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5 August 2020
Laurel Pimp Pleads Guilty to Federal Charges for Enticing Three Women to Cross State Lines to Engage in ProstitutionRead the Press Release
Greenbelt, Maryland – Robert Carl Diienno, age 32, formerly of Laurel, Maryland, pleaded guilty on August 4, 2020, to three counts of enticement to travel in interstate commerce for the purposes of prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Chief Russell E. Hamill III of the Laurel Police Department.
According to his plea agreement, from at least November 2016 through June 2017, Diienno acted as a pimp for Victim 1, and at other times for Victims 2 and 3, who were all adult women. During that time, Diienno persuaded, enticed, induced, and coerced the victims to engage in a prostitution enterprise that included travel between Maryland and Washington, D.C., Virginia, Florida, and South Carolina in order to service “dates” in acts of prostitution. The victims provided any money earned from the commercial sex to Diienno, including transferring payments electronically through Internet-based payment services, such as PayPal and Venmo.
As detailed in his plea agreement, Diienno and the victims resided at a residence in Laurel, which was used as a group home and the base of the enterprise. “Meeting minutes” recovered from the house identify the location as “Duh ho house.” Some of the meeting minutes are signed by one of the victims and record attendance at the meeting; a report on potential new recruits; and the “Comptroller’s Report” that showed the amount earned by each of the victims related to their prostitution activities. In the residence and on Diienno’s laptop law enforcement recovered documents titled, “ho Training Manual,” “ho Rules,” and “Pimp/ho Contract.” The documents stated requirements that a “ho” submits to the control of the “Pimp,” including accepting any punishment the Pimp decides to inflict, with certain limitations, such as punishment must not incur permanent bodily harm, and must stop immediately if blood is drawn, among others.
A text exchange in late May 2017, between Diienno and Victim 3 demonstrated how Diienno coerced the victims. When Diienno persuaded Victim 3 to “walk the streets” in Washington, D.C., Victim 3 claimed to be ill. Diienno told Victim 3, “I care about seeing you become a strong ho and a strong person in general…Taking you home is what would show that I don’t care. That would mean I don’t give a f*** about your development as a person.”
On June 1, 2017, Laurel Police Department was called to the residence for a disturbance at that location. Victim 1 and Victim 3 were found hiding in a nearby treeline and reported that Diienno had assaulted Victim 1 when she refused to walk the streets. Diienno was arrested.
During the subsequent investigation, two firearms belonging to Diienno were recovered from the Laurel residence. At least one victim recalled seeing Diienno handle a firearm and was intimidated by that behavior.
As part of his plea agreement, Diienno must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Diienno faces a maximum sentence of 20 years in federal prison for each of the three counts of enticement to travel to engage in prostitution. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George J. Hazel has scheduled sentencing for December 8, 2020, at 2:00 p.m.
This case was investigated by law enforcement agencies that are members of the Prince George’s County Human Trafficking Task Force, part of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI and the Laurel Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.
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Justice Department Sues to Block Geisinger Health’s Transaction with Evangelical Community HospitalRead the Press Release
The U.S. Department of Justice sued today to block Geisinger Health’s partial acquisition of its close rival, Evangelical Community Hospital. The complaint alleges that the agreement fundamentally alters the relationship between the parties, raising the likelihood of coordination and reducing Defendants’ incentives to compete aggressively against each other. As a result, the transaction is likely to lead to higher prices, lower quality, and reduced access to high-quality inpatient hospital services for patients in central Pennsylvania. The lawsuit was filed in the U.S. District Court for the Middle District of Pennsylvania.
“Preserving competition in healthcare markets is a priority for the Department of Justice because of its important impact on the health and well-being of Americans,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This agreement between Geisinger and Evangelical threatens to harm patients in central Pennsylvania by reducing competition that has improved the price, quality, and availability of healthcare in the region.”
Geisinger, a large hospital system in central and northeastern Pennsylvania, and Evangelical, an independent community hospital in Lewisburg, Pennsylvania, are close competitors for inpatient general acute-care hospital services for many patients in a six-county area in central Pennsylvania, with the two hospitals together accounting for approximately 71 percent of the market in this region.
According to the complaint, Geisinger has a history of acquiring community hospitals in Pennsylvania and initially sought to acquire Evangelical in full. Defendants recognized, however, that such an acquisition would likely violate the antitrust laws. Instead, on February 1, 2019, Geisinger and Evangelical entered into a partial-acquisition agreement, in part, to avoid antitrust scrutiny. This agreement, however, imposes significant entanglements between Defendants, reducing their incentives to independently compete against each other and increasing the likelihood of coordination. For example, the agreement gives Geisinger a 30 percent ownership interest in Evangelical and requires it to invest $100 million in Evangelical, much of which is earmarked for specified projects approved by Geisinger. These terms link the two organizations financially and set Geisinger up as a critical source of funding to Evangelical for the foreseeable future. According to Geisinger documents quoted in the complaint, Geisinger’s investment makes Evangelical “tied to us” so “they don’t go to a competitor.” The agreement also gives Geisinger rights of first offer and first refusal for certain transactions and joint ventures, which, in conjunction with other provisions in the agreement, make it difficult for Evangelical to partner with other healthcare entities. The complaint alleges that the provisions in the agreement work together to substantially lessen competition and unreasonably restrain trade in the market for inpatient hospital services in central Pennsylvania. Further, the agreement is not reasonably necessary to achieve any community benefits.
Geisinger Health is a regional, not-for-profit healthcare provider that operates hospitals, physician practices, outpatient facilities, and urgent-care centers in Pennsylvania and New Jersey. Geisinger’s flagship facility is Geisinger Medical Center, a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s revenues in FY2019 were approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed non-profit independent community hospital located in Lewisburg, Pennsylvania. It owns physician practices and operates an urgent-care facility and several other outpatient facilities in central Pennsylvania. Its revenues in FY2019 were approximately $259 million.
Justice Department Reaches Proposed Consent Decree to Resolve Hampton Roads Regional Jail InvestigationRead the Press Release
Today, the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia filed a complaint and a proposed consent decree with the Hampton Roads Regional Jail Authority.
The proposed consent decree would resolve the United States’ claims alleging unlawful conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. Under the proposed consent decree, the jail will develop and implement policies, procedures, and training regarding adequate medical and mental health care and appropriate housing for prisoners with serious mental illness. These measures include appropriate screening and assessment by qualified professionals, adequate treatment planning and suicide prevention practices, specialized mental health housing units, and a quality assurance program. Compliance with the proposed consent decree would be assessed by an independent monitor who will also provide technical assistance to the jail. The court for the Eastern District of Virginia will determine if the proposed consent decree is fair, adequate, reasonable, and necessary.
“This agreement will ensure that prisoners are no longer at risk of serious harm as a result of the Jail’s practices,” said Assistant Attorney General Eric Dreiband, head of the Civil Rights Division. “We commend the Hampton Roads Regional Jail Authority for its willingness to make changes to ensure that prisoners receive necessary medical and mental health care.”
“We are pleased that the Hampton Roads Regional Jail Authority has agreed to address the deficiencies our investigation uncovered,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to continuing to work with the Hampton Roads Regional Jail to ensure that those incarcerated at the Jail receive adequate medical and mental health care, and that prisoners’ rights under the Constitution and the Americans with Disabilities Act are protected.”
The Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under the Civil Rights of Institutionalized Persons Act, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated pursuant to Title II of the Americans with Disabilities Act (ADA). In December 2018, the department provided the jail written notice of the alleged unlawful conditions and the minimum remedial measures necessary to address them. Specifically, the department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Eighth and Fourteenth Amendments of the U.S. Constitution. The department also concluded that the jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the ADA.
This matter is handled by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Inmate Sentenced to over Two Years for Bribery SchemeRead the Press Release
NORFOLK, Va. – A former inmate of the Chesapeake City Jail was sentenced today to over two years in prison for conspiring to bribe a Chesapeake Sheriff’s Deputy to smuggle contraband, including cocaine and heroin, into the Chesapeake City Jail.
According to court documents, Jermarrieo Stigger, 35, paid Jenis Leroy Plummer to use his official position as Chesapeake Sheriff’s Deputy to smuggle heroin, cocaine, cell phones, e-cigarettes, and other contraband into the Chesapeake City Jail. From July 2017 through December 2018, Stigger knowingly and intentionally conspired with Plummer to engage in this scheme.
On numerous occasions throughout the conspiracy, Stigger arranged for Plummer to meet his girlfriend at various locations in Hampton Roads to pick up the contraband. At these meetings, Stigger’s girlfriend gave Plummer the illicit contraband in blue latex gloves. Plummer then smuggled the contraband into the jail and delivered the items to the inmate. In exchange for using his official position, Stigger’s girlfriend paid Plummer with cash, via CashApp, and via PayPal. Last year, the Chesapeake Sheriff’s Deputy was likewise sentenced to serve 30 months’ incarceration for his role in this scheme.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Melissa E. O’Boyle and Joseph E. DePadilla prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-183.
Imperial Pacific International and MCC International Saipan Executives Indicted on Federal ChargesRead the Press Release
WASHINGTON – Three executives from Imperial Pacific International (IPI) and MCC International Saipan have been indicted on federal criminal charges, including Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, harboring illegal aliens, unlawful employment of aliens, and international promotional money laundering announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands.
On Aug. 1, 2019, a federal grand jury returned a 71-count superseding indictment against Liwen Wu, aka Peter Wu, Jianmin Xu, and Yan Shi. The charges were unsealed today. The indictment alleges that these individuals committed criminal acts while holding executive positions with IPI and MCC International Saipan. The defendants are accused of utilizing criminal labor practices during ongoing construction of the Grand Mariana Casino Hotel and Resort on the island of Saipan. The defendants are further alleged to have transferred over $24 million into the United States to promote their illegal activity.
All three defendants are foreign nationals who currently reside outside of the United States. Upon returning to the United States, the individuals will be arrested, arraigned, and brought to trial in federal court.
The case is being investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS Criminal Investigation, and the U.S. Department of Labor – Wage & Hour Division. Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric O’Malley are prosecuting the case.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Anyone with further information regarding this matter is urged to call the FBI’s Saipan Office at 670-322-6934.
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.
Note: A copy of the superseding indictment can be viewed here.
Illegal Alien Sentenced Regarding Smuggling of Illegal AliensRead the Press Release
Gulfport, Miss. – Jose Ramon Hernandez-Reyes, 33, an illegal alien from Mexico, was sentenced yesterday to 18 months imprisonment, followed by 3 years of supervised release, for illegal transportation or moving of an alien, announced U.S. Attorney Mike Hurst and Gilbert Trill, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans. Hernandez-Reyes pled guilty to the federal felony offense before Judge Guirola on June 4, 2020.
Additionally, upon completion of his prison sentence, Hernandez-Reyes will face removal proceedings by the U.S. Department of Homeland Security, Immigration & Customs Enforcement (ICE). If he were to unlawfully return to the United States within his term of supervised release, he would be subject to a separate prison sentence that could run consecutive to other penalties he could receive from additional prosecution. As a result of this felony conviction, and as an illegal alien to the United States, who had been formally removed in the past, Hernandez-Reyes could be subject to up to 10 years in prison were he to unlawfully return to the United States.
Hernandez-Reyes’ co-driver, Modesto Alvarado, 18, a United States citizen living in Houston, Texas, also pled guilty in connection with illegal alien smuggling in Harrison County. Alvarado pled guilty and was convicted on June 17, 2020, for the crime of misprison of felony. He is scheduled to be sentenced by Judge Guirola on September 15, 2020, at 10:00 a.m., and faces up to 3 years in federal prison, as well as 1 year of supervised release and up to a $250,000 fine.
Additionally, three illegal aliens who had been passengers of Hernandez-Reyes and Alvarado pled guilty and were sentenced for unlawful return of an alien after deportation or removal. Elias Delgado-Ortiz, 19, a citizen of Mexico; Jose Ernaides Aldana-Hernandez, 42, a citizen of El Salvador, and Orbin Noel Gomez-Suarez, 24, a citizen of Honduras, all pled guilty before Judge Guirola. Delgado-Ortiz was sentenced on June 2, 2020, to “time served” (or effectively 6 months and 1 day); and both Aldana-Hernandez and Gomez-Suarez were sentenced on June 3, 2020, to “time served” (or effectively 6 months and 2 days).
