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6 August 2020
Portland Tax Preparer Charged with $3 Million Tax FraudRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Portland woman has been charged with preparing more than 1,000 false and fraudulent federal income tax returns requesting over $3 million in fraudulent refunds.
A federal grand jury has returned a 25-count indictment charging Elizabeth Munoz, 36, a resident of southeast Portland, with filing false tax returns on behalf of herself and her clients.
“Falsifying tax returns to get fraudulent refunds harms every American because it takes revenue from federal programs that benefit the public,” said U.S. Attorney Williams. “Every taxpayer must file accurate returns with the IRS and pay all taxes required by law. Those who fail to do so will face significant consequences, including criminal prosecution, prison, and monetary penalties.”
“Unscrupulous return preparers create unforeseen hardships for their clients that include unexpected tax debt along with penalties and interest,” said IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Justin Campbell. “IRS-CI devotes considerable resources to ensuring all return preparers follow the law and act in good faith on behalf of their clients.”
According to court documents, from 2015 through 2018, Munoz operated a tax return preparation business that promised her clients the “biggest refund guaranteed.” Munoz allegedly prepared 1,196 false tax returns for 629 clients. She manipulated various entries on their returns to falsely claim tax credits for which her clients were not eligible.
Munoz will make her first appearance in federal court on August 27, 2020. If convicted, she faces a maximum sentence of three years in federal prison, three years supervised release, and $6.2 million in fines.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by IRS-CI and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Man Sentenced for Role in South Side Drug Trafficking ActivityRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 41 months in prison and three years of supervised release on his conviction of conspiracy to possess with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on Laffayette Fuller, 21.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications revealed that Mr. Fuller was involved in the distribution of heroin and fentanyl, serving as a runner for co-conspirator Christopher Highsmith, facilitating drug transactions for Highsmith, and carrying a firearm in connection with his drug trafficking activities. The Court was further informed that as a condition of his guilty plea on March 2, 2020, the defendant accepted responsibility for distribution of 39 grams of fentanyl and heroin in the Pittsburgh area.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pharmaceutical Representative Admits Role in Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A pharmaceutical representative today admitted his role in a conspiracy to defraud New Jersey state health benefits programs, U.S. Attorney Craig Carpenito announced.
Dan Irvine, 50, of Oceanport, New Jersey, pleaded guilty by video conference before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Between October 2015 and March 2016, Irvine participated in a conspiracy that targeted insurance plans that paid thousands of dollars for certain prescription compound medications – including vitamins and pain creams – from an out-of-state pharmacy, identified in the information as “Compounding Pharmacy.” The conspirators found patients with these insurance plans, particularly New Jersey state and local government and education employees. An entity referred to as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents; the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents; and other insurance plans. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the State of New Jersey or the other insurance plans for the amounts paid.
Irvine obtained insurance information from individuals with favorable insurance coverage and filled out prescriptions for compounded medications. Irvine selected medications based on their high insurance reimbursements and selected the maximum quantities and refills to generate the highest insurance reimbursements. Irvine then had doctors sign the prescriptions without the doctors examining the individuals or determining that the individuals had a medical necessity for the compounded medications. Irvine faxed the completed, signed prescriptions to the Compounding Pharmacy. Irvine had an agreement to receive as a commission a portion of the amount paid by the Pharmacy Benefits Administrator for prescriptions he obtained. He received $63,017 in commissions.
Irvine faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Irvine must forfeit $63,017 in criminal proceeds and pay restitution of at least $208,989. Sentencing is scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
Pennsylvania man charged with robbing Elm Grove bankRead the Press Release
WHEELING, WEST VIRGINIA – Frank L. Morrison, of Braddock Hills, Pennsylvania, was indicted this week on a bank robbery charge, U.S. Attorney Bill Powell announced.
Morrison, 54, was indicted on one count of “Bank Robbery.” Morrison is accused of robbing the United Bank in the Elm Grove section of Wheeling on September 4, 2018. Morrison is accused of taking $4,221 from the bank.
Morrison faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County Man Admits Participating in Fentanyl ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted conspiring to distribute fentanyl and distributing a quantity of fentanyl, U.S. Attorney Craig Carpenito announced.
Keith Brinkley, a/k/a “K Murder,” 30, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute and possess with the intent to distribute fentanyl and knowingly and intentionally distributing fentanyl.
According to documents filed in this case and statements made in court:
The defendant and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, the defendant and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
Each of the charges to which Brinkley pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 7, 2020.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Orange City Man Who “Sextorted” Multiple Minors Sentenced to 60 YearsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Justin Richard Testani (30, Orange City) to 60 years in federal prison for child sexual exploitation. Testani had pleaded guilty on February 6, 2020.
According to court documents and evidence presented during the sentencing hearing, for more than a year, Testani contacted multiple young girls (usually between the ages of 10 and 13) through Instagram and Snapchat. Testani frequently posed as a young, teenage girl who modeled for a prominent teen lingerie brand. Using that disguise, Testani convinced numerous victims to send him revealing photographs of themselves. After the victims sent such photographs, Testani often threatened to disseminate the photos or publicly humiliate the victims. At other times, Testani threatened to kidnap, rape, and/or kill the victims and their family members. He issued these threats to coerce victims into creating and sending him more images and videos of themselves engaged in sexually explicit conduct.
Testani also used threats to coerce certain victims into giving him the passwords to their social media accounts. After gaining those passwords, Testani often took over the accounts and used those platforms to contact and exploit the victims’ friends. The investigation revealed that Testani reached out to hundreds of young girls across the United States between December 2017 and January 2019.
"This case is a prime example of how a child can be victimized even in the safety of their own home," said Michael McPherson, Special Agent in Charge of the FBI Tampa Division. "Parents, please talk to your children about the dangers of the internet and social media and make it clear to them they are not to blame if they fall victim to a predator. The FBI, along with our law enforcement partners are dedicated to ensuring children are protected from online predators. The 60-year sentence in this case is proof of that commitment."
This case was investigated by the Federal Bureau of Investigation, the Sanford Police Department, and the Trussville (Alabama) Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operation Legend Expanded to St. Louis to Confront Violent CrimeRead the Press Release
Jeff Jensen, United States Attorney for the Eastern District of Missouri, joined the Department of Justice in officially announcing the expansion of Operation Legend to St. Louis. Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime, will be expanding into the City of St. Louis.
“The most basic responsibility of government is to protect the safety of our citizens,” said Attorney General William P. Barr. “Today, we have extended Operation Legend to Memphis and St. Louis, two cities experiencing increases in violent crime that no resident of those cities should have to accept as part of everyday life. For decades, the Department of Justice has achieved significant success when utilizing our anti-violent crime task forces and federal law enforcement agents to enforce federal law and assist American cities that are experiencing upticks in violent crime. The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.”
“Operation Legend has come to St. Louis,” said U.S. Attorney Jeff Jensen. “Today we expand our ever-present federal commitment to the City of St. Louis by welcoming federal agents and money to our City for the purpose of fighting gun and gang violence. This expansion will greatly enhance on-going crime fighting by our Organized Crime Drug Enforcement Task Force, the Joint ATF-St. Louis Metropolitan Strike Force, and the United States Marshals Service Fugitive Task Force. Our children are being caught in the crossfire and murdered in senseless acts of gun violence. I am very grateful to work with our federal, state and local law enforcement partnerships in a dedicated effort to achieve safety and security for our community. I want to thank Chief John Hayden as well as the various federal and state agencies that make this initiative possible.”
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early on the morning of June 29 in Kansas City. The operation was first launched on July 8 in Kansas City, Missouri, and is now underway in Chicago, Albuquerque, Cleveland, Detroit, and Milwaukee. Today, the expansion of Operation Legend was announced in St. Louis and Memphis.
In the City of St. Louis, the Department of Justice will supplement state and local law enforcement agencies by sending more than 50 federal investigators from the Department of Homeland Security to the City. Under the leadership of U.S. Attorney Jeff Jensen, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting violent gangs, gun crime, and drug trafficking organizations.
St. Louis is currently experiencing a significant increase in violent crime, with homicides up over 34% and non-fatal shootings are up over 13%. These resources will be utilized to address the spike in violent crime.
During a press conference to announce the expansion of Operation Legend, FBI Special Agent in Charge Richard Quinn announced that as part of the initiative, a reward of up to $25,000 would be made available for information leading to the identification and arrest of the individual or individuals responsible for the homicides of Kayden E. Johnson, two years of age at the time, and his mother Trina’ty A. Riley, 18, inside their home on April 30, 2019.
“I just need closure. My family needs peace. We just want justice. If you know anything, please contact the detectives,” said Taiesha Campbell, mother of Trina’ty and grandmother of Kayden, in connection with today’s announcement.
The Bureau of Justice Assistance will make available $1 million to support Operation Legend’s violent crime reduction efforts and shot spotter responses in St. Louis. The City is also receiving two Special Assistant United States Attorneys from the Missouri Attorney General’s Office to support violent crime prosecutions.
Operation Legend Expanded to Memphis and St. LouisRead the Press Release
Today, the expansion of Operation Legend was announced in Memphis and St. Louis. Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The Operation was first launched on July 8 in Kansas City, MO., and expanded on July 22, 2020, to Chicago and Albuquerque, and to Cleveland, Detroit, and Milwaukee on July 29, 2020.
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
“The most basic responsibility of government is to protect the safety of our citizens,” said Attorney General William P. Barr. “Today, we have extended Operation Legend to Memphis and St. Louis, two cities experiencing increases in violent crime that no resident of those cities should have to accept as part of everyday life. For decades, the Department of Justice has achieved significant success when utilizing our anti-violent crime task forces and federal law enforcement agents to enforce federal law and assist American cities that are experiencing upticks in violent crime. The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.”
As part of Operation Legend, Attorney General Barr directed the ATF, FBI, DEA, and U.S. Marshals Service to significantly increase resources into Memphis and St. Louis in the coming weeks to help state and local officials fight high levels of violent crime, particularly gun violence.
Memphis is currently experiencing a significant increase in violent crime, with homicides currently up more than 49 percent, reported gun crime up 23 percent, and aggravated assault shootings up over 19 percent over 2019. Similarly, homicides are up in St. Louis nearly 34 percent and non-fatal shootings are up over 13 percent.
In Memphis, the Department of Justice will supplement state and local law enforcement agencies by sending 16 federal investigators to the city on temporary assignment for 90 days, followed by 24 permanent agent assignments from the FBI, DEA, ATF, and Homeland Security Investigations. Under the leadership of Michael Dunavant, U.S. Attorney for the Western District of Tennessee, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting violent gangs, gun crime, and drug trafficking organizations.
The Bureau of Justice Assistance will make available $200,000 to support Operation Legend’s violent crime reduction efforts in Memphis in addition to the prior BJA grant funding award of $1.4 million to Shelby County to provide manpower, technology, equipment, and support for the sustained efforts Legend Task Force, including overtime funding for the Multi-Agency Gang Unit (MGU) and partner agency officers; a prosecutor for the Shelby County District Attorney General’s Office to handle operation arrests vertically through the state criminal justice system to ensure that arrests are followed by strategic prosecution; vehicles for MGU operations; and technological solutions to enhance investigation and prosecution of violent offenders.
