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31 July 2020
Man Who Illegally Possessed a Gun Used to Shoot and Kill Another Sentenced to Maximum Possible SentenceRead the Press Release
A man who shot another man in Waterloo was sentenced today to 15 years in federal prison.
Alberto Quinto-Pascual, age 37, from Waterloo, Iowa, received the prison term after a January 28, 2020, guilty plea to being a drug user in possession of a firearm and possession of a firearm with an obliterated serial number.
Evidence at sentencing showed that on May 10, 2019, Quinto-Pascual met with a man at a bar in Waterloo. The two men left the bar and went to a house in Waterloo where Quinto-Pascual had been staying. While at the house, Quinto-Pascual retrieved a revolver he kept at the house and shot the victim in the head. Quinto-Pascual then wiped down the firearm, left the house, and hid the firearm behind a car in a nearby alley. Quinto-Pascual then went to a different house he also stayed at and, after nearly twenty minutes, called 911 to report the shooting. Quinto-Pascual told police that the victim had shot himself. Officers located the victim and transported him to a hospital. The victim eventually passed away from the injuries. During the sentencing, the court concluded that given the circumstances of the killing, Quinto-Pascual committed second-degree murder.
Quinto-Pascual was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Quinto-Pascual was sentenced to 180 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
"Quinto-Pascual killed a man with a gun he illegally possessed,” said United States Attorney Peter Deegan. “Through Project Guardian and Project Safe Neighborhoods, we will continue to work with our law enforcement partners to prosecute the most dangerous individuals in our community.”
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Quinto-Pascual is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2042.
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Man Stopped at Fort Bragg Gate Pled Guilty for Gun Possession in Furtherance of Drug TraffickingRead the Press Release
WILMINGTON, N.C. – A man who was stopped at a gate for Fort Bragg pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute marijuana.
According to court documents, Matthew Earl Carlton, 30, drove a blue Mercedes coupe to a gate at Ft. Bragg Military Installation at 2:00am on May 14, 2020. Carlton’s car was searched after he did not have a driver’s license or military identification. A loaded Ruger P85 nine millimeter handgun with an extended magazine and a bullet in the chamber was found under the driver’s seat. In addition, approximately 162 grams of marijuana, a digital scale, packing materials, and $2,208 in cash were also found in the car. At the time of this incident, Carlton was on parole from the State of New York for First Degree Robbery and Criminal Possession of a Weapon.
Carlton pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), and one count of possession with the intent to distribute marijuana in violation of Title 21, United States Code, Section 841(a)(1) and faces a mandatory minimum penalty of 60 months in prison when sentenced at the court’s November 3, 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Richard E. Myers II accepted the plea. U.S. Army Military Police and Criminal Investigative Division investigated the case and Assistant U.S. Attorney Brad DeVoe is prosecuting the case with support from Special Assistant U.S. Attorney Antonino Monea.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-308.
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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.
Man Admits Robbing Banks in East Haven and Windsor Locks While on Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GARY W. BORNMAN, 58, of New Haven, waived his right to be indicted and pleaded guilty today to two counts of bank robbery and admitted that he violated the conditions of his supervised release from a prior federal case.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the guilty plea proceeding occurred via videoconference.
According to court documents and statements made in court, on October 29, 2019, Bornman drove a female accomplice to the Citizens Bank located at 430 Foxon Boulevard in East Haven. While Bornman waited outside, his accomplice entered the bank wearing a disguise and a red wig, approached a teller, and demanded money. The teller handed over approximately $1,003.
On January 27, 2020, Bornman drove a male accomplice to the People’s United Bank located at 20 Main Street in Windsor Locks. While Bornman waited outside, his accomplice entered the bank, approached a teller and showed a note demanding money. The teller hand over approximately $1,056. Bornman’s car was captured on surveillance video from a nearby business.
In June 2001, Bornman was sentenced in Hartford federal court to 235 months of imprisonment, followed by five years of supervised release, for bank robbery and firearm possession offenses. He was released from prison in October 2018.
Bornman has been detained since February 12, 2020, when he was arrested for violating his supervised release.
Bornman is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 27, 2020, at which time he faces a maximum term of imprisonment of 40 years on the bank robbery offenses, and additional penalties for violating the conditions of his supervised release.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Marshals Service, East Haven Police Department and Windsor Locks Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Malware Author Pleads Guilty for Role in Transnational Cybercrime Organization Responsible for more than $568 Million in LossesRead the Press Release
An author of malicious computer software and a member of the Infraud Organization pleaded guilty today to RICO conspiracy, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Valerian Chiochiu, aka “Onassis,” “Flagler,” “Socrate,” and “Eclessiastes,” 30, pleaded guilty before U.S. District Court Judge James C. Mahan in the District of Nevada. Chiochiu is a national of the Republic of Moldova, but resided in the United States during the period of the conspiracy. His plea came just over a month after the co-founder and administrator of Infraud, Sergey Medvedev of Russia, separately pleaded guilty on June 26. Sentencing for Chiochiu has been scheduled for Dec. 11.
Infraud was an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
“Over the course of seven years, Infraud and its alleged conspirators created a sophisticated cybercriminal racketeering scheme that victimized individuals, merchants, and financial institutions to the tune of over half a billion dollars in losses,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Justice Department is committed to unmasking cyber criminals and their criminal organizations that use the internet for fraudulent schemes.”
“HSI and our partners are at the forefront of combating financial crimes and illicit activities spread on the Internet,” said Special Agent in Charge Francisco Burrola for the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Las Vegas Office. “While criminal operators may continue to grow the reach of their criminal activity, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
According to the indictment, the Infraud Organization was created in October 2010 by Medvedev and Svyatoslav Bondarenko, aka “Obnon,” “Rector,” and “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for “carding” —purchasing retail items with counterfeit or stolen credit card information — on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members. In March 2017, there were 10,901 registered members of the Infraud Organization.
Bondarenko currently remains a fugitive.
According to the indictment, Chiochiu provided guidance to other Infraud members on the development, deployment, and use of malware as a means of harvesting stolen data. As part of his plea agreement, Chiochiu admitted to authoring a strain of malware known to the computer security community as “FastPOS”.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $568 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The investigation was conducted by the Las Vegas Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Henderson, Nevada Police Department. The U.S. Attorney’s Office for the Central District of California also provided assistance with Chiochiu’s case. Deputy Chief Kelly Pearson and Trial Attorneys Chad W. McHenry and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lehigh University Agrees to Pay $200,000 Settlement to Resolve False Claims Act Allegations Arising from Convicted Professor’s Grant FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lehigh University in Bethlehem, Pennsylvania, has agreed to pay $200,000 and abide by compliance requirements in connection with any application seeking federal grant funds or cooperative agreements with any federal agency. The settlement agreement resolves allegations under the False Claims Act relating to Small Business Innovation Research (“SBIR”) grants awarded to ArkLight, a company owned by Dr. Yujie Ding, a former Lehigh University professor.
The Small Business Innovation Research program is a competitive program that encourages American small businesses to engage in research on behalf of the federal government that has the potential for commercialization. Although small businesses may subcontract a portion of the work to other entities, including universities, the small business itself must perform a majority of the work under the program.
Between 2004 and 2013, Lehigh University employed Dr. Yujie Ding, first as an Associate Professor and then as a Professor. During that time, Ding used a sole proprietorship he created called ArkLight to apply for SBIR program research grants funded by the National Aeronautics and Space Administration (“NASA”), the United States Department of the Army, the United States Air Force, and the National Science Foundation (“NSF”). ArkLight received grants totaling $2,740,000.
In each proposal, Yuliya Zotova, Ding’s wife, was listed as ArkLight’s principal investigator, the person designated to lead the scientific and technical effort. Under applicable program rules, Professor Ding was not eligible to serve as the principal investigator. The proposals represented that ArkLight would do a majority of the work under the leadership of Zotova. Lehigh University agreed to act as a subcontractor on some of ArkLight’s grants.
Under the applicant programs, ArkLight was to complete a majority of the research work. In reality, and unbeknownst to Lehigh University, none of the work was completed by ArkLight. Instead, all of the work was done by graduate students and others working in Ding’s university laboratory, under Ding’s supervision. The United States contends that, at the time, Lehigh University had an inadequate compliance program in place to detect and prevent Ding’s fraud. Although the work was done at Lehigh University, the University was ineligible for payment because there was no small business serving as the primary contractor. As the nominal subcontractor, Lehigh was paid over $1 million.
Ding and Zotova were criminally were charged by Indictment by the U.S. Attorney’s Office for the Eastern District of Pennsylvania. That indictment was unsealed on February 5, 2015, and on November 12, 2015, a jury returned guilty verdicts against Ding and Zotova on six counts of wire fraud. Ding was sentenced to a year and a day in prison for his role in the fraud. He was also ordered to pay a fine of $3,000 and restitution of $72,000. Zotova, was sentenced to 3 months in prison, along with a fine and restitution. Lehigh University cooperated in the criminal investigation and trial of Ding and Zotova by responding to subpoenas and making witnesses available for interviews.
“Institutions that receive research funding from the federal government must be rigorous in rooting out fraud.” said U.S. Attorney McSwain. “While it did not detect the problems itself, Lehigh University, to its credit, did take proactive steps to improve its existing compliance program once it learned that one of its employees had committed fraud. We value Lehigh University’s research contributions and hope that the enhanced compliance measures will have a positive impact in the future. We also appreciate the University’s cooperation in the criminal prosecutions of Ding and Zotova.”
“The success of SBIR programs often lies with small business awardees, and its subcontractors, being good stewards of taxpayers’ dollars when conducting Federal Research. The NASA Office of Inspector General (OIG), along with its law enforcement partners, will continue to aggressively investigate those individuals and entities that take advantage of the trust of the American taxpayers,” stated Special Agent-in-Charge, Mark. J. Zielinski, Eastern Field Office, NASA OIG.
“Ensuring the integrity of the Air and Space Forces’ research and development process is a top investigative priority of the Air Force Office of Special Investigations (OSI). Those who seek to conduct business with the Department of the Air Force must be candid and truthful. OSI will aggressively investigate those who attempt to defraud the Air Force and will work with our law enforcement partners to identify and prosecute those who would take advantage of the Air and Space force and their interests. I’d like to thank Lehigh University for their cooperation in the investigation,” said Special Agent in Charge Jason T. Hein, OSI, Office of Procurement Fraud Investigations Detachment 6.
“The settlement agreement announced today is the result of joint investigative effort to protect Small Business Innovative Research contracts from fraud and abuse," stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The DCIS is committed to working with its law enforcement partners and the U.S. Attorney’s Office to ensure the integrity of federal research and development procurement programs, such as SBIRs. Of note, in addition to entering into this civil settlement agreement, Lehigh University provided assistance in a related criminal investigation of a former Lehigh professor and his spouse who defrauded the SBIR program.”
Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses compete for federal research and development awards, which have enhanced the nation’s defense. “The proactive efforts of agencies like NASA, the Air Force, the DCIS, and the NSF are critical to identifying potential fraud and safeguarding limited government resources,” said U.S. Attorney McSwain.
The investigation was conducted by NASA, the Air Force, the DCIS, and the NSF. The civil case is being handled by Assistant U.S. Attorney Veronica J. Finkelstein.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Kanawha County Woman Indicted for Fraud SchemeRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced that a federal grand jury has indicted a Kanawha County woman in connection with an elaborate fraud scheme. A five-count indictment charged Holly Urlahs, also known as Holly Anderson, 32, of Elkview, with bank fraud, mail fraud, forging the signature of a judge and two counts of aggravated identity theft.
The indictment alleges that Urlahs falsely claimed to have sued Charleston Area Medical Center (CAMC) and was expecting a large financial settlement from her lawsuit. Under these false pretenses, she set out to defraud financial institutions and an insurance company. According to the indictment, as part of her fraudulent scheme, Urlahs altered a $100 cashier’s check to reflect an amount over $8.4 million. The indictment also alleges that Urlahs provided fake documents with forged signatures and a personal check for $1 million, although she knew she did not have sufficient funds in her account, to an insurance company to obtain an annuity contract. Urlahs’ check was returned for insufficient funds.
“The allegations contained in this indictment are very serious,” said United States Attorney Mike Stuart. “I commend the work of the investigators in this case – they were able to unravel the defendant’s elaborate fraud scheme.”
The investigation was conducted by the West Virginia State Police-Bureau of Criminal Investigations and the West Virginia Insurance Commissioner’s Special Investigations Division. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
If convicted on all counts, Urlahs faces up to 55 years in prison.
Please Note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: SDWVNews and USAttyStuart
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KC Felon Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was charged in federal court today for illegally possessing a firearm that was found in his vehicle along with his infant son.
