of Seattle was occupied by protesters who denied access to police and other law enforcement personnel. Unsurprisingly, the area became a haven for violent crime, including shootings that claimed the lives of two young people, assaults, and robberies. As Chief Best made clear throughout the process, there is a fundamental distinction between discussion of substantive issues — including addressing distrust of law enforcement by many in the African-American community — and violent defiance of the law. Chief Best has rightly committed to continue the substantive discussion while ending the violence, which threatens innocent people and undermines the very rule-of-law principles that the protesters profess to defend. Thanks to the Seattle Police Department, Capitol Hill parks, streets, and businesses are again accessible to the people of Seattle, who may travel throughout their city without fear of violence. The people of Seattle should be grateful to Chief Best and her Department for their professional and steadfast defense of the rule of law. The message of today’s action is simple but significant: the Constitution protects the right to speak and assemble freely, but it provides no right to commit violence or defy the law, and such conduct has no place in a free society governed by law.”
Statement from Assistant Attorney General Eric Dreiban and U.S. Attorney Steven D. Weinhoeft on the Federal Court's Decision That Legal Challenge to Illinois Governor's Sweeping Covid-19 Orders Belongs in State CourtRead the Press Release
WASHINGTON – Assistant Attorney General for Civil Rights Eric Dreiband and U.S. Attorney for the Southern District of Illinois Steven D. Weinhoeft issued the following statement on yesterday’s ruling, agreeing with the Justice Department, that a legal challenge to Governor J.B. Pritzker’s COVID-19 orders belongs in Illinois state court rather than federal court:
“It is now up to the Illinois courts to decide if Governor Pritzker’s continuing COVID-19 executive orders are lawful. These sweeping proclamations affect more than 12.5 million Americans, restrict their freedom to associate, practice their faith, and engage in commerce. And, these orders appear to reach far beyond the scope of the 30-day emergency authority granted to the governor under Illinois law.
The United States Constitution requires that every state in this nation establish and maintain a Republican Form of Government. This means that governors cannot restrict our freedom by issuing unlawful edicts.
Governors do not rule us. We are self-governing, and governors answer to the people through the democratic process. For that reason, all public officials, including governors, must comply with the law. Even in the face of a pandemic, states must follow their own laws and make these sensitive policy choices in a manner responsive to the people. Doing so, both respects and serves the goals of our broader federal structure.
The Department of Justice remains committed to defending the rule of law and the American people at all times, especially during the COVID-19 pandemic.”
Background
On May 22, 2020, the Department of Justice filed a statement of interest in an Illinois federal court in support of a lawsuit filed by Illinois state representative Darren Bailey challenging certain actions of Governor J.B. Pritzker in response to the COVID-19 pandemic. In its statement of interest, the United States explained that this dispute belongs in Illinois state court, and that Representative Bailey has raised substantial questions as to whether the governor’s current response to COVID-19 is lawful.
Yesterday, the Illinois federal court agreed with the Department of Justice that the dispute belongs in state court, ruling that “in the interest of federalism, the court finds that the amended complaint does not give rise to federal jurisdiction and that this action is best committed to the courts of the State of Illinois for further consideration.”
The statement of interest was part of Attorney General William P. Barr’s April 27, 2020 initiative directing Assistant Attorney General Eric Dreiband for the Civil Rights Division, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
In response to the COVID-19 pandemic, the Governor of Illinois has, for the past several months, sought to rely on authority under the Illinois Emergency Management Agency Act to impose sweeping limitations on nearly all aspects of life for citizens of Illinois. According to the lawsuit, the governor’s actions are not authorized by state law, as they extend beyond the 30-day time period imposed by the Illinois legislature for the governor’s exercise of emergency powers granted under the act.
Representative Bailey brought his case in Illinois state court and elected only to assert state law claims. In May, the presiding state court judge ordered Bailey to file his motion for summary judgment and instructed the governor to respond to it. Instead of responding to Bailey’s motion for summary judgment, on May 21, the governor removed the case to federal district court.
On June 29, the federal district court remanded the case to the circuit court for the Fourth Judicial Circuit, Clay Court, Illinois.
The federal case is Bailey v. Pritzker, No. 3:20-cv-474.
The department’s previous statement of interest in this case can be found here: https://www.justice.gov/opa/press-release/file/1278636/download
The department’s press release on its previous statement of interest in this case can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-challenging-legality-illinois-governors-sweeping
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Rockland Man Charged with Unlawfully Possessing a FirearmRead the Press Release
BOSTON – A Rockland man was charged yesterday with being a felon in possession of a firearm and ammunition.