The COPS Office has also made approximately $9.8 million available to the Memphis Police Department to fund the hiring of 50 officers.
The Department has also provided assistance to Memphis through the Joint Law Enforcement Operations (JLEO) fund to assist reimbursement of local law enforcement serving as federal task force officers with FBI, ATF, DEA, and the U.S. Marshals Service. The city will receive $100,000 from ATF to help local agencies defray costs associated with installing or maintaining shot detection technology.
In St. Louis, under the leadership of Jeffrey Jensen, U.S. Attorney for the Eastern District of Missouri, federal agents from ATF, DEA, FBI, and USMS, along with approximately 50 additional agents from Department of Homeland Security, will work cooperatively with the St. Louis Police Department to combat gun and gang violence, as well as assist the U.S. Marshals Service in violent fugitive apprehension efforts.
The Bureau of Justice Assistance will make available $1 million to support local law enforcement in shot spotter responses and violent crime investigations in St. Louis. With Department of Justice funding, the city is also receiving two Special Assistant U.S. Attorneys from the Missouri Attorney General’s Office to support violent crime prosecutions.
Ontario Man Charged with Bulk Cash SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Jade Martin, age 25, of Cornwall Island, Ontario, Canada, made his initial appearance today in federal court in Plattsburgh, on charges that he knowingly concealed $256,910 in United States currency in his car, with the intent to evade currency reporting requirements, and attempted to transport that currency from the United States into Canada.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Robert Dwyer, Massena Port Director, United States Customs and Border Protection (CBP).
A complaint alleges that on August 4, 2020, Martin concealed $256,910 in two boxes, and drove with these boxes to the Massena, New York, Port of Entry, where he attempted to transport them into Canada. The complaint further alleges that CBP Officers discovered the cash during an outbound inspection, after Martin denied traveling with more than $10,000 in currency. Federal law requires a person to report the transportation of currency over $10,000 upon exiting the United States. The charges in the complaint are merely accusations, and Martin is presumed innocent unless and until proven guilty.
The felony charges against Martin carry a maximum penalty of 5 years in prison and a term of supervised release of up to 3 years. If convicted, Martin may also be ordered to forfeit to the United States any property involved in the offense.
This case is being investigated by HSI and CBP, and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman.
North Carolina Man Pleads Guilty to Violating Fair Housing Act and Threatening a Family Because of Their RaceRead the Press Release
RALEIGH, N.C. – The Justice Department announced that Douglas Matthew Gurkins, 34, pleaded guilty today in federal court in the Eastern District of North Carolina to one count of criminal interference with the Fair Housing Act, for using threats of force against an African American family because of the family members’ race and because they were renting a dwelling.
According to the defendant’s plea agreement, and admissions in court, the defendant, in December 2014, drove to the home of an African American family and yelled racial slurs at the family. The defendant told the family that they did not belong in their home. The defendant then threatened to shoot the family, to include four minor children, and any other African American that came onto the property. After making this threat, the defendant brandished a metal rod in a threatening manner. The family moved out of the neighborhood a few days after this incident. Within the next four years, the defendant engaged in similar criminal conduct toward two other African American families living in the same neighborhood.
“The defendant is being held accountable for threatening an African-American family because they were occupying a house,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division of the Department of Justice will continue to investigate and prosecute those individuals who interfere with federally protected housing rights because of race, color, religion, sex, handicap, familial status or national origin.”
“This defendant threatened citizens of this District - a mom and her four children - because of their race. This is not who we are as Americans and prejudice of any kind is intolerable,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The defendant’s threats violate the laws designed to ensure fair and equal treatment for us all and I am pleased we could bring this matter to federal court to vindicate those rights and to stand with this mom and her children to see that justice is served.”
“Investigating civil rights violations is some of the most important work that we do,” said John Strong, Special Agent in Charge of the FBI in North Carolina. “No individual should live in fear because of someone’s intolerance and hatred. Mr. Gurkins’ actions to threaten the lives of African American families, essentially making them afraid inside their own homes is deplorable. Today's plea is the first step towards justice for these families."
The defendant faces a sentence of up to 10 years in prison and a maximum fine of $250,000.
The case was investigated by the FBI’s Charlotte Division, Greenville Resident Agency. Assistant U.S. Attorney Erin Blondel of the U.S. Attorney’s Office, Eastern District of North Carolina, and Trial Attorneys Shan Patel and Laura Gilson of the Civil Rights Division, Criminal Section, are prosecuting the case.
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. 2:20-cr-00031-BO.
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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.
North Carolina Man Pleads Guilty to Violating Fair Housing Act and Threatening a Family Because of Their RaceRead the Press Release
The Justice Department announced today that Douglas Matthew Gurkins, 34, pleaded guilty today in federal court in the Eastern District of North Carolina to one count of criminal interference with the Fair Housing Act, for using threats of force against an African American family because of the family members’ race and because they were renting a dwelling.
According to the defendant’s plea agreement, and admissions in court, the defendant, in December 2014, drove to the home of an African American family and yelled racial slurs at the family. The defendant told the family that they did not belong in their home. The defendant then threatened to shoot the family, to include four minor children, and any other African American that came onto the property. After making this threat, the defendant brandished a metal rod in a threatening manner. The family moved out of the neighborhood a few days after this incident. Within the next four years, the defendant engaged in similar criminal conduct toward two other African American families living in the same neighborhood.
“The defendant is being held accountable for threatening an African-American family because they were occupying a house,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division of the Department of Justice will continue to investigate and prosecute those individuals who interfere with federally protected housing rights because of race, color, religion, sex, handicap, familial status or national origin.”
“This defendant threatened citizens of this District - a mom and her four children - because of their race. This is not who we are as Americans and prejudice of any kind is intolerable,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The defendant’s threats violate the laws designed to ensure fair and equal treatment for us all and I am pleased we could bring this matter to federal court to vindicate those rights and to stand with this mom and her children to see that justice is served.”
“Investigating civil rights violations is some of the most important work that we do,” said John Strong, Special Agent in Charge of the FBI in North Carolina. “No individual should live in fear because of someone’s intolerance and hatred. Mr. Gurkins’ actions to threaten the lives of African American families, essentially making them afraid inside their own homes is deplorable. Today's plea is the first step towards justice for these families."
The defendant faces a sentence of up to 10 years in prison and a maximum fine of $250,000.
The case was investigated by the FBI’s Charlotte Division, Greenville Resident Agency. Assistant U.S. Attorney Erin Blondel of the U.S. Attorney’s Office, Eastern District of North Carolina, and Trial Attorneys Shan Patel and Laura Gilson of the Civil Rights Division, Criminal Section, are prosecuting the case.
Nine charged in $24 million COVID-relief fraud schemeRead the Press Release
The owner of a Florida talent management company, two Northeast Ohio men, and six others have been charged via criminal complaint in federal court for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Five of these complaints were unsealed today.
U.S. Attorney Justin Herdman for the Northern District of Ohio, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge (SAC) Eric B. Smith of the FBI’s Cleveland Field Office, SAC Bryant Jackson of the IRS Criminal Investigation Division’s (IRS-CI) Cincinnati Field Office, and Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG) made the announcement.
Six defendants were charged in this scheme in federal criminal complaints filed in the Northern District of Ohio in July:
- Phillip J. Augustin, 51, of Coral Springs, Florida, was charged on July 28, 2020 with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction of justice.
- Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, was charged on July 28, 2020 with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
- James R. Stote, 54, of Hollywood, Florida, and Ross Charno, 46, of Ft. Lauderdale, Florida, were charged on June 24, 2020 with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
- Deon D. Levy, 50, of Bedford, Ohio, and Abdul-Azeem Levy, 22, of Cleveland, Ohio, were charged on June 8, 2020 with wire fraud and conspiracy to commit wire fraud.
Three more defendants were recently charged with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud by federal criminal complaints filed in the Southern District of Florida on August 3, 2020. Those defendants are Damion O. McKenzie, 38, of Miami Gardens, Florida; Andre M. Clark, 46, of Miramar, Florida; and Keyaira Bostic, 31, of Pembroke Pines, Florida.
“As many of our family, friends and neighbors suffered adverse economic consequences from our nation’s response to a global pandemic, these defendants were allegedly looking for ways to profit off of our collective troubles and fears,” said U.S. Attorney Justin Herdman, “The Justice Department will continue to work long hours with our federal, state, and local partners to find and prosecute those who may have defrauded the public of funds meant to help the American economy recover from this once-in-a-century catastrophe.”
“The defendants are alleged to have coordinated a scheme to fraudulently obtain millions of dollars in PPP loans and to receive kickbacks for filing fraudulent loan applications for others,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department and our law enforcement partners are aggressively pursuing individuals who scheme to steal PPP funds intended for legitimate small businesses suffering the economic hardships of the COVID-19 pandemic.”
“While the entire world was focused on dealing with a pandemic, it is alleged that these individuals were selfishly focused on exploiting programs designed to help people survive financially during the shutdown,” said FBI SAC Eric B. Smith. “Rest assured, as our country continues to move forward, law enforcement will identify those that have financially benefited from providing fictitious information to COVID-19 assistance programs. Law enforcement will ensure these ill-gotten gains are returned so that honest, hardworking employers and employees can continue to receive the assistance they need.”
“Criminals seize on every opportunity to exploit bad situations, and this pandemic is no exception,” said Bryant Jackson, SAC, IRS-CI, Cincinnati Field Office. “The Paycheck Protection Program under the CARES Act was designed to help Americans struggling with financial hardship and IRS Criminal Investigation along with our federal law enforcement partners will be aggressive in investigating anyone who allegedly defrauds this critical program.”
The complaints unsealed today allege that the defendants conspired to obtain millions of dollars in fraudulent PPP loans. Early on in the scheme, Augustin is alleged to have obtained a fraudulent PPP loan for his company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Augustin recruited Williams to assist in a scheme with other co-conspirators to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining said loans.
Following the success of Clear Vision’s PPP application, Augustin and Williams immediately began working to obtain additional and larger PPP loans for Augustin’s associates, generally for several hundred thousand dollars for each loan and up to as much as approximately $1.24 million, according to the complaint. The applications submitted for these loans relied on fake payroll numbers, falsified IRS forms, phony bank statements, and counterfeit checks. According to the complaint, Williams allegedly facilitated the loan applications, while Augustin continued to recruit more applicants and pressured them to send their kickbacks once funds were received.
Augustin is alleged to have recruited numerous confederate PPP loan applicants using his network of business contacts from his work as a manager for professional athletes. Augustin monitored the progress of applications and of the kickback wires he was expecting. McKenzie, Clark, and Bostic are alleged to have sought PPP loans for their own companies and to have recruited other confederate PPP loan applicants in exchange for a share of the loan proceeds.
The complaint alleges that the scheme involved the preparation of at least 90 fraudulent loan applications, most of which were submitted. The defendants are alleged to have conspired to obtain PPP loans collectively worth more than $24 million dollars. Many of those applications were approved and funded by financial institutions, paying out at least $17.4 million.
The scheme allegedly included at least two loans to entities in northeast Ohio worth approximately $875,000.