Gary Dorch, 26, was charged with one count of being a felon in possession of a firearm in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
This Glock pistol and high capacity magazine were seized by federal agents.Today’s complaint alleges that Dorch was in possession of a Glock .40-caliber pistol on Monday, July 27.
According to an affidavit filed in support of today’s criminal complaint, Dorch was wanted on a federal warrant for violating the terms of his supervised release. Dorch was on federal supervised release following his incarceration for illegally possessing a firearm. Dorch participated in an armed robbery of a Public Storage business in December 2013 and was the passenger in a vehicle that attempted to flee from police officers after the robbery, until it caused a collision with another vehicle. Dorch was released from prison in October 2019 after serving a five-year sentence.
Federal agents saw Dorch and his girlfriend, in separate cars, drive into the Avis Car Rental parking lot at 3412 Main St., Kansas City, Mo., on Monday, July 27. Dorch, who was driving a Nissan Altima, stayed in his vehicle while his girlfriend parked her car and went inside the business.
Deputies from the U.S. Marshals Service and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives approached the Nissan to arrest Dorch on the outstanding warrant. During the arrest, they saw the loaded Glock pistol on the driver’s side floorboard. Dorch was the only adult occupant of the vehicle; his 18-month-old son was in the back seat.
Agents also searched the Toyota Corolla that Dorch’s girlfriend was returning to Avis. They found a high capacity drum magazine with 33 rounds of .40-caliber ammunition in the glove box of the Toyota.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dorch has a prior federal felony conviction for possessing a firearm in furtherance of a crime of violence.
The charge contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Reaches Settlement with Toledo Public Schools to Resolve Complaints of Race and Disability Discrimination in Student DisciplineRead the Press Release
The Department of Justice’s Civil Rights Division and the United States Attorney’s Office for the Northern District of Ohio announced today a settlement agreement with the Toledo Public Schools to address and prevent discriminatory discipline of students based on race or disability and to require appropriate language services for limited English proficient (LEP) parents on matters essential to their children’s education.
The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of African-American students and students with disabilities in school suspensions, expulsions, and referrals to law enforcement agencies. The Department also investigated allegations concerning the district’s communications with parents and guardians with language barriers. The school district cooperated fully throughout the investigation, which was conducted under Title IV of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.
“Discrimination against students because of their race or disability has no place in our country’s public schools,” said Assistant Attorney General Eric Dreiband. “A student’s race or disability should never mean receiving harsher punishment in school. Such practices are unfair and unlawful, and they deny students equal access to the educational opportunities that are critical to success in school and beyond. We look forward to continuing to work with the Toledo Public Schools to implement this settlement and fulfill its promise of equal treatment for all of the district’s students.”
“Federal law does not allow schools to discipline students because of their race or disability or to deny access to essential school-related information to parents and guardians with language barriers,” said Justin Herdman, the U.S. Attorney for the Northern District of Ohio. “We applaud the district for its cooperation during our investigation and for its commitment to ensure that students are not denied learning opportunities because of their race, disability, or national origin. We look forward to working cooperatively with Toledo Public Schools to implement this agreement, as the district puts in place behavioral supports and services to increase opportunities for student learning.”
Under the settlement agreement, the district will take proactive steps to ensure its discipline practices do not discriminate against students based on race or disability. The district will, among other things, regularly review how schools handle discipline incidents to ensure non-discriminatory treatment, expand its use of positive behavior supports, and provide appropriate training and resources to help schools implement the agreement, including training for teachers, administrators, and school safety officers. In addition, for parents and guardians with language barriers, the district will ensure it communicates essential school-related information in a language that they understand so their children can access the district’s instructional programs.
This month marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools, Title IV of the Civil Rights Act, and the Equal Educational Opportunities Act are top priorities of the Civil Rights Division of the Justice Department.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/
Click here to view the agreement.Justice Department Reaches Settlement with Toledo Public Schools to Resolve Complaints of Race and Disability Discrimination in Student DisciplineRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Ohio today announced a settlement agreement with the Toledo Public Schools to address and prevent discriminatory discipline of students based on race or disability and to require appropriate language services for limited English proficient (LEP) parents on matters essential to their children’s education.
The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of African-American students and students with disabilities in school suspensions, expulsions, and referrals to law enforcement agencies. The department also investigated allegations concerning the district’s communications with parents and guardians with language barriers. The school district cooperated fully throughout the investigation, which was conducted under Title IV of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.
“Discrimination against students because of their race or disability has no place in our country’s public schools,” said Assistant Attorney General Eric Dreiband. “A student’s race or disability should never mean receiving harsher punishment in school. Such practices are unfair and unlawful, and they deny students equal access to the educational opportunities that are critical to success in school and beyond. We look forward to continuing to work with the Toledo Public Schools to implement this settlement and fulfill its promise of equal treatment for all of the district’s students.”
“Federal law does not allow schools to discipline students because of their race or disability or to deny access to essential school-related information to parents and guardians with language barriers,” said Justin Herdman, the U.S. Attorney for the Northern District of Ohio. “We applaud the district for its cooperation during our investigation and for its commitment to ensure that students are not denied learning opportunities because of their race, disability, or national origin. We look forward to working cooperatively with Toledo Public Schools to implement this agreement, as the district puts in place behavioral supports and services to increase opportunities for student learning.”
Under the settlement agreement, the district will take proactive steps to ensure its discipline practices do not discriminate against students based on race or disability. The district will, among other things, regularly review how schools handle discipline incidents to ensure non-discriminatory treatment, expand its use of positive behavior supports, and provide appropriate training and resources to help schools implement the agreement, including training for teachers, administrators, and school safety officers. In addition, for parents and guardians with language barriers, the district will ensure it communicates essential school-related information in a language that they understand so their children can access the district’s instructional programs.
This month marks the 30th anniversary of the ADA. Enforcement of Title II of the ADA in schools, Title IV of the Civil Rights Act, and the Equal Educational Opportunities Act are top priorities of the Civil Rights Division of the Justice Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Jury Finds Eagle Butte Man Guilty on Multiple ChargesRead the Press Release
United States Attorney Ron Parsons announced that Dustin Red Legs age 41, of Eagle Butte, South Dakota, was found guilty of Aggravated Sexual Abuse of a Child, Sexual Exploitation of Child, and Possession of Child Pornography as a result of a federal jury trial in Pierre, South Dakota.
The charges carry a mandatory minimum penalty of 30 years, with a maximum penalty of up to life in federal prison and/or a $750,000 fine, up to life of supervised release, a $300 special assessment to the Federal Crime Victims Fund, and a $5,000 assessment to the Domestic Trafficking Fund.
Red Legs was indicted by a federal grand jury on May 14, 2019.
On September 24, 2018, Red Legs was staying at a home in Eagle Butte. He went into a room where two children were sleeping, sexually assaulted a 10-year-old girl, and also took sexually explicit photographs of the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 26, 2020. The defendant was remanded to the custody of the U.S. Marshals Service.
Joint Statement by the U.S. Equal Employment Opportunity Commission, Department of Justice, and Department of Labor Commemorating the 30th Anniversary of the Americans with Disabilities Act and its Impact on the American WorkforceRead the Press Release
July 26, 2020, marked the 30th anniversary of the enactment of the Americans with Disabilities Act (ADA). This landmark civil rights law protects access and opportunity for people with disabilities across community life, including employment.
By ensuring that everyone has an equal opportunity to work, free from discrimination based on disability, the ADA is an affirmation of our nation’s founding ideals and a cornerstone of our efforts to ensure a fully inclusive American workforce and economy.
As we recognize this important milestone, the U.S. Equal Employment Opportunity Commission (EEOC), Department of Justice (DOJ), and Department of Labor (DOL) pay tribute to the ADA’s indelible impact and how it has promoted economic self-sufficiency for individuals with disabilities.
The ADA is about equal opportunity. By safeguarding equal rights for qualified job applicants and employees with disabilities, the ADA ensures that more Americans have equal opportunity to thrive in fulfilling jobs that grow our economy.
To help employers and individuals with disabilities achieve these goals, the EEOC has an extensive program of ADA outreach, and also proactively works to resolve ADA complaints. EEOC’s mediation program is instrumental to this effort. It helps parties reach mutually agreed upon, enforceable resolutions to charges of disability discrimination. Examples of such resolutions include an employer who, after initially rejecting a deaf applicant, hired him and provided an American Sign Language interpreter for trainings, meetings, and performance evaluations; a business that agreed to accommodate an employee with an eating disorder by allowing her to take a longer lunch break; and a public school that reassigned a bus driver to a new position as a teacher’s aide when she could no longer drive due to epilepsy.
Conciliation is another way the EEOC advances the ADA’s goals. Parties who participate in conciliation’s voluntary process can resolve charges efficiently. In many cases, these agreements help spur broader changes that benefit many individuals for years to come. For instance, last year, a nationwide business voluntarily agreed to alter its online application process so that questions actually pertained to the job at hand. This business also agreed to highlight the company’s commitment to providing accommodations to both applicants and employees.
The ADA is about freedom from discrimination. DOJ’s Civil Rights Division collaborates closely with the EEOC to enforce the ADA’s prohibitions on discrimination in employment by state and local governments. By ensuring that people with disabilities have an equal opportunity to become and remain employed, DOJ helps individuals with disabilities to obtain economic self-sufficiency, their own piece of the American dream, and much more. In so doing, DOJ helps make the ADA’s promise of equal employment opportunity a reality for Americans with disabilities across the country.
Through its enforcement efforts, DOJ works to ensure that people with disabilities are judged for their skills and what they are able to contribute, rather than having their employment opportunities limited by stereotypes and assumptions about their disability. For example, DOJ recently settled a case involving a Georgia paramedic, who also worked part-time as an emergency medical technician teaching assistant at a technical college, after the college unlawfully terminated her because she had multiple sclerosis. Similarly, DOJ obtained relief for an applicant for an elevator/escalator parts supervisor position whose job offer was withdrawn after the employer learned the applicant had epilepsy. And DOJ successfully resolved a claim for an individual with dwarfism who was unlawfully screened out from applying for a job as a purchasing manager because of his disability, even though he was qualified for the position.
Through its efforts to prevent and redress discrimination against people with disabilities in the workplace, DOJ helps ensure that Americans with disabilities have equal access to the sense of dignity, pride, purpose, independence, self-worth, belonging, and community that can come with work.
The ADA is about full participation. Through its Office of Disability Employment Policy (ODEP), DOL delivers on the spirit of the ADA, and goes beyond enforcement to help ensure people with disabilities can effectively prepare for, find, and succeed in meaningful careers. ODEP does this by developing and influencing policies and practices that increase both the number and quality of employment opportunities for people with disabilities.
In support of this mission, each year ODEP provides technical assistance to tens of thousands of individuals and employers on the ADA’s employment provisions. For instance, its Job Accommodation Network provides free, confidential guidance on reasonable accommodations in the workplace, a right guaranteed to qualified individuals with disabilities under the law.
A reasonable accommodation is any modification or adjustment to a job or work environment that enables a qualified person with a disability to apply for or perform a job. When requested, employers covered by the ADA are required to provide such accommodations for qualified employees with disabilities, unless doing so would impose an undue hardship.
Accommodations are essentially about flexibility in how, when, and where people work, and this year’s challenges of working during a pandemic demonstrate their basic premise. For instance, for some workers with disabilities, telework may be a reasonable accommodation that enables them to obtain or maintain employment, and in recent months it has helped many people, whether they have a disability or not, to continue working in the face of COVID-19.
Individuals with disabilities have the talents and skills to contribute to America’s workforce, and, often, their experience with disability offers fresh perspectives on how to solve problems and achieve success. In fact, data indicates that companies that increase disability inclusion over time outperform those that do not.[1]
Harnessing the talent and potential of all segments of the population, including people with disabilities, is essential for our economic growth going forward, and increasing access and opportunity is key. The ADA provides the foundation for this, and the EEOC, DOJ, and DOL are committed to continuing to make progress toward its vital goals — for the next 30 years and beyond.
[1] https://www.accenture.com/t20181108t081959z__w__/us-en/_acnmedia/pdf-89/accenture-disability-inclusion-research-report.pdf
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 27 was:
Danielle Marie Marceau, aka Danielle Marie ComesAtNight, 34, on charges of second degree murder. If convicted of the most serious crime, Marceau faces a maximum life in prison, a $250,000 fine and five years of supervised release. Marceau was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Great Falls Police Department investigated the case. Pacer case reference. 20-51.
Appearing on July 28 was:
Carlyle Ray Wells, 25, of Great Falls, on charges of theft from a firearms licensee, possession of stolen gun or ammunition and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Wells faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wells was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-46.
Chance Justin Redstone, aka CJ Redstone, 35, of Wolf Point, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious crime, Redstone faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-39.