The three illegal alien passengers each also were sentenced to a term of 1 year of supervised release, and were to face Department of Homeland Security removal proceedings to remove them back to their home nations. If any of the three men were to unlawfully return again to the United States, during their term of supervised release, the offender could face separate penalties consecutive to imprisonment from additional prosecution. As a result of their felony convictions, if Delgado-Ortiz, Aldana-Hernandez or Gomez-Suarez were to unlawfully return again to the United States, the offender could face up to 10 years in federal prison.
On December 4, 2019, an agent of the South Mississippi Metro Enforcement Team (SMMET) conducted a traffic stop on Interstate 10 eastbound in Jackson County. The SMMET is a federal, state, local law enforcement task force that among its partner agencies, includes the United States Border Patrol, the Jackson County Sheriff’s Department and the City of Gautier Police Department. After making the traffic stop, the SMMET agent found that the driver, Modesto Alvarado, was a U.S. citizen who spoke fluent English, but did not have a valid driver’s license.
Including the driver, nine people were in the minivan, which was more than the vehicle was designed to carry or had seat belts to secure. The agent believed a smuggling event was taking place, and notified the U.S. Department of Homeland Security, Blue Lightening Operations Center, in Gulfport, and all occupants were transported to the Gautier Police Department for initial processing.
Homeland Security Investigations (HSI) special agents and task force agents responded to Gautier to interview the occupants. None of the nine minivan occupants had proper identification documents and eight were found to be illegally present in the United States. After interviewing all occupants, it was determined that seven passengers were being smuggled from Houston, Texas, to different locations throughout the United States. One of the two drivers (who rented the minivan) was Hernandez-Reyes who was determined to be the brother-in-law of Modesto Alvarado. Three of their passengers, Delgado-Ortiz, Aldana-Hernandez, and Gomez-Suarez were determined to have been lawfully deported or removed from the United States, and to have unlawfully returned to the U.S. after their removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, Homeland Security Investigations, South Mississippi Metro Enforcement Team, Jackson County Sheriff’s Department, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Home Health Aide Who Stole Elderly Clients’ Identity, Banking, and Credit Card Information and Used it to Commit Financial Fraud Charged in West Palm BeachRead the Press Release
West Palm Beach, Fl. – Jamie Jakia Cofer, a/k/a “Anna Bell,” 24, of Lake Worth, Florida, was arrested and charged with aggravated identity theft and fraudulent use of unauthorized access devices after using the social security numbers, dates of birth, and other identity and financial information of victims to steal money from their bank accounts, make unauthorized credit card purchases, and engage in other fraudulent transactions. During the alleged crimes, Cofer worked as a home health aide. Four of Cofer’s five known victims were elderly clients of Cofer’s, whose homes she entered with the supposed purpose of helping them with their home health needs.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office and Brian Smith, Chief, Juno Beach Police Department made the announcement.
According to allegations in the criminal complaint, for over a year starting in January 2019, Cofer worked as a home health aide servicing senior citizens in the South Florida community. During that time, Cofer gained access to her elderly clients’ social security numbers, dates of birth, bank accounts, credit cards, and other information. Without the knowledge or consent of these elderly clients, Cofer allegedly used the information to steal money from bank accounts, make herself an authorized user on credit accounts, make unauthorized purchases of items such as a mannequin head and wig stand, pay her mobile phone, insurance, and other bills, and send money to a prison inmate, among other things.
For example, Cofer allegedly used one elderly client’s bank account information to set up auto pay on one of Cofer’s utility accounts. Cofer allegedly used her own phone number and email to set up paperless account notifications to prevent this victim from receiving alerts.
Cofer had her initial appearance today in West Palm Beach federal court. Cofer is scheduled for a pre-trial detention hearing on Monday, August 10, 2020, before U.S. Magistrate Judge Dave Lee Brannon.
U.S. Attorney Fajardo Orshan commended the FBI and Juno Beach Police Department for its work on this investigation. She also thanked the Lantana Police Department for its assistance.
Assistant United States Attorney Sarah J. Schall is prosecuting this case.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
A criminal complaint is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find related court documents and information 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 number 20-MJ-8273.
Herkimer County Woman Sentenced to 24 Months for Stealing Social Security FundsRead the Press Release
BINGHAMTON, NEW YORK – TammyLynn Sterling Barthelmess, age 62, of Little Falls, New York, was sentenced today to serve 24 months (two years) in federal prison for her guilty pleas to Conspiracy to Steal Government Funds and three Counts of Bank Fraud, announced United States Attorney Grant C. Jaquith, Special Agent in Charge John Grasso-Social Security Administration-Office of the Inspector General (“SSA-OIG”), New York Field Division, and New York State Police Superintendent Keith Corlett.
The sentence imposed today followed the defendant’s guilty plea during trial on February 26, 2020, in which Barthelmess admitted that she conspired from 2009 to 2013 with her daughter, Shannon Hardy Sekel, to conceal the death of D.W., a tenant of hers (Barthelmess) in Little Falls, New York. Barthelmess and others caused the body of D.W. to remain hidden until it was discovered in Little Falls on May 1, 2013, in an advanced state of decomposition inside a dog crate behind an unoccupied house owned by the defendant. Following the death of D.W., TammyLynn Sterling Barthelmess and Shannon Hardy Sekel used the checking account of D.W. to steal Social Security retirement benefits that were deposited in the account each month. The defendant and Sekel wrote hundreds of checks from D.W.’s checking account until the payments stopped in May 2013 following the discovery of D.W.’s body. As a further part of her previous guilty plea, Barthelmess admitted to making false statements to New York State Police Investigators who interviewed her after D.W.s skeletonized remains were located and reported to the City of Little Falls (New York) Police on May 1, 2013.
In imposing sentence today, Barthelmess was also ordered to serve a three-year term of supervised release following completion of her prison sentence, and ordered to pay restitution to the U.S. Social Security Administration (SSA) in the amount of $110,910.00.
Shannon Hardy Sekel, the defendant’s daughter, previously pled guilty to Conspiracy to Steal Government Money and Bank Fraud. Her sentencing is scheduled for August 19, 2020 in Binghamton, New York.
This case was investigated by the United States Social Security Administration-Office of Inspector General (SSA-OIG”), the New York State Police, and the City of Little Falls Police Department, and is being prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Richard R. Southwick, with assistance from the Herkimer County District Attorney’ Office.
Fourth Defendant Sentenced for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
PIKEVILLE, Ky. – A Red Fox, Kentucky man, Michael Slone, 43, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Robert Wier, after previously admitting to conspiring with others to distribute 500 grams or more of methamphetamine.
According to his plea agreement, beginning in November 2017 and continuing through March 12, 2018, Slone conspired with Samantha Collins, 38, Danny Collins, 65, Kevin Quillen, 44, and Sabrina Chaffins, 46, to distribute 500 grams or more of methamphetamine. Specifically, Slone admitted to traveling to Louisville, on several occasions with a co-conspirator, to purchase pound-level quantities of methamphetamine from a source of supply. Slone would then return to Eastern Kentucky and resell the methamphetamine.
Slone is the fourth co-conspirator to be sentenced. The last co-conspirator, Chaffins, will be sentenced on November 10, 2020. The other co-conspirators have received the following sentences:
- Samantha Collins received 184 months in prison and five years of supervised release.
- Danny Collins received 251 months in prison and 10 years of supervised release.
- Kevin Quillen received 60 months in prison and four years of supervised release.
Under federal law, Slone and his co-conspirators must serve 85 percent of their prison sentences. Slone will also be under the supervision of the U.S. Probation Office for five years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge for ATF, Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; Sheriff Mike Worrell, Letcher County Sheriff, jointly announced the sentences.
The investigation was directed by ATF, Kentucky State Police, and Letcher 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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Former Police Chief and Sheriff Candidate Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on August 4, 2020, Alexander P. Bebris (age: 50) of Neenah, Wisconsin, entered a guilty plea to a charge of distributing child pornography.
According to court filings, in September of 2018, Facebook notified the National Center for Missing and Exploited Children (NCMEC) that one of its users had sent images of child pornography via its messenger system to another Facebook user account. The Wisconsin Internet Crimes Against Children (ICAC) Taskforce launched an investigation and determined that the images were sent from an IP address in use at Bebris’s residence in Neenah. Investigators sought and obtained a search warrant for that residence.
On December 19, 2018, the search warrant was executed at Bebris’ residence. An examination of the hard drive on Bebris’ computer revealed images of pornography involving children ranging in age from approximately one to fifteen years old.
Court records also indicate that Bebris spent his career in law enforcement, most recently as Public Safety Chief in Oakwood, Ohio. In 2018, he ran unsuccessfully for the position of Outagamie County Sheriff.
Bebris faces a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison when he is sentenced in Green Bay’s Federal District Court on November 13, 2020.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Winnebago County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Philadelphia City Controller’s Office Employee Pleads Guilty to Public Corruption ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 47, of Philadelphia, PA, pleaded guilty today to charges of honest services wire fraud, filing a false tax return, and two counts of failure to file a tax return. The defendant was charged by Superseding Indictment in September 2019.
Blackwell, a former City of Philadelphia employee in the Office of the City Controller, committed a series of frauds, accepting more than $20,000 in bribes and kickbacks. Between 2013 and 2015, while serving in the Investigations Division of the Controller’s Office, Blackwell misused his official position to enrich himself by soliciting money in exchange for official actions or the promise of official actions, but rarely provided the promised permits or contracts.
At his plea hearing, he admitted that he solicited bribes from at least five individuals who were seeking permits or contracts from the City. One of these individuals owned a furniture store and paid Blackwell for permits to park a storage container on the street. The second person was renovating a house and paid Blackwell for permits to allow that renovation. The third person owned a construction business and paid Blackwell to obtain a plumbing permit. The fourth person owned an auto body shop and paid Blackwell in the hope of getting a license to buy and sell cars as well as a City contract to install decals on police vehicles. The fifth person, who was cooperating with the FBI at the time, told Blackwell that he needed permits from the City of Philadelphia to renovate a house.
Blackwell also admitted that he filed a false 2012 federal income tax return that falsely deducted travel expenses and falsely claimed a dependent, and he admitted that he failed to file a return as required by law for tax years 2013 and 2014.
“Philadelphians deserve public employees who do their jobs honestly and faithfully. Blackwell did not meet this standard – instead choosing to use his public position to extort money for himself,” said U.S. Attorney McSwain. “Now he will face the consequences. My Office will continue to attack and destroy the cancer of corruption wherever we find it in Philadelphia or elsewhere in the District.”
“Jeffrey Blackwell traded on his official position, seeking bribes in order to pad his pockets,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He put his own interests above those of the people he served, depriving Philadelphians of their right to honest services from city workers. The FBI is committed to protecting the integrity of government at all levels from the plunder of public corruption.”
“Mr. Blackwell had a duty to report all of his income to the IRS and to pay the correct tax on that income,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. Blackwell’s decision to shirk this duty undermines public confidence in our tax system. His admission of guilt and acceptance of responsibility is a reminder that no one is above the law.”
“This case is one of a bad actor who abused his position and took advantage of the system for his own personal gain. When offenders, like this one, are held accountable, we’re taking an important step toward restoring the public’s trust in government and committing to the idea that Philadelphia works for everyone, not just the connected,” said Philadelphia City Controller Rebecca Rhynhart. “But it is important to underscore that this case is not reflective of all city employees, most of whom are hardworking, do their job with integrity and want to make Philadelphia a better place.”
The defendant faces a maximum possible sentence of 24 years’ imprisonment, a three-year period of supervised release, $600,000 fine, and a $225 special assessment. United States District Judge Chad F. Kenney set sentencing for December 2020.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service with assistance from the Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorney David J. Ignall.
Former Lake County Sheriff Re-Sentenced to 151 Months in PrisonRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that John Buncich, age 74, of Crown Point, Indiana was re-sentenced before District Court Senior Judge James T. Moody. This re-sentencing flowed from the Seventh Circuit Court of Appeals June 5, 2019 decision upholding Buncich’s conviction on two wire fraud counts (Counts 4-5) and one bribery count (Count 6).