According to the complaint, investigators identified more than $2.3 million in kickback wire transfers from entities that obtained sizable PPP loans or their owners. Augustin received more than $900,000 in kickback wires in a six-week period.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Northern District of Ohio cases are being prosecuted by Assistant U.S. Attorney Elliot Morrison and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.
These cases were investigated by the FBI’s Cleveland Field Office, IRS-CI Cincinnati Field Office, FBI Miami Field Office, IRS-CI Miami Field Office, the SBA-OIG, and the Federal Deposit Insurance Corporation Office of Inspector General. The U.S. Attorney’s Office for the Northern District would like to acknowledge and thank the U.S. Attorney’s Office for the Southern District of Florida for assistance with this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Phillip J. Augustin, 51, of Coral Springs, Florida, was charged on July 28, 2020 with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction of justice.
Nine Charged with $24 Million COVID-Relief Fraud SchemeRead the Press Release
The owner of a Florida talent management company and four others were charged in complaints unsealed yesterday for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The five charged defendants allegedly involved in this scheme whose complaints were unsealed yesterday are the following:
- Damion O. Mckenzie, 38, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Andre M. Clark, 46, of Miramar, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Keyaira Bostic, 31, of Pembroke Pines, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Phillip J. Augustin, 51, of Coral Springs, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction;
- Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
The four defendants allegedly involved in this scheme who were previously charged are the following:
- James R. Stote, 54, of Hollywood, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Ross Charno, 46, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
- Deon D. Levy, 50, of Bedford, Ohio, was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud and
- Abdul-Azeem Levy, 22, of Cleveland, Ohio was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud.
Mckenzie, Clark, and Bostic appeared yesterday before U.S. Magistrate Judge Patrick M. Hunt of the Southern District of Florida.
“The defendants allegedly participated in an extensive nationwide scheme to file at least 90 fraudulent applications for millions of dollars in PPP loans in exchange for illegal kickbacks of portions of the loan proceeds,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These allegations reflect an organized effort by defendants to defraud the SBA’s PPP program on a large scale by stealing funds intended for legitimate small businesses suffering from economic hardships caused by the COVID-19 pandemic. The department and our law enforcement partners will continue to aggressively pursue those who would seek to illegally exploit the ongoing national emergency for their own benefit.”
“As many of our family, friends and neighbors suffered adverse economic consequences from our nation’s response to a global pandemic, these defendants were allegedly looking for ways to profit off of our collective troubles and fears,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “The Justice Department will continue to work long hours with our federal, state, and local partners to finding and prosecuting those who may have defrauded the public of funds meant to help the American economy recover from this once-in-a-century catastrophe.”
“The United States made funds available to small business owners through the Paycheck Protection Program to ensure that our communities’ local businesses and their employees financially survive this pandemic,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Those who defraud the program with no regard for the effect that their actions of greed will have on the small business owners and employees who legitimately need the money will be vigorously prosecuted by my office.”
“During these difficult times, while hardworking American citizens are facing a pandemic and struggling to take care of their families, crimes like these literally rob the coffers of critically needed relief funds,” said Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office. “We will continue to tirelessly pursue the culprits behind these heinous schemes and bring them to justice. Any fraud of COVID-19 financial relief programs will never be tolerated.”
“As stewards of the taxpayers' funds, the FBI and our law enforcement partners are steadfast in our efforts to ensure fraud of appropriated monies provided by the CARES Act is detected, investigated, and prosecuted,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division.
“The reprehensible alleged actions of the defendants sought personal gain at the expense of taxpayers,” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively pursue fraud in the PPP and other SBA programs aimed at assisting the nation’s small businesses during the pandemic. I want to thank the Department of Justice and our law enforcement partners for their pursuit of justice.”
The complaints allege that Augustin, Stote, Charno, Williams, Mckenzie, Clark, and Bostic conspired with others to obtain millions of dollars in fraudulent PPP loans. Early in the scheme, Augustin allegedly obtained a fraudulent PPP loan for his company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Augustin and Williams allegedly then began to work with other co-conspirators on a scheme to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining the forgivable loans for them.
Augustin is alleged to have recruited numerous confederate PPP loan applicants using his network of business contacts from his work as a manager for professional football players, and to have monitored the progress of applications, and of the kickback wires he was expecting. Mckenzie, Clark, and Bostic are alleged to have sought PPP loans for their own companies and to have recruited other confederate PPP loan applicants in exchange for a share of the loan proceeds. Williams also allegedly assisted in the scheme, including by obtaining falsified documents to include in PPP applications and coordinating communications among participants in the scheme to facilitate the fraudulent PPP applications.
The complaints allege that scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted. Augustin, Williams, Mckenzie, Clark, Bostic, and other conspirators in the scheme are alleged to have applied for PPP loans that are together worth more than $24 million dollars. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the IRS-CI Cincinnati and Miami Field Offices, the FBI’s Cleveland and Miami Field Offices, and the SBA-OIG. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elliot Morrison for the Northern District of Ohio and David Turken for the Southern District of Florida are prosecuting the cases. The Justice Department also acknowledges and thanks the Federal Deposit Insurance Corporation Office of Inspector General for its assistance investigating this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Damion O. Mckenzie, 38, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
New Orleans Man Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that DAMIAN LABEAUD (“LABEAUD”), age 48, of New Orleans, entered a plea of guilty today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty plea, LABEAUD, along with his co-conspirators and others, beginning at a time unknown and continuing through the present, conspired to commit wire fraud in connection with staged accidents, including two that occurred on June 6, 2017, and June 12, 2017. Previously, on January, 30, 2020 and May 28, 2020, six of LABEAUD’s codefendants (Mario Solomon, Larry Williams, Lucinda Thomas, Mary Wade, Judy Williams, and Dashontae Young) all tendered guilty pleas and admitted to their knowing participation in a scheme to stage automobile accidents in the New Orleans area in an effort to defraud insurance and trucking companies.
Today, LABEAUD admitted to acting as the driver, or “slammer,” in both the June 6 and the June 12 staged automobile accidents alleged in the Superseding Indictment. As the “slammer,” LABEAUD intentionally caused the collisions with the 18-wheeler tractor-trailers. After the accidents, LABEAUD immediately exited the vehicles in which he had staged the accidents and fled the scene with the help of a codefendant who was acting as a “spotter,” or driver of a getaway car. LABEAUD’s codefendants received a total of $43,000.00 as a result of the fraudulent lawsuits that were filed on their behalf for the June 6 and June 12 accidents.
According to today’s guilty plea, LABEAUD staged numerous accidents for various attorneys, including at least 40 staged accidents with 18-wheeler tractor-trailers for Attorney A. Per their agreement, after each staged accident, LABEAUD would connect the passengers in the staged accidents with Attorney A so that Attorney A could represent them in conjunction with the accident. Attorney A would then pay LABEAUD $1,000.00 for every passenger that was involved in a staged accident with an 18-wheeler tractor-trailer. Attorney A would either pay LABEAUD an advance, or would pay him for the accidents soon after they were staged. Attorney A knew that LABEAUD was staging the accidents and the two would often discuss the accidents either in person or over the phone, through calls or text messages.
LABEAUD faces a maximum sentence of five (5) years. Upon release from prison, LABEAUD also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for November 19, 2020, at 2:00 p.m., before U.S. District Judge Eldon Fallon.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit; Assistant U.S. Attorney Shirin Hakimzadeh; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Maria Carboni.
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New Jersey Man Admits Trafficking and Unlawfully Possessing FirearmsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man with five prior felony convictions today admitted illegally selling multiple firearms, U.S. Attorney Craig Carpenito announced.
Brandon Groce, 36, of Newtonville, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of illegally engaging in the business of dealing in firearms and one count of possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On six different dates between February 2019 and September 2019, Groce met with an individual at a parking lot in Paulsboro, New Jersey, for the purpose of selling firearms. During each meeting, Groce sold at least one firearm and ammunition for cash. Groce lacked a license to sell firearms. At the time of the sales, Groce had previously been convicted in New Jersey Superior Court of five felonies, including a firearms offense, resisting arrest, and three controlled substances offenses.
The count of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. The charge of engaging in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer carries a maximum potential penalty of up to five years in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for Dec. 16, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Newark Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office Criminal Division in Camden.
Neopit Man Receives Prison Sentence for Child Sexual Abuse on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that an individual received a 30-month sentence following a conviction for child sexual abuse on the Menominee Indian Reservation. The man, Robert Kapishkowit (age: 26), formerly lived in Neopit, which is a community on the Menominee Indian Reservation.
The sentence, imposed on August 6, 2020, by Senior United States District Judge William C. Griesbach, was the result of a guilty plea entered by the defendant on January 22, 2020. Kapishkowit pleaded guilty to Sexual Abuse of a Minor in violation of Title 18, United States Code, Sections 2243(a) and 1153(a). In addition to the prison sentence, Judge Griesbach imposed 60 months of Supervised Release.
The investigation revealed that on June 11, 2018, the defendant caused a minor female to engage in a sex act while at a residence in Neopit on the Menominee Indian Reservation. Kapishkowit later admitted he engaged in the sex act with the female, who was between 12 and 16 years of age.
In sentencing the defendant, Judge Griesbach noted the seriousness of the crime the defendant committed. Judge Griesbach also remarked upon the need to deter those would might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecutedThe 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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Montgomery Man Sentenced to 70 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On Tuesday, August 4, 2020, Johnathan Earl Chappell, a 31-year-old from Montgomery, Alabama, was sentenced to 70 months in prison after pleading guilty to a federal firearms charge, announced United States Attorney Louis V. Franklin, Sr. Chappell was also ordered to serve three years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court records, on October 4, 2017, deputies from the Montgomery County Sheriff’s Office encountered Chappell and two others standing beside a vehicle on the side of the road. After approaching the vehicle to ask if assistance was needed, the deputies detected a strong smell of marijuana coming from the vehicle. When they searched the vehicle, they found three handguns and discovered that Chappell and one of his companions had outstanding warrants for their arrest. Chappell admitted to law enforcement that one of the firearms belonged to him although he has a previous felony conviction and is prohibited from possessing a firearm. Unknown to the deputies at the time of their encounter, the Montgomery Police Department had developed Chappell and his two acquaintances as suspects in a robbery that occurred the day before. State charges are pending for Chappell.
On September 11, 2019, Chappell was indicted by a federal grand jury for being a felon in possession of a firearm. He pleaded guilty to the firearms charge on January 27, 2020.
The Montgomery County Sheriff’s Office, the Montgomery Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. Assistant United States Attorney Thomas Govan prosecuted the case.
Mexican National Pleads Guilty and Is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that ELPIDIO JAIMES-LOPEZ, age 41, pled guilty and was sentenced on July 30, 2020 by U.S. District Judge Martin L.C. Feldman to credit for time served on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a). The Mexican national had been in custody since January 15, 2020. The hearing was conducted by video conference because of the COVID-19 situation. He faces deportation once again.
According to the indictment, JAIMES-LOPEZ (“JAIMES”) reentered the United States after he was previously deported on November 28, 2019. JAIMES-LOPEZ faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Members and Associates of Violent Newark Street Gang Charged for Roles in Drug ConspiracyRead the Press Release
NEWARK, N.J. – Three members and associates of a violent street gang operating in Newark made their initial court appearances today on charges of conspiring to distribute narcotics, U.S. Attorney Craig Carpenito announced.