Lamont Boswell, 35, was charged by criminal complaint with one count of unlawfully possessing a firearm and ammunition while being a convicted felon. Boswell was detained pending a detention hearing set for July 14, 2020, following an initial appearance today via videoconference in federal court in Worcester.
According to the criminal complaint, in the early morning hours of March 5, 2020, police officers were dispatched to a Hanover convenience store. As officers approached the vehicle, they noticed the engine was revving and the occupant, later identified as Boswell, appeared to be sleeping, laying in the driver’s seat with a sweatshirt pulled up over his head. Plainly visible on Boswell’s lap was a black revolver handgun. Officers were able to secure the firearm without incident. The revolver, a .38 Special caliber Smith & Wesson, was loaded with five rounds of .38 caliber special ammunition in the cylinder. It is alleged that Boswell could not produce any documentation for the firearm or a license to carry, and was subsequently arrested.
It is further alleged that Boswell was also in possession of quantities of suspected heroin and cocaine packaged individually in 10 small, clear plastic bags at the time of his arrest. According to court documents, Boswell revealed during booking that he is a member of the Latin Kings gang. Due to previous state drug convictions punishable by more than one year of incarceration, Boswell is prohibited from possessing a firearm and ammunition.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Hanover Police Chief Walter Sweeney made the announcement today. Assistant U.S. Attorney Fred M. Wyshak, III of Lelling’s Major Crimes Unit is prosecuting the case.
The details in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rochester Not for Profit Employee Pleads Guilty in Federal Court to Defrauding the NYS Dormitory AuthorityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shirley Boone, 61, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Richard A. Resnick and Melissa M. Marangola, who are handling the case, stated that the defendant was the Chief of Staff at NEAD, a not-for-profit neighborhood tax-exempt organization, governed by a volunteer board of directors with day-to-day operations overseen by an Executive Director. Volunteers and staff worked with city officials and agencies to revitalize and stabilize the Sector 8 neighborhood in the northeast quadrant of Rochester. Boones’ duties included securing grants for NEAD, which was funded primarily by grants.
On February 23, 2018, NEAD paid Freedom Community Enterprise Inc. $45,000 to make it falsely appear that Freedom Community had replaced NEAD’s roof and worked on other rehabilitation projects. Freedom Community was a for-profit subsidiary of NEAD and was established to further NEAD’s objective of providing affordable economic opportunities for neighborhood residents. Freedom Community also operated a convenience store located in the Northeast quadrant of Rochester. Freedom Community was not a construction company, nor did it replace NEAD’s roof or perform other rehabilitation projects for NEAD.
Subsequently, the defendant sent documentation to the Dormitory Authority of the State of New York (DASNY) indicating that Freedom Community had in fact replaced NEAD’s roof and performed other rehabilitation services, along with documentation of the $45,000 payment. As a result, NEAD fraudulently received a $45,000 grant from DASNY on July 16, 2018.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
Sentencing is scheduled for December 9, 2020, before Judge Wolford.
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Rochester Felon Charged with Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jean Green-Alvarez, 33, of Rochester, NY, was arrested and charged by criminal complaint with being felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that at approximately 12:30 a.m. on January 15, 2020, Rochester Police Department officers responded to 46 Backus Street in Rochester for a menacing call. According to the complaint, the victim was knocking on doors on nearby Emerson Street attempting to get assistance with charging his cellular telephone. As the victim approached 108 Emerson Street, he observed a male, later identified as the defendant, and a female in the doorway of the residence. As the victim approached, the female handed the defendant what appeared to be a black rifle. The defendant approached the victim and demanded his backpack. The victim told officers that he complied with Green-Alvarez’s demands and handed him the backpack. Surveillance footage at 108 Emerson corroborated the victim’s summary of the events. Officers later searched the residence and located a rifle in the basement of 108 Emerson Street. On March 9, 2020, Green-Alvarez was arrested by police. In September 2009, the defendant was convicted of conspiracy to possess with intent to distribute cocaine within a protected location in the District of Puerto Rico, and is legally prohibited from possessing a firearm.
Green-Alvarez made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The criminal complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; and the U.S. Probation Department, under the director of Chief Probation Officer Anthony SanGiacomo.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Retired Postal Worker Sentenced to over 8 Years in Prison for Bribery Scheme Involving Bulk Mail that Caused $11.7 Million in LossesRead the Press Release
LOS ANGELES – A former employee of the United States Postal Service was sentenced today to 100 months in federal prison for accepting bribes from business customers in exchange for falsely approving unpaid or underpaid bulk mail shipments, causing more than $11.7 million in total losses to his employer.
Juan Enrique Caudillo, 60, of Lakewood, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Caudillo, who has been in federal custody since December 2018, to pay $11,745,608 in restitution to the U.S. Postal Service. Caudillo pleaded guilty in March 2019 to one count of conspiracy to commit mail fraud.