Maynard Joseph White Bear, 67, of Fort Kipp, on charges of involuntary manslaughter. If convicted of the most serious crime, White Bear faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. White Bear was released pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-42.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 30 was:
Matthew Anthony Marshall, 49, of Whitefish, on charges of wire fraud, money laundering and tax evasion. If convicted of the most serious crime, Marshall faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Marshall was released pending further proceedings. The FBI and IRS investigated the case. Pacer case reference. 20-32.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Harrison County man sentenced for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew Scott Collins, of Stonewood, West Virginia, was sentenced today to 84 months incarceration for a firearms charges, U.S. Attorney Bill Powell announced.
Collins, age 37, pled guilty to one count of “Possession of Stolen Firearm” in January 2020. Collins admitted to having a .22 caliber rifle, a 9mm pistol, and a .223 caliber rifle in Barbour County in July 2018. All three firearms are stolen.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Guns and Drug Conviction Gets Oxford Man 15 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – An Oxford man was sentenced today to 180 months in prison for possession with intent to distribute cocaine base (crack) and possession of firearms by a convicted felon.
According to court documents, the Oxford Police Department (OPD) received complaints of drug distribution activity at the residence of Thurston Darius Bobbitt, 37, in Oxford. As a result, OPD utilized a confidential informant to purchase crack cocaine from Bobbitt at the residence. A search warrant executed at Bobbitt’s residence and vehicle yielded a quantity of crack cocaine, digital scales, two firearms, ammunition, cell phones, and U.S. currency. In total, Bobbitt was held accountable for possession and/or distribution of over a kilogram of crack cocaine. Bobbitt had previously been convicted of a felony for which he received a term of imprisonment exceeding one year.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Oxford Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-302-D.
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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.
Guilderland Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Blake Spears, age 39, of Westmere, Town of Guilderland, New York, pled guilty today to sexual exploiting a child.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Spears admitted that on December 1, 2018, he used his phone to video-record himself masturbating while standing over a sleeping child. He also admitted to using a phone messaging application to distribute, to others, videos depicting the sexual abuse of other children.
Spears, who has been in custody since his arrest on February 15, 2019, faces at least 15 years and up to 30 years in prison, as well as a term of post-release supervision of at least 5 years and up to life, when United States District Judge Mae A. D’Agostino sentences him on December 1, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Goldsboro Gang Member Sentenced to 17 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 204 months in prison for conspiring to distribute and possess with the intent to distribute fifty (50) grams or more of methamphetamine and distributing five (5) grams or more of methamphetamine and aiding and abetting.
According to court documents, Alexander Rickey Shaw, Jr., also known as “Ruger Red,” 27, had engaged in a conspiracy to distribute multiple kilograms of crystal methamphetamine between November 2018 and his arrest in September 2019. Shaw was a validated member of the United Blood Nation gang.
The investigation was part of OCDETF Operation Carolina’s Ice Fall, which targeted large-scale methamphetamine dealers operating in and around Goldsboro. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. To date, Operation Carolina’s Ice Fall has resulted in the prosecutions of 26 individuals for their role in methamphetamine distribution and other crimes.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Goldsboro Police Department, the Wayne County Sheriff’s Office, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-355-D.
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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.
Georgia Man Pleads Guilty for His Role in Cocaine Conspiracy Stretching from El Paso, Texas to BuffaloRead 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 Adrian Grier, 44, of Jackson, Georgia, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and an $8,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between October 2017 and December 7, 2018, the defendant conspired with 11 others to sell cocaine. One of Grier’s co-defendants brokered bulk quantity cocaine to multiple areas in the country including Buffalo, Kentucky, and Georgia. Numerous court authorized communications were intercepted between the defendant and others. On two occasions, Grier coordinated trips to Kentucky to acquire kilograms of cocaine. The defendant was intercepted discussing future plans to increase the quantity of cocaine he could obtain in Georgia.
Of the 12 defendants charged in this case, Grier is the second to be convicted. 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.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard. Additional assistance was provided by HSI-Louisville; the Kentucky State Police; the Louisville Metro Police; and the Greater Hardin County Drug Task Force.
Sentencing is scheduled for January 6, 2021, before Judge Sinatra.
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Gardner Man Arrested for Possession of Child PornographyRead the Press Release
BOSTON – A Gardner man was arrested yesterday on a charge of possession of child pornography.
Michael Irons, 44, was charged with one count of possession of child pornography. Following an initial appearance in federal court in Worcester today, Irons was released to home detention.
According to the charging documents, during a search of Iron’s residence today, federal agents discovered two cell phones in Iron’s bedroom – belonging to him – that a preliminary search revealed to contain at least 200 videos of child pornography.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement. Assistance was provided by the Gardner and Worcester Police Departments. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Prison Guard Indicted for Trying to Smuggle Contraband into Dauphin County PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Dauphin County Prison guard, Addie Isaac Reid, age 24, of Harrisburg, PA, was indicted on July 2, 2020, for bribery related to trying to smuggle a cellular telephone into Dauphin County Prison for inmates. At the time, Reid was a prison guard at the facility. The case was unsealed following Reid’s initial appearance before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney David J. Freed, the indictment alleges that between August and September 2019, Reid used a cellular telephone to arrange for a meeting where he could receive a bribe. Reid then met with an undercover officer where he accepted a bribe to smuggle a cellular telephone into Dauphin County Prison.
The case was investigated by the Federal Bureau of Investigation with the assistance of Dauphin County Prison and the Dauphin County Criminal Investigation Division. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former President of Cecil Bank Pleads Guilty to Federal Charges in Maryland of Bank Fraud Conspiracy, Receiving a Bribe, and Making False Statements in Bank RecordsRead the Press Release
Baltimore, Maryland – The former President and Chief Executive Officer of Cecil Bank, Mary Beyer Halsey, age 59, of Rising Sun, Maryland, pleaded guilty today to the federal charges of conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Maryland, upon which Cecil Bank had foreclosed.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark P. Higgins of Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Mid-Atlantic Region; Special Agent in Charge Patricia Tarasca of Federal Deposit Insurance Corporation, Office of Inspector General (FDIC/OIG), New York Region; Special Inspector General Christy Goldsmith Romero for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA/OIG).
“Mary Beyer Halsey used her position as President and CEO of Cecil Bank for her personal benefit, causing a loss to the bank, which had already received federal taxpayer funds as part of the Troubled Asset Relief Program,” said U.S. Attorney Robert K. Hur. “Corrupt bank officials undermine the public’s trust in our financial system.”
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Mark Higgins, Special Agent in Charge of the FHFA-OIG’s Mid-Atlantic Region. “We are proud to have partnered with the U.S. Attorney’s Office for the District of Maryland on this case.”
“This plea illustrates the tremendous harm bank insiders can cause when they use their positions for personal gain, breaking the trust placed in them by their employees, shareholders, and customers,” said Patricia Tarasca, Special Agent in Charge, New York Region, Office of Inspector General for the Federal Deposit Insurance Corporation. “We thank our law enforcement partners and appreciate the cooperation between investigating agencies.”
“Today, another bank CEO pleads guilty to committing fraud against the bank while the bank was in TARP,” said Special Inspector General Christy Goldsmith Romero. “Cecil Bank CEO Halsey pled guilty to conspiracy to commit bank fraud, making false statements in bank records, and receiving a bribe in a fraud that caused losses to Cecil Bank. Taxpayers lost nearly $11 million in TARP when Cecil Bank failed. SIGTARP commends U.S. Attorney Robert Hur and his team for fighting financial fraud related to TARP.”
“OIG and its law enforcement partners are poised to root out fraud and bring wrongdoers to justice,” said SBA Inspector General Hannibal “Mike” Ware. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Cecil Bank, located in Elkton, Maryland, had received $11,560,000 in federal taxpayer funds in 2008, under the Capital Purchase Program, as part of the Troubled Asset Relief Program. On April 20, 2011, Cecil Bank initiated the foreclosure of a single-family house located at 127 Ebenezer Church Road in Rising Sun.
According to her plea agreement, from 2012 to 2013, Halsey conspired with Daniel Whitehurst, an employee of a real estate development company that did business in Maryland, to defraud Cecil Bank and another bank to purchase a home through false pretenses, representations and promises. Specifically, on March 28, 2012, Halsey and Whitehurst met at a restaurant in Cecil County. Whitehurst asked Halsey if she could help him and a business partner get a $500,000 line of credit from Cecil Bank. Halsey agreed to help Whitehurst to obtain a line of credit from Cecil Bank, in exchange for Whitehurst agreeing to serve as the straw purchaser of 127 Ebenezer on behalf of Halsey. Halsey suggested that she increase the line of credit for Whitehurst to $650,000 to include the funds needed to buy the house. Whitehurst agreed to Halsey’s request to secretly buy 127 Ebenezer on Halsey’s behalf. On May 9, 2012, Halsey participated in a loan committee meeting at Cecil Bank that considered and approved a $650,000 line for credit for Whitehurst and a $500,000 line of credit for his business partner.
Halsey admitted that at her request, on May 14, 2012, Whitehurst visited 127 Ebenezer and provided Halsey with an estimate of the costs to update the house. Whitehurst determined that beyond replacing the kitchen subflooring at a cost of about $1,000, there were no significant repairs needed. Whitehurst provided a letter of intent to purchase the home from the bank for $150,000 for Halsey to review. Halsey suggested lowering the price to $145,000 to allow room to increase the offer later. Halsey knew that an exterior-only appraisal of the property ordered by Cecil Bank on November 9, 2011, showed a market value of $263,000. A full appraisal on September 10, 2012, reflected a market value of $295,000. To support the below-market price that Halsey wanted to pay, Whitehurst included in the letter of intent a list of lower-priced home sales in the same area that were not comparable to 127 Ebenezer and therefore was not reflective of the property’s actual market value.
As detailed in the plea agreement, on May 23, 2012, Whitehurst e-mailed Cecil Bank his offer to purchase 127 Ebenezer for $145,000. On the same day, during a meeting of the Cecil Bank Board of Directors, Halsey advised the Board that Whitehurst had made a purchase offer of $140,000 for 127 Ebenezer, $5,000 less the actual offer. To support the below-market price of $140,000, Halsey falsely characterized the property as having “structural deficiencies [that] will require significant repairs.” Halsey did not disclose her personal interest in the property, nor Whitehurst’s role as her nominee to acquire the property on her behalf. The Board authorized Halsey to “negotiate the best price.” Thereafter, Whitehurst submitted a contract for him to purchase 127 Ebenezer from Cecil Bank for $150,000, which Halsey signed on August 17, 2012 on behalf of Cecil Bank.
According to the plea agreement, subsequent to authorizing the sale of 127 Ebenezer, Halsey told Whitehurst that he should not use his line of credit from Cecil Bank to purchase the house, but should instead get the funds from a different source. Whitehurst applied for and obtained a $100,000 loan from another bank to purchase 127 Ebenezer, fraudulently claiming that he was purchasing the property for himself and that the down payment was from an investment account. On October 31, 2012, prior to 127 Ebenezer going to settlement, Halsey wired $75,000 to Whitehurst’s bank account to cover the cost of the down payment as well as closing costs and upgrades to the property that Halsey directed Whitehurst to arrange. To conceal the true purpose of the wired funds, Whitehurst sent Halsey a fictitious real estate contract purporting to show that the $75,000 was the down payment for a different property that Whitehurst owned in Havre de Grace, Maryland.
On November 21, 2012, the settlement of 127 Ebenezer was held with Halsey representing Cecil Bank as the seller, and Whitehurst as the purported purchaser, selling the property to Whitehurst for $150,000. Both signed the HUD-1 form which falsely represented that Whitehurst had paid approximately $52,566 at settlement, when in fact, the down payment and all related closing costs were paid from the $75,000 Halsey had wired to Whitehurst’s bank account beforehand. From October 31, 2012 through March 29, 2013, Halsey transferred an additional $60,000 to Whitehurst to cover the cost the upgrades to the house that they had previously discussed, as well as to reimburse Whitehurst for mortgage payments he made on the property. Halsey and Whitehurst also made plans to transfer title of the property to Halsey by selling the house to her at a price that would minimize the tax consequences of the sale for Whitehurst.
In December 2012, in response to a question from a bank examiner for the Federal Reserve Bank of Richmond inquiring about the sale of the property to Whitehurst, Halsey falsely stated that she was “not totally familiar with [that] property” and that the bank had difficulty marketing the property and had not listed it with a realtor because of “issues with the county over the bonds outstanding.”
In April 2013, federal agents began interviewing employees and other borrowers about banking irregularities at Cecil Bank. Title to 127 Ebenezer was never transferred to Halsey. Halsey never told the bank that she was the true purchaser of 127 Ebenezer, nor did the bank know that Halsey and Whitehurst had orchestrated the sale of the foreclosed property at the fraudulent price of $150,000, instead of the appraised pre-renovation price of $295,000.