Zaire Dickerson, a/k/a “Tarzan,” 23, Shaquejah Wilson-Jones, a/k/a “Kiwi,” 23, and Nassir Grimsley, a/k/a “Chop,” 19, all of Newark, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute heroin and cocaine base. They all appeared today by videoconference before U.S. Magistrate Judge Edward S. Kiel.
According to documents filed in this case and statements made in court:
Law enforcement has been investigating the 793 set of the Bloods street gang in Newark since at least June 2019. That investigation has revealed that Dickerson and Grimsley are members of the 793 Bloods and distribute narcotics for the gang. Wilson-Jones is associated with the 793 Bloods and distributes narcotics with Dickerson and Grimsley.
Members of this 793 set have been engaging in violent disputes with other gangs, trafficked narcotics, and committed various firearms offenses within and around Newark for years. Several recent violent crimes in Newark and elsewhere, are believed to be related to this gang’s operations.
The narcotics conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1,000,000 fine.
U.S. Attorney Carpenito credited the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigations leading to the charges.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Managers, Supervisors, and Human Resource Personnel Indicted for Immigration Crimes and other Federal Crimes Stemming from Largest Single-State Worksite Enforcement Action in Nation’s HistoryRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst, joined by Acting Director of U.S. Immigration and Customs Enforcement Matt Albence, ICE’s Homeland Security Investigations (HSI) New Orleans Acting Special Agent in Charge Gilbert Trill, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Rafiq Ahmad announced today the unsealing of indictments returned by a Federal Grand Jury in the Southern District of Mississippi against four individuals who were managers, supervisors, or human resources personnel at companies where criminal and administrative search warrants were executed in August 2019 and 680 illegal aliens were detained.
“This office has a successful history of prosecuting employers for violating our immigration laws, and today marks another step in ensuring that justice is fairly and impartially done, no matter the law-breaker. I want to thank our partners at ICE Homeland Security Investigations and our office’s federal prosecutors for doggedly pursuing these criminal violations. The indictments unsealed today mark the beginning, not the end, of our investigations and prosecutions. Rest assured that we will continue to pursue criminal wrongdoers and enforce our criminal laws wherever the evidence may take us,” said U.S. Attorney Mike Hurst.
“The results of this ongoing criminal investigation illustrate the importance of strong interior enforcement. The arrests made last year pursuant to U.S. Immigration and Customs Enforcement’s execution of more than a dozen search warrants, have thus far yielded 126 indictments, 117 criminal arrests and 73 convictions. In total, more than 403 individuals falsified social security information in order to gain illegal employment in the United States,” said acting ICE deputy director and senior official performing the duties of the director Matthew T. Albence. “Companies who intentionally or knowingly base their business model on an illegal workforce deprive law abiding citizens and lawful immigrants of employment opportunities, which are especially critical as our economy looks to recover from the challenges faced by the COVID-19 pandemic. ICE Homeland Security Investigations will continue its commitment to uphold the laws Congress has passed. These laws protect jobs for the legal workforce, reduce incentives for illegal migration, and eliminate unequitable financial advantages for businesses employing illegal immigrants.”
INDICTMENT OF SALVADOR DELGADO-NIEVES OF A&B, INC.:
According to the indictment, Salvador Delgado-Nieves, 57, of Pelahatchie, Mississippi, was charged with three counts of harboring illegal aliens, three counts of assisting illegal aliens in falsely representing themselves to be United States citizens, three counts of assisting illegal aliens in obtaining false Social Security cards, and one count of making a false statement to law enforcement officials when he denied having hired illegal aliens at A&B, Inc. in Pelahatchie.
Delgado-Nieves faces up to 74 years in federal prison and $2.5 million in fines for these criminal violations, as Counts 1-6 carry a maximum of ten years in prison and a $250,000 fine for each violation, Counts 7-9 carry a maximum of three years in prison and a $250,000 fine for each count, and Count 10 carries a maximum of five years in prison and a $250,000 fine.
INDICTMENT OF IRIS VILLALON OF A&B, INC.:
According to the indictment, Iris Villalon, 44, of Ocean Springs, Mississippi, was indicted on one count of harboring an illegal alien, and one count of making false statements when she denied that she had hired illegal aliens for employment with A&B, Inc., in Pelahatchie, and one count of causing false employer quarterly wage reports to be filed when she knew the Social Security number represented in such reports was not assigned by the Social Security Administration to that specific illegal alien employee listed therein.
Villalon faces up to 20 years in prison and $750,000 in fines for these criminal violations, as Count 1 carries a maximum of ten years in prison and a $250,000 fine, and Counts 2-3 carry a maximum of up to five years in prison and a $250,000 fine on each count.
INDICTMENT OF CAROLYN JOHNSON AND AUBREY “BART” WILLIS OF PEARL RIVER FOODS LLC:
According to the indictment, Carolyn Johnson, 50, of Kosciuskio, Mississippi, was a Human Resource Manager and Aubrey “Bart” Willis, 39, of Flowery Branch, Georgia, was the Manager at Pearl River Foods LLC in Carthage, Mississippi. Johnson was indicted on six felony counts of harboring an illegal alien as well as one count of wire fraud and two counts of aggravated identity theft. Willis was indicted on five counts of harboring an illegal alien.
The indictment charges both defendants with harboring illegal aliens following the execution of federal warrants at the Pearl River Foods facility on August 7, 2019. Johnson was also indicted for fraud and aggravated identity theft in connection with a grant from the State of Mississippi for reimbursement for on the job training for employees of Pearl River Foods. As set forth in the indictment, Johnson submitted claims for reimbursement for on the job training that never occurred.
If convicted, Johnson faces a maximum of up to 84 years in prison and $2.25 million in fines, with Counts 1-6 carrying a maximum of ten years in prison and a $250,000 fine for each violation, Count 7 carrying a maximum of twenty years in prison and a $250,000 fine for each violation, and Counts 8-9 carrying a mandatory minimum of 2 years in prison and a $250,000 fine for each violation.
If convicted, Willis faces a maximum of up to 50 years and $1.25 million in fines, Counts 1-5 carrying a maximum of ten years in prison and a $250,000 fine for each violation.
Villalon, Johnson and Willis will appear for arraignment before United States Magistrate Judge Linda R. Anderson today at 1:30 p.m. Delgado-Nieves will appear before U.S. Magistrate Judge Keith Ball at 2:30 pm today for his arraignment. The case against Johnson and Willis has been assigned to Chief U.S. District Judge Daniel P. Jordan III. The cases against Villalon and Delgado-Nieves have been assigned to U.S. District Judge Carlton Reeves.
These cases were investigated by ICE’s Homeland Security Investigations and are being prosecuted by Assistant United States Attorney Lynn Murray.
On August 7, 2019, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, in partnership with the U.S. Attorney’s Office for the Southern District of Mississippi, executed multiple federal criminal and administrative search warrants at seven sites across central Mississippi. This was the largest single-state worksite enforcement operation in our nation’s history, resulting in the detention of 680 illegal aliens and the prosecution of 119 illegal aliens for stealing the identities of American citizens, falsifying immigration documents, fraudulently claiming to be United States citizens, and illegal re-entering the country after have been deported, among other federal crimes.
The investigations of federal criminal violations continue.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Leader of International Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
RALEIGH, N.C. – A man from Mexico pleaded guilty today to two offenses: conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine (Count One); and possession with intent to distribute five kilograms or more of cocaine, and aiding and abetting (Count Two).
According to court documents and the Drug Enforcement Administration (DEA), Bernave Millan-Rascon, also known as “Berna,” 40 years old, was one of two leaders of an international cocaine trafficking organization based in Mexico. Millan-Rascon directed the shipment of multi-kilogram quantities of cocaine from Mexico into Texas, and then into other parts of the United States, including the Eastern District of North Carolina.
Agents conducted a wiretap investigation and seized 16 kilograms of cocaine, $173,100, and two firearms in Benson, North Carolina and Willow Spring, North Carolina. During the wiretap, agents recorded phone calls in which the Defendant directed the shipment of large amounts of cocaine into North Carolina.
The Defendant was extradited from Colombia, South America for prosecution in the Eastern District of North Carolina. Millan-Rascon faces no less than ten years' imprisonment, and a maximum of life imprisonment, when he is sentenced during the court’s November 2020 term.
Three co-conspirators have previously been convicted and sentenced: Carlos Miranda Lopez (120 months’ imprisonment); Francisco Javier Rascon-Millan (12 months and 1 day imprisonment); and Malcolm Jamar Hird (120 months’ imprisonment).
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Terrence W. Boyle accepted the plea. The Drug Enforcement Administration (DEA), the Wilson Police Department, the Raleigh Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, and the Wayne County Sheriff’s Office assisted in this investigation. Assistant U.S. Attorney Scott A. Lemmon is prosecuting the case.
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. 5:18-CR-425-BO-1.
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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.
Lawrence man charged with hate crime for making racially-motivated threats toward black neighbor, and with unlawful possession of firearmsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Shepard T. Hoehn, 50, of Lawrence, Ind., has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms. The complaint was unsealed today in federal court. A copy of the criminal complaint and affidavit are attached to this release.
“Although the First Amendment protects hateful, ignorant and morally repugnant beliefs and speech, it does not protect those who choose to take criminal actions based on those beliefs,” said Minkler. “This office will continue to prosecute federal hate crimes to the fullest extent of the law.”
As alleged in the criminal complaint, Hoehn intimidated and interfered with an African-American man’s right to occupy his home because of his race and color. Specifically, Hoehn created and displayed a swastika on a fence facing the man’s property; placed and burned a cross above the fence line facing the man’s property; created and displayed a large sign next to the swastika containing a variety of anti-Black racial slurs; visibly displayed a machete near the sign; and loudly played the song “Dixie” on repeat.
The Lawrence Police Department and the FBI were called to investigate. During the investigation, Hoehn acknowledged he was angry over a dispute with the neighbors and knew his actions would cause his neighbors to feel intimidated and be afraid.
Subsequently, federal and local law enforcement executed search warrants at Hoehn’s residence. During the search several firearms and drug paraphernalia were located. Agents also discovered that Hoehn was a fugitive from a case in Missouri and federal law prohibited Hoehn from possessing firearms.
This case was investigated by the FBI and the Lawrence Police Department. Assistant United States Attorney Brad Shephard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
“The FBI takes allegations of civil rights violations very seriously and will not tolerate harassment and intimidation directed at individuals because of their race, sexual identity or religious beliefs," said Special Agent in Charge Paul Keenan, FBI Indianapolis. “Such incidents represent not just an attack on an individual, but also on the victim’s community, and are intended to create fear. The FBI and our law enforcement partners will continue to work to identify those committing these acts to ensure the rights of all Americans are protected.”
A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hoehn faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000 for each of the three charged offenses.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting the Civil Rights Reporting Portal located at civilrights.justice.gov. The form is fully accessible to people with disabilities and also available in both English and Spanish. Individuals can still call the U.S. Attorney’s Office Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free) or 202-514-3827.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to identify, investigate, and prosecute civil rights violations that rise to the level of criminal conduct. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 7.1)
Last Defendant Sentenced in Multi-State Methamphetamine and Fentanyl Trafficking ConspiracyRead the Press Release
LONDON, Ky. - A Somerset, Kentucky, man, Michael Davidson, 33, was sentenced in federal court on Thursday, to 85 months in prison, by U.S. District Court Judge Robert Wier, for conspiracy to distributing 50 grams or more of methamphetamine and 40 grams or more of fentanyl.