Buncich was re-sentenced to 151 months imprisonment, 1 year of supervised release, $800 in restitution and a $35,000 fine. Buncich agreed to forfeiture in the amount of $38,000.00 as part of this federal prosecution
U.S. Attorney Kirsch said, “Buncich betrayed the public trust when he took bribes for personal gain. The sentence imposed today should send a strong message of deterrence to others who might consider engaging in the same illegal conduct as Buncich. We will continue to be vigilant and aggressive in our efforts to root out public corruption wherever it exists across the district.”
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Maria N. Lerner. This re-sentencing proceeding was handled by Assistant United States Attorney Philip C. Benson.
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Former Kane County Resident Charged in Alleged Financial Fraud Scheme That Exploited Senior CitizensRead the Press Release
ST. GEORGE, UT – A former Kane County resident, who solicited money from victims with fraudulent promises that he was on the verge of receiving hundreds of millions of dollars – even billions – and would be able to pay a large return on their investment, will be arraigned Thursday morning in federal court in St. George.
Kurt Jurgens Bauer, 56, who has also lived in Las Vegas, is charged with three counts of wire fraud and two counts of false impersonation of an employee of the United States in a recently unsealed indictment. The arraignment will be at 9 a.m. before U.S. Magistrate Judge Paul Kohler in St. George. Bauer is in custody. His continued detention status will also be considered during the Thursday hearing.
“This case involves a defendant who allegedly exploited the trust of hardworking and honest people, including elderly citizens of Southern Utah and Nevada,” U.S. Attorney John W. Huber said. “We prioritize investigations and prosecutions involving elderly victims. As I’ve said before – we revere our elders, we do not defraud them,” U.S. Attorney John W. Huber said today. “This case is also a priority for us because it includes allegations Bauer impersonated federal judges and a federal court administrator as a part of his fraud scheme.”
“Kurt Bauer is suspected of preying on some of the most vulnerable people in our community. We take fraud violations seriously, especially when these crimes are committed against the elderly who tend to be more trusting of such schemes. We will continue to work with our partners in the FBI and US Attorney’s Office to aggressively pursue, investigate and prosecute cases like the one involving Kurt Bauer,” Kane County Sheriff Tracy Glover said today.
“Kurt Bauer’s alleged crimes were based on lies that he perpetuated for many years,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “The hundreds of thousands of dollars he’s accused of swindling from his victims, including the elderly, didn’t go toward legitimate investments, but to pay his bills. While the victims may never see their money again, we hope the hard work of investigators and prosecutors sends a message that ultimately, crimes like this don’t pay.”
According to the indictment, beginning in 2011 and continuing until April 2020, Bauer devised an advance-fee scheme to solicit money from victims using a variety of what the indictment alleges were fraudulent representations and promises.
Bauer told victims that the United States District Court for the District of Nevada had frozen funds due to him, according to the indictment. Bauer told victims that the court required “bond” payments to secure the frozen funds, and he solicited victims to make the payments – often on a weekly basis, the indictment alleges. Bauer had various explanations for the court’s action.
Bauer represented to victim investors that the court was going to release funds to him in the near future. Once the funds were released, the victims would receive large returns in exchange for their upfront payments.
In reality, Bauer fabricated the information he provided to victims about his wealth and the court process to release funds. Bauer has relatively little wealth, the indictment says, apart from money he took from victims. He had no prospect of receiving large amounts of money and no court was holding money Bauer was entitled to. And, the indictment alleges, Bauer had no way of paying victims the promised returns.
The victims’ bond payments were not sent to a court, the indictment alleges. Bauer spent the money on himself including paying hotel bills, credit card payments, and restaurants, among other things.
The indictment alleges Bauer received more than $300,000 from victims, including at least $200,000 from victims identified as C.B., age 82, and L.B., age 80, in the indictment.
To further the scheme, Bauer created false identities of a New York attorney, a federal court employee, and a billionaire that he used to make misrepresentations to and solicit payments from victims. The indictment alleges he created phone numbers and email accounts for the false identities. Communications between the victims and the false identities were actually between the victims and Bauer or one of his accomplices.
In furtherance of the scheme, Bauer and his accomplices impersonated federal judges and a federal court administrator during communications with victims to convince them the court process was real and to persuade victims to continue making payments.
Bauer was arrested following the return of the sealed federal indictment in late July. He had an initial appearance on the charges July 30, 2020, in federal court in St. George.
He faces up to 20 years in federal prison for each count of wire fraud and up to three years for each count of false impersonation of an employee of the United States if convicted of the charges. Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office in St. George and Salt Lake City are prosecuting the case.
U.S. Attorney Huber expressed appreciation for the significant investigative efforts of the FBI and the Kane County Sheriff’s Office, who are assisting with the case.
Former Homeland Security Investigator Sentenced to over 10 Years for Money Laundering, False Statements, and Tax Evasion ConvictionsRead the Press Release
SAN DIEGO, Calif. – Today, Tyrone Cedric Duren, 50, of Bonsall, California was sentenced by Judge John A. Houston to 130 months in prison, followed by three years of supervised release. The court also ordered the forfeiture of Duren’s primary residence, a money judgment of $275,000, and restitution to the Internal Revenue Service. Duren previously pleaded guilty to 19 counts including charges of money laundering, making false statements, and tax evasion.
While working as a federal agent specializing in the investigation of bulk cash smuggling, Duren stole money from individuals smuggling drug proceeds to Mexico. Duren then laundered those funds by depositing them into personal and business accounts, and used the stolen cash for personal purchases. Over several years, Duren used his position as a federal agent to place GPS trackers on vehicles used to transport proceeds from drug sales. Duren then took some of the drug money after it was seized, laundered it into his own accounts, and spent it on real estate and international travel.
For example, during a July 2013 traffic stop, Duren stole money concealed in the hidden compartment of a vehicle on which he had previously placed a GPS tracker. In March 2014, Duren was tracking a vehicle he suspected to be loaded with cash as it headed toward Mexico. The vehicle was stopped and searched at a Border Patrol Checkpoint and found to contain a large amount of cash concealed in laundry detergent boxes. Duren took custody of the seized cash, but before putting it into evidence, Duren took over $100,000 for himself. He later admitted that he deposited the stolen money into business and personal accounts to conceal those thefts. Duren then failed to file taxes for 2013 to further hide his theft. Duren also lied numerous times to agents who were investigating his crimes.
Agents from the Department of Homeland Security-Office of Inspector General, Immigration and Customs Enforcement-Office of Professional Responsibility and Homeland Security Investigations, U.S. Customs and Border Protection-Office of Professional Responsibility, and the Internal Revenue Service-Criminal Investigations conducted this investigation. The United States Attorney’s Office for the Southern District of California is recused. Assistant United States Attorneys Kevin Rapp, Abbie Broughton Marsh, and Mark Wenker of the United States Attorney’s Office for the District of Arizona prosecuted this case.
CASE NUMBER: CR-16-02892-JAH
RELEASE NUMBER: 2020-066_Duren# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Guatemalan Official Who Used Drug Trafficking Proceeds and Other Dirty Cash to Bribe Corrupt Politicians Charged in Miami Federal CourtRead the Press Release
Miami, Fl. -- South Florida federal prosecutors have charged a former Economics Minister of Guatemala, Asisclo Valladares Urruela, 44, with helping to launder close to $10 million of illegal drug proceeds and other ill-gotten money. Prosecutors allege that during a four-year conspiracy, Valladares Urruela enabled the illegal drug trade by creating a demand for untraceable cash, cash that Valladares Urruela used to bribe corrupt Guatemalan politicians.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert E. Bornstein, Acting Special Agent in Charge, FBI, Washington Field Office Criminal Division, and Kevin W. Carter, Special Agent in Charge, DEA, Miami Field Division, made the announcement.
According to the criminal complaint affidavit, former Minister Valladares Urruela’s co-conspirators included a major drug trafficker, a corrupt Guatemalan politician, and a crooked Guatemalan bank employee. The bank employee was the conduit between those with the dirty cash (the drug trafficker and the corrupt politician) and the person who needed it (Valladares Urruela). Maximizing on the employee’s access to and familiarity with banking mechanisms, the co-conspirators executed a sophisticated money laundering scheme that allegedly involved, among other activities, unlawful money exchanges between parties in different countries through “mirror transactions” that left no paper trails, development of fraudulent investment opportunities that yielded false financial gains, creation of sham documents to make ill-gotten gains appear legitimate, and steady hand-to-hand deliveries of large amounts of cash.
This money laundering conspiracy lasted from 2014 to 2018 and benefitted each co-conspirator. The bank employee got a cut of the various financial transactions. The drug trafficker and corrupt politician were able to exchange their dirty cash for what appeared to be legitimate earnings, complete with papers trails. This allowed the criminals to enjoy their money openly and publicly, as well as to move money to other locations secretly, including to different locations in South America. Valladares Urruela regularly received backpacks, duffel bags, and brief cases full of dirty, untraceable cash that he knew came from drug trafficking and corruption and used it to bribe Guatemalan politicians, according to the complaint affidavit. Valladares Urruela’s demand for bribe cash was allegedly so great, he allegedly once remarked to a co-conspirator that politicians must think money grows on trees.
Some of the money from Valladares Urruela’s alleged scheme with his co-conspirators passed through U.S. bank accounts. At least two Miami companies allegedly helped the co-conspirators move money to South America.
“This case demonstrates the unfortunate links that sometimes exist in Central and South American countries among drug traffickers, business people, and corrupt politicians,” said U.S. Attorney Ariana Fajardo Orshan. “Although Miami serves as a bridge between the United States and our neighbors to the south, drug traffickers, corrupt officials, and their dirty money are not welcome in our district. The U.S. Department of Justice stands with its law enforcement partners in neighboring countries in the fight against money laundering and narcotics trafficking.”
“This investigation demonstrates that the FBI and our partners will not stop at the borders to identify and locate criminals,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI will continue to work with our foreign and domestic partners to bring to justice Asisclo Valladares Urruela and others like him who perpetuate the unfortunate link of drug trafficking and political corruption that sometimes exists."
“No one is ever above the law,” said DEA Miami Field Division Special Agent in Charge Kevin W. Carter. “Government officials, both foreign and domestic, are expected to obey laws. When corruption exists, it poisons the welfare of nations and almost always involves other types of crimes. The DEA Miami Field Division will always support its law enforcement partners, both national and international, to combat drug trafficking and all other criminal activities that go along with it.”
The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with this case: the Narcotic and Dangerous Drug Section of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the U.S. Department of Justice’s Office of International Affairs, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.
Assistant U.S. Attorney Walter M. Norkin is prosecuting this case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
The criminal complaint charges Valladares Urruela with conspiring to commit money laundering. The charges in a criminal complaint are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.
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 on http://pacer.flsd.uscourts.gov, under Case No. 20-MJ-03308.
signed_complaint_valladares.pdfFelon sent back to prison for transporting illegal guns in vehicleRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old resident of Pharr has been ordered to federal prison after admitting to being a felon in possession of six firearms, announced U.S. Attorney Ryan K. Patrick.
Erasmo Elizondo-Moreno pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Elizondo-Moreno to serve a 66-month sentence to be immediately followed by three years of supervised release.
“When firearms enter the gray market, they are often destined to further a criminal enterprise which fuels violent crime,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We are pleased to work with our partner agencies to take these illegally possessed guns off the street before they do just that.”
On June 7, 2019, authorities pulled Elizondo-Moreno over for a traffic violation. At that time, he consented to a search of his vehicle. Law enforcement soon found a tool bag in the trunk which contained six pistols concealed inside four vacuum-sealed bags.
He later admitted to transporting the firearms to the Rio Grande Valley in exchange for $500.
Having been convicted April 25, 2019, for possessing marijuana, he is prohibited per federal law of possessing any firearms or ammunition.
Elizondo-Moreno has been in custody since his arrest for a pretrial violation on May 2 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Kleberg County Sheriff’s Office. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Federal grand jury indicts Hamilton man with sexually trafficking, exploiting teenRead the Press Release
CINCINNATI – A federal grand jury has charged Malikai Willis, 24, of Hamilton, Ohio, with sexually trafficking and exploiting a child in an indictment returned here.
Malikai appeared in federal court today on the four-count indictment.
According to the indictment, from September 2019 through January 2020, Willis trafficked a 16-year-old female and caused her to engage in commercial sex acts.