Caudillo, who retired from the U.S. Postal Service last year, also agreed to surrender his pension as restitution, as well as the full balance – approximately $140,000 – of his Thrift Savings Plan, a 401(k)-type account available to federal employees.
Since at least 2012, Caudillo, while working as a bulk mail clerk at the Paramount post office, took bribes in exchange for approving unpaid or underpaid bulk mail shipments as fully paid. In one scheme, the owner of Premier Mailing, Inc., a Paramount-based company, paid Caudillo bribes in return for Caudillo falsely listing certain mailings as prepaid, resulting in no postage being paid for them. In a separate scheme, Caudillo accepted bribes to allow another business mailer to underreport information, resulting in reduced payment to the Postal Service for mailings.
“[Caudillo] took advantage of his special training and detailed knowledge of postal procedures to make his fraud nearly impossible to detect: He directed his co-conspirators to use the more cumbersome manual mailing forms rather than the more modern digital ones, exactly the opposite of Postal Service policy,” prosecutors wrote in their sentencing memorandum. “As a result, [Caudillo’s] fraud was buried in a mountain of paper rather than exposed by a computer system that can easily cross-check the number of pieces of mail sent from one post office with those received at another.”
Caudillo has agreed to forfeit almost $700,000 in cash seized from his residence during a November 2018 search warrant. Caudillo also agreed to forfeit approximately $50,000 seized from various bank accounts he maintained, and a Eureka, California residence that he purchased with the scheme’s proceeds of the schemes.
“Mr. Caudillo defrauded the Postal Service and abused his position of public trust by accepting bribes from businesspeople who didn’t want to pay to use the mails,” said United States Attorney Nick Hanna. “Public corruption is a priority for my office, and today’s sentence reflects our determination to aggressively prosecute wrongdoing by any public official.”
Two co-defendants, Ramon Arribeno, 61, of Hacienda Heights, and Armando Lopez-Torres, 63, of the El Sereno neighborhood of the City of Los Angeles, the owner and manager, respectively, of Premier Mailing, each pleaded guilty in 2019 to charges for their roles in the conspiracy and received federal prison sentences.
“The public must have confidence that Postal Service employees will conduct their work in an honest manner,” said Special Agent in Charge Brian Washington, U.S. Postal Service Office of Inspector General. “When employees commit serious offenses, such as taking bribes to overlook large amounts of potential Postal Service revenue, they will be aggressively investigated and prosecuted.”
“Today’s sentencing is a victory for law enforcement in the ongoing battle against people who commit crimes through our nation’s mail system,” said Patricia Armstrong, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service. “Corrupt employees, like Juan Caudillo, are especially troubling because their actions undermine trust in great public institutions.”
These matters were investigated jointly by the U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service.
This case was prosecuted by Assistant United States Attorney Andrew G. Brown of the Major Frauds Section.
Project Guardian Update: Two Felons Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Two felons appeared in federal court this week on gun charges, according to United States Attorney Mike Stuart.
Deandre Donte Coleman, 28, of Nitro, was sentenced to 36 months in prison for being a felon in possession of a firearm. Coleman’s prison sentence will be followed by three years of supervised release, and he also surrendered to law enforcement authorities any ownership interest that he may have had in the firearm involved in this offense. Coleman previously admitted that on September 2, 2019, he was riding as the front passenger in a vehicle that was stopped by law enforcement officers along MacCorkle Avenue in Jefferson. Officers discovered during the course of this traffic stop that Coleman was in possession of a 9mm semi-automatic pistol along with 11.4 grams of methamphetamine and 8.5 grams of a mixture containing fentanyl, heroin, and methamphetamine. Coleman admitted that he was in possession of the firearm, that he intended to sell the controlled substances found in his possession, and that he knew at the time he possessed the pistol that he had been previously convicted of the felony offense of distribution of cocaine base in the United States District Court in Charleston. The St. Albans Police Department and the Nitro Police Department conducted the investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
Matthew Thacker, 39, of Huntington, pled guilty to being a felon in possession of a firearm. On November 14, 2018, officers with the Huntington Police Department executed a search warrant at Thacker’s residence at 315 Oak Street in Huntington. Officers located two firearms in the home. Thacker told officers he knew he could not legally possess the firearms. Thacker was prohibited from possessing a firearm under federal law because of a 2014 conviction for the felony offenses of aggravated battery and aggravated assault in Pinellas County, Florida. Thacker faces up to 10 years in prison when he is sentenced on September 28, 2020. The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor prosecuted the case on behalf of the government.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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