According to his guilty plea agreement, Davidson admitted that, from October 2018 through February 5, 2019, he conspired with others to distribute methamphetamine and fentanyl. Specifically, Davidson would travel to Dayton, Ohio, to meet with a co-conspirator who was his source of supply for the drugs. Davison and his co-consiprator would then return to Pulaski County, where they distributed the drugs.
Davidson’s co-conspirators were sentenced May and June 2020. Shumaure De’Quan, 27, of Dayton, Ohio, was sentenced to 120 months and five years of supervised release. Dennis Shumaker, 61, of Somerset, was sentenced to 60 months and five years of supervised release. Tommy W. Vaughn, 42, of Somerset, was sentenced to 128 months and eight years of supervised release.
Under federal law, Davidson and his co-defendants must serve 85 percent of their prison sentences. Davidson will be under the supervision of the U.S. Probation Office for four years after his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly made the announcement.
The investigation was directed by the FBI and Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Jenna Reed.
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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KC Man Charged with Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court for his role in a conspiracy to commit at least seven armed robberies of local businesses, primarily fast food restaurants.
Chase M. Murphy, 19, was charged in a three-count criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Tuesday, Aug. 4. That complaint was unsealed and made public today upon his arrest and initial court appearance. Murphy remains in federal custody pending a detention hearing.
The federal criminal complaint alleges that Murphy participated in a conspiracy to commit a series of armed robberies of local businesses from May 28 to July 12, 2019. Murphy is also charged with one count of robbing the Taco Bell at 5925 Independence Ave., Kansas City, Mo., at gunpoint on May 28, 2019. The complaint also charges Murphy with brandishing firearms during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, a brick was thrown through the drive-through window of the Taco Bell on May 28, 2019, shattering the glass. Murphy and a co-conspirator, both carrying handguns, allegedly entered the restaurant through the broken window. They pointed their guns at the heads of two employees, the affidavit says, and ordered one to open the cash register. They took $300 from the register and fled through the broken window.
The affidavit cites six additional armed robberies, including
• Burger King, 1102 E. 47th St., Kansas City, Mo., on June 18, 2019; • Family Dollar, 1201 E. Meyer Blvd., Kansas City, Mo., on June 25, 2019; • McDonald’s, 6996 Eastwood Trafficway, Kansas City, Mo., on June 26, 2019; • McDonald’s, 6701 E. Front St., Kansas City, Mo., on June 28, 2019; • Taco Bell, 5925 Independence Ave., Kansas City, Mo., on July 1, 2019; • Taco Bell, 4017 Blue Ridge Cutoff, Kansas City, Mo., on July 1, 2019.On July 12, 2019, police officers in Raytown, Missouri, responded to a suspicious vehicle that was parked with its lights off. When officers arrived, the driver of the 2003 Ford Escape turned on the vehicle’s lights, placed the vehicle in drive, and accelerated toward and then around the patrol vehicle. Officers pursued the vehicle until it struck a wall and became disabled. The driver and two passengers – one of whom was Murphy – attempted to flee on foot. They were arrested by officers, who also searched the Escape and found two handguns.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department and the Raytown, Mo., Police Department.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Seeks Forfeiture of Two Commercial Properties Purchased with Funds Misappropriated from Privatbank in UkraineRead the Press Release
Both Properties Worth a Combined $70 Million
MIAMI – The United States filed two civil forfeiture complaints today in the U.S. District Court for the Southern District of Florida alleging that commercial real estate properties in Louisville, Kentucky, and Dallas, Texas, both acquired using funds misappropriated from PrivatBank in Ukraine, are subject to forfeiture based on violations of federal money laundering statutes.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
The complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the Complaints, in the United States, associates of Kolomoisky and Bogoliubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of approximately $70 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida, International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
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/.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case nos. 20-cv-23278 and 20-cv-23279.
Justice Department Seeks Forfeiture of Two Commercial Properties Purchased with Funds Misappropriated from PrivatBank in UkraineRead the Press Release
The United States filed two civil forfeiture complaints today in the U.S. District Court for the Southern District of Florida alleging that commercial real estate in Louisville, Kentucky, and Dallas, Texas, both acquired using funds misappropriated from PrivatBank in Ukraine, are subject to forfeiture based on violations of federal money laundering statutes.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
The complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States. As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.
As alleged in the Complaints, in the United States, associates of Kolomoisky and Bogoliubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them. They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters. The buildings have a combined value of approximately $70 million.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection. International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
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/.
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.
Jamestown Man Pleads Guilty to Methamphetamine Distribution ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Jacob Komenda, 24, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on April 27, 2019, members of the Jamestown Metro Drug Task Force executed a New York state search warrant at the defendant’s residence on Partridge Street in Jamestown. Officers recovered methamphetamine and other drug paraphernalia throughout the residence, as well as a 12 gauge shotgun and a stun gun.
On September 5, 2019, investigators executed a second state search warrant at the defendant’s residence, this time on Fairview Avenue in Jamestown, and a federal arrest warrant. Komenda had $3,182 in cash in his shorts pocket, which was proceeds of his drug trafficking activities. Investigators also recovered methamphetamine and various drug paraphernalia from the residence.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for November 9, 2020, at 12:30 p.m. before Judge Arcara.
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Jamestown Man Going to Prison for More Than 12 Years After Being Convicted of Selling Meth and A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kyle Kamholtz, 33, of Jamestown, NY, who was convicted of possessing with intent to distribute methamphetamine, and possessing of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 152 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that the defendant was identified as a methamphetamine distributor in the Jamestown, NY, area during an investigation that began in November 2017 by the Jamestown Police Department.
The investigation included a series of controlled purchases of methamphetamine from the defendant, several vehicle and traffic stops that resulted in Kamholtz’s arrest for possession of methamphetamine and a firearm, and the execution of two search warrants at the defendant’s McKinley Avenue residence. Investigators seized a firearm, methamphetamine, scales, packaging, and other drug distribution paraphernalia.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Indictment Charges Five Men for Involvement in Bridgeport Courthouse ShootingRead the Press Release
A federal grand jury in New Haven has returned an indictment charging five Bridgeport men with multiple offenses stemming from their alleged involvement in an afternoon shooting in front of a state courthouse in Bridgeport in January.
Today’s announcement was made by John H. Durham, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Armando J. Perez; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England.
The indictment, which was returned on August 5 and unsealed today following the arrest of four of the five defendants, charges
MARQUIS ISREAL, 24
ASANTE GAINES, 23
DESTINE CALDERON, 25
DIOMIE BLACKWELL, 23
LAHEEM JONES, 25Isreal, Calderon, Blackwell and Jones were arrested today. They appeared before U.S. Magistrate Judge Holly B. Fitsimmons via video conference and are detained. Gaines is detained in state custody on unrelated charges.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals and Bridgeport Police are actively investigating members of multiple Bridgeport-based groups, including members of the “Greene Homes Boys” or “Hots” (“GHB/Hots”), a group based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members are involved in narcotics trafficking and numerous acts of violence, including murder. At various times, GHB/Hots members have formed alliances with other Bridgeport groups, including the Original North End (“ONE”) to target rival gang members.
On January 27, 2020, at 12:11 p.m., Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims – Trevon Wright, Khalil Heard, Jaffar Ali, Jaheim Warren – had been shot while sitting inside a black Chevrolet Impala. Wright was shot in the side of his chest, and has been left paralyzed. Heard sustained multiple gunshot wounds to his back, shoulder and wrist. Ali was grazed in the head and shot in the left thumb, and Warren was grazed in the ribs. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
As alleged, this shooting is part of a larger ongoing investigation targeting the GHB/Hots, ONE and rival gangs.
The indictment charges Isreal, Gaines, Calderon, Blackwell and Jones with one count of assault with a dangerous weapon, attempted murder/aiding and abetting in assault with a dangerous weapon, and attempted murder, all in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. The assault offense carries a maximum term of imprisonment of 20 years and the attempted offenses carry a maximum term of imprisonment of 10 years. The five defendants are also charged with conspiracy to commit murder/conspiracy to commit assault with a dangerous weapon. The conspiracy to commit murder offense carries a maximum term of imprisonment of 10 years and the conspiracy to commit assault offense carries a maximum term of imprisonment of three years.
The indictment also charges Isreal with one count of using and discharging a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive sentence of at least 10 years, and one count of possession with intent to distribute heroin, cocaine base (“crack”) and fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
“The federal charges against these five defendants are the result of an extensive investigation conducted by a partnership of law enforcement entities formed to address the surge in violent crime in the city of Bridgeport,” said U.S. Attorney Durham. “The U.S. Attorney’s Office and the Bridgeport State’s Attorney’s Office are jointly supervising the investigation, and federal and state prosecutors worked seamlessly to ensure that appropriate charges were brought. I applaud the collaborative efforts of the Bridgeport Police Department, ATF, FBI and DEA in bringing those who are alleged to be responsible for this reckless and violent incident to stand trial for their actions. I also thank the forensic examiners at the Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services for their timely and expert analysis pertaining to DNA and ballistic evidence that has been critical to this investigation. Finally, I want to stress that while this is a significant and substantial prosecution that will assist in quelling violence in Bridgeport, our work is far from over. We continue to jointly investigate other violent acts in Bridgeport, and the groups, gangs or individuals responsible for them.”
“I would like to express my sincere appreciation to United States Attorney John H. Durham for his strong commitment to public safety in the city of Bridgeport,” said Chief Perez. “I also want to thank all of our federal and state partners. This was a great effort on everyone’s part.”
“Continued cooperation among local, state, and federal agencies is essential to stem the rising tide of violence in our community so that our youth can avail themselves to opportunities in education and employment, and all residents can enjoy peace and security,” said State’s Attorney Corradino. “I look forward to more successful interagency coordination and express my appreciation to all of the outstanding work by all those involved in this investigation.”
“This investigation is an example of ATF’s commitment to working with our law enforcement partners at the Bridgeport Police Department, DEA and FBI, said ATF Special Agent in Charge Brady. “Together we identified, targeted, investigated and arrested alleged violent criminals. Today’s arrests should serve as a warning that we will not tolerate gang related violence and those who cause it.”
“This indictment and these arrests are the result of the around the clock investigative work by city, state and federal law enforcement despite the ongoing challenges in our communities,” said FBI Special Agent in Charge Sundberg. “The alleged brazen violent acts by these individuals showed their blatant disregard for life of innocent people entering and exiting the court house. We will continue to vigorously pursue those bad actors that disrupt and diminish the quality of life for law abiding citizens.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities,” said DEA Special Agent in Charge Boyle. “These crimes rob the neighborhoods of safety and hold law abiding citizens of Connecticut hostage to drug-fueled lawlessness. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
“The Department of Emergency Services and Public Protection, Division of Scientific Services forensic analysts utilized the NIBIN and CODIS databases to provide timely forensic investigative leads to federal, state and local law enforcement agencies,” said Dr. Guy M. Vallaro, Director of the Department of Emergency Services and Public Protection’s Division of Scientific Services.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle and Karen L. Peck.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Indiana Man Charged with Hate Crime for Making Racially-Motivated Threats Towards Black Neighbor, and with Unlawful Possession of FirearmsRead the Press Release
WASHINGTON – The Justice Department announced today that Shepherd Hoehn, 50, has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms.