Additionally, in November 2019 and January 2020, Willis allegedly created child pornography when he created three sexually explicit videos of the victim.
Sex trafficking a minor is punishable by 10 years up to life in prison. Producing child pornography carries a potential prison sentence of 15 to 30 years.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Jim Neil and Hamilton County Prosecutor Joe Deters announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Exfuncionario guatemalteco que utilizó las ganancias del narcotráfico y otros fondos sucios para sobornar a políticos corruptos ha sido acusado en el Tribunal Federal de MiamiRead the Press Release
Miami, Florida. — Los fiscales federales del sur de Florida han acusado al exministro de Economía de Guatemala, Asisclo Valladares Urruela, de 44 años, de ayudar a lavar cerca de $ 10 millones de ganancias ilegales de drogas y otro dinero mal habido. Los fiscales alegan que, durante una conspiración de cuatro años, Valladares Urruela permitió el comercio ilegal de drogas al crear una demanda de efectivo sin rastro, que Valladares Urruela solía usar para sobornar a políticos guatemaltecos corruptos.
El anuncio fue hecho por Ariana Fajardo Orshan, Fiscal Federal de EE. UU. para el Distrito Sur de Florida; Robert E. Bornstein, Agente Especial Interino a cargo de la División Criminal de la Oficina de Campo de Washington del FBI; y Kevin W. Carter, Agente Especial a cargo de la División de Campo de Miami de la DEA.
Según la declaración jurada de la denuncia penal, los cómplices del exministro Valladares Urruela incluían a un importante traficante de drogas, un político guatemalteco corrupto y un empleado bancario guatemalteco tramposo. El empleado del banco era el enlace entre los que tenían el dinero sucio (el traficante de drogas y el político corrupto) y la persona que lo necesitaba (Valladares Urruela). Usando al máximo el acceso del empleado a los mecanismos bancarios y su familiaridad con ellos, los cómplices ejecutaron un sofisticado plan de lavado de dinero que supuestamente involucraba, entre otras actividades, intercambios ilegales de dinero entre partes en diferentes países a través de “transacciones espejo” que no dejaban rastros en papel, el desarrollo de oportunidades de inversión fraudulentas que produjeron ganancias financieras falsas, la creación de documentos falsos para hacer que las ganancias mal habidas parecieran legítimas, y la entrega personal constante de grandes cantidades de efectivo.
Esta conspiración de lavado de dinero duró de 2014 a 2018 y benefició a cada uno de los cómplices. El empleado del banco obtuvo una tajada de las diversas transacciones financieras. El traficante de drogas y el político corrupto pudieron cambiar su dinero sucio por lo que parecía ser ganancias legítimas, con todo y rastros en papel. Esto permitió que los criminales disfrutaran su dinero de manera abierta y pública, así como mover el dinero a otros lugares en secreto, incluyendo a diferentes lugares en Sudamérica. Valladares Urruela recibió con regularidad mochilas, bolsas de viaje y portafolios llenos de efectivo sucio y no trazable que él sabía que provenían del narcotráfico y la corrupción y lo utilizó para sobornar a políticos guatemaltecos, según la declaración jurada de la denuncia. Supuestamente, la demanda de dinero en efectivo para sobornos de Valladares Urruela fue tan grande, que se supuestamente le dijo una vez a un cómplice que los políticos han de pensar que el dinero crece en los árboles.
Parte del dinero del presunto esquema de Valladares Urruela con sus cómplices pasó por cuentas bancarias estadounidenses. Al menos dos compañías de Miami supuestamente ayudaron a los cómplices a mover el dinero a Sudamérica.
“Este caso muestra los desafortunados vínculos que a veces existen entre los traficantes de drogas, los empresarios y los políticos corruptos en los países de Centroamérica y Suramérica,” dijo la Fiscal Federal Ariana Fajardo Orshan. “Aunque Miami sirve como un puente entre los Estados Unidos y nuestros vecinos del sur, los traficantes de drogas, los funcionarios corruptos y su dinero sucio no son bienvenidos en nuestro distrito. El Departamento de Justicia de los Estados Unidos apoya a sus socios de aplicación de la ley en los países vecinos en la lucha contra el lavado de dinero y el tráfico de narcóticos.”
“Esta investigación demuestra que el FBI y nuestros socios no se detendrán en las fronteras para identificar y localizar a los criminales,” dijo Robert E. Bornstein, Agente Especial Interino a cargo de la División Criminal de la Oficina de Campo de Washington del FBI. “El FBI continuará trabajando con nuestros socios extranjeros y nacionales para llevar ante la justicia a Asisclo Valladares Urruela y otros como él que perpetúan el desafortunado vínculo del narcotráfico y la corrupción política que existe a veces.”
“Nadie es superior a la ley,” dijo el Agente Especial a cargo de la División de Campo de Miami de la DEA, Kevin W. Carter. “Se espera que los funcionarios gubernamentales, tanto extranjeros como nacionales, obedezcan las leyes. Cuando existe la corrupción, envenena el bienestar de las naciones y casi siempre involucra otros tipos de crímenes. La División de Campo de Miami de la DEA siempre apoyará a sus socios de aplicación de la ley, tanto nacionales como internacionales, para combatir el tráfico de drogas y todas las demás actividades criminales asociadas.”
La acusación fue parte de la Operación Black Mass, que es el resultado de los esfuerzos continuos de la Fuerza de Tarea contra el Crimen Organizado y la Droga (OCDETF), una alianza entre las autoridades federales, estatales y locales de aplicación de la ley. La misión de la OCDETF es identificar, investigar y enjuiciar a miembros de alto nivel del tráfico de drogas y las iniciativas de lavado de dinero, reuniendo la experiencia combinada y las habilidades únicas de las fuerzas de aplicación de la ley federales, estatales y locales.
La Fiscal de Estados Unidos Fajardo Orshan agradeció a las siguientes entidades y agencias por su colaboración, trabajo de investigación y ayuda en este caso: la Sección de Narcóticos y Drogas Peligrosas de la División Criminal del Departamento de Justicia, la Oficina para el Distrito Sur de California del Fiscal de Estados Unidos, la Oficina de Asuntos Internacionales del Departamento de Justicia de EE. UU., la Oficina de Campo del FBI en Miami, la oficina del FBI en Guatemala, la oficina de la DEA en Guatemala, la Oficina de Investigaciones de Seguridad Nacional en Miami y San Diego del Servicio de Inmigración y Control de Aduanas de EE. UU., y la Oficina de Aduanas y Protección Fronteriza en Miami.
El Fiscal Federal Auxiliar Walter M. Norkin está procesando este caso. El Fiscal Federal Auxiliar Daren Grove está manejando los decomisos.
La denuncia penal acusa a Valladares Urruela de conspirar para cometer lavado de dinero. Las acusaciones contenidas en la denuncia penal son meramente acusaciones, y el acusado se presume inocente a menos que se demuestre su culpabilidad en un tribunal de justicia.
Los documentos de la corte y la información relacionada se pueden encontrar en el sitio web de la Corte del Distrito Sur de Florida en www.flsd.uscourts.gov o en http://pacer.flsd.uscourts.gov, bajo el No. de Caso 20-MJ-03308.
signed_complaint_valladares.pdfEight Defendants Arrested in Early Morning Drug Roundup, Charged in Transnational Drug Trafficking RingRead 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 six defendants have been charged by complaint and two other defendants indicted by a federal grand jury for their roles in a transnational drug trafficking ring that stretched from Mexico to Buffalo.
Charged by complaint with conspiring to possess with intent to distribute, and distributing, controlled substances are:
• Ronnie Charleston; • Robert Claiborne; • Antoine Gilbert; • Tonie Wiley; • Aaron Spain Jr.; and
• Eric Hale, A/K/A Cuz E.If convicted, the defendants face a maximum penalty of 20 years in prison and a $1,000,000 fine.
Charged by indictment with narcotics conspiracy and possessing with intent to distribute crack cocaine and cocaine are:
• Saan Thompson, A/K/A Duke; and
• Louis Gilbert.Thompson and Gilbert face a mandatory minimum penalty of five years in prison, a maximum of 40 years, and $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the criminal complaint and the indictment, the defendants are accused of being part of a drug trafficking ring that stretched from Mexico to Buffalo. The organization is accused of moving bulk quantities of cocaine, heroin, and fentanyl into the Western New York area. It is believed the organization’s Buffalo-based operation is headed by David Burgin and David Washington, who were previously arrested on drug conspiracy charges in February 2020. Burgin and Washington used a network of distributors to sell narcotics in the Western New York area, as well as several out of state sources of supply for cocaine and heroin. David Washington supplied Saan Thompson with narcotics in Buffalo. Thompson then sold the narcotics to the other defendants for re-distribution. The investigation included multiple intercepted communications between the defendants.
During the execution of four search warrants this morning at four locations, investigators seized a kilogram of suspected cocaine; 40 grams of suspected crack cocaine packaged for distribution; multiple pounds of marijuana; a loaded handgun; 1500 rounds of assorted ammunition; pistol magazines; and approximately $27,000 in cash.
“This case is a tremendous example of the determination of our law enforcement partners to continue to follow the evidence wherever it leads,” stated U.S. Attorney Kennedy. “Investigators did not stop when the leaders of this dangerous drug trafficking organization were previously apprehended and taken off the streets. Investigative efforts continued leading to the charging of eight additional defendants in this case.”
“Today’s arrests and seizures represent a critical disruption to an international drug trafficking ring,” said Kevin Kelly, Special Agent-in-Charge of Homeland Security Investigation Buffalo. “I would like to thank the law enforcement personnel at all levels of government whose hard work and collaboration led to today’s results. HSI and our partners will continue efforts to increase community safety through the dismantlement of this drug trafficking organization.”
Defendants Saan Thompson and Louis Gilbert were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and detained. Defendants Aaron Spain and Ronnie Charleston made an initial appearance also before Judge Schroeder and were also detained. Defendants Robert Claiborne, Antoine Gilbert, Tonie Wiley, and Eric Hale, made initial appearances and were released on conditions.
The criminal complaint and indictment are the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, under the direction of Major James Hall; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Doctor Among 10 Facing Federal Drug Trafficking Charges Related to Distribution of Opioids Through Bogus Pain Clinics Across SoCalRead the Press Release
SANTA ANA, California– Law enforcement authorities this morning arrested four defendants charged in two federal grand jury indictments alleging a narcotics trafficking ring that sold illegal opioid prescriptions for cash through a series of sham medical clinics.
Those charged in the indictments include Dr. John Michael Korzelius, 68, a.k.a. “Dr. K,” of Camarillo, who worked at a Santa Ana pain management clinic where he allegedly wrote medically unnecessary prescriptions to “patients” who paid cash. Over the course of two years, Korzelius and other medical professionals working under his guidance, prescribed approximately 439,090 pills of 30mg oxycodone – the highest dose of short-acting oxycodone available, and the dose most popular for the drug-abusing population, according to court documents.
The charges in this matter are the result of an investigation by agents with the DEA and IRS Criminal Investigation into ChiroMed, which operated a group of chiropractic, medical and wellness clinics in Los Angeles, Orange and San Bernardino counties. Korzelius, along with other medical professionals, including physician’s assistants, allegedly met with fraudulent patients and provided them with unnecessary prescriptions for drugs, including oxycodone.
The two grand jury indictments unsealed today charge 10 defendants with a variety of narcotics-related offenses, including conspiracy to distribute controlled substances, possession with intent to distribute oxycodone, distribution of fentanyl, and money laundering.