As a result of Halsey’s misrepresentations and omissions, the bank lost approximately $145,000.
Halsey faces a maximum sentence of 30 years in federal prison for each offense: conspiracy to commit bank fraud; false statement in bank records; and receipt of a bribe by a bank official. 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 Deborah K. Chasanow has scheduled sentencing for November 6, 2020 at 11:00 a.m.
Daniel Whitehurst, age 36, of Bel Air, Maryland, pleaded guilty under seal to the federal charge of mail fraud on April 6, 2018. Whitehurst faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud. Judge Chasanow has not scheduled a date for Whitehurst’s sentencing.
United States Attorney Robert K. Hur commended the FHFA-OIG, Mid-Atlantic Region; FDIC/OIG; SIGTARP; and SBA/OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
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Florida Man Charged in Miami Federal Court for Submitting Fraudulent Claims for Unemployment Benefits Intended for People Affected by COVID-19Read the Press Release
Miami, Fl. -- Joel Bellegarde, 30, of Doral, Florida, was arrested and charged with wire fraud, mail fraud, and aggravated identity theft, for submitting fraudulent claims for unemployment benefits to the State of Oklahoma, benefits which were intended for Oklahoma residents who had lost their jobs due to the economic impact of COVID-19.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress and signed into law on March 27, 2020, provided protections to the American people from the public health and economic impacts of COVID-19. 44. Among other things, the CARES Act expanded unemployment benefits to people affected by COVID-19 by expanding eligibility for unemployment benefits, and increasing the dollar amount of unemployment benefit payments.
According to allegations in the criminal complaint, Joel Bellegarde used the stolen identities of numerous Oklahoma residents to submit fraudulent claims for unemployment benefits with the State of Oklahoma. The complaint alleges that that from April 23 through June 23, 2020, Bellegarde accessed the Oklahoma unemployment website over 100 times to submit fraudulent claims. Oklahoma distributed these unemployment benefit funds in the form of direct deposits onto prepaid debit cards, which were subsequently mailed to Bellegarde in Florida.
The complaint alleges that this CARES Act unemployment fraud was one of several fraudulent schemes perpetrated by Bellegarde. The complaint also alleges that Bellegarde used stolen identifies and social engineering to gain access to victims’ retirement savings accounts, and that Bellegarde then fraudulently withdrew funds from those accounts. Specifically, Bellegarde allegedly impersonated victims by providing victims’ names, social security numbers, mailing addresses, and mothers’ maiden names, in order to successfully pass security protocols and request withdrawals of the victims’ retirement funds. Bellegarde’s actions allegedly caused significant losses to the retirement accounts of numerous victims, with some account holders suffering complete depletions of their retirement funds. The complaint further alleges that Bellegarde used stolen identities to submit fraudulent credit card applications in the names of his victims.
U.S. Attorney Fajardo Orshan commended the FBI for its work on this investigation. She also thanked the U.S. Department of Commerce, Office of Inspector General, the U.S. Department of Labor, Office of Inspector General, and the United States Postal Inspection Service for their assistance.
Assistant United States Attorneys Michael B. Homer and Alejandra Lopez are prosecuting this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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-03251.
Florida Doctor Charged in Massive $681 Million Substance Abuse Treatment Fraud SchemeRead the Press Release
A Palm Beach County, Florida doctor was arrested and charged with conspiring to commit health care fraud and wire fraud for his alleged participation in a massive years-long health care fraud scheme throughout Palm Beach County, billing for fraudulent tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction.
In a criminal complaint unsealed Thursday, Michael J. Ligotti, D.O, 46, of Delray Beach, Florida, was charged with conspiracy to commit health care fraud and wire fraud. Ligotti made his initial appearance today before U.S. Magistrate Judge Bruce E. Reinhart in the Southern District of Florida.
The complaint alleges that from approximately May 2011 through March 2020, private insurance companies and Medicare were fraudulently billed approximately $681 million for laboratory testing claims and other services as part of this fraudulent scheme, for which they paid approximately $121 million.
“This massive, multi-year alleged fraudulent billing scheme by a trusted medical professional generated millions of dollars by preying on patients seeking substance abuse treatment,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The charges announced today demonstrate the Department of Justice’s continued resolve to dismantle substance abuse treatment fraud schemes and prosecute those who exploit vulnerable patients seeking help for their substance abuse problems.”
“The substance abuse treatment fraud allegedly perpetrated by the defendant sacrificed the genuine care of vulnerable patients at a time when they urgently needed a trusted health care provider,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Health care providers who allow greed to take precedence over their Hippocratic Oath and participate in these schemes are criminals and will be held accountable for their unscrupulous conduct.”
“The FBI and its partners are working tirelessly every day to detect and combat health care schemes like substance abuse treatment fraud,” said Special Agent in Charge George L. Piro of the FBI's Miami Field Office. “The FBI will not relent in our efforts to dismantle scams that take advantage of vulnerable patients. If anyone suspects they are a victim of health care fraud please call your local FBI office.”
“The treatment of addiction helps restore an individual’s independence from drugs and good health, so they can go back to their families and be productive members in our society,” said Special Agent in Charge Kevin W. Carter of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division. “Physicians and other medical professionals who hold positions of trust within our communities, will absolutely be held accountable for violations of that trust. The DEA Miami Field Division remains committed to working with our law enforcement partners to safeguard our local communities against those who engage in fraudulent practices that endanger both the health and lives of Floridians.”
According to the complaint, Ligotti owned and operated Whole Health in Delray Beach, Florida. Whole Health was a private clinic, which offered, among other things, addiction treatment, family care, and urgent care.
The allegations in the complaint detail Ligotti’s central role in the fraud scheme. Specifically, the complaint alleges that Liggoti: (1) agreed to become the purported “Medical Director” for an addiction treatment facility or sober home for a nominal fee; (2) authorized “standing orders” for hundreds of millions of dollars in medically unnecessary urinalysis tests (UAs), which were billed by testing laboratories that sometimes paid kickbacks to the sober homes or addiction treatment facilities; and (3) in exchange for his signature on these standing orders, required the facilities to have their patients treated by Whole Health and his staff, allowing him to bill hundreds of millions of dollars in additional fraudulent treatments, including unnecessary and expensive UAs, costly blood tests, non-existent therapy sessions, office visits, and other unnecessary services, regardless of whether such treatment and testing were medically necessary and/or actually provided. Ligotti allegedly did not meaningfully review the results of the tests he ordered or use the results of the tests to treat these patients, either at his clinic or at the addiction treatment facilities.
Over the course of the scheme, Ligotti allegedly served as “Medical Director” for more than 50 addiction treatment facilities, and signed over 136 standing orders authorizing such fraudulent tests. According to the complaint, patients at these addiction treatment centers and sober homes were brought to Whole Health and required to submit to testing and treatments authorized by Ligotti, including UA tests at the facilities and at Whole Health. The complaint alleges that the facilities and testing laboratories were also able to bill these patients’ insurers for bogus UA tests authorized by Ligotti. In this way, all parties benefited: (1) the laboratories could bill for these medically unnecessary tests; (2) the addiction treatment facilities and sober homes could bill for such unnecessary testing as well, and sometimes received a kickback from the laboratories for each sample they could provide for testing; and (3) Ligotti could bill millions of dollars’ worth of medically unnecessary, excessive and duplicative treatments for the patients who were delivered to his office as the condition for him signing the standing orders that fueled the entire scheme in the first place.
The complaint further alleges that Ligotti authorized and conducted UAs and blood tests for revenue-generation and did not use these tests in patient treatment. Ligotti allegedly billed for psychiatric services and therapy sessions that never happened, and that he and his staff were not qualified to conduct. Some patients allegedly were billed between $10,000 and $20,000 by Ligotti and Whole Health for a single day’s visit. As charged, Ligotti also utilized multiple nurse practitioners/medical extenders under his practice to fraudulently bill patients’ private insurance. Finally, the complaint also alleges that Ligotti improperly prescribed controlled substances, including large quantities of buprenorphine/Suboxone, frequently exceeding the number of patients he was legally authorized to treat. He provided these drugs to patients who did not need it and ignored evidence of possible diversion.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Palm Beach County RA, with assistance from the IRS-Criminal Investigation Florida Division of Investigative and Forensic Service, Amtrak Office of Inspector General, the Drug Enforcement Administration, and the Palm Beach County State Attorney’s Office.
Senior Litigation Counsel James V. Hayes and Trial Attorney Ligia M. Markman of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Alexandra Chase of the Southern District of Florida are prosecuting the case.
Potential victims and those with information related to Dr. Michael Ligotti or Whole Health should e-mail [email protected]. and use the title “Ligotti Whole Health” in the title of the email when submitting complaints and/or other information regarding this case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Florida Doctor Charged in Massive $681 Million Substance Abuse Treatment Fraud SchemeRead the Press Release
Miami, Fl. -- A Palm Beach County, Florida doctor was arrested and charged with conspiring to commit health care fraud and wire fraud for his alleged participation in a massive years-long health care fraud scheme throughout Palm Beach County, billing for fraudulent tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction.
In a criminal complaint unsealed Thursday, Michael J. Ligotti, D.O, 46, of Delray Beach, Florida, was charged with conspiracy to commit health care fraud and wire fraud.
The complaint alleges that from approximately May 2011 through March 2020, private insurance companies and Medicare were fraudulently billed approximately $681 million for laboratory testing claims and other services as part of this fraudulent scheme, for which they paid approximately $121 million.
“The substance abuse treatment fraud allegedly perpetrated by the defendant sacrificed the genuine care of vulnerable patients at a time when they urgently needed a trusted health care provider,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Health care providers who allow greed to take precedence over their Hippocratic Oath and participate in these schemes are criminals and will be held accountable for their unscrupulous conduct.”
“This massive, multi-year alleged fraudulent billing scheme by a trusted medical professional generated millions of dollars by preying on patients seeking substance abuse treatment,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The charges announced today demonstrate the Department of Justice’s continued resolve to dismantle substance abuse treatment fraud schemes and prosecute those who exploit vulnerable patients seeking help for their substance abuse problems.”
“The FBI and its partners are working tirelessly every day to detect and combat health care schemes like substance abuse treatment fraud,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI will not relent in our efforts to dismantle scams that take advantage of vulnerable patients. If anyone suspects they are a victim of health care fraud please call your local FBI office.”
“The treatment of addiction helps restore an individual’s independence from drugs and good health, so they can go back to their families and be productive members in our society.” said Special Agent in Charge Kevin W. Carter of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division. “Physicians and other medical professionals who hold positions of trust within our communities, will absolutely be held accountable for violations of that trust. The DEA Miami Field Division remains committed to working with our law enforcement partners to safeguard our local communities against those who engage in fraudulent practices that endanger both the health and lives of Floridians.”
According to the complaint, Ligotti owned and operated Whole Health in Delray Beach, Florida. Whole Health was a private clinic, which offered, among other things, addiction treatment, family care, and urgent care.
The allegations in the complaint detail Ligotti’s central role in the fraud scheme. Specifically, the complaint alleges that Liggoti: (1) agreed to become the purported “Medical Director” for an addiction treatment facility or sober home for a nominal fee; (2) authorized “standing orders” for hundreds of millions of dollars in medically unnecessary urinalysis tests (UAs), which were billed by testing laboratories that sometimes paid kickbacks to the sober homes or addiction treatment facilities; and (3) in exchange for his signature on these standing orders, required the facilities to have their patients treated by Whole Health and his staff, allowing him to bill hundreds of millions of dollars in additional fraudulent treatments, including unnecessary and expensive UAs, costly blood tests, non-existent therapy sessions, office visits, and other unnecessary services, regardless of whether such treatment and testing were medically necessary and/or actually provided. Ligotti allegedly did not meaningfully review the results of the tests he ordered or use the results of the tests to treat these patients, either at his clinic or at the addiction treatment facilities.
Over the course of the scheme, Ligotti allegedly served as “Medical Director” for more than 50 addiction treatment facilities, and signed over 136 standing orders authorizing such fraudulent tests. According to the complaint, patients at these addiction treatment centers and sober homes were brought to Whole Health and required to submit to testing and treatments authorized by Ligotti, including UA tests at the facilities and at Whole Health. The complaint alleges that the facilities and testing laboratories were also able to bill these patients’ insurers for bogus UA tests authorized by Ligotti. In this way, all parties benefited: (1) the laboratories could bill for these medically unnecessary tests; (2) the addiction treatment facilities and sober homes could bill for such unnecessary testing as well, and sometimes received a kickback from the laboratories for each sample they could provide for testing; and (3) Ligotti could bill millions of dollars’ worth of medically unnecessary, excessive and duplicative treatments for the patients who were delivered to his office as the condition for him signing the standing orders that fueled the entire scheme in the first place.