According to documents filed in connection with the complaint, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed of a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located. Agents also discovered that Hoehn was a fugitive from a case in Missouri and unable to lawfully possess firearms.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hoehn faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000 for each of the three charged offenses.
This case was investigated by the FBI and the Lawrence Police Department. Assistant United States Attorney Brad Shephard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division are prosecuting the case.
Houston Attorney Sentenced to Prison for Offshore Tax Evasion SchemeRead the Press Release
A Houston, Texas, attorney was sentenced to 24 months in prison for conspiring to defraud the United States and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
In September 2019, a jury convicted Jack Stephen Pursley, also known as Steve Pursley, of conspiring with a client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping. According to the evidence presented at trial, Pursley knew that the client had never paid taxes on these funds so Pursley designed and implemented a scheme to transfer the untaxed funds from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States. Pursley helped to conceal the movement of funds from the Internal Revenue Service (IRS) by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.
Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. In 2009 and 2010, Pursley evaded the assessment of and failed to pay the taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital. Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase personal assets, including a vacation home in Vail, Colorado, and property in Houston, Texas.
In addition to the term of imprisonment, U.S. District Judge Lynn N. Hughes ordered Pursley to serve 2 years of supervised release and to pay approximately $1,788,753 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty, Grace Albinson, and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Green Energy Fraudster Sentenced to Seven Years in Prison for Scamming Multiple Federal Agencies and CustomersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that David Dunham, 40, of Bethlehem, PA was sentenced to serve 84 months in prison, followed by three years of supervised release, and ordered to pay over $10.2 million in restitution by United States District Court Judge Jeffrey L. Schmehl.
Following a four week trial in April 2019, a federal jury convicted Dunham, owner of Smarter Fuel LLC in Wind Gap, PA, and co-owner of Greenworks Holdings LLC in Allentown, PA, of conspiracy to commit wire fraud and to defraud the United States, wire fraud, filing false tax documents, and obstruction of justice. The conviction arose from Dunham’s planning and execution of a scheme to defraud the Environmental Protection Agency (EPA), the Internal Revenue Service (IRS), the United States Department of Agriculture (USDA), and his customers, to obtain renewable fuel credits in his “green energy” biofuel business.
To carry out his green energy scam, from 2010 to 2015 Dunham fraudulently applied for, received, and sold EPA “credits” for producing biofuels that he, in fact, did not produce and, in many instances, had never possessed in the first place. Dunham also sought and received millions of dollars from the IRS and the USDA based on the same falsehoods. In total, based on the repeated falsehoods he told the federal agencies, Dunham obtained nearly $50 million in fraudulent revenue. Dunham’s co-defendant, Ralph Tomasso, the co-owner of Greenworks, previously pleaded guilty to conspiracy to defraud federal programs.
The evidence at trial also showed that Dunham engaged in multiple cover-ups designed to hide his crimes from authorities. These included altering his accounting records the day before an IRS audit in 2010, and providing a USDA auditor with dozens of falsified records, which Dunham had ordered an employee to fabricate, during an audit in 2012.
“David Dunham is a thief, dressed up in ‘green energy’ clothing,” said U.S. Attorney McSwain. “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.”
“This sentence sends a clear message that the Department of Justice will not tolerate fraud and will not hesitate to prosecute those who seek to undermine support for true American-made renewable fuel,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Mr. Dunham’s crimes were longstanding and elaborate, but this did not stop the Department from ensuring that such crimes are punished and justice is done.”
“David Dunham used false and fraudulent pretenses to steal millions of dollars from the Government,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “His loss of liberty today is the price he must pay for scamming the Government and stealing from hard working American taxpayers.”
“Today’s sentencing demonstrates there are real consequences for those defrauding the Renewable Identification Numbers (RINs) program,” said Director Jessica Taylor of EPA’s Criminal Investigation Division. “EPA, together with our federal partners, uncovered criminal activities by the defendants, and in doing so levelled the playing field for those who legally participate in the RINs program.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Agriculture’s Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley and Trial Attorney Adam Cullman of the ENRD.
Georgia man charged with having more than 50 grams of methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – James Matthew Hembree, of Snellville, Georgia, was indicted today on a methamphetamine charge, U.S. Attorney Bill Powell announced.
Hembree, 39, was indicted by a grand jury on one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Hembree is accused of having 50 grams or more of methamephtamine in September 2019 in Ohio County.
Hembree faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia businessman charged with hoarding and price gouging face masks in violation of Defense Production ActRead the Press Release
ATLANTA - Milton Ayimadu has been arraigned on federal charges of hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). Ayimadu was charged by a criminal information.
“Ayimadu allegedly saw the unprecedented COVID-19 global pandemic as an opportunity to make a profit,” said U.S. Attorney Byung J. “BJay” Pak. “Desperate to find personal protective equipment during the pandemic, thousands of customers unfortunately paid his inflated prices.”
“It is disheartening that anyone is alleged to have taken advantage of consumers who are desperate to acquire protective equipment that could save theirs, and other people’s lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Using the resources of all of our federal partners, we are making every effort to pursue anyone who tries to take advantage of citizens during this global pandemic.”
“The Postal Inspection Service is committed to investigating individuals and companies that intentionally hoard critical protective supplies or sell those items above market prices during the COVID-19 global pandemic,” said Inspector in Charge Tommy D. Coke. “Postal Inspectors will continue to coordinate with our law enforcement partners to ensure these violators are brought to justice.”
“IRS Criminal Investigation will continue to defend our citizens against those exploiting the COVID-19 global pandemic for personal benefit,”, said James E. Dorsey, Special Agent in Charge IRS-Criminal Investigations. “Today’s charges show IRS Criminal Investigation is committed to utilizing our financial expertise wherever we are needed in coordination with other agencies.”
“When the nation needed facemasks the most, Ayimadu decided to turn our fears into dollars,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are working diligently to investigate and arrest those criminals that have decided to use illegal business practices to increase their profits during this global pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: from early March 2020 to May 2020, during the COVID-19 global pandemic, Ayimadu engaged in hoarding and price gouging of more than 200,000 face masks in violation of the DPA.
On March 18, 2020, as COVID-19 spread across the country, the President of the United States invoked the powers of the DPA, which prohibits hoarding and price gouging–that is, selling in excess of prevailing market prices–certain materials that are designated as scarce materials. Because of the rapidly dwindling stock of personal protective equipment needed to care for seriously ill patients and prevent further spread of COVID-19, on March 25, 2020, the Secretary of Health and Human Services, with authority delegated by the President, designated certain health medical resources as scarce materials under the DPA. Among the materials designated were face masks that cover the user’s nose and mouth.
Ayimadu allegedly purchased more than 200,000 face masks from a foreign country for approximately $2.50 each and then re-sold them to American consumers, through his website, BabyPuuPu.com, for approximately $5.00 each—a markup of approximately 100 percent. During the two months in which Ayimadu sold face masks, he engaged in over 22,000 financial transactions. While Ayimadu priced his masks in excess of prevailing market prices to maximize his profits to the detriment of consumers desperate for personal protective equipment during the COVID-19 pandemic, manufacturers of authentic N95 masks continued selling face masks for the pre-pandemic price of under $2.00 per mask.
Milton Ayimadu, a/k/a Don Milton, 22, of Stockbridge, Georgia, was arraigned on August 6, 2020, before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the criminal information contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Tal C. Chaiken and Russell Phillips are prosecuting the case. Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, U.S. Attorney for the District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Business Owner Sentenced to 57 Months’ Imprisonment for Role in Scheme to Steal Millions from Federal Worker’s Compensation ProgramRead the Press Release
MIAMI -- Elizabeth Peters Young, 55, of Ball Ground Georgia, was sentenced to 57 months in prison, to be followed by three years of supervised release, in connection with her role in a lengthy conspiracy to pay and receive illegal kickbacks in exchange for the referral of expensive pain cream prescriptions to a Federal Worker’s Compensation program designed to provide benefits to federal employees injured while on the job. In addition, Young was ordered to pay a special assessment, forfeiture, and restitution, with the amounts to be determined at a future hearing.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor Office of Inspector General (DOL-OIG), and Scott Pierce, Special Agent in Charge, United States Postal Service Office of Inspector General (USPS-OIG) made the announcement.
District Court Judge Rodolfo A. Ruiz imposed the sentence, which came after a Fort Lauderdale jury found Young guilty on December 19, 2019 of conspiracy to pay and receive healthcare kickbacks and four counts of paying kickbacks in connection with a federal healthcare program (Case No. 19-CR-60157-RAR). During the ten-day trial, the evidence showed that in 2015, Young, a wealthy medical device sales rep and business owner who had been in the industry for decades, learned that the trust-based Federal Worker’s Compensation would reimburse thousands of dollars for certain “prescription” pain creams and patches called Terocin and Lidopro. In reality, these pain creams and patches were nearly identical to widely available over the counter items like Icy Hot.
According to court documents and evidence presented at trial, from March 2015 through April 2018, Young capitalized on her knowledge of these reimbursement rates by creating and executing an illegal kickback scheme. First, she made a deal with two pharmacies, including a small pharmacy in a strip mall to split 50% of illegal profits for the sale of these high-priced creams and patches. Young then used her friend who was a medical assistant to a spinal surgeon to prescribe these creams and patches to Federal Worker’s Compensation patients and then send those prescriptions to the two pharmacies. By simply connecting the prescriptions to the pharmacies, Young received over $1.5 million in fraudulently obtained federal funds.
The problem was that the medical assistant writing the scripts for Young during the scheme was not doing so for free, and as Young knew, it is illegal to pay someone in a doctor’s office to refer prescriptions. Therefore, to conceal the scheme, Young hired the medical assistant’s boyfriend as her “rep” to supposedly pitch the patches and creams to the very spinal surgeon that his girlfriend worked for in exchange for “commissions.” The evidence at trial proved that in reality, the boyfriend, who worked at Home Depot and had recently suffered brain injuries from a car accident, was expected to just “sit back and collect.” Young then proceeded to pay the boyfriend over $300,000 in illegal kickbacks to do just that.
Evidence at trial showed that during the scheme, Young was keenly aware of the nature of her unlawful conduct, and went to great lengths to disguise such conduct from authorities. For example, Young not only repeatedly googled articles about topics such as fraud and kickbacks at pharmacies, the FBI, and doctors being arrested, she also emailed them to co-conspirators with subject lines such as “FBI, Scary.” She also instructed co-conspirators to open shell companies, remove names from bank accounts, and not discuss patches and creams with others in the industry.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOL-OIG and USPS-OIG. The case was prosecuted by Assistant U.S. Attorneys Anne P. McNamara and David Turken. AUSA Adrienne Rosen handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Four Oaks Man Sentenced to 10 Years for Firearm ChargeRead the Press Release
RALEIGH, N.C. – A Four Oaks man was sentenced today to 120 months in prison for unlawfully possessing ammunition.