Along with Korzelius, the indictments charge:
- Justin Douglas Cozart, 42, of Woodland Hills, who operated and supervised the ChiroMed medical clinics;
- Damoon Joe Navarchi, 33, of Woodland Hills, who assisted Cozart in operating the clinics;
- Xavier Muduki Mabale, 42, of Anaheim, who is accused of recruiting sham patients to obtain fraudulent oxycodone prescriptions from the medical clinics;
- Mayra Barrios, 37, of Yorba Linda, who allegedly oversaw the day-to-day management of the medical clinics, including the issuance of fraudulent oxycodone prescriptions to sham patients;
- Harrison Maruje Mureithi, 42, of Norco, who allegedly coordinated the purchase, collection, packaging, and shipment of oxycodone to buyers on the East Coast;
- Duncan Wanjohi, 30, of Anaheim, who allegedly assisted Mureithi in the buying and shipping of narcotics;
- Pierre Delva, Jr., 33, a.k.a. “Big Head,” of Medford, Massachusetts, who allegedly provided financing to Mureithi to purchase bulk quantities of oxycodone; and
- Louise W. Mureithi, 69, of Anaheim, Harrison Mureithi’s mother, who allegedly received packages of cash sent to her son for oxycodone;
- Majid Nojavan, 42, of Laguna Niguel, charged in a spinoff case from the primary investigation, who allegedly advertised oxycodone for sale on Craigslist, sold fentanyl to an undercover police officer, and escorted the undercover police office to an Inglewood medical clinic to obtain a fraudulent oxycodone prescription.
Harrison Mureithi, Mabale, Louise Mureithi, and Nojavan were arrested by law enforcement this morning, and they are expected to make their initial court appearances this afternoon in United States District Court in Santa Ana. Korzelius, Cozart, Navarchi, and Barrios are being summonsed into court and are expected to make their initial appearances in United States District Court next week. Delva and Wanjohi are fugitives.
As a result of a two-year investigation into the fraudulent medical clinics, DEA agents seized 20,737 oxycodone pills, and $177,610 in cash. Law enforcement intercepted a mailed parcel contained a teddy bear stuffed with two bags of oxycodone pills.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charges, the defendants each would face a statutory maximum sentences of at least 20 years in federal prison.
The investigation into the sham medical clinics was handled by the Drug Enforcement Administration and IRS Criminal Investigation. The Department of Health and Human Services, Office of Inspector General and the Torrance Police Department provided substantial assistance. The investigation of Majid Nojavan was handled by Homeland Security Investigations and the Costa Mesa Police Department.
These cases are being prosecuted by Assistant United States Attorneys Scott D. Tenley and Andrew M. Beshai of the Santa Ana Branch Office.
Department of Justice Files Sexual Harassment Lawsuit Against Owner of Rental Properties in Elizabeth, New JerseyRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that it has filed a lawsuit alleging that the owner of rental properties in Elizabeth, New Jersey, violated the Fair Housing Act by subjecting tenants to sexual harassment, U.S. Attorney Craig Carpenito announced.
The complaint alleges that Joseph Centanni, who owns hundreds of rental units in and around Elizabeth, has subjected tenants and applicants to sexual harassment on multiple occasions since at least 2005.
“No one should ever be forced to provide sexual favors, or otherwise endure sexual harassment, as a condition to keep or obtain housing,” U.S. Attorney Craig Carpenito said. “Sexual harassment in housing is illegal under the Fair Housing Act, and we will vigorously enforce this federal law to end this depraved type of behavior.”
“The Fair Housing Act protects the right of all persons in our nation to rent a home without suffering sexual exploitation at the hands of abusive landlords. Demanding sexual favors from tenants, especially those who are financially vulnerable, is illegal,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will hold accountable those who engage in such cruel, depraved, and illegal conduct and will work tirelessly to obtain relief for their victims.”
According to the complaint:
Centanni demanded sexual favors to get or keep housing, offered housing benefits like reduced rent in exchange for sexual favors, touched tenants and applicants in a way that was sexual and unwelcome, and made unwelcome sexual comments and advances to tenants and applicants. The complaint also alleges that Centanni initiated or threatened to initiate eviction actions against tenants who objected to or refused his sexual advances. According to the complaint, Centanni participates in the federal Housing Choice Voucher Program (also known as “Section 8”) and receives approximately $102,000 each month in Housing Choice Voucher payments.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
Today’s lawsuit is the result of a joint investigative effort with the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office and Office of Inspector General.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. U.S. Attorney Carpenito has also reaffirmed the U.S. Attorney’s Office’s commitment to combatting sexual harassment in housing amid the COVID-19 pandemic. The goal of the Department initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 17 lawsuits alleging sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the U.S. Attorney’s Civil Rights Unit and its enforcement efforts is available at https://www.justice.gov/usao-nj/civil-rights-enforcement. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Centanni, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number one to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or e-mailing the Justice Department at [email protected].
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Assistant U.S. Attorney Susan Millenky, of the U.S. Attorney’s Office Civil Rights Unit, and Trial Attorneys Erin Meehan Richmond and Kathryn Legomsky, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Denham Springs Man Sentenced to 68 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced Jesse Sloane, age 59, of Denham Springs, Louisiana, to serve 68 months in federal prison following his conviction for receipt of child pornography. Sloane will also be required to serve five years of supervised release and register as a convicted sex offender upon his release from prison.
According to admissions Sloane made during his plea, on March 14, 2018, Internet Crimes Against Children Task Force agents executed a search warrant at Sloane’s home where agents recovered computer equipment from his bedroom, which contained numerous images of child pornography. During a post-Miranda interview, Sloane admitted that the electronic devices were his and that he was responsible for downloading child pornography at the residence.
A subsequent forensic examination of Sloane’s devices revealed more than 600 images of child pornography including images and videos of prepubescent minors under the age of 12 years engaged in various sex acts.
U.S. Attorney Fremin stated, “This conviction and sentence demonstrate the commitment this office has to prosecuting those who exploit our children, who are among the most innocent and vulnerable among us. My office looks forward to continuing our partnership with federal, state and local law enforcement to aggressively pursue these child predators. I want to commend our prosecutors and the FBI for their excellent work in this case.”
“Investigating individuals like Jesse Sloane is one of the highest priorities of the FBI. He violated innocent lives by sexually exploiting children and viewing child sexual abuse material. This sentence is the culmination of an investigation conducted by special agents, intelligence analysts, and Internet Crimes Against Children Task Force agents who worked tirelessly to bring him to justice,” stated Special Agent in Charge Bryan Vorndran.
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Demetrius D. Sumner and Jamie A. Flowers, Jr., who also serves as a Deputy Criminal Chief.
DOJ Reaches Proposed Consent Decree with Hampton Roads Regional JailRead the Press Release
ALEXANDRIA, Va. – The Department of Justice today announced a proposed consent decree with the Hampton Roads Regional Jail Authority resolving the United States’ investigation into allegedly unlawful conditions at the Hampton Roads Regional Jail (Jail) in Portsmouth as outlined in the government’s December 2018 Notice.
Under the proposed consent decree, the Jail will develop and implement policies, procedures, and training regarding adequate medical and mental health care and appropriate housing for prisoners with serious mental illness. These measures include appropriate screening and assessment by qualified professionals, adequate treatment planning and suicide prevention practices, specialized mental health housing units, and a quality assurance program. The proposed consent decree would be overseen by an independent monitor to assess compliance and to provide technical assistance to the Jail. The court will determine if the proposed consent decree is fair, adequate, reasonable, and necessary.
“We are pleased that the Hampton Roads Regional Jail Authority has agreed to address the deficiencies our investigation uncovered,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to continuing to work with the Hampton Roads Regional Jail to ensure that those incarcerated at the Jail receive adequate medical and mental health care, and that prisoners’ rights under the Constitution and the Americans with Disabilities Act are protected.”
The Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated pursuant to Title II of the Americans with Disabilities Act (ADA). In December 2018, the Department provided the Jail written notice of the alleged unlawful conditions and the minimum remedial measures necessary to address them. Specifically, the Department concluded that there is reasonable cause to believe that the Jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Eighth and Fourteenth Amendments of the U.S. Constitution. The Department also concluded that the Jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the ADA.
“This agreement will ensure that prisoners are no longer at risk of serious harm as a result of the Jail’s practices,” said Eric Dreiband, Assistant Attorney General of the Civil Rights Division. “We commend the Hampton Roads Regional Jail Authority for its willingness to make changes to ensure that prisoners receive necessary medical and mental health care.”
This matter is handled by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the Department via phone at (844) 644-0225 or by email at: [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Crystal Geyser Water Bottler Ordered to Pay $5 Million Criminal Fine for Illegal Storage, Transportation of Arsenic-Laced WasteRead the Press Release
LOS ANGELES – The company that produces “Crystal Geyser Natural Alpine Spring Water” was sentenced today to three years of probation and ordered to pay criminal fines totaling $5 million for illegally storing and transporting hazardous waste created from filtering arsenic out of spring water at its facility in Olancha, California.
United States District Judge Dolly M. Gee also ordered CG Roxane LLC to implement a compliance program within 90 days to ensure it complies with federal and state environmental laws and implement that program within 180 days of today’s sentencing hearing. The compliance program includes the company’s retention of a qualified and experienced third-party environmental auditor to conduct annual audits of CG Roxane’s Olancha facility.
The company pleaded guilty on January 9 to one count of unlawful storage of hazardous waste and one count of unlawful transportation of hazardous material. The financial penalty Judge Gee imposed today consisted of a $2.5 million criminal fine for each count.
CG Roxane obtained water by drawing groundwater from the eastern slope of the Sierra Nevada mountains that contained naturally occurring arsenic. The company used sand filters to reduce the concentration of arsenic so the water would meet federal drinking water standards. To maintain the effectiveness of the sand filters, CG Roxane back-flushed the filters with a sodium hydroxide solution, which generated thousands of gallons of arsenic-contaminated wastewater.
For approximately 15 years, CG Roxane discharged the arsenic-contaminated wastewater into a manmade pond – known as “the Arsenic Pond” – at its Olancha facility along Highway 395 in Inyo County.
In March 2013, the Lahontan Regional Water Quality Control Board took a sample from the Arsenic Pond and in 2014 informed CG Roxane that the sample had an arsenic concentration that was more than eight times the hazardous waste limit, creating a risk to the area’s groundwater and wildlife. The water board referred the matter to the California Department of Toxic Substances Control (DTSC), which took its own samples that showed the Arsenic Pond had an arsenic concentration almost five times the federal hazardous waste limit. Subsequent sampling and testing by CG Roxane and its retained laboratory confirmed a similar arsenic concentration in the Arsenic Pond.
DTSC officials met with CG Roxane representatives in April 2015, presented a list of preliminary violations, and instructed the company to arrange for the removal of the Arsenic Pond.
In May 2015, CG Roxane hired two Los Angeles-area entities to remove the hazardous waste and transport it – which was done without the proper manifest and without identifying the wastewater as a hazardous material, according to court documents. The arsenic-contaminated wastewater was ultimately transported to a Southern California facility that was not authorized to receive or treat hazardous waste. As a result, more than 23,000 gallons of the wastewater from the Arsenic Pond allegedly was discharged into a sewer without appropriate treatment.
The two companies hired to transport and treat the wastewater – United Pumping Services, Inc. and United Storm Water, Inc., both located in the City of Industry – each pleaded guilty on June 10 to four counts of negligently causing a violation of a pretreatment program requirement. On July 29, Judge Gee ordered each company to pay a $375,000 criminal fine.
The investigation in this case focused on alleged violations involving the handling, storage and transportation of CG Roxane’s wastewater, not the safety or quality of CG Roxane’s bottled water.
The investigation in this matter was conducted by the United States Environmental Protection Agency, Criminal Investigations Division and the United States Department of Transportation’s Office of Inspector General. These federal agencies received assistance from the California Department of Toxic Substances Control.
This case was prosecuted by Assistant United States Attorneys Dennis Mitchell and Heather C. Gorman of the Environmental and Community Safety Crimes Section.
The United States Attorney’s Office for the Eastern District of California also assisted in the investigation.
Colombo Crime Family Soldier Sentenced to 37 Months in Prison for Racketeering, Loansharking and Illegal Sports GamblingRead the Press Release
Earlier today, Vito Difalco, also known as “Victor” and “The Mask,” an inducted member of the Colombo organized crime family, was sentenced by United States District Judge William F. Kuntz, II, to 37 months’ imprisonment for racketeering.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, the defendant has been held accountable for his participation in a violent criminal enterprise that used fear as fuel,” stated Acting United States Attorney DuCharme. “Investigating and disrupting the activities of organized crime will always remain a priority of this Office and our law enforcement partners.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department, for their outstanding investigative work.