The complaint further alleges that Ligotti authorized and conducted UAs and blood tests for revenue-generation and did not use these tests in patient treatment. Ligotti allegedly billed for psychiatric services and therapy sessions that never happened, and that he and his staff were not qualified to conduct. Some patients allegedly were billed between $10,000 and $20,000 by Ligotti and Whole Health for a single day’s visit.
As charged, Ligotti also utilized multiple nurse practitioners/medical extenders under his practice to fraudulently bill patients’ private insurance. Finally, the complaint also alleges that Ligotti improperly prescribed controlled substances, including large quantities of buprenorphine/Suboxone, frequently exceeding the number of patients he was legally authorized to treat. He provided these drugs to patients who did not need it and ignored evidence of possible diversion.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Palm Beach County RA, with assistance from the IRS-Criminal Investigation Florida Division of Investigative and Forensic Service, Amtrak Office of Inspector General, the Drug Enforcement Administration, and the Palm Beach County State Attorney’s Office.
Assistant U.S. Attorney Alexandra Chase of the Southern District of Florida and Senior Litigation Counsel James V. Hayes and Trial Attorney Ligia M. Markman of the Criminal Division’s Fraud Section are prosecuting the case.
Potential victims and those with information related to Dr. Michael Ligotti or Whole Health should e-mail [email protected]. and use the title “Ligotti Whole Health” in the title of the email when submitting complaints and/or other information regarding this case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Five Members of "Cream Scheme" Sentenced to Federal PrisonRead the Press Release
CHATTANOOGA, Tenn. – Over the course of five days, Jerry Wayne Wilkerson, 39, Michael Chatfield, 30, Kasey Nicholson, 34, Billy Hindmon, 38, and Jayson Montgomery, 39, were sentenced by the Honorable Harry S. Mattice, Jr., in United States District Court for the Eastern District of Tennessee at Chattanooga, to prison terms for their roles in a scheme to defraud the federal government and insurance companies.
All five defendants were convicted on multiple counts of fraud and have been sentenced to serve time in federal prison. The sentences varied in length, with the largest sentence being reserved for Jerry Wayne Wilkerson, who will spend over 13 years in custody. Other sentences include: Michael Chatfield – nine years, Billy Hindmon – four years and three months, Kasey Nicholson – two and a half years, and Jayson Montgomery – two years.
The scheme involved dispensing bogus “pain cream” prescriptions to defraud the government and private insurance programs totaling more than $30 million dollars. The trial began last September, with testimony lasting nearly two months. The defendants were given the opportunity to submit legal arguments in writing. Following a bench trial, District Judge Mattice issued the verdict in March 2020, finding all five guilty of multiple counts of fraud.
“The U.S. Attorney’s Office takes pride in working with our law enforcement partners. Each day these partners work tirelessly to detect and combat healthcare schemes such as this one. This office will not relent in our efforts to dismantle scams that take advantage of vulnerable citizens and taxpayers,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
The sentences were the culmination of a five year investigation by Special Agent Brian Kriplean with the Food and Drug Administration’s Office of Criminal Investigations and Special Agent Erik Srock with the Department of Defense’s Office of Inspector General.
Throughout the course of the proceedings, AUSAs Franklin P. Clark and Perry H. Piper represented the United States.
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Federal Grand Jury Returns Superseding Indictment against Tuscaloosa County Man for Drug TraffickingRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury on Tuesday returned a superseding indictment against a Tuscaloosa County man for trafficking methamphetamine, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Frank Haera.
A superseding indictment filed in U.S. District Court charges Kendrell Emons Mills, 38, Cottondale, with possessing with the intent to distribute methamphetamine on three occasions between March and April 2019. Two counts charge Mills with distributing 5 grams or more of methamphetamine, and one count charges him with possessing with the intent to distribute 50 grams or more of methamphetamine.
Due to prior convictions for drug distribution, Mills faces a sentence of a mandatory minimum of 25 years to life in a federal prison for the most serious drug trafficking charge.
ATF investigated the case, along with the West Alabama Narcotics Task Force. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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.
Executive Charged with Skimming $1.1 Million from Federally Insured Nursing HomesRead the Press Release
CHICAGO — The owner of several Illinois nursing homes has been indicted by a federal grand jury for allegedly skimming money from federally insured facilities that had defaulted on mortgage loans to pay expenses of a non-federally insured facility.
MARK YAMPOL, 57, of St. Louis, Mo., is charged with one count of equity skimming, according to an indictment returned Wednesday in U.S. District Court in Chicago. The charge is punishable by up to five years in federal prison. A date for arraignment has not yet been set.
According to the indictment, Yampol controlled a portfolio of nursing homes in Illinois, including homes in the Chicago suburbs of Northbrook and St. Charles. The U.S. Department of Housing and Urban Development insured the mortgage loans made by private lending institutions to all but one of Yampol’s nursing homes. By March 1, 2015, the HUD-insured facilities had not made timely mortgage payments and were in default of their loans. From May 2015 to August 2015, Yampol diverted approximately $1.1 million in funds derived from the HUD-insured facilities, which remained in default on their loans, to pay the mortgage and operating expenses of the non-HUD-insured facility, the indictment states.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development. The government is represented by Assistant U.S. Attorneys Devlin Su and Kathryn Malizia.
“We would like to acknowledge our partners at the U. S. Attorney’s Office, who have worked tirelessly to bring this case forward,” said Inspector General Davis. “The alleged diversion of funds is not only significant in its own right but played a significant role in one of the largest insured claims involving HUD’s Section 232 mortgage insurance program for elderly and disabled residents. This office remains steadfastly committed to ensuring the integrity of HUD programs and particularly those designed to assist vulnerable populations.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Executions Scheduled for Two Federal InmatesRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the executions of two federal death-row inmates who were each convicted of murder.
- William Emmett LeCroy raped and murdered Joann Lee Tiesler, a 30-year-old nurse, in 2001. LeCroy had previously served 10 years in federal and state prison for, among other crimes, aggravated assault, burglary, child molestation, and statutory rape. After his release to supervised probation, LeCroy began planning to flee the country. In furtherance of that plan, LeCroy broke into Tiesler’s home in Gilmer County, Georgia. Once she returned home, LeCroy attacked her, bound her hands behind her back, strangled her with an electrical cord, and raped her. Then he slashed her throat with a knife and stabbed her in the back five times. LeCroy then stole Tiesler’s vehicle and drove to the Canadian border, where he was arrested. In March 2004, a jury in the U.S. District Court for the Northern District of Georgia found LeCroy guilty of carjacking resulting in death and unanimously recommended a sentence of death. His conviction and sentence were affirmed on appeal, and his requests for collateral relief were rejected by every court that considered them. LeCroy’s execution is scheduled for Sept. 22, 2020.
- Christopher Andre Vialva murdered youth ministers Todd and Stacie Bagley in 1999. While stopping to use a payphone in Killeen, Texas, Todd Bagley agreed to give a ride to Vialva and two of his accomplices. In the victims’ car, Vialva pulled out a gun, forced the Bagleys into the trunk, and drove the vehicle for several hours, stopping at ATMs to withdraw money from the couple’s bank account and trying to pawn Stacie Bagley’s wedding ring. While locked in the trunk, the couple spoke with their abductors about God and pleaded for their lives. Vialva eventually parked at a remote site on the Fort Hood, Texas, military reservation, where an accomplice doused the car with lighter fluid as the couple sang and prayed. Vialva then shot Todd Bagley in the head, killing him instantly, and shot Stacie Bagley in the face, knocking her unconscious and leaving her to die of smoke inhalation after an accomplice set the car on fire. In June 2000, a jury in the U.S. District Court for the Western District of Texas found Vialva guilty of, among other offenses, two counts of murder within the special maritime and territorial jurisdiction of the United States and unanimously recommended two death sentences. His convictions and sentences were affirmed on appeal, and his requests for collateral relief were rejected by every court that considered them. Vialva’s execution is scheduled for Sept. 24, 2020.
The executions will take place at the U.S. Penitentiary in Terre Haute, Indiana.
Elmore County Man Sentenced to Prison Following Federal Bank Fraud ConvictionRead the Press Release
Montgomery, AL. – On Wednesday, July 29, 2020, Jimmy Allen Monk, a 60-year-old resident of Elmore County and former PrimeSouth Bank president, was sentenced to 12 months and one day in prison after pleading guilty to bank fraud, announced United States Attorney Louis V. Franklin, Sr., FBI Special Agent in Charge James Jewell, and Special Agent in Charge Kyle A. Myles with the Federal Deposit Insurance Corporation’s Office of Inspector General. Following his prison sentence, he will serve two years of supervised release. There is no parole in the federal system.
According to court records, investigators uncovered Monk’s fraudulent scheme of illegally issuing numerous loans from existing bank client accounts without their knowledge and applying those funds to other loans he was servicing that were past due or at risk of default. This was done to cover up the real status of loans he had approved and to prevent losing his position as President with the bank. For example, in June of 2015, Monk obtained an unauthorized advance of $22,800 from a PrimeSouth Bank loan issued to the Elmore County Economic Development Authority and applied the proceeds of that advance to the unrelated loan accounts of other persons. His scheme took place over the course of at least ten years and resulted in hundreds of thousands of dollars from unauthorized loans, all of which was credited by the bank back to the accounts once the activity was discovered. In addition to his prison sentence, Monk will have to pay $184,195.45 in restitution to the bank and a fine of $20,000.00.
Monk was charged for the bank fraud on February 7, 2020 and he pleaded guilty to the charge on February 20, 2020.
“Wealth, power, and privilege is not a license to break the law,” stated U.S. Attorney Franklin. “Monk abused his position of authority and influence within the community and betrayed the trust of those he was supposed to serve. This prosecution should send a message to anyone in a position of power that such abuse will not be tolerated.”
“This type of white collar crime can seriously undermine the public's trust in our financial institutions,” stated Special Agent in Charge Jewell. “The FBI stands ready to work alongside our state, local, and federal partners to investigate and prosecute these cases and hold the defendants responsible for their actions."
“The public’s trust in the FDIC to supervise and regulate the nation’s financial system is paramount to a stable economy,” stated Special Agent in Charge Myles. “Today’s sentencing reinforces the public’s intolerance for those who threaten that stability by violating their fiduciary oath for personal gain. Our office’s collaboration with the FBI and the U.S. Attorney’s Office represents the government’s commitment to pursue and prosecute those who use their power and influence to defraud the financial system.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Deposit Insurance Corporation’s Office of Inspector General, with assistance from the Alabama Attorney General’s Office. Assistant United States Attorneys Alice LaCour and Thomas Govan prosecuted the case.
Eleven More Defendants Indicted for $4.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Eleven residents in the Kansas City, Missouri, and St. Joseph, Missouri, areas have been added to a federal indictment that now charges a total of 25 defendants for their roles in a $4.1 million drug-trafficking conspiracy that distributed more than 520 kilograms of methamphetamine over three years.
Bobbie Lynn King, 51, and Patricia Gail Nelson, also known as “Mama Pat,” 60, both of Kansas City, Missouri; Michael Glen Zieger, also known as “Lee’s Summit Mike,” 43, of Lee’s Summit, Missouri; Amanda Leigh Watson, 33, of St. Joseph, Missouri; and Logan Tanner Laws, 28, of Shelbina, Missouri, were arrested on July 23, 2020, after being charged in a six-count superseding indictment returned under seal by a federal grand jury in Kansas City on July 21, 2020. That indictment was unsealed and made public following their arrests.
Additionally, Rory Dale Bechtel, 37, of Kansas City, Mo.; Phillip Tra Joseph Hoyt, 43, of St. Joseph, Kenneth James McClure, 41, of Kingdom City, Missouri; Christapher Dean Parton, 31, of St. Joseph, and Marion Douglas McCrorey Jr., 40, of Rich Hill, Missouri, each of whom are already in custody on unrelated state and federal cases, were charged in the superseding indictment. Christopher Brian Rogan, 44, no known address, was also charged in the superseding indictment and is a fugitive from justice.
The superseding indictment replaces an earlier indictment and includes additional defendants. Defendants originally charged in the indictment are Trevor Scott Sparks, 31, Gerald L. Ginnings, 40, Gloria May Jones, 30, Vicente Araujo, 23, Leslie Ladon Walker, 33, and Paul J. Kibodeaux, 37, all of Kansas City, Mo.; Markus Michael A. Patterson, 37, of Grandview, Mo.; David Robert Richards II, 32, of Louisburg, Kan.; Christian Douglas Hansen, 41, of St. Louis, Mo.; and Stephanie Thurmond, 29, Leeanna Michelle Schroeder, 27, and Adam Joseph Mainieri, 32, all of Winfield, Mo.