According to court documents, on April 28, 2018, officers with the Wayne County Sheriff’s Office responded to a burglary in progress. When officers arrived they observed several suspects flee the area on foot. While in pursuit of the individuals, a deputy observed Lamont Turrentine run towards a church building. Turrentine fired multiple shots at the pursuing deputy, hitting his patrol vehicle. Turrentine then took cover behind a building before firing multiple shots at the officer again. Turrentine evaded officers for a short time before being apprehended. Officers recovered a Springfield 9mm firearm on the ground behind the church in close proximity to where the defendant fled. A ballistics expert matched the firearm found on the path to the shell casings that were found where the shoot-out took place. Turrentine was found guilty by a jury on February 19, 2020. Prior to April, 2018, the defendant was convicted of multiple felony offenses including possessing a firearm as a convicted felon and cocaine distribution.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wayne County Sheriff’s Office investigated the case.
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. 5:19-cr-00245-BO.
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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.
Fort Wayne Men ChargedRead the Press Release
FORT WAYNE – Nathan Kaiser, age 48 and Leary Kaiser, age 20, both of Butler, Indiana were charged in separate indictments with multiple firearm related offenses, announced U.S. Attorney Kirsch.
According to documents in this case, Nathan Kaiser, the owner of Darkside Armory, a Federal Firearms Licensee, was charged in a 17 count indictment with possession of an unregistered machine gun, unregistered silencers and a bump stock device in violation of the National Firearm Act. Leary Kaiser, an employee of Darkside Armory, was charged in a 4 count indictment with falsifying ATF form 4473 to indicate more firearms were purchased than what actually occurred during the transaction and also for lying to agents about these falsifications.
U.S. Attorney Kirsch said, “The alleged charges here should send a strong message that illegal weapon possession and falsification of firearm related purchase documents will not be tolerated. I wish to commend ATF for their hard work on this case and their commitment to public safety that flows from compliance with the National Firearms Act requirements.”
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Former banker and mortgage broker sent to prison for defrauding California bankRead the Press Release
HOUSTON – Two Houston-area family members have been ordered to federal prison following their convictions on multiple counts to include conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud, announced U.S. Attorney Ryan K. Patrick.
A federal jury deliberated for approximately seven hours before convicting Carlos Wydler, 49, and Leyla Wydler, 60, both of Houston, on March 7, 2017, following a trial that spanned four weeks.
Today, U.S. District Judge Andrew Hanen imposed an 84-month sentence for Carlos Wydler and ordered him to pay $6,804,260 in restitution to the victim bank and its insurer. U.S. District Judge Andrew S. Hanen sentenced his step-mother to 132 months during a telephonic sentencing hearing in June. She was also ordered to pay the $6 million in restitution joint and several with her stepson. At the hearings, the court heard from the bank’s president who testified it was the largest fraud loss in the bank’s 113-year history
“The capture, conviction and sentencing of this mother and stepson highlight the FBI’s unending commitment to hold accountable greedy individuals who take advantage of their position of trust,” said Special Agent in Charge Perrye K. Turner of the FBI. “The FBI prioritizes financial institution fraud because it is not a victimless crime. Although the Wydlers did not wield weapons or threaten tellers, they endangered the stability of the federal banking system and our economy.”
Leyla Wydler was the owner of several Houston-area businesses including Globan Mortgage Company, Casa Milagro and First Milagro. In the spring 2007, Carlos Wydler went to work at a California bank as a vice-president in charge of the bank’s credit card department. Shortly thereafter, the Wydlers developed a scheme in which Leyla Wydler would send credit card applications to the bank for Carlos Wydler to approve. He approved the applications for high credit lines and then, calling them “balance transfers,” cash advanced the entire credit line to the borrower via wire or check with Leyla Wydler taking a fee from the borrowers’ loan proceeds.
“Greed and deception were at the heart of the Wydler’s scheme, which took advantage of their positions of trust within the banking industry,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). “This case demonstrates that the USPIS remains resolute in our mission to bring to justice those who fraudulently use the nation’s mail system in the furtherance of their deceptive schemes.”
During trial, the evidence demonstrated that the Wydlers were also developing a real estate project in Houston at the time and used the “balance transfer” program to finance investors in their project. The jury heard that the bank did not know or approve of the fee-sharing or real estate financing arrangements.
For approximately a year, hundreds of loan applications were faxed or emailed from Leyla Wydler’s business in Houston to Carlos Wydler at the bank in California. Many of these contained falsified income information and falsified supporting documents about borrowers’ employment, income and assets. Two eyewitnesses testified they saw Leyla Wydler routinely insert falsified income numbers, sometimes using white-out, on loan applications.
Leyla Wydler skimmed more than $1.4 million from loan proceeds, with Carlos Wydler approving approximately $600,000 more in unauthorized loans to family members. More than half of the Texas borrowers run through the Wydler-family business in Houston defaulted on their loans. The bank sustained a loss of more than $6 million.
The defense attempted to convince the jury that Carlos Wydler followed bank policy in his approval decisions. Leyla Wydler’s attorney argued that she did not know that the information she was sending contained falsified information.
The jury did not believe their claims and ultimately convicted both defendants of conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud. Carlos Wydler was also found guilty on six counts of misapplication of bank funds.
The Wydlers were taken into custody immediately after the verdict where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, USPIS and Federal Deposit Insurance Corporation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and John Lewis prosecuted the case.
Former Venezuelan official charged in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON – Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), announced U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston.
Jose Luis De Jongh Atencio, 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance in federal court.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen such as Jose Manuel Gonzalez Testino, a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez, a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the Southern District of Texas (SDTX), according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case along with Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Venezuelan Official Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX) and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Jose Luis De Jongh Atencio (De Jongh), 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen including Jose Manuel Gonzalez Testino, (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the SDTX, according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case. The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Former U.C. Davis Researcher Charged with Visa Fraud and Making False StatementsRead the Press Release
UPDATE
Pursuant to a motion by the government, the case against defendant Juan Tang described in the news release below was dismissed by the court on July 23, 2021.
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Juan Tang, 37, of Xi’an, China, charging her with visa fraud and making false statements to the FBI, U.S. Attorney McGregor W. Scott announced.
Arraignment is set for Aug. 10 at 2:00 PM before U.S. Magistrate Judge Edmund F. Brennan.
According to court documents, Tang is alleged to have possessed a non-immigrant J-1 visa that she obtained by making false statements during the application process about her military service. When later interviewed by FBI agents, Tang also made false statements about her military service. Specifically, it is alleged that Tang is a current member of the Chinese military and falsely claimed that she had not served in the military.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Department of State’s Diplomatic Security Service, San Francisco Field Office. Assistant U.S. Attorney Heiko P. Coppola is prosecuting the case.
If convicted of visa fraud, Tang faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of making false statements, Tang faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. 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.
Former Milwaukee Alderman Sentenced to Prison for Wire FraudRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that earlier today Willie C. Wade (age: 57), a former Milwaukee alderman, was sentenced by United States District Judge Lynn Adelman to four (4) months in prison for executing a wire fraud scheme. Following his term of imprisonment, Wade also must serve three (3) years on supervised release.
According to court filings, Wade obtained $30,000 in cash from a cooperating businessman by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of a license to operate a downtown strip club. Court filings confirmed that the alderman was not aware of Wade’s representations and had never agreed to accept any bribe.
In imposing sentence, Judge Adelman explained that offenses like this are “extremely serious” as they can undermine public confidence in government by suggesting that public policy can be “bought and paid for.” Judge Adelman found that even though there was no actual bribe, incarceration was necessary to deter others and to convey the importance of maintaining trust in government.
Consistent with the terms of a plea agreement filed in the case, Judge Adelman ordered Wade to repay the money he received as a condition of his supervised release, and Wade made an initial payment of $10,000 toward this obligation before his sentencing hearing.
This case was investigated by the FBI and was assigned to Assistant United States Attorney Richard G. Frohling for prosecution.
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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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Former Member of Boston Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.
Oscar Pena, a/k/a “King DO-Block,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 17, 2020. Pena was arrested and charged in December 2019, at which time he was a member of the Morton Street Bricks (also known as “MSB”), a Boston-based Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for the Morton Street housing project in Boston, the MSB Chapter of the Latin Kings included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise through the commission of criminal acts, Oscar Pena personally sold a cooperating witness approximately 38 grams of fentanyl.
In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Oscar Pena is the fifth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Government Employee and Active Duty Soldier at Camp Mabry in Austin Admit to Stealing over $1 Million in Military EquipmentRead the Press Release
In Austin this week, an active duty soldier and a former federal government employee at Camp Mabry admitted to stealing and unlawfully selling more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.
Appearing today before U.S. Magistrate Judge Mark Lane, 27-year-old Texas National Guardsman Cristal Avila of Fort Worth pleaded guilty to one count of theft of government property. On Tuesday, 35-year-old Joseph Mora of Schertz, TX, Avila’s co-defendant and former Program Analyst at the U.S. Property and Fiscal Office warehouse, pleaded guilty to the same charge. By pleading guilty, Avila and Mora admitted to conducting a scheme to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization. Mora later sold many of the stolen items on eBay and by other means.
On September 24, 2019, federal agents executed a search warrant at Mora’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.
Avila and Mora face up to ten years in federal prison and have agreed to pay restitution to the government for the stolen items as well as profits generated from the sale of those items. Both remain on bond pending sentencing which has yet to be scheduled.
Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case. Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.
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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.
Five charged in connection with alleged Paycheck Protection Program (PPP) fraud schemeRead the Press Release
ATLANTA - Five small business owners have been indicted in connection with a fraudulent scheme to obtain nearly $4.1 million in loan funding under the Paycheck Protection Program (PPP).
“The PPP was enacted to provide emergency financial assistance to business owners who are suffering the economic effects caused by the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants allegedly took advantage of this critical financial assistance to fraudulently obtain funds that other small businesses desperately needed to keep their employees on the payroll. We will continue investigating and prosecuting those who seek to line their own pockets.”
“The allegations against these defendants are disturbing,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Trying to defraud a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic is something we are very serious about and making every effort to stop.”
“The Paycheck Protection Program is essential to survival for many small businesses during these unprecedented times,” said Small Business Administration Inspector General Hannibal “Mike” Ware. “Our Office will continue to combat fraud schemes that involve using PPP funds for personal gain and greed. I want to thank the Department of Justice and our law enforcement partners for their pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: In April and May 2020, Darrell Thomas, Andre Lee Gaines, Kahlil Gibran Green, Sr., and Bern Benoit allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and another business – seeking a loan of approximately $800,000 for each company.
In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
In its PPP loan application, each business allegedly reported that it had between 63 and 69 employees, and approximately $319,000 to $332,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019. With the exception of one company’s reporting for one quarter, the five businesses reported an identical number of employees and an identical amount of payroll expenses for each quarter of 2019. In reality, however, none of the businesses had filed a Form 941 for any quarter in 2019 or for the first quarter of 2020. Four of the businesses also submitted with their applications fake bank statements that significantly inflated the funds in the businesses’ bank accounts. Indeed, two of the businesses did not open their bank accounts until after the time period reported on the fake bank statements.