Difalco and co-defendant Joseph Maratea operated a loansharking business, extending loans at exorbitant interest rates and under the threat physical violence or harm if interest payments were not made on a timely basis. Specifically, they charged $15 in weekly interest payments on every $500 extended, which amounted to 3% weekly interest payments or 156% annual interest. To ensure both that they could locate their debtors and that their debtors understood that Difalco and Maratea knew where they resided, they required debtors to provide copies of their driver’s licenses and their contact information. Defendant Difalco also earned illegal proceeds through his gambling business, which included illegal sports-betting and video gambling machines, Difalco used a legitimate business – a bar called Tryst which he operated – to facilitate his criminal activity and limit detection by law enforcement. Specifically, he used the bar to attract new loansharking customers and used his employees to collect loansharking payments. He also used the bar to operate and promote his illegal gambling businesses.
On April 19, 2018, Difalco and Matera had the following conversation about a debtor’s missed payments:
DIFALCO: Alright stretch out, ‘cause we are going to take a ride in a little while.
MARATEA: Alright.
DIFALCO: I’ll be here, then we’ll take a ride up there.
MARATEA: Where by [John Doe #8]?
DIFALCO: Yeah, we’ll go by [John Doe #8].
MARATEA: Did you call him?
DIFALCO: I called him, he didn’t pick up. I figure I’ll ring the bell and flood
the house.
Maratea pleaded guilty to racketeering and was sentenced in April 2020 to time served and two years’ probation with the first four months to be served under home incarceration
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Elizabeth A. Geddes and Mathew S. Miller are in charge of the prosecution.
The Defendant:
VITO DIFALCO (also known as “Victor” and “The Mask”)
Age: 65
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-337 (WFK)
Clarksville man scammed investors out of over $1 millionRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Anthony T. Leonard, 53, Clarksville, Ind., was charged with twenty-two counts of wire fraud and one count of money laundering. His misrepresentations and false promises caused investors to invest over $1 million in his companies, nurseVersity LLC, Versity Edu, Versity Inc., and VersityU.
“The false and fraudulent misrepresentations and promises Leonard made to unsuspecting investors is shameful.” said Minkler. “His lies and deceit caused a lot of pain and mistrust to the victims while he enriched himself with luxury. His fraud has come to an end and the victims can begin healing from this fraudster’s pain.”
Leonard developed a software product called nurseVersity, which was designed to assist nursing students in passing their nursing board examinations.
From approximately 2013 through at least 2019, Leonard sought out investors to his companies, and in doing so, made numerous false or fraudulent pretenses, representations, or promises pertaining to the financials of the companies, customer information, and ownership interests.
Leonard also misrepresented his qualifications, education, medical history, personnel issues, and provided many other false and fictitious reasons for needing money. All this was done for his personal benefit.
As a result, investors paid Leonard over $1 million for purported ownership interests and other rights to alleged sham companies. The majority of the funds received from these investors were used by Leonard and his wife for their personal enrichment. He purchased property in New Albany with a lake and buildings. He also enjoyed expensive dinners, trips, and other unrelated business expenses.
This case was investigated by the United States Postal Inspection Service and United States Secret Service. These agencies were also assisted by the Indiana Secretary of State.
“The U.S. Postal Inspection Service, the law enforcement and security arm of the U.S. Postal Service, investigates any fraud in which the U.S. Mail is used.” said Acting Inspector in Charge Richard Sheehan. This investigation was an excellent example of a partnership between the U.S. Postal Inspection Service, U.S. Secret Service, and the Indiana Secretary of State working together to combat those willing to defraud innocent customers and businesses from their money through illegal or nefarious means.”
“Today’s announcement is a direct result of the extraordinary cooperation and partnership among law enforcement agencies at all levels,” said Eric Reed, Special Agent in Charge, United States Secret Service Indianapolis Field Office. “The defendant abused his position of trust for his own personal benefit by deliberately stealing millions of dollars from unsuspecting investors. This case represents the core of the Secret Service’s commitment to protecting the United States financial infrastructure and is a testament to the strong partnerships between the U.S. Attorney’s Office, U.S. Postal Inspection Service and the Indiana Secretary of State.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who is prosecuting this case for the government, Leonard could face up to 20 years’ imprisonment, if convicted.
An complaint is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
If anyone has invested money with or feels they might be a victim of Anthony T. Leonard, they are encouraged to contact the U.S. Postal Inspection Service at 877-876-2455.
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 sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute complex and large-scale fraud schemes that undermine faith in the markets. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 5.1)
Cambridge Man Pleads Guilty to Gun and Cocaine Trafficking ChargesRead the Press Release
BOSTON – A Cambridge man pleaded guilty today to firearms trafficking charges related to six separate sales.
Ezequiel Netzahualt, 25, pleaded guilty to dealing firearms without a license and selling cocaine base, commonly known as crack cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 2, 2020. Netzahualt was charged in February 2020.
Netzahualt sold 11 firearms in Cambridge during six separate transactions between October 2019 and January 2020. Netzahualt also sold crack cocaine on Nov. 20, 2019.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a $1 million fine. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit is prosecuting the case.
Buffalo Man Indicted on Charges of Making False Statements on Immigration DocumentsRead 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 a federal grand jury has returned an indictment charging Mohammed Moinul Hossain, 44, of Buffalo, NY, with making false statements in an immigration matter, and making a false statement in a matter within the jurisdiction of the executive branch. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan Cantil, who is handling the case, stated that according to the indictment, in August 2018, the defendant filed an application for lawful permanent residency in the United States. On that form, Hossain indicated that he had not previously used or gone by any other name, and denied ever submitting fraudulent or counterfeit documentation to any U.S. Government official to obtain or attempt to obtain an immigration benefit. Hossain also indicated that he had never lied about, concealed, or misrepresented any information on an application or petition to obtain a visa. However, subsequent investigation determined that in February 1997, the defendant did in fact file an application for permanent residency using the name Saifur Rahman, and the application was denied. Hossain failed to disclose this prior identity and prior application for conditional permanent residency.
The defendant was arraigned today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and released on conditions.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and U.S. Citizenship and Immigration Services, under the direction of District Director Denis C. Riordan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Going to Prison for Five Years for Possessing A Gun While Selling DrugsRead 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 James Lee, 27, of Buffalo, NY, who was convicted of possession of firearms in furtherance of drug trafficking crimes, was sentenced to serve 60 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Misha A. Coulson, who handled the case, stated that in March 2019, the defendant sold and distributed fentanyl, cocaine and crack cocaine to others in the Buffalo area. During this time, Lee possessed various firearms in furtherance of his drug trafficking in order to protect himself, his drugs, and his drug proceeds.
On March 13, 2019, investigators executed a search warrant at the defendant’s Oakmont Avenue residence. During the search, they recovered two firearms, one stolen; ammunition; small bags of suspected crack cocaine and cocaine; a bag of suspected fentanyl; $546.00 in cash; and three digital scales.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for June 8, 2020, at 1:00 p.m. before Judge Skretny.
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Brooklyn Man Charged with Sabotage of NYPD VehicleRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Jeremy Trapp with sabotaging a New York City Police Department (“NYPD”) van by cutting one of the vehicle’s brake lines. Trapp was arrested earlier today at his home in Brooklyn, and was ordered detained pending trial by United States Magistrate Judge Steven M. Gold this afternoon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, NYPD, announced the arrest and charges.
"Trapp’s alleged actions had potentially life-threatening consequences for NYPD officers and members of the public, who could have been injured by the vehicle’s brake failure,” stated Acting United States Attorney DuCharme. “This Office will ensure that anyone who targets police officers or acts with the intent to undermine public safety efforts will face justice.”
“Mr. Trapp’s alleged behavior is illegal, and for the information of others who may have been planning similar criminal activity, we’d like to remind them that the FBI investigates and charges this type of behavior as a federal crime,” stated FBI Assistant Director-in-Charge Sweeney. “Citizens of this city, many of whom are not currently collecting paychecks, paid for the equipment allegedly damaged by Mr. Trapp. They expect it to be available to protect and serve our community when needed. Behavior like the type alleged here diverts resources, destroys property, risk lives, and detracts from the important message thousands of peaceful citizens have rightfully highlighted.”
“The defendant who believed he was cutting the brake lines to a vehicle that could be carrying up to nine police officers clearly intended to create a situation that could result in serious injuries or death for officers or civilians. No one should confuse this conduct with lawful protest. We appreciate the work of the NYPD Intelligence Bureau, the FBI agents and the prosecutors from the US Attorney for the Eastern District of New York in bringing these charges,” stated NYPD Commissioner Shea.
As set forth in the complaint, on July 13, 2020, Trapp participated in a demonstration outside the Brooklyn Criminal Court building in downtown Brooklyn that was objecting to the arrests of individuals who had earlier confronted pro-law enforcement demonstrators in Bay Ridge, Brooklyn. As the demonstration was winding down, Trapp spoke with an individual who was a confidential source for the NYPD (the “CS”) and he stated that he wanted to harm police officers and their supporters. Trapp also stated that he wanted to cut the brake lines on police cars. On July 17, 2020, after Trapp and the CS communicated via telephone calls and text messages, the CS drove to Trapp’s home and picked him up in the CS’s vehicle, where Trapp showed the CS his backpack, which contained, among other things, a scissor-like tool. At approximately 4:00 p.m. on July 17, 2020, Trapp and the CS approached a marked NYPD van parked near Fourth Avenue and 42nd Street in Sunset Park. Trapp crawled under the van and reached for something near one of the vehicle’s wheel wells while the CS stood nearby acting as a purported “lookout.” Trapp then crawled out from under the van and left the area with the CS. Both the CS and NYPD officers conducting surveillance recorded this incident on video. An inspection of the NYPD van revealed that a line for a wheel speed sensor had been partially severed. An NYPD automobile mechanic informed the FBI that the partially severed line is part of the NYPD Van’s anti-lock braking system, which is similar in appearance to, and in the same location as, the NYPD vehicle’s main brake line. A malfunctioning anti-lock braking system would adversely impact a driver’s ability to stop and maintain control of the van in an emergency.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Francisco J. Navarro is in charge of the prosecution.
The Defendant:
JEREMY TRAPP
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-MJ-626
Bow Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Michael Briand, 29, of Bow, pleaded guilty in federal court to fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 27, 2019, at about 4:15 pm, a cooperating individual told Nashua Police Detectives that Michael Briand and an accomplice were selling fentanyl in Nashua. At the direction of detectives, the cooperator arranged to buy a quantity of fentanyl from Briand and his accomplice. The deal took place in the bathroom of a fast food restaurant in Nashua and Briand took custody of the money in the transaction. Following the sale, detectives arrested Briand and others involved in the transaction.
Briand is scheduled to be sentenced on November 19, 2020.
“Fentanyl traffickers seek to earn profits by selling a deadly substance that undermines the health and safety of our citizens,” said U.S. Attorney Murray. “Fentanyl users invite disaster into their lives. Through Operation SOS, we are working closely with the Nashua Police Department and all of our law enforcement partners to stop the sale of dangerous illegal drugs in the Granite State.”
This matter was investigated by the Nashua Police Department’s Narcotics Intelligence Division and Problem-Oriented Policing Unit.
The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Boston Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to being a felon in possession of a firearm.
Khyeme Johnson, 33, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. Senior District Court Judge George A. O’Toole Jr, who scheduled sentencing for Nov. 9, 2020. Johnson was indicted in April 2019.
On Aug. 24, 2018, Johnson was found in possession of an Arcadia Machine & Tool .380 semiautomatic pistol with two rounds of ammunition. Johnson is prohibited from possessing a firearm due to multiple prior felony convictions.
Johnson faces a sentence of up to 10 years in prison, up to 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 and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office and the Boston Police Department. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Boston Man Pleads Guilty to Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Boston man pleaded guilty today to being a felon in possession of a firearm.
Naysaan Austin, 23, pleaded guilty via videoconference to one count of being a felon in possession of a firearm before U.S. District Court Judge Patti B. Saris, who scheduled sentencing for Nov. 12, 2020. Austin was arrested on Sept. 19, 2019, and charged by criminal complaint.
On June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Austin is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
The charging statute provides for a sentence of up to 10 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Batavia Man Going to Prison for Five Years After Being Caught with Child Pornography at A Halfway HouseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daryl Sumeriski, 52, of Batavia, NY, who was convicted of possession of child pornography, was sentenced to serve 60 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that Sumeriski was residing in a halfway house in Bath, NY, when fellow residents expressed concern about certain images they observed on the defendant’s cell phone and alerted authorities. As a result, a search warrant was executed and investigators found more than 3,000 images of child pornography on Sumeriski’s phone. Some of the images depicted violent abuse of infants and toddlers.