The federal indictment alleges that all of the defendants, with the exception of Sparks, participated in a conspiracy to distribute methamphetamine from Jan. 1, 2017, to July 21, 2020. According to the indictment, conspirators received $4,160,000 in exchange for the unlawful distribution of more than 520 kilograms of methamphetamine, based on an average street price of $8,000 per kilogram of methamphetamine.
Sparks is charged with one count of engaging in a continuing criminal enterprise that involved the distribution of at least 10 kilograms of methamphetamine. According to the indictment, Sparks was the principal leader of the criminal enterprise and obtained substantial income from the criminal enterprise.
All of the defendants are also charged with participating in a money-laundering conspiracy during that time to use drug sale proceeds to promote the drug-trafficking conspiracy and to conceal the proceeds of that drug-trafficking conspiracy.
Each of the defendants, with the exception of Kibodeaux, Rogan, and McClure, are charged together with possessing multiple firearms in furtherance of violent crimes and drug-trafficking crimes.
Ginnings, Sparks, Patterson, Jones, Hansen, Mainieri, Hoyt, King, Nelson, and Zieger also are charged together in one count of being felons in possession of multiple firearms and ammunition.
Araujo, Walker, Thurmond, Schroeder, Meyers, Hack, Bechtel, Laws, and Parton also are charged together in one count of being drug users in possession of multiple firearms and ammunition.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property obtained from the proceeds of the drug-trafficking conspiracy, including a money judgment of $4,160,000.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Buchanan County, Mo., Sheriff’s Department.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Eight charged in scheme to defraud FDA and falsify records used in clinical research trialsRead the Press Release
United States Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland has returned a 19-count indictment charging Amie Demming, age 44, of Strongsville, Ohio; John Panuto, age 60, of Avon Lake, Ohio; Debra Adamson, age 67, of Spring Hill, Tennessee; Ashley Nichole Adamson, age 34, of Las Vegas, Nevada; William Adamson, age 38, of Las Vegas, Nevada; Daniel Gwin, age 43, of Lakewood, Ohio; Brent Smith, age 45, of Willoughby, Ohio; and Walter O’Malley, age 39, of Brunswick, Ohio with conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft, conspiracy to defraud the United States, and failure to maintain adequate records.
“These defendants are accused of subverting a process that ensures pharmaceutical drugs are safe and effective for public consumption,” said U.S. Attorney Justin Herdman. “By doing so, and for the sole purpose of making more money for themselves, these defendants jeopardize the health and safety of the public.”
According to the indictment, from January 2013 to March 2018, the defendants are alleged to have participated in a scheme to defraud eight pharmaceutical companies and the U.S. Food and Drug Administration. Defendant Amie Demming founded a clinical research company in 2008 to conduct trials on behalf of various pharmaceutical companies. The office had locations in Middleburg Heights, Ohio and Franklin and Smyrna, Tennessee. Defendant John Panuto was a licensed medical doctor and the Principal Investigator for the research company at the Middleburg Heights Office and was responsible for the oversight of most clinical trials conducted at that office.
The defendants and their co-conspirators are alleged to have entered into agreements with these pharmaceutical companies, or sponsors, to conduct clinical trials of pharmaceutical drugs for public consumption. In order to perform these trials accurately, the research company was required to meet all applicable FDA regulations and other standards set by the sponsoring agencies.
The defendants are alleged to have subverted these requirements by enrolling subjects in clinical trials under fictitious names, enrolling past subjects without their knowledge, and enrolling other subjects who did not meet pre-established criteria. In addition, the defendants allegedly fabricated and falsified medical records, informed consent forms, and other documentation for fictitious study subjects.
Court documents show that defendants were able to enrich themselves in this scheme by billing the sponsoring agencies for the time and participation of these fictitious subjects.
As part of their scheme, the defendants are accused of circumnavigating the FDA’s oversight of clinical studies. In response to complaints from sponsoring agencies, the FDA conducted an investigation into the research company and found that Panuto had violated certain clinical trial criteria, such as failure to conduct studies in accordance with signed statements and failure to maintain adequate records.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Food and Drug Administration, Office of Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Megan R. Miller.
Dietrich Man Sentenced to 15 Months for Illegally Possessing FirearmsRead the Press Release
BOISE - Jeremy Dale Sortor, 48, of Dietrich, Idaho, was sentenced in U.S. District Court to 15 months in federal prison for illegally possessing firearms after prior convictions for felony sex and stalking offenses, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Sortor pay a $750 fine and to serve three years of supervised release following his prison sentence. Sortor pleaded guilty to illegally possessing the firearms on December 2, 2019.
According to court records, on July 30, 2018, Sortor was seen with a firearm. At the time, Sortor was on parole for a felony stalking conviction. On August 14, 2018, Idaho Department of Correction parole officers found two firearms in Sortor’s residence and six rounds of ammunition in his pocket.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Idaho Department of Correction.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Court of Appeals Finds That District Court Properly Denied Fraudster's Request for Compassionate ReleaseRead the Press Release
CONCORD – The United States Court of Appeals for the First Circuit has affirmed a district court’s decision that denied Scott Farah’s request for compassionate release, United States Attorney Scott W. Murray announced today.
Farah, 56, is serving a 15-year prison sentence for mail fraud and wire fraud arising out of his participation in a multi-million dollar Ponzi scheme. In 2019, Farah asked the district court for compassionate release arguing, in part, that he needed to care for his elderly parents. United States District Judge Paul Barbadoro denied Farah’s request on August 6, 2019.
Farah appealed this decision to the United States Court of Appeals for the First Circuit. In an order issued today, the Court of Appeals affirmed Judge Barbadoro’s decision, finding that he acted within his discretion in denying Farah’s request for compassionate release.
“We are pleased with this decision, which will leave Mr. Farrah in prison to serve the remainder of the sentence that was justly imposed on him in 2011,” said U.S. Attorney Murray. “Farah’s fraud scheme deprived his victims of millions of dollars and caused terrible damage to their lives. Hopefully this ruling will bring at least some closure for them.”
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Corpus Christi man charged with CARES Act unemployment fraudRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old man has been charged with mail fraud after allegedly receiving nearly $100,000 in fraudulent benefits, announced U.S. Attorney Ryan K. Patrick.
William Peck is expected to make his initial appearance today at 10:15 a.m. before U.S. Magistrate Judge Jason B. Libby.
The criminal complaint, filed July 29, alleges that Peck secured a Post Office (P.O.) box at the Portairs Station in Corpus Christi in May 2020. Within weeks, authorities noticed a large volume of Texas Workforce Commission (TWC) correspondence addressed to several different individuals, but at the same mailing address, according to the charges. The complaint further alleges claims for 85 different individuals had been submitted to TWC for Pandemic Unemployment Assistance (PUA) - all listing Peck’s P.O. Box as their address on file.
The investigation revealed several of those applications listed the same names, but had different Social Security (SS) numbers, according to the charges. Numerous applications also allegedly indicated a Texas residence. However, the investigation revealed SS numbers on many of the claims were actually associated with persons residing outside of Texas, according to the complaint.
TWC allegedly paid out approximately $95,000 for PUA claims listing Peck’s P.O. Box as the address for the purported claimants.
The Coronavirus Aid, Relief and Economic Security Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
If convicted of mail fraud, Peck faces up to 20 years in federal prison and a possible $250,000 million maximum fine.
The Department of Labor - Office of the Inspector General, U.S. Postal Inspection Service and TWC conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Asha Natarajan are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Convicted Felon Sentenced to 8 Years for Possession of Multiple Firearms, Including in Furtherance of a Drug Trafficking CrimeRead the Press Release
Memphis, TN – James Wilkins, 30, has been sentenced to 102 months in federal prison for two counts of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on December 8, 2017, a Memphis Police Department Officer executed a traffic stop on a gray Nissan Sentra. As the officer approached the vehicle, Wilkins was asked to lower his window; the officer could smell the strong odor of marijuana coming from inside the vehicle. Wilkins, the driver and sole occupant, was asked to exit the vehicle. When he did so, officers saw a single loose pill on the driver’s seat, later identified as a 15mg Oxycodone, a Schedule II controlled substance.
While searching the vehicle, officers noticed a loose panel on the center console and found two firearms and magazines; a Smith & Wesson .380 caliber pistol loaded with seven rounds; a Smith & Wesson 9mm loaded with ten rounds and an extended .380 caliber magazine with several rounds of ammunition. The 9mm pistol was reported stolen during a 2017 car burglary in Memphis.
While out of jail on a bond for $100,000 for the December 8, 2017, arrest, Wilkins was again arrested on December 10, 2018. On that date, Memphis Police Officers were patrolling the high drug sales area of Maplewood/Chelsea, and they noticed a white Mazda 6 sedan in front of a residence on Maplewood St. Officers checked the vehicle’s registration and it came back expired as of July, 2017.
As officers approached the car they noticed a male, later identified as Wilkins, in the front passenger seat who kept reaching towards the center console and floorboard area. Law enforcement ordered Wilkins to put his hands up and exit the vehicle; instead he kept reaching towards the floorboard area. Wilkins finally complied and as he stepped out, Officers could see the chrome barrel of a Ruger .380 caliber pistol from the passenger side of the center console compartment. During transport, Wilkins told the Officers that he also had some marijuana on his person. Officers found 7 individually wrapped baggies containing marijuana.
Wilkins has two previous criminal convictions for felony drug offenses. As a result, he is prohibited by federal law from possession of firearms or ammunition.
On September 23, 2019, Wilkins pled guilty to being a convicted felon of firearms, and on September 27, 2019, Wilkins pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
On July 28, 2020, U.S. District Court Judge Thomas L. Parker sentenced Wilkins to 102 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and this defendant continued to possess firearms and illegal narcotics despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun toter that will be removed from our streets. Gun Crime is Max Time."
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods Task Force. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice 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.
Assistant U.S. Attorneys Wendy K. Cornejo and Michelle Kimbril-Parks and Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
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Convicted Felon Sentenced to 46 Months for Being in Possession of Multiple FirearmsRead the Press Release
Memphis, TN – Tra Lott, 27, has been sentenced to 46 months in federal prison for being a convicted felon in possession of firearms. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 12, 2018, Lott was served with an arrest warrant for solicitation of a minor-rape of a child and aggravated sexual battery. When officers entered the residence, they discovered Lott and his girlfriend were the only occupants; Lott was immediately arrested.
Officers further observed a magazine in plain view, and they obtained a search warrant for Lott’s residence. Officers recovered two Taurus 9mm caliber pistols and one Romarm Cugir 7.62x39mm caliber pistol. On December 19, 2019, Lott pled guilty to being a convicted felon in possession of firearms.
Lott has previous criminal convictions for a felony drug offense and a misdemeanor crime of domestic violence. As a result, Lott is prohibited by federal law from possession of firearms or ammunition.
On July 27, 2020, U.S. District Court Judge Mark S. Norris sentenced Lott to 46 months in federal prison followed by 2 years of supervised release.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms such as convicted felons and persons with histories of domestic violence present a known and immediate risk of violence to their families and the community at large. In order to protect public safety and uphold the rule of law, we must remove firearms from the hands of prohibited persons and remove dangerous offenders from our streets. This sentence does just that."
This case was investigated by the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorneys Wendy K. Cornejo and P. Neal Oldham prosecuted this case on behalf of the government.
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Car Stop in Kansas Uncovered Fentanyl, HeroinRead the Press Release
WICHITA, KAN. – A California man pleaded guilty Thursday in federal court in Wichita to trafficking in fentanyl and heroin, U.S. Attorney Stephen McAllister said.
Mauricio Canas, 24, Bermuda Dunes, Calif., pleaded guilty to one count of interstate transportation in furtherance of drug trafficking and one count of using a phone in furtherance of drug trafficking. In his plea, he admitted law enforcement officers stopped his car in Thomas County for a traffic violation. In the car, they found more than 9 pounds of fentanyl and more than 8 pounds of heroin.
Investigators learned Canas was transporting the drugs from California to New York for distribution when he passed through Kansas. He used a phone to communicate with his contacts in New York.
Sentencing is set for Oct. 22. He could face a penalty of up to five years in federal prison and a fine up to $250,000 on the transportation charge and up to four years and a fine up to $250,000 on the other count.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Katie Andrusak for their work on the case.
Butler County man pleads guilty to lying on federal form for firearm later used in murder of DEA task force officerRead the Press Release
DAYTON – A Butler County man pleaded guilty in U.S. District Court today to making a false statement in connection with the acquisition of the firearm used in killing Dayton Police Detective and DEA Task Force Officer Jorge DelRio on Nov. 4, 2019, during the execution of a search warrant on Ruskin Road in Dayton.