After the PPP loan proceeds were deposited into the businesses’ accounts, Thomas, Gaines, Green, and Benoit transferred more than $2,000,000 into two of Thomas’s businesses: Bellator Phront Group, Inc. and Elite Executive Services, Inc. These transfers were purportedly for payroll services and rental payments, but none of the four businesses that sent money to Thomas’s companies had any legitimate business transaction with either of those companies. In addition, Gaines, through Gaines Reservation and Travel LLC, transferred approximately $335,000 to Carla Jackson’s company, Management Resource Services, Inc. Those payments were purportedly for a project that Management Resource Services, Inc. would perform for Gaines Reservation and Travel LLC, but the investigation revealed that no such project existed.
Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. In fact, Thomas used some of the funds transferred to Bellator Phront Group Inc. to purchase two luxury vehicles for more than $125,000 each: a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Jackson, meanwhile, used funds that she had received from Gaines Reservation and Travel LLC to make payments on two automobile loans. The other defendants likewise used the funds they received for various personal expenses and withdrawals. During the investigation, federal agents seized nearly $3.1 million dollars in PPP proceeds from ten bank accounts before the Defendants could further deplete these funds, and also seized Thomas’s Land Rover Range Rover.
Darrell Thomas, 34, of Duluth, Georgia, Andre Lee Gaines, 66, of Dallas, Georgia, Kahlil Gibran Green, Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, are charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, making false statements to a federally insured financial institution, and money laundering. Carla Jackson, 52, of Tucker, Georgia, is charged with money laundering. The defendants were indicted on August 4, 2020. Members of the public are reminded that the indictment only contains charges.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens and Department of Justice Trial Attorney Siji Moore are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Charged in Connection with an over $4 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Five individuals were charged in an indictment with fraudulently obtaining more than $4 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase luxury vehicles. Authorities have seized a Range Rover worth approximately $125,000, jewelry, over $120,000 in cash, and over $3 million from 10 bank accounts at the time of arrest.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; and Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region made the announcement.
Darrell Thomas, 34 of Johns Creek, Georgia, Andre Lee Gaines 66 of Dallas, Georgia, Kahlil Gibran Green Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank and wire fraud, bank fraud, wire fraud, false statements to a financial institution and money laundering. Additionally, Carla Jackson, 52, of Tucker, Georgia was charged with money laundering. Thomas, Gaines, and Jackson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Russell G. Vineyard of the Northern District of Georgia.
The indictment alleges that Thomas, Gaines, Green, and Benoit submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and Lee Operations LLC – seeking loans of approximately $800,000 for each company. Thomas, Gaines, Green, and Benoit caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ number of employees and payroll expenses. The financial institutions approved and funded over $4 million in loans.
The indictment further alleges that shortly after receiving the PPP funds, Thomas, Gaines, Green, and Benoit transferred the money to secondary bank accounts, including an account controlled by Jackson. After Jackson received the PPP funds, she further distributed the funds. Additionally, Thomas purchased a 2018 Mercedes-Benz S-Class S65AMG and a 2018 Land Rover Range Rover. In the days and weeks following the disbursement of PPP funds, the indictment alleges that Thomas, Gaines, Green, and Benoit did not make payroll payments as they claimed they would on their loan applications.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA OIG. Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Baton Rouge Man of Multiple Firearms ViolationsRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of Robert Earl Tucker, Jr., age 45, of Baton Rouge, Louisiana. Tucker was indicted by a federal grand jury on July 2, 2020, and charged with three counts of making false statements to a federally licensed firearms dealer, one count of possession of a firearm by a person adjudicated as a mental defective, and one count of possession of ammunition by a person adjudicated as a mental defective.
After a three-day trial before U.S. Chief Judge Shelly D. Dick, the jury unanimously convicted Tucker. As the evidence at trial demonstrated, Tucker was adjudicated as a mental defective in December 2011. On three separate occasions after this adjudication, he attempted to purchase firearms from various licensed firearms dealers. During the attempted purchases, Tucker completed forms, on which he falsely stated that he had not ever been adjudicated as a mental defective. After signing the forms, Tucker submitted the forms to the licensed dealers, who transmitted the information to the National Instant Criminal Background Check System.
The firearm and ammunitions charges were based on two separate incidents. On August 6, 2019, East Baton Rouge Sheriff’s Office responded to a dispatch regarding an armed individual at the Wal-Mart store located at 10550 Burbank Drive in Baton Rouge, Louisiana. That individual was later identified as Tucker. He was detained and searched for weapons, during which a loaded Ruger firearm was discovered. Subsequently, on June 8, 2020, Tucker was found to be in possession of forty-one (41) rounds of 9mm ammunition and thirty-eight (38) rounds of .22 caliber ammunition.
As a result of his convictions, Tucker now faces a maximum sentence of ten years in federal prison, significant fines, restitution, and supervised release.
U.S. Attorney Fremin stated, “I want to commend the courageous and bold action of the East Baton Rouge Sheriff’s officers who swiftly responded to an active shooter situation and ATF for their critical assistance. This conviction rightfully removes Mr. Tucker from the community and underscores the importance of enforcing federal firearms violations. I commend our dedicated law enforcement personnel and our prosecution team for their outstanding efforts to prepare and present this case to the jury.”
“Mental illness is a serious concern in our communities. This case illustrates the inherent dangers of a mentally ill person possessing firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “Thanks to the swift reaction by the East Baton Rouge Sheriff’s Office, the situation was contained without it turning tragic. ATF will continue to work hand-in-hand with our state and local partners to keep our communities safe.”
“The East Baton Rouge Sheriff’s Office is grateful for the partnership we have with the U.S. Attorney and his dedication to prosecuting these cases on the federal level,” Sheriff Sid Gautreaux said. “We will continue to dedicate our personnel and resources to initiatives that ensure the safety of our community.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the East Baton Rouge Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Eli J. Abad and Demetrius D. Sumner.
Federal Judge Sentences Cherokee Man for Stabbing Victim with a KnifeRead the Press Release
ASHEVILLE, N.C. – George Allan Lambert, 48, of Cherokee, N.C., and an Enrolled Member of the Eastern Band of Cherokee Indians, was sentenced to today to 45 months in prison and three years of supervised release for stabbing a victim with a knife, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. On November 5, 2019, a jury convicted Lambert of assault resulting in serious bodily injury, and assault with a dangerous weapon with intent to do bodily harm.
Chief Doug Pheasant of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney Murray in making today’s announcement.
According to filed documents, evidence presented at trial and witness testimony, on May 2, 2019, Lambert and the victim were visiting a residence in Swain County, within Indian Country. Over the course of the evening, Lambert quarreled with the victim, after Lambert accused the victim of stealing his money. During the argument, Lambert took out a knife and stabbed and sliced the victim multiple times in his shoulder and torso area. According to court records, the victim sustained heavy blood loss and required emergency surgery and more than 30 stitches as a result of the wounds inflicted by Lambert. Following the stabbing incident, Lambert fled the scene. CIPD arrested Lambert shortly thereafter.
Lambert is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked CIPD for their investigation of this case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal Judge Grants Temporary Restraining Order against New Braunfels Business for Promoting and Conducting Fraudulent Coronavirus TestingRead the Press Release
In San Antonio today, Senior U.S. District Court Judge David A. Ezra granted a Temporary Restraining Order (TRO) filed by federal authorities against Living Health Holistic Healing Center d/b/a Living Health New Braunfels (Living Health) and it’s owner, Leslie Tatum, to combat alleged fraudulent advertising and testing related to the coronavirus pandemic (COVID-19), announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
The purpose of the civil injunction is to stop Tatum, through her business, from advertising, offering and performing COVID-19 testing. According to a civil complaint filed in this case, Living Health and Tatum have misled the public into believing they are qualified to both administer COVID-19 diagnostic and serological tests and interpret the results of such tests. The defendants operate a website with the domain name “livinghealthnb.com”, a Facebook page, and use direct emails to induce customers into purchasing COVID-19 antibody testing for $85. The complaint further states that the test used by Tatum is not authorized by the U.S. Food and Drug Administration to determine whether individuals have an active COVID-19 infection or whether they should take steps to quarantine or isolate themselves from others. Moreover, according to the complaint, Tatum, a licensed massage therapist, is not qualified to perform nor evaluate the test results.
Today’s action will prevent Tatum from advertising COVID-19 testing through her business’s website and Facebook page immediately while this investigation continues. It will also prevent her from performing COVID-19 diagnostic or serological tests, or providing services related to the diagnosis, treatment, mitigation, or management of symptoms of COVID-19. By filing this action, the government is employing a federal statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes. A hearing on the TRO is scheduled for 9:00am on August 25, 2020, before Judge Ezra.
Individuals who were tested for COVID-19 at this facility are asked to contact the FBI by calling (210) 225-6741, prompt #1, or online at www.tips.fbi.gov. Those individuals are also encouraged to contact their primary care physician, local health department, free standing ER, or nearby urgent care facility for re-testing.
For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites. In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected]. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Western District of Texas, visit its website at www.justice.gov/usao-wdtx. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.
This enforcement action is being handled by Assistant U.S. Attorneys Erin M. Van De Walle, Justin Chung and Michael C. Galdo of the Western District of Texas. Special Agents with the FBI’s San Antonio Field Office are conducting the investigation.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendant.
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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.
Drug Dealer Receives 12 year Sentence for Fentanyl Overdose DeathRead the Press Release
NEWS RELEASE SUMMARY – August 5, 2020
SAN DIEGO – Federal District Court Judge Gonzalo P. Curiel today sentenced defendant Michael Steen to 148 months in prison for supplying the fentanyl that led to a 33-year-old Ramona woman’s fatal overdose on July 9, 2018.
On March 4, 2020, Steen pleaded guilty to Conspiracy to Distribute Fentanyl, and admitted he sold more than 500 grams of what he knew to be fentanyl in 2018.
“The current fentanyl threat requires an “all in” response by law enforcement. My office is collaborating with partners at every level to seize fentanyl at the border, build cases against cartels and street distributors, and pursue death charges against dealers of this deadly poison,” said U.S. Attorney Robert Brewer. “If you are selling fentanyl, beware: as today’s sentence reflects, you will be held fully accountable for the death and destruction you selfishly cause.”
“One of the DEA’s goals is to put people responsible for drug deaths in federal prison,” said DEA Special Agent in Charge John W. Callery. “Today’s sentence of Michael Steen to over 12 years in federal prison is testament to the hard work DEA and our outstanding law enforcement partners put into this investigation to ensure our goal was accomplished. We will continue to aggressively pursue those who deal drugs and cause death in our community.”
“The Sheriff's Department will continue to conduct thorough and collaborative fentanyl death investigations, ensuring traffickers and dealers are held accountable for a crime that costs lives and negatively impacts the community as a whole,” said Sheriff’s Narcotic and Gang Division Captain Dan Brislin.
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
U.S. Attorney Brewer praised prosecutor David Finn as well as the San Diego County Sheriff’s Department and DEA agents for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANTS Case Number 19-CR-0869-GPC
Michael Steen Age: 27
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1) Maximum penalty: Mandatory minimum 10 years in prison up to life
AGENCY
San Diego Sheriff’s Office
U.S. Drug Enforcement Administration, Narcotics Task Force