The sentencing is the result of an investigation by the Department of Homeland Security, under the direction of Special Agent-in-Charge Kevin Kelly.
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Avalos Sentenced to 108 Months in Federal Prison After Pleading Guilty to Kidnapping JuvenileRead the Press Release
SALT LAKE CITY – An associate of drug traffickers, who assisted two others in kidnapping a 17-year-old boy from his mother’s Utah business in August 2018 while trying to collect a heroin-related drug debt, will spend 108 months in federal prison.
Nadia Carolina Avalos, 34, of Phoenix, was sentenced Tuesday morning by U.S. District Judge David Sam. Avalos will serve 36 months of supervised release when she finishes her prison sentence. There is no parole in the federal criminal justice system.
Two other defendants in the case have also pleaded guilty to kidnapping. Issa Jassim Al-Sadoon, 28, of Phoenix, pleaded guilty to kidnapping in March and was sentenced to 120 months in federal prison and 36 months of supervised release on July 8, 2020. Juan Carlos Moreno Trinidad, 43, of Phoenix, pleaded guilty to kidnapping in July. Sentencing for Moreno Trinidad is Oct. 13, 2020. His plea agreement includes a stipulated sentence of 144 months in federal prison, subject to Court approval.
“Organized crime is active in Utah. As the United States Attorney for Utah, I have made it a top priority to confront and dismantle criminal organizations. This case is a glaring example of why we must keep law enforcement pressure on drug traffickers who are drawn to our neighborhoods by an unhealthy demand for illicit drugs. A fugitive leader in a narcotics trafficking organization, operating from south of the border, directed a ransom kidnapping in an otherwise safe Utah neighborhood. As Utahns, this is something we simply cannot tolerate,” U.S. Attorney John W. Huber said today.
“As we learned in court, Ms. Avalos’s problems with the law stem from illicit drugs, which often lends itself to criminal behavior and violence,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “Cases like this underscore the larger issues associated with the drug trade, which is why the FBI and our partner task forces are committed to investigating activity that afflicts our communities.”
“Because of the cooperation between the FBI, Salt Lake Police Department, West Valley Police Department and the Utah County Major Crimes Task Force, a 17-year-old victim of kidnapping was safely recovered and returned to his family. Members of a drug trafficking organization, responsible for this violent act, were apprehended due to the hard work and effort of each detective, officer, and agent involved in this case. We are thankful that victim is safe and that we had a part in this outcome. We will continue our efforts to pursue other drug traffickers operating in Utah,” Lt. Jeff Bailey, Director of the Utah County Major Crimes Task Force, said today.
As a part of her plea agreement with federal prosecutors, Avalos admitted that she came with others to Utah in August 2018 to collect a drug debt owed to Oscar Rene Chacon Lopez, aka Gio, another defendant in the case, from a woman in West Valley City. According to a complaint filed in the case, the defendants conducted surveillance on a business in West Valley City, operated by the woman. After they were not successful in collecting the money from the woman, Chacon, calling from Mexico, directed them to kidnap the woman’s 17-year-old son.
According to documents filed in court, the victim was kidnapped at gunpoint by Moreno Trinidad and Al-Sadoon. Avalos, assisted by Al-Sadoon and Moreno Trinidad, kept the 17-year-old son at a hotel room in Murray while Chacon attempted to collect the drug debt from his mother.
The victim called his mother and told her he had been taken by individuals who wanted money from her. She also received a short video of the inside of her truck demonstrating the kidnappers had also stolen her truck. In the following hours, Chacon sent numerous typed text messages and recorded voice messages. He threatened her son and other children at her home with physical violence. Chacon made it clear he directed the kidnappers in Utah and that her son would be released only after he was paid at least $10,000, according to a complaint filed in the case.
FBI agents, Utah County Major Crime Task Force detectives, and West Valley City police officers were able to locate the juvenile victim later that evening at a Salt Lake County hotel room and return the juvenile unharmed to his home.
Another defendant in the case, Jeanette Mejia, 27, of Phoenix, pleaded guilty to a Felony Information in March 2020 charging her with conspiracy to distribute heroin. She faces a sentence of between 12 and 36 months when she is sentenced Oct. 13, 2020.
Chacon, 29, a citizen of Honduras, remains a fugitive.
This case is a part of an investigation the Utah County Major Crimes Task Force and the FBI in Salt Lake City started in early 2018 targeting a drug trafficking organization distributing primarily heroin. The investigation revealed that Chacon managed and directed the activities of multiple co-conspirators in Utah, Arizona, and Minnesota. In addition to this case, four other criminal cases were filed in Utah as a result of the investigation. Several kilograms of heroin and several cash seizures have been made in connection with these prosecutions. The West Valley City and Salt Lake City police departments have assisted with the investigation.
Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City and a Deputy Utah County Attorney, designated as a Special Assistant U.S. Attorney, are prosecuting the case.
Armstrong County Man Sentenced to Prison for Conspiring to Distribute MarijuanaRead the Press Release
PITTSBURGH – An Armstrong County resident has been sentenced in federal court to 37 months’ imprisonment, three years’ supervised release, and fined $3,000.00 on his conviction of conspiring to distribute marijuana, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Stephen Lerch, 28, of Apollo, Pennsylvania.
According to information presented to the court, Lerch had been receiving packages of marijuana and THC vaping cartridges at various locations situated in and around the Apollo area from a source based in Colorado. The conspiracy ended on October 2, 2018, when task force officers and agents from the DEA executed a search warrant at Lerch’s residence. During the search, the DEA recovered marijuana, two firearms, a money counter, and $25,161.00 in cash. Investigators also learned that Lerch maintained accounts at S & T Bank and TD Ameritrade. The funds contained in those accounts were subsequently seized pursuant to search warrants.
Prior to imposing sentence, Judge Stickman denied Lerch’s request for a sentence of home confinement, noting the serious nature of the offense. The Court also ordered that Lerch forfeit a total of $102,290.70 and a 2017 Subaru Crosstrek to the United States.
Assistant United States Attorney Michael Leo Ivory prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, the United States Postal Inspection Service, and the West Metro Drug Task Force-Sheriff’s Office, Jefferson County, Colorado, for the investigation leading to the successful prosecution of Lerch.
Alien Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH, N.C. – A federal grand jury returned indictments today charging SILVANO DOMINGUEZ-TORRES, age 31, of Mexico, with illegal reentry of an alien deported subsequent to 3 or more convictions involving crimes against a person and MARVIN DAVID CORTEZ-CUELLAR, age 30, of Honduras, with illegal alien in possession of a firearm.
Therefore if convicted, DOMINGUEZ-TORRES, previously deported five times and found in Wake County, would face a maximum imprisonment term of ten years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CORTEZ-CUELLAR, found in Harnett County, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment, if convicted.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
5 Defendants Indicted in Connection with Kidnapping, Narcotics, and Firearm OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (“HSI”) in New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging MARIO REYNOSO-HICIANO, JOEL CABRERA, a/k/a “Gordo,” a/k/a “Oso,” VLADIMIR REYES, YUDITH REYNOSO-HICIANO, a/k/a “La Classica,” and PEDRO REYNOSO with kidnapping, narcotics, and firearm offenses. Three defendants were taken into custody earlier today and will be presented before U.S. Magistrate Judge Kevin Nathaniel Fox. A fourth defendant remains at large, and a fifth defendant is already in federal custody in connection with another matter and will be presented and arraigned at a later date. The case is assigned to U.S. District Judge Denise L. Cote.
Acting U.S. Attorney Audrey Strauss said: “As alleged, the defendants were involved in conspiracies to traffic in cocaine and/or to kidnap someone they believed had shortchanged them in a drug transaction. This case illustrates once again how drug trafficking and gun violence so often go hand-in-hand. Thanks to the efforts of HSI and the NYPD, people charged with violent crimes are in custody and facing federal charges.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “The safety and well-being of New York City residents remains the primary focus of HSI and our partners. Today’s indictment alleging narcotics trafficking and kidnapping by the defendants, and use of a firearm by one of them, marks yet another positive step in ridding alleged criminals from our community. HSI’s continued collaboration with the NYPD to investigate violent crimes and dismantle criminal organizations will ensure the safe removal of guns, drugs and bad actors from our neighborhoods.”
NYPD Commissioner Dermot Shea said: “The illegal narcotics trade and associated violence alleged in this federal indictment are crimes that erode the fabric of city life. I commend our NYPD investigators, and federal partners, for their work in this successful case.”
According to the allegations in the Indictment[1]:
In or about May 2019, MARIO REYNOSO-HICIANO, JOEL CABRERA, and VLADIMIR REYES engaged in a conspiracy to distribute cocaine. A dispute arose between MARIO REYNOSO-HICIANO and another individual who had brokered the sale of cocaine (“Victim-1”) because MARIO REYNOSO-HICIANO believed that he had been paid less than the full negotiated purchase price for the cocaine.
As part of that dispute, MARIO REYNOSO-HICIANO, YUDITH REYNOSO-HICIANO, PEDRO REYNOSO, and others kidnapped Victim-1, tied him to a chair inside an apartment in the Bronx (“Apartment-1”), threatened to and did physically assault Victim-1, and demanded that Victim-1 provide information relating to the aforementioned cocaine transaction. Portions of the kidnapping were recorded with a cellphone by YUDITH REYNOSO-HICIANO.
In the early morning of May 31, 2019, CABRERA brandished and discharged a firearm in connection with the cocaine transaction that occurred the day before.
* * *
A chart containing the names, charges, and maximum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of HSI and the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Daniel H. Wolf and Alexander N. Li are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics distribution conspiracy
21 U.S.C. §§ 846, 841(b)(1)(B)
MARIO REYNOSO-HICIANO (age 35)
JOEL CABRERA (age 25)
VLADIMIR REYES (age 37)
40 years
Mandatory minimum of five years in prison
2
Kidnapping conspiracy
18 U.S.C. § 1201(c)
MARIO REYNOSO-HICIANO
YUDITH REYNOSO-HICIANO (age 41)
PEDRO REYNOSO (age 21)
Life
3
Kidnapping
18 U.S.C. §§ 1201(a)(1), 1201(d) and 2
MARIO REYNOSO-HICIANO
YUDITH REYNOSO-HICIANO
PEDRO REYNOSO
Life
4
Firearms offense
18 U.S.C. §§ 924(c)(1)(A)(i), 924(c)(1)(A)(ii), 924(c)(1)(A)(iiii), and 2
JOEL CABRERA
Life
Mandatory minimum of 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
4 August 2020
Zapata man admits attempt to smuggle marijuanaRead the Press Release
LAREDO, Texas – A 48-year-old man has entered a guilty plea to conspiracy and possession with intent to distribute 183 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Roberto Villarreal admitted that on March 15 he drove to a ranch near Falcon Lake intending to pick up 18 bundles of marijuana. He initially grabbed the 183 kilograms, but saw authorities and returned the drugs to the ranch with a plan to get them later.
Law enforcement conducted a traffic stop, at which time he admitted what he had done. He then led authorities to the ranch where he had planned to pick up the marijuana. There, they discovered a boot print matching Villarreal’s shoes.
Villarreal has been and will remain in in custody pending his sentencing, which is set for Dec. 1 before U.S. District Judge Marina Garcia Marmolejo. At that time, Villarreal faces a minimum of 10 years and up to life in federal prison.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and the Zapata County Sheriff’s Office. Assistant U.S. Attorney Paul Harrison is prosecuting the case.
Wright City Man Charged with Distribution of Fentanyl at the Ameristar CasinoRead the Press Release
St. Louis – Ledra A. Craig, age 43, of Wright City, Missouri, was charged by a federal complaint today with distribution of fentanyl.
According to the criminal complaint, investigators began conducting an overdose death investigation after a victim was found deceased in Saint Charles, Missouri on Sunday, August 2, 2020. The investigation uncovered surveillance video from the Ameristar Casino in St. Charles, Missouri, showing Ledra A. Craig distributing fentanyl to two victims just hours before one victim was found dead. Craig later admitted to investigators that he sold fentanyl while at the Ameristar Casino in Saint Charles, Missouri, over the weekend of August 1st and 2nd.