Delano Wells, 50, of Trenton, was charged by criminal complaint on Nov. 5, 2019, with making false statements on a federal firearms form.
According to court documents, three firearms were recovered from the scene on Ruskin Road on Nov. 4: two pistols with extended magazines and an AR-style weapon.
ATF was called to assist with tracing the three firearms and an urgent trace was requested for all three firearms recovered in the shooting.
Wells purchased all three firearms recovered from the scene, and at least six others in August and September 2019.
As part of his plea, Wells admitted that he purchased firearms on behalf of another individual, which had been selected by the other individual. Once Wells purchased the firearms, he would provide them to the other individual.
Wells lied on ATF Form 4473 by indicating “yes” he was purchasing the firearm for himself and not for anyone else. In reality, he purchased the firearms on behalf of another individual.
Wells faces up to 10 years in prison. Sentencing is scheduled for 1:30pm on November 13.
David M. DeVillers, U.S. Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Dayton Police Chief Richard S. Biehl; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Chris Hoffman, Special in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Andrew J. Hunt and Amy M. Smith are representing the United States in this case.
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Boulder Man Pleads Guilty to Nearly $32 Million Bank Fraud SchemeRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Michael Scott Leslie, age 57, of Boulder, Colorado, pleaded guilty to federal bank fraud and aggravated identity theft charges. Leslie appeared remotely on a $50,000 unsecured bond, which was continued at the hearing’s conclusion. The Denver office of the FBI, and the Offices of the Inspector General for both the Department of Housing and Urban Development (HUD) and the Federal Deposit Insurance Corporation (FDIC) joined in today’s announcement.
According to the stipulated facts contained in Leslie’s plea agreement, Leslie owned, operated, or otherwise had an interest in several business entities, some of which were operated out of Colorado. These entities were involved in or affiliated with financing or originating residential mortgage loans. Through these business entities, Leslie sold residential mortgage loans to investors, including an FDIC-insured bank in Texas (“the victim bank”).
Between October 2015 and October 2017, Leslie devised and executed a scheme to defraud the victim bank by selling it 144 fraudulent residential mortgage loans valued at $31,908,806.88. These loans were purportedly originated by one of Leslie’s companies, Montage Mortgage, and “closed” by Snowberry, which earned fees for the closing. The loans were then presented and sold to the victim bank until Montage identified a final investor. For these 144 fraudulent loans, that final investor was Mortgage Capital Management (MCM).
Leslie never disclosed to the victim bank that he operated MCM and Snowberry, or the fact that sales to investor MCM, even if they had been real, were not arms-length transactions.
The 144 residential mortgage loans sold to the victim bank were not, in fact, real loans. The borrowers listed on these 144 fraudulent loans were real individuals, but they had no idea that their identities had been used as part of the sale of the fraudulent loans. The defendant had access to their personal identifying information in one of two primary ways: (1) the borrowers had used Montage for legitimate residential real estate transactions which were properly executed and closed, or (2) the borrowers had been solicited by Montage about refinancing their existing loans. In the case of refinance transactions, Montage secured permission from the borrowers to request credit scores and history from the major credit agencies. After receipt of those credit scores, Montage often told these would-be refinance borrowers that they did not qualify for a refinance. Leslie then recycled the borrowers’ information, obtained through prior legitimate transactions or attempted refinances, to create and sell nearly $32 million of fraudulent loan packages.
To execute this scheme, Leslie forged signatures on closing documents and fabricated and altered credit reports as well as title documents, often by using the names of legitimate companies. The fraudulent real estate transactions were never filed with the respective counties in which the properties were located, there were no closings, and no liens were ever recorded. Through numerous bank accounts for the various business entities and his personal accounts, the defendant used money in a Ponzi-like fashion from prior fraudulent loans sold to the victim bank to fund future fraudulent loans. This complex flow of money continued until the defendant’s fraud was detected. When the fraud was discovered, the victim bank still had 12 fraudulent loans, valued at $3,887,505.93, on its books that it could not, given that the loans did not exist, sell to any other legitimate third-party investor.
Chief U.S. District Court Judge Philip A. Brimmer presided over the change of plea hearing today, July 31, 2020. Leslie was first charged by information on June 5, 2020. This case was investigated by the Denver office of the FBI, and the Offices of the Inspector General for both the Housing and Urban Development and the Federal Deposit Insurance Corporation. The defendant was prosecuted by Assistant U.S. Attorneys Hetal J. Doshi and Jeremy Sibert.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-cr-171.
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.
Arizona Man Charged with Distribution of Child Pornography as Part of Operation Kick BoxerRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury handed down an indictment alleging that Dale L. Bauwens II (age: 34) of Lake Havasu City, Arizona, distributed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A).
Bauwens is charged with two counts of distributing child pornography. Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction.
Bauwens’ indictment is a direct result of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney’s Office, and the Winnebago County Sheriff's Office (https://go.usa.gov/xfPHh).
This case was investigated by the FBI’s Milwaukee, Green Bay, and Phoenix Offices, as well as the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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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Alleged Leader of Maritime Alien Smuggling Ring ArrestedRead the Press Release
Assistant U.S. Attorney Matthew J. Sutton (619) 546-8941
NEWS RELEASE SUMMARY - July 31, 2020
SAN DIEGO – The alleged leader of a prolific maritime alien smuggling ring, Guillermo Barba, was arraigned on an indictment charging him with alien smuggling offenses yesterday in federal court before U.S. Magistrate Judge Andrew G. Schopler.
Barba is scheduled for a detention hearing before U.S. Magistrate Judge William V. Gallo on August 4, 2020 at 2:00 p.m.
According to the indictment and other publicly available court documents, Barba was a leader of an alien smuggling organization based out of Baja California, Mexico and San Diego, California, which used panga boats, pleasure crafts, and multiple load vehicles to facilitate its sophisticated maritime smuggling operation. This organization is believed to responsible for at least 25 alien smuggling events dating back to November 2017.
This case is the result of ongoing efforts by Homeland Security Investigations - Marine Task Force (MTF) to dismantle active transnational criminal organizations involved in alien smuggling along the U.S.-Mexico border in the Southern District of California. During the last year, MTF and its interagency partners have apprehended approximately 300 illegal aliens off the coast of San Diego. The MTF was also aided in this investigation by the HSI Tijuana Attaché Office
“In addition to undermining this nation’s border security, smuggling on the ocean is extremely dangerous for the individuals being smuggled,” said U.S. Attorney Robert Brewer. “Barba’s arrest and the dismantling of this alien smuggling group is the product of outstanding federal and international law enforcement cooperation that resulted in this successful arrest.”
“Maritime smuggling puts lives at risk and is extremely dangerous. Smugglers often use unsafe boats to enter the U.S. illegally,” said San Diego Sector Border Patrol Chief Patrol Agent Aaron Heitke. “A unified effort has brought this alleged criminal enterprise to an end and it is only through continued cooperation that other transnational criminal organizations can be effectively targeted and dismantled.”
“Homeland Security Investigations (HSI) remains steadfast in our commitment to vigorously pursuing members of transnational criminal networks that exploit and endanger the people they smuggle into our country,” said Cardell T. Morant, Special Agent in Charge of HSI San Diego. “We will continue to work collaboratively with our domestic and international partners to identify, investigate, and prosecute the leaders of these dangerous smuggling networks.”
The United States is represented in court by Assistant U.S. Attorney Matthew J. Sutton.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No: 19-cr-4531-JLS
Name
Age
Hometown
Guillermo Barba
29
San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Bring in Illegal Aliens for Financial Gain
Conspiracy to Transport Illegal Aliens for Financial Gain
Maximum Penalties: A term of custody including a mandatory minimum of three years in custody and up to 10 years in custody
AGENCIES
Homeland Security Investigations - Marine Task Force
United States Border Patrol, Imperial Beach Station
United States Border Patrol, San Clemente Station
Customs and Border Protection, Office of Air and Marine
Customs and Border Protection, Office of Field Operations
U.S. Coast Guard
U.S. Coast Guard Investigative Service
San Diego Harbor Police
Homeland Security Investigations – Tijuana
San Diego ReCoM - Regional Coordinating Mechanism.
(ReCoM is comprised of the U.S. Coast Guard, CBP’s Office of Air and Marine, Office of Field Operations, U.S. Border Patrol, Immigration and Customs Enforcement Homeland Security Investigations and state and local law enforcement partners operating in the Southern California. The ReCoM utilizes the fusion of intelligence, planning and operations to target the threat of transnational crime along the coastal border)
Alaska Doctor Sentenced for Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that DR. ANDREW J. VAN ATTA, age 37, from Wasilla, Alaska, was sentenced today to three years of probation for a fraudulent scheme in which VAN ATTA impersonated other doctors while submitting paid surveys.
VAN ATTA pled guilty on November 18, 2019, to the one-count indictment that charged him with committing wire fraud from January of 2017 through May of 2018. According to court documents, starting in January of 2017, when VAN ATTA was a medical student, and continuing after he graduated, VAN ATTA used multiple email accounts and PayPal accounts to impersonate numerous other physicians while filling out surveys with a survey company that paid VAN ATTA for surveys that the victim company believed were completed by various other physicians. The company paid VAN ATTA a total of over $114,000 for the surveys completed under the fake names.
Judge Susie Morgan sentenced VAN ATTA to three years of probation. Judge Morgan will hold a restitution hearing for October 27, 2020.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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30 July 2020
Woman who worked at local research institute for 10 years pleads guilty to conspiring to steal trade secrets, sell them in ChinaRead the Press Release
COLUMBUS, Ohio – A former Dublin, Ohio woman pleaded guilty via video conference in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Li Chen, 47, also pleaded guilty to conspiring to commit wire fraud.
Chen admitted to stealing scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for her own personal financial gain.
Chen and her husband, alleged co-conspirator Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They are charged with conspiring to steal at least five trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to her plea agreement, Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Chen admitted to starting a company in China to sell the kits. Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Chen also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.
“Nationwide Children’s Hospital’s Research Institute took reasonable measures to protect its cutting-edge intellectual property and trade secrets regarding exosomes, and I commend the cooperation of Nationwide Children’s throughout this investigation,” U.S. Attorney David M. DeVillers said. “Chen betrayed her employer of 10 years by stealing trade secrets from this American institution and transferring them to China after receiving payments from the Chinese government.”
“Li Chen was a trusted researcher at Nationwide Children’s Hospital, conducting cutting-edge U.S. government-funded research,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “With her guilty plea, she admits that she abused this trust to establish a company in China for her own financial gain. The FBI is committed to working closely with partners such as Nationwide Children’s Hospital to protect the innovations that make America a world leader in science and technology.”
As part of her plea, Chen has agreed to forfeit approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc.
Chen and Zhou were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
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Utica Man Previously Convicted of Bank Robbery Pleads Guilty to Bank Robberies in Depew, Gates, and Penfield Following Thruway Traffic StopRead 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 Nicholas Ferrone, 28, of Utica, NY, pleaded guilty before U.S. District David G. Larimer to three counts of bank robbery. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean Eldridge, who is handling the case, stated that the defendant committed three bank robberies: on August 20, 2019, Ferrone robbed the Bank of America, located at 5091 Broadway in Depew, NY; on October 31, 2019, Ferrone robbed the Chase Bank, located at 6 Spencerport Road in Gates, NY; and on December 17, 2019, Ferrone robbed the M&T Bank, located at 625 Panorama Trail in Penfield, NY. In each of the three robberies, the defendant was wearing a high-quality latex mask that covered his face, and handed the tellers notes demanding money.
On January 13, 2020, a New York State Trooper conducted a traffic stop on a vehicle driven by Ferrone on the New York State Thruway. The vehicle did not have license plates displayed, nor did it display a valid inspection sticker. Law enforcement officers conducted a search of the vehicle and recovered controlled substances, as well as several high quality latex masks, including one that appears to have been used in the Bank of America robbery in Depew, and another mask that appears to have been used in both the Chase Bank and M&T Bank robberies in Gates and Penfield. Also recovered from the vehicle were numerous items of clothing matching the clothing worn during the three charged robberies, along with two handwritten notes that read “I Have Gun Large Bills” and “I Have Gun All Large Bills.”
Previously, in May 2013, Ferrone was convicted in United States District Court in the Northern District of New York on eight counts of federal bank robbery.
The plea is the result of an investigation by the Federal Bureau of Investigation, Major Crimes Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Eric Laughton; the East Rochester Police Department, under the direction of Chief Steve Clancy; the Depew Police Department, under the direction of Chief Jerome Miller; and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata.
Sentencing is scheduled for September 29, 2020, before Judge Larimer.
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Union County Man Is Sentenced to Five Years in Prison for Making A False Statement to the FBIRead the Press Release
CHARLOTTE, N.C. – Alexander Samuel Smith, 32, of Waxhaw, N.C., was sentenced to 60 months in prison late yesterday, for making a false statement to the FBI, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Max O. Cogburn Jr. also ordered Smith to serve three years under court supervision upon completion of his prison term. As a special condition of Smith’s supervised release, the Court ordered the defendant to have no contact with any organization or person on the State Department’s designated terrorist list.
John A. Strong, Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial and yesterday’s sentencing hearing, in February 2016, Smith lied during an interview with the FBI about his plans to travel to Syria to join the Islamic State of Iraq and al-Sham (ISIS), and about providing assistance to other individuals to do the same. Specifically, as trial evidence established, Smith denied purchasing a “buddy pass,” which is a discounted airfare offered to airline employees, for an individual he believed wanted to exit the United States and ultimately join ISIS in Syria.
In announcing the sentence, Judge Cogburn said that Smith was “ready, willing and able to help a terrorist organization,” and that the sentence was designed in part to deter people from lying to protect terrorists.
On March 21, 2019, a federal jury convicted Smith of two counts of making a false statement to the FBI. Smith is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The case was investigated by the FBI. Assistant U.S. Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
U.S. Attorney’s Office Marks 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Matthew Schneider, the United States Attorney for the Eastern District of Michigan, today marked the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (“ADA”), which was signed into law by President George H.W. Bush on July 26, 1990. The ADA is a landmark civil rights law that prohibits discrimination on the basis of disability in employment, government activities, and public accommodations. The ADA has advanced the promise of equal access in our society, ensuring that people with disabilities enjoy the same opportunity as all Americans to fully participate in our society. We honor the many ways that the ADA has transformed our society – by replacing exclusion with access, segregation with integration, and limitations with self-determination. However, work still needs to be done to ensure full inclusion for people with disabilities.
The ADA empowers the Department of Justice to investigate, litigate, and resolve complaints of discrimination as well as authorizing the Government to conduct compliance reviews of covered entities. The U.S. Attorney’s Office, through its Civil Rights Unit, has used the ADA to protect the rights of individuals with disabilities to fully participate in many aspects of society including voting, health care, child care, education, housing, shopping, dining, and travelling. “The ADA affirmed our nation’s most fundamental commitments to equal opportunity and fairness for all,” said U.S. Attorney Matthew Schneider. “We understand that despite the strides that have been made towards equal access, far too many barriers remain, but our office will continue our efforts to tear down the shameful wall of exclusion that prevents full participation in our society for individuals with disabilities.”
The U.S. Attorney’s Office has prioritized enforcing the ADA to secure the rights of people with disabilities in the Eastern District of Michigan in several recent matters. These efforts include:
ENSURING EFFECTIVE COMMUNICATION
- Settlement with William Beaumont Hospital to resolve ADA investigation regarding effective communication for individuals who were deaf or hard of hearing. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-reaches-agreement-william-beaumont-hospital-resolve-ada
- Settlements with two medical offices to resolve allegations that they violated the Americans with Disabilities Act by refusing to provide effective communication to patients persons who are deaf or hard of hearing. https://www.justice.gov/usao-edmi/pr/justice-department-settles-disability-claims-two-clinical-psychology-offices-involving
- Agreement with Macomb County Prosecutor's Office to ensure effective communication for persons who are deaf or hard of hearing. https://www.justice.gov/usao-edmi/pr/us-attorneys-office-and-michigan-department-civil-rights-reach-agreement-macomb-county
PREVENTING DISCRIMINATION AGAINST CHILDREN WITH DISABILITIES
- Nationwide settlement with Learning Care Group, Inc. to resolve allegations that it denied children requiring insulin injections and their families the full benefit of its child care services. /media/943696/dl?inline
- Nationwide settlement with Little League Baseball, Inc. to protect rights of players with disabilities. https://www.nbcnews.com/nightly-news/video/visually-impaired-boy-fights-to-make-baseball-accessible-and-wins-1263774275638
- Settlement with Sunny Skies Child Care Center in Clawson over claim of discrimination against a child with a peanut allergy. /media/1032716/dl?inline
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PROMOTING CIVIC ACCESS
- Settlement with 11 municipalities in Isabella County to ensure access for individuals with disabilities at polling places. https://www.justice.gov/usao-edmi/pr/us-attorneys-office-resolves-ada-investigation-polling-sites-isabella-county-mi-ensure
- Settlement with Dayton Township to ensure civic access for individuals with disabilities. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-obtains-ada-settlement-dayton-township-ensure-civic-access-people
REMOVING PHYSICAL BARRIERS TO ACCESS
- Agreement with the Fill Building, a Madison Heights office building, to enact structural changes to make building accessible for individuals with disabilities. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-announces-settlement-agreement-resolve-americans-disabilities-act
- Agreement with the Red Olive Restaurant in St. Clair Shores to improve physical accessibility for individuals with disabilities. https://www.justice.gov/usao-edmi/pr/st-clair-shores-restaurant-and-shopping-center-works-us-attorneys-office-improve-access
- Settlement with Roberts Riverwalk Hotel in Detroit to improve access for people with disabilities. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-reaches-settlement-roberts-riverwalk-hotel-detroit-improve-access
- Completed compliance review of the University of Michigan’s Mcity driverless shuttle program. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-resolves-ada-compliance-review-university-michigan-s-mcity
EMBRACING SERVICE ANIMALS
- Settlement with the Bangor Township School District in Bay City to resolve allegations that the school district violated the ADA by refusing to allow a student with disabilities to use his service dog in school. https://www.justice.gov/usao-edmi/pr/us-attorney-s-office-obtains-settlement-school-district-bay-city-resolve-ada
- Settlement with Joyce’s Farm Market in Ottawa Lake to resolve an allegation that it refused service to an individual with a disability accompanied by a service animal. https://www.justice.gov/usao-edmi/pr/united-states-attorney-s-office-settles-ada-dispute-joyce-s-farm-market-involving
The Civil Rights Unit at the U.S. Attorney’s Office handles complaints of noncompliance with the ADA. Members of the public with a complaint relating to ADA compliance may submit a complaint by email to [email protected], or by calling (313) 226-9151.
For more information on the ADA, or the 30th Anniversary of the ADA, please visit www.ada.gov.
U.S. Attorney Scott Murray Recognizes 30th Anniversary of Americans with Disabilities ActRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that this week marks the 30th Anniversary of the Americans with Disabilities Act (the ADA), the landmark civil rights law that aims to eliminate discrimination against people with disabilities.
The U.S. Attorney’s Office for the District of New Hampshire is proud to play a critical role in the Department of Justice’s enforcement efforts under the ADA. The ADA is the nation’s preeminent civil rights law for providing access and equal opportunity for people with disabilities.
“The ADA has bettered the lives of Americans by ensuring that people with disabilities are more fully included in our society,” said Murray. “Our office remains committed to investigating complaints, remedying violations, and protecting the civil rights of all of our citizens.”
Over the past 30 years, our country has undertaken the hard work of changing attitudes about disability, tearing down barriers to equality, and dismantling the systems that have historically excluded people with disabilities. We commemorate the many ways that the ADA has transformed our society—by replacing exclusion with access, segregation with integration, and limitations with self-determination. The ADA has advanced the promise of the American dream, ensuring that people with disabilities can write their own stories. We are better and stronger because of the contributions that people with disabilities make.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov
To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/ or contact Assistant U.S. Attorney Raphael Katz at (603) 225-1552.
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
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Two Modesto Residents Indicted for Trafficking Large Amount of Methamphetamine and HeroinRead the Press Release
FRESNO, Calif. — A Modesto couple was indicted today by a federal grand jury for conspiracy to distribute methamphetamine and heroin, U.S. Attorney McGregor W. Scott announced.
Jose Juan Garcia-Herrera, 59, and Lupe Aime Busio-Valencia, 41, were charged with conspiracy to distribute methamphetamine and heroin and with possession of methamphetamine and heroin with intent to distribute.
According to court documents, during the investigation, detectives observed Garcia-Herrera transferring items from a residence to an area under the driver’s seat of a vehicle. During a subsequent stop of the vehicle driven by Garcia-Herrera and accompanied by Busio-Valencia, detectives seized 10 pounds of methamphetamine and 3 kilograms of heroin. When a search warrant was executed at their residence, agents found evidence methamphetamine powder being converted to a crystal from inside the residence. During the search, agents also seized a firearm and $38,000 that was found in the bedroom.
This case is the product of an investigation by the Modesto Police Department and Homeland Security Investigations. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, both defendants face a maximum statutory penalty of life in prison, a $10 million fine, and forfeiture of the $38,000 seized during the search. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Men Indicted for Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment on July 7, 2020, charging two men with conspiracy to commit bank fraud, 13 counts of bank fraud, and 1 count of aggravated identity theft. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment charges Isaleb Anofils, 31, of Vero Beach, and Donyell Garland, 32, of Tallahassee. It alleges that Anofils and Garland conspired to defraud federally insured financial institutions between January 1, 2018, and April 9, 2018. Specifically, the indictment alleges that the two men used a combination of cell phone apps and various internet websites to obtain personally identifiable information on nine individuals. Anofils and Garland then allegedly used that information to make fraudulent cash withdrawals from ATMs at their victims’ financial institutions. In total, it is alleged that Anofils and Garland fraudulently obtained or attempted to obtain approximately $151,000 in funds to which they were not entitled.
Both men face a maximum penalty of 30 years in prison for the conspiracy to commit bank fraud and bank fraud counts, and an additional 2-year mandatory minimum prison sentence, consecutive to any other sentence imposed, for the aggravated identity theft count.
This case resulted from an investigation by the Leon County Sheriff’s Office with assistance from the Florida Department of Law Enforcement and the United States Secret Service. Assistant United States Attorney Justin M. Keen is prosecuting the case.
A jury trial for Garland is scheduled for August 24, 2020, and Anofil’s jury trial is scheduled for September 28, 2020. Each defendant will be tried before the Honorable Chief United States District Judge Mark E. Walker at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Anofil and GarlandTwo Individuals Charged in Large Scale Marijuana Grow OperationRead the Press Release
Two individuals were arrested yesterday and charged in federal court in Springfield in connection with marijuana grow operations.
Weiqing Li, 41, and Li Qin Li, 49, were charged by criminal complaint with manufacturing marijuana and possessing marijuana with intent to distribute. They are expected to make an initial appearance today via videoconference in federal court in Springfield.
According to the charging documents, since July 2019, law enforcement agents have been investigating the use of certain properties in and around Monson, Mass. and Palmer, Mass. for the large-scale cultivation of marijuana. Yesterday, during the execution of search warrants, federal agents discovered commercial-style marijuana grow operations at five properties. Over 700 marijuana plants were found at one residential property in Monson and over 800 marijuana plants were found at another residential property in Monson. It is further alleged that over 1,100 marijuana plants were found at warehouse in Monson, where Weiqing Li and Li Qin Li were located. In addition, over 900 marijuana plants were found in a residential property in Palmer and over 600 marijuana plants were found in another residential property in Palmer.
In a related action, the U.S. Attorney’s Office filed a civil forfeiture complaint against the two houses and warehouse located in Monson and the two houses in Palmer alleging that the properties are subject to forfeiture because they are being used, or are intended to be used, to facilitate the illegal cultivation of marijuana.
The charging statute provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office made the announcement today. Valuable assistance was provided by the Monson and Palmer Police Departments. Assistant U.S. Attorney Catherine G. Curley of Lelling’s Springfield Branch Office is prosecuting the criminal case. Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit is prosecuting the civil forfeiture action.
The details contained in the charging documents and the civil forfeiture complaint are allegations. The defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Houston-area tax preparers indictedRead the Press Release
HOUSTON – Two women have been charged in a 32-count indictment related to the false filing of tax returns, announced U.S. Attorney Ryan K. Patrick.
Rita Rogers made her initial appearances before U.S. Magistrate Judge Christina A. Bryan this afternoon, while Joi Lin Hunt was in federal court earlier this week.
A Houston grand jury returned the indictment July 16 alleging one count of conspiracy to defraud the United States and 31 counts of aiding and assisting in the preparation and filing of false income tax returns.
According to the indictment, Hunt and Rogers owned Caliente Xpress Tax Service, an income tax preparation company in Southwest Houston. There, they allegedly prepared returns for customers in tax years 2013-2016 which included false schedules on 1040 forms. These claimed company losses for customers who did not own any businesses and had no such expenses, according to the allegations.
The indictment further alleges Hunt and Rogers did not inform customers the Schedule Cs were being prepared on their behalf. Caliente Xpress allegedly charged fees ranging from $300 to $600 to prepare a tax return.
During the 2013-2016 tax years, Hunt and Rogers prepared in excess of 2,600 tax returns, according to the indictment.
If convicted, both face up to five years imprisonment and a possible $250,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.