The Drug Enforcement Administration and the St. Charles County Regional Drug Task Force are investigating these current charges.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Woman admits to smuggling cocaine in car batteryRead the Press Release
BROWNSVILLE, Texas – A 21-year-old Mexican national has admitted to possessing with the intent to distribute more than five pounds of cocaine, announced U.S. Attorney Ryan K. Patrick.
On Jan. 27, Alejandrina Quevedo-Hernandez attempted to enter the United States from Mexico through the vehicle lane at the Gateway International Port of Entry in Brownsville. Law enforcement noticed signs of tampering on the outside of the car and referred it to secondary for further inspection.
There, authorities searched her vehicle and discovered two aluminum-wrapped bricks of cocaine hidden inside the vehicle’s battery compartment.
The drugs weighed 5.2 pounds with an estimated street value of $65,000.
Sentencing has been set for Oct. 28 before U.S. District Judge Rolando Olvera. At that time, Quevedo-Hernandez faces a minimum of five years and up to life in federal prison and a possible $5 million maximum fine.
She has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.
Waterbury Cocaine Distributor Sentenced to 40 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEAN CARLOS FABAL-GONZALEZ, 26, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall to 40 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments into a heroin and cocaine trafficking operation headed by Keith Jordan of Waterbury. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that Jordan was receiving large quantities of heroin and cocaine from various suppliers and selling to drugs to other distributors and street-level customers. Fabal-Gonzalez supplied cocaine to Carlos Morais of Waterbury who, in turn, supplied cocaine to Jordan.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Fabal-Gonzalez, Jordan, Morais and 26 other individuals with various federal offenses related to the distribution of heroin, fentanyl, cocaine and crack cocaine.
Fabal-Gonzalez was arrested on March 20, 2019. A search of his residence at the time of his arrest revealed is residence revealed a handgun and more than $31,000 in cash.
On January 21, 2020, Fabal-Gonzalez pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
Fabal-Gonzalez has been detained since his arrest. He is a citizen of the Dominican Republic and may face immigration proceedings when he completes his prison term.
Jordan and Morais previously pleaded guilty. On February 20, 2020, Morais was sentenced to 60 months of imprisonment. Jordan awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile.
Wakpala Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Wakpala, South Dakota, woman convicted of two counts of Assault with a Dangerous Weapon was sentenced on July 27, 2020, by U.S. District Judge Charles B. Kornmann.
Averil Linette Cadotte, age 37, was sentenced to 46 months in federal prison, followed by three years of supervised release, $200 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Cadotte was indicted by a federal grand jury on April 9, 2019. She pled guilty on May 5, 2020.
The conviction stemmed from an incident on June 4, 2016, in Wakpala, when Cadotte ran over two individuals with a car, with the intent to do bodily harm.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper prosecuted the case.
Cadotte is to self-report to the custody of the U.S. Marshals Service on August 18, 2020.
Virginia Man Pleads Guilty to Enticement, Child Pornography ChargesRead the Press Release
A Virginia man who used an online chat website to engage in sexually explicit conversations with a 12-year-old minor female and later induced the victim to engage in sexually explicit behavior over video chat, pleaded guilty today in U.S. District Court in the Western District of Virginia to a pair of federal charges, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
Roger Allen Bellini, 30, pleaded guilty today to one count of coercion and enticement and one count of possession of child pornography. He will be sentenced on Jan. 4, 2021.
According to court documents, Bellini admitted to using an online chat website to communicate with minor females. The defendant admitted the communications were sexual in nature. Specifically, Bellini admitted to communicating with a minor via video chat, beginning when she was 12 years old. He used screen capture software to record his computer screen while he engaged in video chats with the minor. In these video chats, Bellini induced the minor to expose herself and perform sexually explicit acts.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Leslie Fisher of the Criminal Division’s Child and Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Rachel Swartz prosecuted the case for the United States.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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.
VP of Genetics Company Pleads Guilty to Paying Physicians Sham Clinical Research Fees as Part of $21 Million Medicare Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – August 4, 2020
SAN DIEGO – Donald Joseph Matthews, the former Vice President of Market Development for Proove Biosciences. Inc., pleaded guilty in federal court today to conspiring to pay physicians kickbacks to order genetic tests for Medicare beneficiaries in violation of the Anti-Kickback Statute.
According to Matthews’ plea agreement, Proove paid doctors at least $3.5 million to induce them to order Proove’s DNA tests—which the company claimed could determine a patient’s risk of abusing certain prescription narcotics. Proove billed approximately $45 million to the Medicare program for the tests, in violation of Medicare’s prohibition against kickbacks, and Proove received approximately $21 million in unlawful payments. Proove concealed the true nature of the kickbacks by falsely characterizing the payments as compensation for participating in a clinical research program sponsored by Proove. In furtherance of the scheme, Proove placed its own employees in doctors’ offices. The Proove employees collected a cheek swab and completed most of the paperwork associated with the “clinical research” program. Without the financial compensation, Matthews admitted that most doctors were not interested in ordering Proove’s tests for their patients.
The compensation Proove paid to doctors was directly tied to the volume of tests that a doctor ordered and whether a doctor continued to order more tests from Proove over time. When doctors were not paid, they threatened to “pull the plug” and stop ordering Proove’s genetic tests. When the doctors complained about delayed payments, a Proove executive demanded that the doctors increase their testing volume.
“Kickbacks corrupt the medical judgment of physicians, generate unnecessary tests and treatments, increase health care costs, and create unfair competition,” said U.S. Attorney Robert Brewer. “Our office will aggressively move to terminate these illegal schemes and prosecute those who engage in them.” Brewer commended the excellent work of Assistant U.S. Attorneys Joseph S. Green and Andrew J. Galvin, who investigated this important case.
“Our nation’s healthcare system cannot tolerate kickbacks to physicians while criminals line their pockets with taxpayer-funded healthcare dollars, particularly in light of our nation’s current struggles with the COVID-19 pandemic,” said Acting Special Agent in Charge Omer Meisel, San Diego Division of the Federal Bureau of Investigation. “The FBI will pursue those criminals who corrupt the health care system rather than support legitimate, necessary testing and treatment for patients.”
“When health care executives offer kickbacks to physicians to boost profits, they compromise medical decision making and undermine public trust in our nation’s health care system,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This investigation illustrates our ongoing efforts to investigate such kickback schemes and to protect patients who rely on federal health care programs.”
Matthews pleaded guilty today before U.S. Magistrate Judge Karen S. Crawford. His sentencing is scheduled for October 26, 2020 at 9:00 a.m. before U.S. District Judge William Q. Hayes.
Vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine is more important than ever. If you are aware of any fraud or kickbacks, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
DEFENDANTS Case Number 20CR1933-WQH
Donald Joseph Matthew Age: 50 Naples, FL
SUMMARY OF CHARGES
Conspiracy to Pay Kickbacks in Connection with a Federal Healthcare Program – Title 18, U.S.C., Section 371, Title 42, United States Code, Sections 1320a-7b(b)(1)(B) and (b)(2)(B).
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Office of Inspector General, Department of Health and Human Services
U.S. Attorney Trutanich Announces Nearly $1 Million Awarded to Provide Housing to Victims of Human Trafficking in NevadaRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich of the District of Nevada announced today that the state of Nevada received a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“The District of Nevada greatly appreciates the support from the Department of Justice’s Office of Justice Programs to help survivors in Nevada,” said U.S. Attorney Trutanich. “These grant awards will assist trafficking victims in our communities with, among other things, finding housing and employment.”
The grants, awarded to the Rite of Passage Adolescent Treatment Centers and Schools, Inc. and Hookers for Jesus, Inc., will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. These recipients are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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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U.S. Attorney Robert K. Hur Announces Award of Nearly $1 Million in Federal Funds to Provide Housing to Victims of Human Trafficking in MarylandRead the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur of the District of Maryland today announced that Maryland has received $999,990 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“Human traffickers prey on our most vulnerable—including children—in order to profit from their victims’ misery. Traffickers often use violence and exploit drug addictions in order to coerce their victims into such crimes as commercial sex rings,” said U.S. Attorney Robert K. Hur. “These grants will help to provide resources to the vulnerable victims of this reprehensible crime. The Maryland U.S. Attorney’s Office and our partners will never stop working to end human trafficking.”
The grant, awarded to the Salvation Army and the University of Maryland SAFE Center for Human Trafficking Survivors, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The Salvation Army and the University of Maryland SAFE Center are among 73 organizations nationwide receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“The Salvation Army of Central Maryland is committed to assisting survivors of human trafficking in reclaiming their lives and determining their futures,” said Beth Luthye, Anti-Human Trafficking Program Director for The Salvation Army of Central Maryland. “Over the past few years, our core focus has been short-term housing and intensive care management. This OVC grant will enable us to expand our services to also provide supportive transitional housing and independent housing assistance, as well as partnering with business and community leaders to build out initiatives focused on employment and financial independence.” Ms. Luthye added, “The Salvation Army program, based in Baltimore City, targets adult survivors of both sex trafficking and labor trafficking throughout the state of Maryland. It is inclusive of women who often find closed doors at other residential programs, including pregnant women, mothers of young children, transgender individuals, and foreign nationals.”
"Stable housing is foundational to human trafficking survivors' ability to rebuild their lives,” said SAFE Center Founder and Director, Susan Esserman. “We feel fortunate to be partnering with the Montgomery County Department of Health and Human Services in a rapid rehousing model to address this urgent housing need. We are grateful for this OVC funding as lack of safe housing is a driver of trafficking."
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients, including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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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U.S. Attorney Mike Hurst Announces Award to Provide Housing to Victims of Human Trafficking in MississippiRead the Press Release
Jackson, Miss. - U.S. Attorney Mike Hurst announced today that the state of Mississippi received $379,996.00 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“We have made fighting human trafficking a priority in this office, and this grant to one of our nonprofit partners on the Mississippi Human Trafficking Council will go a long way in providing necessary, life-saving services to human trafficking victims,” said U.S. Attorney Mike Hurst. “We will continue to do all that we can to protect victims, prevent trafficking, and prosecute criminals.”
The grant, awarded to the Gulf Coast Center for Nonviolence, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling.
The Gulf Coast Center for Nonviolence is a member of the Mississippi Human Trafficking Council, which is a comprehensive group of stakeholders from throughout Mississippi created in September 2019 by the U.S. Attorney’s Offices for the Southern and Northern Districts of Mississippi and the Mississippi Department of Public Safety, taking a victim-centered, collaborative, and multi-disciplinary approach to fighting all forms of domestic and international human trafficking throughout Mississippi.
The Gulf Coast Center for Nonviolence is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Michael Bailey Announces More than $1.2 Million in Awards to Provide Housing to Victims of Human Trafficking in ArizonaRead the Press Release
PHOENIX, Ariz. – United States Attorney Michael Bailey of the District of Arizona today announced that the state of Arizona received over $1.2 million from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“Victims who have suffered at the hands of human traffickers often feel trapped, with nowhere to go,” said United States Attorney Michael Bailey. “These grants to well-deserving organizations in our state offer victims some hope of a way out.”
The grants totaling over $1.2 million were awarded to three Arizona organizations: New Life Center, Chicanos Por La Causa, Inc., and Maggie’s Place, Inc. The grants will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, and obtain occupational training and counseling. New Life Center, Chicanos Por La Causa, and Maggie’s Place are among 73 organizations in 34 states receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such criminal activity. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients, including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
RELEASE NUMBER: 2020-065_Housing Grants
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.U.S. Attorney Lelling Announces Grant Award to Provide Housing to Victims of Human Trafficking in MassachusettsRead the Press Release
United States Attorney Andrew E. Lelling announced today that the YWCA Central Massachusetts received over $370,000 from the Justice Department’s Office of Justice Programs to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“Doing justice means supporting the survivors of human trafficking, not just prosecuting the criminals who victimize them,” said United States Attorney Lelling. “The YWCA Central Massachusetts is doing righteous work by equipping survivors with the resources and help they need to rebuild their lives.”
The grant will provide six to 24 months of transitional or short-term housing assistance to the trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The YWCA Central Massachusetts is among 73 organizations receiving more than $35 million in grants from the Office for Victims of Crime to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf.